Human Capital magazine issue 8.7 by Key Media

SOCIAL MEDIA: HR’S CONUNDRUM P.10 » BUILDING PERFORMANCE FRAMEWORKS P.40 » CREATING A ‘SAFETY FIRST’ CULTURE P.44 »

HUMAN CAPITAL MAGAZINE | www.hcamag.com

The world is yours IN EVERY ISSUE:

Profile case studies

Best practice examples

ISSUE 8.07

Your guide to: International attraction & recruitment Mobility & relocation Migration

The forum

Expert opinion columns

Topical news briefs

EDITORIAL

The grass is (sometimes) greener

R giant McKinsey puts the direct cost of (long-term) international assignment failure at US$1m – including time and money wasted in selection, visits to the location before the executive takes up an assignment, training and relocation. McKinsey claims that up to 25% of all international assignments end prematurely. Furthermore, according to Brookfield Global Relocation, language and cultural difficulties are cited as the major barriers to taking on international hires, followed by the challenges of immigration. All these factors point towards the ‘why’ factor. Why would local employers bother to recruit someone based on the other side of the world? Why would they go to that extra expense when there are – presumably – plenty of competent local candidates? I speak from personal experience. Several years ago when I was keen to move to the UK, I got as far as submitting a CV to a Bristol-based publishing company. To my astonishment, I was quickly contacted by the publisher and informed they were keen for a teleconference. As this was really the era before teleconference calls, there were lots of delay-tactic e-mails (on my behalf) as I figured out the logistics of not just a teleconference but all the steps that may have possibly followed. I also detected increasing uncertainty on their behalf. Eventually the publisher gave up. I dare say they asked themselves ‘why?’ Apart from proving my general inability to make big decisions, it confirmed to me that while there are naturally barriers to international hiring, those barriers are by no means insurmountable. Now, more than ever, local employers are willing to tackle international candidates simply because they have no choice. Certain industries – mining & engineering and health services top of the list – face massive local skills shortages. The combination of limited labour market spare capacity (following the GFC), an ageing workforce and population, political indecision on skilled migration and both local and global inflationary pressures all combine to create a compounding storm in the Australian labour market. Of course, as that McKinsey research proves, a successful hire means more than getting someone in the door. Hopefully this issue of Human Capital will provide some tips for making the experience win-win for both employee and employer.

EDITOR Iain Hopkins

SALES & MARKETING NATIONAL COMMERCIAL MANAGER Sophie Knight

COPY & FEATURES

SALES MANAGER Sarah Wiseman

JOURNALIST Daniela Aroche

MARKETING EXECUTIVE Kerry Buckley

PRODUCTION EDITOR Carolin Wun

MARKETING COORDINATOR Anna Keane

PRODUCTION EDITOR Moira Daniels

TRAFFIC MANAGER Stacey Rudd

ART & PRODUCTION

CORPORATE

DESIGN MANAGER Jacqui Alexander

MANAGING DIRECTOR Mike Shipley

DESIGNER Paul Mansfield

CHIEF OPERATING OFFICER George Walmsley

CONTRIBUTORS

CHIEF INFORMATION OFFICER Colin Chan

Carroll & O’Dea Lawyers, Chifley Business School, The Next Step, Chandler Macleod Group, Frontier Software

HUMAN RESOURCES MANAGER Julia Bookallil

SALES DIRECTOR Justin Kennedy

Iain Hopkins, editor

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 Sarah Wiseman tel: +61 2 8437 4745 Sales Manager, HR Products sarah.wiseman@keymedia.com.au Subscriptions tel: +61 2 8437 4731 • fax: +61 2 8437 4753 subscriptions@keymedia.com.au Key Media www.keymedia.com.au Key Media Pty Ltd, Regional head office, Level 10, 1 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 Offices in Singapore, Hong Kong, Toronto www.hcamag.com Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept as HC can accept no responsibility for loss.

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INTERNATIONAL

ISSUE: CONTENTS

Contents

Inside this issue 30 Return to sender? China

Human Capital provides some relocation tips to ensure new arrivals don’t turn around and go straight back home

36 Working hand in hand

India

Integrating migrants and supporting the families who migrate with them is a crucial piece of the diversity puzzle, yet many organisations get it wrong. Stuart King provides some tips

40 Performance frameworks Far from being a process to dread, the performance appraisal can be a valuable motivation tool, especially when it’s linked to salary reviews. Scott Pickering reports Australia

40 New Zealand

18 Cover story: World without borders As international hiring picks up, Iain Hopkins looks at why global skills are converging and what HR can do to attract and recruit the best international candidates

Letters to the editor

Regulars

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

4 In Step 6 Legal 8 HR technology 9 Corporate culture 10 The forum

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INTERNATIONAL HR EXPERIENCE – IS IT WORTH IT? HR Career Experts

ver the years, there have always been question marks on the value or otherwise of international experience for HR practitioners and their careers in Australia. In this month’s Instep, we try and shed just a little bit more light on this important subject.

Firstly, how many people have international experience in HR in Australia? How many professionals have international experience and where this experience was gained were just two of the questions asked in a national survey conducted by The Next Step of almost 2,000 HR professionals. Responses were taken from all levels of the profession, all areas of expertise (from generalist to specialist) and all industries that HR professionals work within, across Australia. The survey response indicated that just over one in three HR professionals in Australia have experience overseas (35.29%)

Next, where was this overseas HR experience gained? Of the one in three HR professionals who indicated that they have worked overseas, a substantial percentage indicated that they had worked in Asia. This certainly ties in with anecdotal evidence and common sense that Asia is now ‘our region’ for HR. The total results were as follows: 38.2%

United Kingdom

22.2%

Europe

14.1%

A final word

North America

7.9%

New Zealand

6.3%

Middle East

3.9%

Africa

2.9%

India

2.7%

South America

1.5%

Logic suggests that offshore experience is a great addition to any HR career. This is supported by the fact that more HRDs have overseas experience than their peers in the profession. Not surprisingly, Asia is now the dominant location for this experience, but with only one in three HR professionals having offshore exposure, there is a way to go before Australia can claim to have a globally exposed profession. The real question is why are local businesses and HR leaders reluctant to accept that offshore HR returnees’ experience is as attractive as that of their peers with only local experience?

It’s reasonable to expect that the more senior and experienced an individual HR professional is, the more likely they will have had the opportunity to take up an overseas posting. The following graph seems to confirm this is the case. The proportion of HR Directors that have had overseas experience is 46% compared with lower proportions for other levels of the HR profession. www.hcamag.com 4 www.hcamag.com

‘Is obtaining international HR experience good for my career?’ The answer to this question will always be completely subjective. There is no doubt that HR practitioners who have offshore exposure swear by the experience. They point to a whole range of benefits, from building personal confidence and general HR capability to developing cross cultural and global awareness and the ability to deal with higher levels of ambiguity. But is it worth it to advance a career as the single reason to go overseas? Good question. Probably not is the answer. While it adds to an individual’s experience and capability, there are unfortunately many in the local market that do not put the same weighting on offshore experience as they do similar experience in the local market. Why this is the case is a very good question and one that many who have returned from overseas and tried to re-enter the local job market have had to ponder over the years.

Asia

Which HR professionals in Australia have had overseas experience?

But is overseas HR experience worth it?

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

Sarah Morley has accepted the role of HR Business Partner with CSL Limited. Sarah has enjoyed a strong HR career with IBM Australia in various roles in Melbourne and Sydney.

Tracie McNab has joined McPherson Media as Group HR

years. Lisbeth was the Winner - HR Practitioner of the Year at the 2009 AHRI National HR Awards

Cassie Fleming, Talent Acquisition Director at Luxottica has been

Manager. Tracie is an experienced HR practitioner having worked with global brands such as Fonterra and Unilever.

promoted to the role as Head of HR for the OPSM brands. Cassie is taking over this role from Victoria McKenzie-Andrews who is joining Canon as their Head of HR.

Peter Davey has commenced as HR Manager with Crown

Rodney Hanratty has joined ANZ Banking Group as the Group

Entertainment. Peter has a wealth of experience gained in the retail and FMCG industries.

Alastair Ingham has joined Melbourne University as Head of Business Services. Alastair was most recently with Hudson in the role of Director, Accounting & Finance and Financial Services.

Kelly Patten has accepted the role of HR Manager – VIC/TAS with The Just Group. Kelly was previously with Coles for a number of years, most recently in the role of Emerging Talent Manager.

Rod Bruce has joined QBE as Head of HR. Rod’s previous roles included Director level roles at Ernst and Young and KPMG. Prior to working in professional services, he had extensive experience in HR at CBA in a range of line and project HR roles.

Lisbeth Rees is joining Chubb Insurance Group, Australia as Vice President, HR Australia after working with ING Australia for over 10

Head of Learning & Development. Rodney has a long and successful HR career in Australia and North America with Optus, HSBC and Macquarie Bank.

Gaebrielle Nicol has accepted the role of Vice President • Head of Human Resources - Australia for Bank of New York Mellon. Prior to this role, Gaebrielle worked for Sparke Helmore Lawyers in a senior HR role and with AMP as the HR lead for their banking business.

Mark Lush has joined Unilever as Leadership Development Manager. Prior to this, Mark worked in financial services as well as his own consulting practice and a period at Qantas with all roles maintaining a Leadership Development focus. VM Ware has a new HRD APAC. Sung Hae Kim is to be based in Singapore. Background experience includes work in Hong Kong and SIN. Prior to joining was with Alcatel Lucent.

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

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Legal Experts

GOLDEN HANDSHAKE: WHAT’S THE GOING RATE FOR A NON-EXECUTIVE EMPLOYEE?

he rhetorical question, ‘how long is a piece of string’, might well be the answer to the question posed above as every case involving a golden handshake depends very much on its own particular set of facts and circumstances, including what the employee will accept and what the employer is prepared to pay. There is no standard that can be applied in determining the amount of a golden handshake as is the case with the scale of severance payments in a redundancy scheme. However, the Australian Taxation Office recognises a golden handshake, which is defined by it as “an employer termination payment which is a voluntary payment made to an employee on retirement or termination of employment”. Such termination payments are taxed at a concessional rate but not as generously as severance payments under a redundancy scheme. Golden handshakes are used in most cases to encourage employees to leave their employment rather than the employer having to dismiss them and then being faced with defending an unfair dismissal claim, which can be time consuming and expensive. How then does an employer decide what is an appropriate amount to offer as a golden handshake? If it is for the reasons stated in the preceding paragraph then the starting point would be the maximum amount of monetary compensation that could be awarded in an unfair dismissal claim (namely six months’ remuneration). The next step is to assess what is the maximum likely to be awarded in such a case having regard to the specific facts and circumstances including length of service, seniority, conduct, performance and age of the employee. It is important that the amount offered is reasonable and can be justified on a proper assessment of the facts and circumstances of the case. Remember, if the golden handshake is for the purpose of extinguishing unfair dismissal rights, what is offered must be acceptable to the employee. For an employee with, say, 15 years’ service and some seniority (eg supervisor) it would be a reasonable expectation of the employee to receive an offer of six months’ pay as a golden handshake. However, it is generally accepted that the maximum

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amount of monetary compensation is only awarded in exceptional circumstances. Therefore an employer should carefully consider the likelihood of a Tribunal awarding the employee the maximum before making such an offer. Although there is no hard and fast formula in these matters it would be reasonable to apply a pro-rata arrangement on the basis of, say, six months’ pay for 15 years, three months’ pay for seven years, six weeks for three years etc. However, it needs to be pointed out that any golden handshake offered by the employer is totally discretionary. Another consideration in determining an appropriate amount for a golden handshake is to use the severance payments formula in applicable redundancy schemes as a guide. These payments are based on a specified number of weeks’ pay for the completed years of service of the employee and provide a degree of consistency in their application as opposed to the discretionary method mentioned in the preceding paragraph. Many awards and agreements have redundancy schemes applicable to an industry or a particular employer and the severance pay in such vary quite considerably. Since 1982 in New South Wales, there has been a scale of severance payments provided to awardbased employees whose jobs have been made redundant. This scale currently provides a maximum of 16 weeks’ pay for employees with six years or more continuous service. For employees over 45 years of age the maximum is 20 weeks’ pay. The redundancy provisions in the National Employment Standards under the Fair Work Act 2009 (Cth) also provide a scale of severance payments, with the maximum being 16 weeks after nine years’ service (but with no aged-based uplift) and progressively decreasing after 10 years’ service. As can be seen from this commentary there are no hard and fast rules in determining an appropriate amount to be paid as a golden handshake. It is very much a matter of discretion. However, the matters listed above are a useful guide in exercising that discretion. www.codea.com.au

Mick Sheils Special Counsel Industrial Relations Carroll & O’Dea Lawyers 72 Church St Wollongong 2500 Phone 02 4227 1427

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THE INS AND OUTS OF OUTSOURCING HR Technology

QUESTION: “We currently perform our payroll functions internally. However, due to a company directive, we now need to investigate alternatives such as outsourcing. What should we consider in selecting the right outsourcing vendor?”

