Human Capital magazine issue 8.10

HC

WHO OWNS YOUR EMPLOYER BRAND? P.20 » AVOIDING GROUPTHINK P.44 » DIVERSITY AND HIGH PERFORMANCE AT CITI P.40 »

HUMAN CAPITAL MAGAZINE | www.hcamag.com

ISSUE 8.10

Happy &content?

Retention post-GFC

EXPERTTS INSIGH E INSID

Your guide to: Why staff stay / Financial rewards / Recognition programs / Career development IN EVERY ISSUE:

Profile case studies

Best practice examples

The forum

Expert opinion columns

Topical news briefs

EDITORIAL

Eye on the end goal

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ver get the feeling you’re paddling away, hoping to move ahead, only to find you’re back where you started? I get that feeling at the start of every editorial cycle. But, for HR professionals, I get the impression they feel this way more often than is warranted, given all the good work carried out.

Having a conversation recently with a colleague I was struck by how limited people’s knowledge of HR really is. Of course, everyone at some point in their career has encountered HR, but beyond a lot of initial interaction at the recruitment and onboarding stage, they really don’t know what HR does. This colleague even suggested handing over the majority of the HR function to inhouse legal counsel and the rest to recruiters.

Clearly my colleague has never encountered someone like Joanne Allen, the HR professional profiled in this issue. Joanne is changing the culture and ingrained perceptions in her workplace. She’s passionate about diversity and making workplace flexibility viable. Despite her success thus far, she concedes it’s a tough task to shift long-held beliefs: “It’s so important to not just have a single whack of the nail on diversity – it’s about fundamentally changing how we think about diversity and realising that it’s not an HR issue, it’s a business issue.”

Yes, it is a business issue, but it’s up to HR to make it a business issue in the first place; if HR does not, who will?

This is just one example of the difference HR can make. Faced with alarming statistics – for example, a survey by management consultants Hay Group suggested a third of the Australian workforce is looking for greener pastures – it would be a confident CEO who outsourced the HR function to a consultancy at this point in time. For those cynics curious as to why, if HR is doing its job, the stat is so high in the first place, consider how much higher it would be if there was no HR function at all, especially during the GFC. As our story on employee retention reveals, there’s a lot of paddling going on under the smooth surface to ensure companies remain attractive places to work.

Who’s doing the paddling? More often than not, it’s HR. Sometimes it’s upstream paddling, but hopefully it’s paddling with a purpose and an end goal in sight.

EDITOR Iain Hopkins

SALES & MARKETING NATIONAL COMMERCIAL MANAGER Sophie Knight

COPY & FEATURES

SALES MANAGER Sarah Wiseman

EDITORIAL ASSISTANT Clare Costigan

MARKETING EXECUTIVE Kerry Buckley

PRODUCTION EDITOR Carolin Wun

MARKETING COORDINATOR Anna Keane

PRODUCTION EDITOR Moira Daniels

TRAFFIC MANAGER Stacey Rudd

PRODUCTION EDITOR Jennifer Cross CORPORATE ART & PRODUCTION

MANAGING DIRECTOR Mike Shipley

DESIGN MANAGER Jacqui Alexander

CHIEF OPERATING OFFICER George Walmsley

DESIGNER Paul Mansfield

SALES DIRECTOR Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan

CONTRIBUTORS Carroll & O’Dea Lawyers, The Next Step, Chandler Macleod Group

HUMAN RESOURCES MANAGER Julia Bookallil

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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CONTENTS

Inside this issue 24 Discount kings HR professionals are about to have a new form of recognition at their disposal: employee discounts

30 Salary packaging: Changing with the times What advantages does a total remuneration – or salary packaging – approach offer in Australia’s current market conditions? Sema Musson outlines the changing shape of remuneration in Australia

44 Going against the tide

Dr Des Tubridy provides organisational strategies to counteract groupthink

36 12 Cover story: Happy & content?

From a trickle to a stream, suddenly employees are leaving employers in droves. Iain Hopkins looks at how to turn those employee frowns upside down

24 Letters to the editor Do you have a burning HR or people management issue you would like to share with others? If so, Human Capital would like to hear from you. Send through your comments to editor@hcamag.com. Alternatively, express your thoughts on the readers’ forums at www.hcamag.com

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Regulars 4 In Step – HR career experts 6 Legal 8 Workplace advisory & management 10 The Forum

HR Career Experts

SO YOU WANT TO BE A REM DIRECTOR… Rem - Standing the Test of Time HR went into a partial hiatus during the GFC. Salaries were frozen solid, recruitment teams went into hibernation, and carefully compiled Employee Value Proposition documents sat gathering dust in the bottom drawers of HR Directors right around the country. The emphasis was on organisational change, and good old fashioned nuts and bolts HR. The HR recruitment marketplace went quiet too, with one marked exception - the demand for strong remuneration practitioners remained strong throughout. At one point in the course of 2009, the percentage of remuneration roles in the HR marketplace went from its usual mark of about 7-8%, to about 16% at its height. After all, who else was going to work through the complexities of revamping sales commission plans, reducing or freezing base salaries, and preparing the board paper on the payment of Long Term Incentives when the business was going backwards!

Post - GFC, the focus on remuneration and benefits and the demand for high quality remuneration professionals is greater than ever. We asked several senior remuneration executives what was keeping them awake at night, what they look for when they bring people into their teams, and what advice they would give to Remuneration professionals looking to build their careers.

Where to Now? In terms of the key issues facing remuneration teams in the post GFC environment, two clear and consistent themes emerge from the senior remuneration professionals who we spoke to. The first is unsurprising - the ‘war for talent’ has recommenced. According to Greg Kiddle, General Manager of Remuneration & Benefits for Perpetual, this makes the alignment of remuneration practices with the overall business strategy more important than ever. ‘I know it sounds like a cliché,’ he says, ‘but attracting and retaining the best talent is paramount to companies like Perpetual whose success depends on their people’.