ANSWER: Cost is the primary reason why

most small to medium-sized businesses consider outsourcing back office functions such as payroll and IT infrastructure and support. In the current economic climate, outsourcing key functions such as payroll makes excellent financial sense. Payroll is an ideal function to outsource, as it is a time-consuming and process-driven task required by all organisations that employ staff. Outsourcing payroll can be a growth enabler for small companies as resources are freed up to perform the core functions that are driving business growth. For many organisations selecting an outsourcing provider, the decision comes down to either the hourly rate or cost per pay. Several other less tangible benefits which will impact on the success of your outsourcing project should also be explored. Firstly, consider what elements of payroll you wish to outsource and if you require full or partial outsourcing. Do you require a fully managed service where the provider handles all data import as well as payroll processing and management of enquiries? Is your preference for a provider that performs the processing and your organisation manages the rest? An outsourcing partner that is flexible with their service options and allows you to move between offerings will ensure smooth operation and allow you to exploit the benefits offered by the solution as your resources and needs change. Another important aspect to consider is the availability of your data. Do you require access to your data 24/7, including immediate access once payroll is run? Consider what level of employee data you require and how frequently access is required to ensure the provider is able to meet your needs. A good outsource partner will provide the team of people that will offer flexibility in a changing economic environment. They will have more than one person who you can communicate with, supported by a team with similar skill sets. This is one of the major benefits of outsourcing – you will no longer have to worry about when payroll staff take annual leave or are sick. A primary contact is another essential element to consider, as they will ensure communication channels remain open. Look for an outsource partner that will provide one key contact who will

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be responsible for day-to-day communications and problem resolution – this will ease the burden on you should problems arise. The key to successful outsourcing is communication. Making sure your outsource provider understands your business requirements and priorities will ensure both parties remain aligned and on track. Reporting is a key function of any payroll system, either in-house, hosted or outsourced. Consider the types of information you need to report on regularly and prepare a wish list of additional information. It is important to ensure management have the information they need to make informed decisions. To make certain all of your reporting needs can be met, it is a good idea to outline how you would like the reports delivered, any specific layout or formatting needs (for example, PDF or spreadsheet format), and their frequency. The need for historical information must also be considered when reviewing outsourcing options. If you decide to migrate your historical data, you will need to ascertain the complexity of the mapping task to convert your old codes into the new system, as well as the volume of data to be migrated into the new system. System maintenance and administration should be conducted regularly. It’s important to understand the frequency of these core functions and how rapidly system access can be granted to new users. Auditing is another consideration – it’s a good idea to identify the audit requirements with your outsourcing provider in the early stages to ensure compliance. Transition to a new system can be troublesome – working with a provider that has a proven implementation methodology will ease the changeover process and ensure it is as smooth as possible. Depending on the size of your payroll, project management may be required. If your provider is able to provide a dedicated project manager, it will certainly assist to minimise problems and ensure on-time project delivery. Lastly, understanding your requirements in terms of functionality, service offering and on-going support is key to identifying your ideal payroll outsourcing provider. By taking the time to outline your requirements up front, you can fast-track the selection process.

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

Workforce Advisory & Management Evolving your Workforce

SUPERIOR TALENT = TOMORROW’S COMPETITIVE ADVANTAGE Any company seeking to exploit talent superiority must instill a talent mindset throughout the organisation, starting at the top

t is no surprise that one of the hottest topics in business today is ‘talent management’, in attraction, retention and sourcing strategies. Our recent research suggests – and is duly supported by a multitude of studies conducted over the last 10 or more years – that it is increasingly common in organisations today to experience a shortage of capability at a range of levels. This is driven by a number of factors including rapid growth and change, a rise in retrenchments due to changing role requirements, key people being ‘poached’ by the competition and a difficulty in retaining talented people. The rise of the economy out of the global financial crisis (GFC) is a further factor that continues to accelerate these challenges. With these external realities in the employment market, organisations need to carefully examine its choices on how best to respond. Our experience dictates that the most desirable option is for organisations to tap into the quality people already in the organisation and develop this talent so they can confidently compete in an increasingly difficult business environment. Establishing the right mindset, crafting a powerful employee value proposition (EVP), sourcing, developing and retaining talent all makes for an enormous challenge. Companies that managed their physical and financial assets with rigor during the GFC have generally not made their people a priority in the same way. Fundamentally, there are three main arguments in support of effective talent management (the better an organisation is at talent management, the better its return for shareholders); 1. Recurring costs are reduced; 2. Economic outputs improve; and 3. Enterprise value is maximised.

Acquiring new talent Instilling a new talent mindset and developing a powerful EVP will operate as a compelling advertisement for your company, but on their own, they are simply not enough of an attraction. A robust sourcing strategy is crucial. Attracting, sourcing and selecting the right talent addresses part of the

talent imperative. Clearly this application has greatest impact where two conditions are met: 1. Talent required does not exist internally; and 2. Talent required could be acquired at a reasonable premium. The difficulty in finding IT professionals at the peak of the technology boom well illustrates this. Provided these conditions can be met, focusing on talent attraction, sourcing and selection can derive the best outcomes.

Leveraging existing talent Leveraging talent is a priority throughout the company; developing a sound EVP, and ensuring your sourcing strategy is a powerful one, will do much of what is needed to make your position in the talent market compelling. There are also a number of specific steps to do with development that companies should implement to complete their talent program. We find when we start working with organisations, there is often little clarity about who should be developed, let alone how; senior people more often than not believe that moving people around is not worth the disruption; divisions hoard their best staff; and HR executives are often preoccupied with training and other auditable initiatives. The reality is that people learn by being put in situations that require skills they don’t have – a truth poorly served when ‘who can do this job best right now?’ often dominates staffing decisions. Rebuilding talent banks via natural attrition and replacement is not only likely to cost a lot of money, but it is also going to take a long time – between five and 20 years. The reality for most organisations is that they need to leverage the talent they already have.

Retaining talent We find that companies generally recognise they could improve recruitment and development; few realise, however, that they have a retention problem. Paradoxically, it is the companies that have done the best job of recruitment and development that may be most at risk from poaching. But every company needs to understand why its high performers are leaving before they can engage in retention strategies. Keeping hold of your talent is not always easy where there are many employment opportunities for high performers. Organisations’ efforts to effectively retain talent need to be explored across a number of characteristics.

Craig McCallum

www.chandlermacleod.com www.hcamag.com

THE FORUM social media

The social Tip 1 â&#x20AC;&#x201C; The issue is one of management and education By Michael Specht, principal consultant, Inspecht

Nothing is more contentious than the use of social media at work. Human Capital talks to four experts about where HR should stand in terms of monitoring social media usage 10

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Today when it comes to social media, we (employers and employees) face similar issues as when e-mail and internet access became common in the workplace, but this time the tools are slightly different. The issues with social media in the workplace, or for that matter any internet access, is more about management and education than one of technology. In the same way as employees wasting time in the lunchroom is not really an issue with the lunchroom. Typical issues that could arise through employees accessing social media in the workplace include: sharing of confidential information, productivity losses, discrimination, harassment, privacy breaches, and damages to reputation and brand. Unfortunately, if history is anything to go by, the monitoring of social media usage will not limit the potential occurrence of these issues. Education is the only answer. Organisations need to enhance their internet acceptable-use policies to encompass these new tools and challenges. Best practice is to include the education of employees as part of induction and refresher sessions on a regular basis, as many organisations have done with sexual harassment and ethics training. Having said that, there are certainly roles within the workplace where access to social media, or in that fact broad internet access, is not suitable. The last thing you want is to be waiting for a bank teller to finish buying an item off eBay or updating their Facebook profile, let alone the problems that could arise if hospital staff, or teachers, were more focused on what is happening online instead of the people they have a duty of care over! My tip is this: Employees need to learn to exercise judgment when using these tools, not just in the workplace but always. At the same time, employers need to take an active role in educating all employees, not just the younger ones, about the potential issues.

THE FORUM social media

Tip 2 – Recognise that trust is a two-way street – but also be wary of data security

Tip 3 – Channel social media into directions that benefit both the business and individual

By Peter Croft, managing director at web and e-mail security company, Clearswift

By Lincoln Crawley, managing director, Manpower Australia and New Zealand

Advances in technology have led to a ‘Generation Standby’ whereby people inhabit a grey area between work and home and are never completely switched off. Clearswift research has shown Australians are working harder and longer, leading them to blur the boundaries between home and work tasks. Indeed, the research shows employees expect to ‘home’ from work and one-fifth of employees would turn down a job that did not allow them to access social networking sites or personal e-mail during work time. This has led to the reality that employees are now enjoying, and expecting, greater levels of flexibility and mobility than ever before. Australians view flexibility and trust as the most valued benefits at work and expect to be trusted to manage their own time during work hours. Clearswift’s research found that 70% of Australian workers rate ‘being trusted to manage their own time’ higher than other benefits, such as flexible working arrangements, dress down codes or training and development options. For employers, acceptance of this is fast becoming the norm. Businesses recognise that they can capitalise on the benefits of online collaboration tools to gain cost efficiencies, increase customer service and maintain strong communications with partners, suppliers and customers. This cultural shift, however, has taken the debate beyond the question of time wasting, and into the realm of data security. Clearswift’s research found that 29% of respondents have sent content via e-mail or online applications which they later regretted. This shows that while Web 2.0 is now widely accepted for the productivity benefits it can bring, many organisations have yet to come to grips with the potential for data loss and security vulnerability through social media. We recommend that companies maintain an active up-to-date information management policy that is well-communicated to all employees on a regular basis, not just at induction. With appropriate security measures in place, HR managers and departments can be confident in allowing employees access to Web 2.0 technologies for productivity and commercial gain.

There is not a lot you can do to curtail the use of Facebook or Twitter at work. Employees will simply pull out their iPhones or BlackBerries to get onto these networks. So the challenge – and the opportunity – is to turn them into a positive force. The connective power of social media can enhance productivity, innovation, collaboration, reputation and employee engagement within organisations. Leaders need to channel social media use in directions that benefit both the business and the individual. In fact, employers can use social media in creative ways to do that. For example, they could challenge employees to develop ways to do their job better through social media, and encourage them to share these innovations with their colleagues. Developing guidelines around social media usage in the workplace should also be a collaborative process. Allowing employees to help develop and enforce a company’s guidelines will appeal to those already immersed in the collaborative social media space, and could ultimately be the deciding factor in whether those guidelines are instituted. It’s important for employers and HR departments to keep an open mind about how social media tools can be used in the workplace. Ultimately, organisations have an opportunity to use social media in a way that helps employees feel truly connected to the organisation and positive about their employer.

The connective power of social media can enhance productivity, innovation, collaboration, reputation and employee engagement within organisations. Leaders need to channel social media use in directions that benefit both the business and the individual www.hcamag.com

THE FORUM social media

Saving ‘face’

According to a 2009 US survey released by Robert Half, nearly half of all employers revealed they were uncomfortable being ‘friended’ by the staff they manage (48%) or their bosses (47%) on the social networking site, Facebook. Here are some tricky Facebook situations commonly encountered and tips on how to handle them: • You are tagged in an embarrassing photo. Un-tag yourself and change your privacy settings so photos are viewable only by your close friends. • You are ‘friended’ by someone you do not want to connect with. It might be best to accept friend requests from colleagues to avoid slighting them, but add them to a work list and adjust your privacy settings so you can effectively separate your job from your personal life. • You are considering ‘friending’ your boss. It may seem like a natural extension of amiable office small talk, but think twice before proactively ‘friending’ your boss. It could become awkward for both of you. • You love quizzes. Stop and think for a moment before taking online quizzes and posting the results to your Facebook page, unless you want professional contacts to find out which Sex and the City character you most resemble or personal traits you would rather them not know. • You want to join various groups. You should join groups that interest you. But if you have colleagues in your network and do not want them to see the groups you join, remember to adjust your application settings. • You would like to be a fan of certain pages. Becoming a fan of pages on Facebook is visible to anyone who can view your profile, so you should avoid becoming a fan of any page you are uncomfortable sharing with colleagues or business contacts in your online network.

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Tip 4 – Provide expected conduct guidelines for both offline and online situations By Iggy Pintado, CEO & chief networking officer, ConnectGen

The sooner business organisations understand that social networks like Facebook and Twitter are online places where people go and gather, the better. People visit these online places to socialise due to a compelling need to ‘stay tuned’ in an increasingly connected world. It’s almost impossible to manage physical access to these sites. Even if a company blocks them on their own internal network, they’re still accessible via personal laptops, mobile, and now, iPad devices. Companies are responsible for articulating expected employee behaviour relative to the business. In my corporate experience, I’ve had to sign compliance documents stipulating my expected behaviour when it comes to discussing and commenting on company matters in public places, specifying places where people gather like pubs and barbecues. It’s also been made crystal clear to me what duties were expected to be performed while ‘at work’. HR departments are responsible for providing guidelines to employees on how they should conduct themselves during what is classified as work hours and when representing the company in public situations. The setting of employee expectations when on company time should be no different on social networks. A company should provide expected conduct guidelines for both offline and online situations. These behavioural guidelines can be incorporated as an addendum to existing employee standards documents or as a separate social media policy document (there are sample documents available on the web) that clearly outlines company requirements and appropriate usage expectations. Once these are clearly understood, the need to ‘monitor social media usage’ becomes as necessary as monitoring employee conversations at pubs and social gatherings or looking over their shoulders to see if they’re doing productive work. The setting of what is expected of an employee upfront in terms of ‘at work duties’ combined with a watching brief should minimise the need of creating a ‘Big-BrotherIs-Watching’ work environment. HC

IN BRIEF workplace law

By far the biggest talking point in the last month has been the first decision of Fair Work Australia’s minimum wage panel (Annual Wage Review 200910), handed down on 3 June 2010. The Tribunal decided to increase minimum weekly rates by $26, to take effect from 1 July 2010. Earlier, the Tribunal had also announced in a statement that it intended to publish automatic increases in expense-related allowances, based on applicable CPI Index increases between June 2008 and March 2010. The Tribunal will publish draft determinations to allow comment and submissions, but otherwise those increases will also take effect on 1 July.

“substantially higher bar” than the old test of “special circumstances” under previous legislation. Commissioner Smith (Fitzgerald v Smith t/as Escape Hair Design) indicated that “exceptional circumstances” must be “out of the ordinary course, or unusual, or special or uncommon but need not be unique, or unprecedented, or very rare”, but will not be exceptional if they are “regularly, or routinely, or normally encountered”. In that case, for example, the employee was late as she was distressed after the murder of a close friend, and time was extended. Other cases extended time where the employee was unaware of the dismissal; where a community legal centre gave wrong advice about the section to apply under; where the employee had a disability, was inexperienced and had been given incomplete advice about his rights; where the employee was depressed and showing signs of Post Traumatic Stress Disorder; and where the employee had been hospitalised with appendicitis, then developed gestational diabetes, then on birth had difficulty breastfeeding and whose baby then developed eczema.

Modern Enterprise Awards

Agreements

The first application for a Modern Enterprise Award has failed, with Fair Work Australia rejecting an application to replace an enterprise instrument covering various franchise arrangements with the Bank of Queensland with a Modern Enterprise Award. The Full Bench of the Tribunal saw no reason why the Modern Banking and Finance Industry Award should not apply, expressing concerns that the making of an Enterprise Award with significantly inferior conditions would tend to weaken the safety net established by the Modern Award. The Tribunal also pointed to the fact that the Enterprise Award would give a significant competitive advantage over other banks.

Agreement making continues to be the subject of Fair Work Australia decisions. Despite a number of earlier decisions, employees are still failing to meet mandatory requirements of the Act (see, for example, Falls Creek Resort Management). Commissioner McKenna rejected an application where two distinct and unrelated classes of employees had been chosen, and part-time office clerks had purported to vote up an agreement that also covered health workers (Melbourne Nursing Agency Pty Ltd). Failure to bargain in good faith continues to be raised — in one case an employer succeeded in obtaining orders against a union which had sought a scope order an hour after an agreement had gone to employers (Capral v AMWU).

Each month Greg Robertson, general counsel, Harmers Workplace Lawyers, brings you a summary of the significant IR/workplace law tribunal and court case precedents & findings

Case update: May to June 2010 Wage rates and expense-based allowances

Significant competitive advantage fails to give standing By way of contrast, the mere fact that an enterprise agreement will give an employer a competitive advantage over other industry employers has been held by a Full Bench of Fair Work Australia not to give those other employers sufficient legal standing to challenge registration (Traffic Technologies v Evolution Traffic Control).

Extension of time A surprising number of decisions in Fair Work Australia during the month dealt with issues of extension of time to lodge unfair dismissal or general protections applications. A number of the decisions pointed to the need to show “exceptional circumstances” — Deputy President Sams in Gallagher v Kidz Biz stated it was a

In the Courts An unusual mixture of industrial and employment issues outside Fair Work Australia arose in the last month. The Federal Magistrates Court fined an employer who refused to recognise a union’s appointment as bargaining agent (LHMU v Achieve Cleaning Services). The NSW Administrative Decisions Tribunal awarded $25,000 in damages against an employee who sent an anonymous letter to the husband of a fellow employee (alleging his wife was having an affair) as retaliation for the fellow employee having made a sexual harassment complaint against him. The conduct was held to amount to victimisation (McCoy v Chandler). The Victorian Supreme Court upheld restraints in the employment contracts of two directors of an accounting firm, preventing them taking up employment with a competitor (BDO Group Investments v Ngo).

For further information contact Greg Robertson on 02 9267 4322 or e-mail: greg.robertson@ harmers.com.au www.hcamag.com

IN BRIEF australian news

Salaries hold steady with increases on the horizon Almost half (47%) of employers expect to increase salaries by between 3% and 6% in their next review, according to the annual Hays Salary Guide released in May. It reveals that professionals in the mining & resources industry are in for the greatest windfall, with 54% of employers in this industry expecting to increase salaries by between 3% and 6%, and 18% of employers expecting to increase salaries above 6%. This is closely followed by professional services, where 54% of employers expect to increase salaries by between 3% and 6%, and 10% expect to increase above 6%.

Call for a simpler and more flexible paid parental leave scheme

“The government’s paid parental scheme would place Australia in the middle of the pack according to international practice” - Professor Marian Baird

Leading employers largely welcomed the introduction of the federal government’s Paid Parental Leave (PPL) scheme but called for it to be as simple and as easy as possible to administer. A major debate held in June by Diversity Council Australia and hosted by Gilbert + Tobin, with Senator Jacinta Collins, Special Advisor for Work and Family Balance and Pay Equity, Dr Sharman Stone MP, Shadow Minister for the Status of Women, Early Childhood Education and Childcare, Ann Sherry of Carnival Australia, Professor Marian Baird of the University of Sydney and James Pomeroy, senior lawyer of Gilbert + Tobin, thrashed out these issues. Ann Sherry, CEO of Carnival Australia, said that employers recognise the productivity benefits to be gained from a PPL scheme but were wary of increased compliance costs. Employers also called for greater flexibility to enable employees to vary the amounts of leave to take account of their family circumstances. Senator Jacinta Collins said the government’s scheme, which would offer 18 weeks’ paid leave at the minimum wage commencing in January 2011, would be fully funded by the taxpayer. Dr Sharman Stone promised the opposition would offer a much more generous scheme of 26 weeks at replacement wage and would include superannuation. It would be funded largely by a levy on business. Professor Marian Baird said the government’s scheme would place Australia in the middle of the pack according to international practice, whilst the opposition’s scheme would have Australia amongst the leaders in the world.

Survey reveals jobseeker trends Right Management’s Career Transition Candidate Survey suggests that jobseekers need to be flexible when searching for new opportunities, with nearly half (45%) of jobseekers prepared to change

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industries to land a new role, the same proportion to change job function, and another 10% to change location. It also suggests the industries facing severe skills shortages may benefit if they can tap into these flexible workers. “There are many industries facing critical skills shortages and companies will consider candidates with skill sets that could be transferred to a different field,” said Tim Roche, career management practice leader at Right Management. The survey also revealed that the number of people accepting a pay cut when starting a new role has continued to grow from last year, with 44% of candidates brought in on lower compensation compared to their previous role. Networking remains the most successful means of finding a new job, with 34% of jobseekers finding a job through this search tactic. The proportion of jobs found through print advertisements dropped in the last year (19% compared to 24% in 2008–09), while the percentage of jobs secured via direct approach to the company rose (12% compared to 9%).

‘Talent Intelligence’ sorely lacking in Australian businesses Taleo Corporation and Quantum Market Research recently announced the results of Australian research that signal a significant gap between the ‘Talent Intelligence’ required by organisations to steer their growth initiatives and the limited insight that they can currently access. The research found that nearly all companies desire greater intelligence about their staff, but very few have access to the perspective they need today. Additionally, of the 100 senior managers surveyed, 80% want data on succession bench strength but only 29% have access to reliable data on it. Nearly all (98%) said data on risk of loss of critical employeeshas importance but only 37% of respondents have access to data that is reliable. 88% wanted data on top performers by division but only 26% knew whether those top performers were on a career path. As CEOs look for new ways to re-invent and grow their businesses, it will be crucial to identify, attract and keep top talent. Yet, while most businesses know their employees’ titles, salaries and benefits packages, few have visibility into the past achievements, skills, aspirations, performance and potential of their staff. Michael Gregoire, chairman and CEO of Taleo, said this ‘Talent Intelligence’ visibility is crucial to effectively plan and manage growth. “Talent Intelligence empowers organisations to better understand what their people have accomplished, are accomplishing and could accomplish. This insight is key to engaging people and building for growth.”

IN BRIEF international news

UK: Communication gone wrong

India: Google claims the top prize

UK businesses are urged to address social media HR policies. This is because a survey by MyJobGroup.co.uk has found that almost 40% of UK employees criticise their employers on social networking and micro-blogging sites like Facebook and Twitter. Nearly 60% confessed they would change what they wrote on their social networking profile if they knew their employer was reading it, yet recent Facebook privacy settings changes mean many employers could already be checking up on staff. Although they do the deed, 53% of workers believed fellow staff should face disciplinary action for criticising their workplace online. Most staff had little or no awareness of the legal implications of their online jibes and 70% had no idea if their company had an HR or disciplinary policy in place to tackle online criticism. Fergal Dowling, an employment law specialist at Irwin Mitchell Solicitors, said: “Employers and HR departments need to be upfront and honest with their employees about their policies. Many firms may ban social media altogether but in some industries that is simply not viable, and some creative industries rely on social media.”

Technology giant Google has the best employment reputation in India, according to that country’s graduating students. A survey by Universum of more than 8,000 students of business, engineering, IT and natural sciences placed Google at the top of studentsmost-wanted employers. ICIC Bank ranked second, while mobile technology creator Nokia came in third. Johan Ramel, CEO, Universum Asia Pacific, said India’s love of Google comes as no surprise. “The strong attraction to Google is a global trend and Indian students are clear in their wish to be challenged in a friendly, creative and dynamic working environment, which they associate with this employer.” Ramel also noted that technology employers were popular with a wide range of students from all disciplines. “With numerous global employers fighting for the attention of graduates, these companies have managed to appeal to engineering, IT and natural sciences students, who aspire to become ‘technical or functional experts’,” he said.

US: Tipping the scales

China: iPhone troubles lead to payrise The dire situation that led to the recent spate of suicides in Apple’s iPhone Chinese manufacturing plant, Foxconn, has seen a turn for the better. The iPhone maker, also the world’s largest contract manufacturer of electronics, may raise wages in the mainland by 20%. Without giving a specific reason for the increase, the company plans to implement the plan soon, according to Edmund Ding, a spokesman at Hon Hai. At least 10 people have died this year at the manufacturing complex in Shenzhen. Amid allegations of mismanagement of employees, chairman Terry Gou has since recruited counsellors, installed nets in dormitories to prevent further falls and opened his factories up to the media. Wang Rong, Communist Party secretary of Shenzhen municipal committee, said the central government, State Council and the Guangdong provincial government were taking the suicides very seriously and wanted the relevant authorities to “accelerate efforts and take appropriate measures and to support Foxconn to deal with the situation and prevent similar incidents from happening again.” Meanwhile, Gou has rejected allegations from labour-rights groups that Hon Hai is a “sweatshop”.

44% of US workers say they have gained weight in their current jobs

The combination of work stress and economic pressures appears to be playing a role in the US labour force’s weight problems. Overall, 44% of workers say they have gained weight in their current jobs, up slightly from 43% in 2009, according to a new CareerBuilder survey. Nearly one-third of workers said that stress contributed to their weight gain at work. More than one-quarter (28%) of employees reported gaining more than 10 pounds while in their present positions. The survey found that women were more likely to put on weight than men, with half of female workers saying they had gained weight in their current position, compared to 39% of their male counterparts. Rosemary Haefner, VP of HR for CareerBuilder, said, “Especially in this economy, it is easier to pick up unhealthy eating habits in the office as workers spend more time on heavier workloads and less time on themselves.” “Employers know that employees who are healthier and have less stress are more productive and ultimately stay longer in their positions. “Because of this, we continue to see employers taking a more proactive role in their staff’s health by offering perks such as gym passes, onsite workout facilities, wellness benefits and even contests that promote healthy living,” she added.

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SPONSORED DIVERSITY indigenous FEATURE katie recruitment malyon

THE NEW FINANCIAL YEAR:

WHAT HR PRACTITIONERS NEED TO KNOW ABOUT SPONSORING ON 457 VISAS Katie Malyon is Principal and CEO of multi-award winning corporate immigration law firm Katie Malyon & Associates, Lawyers. Katie was asked by Human Capital to identify the key issues that HR professionals should consider at the start of a new financial year having regard to the fact that one in four workers in the Australian workforce hold a visa – temporary or permanent.

so that you can plan for a discussion later in the year about the need for a new 457 visa (with the new condition imposed on visa holders to have health insurance), transitioning to the fast-tracked permanent residence visa nominated by the business or repatriation back overseas. If not previously considered, it is timely to review contracts of employment to include clauses ensuring the risks of employing an expat are appropriately managed and, if relevant, align with DIAC’s recently clarified policy on LAFHA.

Q. Does the new Fair Work IR regime apply to 457 visa holders? A. Yes, all 457 visa holders must now be employed on equivalent terms and conditions as Australian employees. The onus is on a sponsor to provide DIAC with evidence that an expatriate employee’s terms and conditions of employment are no less favourable and on a par with what is provided to an Australian employee undertaking the same work at the same workplace. This not only applies to rates of pay but also to entitlements such as maternity leave, leave without pay and long service leave.

Q. What sort of issues do HR practitioners need to think about at this time of year? A. Most of the issues to consider stem from the obligations that a sponsor takes on as part of the sponsorship approval process. For example, paying market salary and notifying the Department of Immigration and Citizenship (DIAC) of certain events – some of which are triggered with effect from 1 July – such as change of duties following a promotion, appointment of new partners to partnerships and implementation of a new training budget. It is also a good time of year to review preparation for the inevitable DIAC audit and to formally review visa expiry dates of all expat staff

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Q. What do I need to consider in relation to market salary for expatriate employees at this time of year? A. If a sponsor increases salaries of Australian employees from 1 July 2010 following performance reviews then consideration must also be given to ensure that any expatriate employee’s terms and conditions are no less favourable. Businesses must ensure that sponsored employees are paid at least the equivalent salary of Australian employees in the same position at the same workplace and, in any event, paid above $45,220 pa. There are limited exceptions under DIAC policy for persons employed after 14 September 2009 to salary packages below this amount. Even if there is no equivalent Australian employee undertaking the same role, sponsors need to consider what is happening in the marketplace by

SPONSORED DIVERSITY FEATURE indigenous katie malyon recruitment

reference to the relevant Modern Award, Enterprise Agreement or industry salary surveys.

Q. One of our sponsored expatriate employees has been promoted from 1 July 2010. What do I need to do? A. If the promotion involves a change of duties then DIAC must be notified within 10 working days by fax or e-mail of the change. Notice to DIAC will allow an assessment, amongst other things, of whether the personâ&#x20AC;&#x2122;s occupation has changed such that a new nomination is required and whether the expat is being paid the market salary.

Q. Do we have to report all internal business changes to DIAC? A. No. However, some changes to corporate governance and financial capacity of the business must be reported. These notifiable events include appointment of a new director to the board, a new partner to a partnership as well as changes to the training information previously provided to DIAC. DIAC must also be notified of a change of business address.

Q. We have just terminated the employment of one of our expatriate employees. Have our

obligations now ceased in relation to this employee? A. No, some obligations are triggered by termination of employment and others (such as record keeping) continue for up to five years after termination. DIAC must be notified within 10 working days of the termination of employment. If the expat has not been nominated by another business or they have not obtained another substantive visa then, within 30 days of receiving a written request from the former employee, the sponsor must pay the one-way economy class airfares of the person and sponsored family to allow them to leave Australia. In the absence of contractual arrangements to the contrary this does not extend to paying for goods and chattels to be returned. The business must also notify DIAC of payment of return travel costs.

Katie Malyon

Q. Is our business likely to be monitored by DIAC? A. Yes, all sponsors can expect to be audited. If your business is a new sponsor, it is likely that you will be monitored within the first 12 months of approval. For some, this will mean completing a Business Sponsor Audit form; for others it will mean a site visit by a DIAC Inspector. DIAC has recently signalled its intention to focus on white collar professions. The obligation to co-operate with DIAC Inspectors ends five years after ceasing to be a sponsor.

For more information on the topics discussed in this article, how to prepare for a DIAC audit or sanctions for non-compliance contact Katie Malyon on (02) 8247 8247 or e-mail info@malyonlaw.com

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INTERNATIONAL ISSUE: International recruitment

Sweden Denmark

Poland

Belgium Germany France

Canada

Italy

Spain US

Hungary Romania

Greece Algeria

Mexico

or evidence of the appeal of Australian cities to overseas workers one need only look at Mercer’s 2010 Quality of Living Survey. Sydney (10), Melbourne (18) and Perth (21) ranked amongst the world’s top 36 cities for overall quality of living, dominating the rankings in the Asia-Pacific region for the third year running. Mercer’s analysis is based on an evaluation of 39 criteria for each city, including political and socio- economic factors, environmental factors, health and sanitisation, education, transport and other public services. While it’s good news for multinational organisations that rely on quality of living data to ensure they compensate employees fairly when transferring them to international locations, in truth Australia needs all the help it can get. After WWII, Australians were exhorted to “populate or perish” by then Prime Minister Curtin, who was effectively linking national security with

A world with As international hiring picks up, Iain Hopkins looks at why global skills are converging

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Net gain

China 31,000

Net loss

US 9,000

Belgium 2006 Net gain

France 7,000

Canada 2006 Inflow

India 29,000

Denmark 2007 Net gain

Poland 4,000

France 2004 Inflow

Algeria 32,000

Germany 2006 Net gain

Poland 48,000

Net loss

Greece 6,000

Hungary 2005 Net gain

Romania 8,000

Italy 2003 Net gain

China

Romania 74,000

New Zealand 2006

Iraq

Net gain

UK 10,000

Net loss

Australia 23,000

Spain 2006 Inflow

India

Romania 112,000

Sweden 2007 Net gain

Iraq 12,000

UK 2006 Net gain

Poland 47,000

Net loss

Australia 30,000

US 2006 Inflow

Mexico 174,000

Key: = Gain

= Loss

Australia

New Zealand

out borders and what HR can do to attract and recruit the best international candidates

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Source: KPMG International 2008, The Global Skills Convergence. Data from United Nations: International migration flows to and from selected countries, 2008 revision, New York

Australia 2006

INTERNATIONAL ISSUE: International recruitment

“Employers still want the best and brightest in their field. Nine times out of 10 that means targeting people already working because they’re the best” – Rupert Merrick

population growth. In 2010 that phrase might be adapted to ‘attract skilled migrants or perish’ – or at least witness a worsening of the already critical skills shortage in this country. Australia has some obvious advantages over other countries in attracting overseas talent – as witnessed by the Mercer result – but competition from Singapore and other Southeast Asian nations, as well as China and the Middle East, means employers must be at the top of their game to attract talent. Fortunately, alongside the ‘pull’ factors that make Australia a popular destination are a number of ‘push’ factors occurring overseas. The high level of ‘spare capacity’ that exists in Britain, Western Europe and North America as a result of the GFC means that these areas tend to have much higher unemployment figures than Australia and therefore have a much larger supply of readily available labour and talent. Ongoing uncertainty over economic conditions is also pushing people to look overseas for work. However, Rupert Merrick, international sales director for Workingin.com, says employers should tread carefully as those people who are unemployed may not be the right talent. “Employers still want the best and brightest in their field. Nine times out of 10 that means targeting people already working because they’re the best. However, even the brightest of the bunch are looking to Australia and seeing the stability and growing market, reinforcing why they want to move here in the first place. The whole employment brand of Australia has been on an upswing.” Emma Halls, Sydney director of specialist global recruitment firm Hydrogen Group, says HR, CEOs and other decision makers cannot afford to be complacent. “There is a wealth of international talent out there who want to come to Australia to work. They are attracted to Australia’s image, but the increasing cost of living [in Australia] can be a factor that pushes them to take up positions in Southeast Asia or the Middle East with generous relocation packages, low or no incomes taxes, and the same sun and lifestyle opportunities,” she says.

The multinational approach With the economy quickly moving into recovery mode, international hiring has commenced again, albeit cautiously. After a significant drop off in demand for employer-assisted 457 visas in 2009, Merrick says 2010 has seen many employers in engineering & mining, IT and some areas of banking & finance return to growth mode. In the search for highly sought-after skills, they are looking overseas for talent.

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General skilled migration, too, has been shaken up by the federal government’s decision to drop the Migration Occupations in Demand List (MODL) and create the Skilled Occupations List (SOL), which impacts those people coming into Australia unassisted by an employer (see box on p26). “It’s really about… supplying Australia with the skills that it’s lacking,” says Merrick. For most multinationals, international recruitment never really diminished. Companies such as IBM have programs to ensure that top-level executives have the skills and experience to manage foreign markets and an awareness of cultural, political and economic sensitivities. Another model being employed is the concept of ‘worldsourcing’, which IT powerhouse Lenovo (profiled in HC issue 6.8) has implemented. Instead of moving people around to deal with demand, ‘worldsourcing’ sees companies move the work to areas that have the capability. Companies therefore allocate resources and a workforce around regions that have specific expertise. For example, at Lenovo, hardware design is regarded as the comparative advantage of the Japanese workforce and telemarketing the comparative advantage of the Indian workforce.

William J. Amelio, the American CEO and president, based in Singapore, at Lenovo, made the following statement in a 2007 Forbes article: “Worldsourcing is a strategic outgrowth of globalisation. In a world with just one time zone (‘Now’), business must source materials, innovation, talent, logistics, infrastructure and production wherever they are best available. And we must sell wherever profitable markets exist, anywhere in the world. In today’s global economy, companies must worldsource or die. It’s that simple.”

Proactive hiring But what of those companies that do not have an international presence but still suffer from acute skills shortages? What can they do? Larger corporates will use a number of channels in their international hiring strategy. Internal secondment programs and external recruiters and headhunters will likely play key roles but these are no longer the sole means of securing overseas talent. International job expos and trade fairs, international advertising in trade journals, specialised job boards and of course dedicated corporate careers websites are all being utilised to get continual branding out to candidates, and receive those precious CVs.

INTERNATIONAL ISSUE: International recruitment

According to results from Hydrogen’s Global Professionals on the Move survey, conducted by 3,155 mid-to-senior-level professionals, recruitment consultancies remain the most popular means of securing jobs abroad. Twenty-eight per cent of professionals already overseas had used one, followed by the use of headhunters by 16%. In contrast, the majority of respondents (64%) not yet abroad but who were interested in doing so were more likely to have simply done internet research about moving overseas, with only 15% actually having spoken to a recruitment consultancy. There are pros and cons to all approaches. Recruiters and headhunters with worldwide networks can have vast databases of not only overseas talent but expat-Australians looking to return home. Megan Warrin, operations director (Australia & New Zealand) of Randstad’s Health & Community Care Division says there is a side to international hiring which is different to local hiring. For example,

if a candidate is moving from overseas, the employer needs to provide more than just basic job details. A company needs to separate their offer as an opportunity distinct from the competition. “The candidate wants to know… why they should make the move overseas. You have to capture their imagination from the start,” she says. Warrin urges employers to choose carefully what information to include – some details may seem obvious to local candidates but information about location, travel logistics, visa information and the like are invaluable to international jobseekers. Halls notes that much of her team’s work involves talking to candidates about how opportunities overseas might fast-track their career. They also talk to Australians about moving back home. “Our clients rely on us because… we can determine who is potentially willing to move overseas. We can talk to them about making it possible… We offer advice on where the demand is.”

Case study: KPMG Australia external candidates to quickly view all KPMG job opportunities worldwide. HC: Can you explain how your international secondment program works?

Human Capital interviews Jessica Harrison, head of talent, people, performance & culture at KPMG Australia, about internal secondment programs: Human Capital: What techniques does KPMG use to attract and recruit overseas workers to Australia? Jessica Harrison: We’ve participated in various overseas job fairs, even online forums held in a virtual environment. In addition, we post our Australian jobs on the KPMG Global Careers site which allows

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JH: KPMG’s international secondment program, Global Opportunities (GO), is available to all KPMG staff. GO is not only about providing our clients with people who have the right skills, it is also about enriching the life experiences of our people. The main aim of this program is to develop international skills as well as transfer talent and knowledge across borders. If an individual is interested in a secondment opportunity, they are encouraged to speak to their performance managers and to work it into their individual goal setting. HC: Is the process that internal candidates go

through similar to external recruitment programs? JH: The selection process differs from our external recruitment as candidates have already passed our rigorous entry program. Internal candidates are assessed via an application review interview process and a review of past performance evaluations. HC: How long do secondments last for? JH: The timing is based on a specific client need are usually on a case-by-case basis. For other assignments, we put together a global listing of mobility opportunities stating the required duration of the assignment. Our secondments generally range from three months to two years. HC: Has KPMG witnessed workers coming to Australia from any particular area?

JH: KPMG Australia is currently seeing the greatest number of inbound secondees from Europe and North America. However, as part of our strategic focus, we’re working to increase staff mobility between KPMG member firms within the AsiaPacific region. HC: Does KPMG help with relocation and settlement? JH: We provide global relocation services to assist our secondees with relocation expenses and immigration matters. Upon arriving in their host country the secondee is welcomed into the business and assigned a performance manager. The recruit’s performance manager and key personnel from both home and host member firms also communicate regularly throughout the secondment period to ensure that the recruit settles in both professionally and personally.

INTERNATIONAL ISSUE: International recruitment

Managing a global workforce KPMG International provides six key tips: 1. Establish a leadership group within the organisation that will serve as the pool from which new senior executive talent will be drawn. Invest in training and career development programs for this group and ensure that there is sufficient depth to allow for talent to flow in and out.

2. Expose staff to international cultures, especially those in the leadership group, to ensure they have a fuller understanding of local issues and cultural sensitivities when dealing with the people aspect of a global organisation. Support this with local training (including language) programs.

3. Manage staff expectations when leaving for and returning from an international assignment. This especially applies to staff returning to head office after an overseas assignment. Be aware of demographic research that

suggests that after working in a foreign location for five years or more there is a tendency to prefer to remain in the adopted city/country.

4. Draw on local staff to manage country offices. Perhaps this is a vestige of the colonial era but interview subjects [from KPMG’s research] strongly feel that local offices are best managed by local staff rather than by an expatriate sent in from overseas. Or, if an expatriate must transfer their ‘know how’ to the local office, a key performance indicator of the expatriate’s role should be to identify a local replacement within five years.

5. Remunerate to market rates. This requires constant research and benchmarking to ensure that the rates and structure of the remuneration package is commensurate with the market

standard for the range of skills and often, the location of the expatriate including hardship and risk issues. Consider techniques such as delayed bonuses to encourage longerterm loyalty.

6. Recruit staff with good communication skills. The role of a modern corporate manager has shifted from ‘command and control’ from a distant location to one of ‘managing and communicating’ and perhaps even ‘motivating staff’. The skills required for the former role are different to the highly developed global communications skills required in the current environment. Source: The Global Skills Convergence, KPMG International, 2008

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INTERNATIONAL ISSUE: International recruitment

The world really is flat In his 2005 book The World is Flat, Thomas Friedman developed the idea that the ‘world is flat’ when barriers to trade, innovation and information are levelled. Friedman argued that the dismantling of the USSR, for example, was a levelling process which allowed trade, information and innovation to flow into and out of former Soviet states. Friedman stopped short of including the ultimate expression of a flat world:

human talent and labour. However, he did identify 10 events and developments that have recently flattened the world. With the advent of each of these ‘flatteners’ there is a heightened demand for the migratory flow of talent and labour. n The Fall of the Berlin Wall (1989)

n The mainstream arrival of the internet (1995) n The focus on supply chains which have increased interconnectedness and innovation (from the late 1990s)

n The advent of ‘outsourcing’

n The advent of ‘open

Careers expos Not a fan of the exorbitant fees charged by recruiters? Perhaps an international job expo is the answer. While initially intended as branding exercises to get word out about Australian companies, expos have evolved. The UK and South African Workingin expos are essentially one-stop shops for anyone looking to relocate to Australia. Alongside stalls set up by some of Australia’s largest employers are information booths by Medicare, the banks, as well as migration and relocation advisors, and the various state governments plugging destination-based migration. “It’s like speed dating in a way. We get people in over two days, with their family, and employers get quite a good idea at the expo about what the candidate is like. Then the employers stay on for a few more days and do their interviewing,” says Merrick. In Workingin’s case, the delegates are highly targeted – not just any Joe Blow off the street www.hcamag.com

n The advent of ‘offshoring’ which allows companies to maximise the benefits of operating in other countries (from mid-1990s)

n Software that allows digital applications to bridge the physical divide (1990s)

Well-connected headhunters will know who the overseas players are, will be involved in the relevant industry attending functions and seminars, and can advise candidates not just about the roles and how an overseas posting might take their career to the next step, but can also offer advice on relocation and what it’s like to live in the destination country. In addition, despite advances in video conferencing, nothing beats meeting a candidate face-to-face, and provided the recruitment consultant is well aware of the culture and ‘feel’ of the client company, they can be adept at selecting an appropriate shortlist or even final candidate.

which allows anyone with the skills to do any job (1990s)

sourcing’ which allows anyone to contribute to technological innovation (early 2000s) n The concept of ‘insourcing’ that allows one business to perform the functions of another (early 2000s) n The concept of ‘informing’ where anyone can learn and share anything (early 2000s) n The development of flattening ‘steroids’ such as iPods, VoIP, and Wi-Fi which have accelerated the flattening process (from the mid-2000s)

dreaming of migrating to Australia. “We do a dedicated vertical marketing program for each of the industries at the show, one for health, engineering, IT, etc. We advertise in industry journals, purchase databases, and undertake vital campaigns. It varies according to how each industry consumes media. We also use our own Workingin-australia website, which gets 150,000 unique browsers a month. We datamine that to ensure we’re getting people who are Aussieready and have the skills.” Indeed, the website plays an important role in removing one of the major criticisms directed at expos – that they deliver untargeted, underskilled dreamers with no intention of actually making a move overseas. As Merrick explains, most serious migrants will have the conversation with their family, come to an agreement, then head to the internet. They’ll type in key phrases into Google, such as ‘nursing in Australia’ and the Workingin-australia website will feature prominently. On the website, candidates can post their CVs, find information on visas, and see job ads posted by Australian employers. “These candidates are looking for the work, so once we go through the database and find out all the engineers in London, we’ll get in touch with them and alert them to the expo happening in London with some of the biggest engineering companies in Australia taking part,” Merrick says. Taking part in the expo is a fixed upfront cost. Most clients with Workingin will take out stands at both the London and Manchester expos for £10,000. They might walk away with 300 CVs and then finetune that list and end up recruiting 10 top engineers.

(Cont p26 )

SPONSORED FEATURE commonwealth bank

RELOCATION MADE EASY The key to a successful relocation strategy is to assemble a team of experts you can draw on to support you and your new hires. That’s why one Australian bank has created a dedicated international team

elocating staff from overseas can be immensely rewarding, giving you access to a global talent pool with skills and experience that often aren’t available locally. But it can also be time-consuming and complex, both for you and your new hires. Naturally you want to smooth the way as much as possible, allowing them to focus on the jobs they’ve been engaged to do, especially if they’re joining your leadership team. At the same time, you can’t be an expert on everything – nor should you be. The key is to concentrate on your core competencies while assembling a team of experts you can draw on for your other needs. So, while you assist your new staff with visas, accommodation, schools and the thousand-and-one other challenges of moving halfway around the world, you can also draw on specialist support for more complex issues like tax and finance. That’s why the Commonwealth Bank has created a dedicated International Customer Services team. Their job is to support you and your relocated staff with a fast, streamlined service that integrates seamlessly with your relocation support. They can set up bank accounts, credit cards and other accounts before your staff move, so that everything is ready and waiting when they arrive. They can also connect your staff with financial specialists who can help with everything from insurance to investments. We recently talked to some new arrivals to find out about their experiences with the International Customer Services team. Here’s what they had to say.

team to contact him and help set up his new Australian bank accounts. “This was an easy process,” he says. “I arranged all the setup over the phone. “A week before I arrived in Australia, I transferred money into the account, and the account was then activated. I was also pre-approved for a credit card.” After arriving in Australia, a brief visit to the bank was all it took to have everything up and running. “I went to the bank, collected my banking cards and signed several documents, and I was done,” he says. Like so many professionals, he is time-poor, so speed and convenience were important to him. “All the hard work was done for me – that was especially useful since I lead a busy life.” But cost savings also played a part in his decision to bank with the Commonwealth. “Another advantage of coming to Commonwealth Bank was less fees,” he says.

“The experience was easy and seamless”

Smoothing the way

“I moved to Australia from New Zealand to further my career,” says one health services professional. Before he moved, his bank in New Zealand arranged for a member of the International Customer Services

Laurencia Walker Business development manager

“Can’t ask for more” “[The] process was extremely quick and easy,” says another recent arrival. “Everything can be done online.” The International Customer Services team took the time to understand her needs, then suggested services to match. Asked how she would describe her experience, the customer says it was fast and easy – “[they] helped every step of the way.” In fact, she liked it so much, she has recommended it to a number of friends who are considering a similar move.

To find out how the International Customer Services team can help smooth the way for your staff, contact Laurencia Walker on +61 2 9762 0916 or Laurencia. Walker@cba.com.au or visit www.commbank.com. au/movingtoaustralia

Important information: As this advice has been prepared without considering your objectives, financial situation or needs, before acting on this advice you should consider its appropriateness to your circumstances. If you have a complaint, the Bank’s dispute resolution process can be accessed on 13 2221. www.hcamag.com

INTERNATIONAL ISSUE: International recruitment

by a looming end date. Yet the respondents of the 2010 Global Relocation Trends survey, conducted by Brookfield Global Relocation Services, revealed that this practice is common among multinational corporations. Although most report holding repatriation discussions with expatriate employees, the majority wait for the final six months of the assignment to do so. Regular home leaves play an important role in preparing the spouse for eventual repatriation. Keeping a finger on the pulse of the home culture and maintaining career and social networks make re-entry a little less jarring. The mistake many expats make, however, is presuming the final homecoming will be just like home leave. In fact, the reality of repatriation is very different and these home leave visits – especially in the final six to 12 months – should be an opportunity to explore options for schooling, housing, and employment for the spouse. “Moving overseas is a big commitment and a complicated process. There are a lot of conversations and there is a lot of waiting. In many instances, it’s a journey you take with a candidate to realise their overseas dream, and you want to make sure it stays a dream,” concludes Warrin. HC

The spread of the MNC A brief history of the multinational corporation (MNC) provides insights into the increasing business demand for workers to undertake overseas assignments.

n An MNC is defined as a business that has operations in at least one other country.

n MNCs had their origins in the colonial trading companies of France, Spain, the Netherlands, and the UK in the 18th and 19th centuries. However, the impact of MNCs was modest until they started to proliferate from the middle of the 20th century onwards.

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Global relocation trends Brookfield Global Relocation Services’ 2010 Global Relocation Trends Survey report, based on responses from 120 senior-level human resources professionals from a diverse group of industries and countries, provided the following insights: Only 47% of expatriates had children accompanying them; an all-time low. Spouses/partners accompanied 79% of expatriates; the second lowest percentage in the history of this report. For 96% of respondents, assignment policy decisions were made globally at headquarters; the highest percentage ever. 92% of respondents held repatriation discussions, 74% of companies had written repatriation policies and 95% of companies identified new jobs within the company for repatriating employees. In response to economic conditions, 72% of companies reduced assignment expenses. 75% of respondents prepared cost estimates before an assignment, and 64% tracked costs during an assignment. 70% of expatriates were married. The percentage of married men (63%) was higher than at any time since the 1999 report.

n The exponential growth of MNCs is evidenced in data collected and published in Global Inc.: An Atlas of the Multinational Corporation, which suggests that between 1970 and 2005 MNCs grew in number from 7,000 to 70,000. This growth trajectory is not expected to change over the next 30 years and will bring with it a range of management challenges associated with a global workforce.

n As of 2008, it was estimated that MNCs employed 90 million people or 3% of the global workforce and 20% of the world’s non-agricultural workforce. It is estimated that Fortune 500 companies alone employed half the global MNC

workforce and around 90% of these corporations had head offices in the US, Europe and Japan.

n Over the next decade, the number and workforce of MNCs will continue to expand – perhaps toward 10% of the global workforce. More importantly, they will expand their head offices out of the traditional Western headquarters and into the new territories of the developing world. This process will require a relatively new set of management skills that has not been developed previously in global or international entities: the management of a global workforce from a non-Western head office. Source: The Global Skills Convergence, KPMG

INTERNATIONAL ISSUE: International recruitment

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INTERNATIONAL ISSUE: workplace diversity

Working hand in hand Integrating migrants and supporting the families who migrate with them is a crucial piece of the diversity puzzle, yet many organisations get it wrong. Stuart King provides some tips

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INTERNATIONAL ISSUE: workplace diversity

ustralia’s ageing population and, therefore, its ageing workforce, is a given. According to the Australian Bureau of Statistics as at June 2009, the number of Australians of workforce age (15–64) was 17.5 million or 65.3% of our population. Projections are that for some time after 2010 there will be more people leaving the workforce than joining it. The traditional recruitment pool is like our water supply, valuable and precious. The issue of an ageing workforce is affecting many international economies and thereby increasing global movement of labour. The federal government is talking already about developing a long-term immigration strategy based on integration and growth. Our experience has been growth through immigration; from the end of WWII our population grew from around 13 million to 22 million on the back of immigration. Increased migration will bring increased diversity to our community and organisations, and with it a complexity that may be seen by organsations as a cost driver.

The impact on business Consequently, unique pressures are looming. Integrating migrants and supporting their families will be critical to the success of any immigration program and the recruitment and retention of migrant employees. Organisations will need to strategically prepare their workplaces for an influx

Cultural mismatch

Cultural ignorance can and does lead to negative, dangerous and sometimes humourous consequences. The examples below illustrate how critical cultural awareness is in international business today: n American Motors tried to market its new car, the Matador, based on the image of courage and strength. However, in Puerto Rico the name means ‘killer’ and was not popular on the hazardous roads in the country. n FedEx wisely chose to expand overseas when it discovered the US market was saturated. However, the company failed to consider cultural

of migrant labour and its impact, not least through developing diversity programs. In this context, those that aim to integrate migrant employees rather than to assimilate them (that is, requiring them to be like us, whatever that is) will have better traction. Reflecting on a decade of implementing diversity programs we can evaluate and benchmark diversity activities, identify best practices, and debate quality criteria and standards in order to establish a more effective business case for diversity. Studies such as Hewitt Associates’ Beyond Best Practice: New Strategies for Diversity Breakthroughs (2006) highlight positive achievements. However, when assessing current best practices in managing diversity, the study concludes that “few organisations are directly applying the implications of diversity to their business strategies.” The Hewitt study makes it clear that before embarking on diversity programs corporations need to answer the vital question of why it is important, given their industry and company profile. “Only those who make hard-wired links to their core business will be able to make those investments necessary to set the foundation for achieving sustainable diversity and inclusion,” the study says. Such an approach is necessary in order to de-escalate many of the contentious issues around diversity. Employees need to see the relevance. This is critical to creating an inclusive environment. It shifts diversity from being about various

differences: In Spain the workers preferred very late office hours, and in Russia the workers took truck cleaning soap home due to consumer shortages. FedEx eventually shut down over 100 European operations after suffering US$1.2bn in losses. n An American business person refused an offer of a cup of coffee from a Saudi businessman. Such a rejection is considered very rude and the business negotiations subsequently stalled. n Leona Helmsley should have done her homework before she approved a promotion that compared her Helmsley Palace Hotel in New York to the Taj Mahal – a mausoleum in India.

Increased migration will bring increased diversity to our community and organisations, and with it a complexity that may be seen by organsations as a cost driver

n An example of how crosscultural differences between aircraft manufacturers Boeing and Airbus (located in ‘small power distance’ countries) and pilots from South Korea (‘large power distance’ country) caused a series of dangerous situations and accidents in the late 1990s. Planes produced by Airbus and Boeing are supposed to be flown by two pilots without a significant power distance between them, where one pilot corrects the other when necessary. As a result of the large power distance between the pilots working for South Korean Airlines more than once the co-pilot would not correct mistakes made by the other pilot.

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INTERNATIONAL ISSUE: workplace diversity

constituencies – for example, migrants – to being about the organisation.

Diversity strategies that work So how do we make diversity programs work? Programs that encourage people to simply get along and voice the need for inclusion and political correctness are not enough to bring inclusion about. Inclusion is tough and harder than raising awareness or sensitising staff for diversity because it is about making sure that individuals from various demographic groups feel included in their immediate surroundings and in the organisations’ overall community. Inclusion is about how to make the diversity mix work. Taylor Cox (2008) emphasised the need to relate workforce diversity to organisational issues such as organisational culture and managing change through organisational development (OD). The Hewitt study argued that the paradigm of diversity sensitivity and tolerance, which were part of the past generation of work diversity, was limited in delivering a sustainable inclusive workplace environment. This was because although the tolerance approach resulted in enforced zero tolerance policies based on anti-discrimination legislation and affirmative action strategies, it undermined inclusion because of its implied audiences specifically targeting groups of people based on one attribute such as white, black, gay, lesbian, women, disability or ethnicity. But individuals crosscut group categories, and they can feel stigmatised once they are categorised according to one characteristic or another. Such oversimplified group categorisations immediately put members of an organisation or community on the defensive and create antagonism. For example, migrant minorities against the majority population groups, Muslims against Christians, etc. There needs to be a paradigm shift in individual and organisational diversity competence and, more specifically, cultural competence, one of the most important core competencies of the future. In sum, cultural competence refers to an ability to interact and communicate effectively with people of different cultures. It is the ability to solve culturally determined problems by recognising one’s own model of reality or world view and perspectives in relation to that of others.

Managing diverse work teams In their 2000 research into creating value with diverse work teams, Joseph DiStefano and Martha

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What’s important when working cross culturally? When moving to an HR role in India, an Australian client told me he was confronted by many more ethical issues than in Australia. These ethical issues had a cultural base. For example, senior expatriate American nationals at the Indian subsidiary broke company rules by taking their camera-equipped mobile phones into secure production areas. Indians never broke these rules. The Indian security guard felt the rules weren’t applied equally and he accused the company of racism. In response, the HR executive suggested the security guard request senior executives hand in their phones on entry; a solution which would work in Australia but not India. In a hierarchical society like India it is unlikely that a junior employee would give instructions to someone senior. Nor would they suggest a more appropriate solution to the HR executive. What can we learn from this interaction? 1. Assumptions are dangerous. In this case, assuming that the solution used in Australia would work in India failed to take account of cultural differences. 2. Understand the culture. Learn about cross cultural values and behaviours. In this case, understanding Indians’ hierarchical nature and their deference to those more senior. 3. Communication styles vary across cultures. The security guard nodding may only be acknowledgement, not necessarily agreement. 4. Develop cultural competencies. Professional expertise is not the only driver of global business success. A more culturally-sensitive solution: Have a senior staff member speak to the American executives about this breach of security and ask them to comply. Further information, contact Anna Koren at anna@interculture.com.au or phone 0409 043 496

Maznevski concluded that given a demonstrated commitment to diversity and inclusion and management competence, diverse teams will outperform homogenous teams through the synergy created. According to DiStefano and Maznevski, there are three types of multicultural teams: »» The Destroyers are characterised by mistrust and prejudices. Team energy is diverted to conflicts around processes of negative stereotyping. These teams are dysfunctional because the formal leaders make decisions without genuine discussion among members. Results lag behind those of homogenous teams. »» The Equalisers ignore and override cultural differences. Teams do not move beyond mediocrity since diverse ideas, perspectives and values are not utilised. Cultural diversity is not viewed as having resource and innovative potential. »» The Creators recognise and value cultural diversity, and even promote it in regard to set objectives. DiStefano and Maznevski compare such teams with a top-performing jazz ensemble.

INTERNATIONAL ISSUE: workplace diversity

DiStefano and Maznevski argued that top performance through synergy of individual differences is a process accompanied by HR development interventions based on their MBIModel of managing cultural diversity. This model consists of three phases. In the Mapping phase the team is made aware of relevant differences, such as cultural origin, gender, education, work experience and other issues, which may cause conflicts. The aim is to reflect on one’s own cultural identity, ie, being aware of and gaining an understanding for differences. In the Bridging phase competencies are acquired in recognising and dealing with problems adequately and preventatively. In the Integration phase strategies are in place to manage differences, ie, to value and utilise differences to achieve high performance. It includes monitoring participation patterns, solving disagreements and creating new perspectives. Given all of the above we will have authentic diversity at work and know that it is working for us when the following outcomes are visible:

»» Rigid and unproductive work-related structures and organisational cultures are overcome by replacing a dominant or monoculture with cultural diversity throughout all levels resulting in a multicultural organisation in which differences and similarities are valued and managed. »» Costs to counter discriminatory practices are reduced, and employee motivation and productivity is increased through the avoidance of discriminatory practices. »» The potentials of all employees are recognised and activated, creating a larger pool of qualified staff. »» Employees are more satisfied and motivated, making the organisation an employer of choice. »» The quality of services and products is improved, for example, through cultural-specific adaptation of products and targeting specific groups of people. Successful examples are Deutsche Bank’s targeting of the Turkish community and gay marketing for various consumer products (Stuber 2002). »» The image of the organisation and society in general is improved. HC

Stuart King is the CEO of KWS Workplace Solutions and former senior police manager of the Victoria Police Equity and Diversity Unit. Visit www. kingsworkplacesolutions.com

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FEATURE performance management

or organisations without an effective staff performance framework in place, the annual performance appraisal and salary increase process can be a daunting and ambiguous proposition. It is often dreaded by managers, anxiety provoking for staff members and can negatively impact organisational performance. By contrast, an effective staff performance framework can positively impact staff, the organisation and its culture. With clear objectives and expectations established, staff can be self motivated allowing managers to work on the business rather than micro-manage. Performance of individuals and the organisation can improve with assigned accountability supported by a reliable appraisal system. Moreover, culture can be improved by aligning behaviour expectations with organisation values. For organisations also linking a staff memberâ&#x20AC;&#x2122;s performance to salary increases, the benefits can be greater. With the knowledge of a merit-based system in place staff members can be highly motivated and retained. Such a system can also assist in attracting other highly motivated performing staff members. However, a framework that links performance to salary may not be applicable for all organisations. Before embarking on the implementation of this type of framework, organisations need to understand the steps involved and ascertain whether it is suitable.

Far from being a process to dread, the performance appraisal can be a valuable motivation tool, especially when itâ&#x20AC;&#x2122;s linked to salary. Scott Pickering reports

Performance 40

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FEATURE performance management

included should be a section for individual and career development. Some organisations will conduct a 360 degree review during the appraisal period.

Annual performance appraisal & salary increase framework Central to the success of an annual performance appraisal system is a reliable framework. The framework incorporates various elements, each of which plays an integral role. Absence of one or a number of these elements and the system can be derailed. Rather than engagement and motivation, disengagement and de-motivation can result. The challenge for organisations is the discipline required to ensure the framework and underpinning processes are appropriately governed and adhered to. (Refer to Annual Performance Appraisal diagram on p43) Position descriptions (PDs) PDs are tools used to assign specific accountabilities, responsibilities and functions to specific roles, and are a vital link in the performance appraisal process. The PD provides the foundations for measuring performance and monitoring accountability. Trained to appraise Staff members in positions of authority need to be adequately equipped to appraise staff. Often staff are promoted to new supervisor and manager positions based on their technical skills, but are not provided with training on managing and appraising staff. Conducting such training programs can support a consistent appraisal approach across the organisation. Performance appraisal tool The appraisal tool incorporates sections for staff to be appraised. Sections include key performance indicators (KPIs) aligned to organisational goals, behavioural expectations aligned to organisation values, along with leadership competencies. Also

Periodic progress review The annual appraisal should not contain any surprises. There should be a sound understanding by the staff member through informal and formal feedback as to ongoing progress and any performance issues should be identified and addressed on a regular basis. Annual performance appraisal and rating A definitive rating is a critical aspect of the performance appraisal and it is the catalyst to link performance to salary adjustment. Moreover, staff members can be left in a state of uncertainty, disengagement or cynicism without a result. Organisation salary pool The accumulated annual salary increases should be aligned to budgeted amounts prior to allocation to staff. Financial problems can occur when divisional and departmental increases exceed budget. Staff salary increase Once individual salary increases are determined from the salary pool, increases are then assigned and communicated to staff members. This final stage closes the annual appraisal loop for staff. Planning then begins for the next period.

Linking annual performance appraisal to salary increases

Steps 1 & 2 â&#x20AC;&#x201C; Staff performance appraisal & rating As mentioned in the framework overview, an individual performance rating is required from the performance appraisal review to link performance to salary increases. While organisations may have their own rating scales and performance definitions, what is critical is that a rating is derived which is then the catalyst to salary review. A contentious issue in some organisations is eligibility for annual salary increase. Due to the

frameworks

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FEATURE performance management

Step 1 Staff performance appraisal

Step 3 Organisation annual salary pool allocated based on performance

Strong performer

Step 2 Staff performance rating Not eligible

Eligible Sound performer

Unsatisfactory performer

High performer

Low performer

Sound performer

High performer

Strong performer

Step 5 Performance management program Unsatisfactory and low performers

absence of eligibility criteria, staff members are often rewarded when performance is below required levels. Eligibility criteria may include: annual performance rating benchmark – only ratings of satisfactory and above are eligible tenure with organisation – new staff members still within the probation period may be ineligible staff promotions – staff recently promoted and already in receipt of a salary adjustment within a specified period, such as four months, may be ineligible Whatever criteria are decided, clear communication to all staff is crucial. Step 3 – Organisation salary pool allocated to ratings Upon the completion of all staff members’ performance appraisals and ratings, the salary increase for each rating (and staff member) can be determined. By applying an algorithm within a salary adjustment model, salary increase percentages are applied for each performance rating, with higher ratings being awarded a higher percentage increase. These percentages can be adjusted up or down until combined salary increases across the organisation (or department) are within budget, and provide a platform for any further individual salary adjustments as required. This approach applies a consistent percentage increase for each staff member with the same rating, providing an organisation-wide fair approach. A bell curve can be used as a guide for an understanding

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of the overall performance ratings profile, which can illustrate whether ratings are consistently high or low in certain departments. Some organisations will normalise to the bell curve and ‘force’ ratings to ensure the bell curve is maintained; however, this is not incorporated within this model. Step 4 – Salary increases Upon determination of salary increases organisational wide, increases are then assigned to eligible staff. Step 5 – Performance development program For staff members identified during the performance appraisal as being low or unsatisfactory performers, a formalised development program should be implemented to improve performance. It would specify areas for improvement and the timeline in which satisfactory performance is to be achieved.

Alternative salary increase methodologies There are various methodologies organisations employ to apply annual salary increases. This includes performance-based adjustments, economicbased adjustments (CPI) or EBA agreements. The method implemented will depend on a number of factors such as size of organisation, industry sector such as commercial, government or not-for-profit, and/or existing employment agreements which may restrict options. Organisations need to assess the

FEATURE performance management

Position descriptions (PD) annual review Staff salary increases determined & assigned

Organisation salary pool

Annual performance appraisal framework

Annual performance appraisal conducted

New managers trained to appraise

Annual performance appraisal tool sections established

Periodic performance progress reviews conducted

ÂŠ Source: Scopic Group

advantages and disadvantages of all methods to ascertain which is best suited to their specific needs.

Conclusion In the absence of a reliable performance appraisal framework and linking of performance to salary,

salary adjustments are often randomly assigned on qualitative assessment based on economic performance (CPI) or sometimes favouritism. Consequently, high-performing staff are not satisfactorily rewarded for their contribution. Conversely, poor staff performance is not addressed. This can lead to high performers being demotivated and disengaged, resulting in their attrition. Moreover, the resulting organisational culture can be one of mediocrity where poor performance and lack of accountability continues to co-exist, culminating in poor overall organisational performance or organisations not achieving their full potential. While a framework that financially rewards performance can be controversial, contentiousness generally arises from poor-performing staff receiving a salary increase under other frameworks that reward irrespective of performance. Implementation of a reliable staff performance appraisal framework underpins an organisationâ&#x20AC;&#x2122;s ability to achieve its potential, allowing managers to work on the business with high performing and motivated staff, rather than working in it. HC

About the author Scott Pickering is a director of Scopic Group, a consultancy practice specialising in organisational and staff development solutions. For information, e-mail scott.pickering@ scopicgroup.com.au or visit www.scopicgroup.com.au

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HR INSIGHT OHS

Safety first For a real ‘safety first’ culture it’s not enough to change systems and procedures; instead, organisations must change attitudes and behaviours. Danica Hooper explains how

n a society where human life is seen as paramount, safety at work is rightly a topic of considerable discussion. While some of us at times feel that the concept has been ‘overworked’ resulting in lip-service and impractical red-tape, it only takes a local tragedy, such as the 2008 Varanus Island gas explosion or the fatalities associated with the Australian Government Insulation Scheme, to remind us that ‘it’s always best to be safe than sorry’. We know that the causes of workplace accidents are usually very complex, involving an interaction between the physical environment and equipment available; an organisation’s policies, procedures, and protocols; their management practices; employee training; team and interpersonal relationships; and of course the behaviours and choices made by individuals themselves. In this respect, safety is considered to be ‘systemic’ and affected by multiple elements working together; no one factor alone is usually to blame for any critical event. Despite the fact that the causes of accidents are complex and multifaceted, the research does suggest that human factors are involved in 80–90% of work accidents (Hale & Glendon, 1987). Specifically, the behaviours of individuals have either a direct or indirect impact on the chain of events leading to an accident. Therefore, organisations are beginning to realise that improving the safety culture of an organisation not only involves re-designing systems and procedures, but it also involves changing the attitudes and behaviours of employees, as well as selecting individuals into the organisation who will

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HR INSIGHT OHS

actively promote and improve safety – the latter being recognised as one of the most proactive approaches to reducing safety related risks at work.

So what individual attributes should we be looking for in selection? In the past, approaches to selecting for safety have often focused on an individual’s tendency towards rule compliance. Undoubtedly being aware of and compliant with safety-related rules and protocols is an important first step to working safely, however, safe working habits involve more than simply just that. Prescriptive process controls (eg, procedures, rules and regulations) will always lack the variety necessary to guarantee safe behaviour, even if employees are meticulously compliant. There will always be situations in which no rules are available, or in which variations in the local circumstances contradict the applicability of the rules. Therefore, in a safety-sensitive environment an ideal employee is one who can combine rule compliance with a tendency to engage in learning behaviours such as asking questions, seeking feedback, and reflecting on

errors and unexpected outcomes. They are also likely to be assertive enough to enforce rules and stick to them when appropriate, and have the confidence to guide and direct others as needed. In summary, there are five attributes of employees important to promoting a positive safety culture: »» Showing safety diligence and conscientiousness (which involves adhering to rules and procedures, even when under pressure, and being prepared to confront others in a constructive manner) »» Being able to cope with pressures (which impacts upon managing stress, fatigue and distraction at work, all of which affect working safely) »» Taking proactive responsibility for safety (including offering proactive suggestions for process improvements) »» Having confidence in your work (such as knowing your boundaries and being prepared to ask others for assistance when needed) »» Being prepared to communicate safety information (proactively informing and educating individuals and groups as appropriate on safetyrelated matters).

Despite the fact that the causes of accidents are complex and multifaceted, the research does suggest that human factors are involved in 8090% of work accidents

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HR INSIGHT OHS

How do organisations traditionally select for safety? Organisations have a history of attempting to predict the future safety-related behaviours of job candidates. Quite commonly, organisations will include a single safety-relevant question ranging from fairly basic and ineffective (eg, why do you think you are a safe employee?) to one which is more useful (eg, tell me about a time when you witnessed an unsafe act on the job. Talk me through exactly what you did and why, explaining what the outcomes were). The more useful questions are behaviourally-based and ask candidates to describe their own past behaviour for a specific incident. Unfortunately, interviewers rarely have the time to ask the number of behavioural questions needed to get a comprehensive measure of the range of individual attributes that affect safety (such as the five key attributes listed earlier), and therefore the interview should typically be seen as only one of several methods used to collect safety-relevant information from candidates. Some organisations will also choose to conduct role plays, by asking candidates to pretend they are in a specific safety-critical scenario and to respond accordingly. Again, there are some good insights to be gained here, however, organisations should not use role plays as their sole assessment of safety behaviour, as they, too, do not always assess a wide breadth of behaviours, and they can be prone to eliciting nerves and ‘performance’ anxiety. Another option for organisations is to administer a safety questionnaire (otherwise known as a psychometric assessment). Psychometric assessments often offer a highly reliable and practical way to measure individual safety attributes. Given the questionnaire format, candidates can be assessed on a variety of attributes in a relatively quick and efficient manner, and as all candidates are given the same questions and are scored in a standardised manner, the end result is typically reliable and free from bias. However, the issue with many of the existing safety questionnaires on the market, is that some of them have been fairly narrow in focus (eg, looking only at a few key elements such as the tendency for rule following, ‘thrill’ seeking behaviour, or job-specific safety knowledge). As such, the propensity for a candidate to behave in other ways which promote a safety culture is largely overlooked. In addition to the lack of breadth, some safety questionnaires have been criticised for their perceived lack of relevance in the candidates’ eyes. Depending on the exact assessment chosen, candidates can report being confused or frustrated as

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to why they are being asked to complete ‘strange’ or ‘personal’ questions.

So how do we select for safety attributes in a quick, comprehensive & reliable way? A new assessment on the market today, called the Individual Safety Attributes Test (ISAT), fills the gap left by more traditional safety questionnaires, offering organisations a comprehensive, timely and reliable way to assess relevant safety attributes of individual candidates. When combined with a good quality interview and subsequent reference checking, the ISAT allows for a thorough yet practical approach for safety selection. The ISAT achieves the above by asking candidates to respond to a number of work-based, safety-critical scenarios, with their responses being compared to those of safety subject matter experts. The scenarios do not require job-specific knowledge; rather they require the candidate to draw on practical knowledge, or what might be termed by some as ‘common sense’. The result is a more ‘facevalid’ assessment, whereby candidates can clearly appreciate the job relevance of the scenarios they are being asked to respond to. As the ISAT does not require specific job knowledge, it is suitable for a wide range of roles and industries, including entry level positions. As a result of the assessment a written report is produced, highlighting the extent to which the candidate shows Safety Diligence and Conscientiousness, Copes with Pressure, shows Responsibility for Safety, has Confidence in their Work, and Communicates Safety Information Proactively; and reference check questions are provided for key areas requiring follow-up. The result is a more comprehensive approach to assessing safety in selection, which not only helps safety-sensitive organisation to proactively manage safety risks, but also provides a message to candidates at the point of selection that safety is of the utmost importance to your organisation. HC

About the author Dr Danica Hooper is state manager and organisational psychologist at People Solutions Australasia. For further information contact Melinda Boxall-Forsythe, senior client advisor, People Solutions Australasia, on (07) 3123 2355 or e-mail mforsythe@peoplesolutions.com.au

HR EXPERT INSIGHT INSIGHT OHS

REINSTATEMENT NOW MORE LIKELY FOR SUCCESSFUL UNFAIR DISMISSAL APPLICANTS

he unfair dismissal provisions of the Fair Work Act 2009 (the Fair Work Act) that came into force on 1 July 2009 altered the criteria by which Fair Work Australia (FWA) was to assess the merits of reinstating an employee. (For an employee who has succeeded in an unfair dismissal claim, the alternative to reinstatement is compensation up to a maximum of six months’ pay.) It is now more likely that an employee who wins their unfair dismissal case will be reinstated or re-employed. Section 654(3) of the previous Workplace Relations Act 1996 said “If the Commission considers it appropriate, the Commission may make an order requiring the employer to reinstate the employee”. Section 654(7) then said that the Commission could order an amount in lieu of reinstatement if “the Commission thinks that the reinstatement of the employee is inappropriate”. By contrast the Fair Work Act has not adopted this two-stage approach. Section 390(3) says “FWA must not order the payment of compensation to the person unless (a) FWA is satisfied that reinstatement of the person is inappropriate”. In discussing the impact on employees of the new unfair dismissal laws, the explanatory memorandum to the Fair Work Act says “For these workers the major benefit is that it provides reinstatement (or compensation) for those who are unfairly dismissed”. In material produced by the Australian Government explaining the new laws it is stated: “Reinstatement will be Fair Work Australia’s primary remedy for unfair dismissal. An order for reinstatement must be to reappoint the person to the position they had immediately before the dismissal or appoint them to another position that has terms and conditions no less favourable than the position they held previously. Fair Work Australia can make a reinstatement order applying to an associated entity of the person’s previous employer where the person’s position no longer exists with the original employer but that position, or an equivalent position, is available in an associated entity (Section 391(1A)).” Under the Workplace Relations Act, the Australian Industrial Relations Commission could not order reinstatement to an associated entity of the employer.

The change in wording in the Fair Work Act means that there is a presumption that reinstatement of the employee would be appropriate unless FWA is persuaded otherwise by the employer or employee. Some employees do not want to be reinstated. Almost invariably, an employer will oppose the reinstatement of an employee that they have dismissed. In a recent decision of FWA, Colin Makin v GlaxoSmithKline Australia Pty Ltd (U2009/13041) Commissioner Bisset observed: “Reinstatement is the presumptive remedy when a dismissal has been determined to be unfair. This is clear from the wording of ss.390(1) and 390(2) of the Act. It is also clear in the explanatory memorandum for the legislation. The first approach is to consider reinstatement and not to consider compensation unless I am satisfied that reinstatement is inappropriate.” An order to reinstate an employee who is found to have been unfairly dismissed could present significant difficulties for an employer. There is nothing to prevent Fair Work Australia from ordering the reinstatement of an employee to his or her former position even if the alternatives of employment to another position with the employer or an associated entity are available and even if the employee’s former position has been filled by someone else. In John Dalziel v Bilfinger Berger Services (Australia) Pty Limited (U2010/5854), Commissioner Smith ordered the reinstatement of a union delegate, sacked for swearing, to his former position. Bilfinger employed Dalziel and had been contracted by Sugar Australia to perform construction work. Dalziel was sacked for verbally abusing a Sugar Australia supervisor. Commissioner Smith ordered Dalziel’s reinstatement to the Sugar Australia project despite Sugar Australia stating that it would continue to ban Dalziel from the site. Terminated employees have 14 days from the date of dismissal to make an unfair dismissal application. They have 60 days to make an ‘Adverse Action’ (unlawful dismissal) claim. Employers anticipating applications from terminated employees may consider avoiding permanently filling the employee’s former position until the result of such an application is known.

Tim Capelin

Gordon Jervis

Tim Capelin, Managing Partner and Gordon Jervis, Senior Associate, AUSTRALIAN BUSINESS LAWYERS www.hcamag.com

PROFILE peter coyne

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PROFILE peter coyne

Taking the cro From school teacher to head of HR for an entity employing over 6,000 staff, this month’s profiled HR professional has one common theme running through his career: a passion for education. Iain Hopkins reports

ew people are able to successfully channel their passions into careers. Many choose the path of something they have a vague interest in but few can pursue a passion. Peter Coyne is one who has. As executive general manager, human resources at Crown Casino Melbourne, Coyne has been fortunate to take an early passion for education – specifically education for young people – and has forged an enviable career in HR with that passion driving change in his company. Coyne commenced his career as a secondary school teacher, taking teaching positions in various technical and high schools across Victoria. Towards the end of that career he developed his own business involving the writing of training materials for businesses. At its core, Coyne’s consultancy was preparing students to move from the world of school into the world of work. “It was an interesting time – the secondary school curriculum was changing very quickly in Victoria and Crown was opening a new casino,” Coyne explains. “In my consultancy I was asked by Crown to come in and run some school-to-work transition programs for long-term unemployed youth. Fifteen years ago, Victoria had very high rates of unemployment and the Kennett government of the

time had a huge expectation that the new employers in hospitality would make a significant impact on that figure. However, they really hadn’t got their head around how young people would be successful within that new environment.” After helming his own training company for several years, Coyne eventually moved into human resource management and has been with Crown for 15 years. He’s also retained that passion for learning.

Crown College In May 2010, Crown Melbourne opened the Crown College, a $10m standalone learning centre catering to the needs of all Crown employees. Coyne believes it “completes the loop”. Three years in the making, Crown College performs a dual function for the company. As Coyne explains, many of the young people who come to work for Crown have had limited success in secondary school, or they have limited direction in terms of what they want to do in their careers. “They often just fall into a job in hospitality. We’re trying to shift their mindset from having a job in hospitality to having a career in hospitality. We believe that careers are built with the basis of having a learning pathway. We are passionate about exploring that www.hcamag.com

PROFILE peter coyne

career pathway with associated formal training towards, and providing formal qualifications within, the Australian Qualifications Framework.” Those learning pathways are crucial to employee retention. Hospitality is notorious for high levels of staff turnover, and Coyne notes that Crown is no exception. Average annual staff turnover is around 20% of the workforce. “We’re relentlessly looking for new people to come in to the organisation,” he says. “That turnover is driven by a range of things. For most young people coming into a shift environment, one where you principally work when other people are playing – that is, through your weekend – it’s enormously challenging. We find that if we can get a new employee through their first 12 months of employment with us they stay much longer within the business.” The overarching aim of Crown College is to replicate the front-of-house experience. From the moment the employee goes into training they are surrounded by an environment that replicates the environment they will eventually work in. Crown has partnered with Swinburne University for its management/supervisory training programs. As Swinburne University is a dual sector (TAFE and university) institution, it can provide a wide range of training solutions. “Employees might start down the Certificate pathway and then step into a Diploma of Business, which can be converted into a degree at Swinburne at some point in the future,” Coyne explains. “They can re-enter the pathway at any time and at any level they are at. We recognise the achievement of prior learning and we keep a close record of who’s done what training.” Coyne believes workplace training and learning is a business imperative, and he adds that he’s fortunate that Crown’s CEO understands this and fully supports it. “You must invest in L&D over time. You can’t believe in it one year and not the next. You can’t cut it as soon as budgets come under pressure or when a new business leader comes in. If you do that, your workforce will lose faith in you. They see this as a partnership – something for them over the longer term – and we must be able to hold the line on that,” he says.

‘A large country town’ More broadly, Coyne concedes that keeping track of HR initiatives in such a diverse organisation has its challenges. While primarily known as a casino, that workforce only makes up one quarter of the total

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PERSONAL FILE

Peter Coyne Age: 55

Family: Three adult sons and a wife of 32 years Favourite sports: Golf and AFL Favourite movie or TV: On the Couch on Monday nights with Gerard Healy and Mike Sheahan Self-described: Driven, resilient and I hope humble Best advice ever received: Always first focus on building the team underneath you Hobbies: Building things – anything to do with wood First job/worst job: Worst job was when I was at university. I worked as a cleaner in a hospital If not in HR: Landscape architect

workforce of 6,500 people. “We have a huge food & beverage division, which ranges from running multiple high-end restaurants through to frontline bars and takeaway food; then there’s the staff involved in the running of three large hotels. There are 1,600 rooms onsite. Then there’s the professional services that operate in a business such as this. We would have around 1,400 people who work in everything from IT to marketing, finance and HR. It’s an extensive professional network behind the frontline workforce,” he explains. To further complicate matters, Crown is a seven days-a-week, 24-hour-a-day business as well. From an HR perspective, the world literally never stops turning. Coyne likens it to being a large country town – with all the issues that a large country town might encounter.

HR at Crown Fortunately, HR’s importance in keeping that world turning is acknowledged by its presence at the executive level. Coyne is one of seven executives who run the Crown Melbourne business, alongside the three operational leaders (head of gaming, head of food & beverage, head of hotels), and the head of finance, head of marketing, and the CEO. “HR is seen as a core discipline within the business. The human element is so crucial to our revenues and profitability. Many of our people are in high touch, customerfacing roles all the time, so they are so important to our successful operation,” Coyne notes. A team of 85 HR professionals work across the property, making for a high ratio of HR specialists and managers to frontline employees.

In his own words… What do you consider to be your greatest career achievement so far? I think the position I hold at Crown. After a long career in teaching, the corporate world was one that was so foreign to me. While 15 years is a fair amount of time, the learning opportunity for me has been wonderful. To lead a business like this from the executive table is quite a privilege. It’s challenging but rewarding and I love every minute of it. What has been the biggest challenge you have faced in your career? The greatest challenges have been around the need to occasionally rebuild teams. I firmly believe that the team that I lead is the group that delivers the success of the HR function. My role is to ensure they are well supported but also that they work with real purpose and harmony. I’m always casting my mind forward over 1–3 years and looking at the capacity of the team I have today to deliver that strategy three years out. Who can go that extra mile now? What talent do I have to bring in to deliver? Who’s performing well today? Who needs encouragement? Who needs the tough word to say you’re not delivering what we need? It’s continual vigilance around the HR team.

PROFILE peter coyne

Recruitment for the company is centralised, and Coyne believes this is critical to keeping the culture consistent throughout the business. “We see ourselves as having one culture around service. To ensure that continues, the first thing we’ll look for in new recruits is fit to business – that is, can we see that person fitting in with our culture or adapting quickly to it,” he says. “A centralised recruitment service that is well disciplined about looking at behavioural types as a match to business is very important.” Coyne adds that the technical skills and competencies can be taught through the college, or informally on the job, but the cultural fit is perhaps the most important element of a successful hire. “Once upon a time, the first thing we looked for in a chef was how well they could prepare beautiful food. Now that’s a given. If they can’t fit to culture first, then we’re not that interested in them,” he comments.

The future Coyne believes the HR profession has changed enormously in the last decade as it’s shifted from

the traditional notion of personnel management into HRM being a strategic partner within businesses. “It’s seen as an influence within the business and a key part of corporate strategy. I don’t think there are many successful companies who don’t see HR in that way today. People have finally got it: the people are your key resource. CEOs believe that too. For many traditional CEOs the workforce was almost a necessary evil in the way you made money. Smart progressive CEOs see the workforce as fundamental to business success,” he says. Finally, and not surprisingly, Coyne wants to see Crown at the forefront of workforce L&D. He would like to establish a reputation and legacy around learning. “For the college opening, we had a range of government and community partners and educational leaders in attendance, and you could see straight away that they got it. They know how serious we are about it, and that shifts our reputation. When most people talk about Crown as an employer now, it centres on our investment in people,” he concludes. HC

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TEAMBUILDER ronan carolan

harmaceutical giant sanofi-aventis is truly a company of the world. With headquarters in Paris and 100,000 employees scattered worldwide, it’s no surprise to learn that the company’s Sydney-based head of HR for Australia/ New Zealand hails from overseas – in Ronan Carolan’s case, Dublin, Ireland. Locally, the company is the fourth largest pharma and employs just over 1,000 people, split across three core business areas: pharmaceuticals; consumer healthcare; and vaccinations (sanofipasteur). Carolan leads HR as a shared service across the company, alongside an HR business partner group that works with the managers of the business arms on generalist HR issues. He also has dedicated teams looking after rem & ben, organisational development (culture & capability), and recruitment. Carolan admits the talent war in the pharma sector has never really dissipated and says it remains “intense”. With many of the multinationals based in the same geographical location in Sydney (North Ryde), Carolan notes that if employees move, they move within the industry. “There’s a risk that if you lose a good manager, that manager will know who

the good people are and they will poach. You need to be managing the cost element, and compete on the remuneration basis, but also not cannibalise the industry as well, so it’s very competitive,” he says. In an industry that thrives on the latest ‘blockbuster’ product, Carolan says the talent pipelines in different organisations will be shorter or longer depending on how hot the product lines and R&D prospects are. However, sanofi-aventis has tried to shift away from this mentality, in order to remain competitive and enticing for employees year round. “Ultimately someone else will always have a blockbuster product,” Carolan says. “That’s where having a good culture makes a big difference. We’ve been working on this for some time now.” Workplace flexibility has been the spearhead for the sanofi culture. “I always say to people that they can get a few thousand dollars more elsewhere, but can they work from home, and can they leave early to pick up the kids from school? If people want to work from home I don’t care what hours they work, I don’t care if they’re at the shopping centre in the middle of the day – just do the work. Ultimately you’re not looking over their shoulder when they’re at their

Vitamins, vaccines and stellar R&R A tight talent market requires innovative thinking. Human Capital talks to one industry leader about a new-look reward & recognition program 52

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Thilo Pulch, www.pulchphotography.com

TEAMBUILDER ronan carolan

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TEAMBUILDER ronan carolan

“Ultimately someone else will always have a blockbuster product. That’s where having a good culture makes a big difference” – Ronan Carolan

desk, so you have to build trust. Most people wake up every morning and want to do the right thing.”

R&R revamped Lately there’s been a new enticement: a totally rejuvenated reward & recognition program. Locally, sanofi-aventis has teamed with Citibank so that every employee is provided with a personalised debit credit card that will be loaded with funds as individuals achieve milestones throughout the year. The debit card is accepted in all shops and businesses that accept credit cards and can also be used to pay bills via Bpay. Within the business, there are a number of categories for reward & recognition, including: Believe; Exceed; Horizon Team Award; Team of The Year Award; Service Awards; and Aspire Referral Bonuses. Carolan says the need for a program overhaul was due to the fact that the company was operating a number of reward & recognition programs, many of which were processed in different ways. “We had Service Awards and they were processed in one way. We had Believe Awards which were done another way. It was quite difficult to pull it all together, calculate the spend, and keep track of what we’d been rewarding and recognising.” Previous reward & recognition programs, such as Exceed, rewarded those who exceeded sales budgets, and used points accumulation which translated into dollar values for employees to go shopping online. “That worked well, but we found that many people were buying gift vouchers and then spending them in shops. I was being precious and thought, ‘you need to buy something that you’ll remember the organisation by’. Then I realised that if people want to spend their reward however they want, just let them. The idea of the debit card was that we could put all our reward & recognition in one spot. We can brand the card, and if the employee gets a reward today, they can spend it now or later, or overseas.” The debit cards were rolled out to all 1,000 employees, with cash loaded onto 250 cards. Apart from Referral Bonuses and other awards, which have set amounts, the Believe Awards are set at $99 – which removes any questions of ‘how much is this activity or behavior worth?’ In all instances the direct

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manager is given the opportunity to congratulate reward recipients and make a fuss in team meetings – so the recognition box is also ticked. “Everything in our reward & recognition program is based around company values,” says Carolan. “Our values are the threshold and they underpin everything. If you’re not demonstrating the values, despite how brilliant your performance may be, you will not get an award.” The criteria for the Horizon Team Award changes every year. In the past it has recognised leaders and high achieving cross-functional teams. In 2010 the criteria is around the team that displays a sense of going ‘above and beyond’ the normal course of duty and has a positive impact on the organisation’s performance. “It’s not just ‘we got 101% of sales’ – it has to be quite different. We’ve awarded eight teams for Q1 and that ranged from teams that have developed initiatives to boost sales in a particular category or area, through to people who have put together information that has supported us through a court case that came out of left field. All of those go into a Team of the Year Award,” says Carolan. So far, Carolan has been buoyed by the employee response to the program. “Usually, you might get one or two people saying, ‘that’s really good’, but for this one there has been a lot of feedback. Anecdotal feedback is positive. The saving in time for HR and admin, and accounts payable and finance is huge.” The final element of the R&R program will be total rewards statements to employees, so the program can be linked with overall remuneration. “The idea is to give people an idea of how much they earn in a particular year. That includes base, target bonuses, and so on. It gets people thinking beyond just pay when they’re looking at remuneration.”

The road ahead Other initiatives that Carolan is proud of include the launch of a global talent management program that had its genesis in Australia, and an outsourced recruitment program that has seen sanofi-aventis partner with Hudson. “I was initially hesitant, as all the feedback related to how many partnerships had not gone well, but this has gone very smoothly. We’ve kept our database and we’ve retained a recruitment manager and three recruitment consultants.” Although the demands of the pharma sector are always changing, Carolan says the big issues facing HR will always be the same. “Managing turnover and so on are all standard, but talent management and building the culture of the organisation are the two key criteria for me. HR must be effective in asking the tough questions and working tightly with the business to ensure the talent management piece is handled correctly,” he concludes. HC

THE BACK PAGE compiled by James Adonis

5 minutes with... Sharon Beaumont – Australian Unity Group executive, human resources

What’s the greatest HR lesson you’ve learned so far? Successfully implementing HR activities comes down to business readiness; not going too far ahead of the business, but fast enough to consistently increase performance. It’s about knowing what the business needs, what is best practice and when is the best time to introduce and implement the initiative into the business. Often, I find it’s about having a vision of what is needed, then planting seeds and waiting for the right time to germinate the idea into an effective HR program. What’s your favourite people-management tip? Spend time talking with your people and listening to them. Everyone is unique and is driven by a wide variety of things. Great managers of people firstly acknowledge this and avoid mass generalisations about what motivates people. This is not about being soft; it’s about being clear on expectations and consistent on feedback as well. This takes a good dose of warmth (empathy) and honesty, as well as courage to have the difficult conversations when needed. What’s the main challenge facing the HR industry right now, and how can this be overcome? Work and organisation design hasn’t changed much over the past few decades; I believe we need to be thinking about a paradigm shift in how we structure work and organisations to better match changes in expectations of the workforce (and their families) and to optimise our workforce productivity in a tightening employment market. Secondly, the challenge is for HR to be able to consistently deliver initiatives that positively impact the performance of the company. To overcome this, embrace diversity and seek out different perspectives to create open conversations about what work design and structures are needed for the future. This requires HR teams and their stakeholders to look beyond tradition and stretch their thinking into the future. Success in execution links back to ensuring that HR activity is commercially driven and that stakeholders are engaged and believe in the program of work.

Quote of the month

“I am reminded how hollow the label of leadership sometimes is and how heroic followership can be” – Warren Bennis

Can you believe it? New research by the British department store Debenhams has revealed women spend an average of 76 minutes getting ready for work on a Monday. By Tuesday, this drops down to 40 minutes. And by Friday, it takes women just 19 minutes.

n One in four Australians eat lunch at their desk; 60% occasionally skip it; and only 4% bring it from home each day Source: McCrindle Research

n A poll of one million Australians found one in six workers identified their manager as the most disliked part of their job Source: Gallup

n Disruption caused by volcanic ash in Europe resulted in 24% of employers allowing staff to work remotely, while 32% allowed staff to take the time as additional leave Source: Badenoch & Clark