The other key emerging issue that Kiddle sees is a greater emphasis on Risk Management. ‘The GFC and regulatory reform that followed has brought greater focus on risk management when developing remuneration policies,’ he says. ‘This has certainly brought the risk and remuneration teams closer’.

Gretchen Henry-May, Head of Executive Reward for Westpac, agrees. She adds that although the emphasis on risk management is greatest within the heavily

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regulated Financial Services industry, the trend is going to spread, according to Henry-May. ‘Some of the risk management practices developed in financial services organisations will increasingly be expected across a broader range of industries, particularly in the Executive Remuneration area.’

21st Century Rem & Ben So what do these trends mean in relation to the skills that remuneration practitioners need to be successful in the future? At the early career level, Kiddle and HenryMay are agreed that it’s still numeric and analytical skills that count. To be successful at a more senior level though, remuneration practitioners need to learn to take in and understand the broader business context around them. ‘Yes, you need be good at numbers’ says Henry-May. Equally critical, however, is developing your competencies in business acumen, consulting skills and risk management. Remuneration is in the papers every other day. Do your research and really understand the current debates.’

Phil Rutgers, General Manager of Remuneration & Reward at Mirvac, agrees, but also believes it’s a responsibility of all remuneration practitioners, regardless of their level, to keep on top of the external market. ‘When recruiting junior candidates I expect them to be able to demonstrate at least some level of awareness of these external issues. For middle level to senior candidates I expect them to articulate what some potential implications of the external developments might be for my organisation. For the most senior roles, they need to be able to demonstrate the ability to successfully manage a diverse group of stakeholders’.

Kiddle agrees, and he stresses the need for remuneration practitioners to develop and tap into external networks. ‘Remuneration trends often start 12 months before they are reported,’ he says, ‘so it’s important to be connected.’

The Final Word Good remuneration professionals have long been in high demand. Increasingly though, the modern remuneration practitioner will be called on to do much more than just ‘crunch the numbers.’ A high level of consulting skills, a broad commercial outlook, and the ability to keep in touch with external trends is now key to success. All this bodes well for the success of the function and will increasingly make Rem & Ben the place to be within the HR Department!

Adam Wilson is a consultant in our permanent recruitment team in the Sydney Office For information call (02)8256 2500 or email awilson@thenextstep.com.au, web site; www.thenextstep.com.au

Recent HR Market Moves supplied by The Next Step

Global property group Jones Lang LaSalle has appointed Bruce Hodgins as Head of HR for Australia. Bruce has extensive experience in senior HR roles for Hewlett Packard, Compaq, Digital and Avco over the last 15 years including HP’s Director of HR, South Pacific and HR Director, Workforce Planning, Asia Pac and Japan.

One of Australia’s leading FMCG companies, George Weston Foods, has appointed Paul Di Michiel as HR Director for its WCI Division.

Paul has recently returned to Australia after holding lead regional and global HR roles for the past 10 years with French telco giant Orange.

Prior to this he held senior local and regional HR roles with Federal Express. Paul has also been working on the organising committee of RU OK since arriving back in Australia.

National engineering firm Brown Consulting has appointed Joanne Hardwick as its National HR Manager. Joanne has a strong background in retail HR having worked with Thomas Retail Group, National Retail Association and most recently as Director of Human Resources at Foot Locker.

Advertising industry pace setter BMF has appointed Katie McGrath as its Australian Head of Human Resources. Prior to her new appointment Katie worked with management consulting firm Bain & Company in a lead HR role for two years. Katie has also worked in the finance, telecommunications and consumer goods sectors in senior HR roles.

Kath Sutherland has commenced with BHP Billiton in the role of Talent & Executive Development Manager. Until recently Kath was with Aviva Australia as Head of Organisational Development.

Derek Wilson has commenced a fixed term assignment at ANZ as Remuneration Review Implementation and Process Design Manager.

Derek was most recently Human Resources Associate with Ford Financial Asia Pacific.

Woolworths has appointed Cassie Soady as National HR Manager for its Liquor Group. Cassie has extensive HR experience with a strong foundation in a range of organisations and industries, before holding senior HR roles such as State HR Mgr with Coles Myer for four years before joining global ports operator, DP World, as Director, Human Resources.

Rhonda Brighton-Hall has been appointed by the Commonwealth Bank to lead HR for its Retail Bank. Prior to joining CBA, Rhonda was VP HR and Communication, Asia Pacific and Africa for Luxottica – the world’s largest eyewear and eye care company – where she developed and delivered the strategies which influence the working environment of 8,500 of the company’s employees in the region. Prior to joining Luxottica, Rhonda worked in the US, Europe, Asia and Wollongong with two major companies, Sara Lee and BHP.

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

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Legal Experts

DISCRIMINATION: THE POTENTIAL FOR ATTACK ON MULTIPLE FRONTS

T

he potential for discrimination claims by employees against their employers is certainly not new; employees have for many years been able to bring such claims against their employers using federal and state anti-discrimination legislation, and unlawful termination protections. However, since 1 July 2009 employees have also been able to commence proceedings against their employers using the new “adverse action” provisions under the Fair Work Act 2009 (Cth). Those provisions are considerably broader than other discrimination provisions, and being teamed with a reverse onus of proof and uncapped potential damages, it would seem that in many respects this type of claim would have greater appeal for employees than traditional avenues for seeking legal redress. Employees who believe they have suffered discrimination in the workplace now have a range of claims available to them, so for employers this means there is potential for legal claims on multiple fronts.

Anti-discrimination laws Federal, state and territory legislation across Australia prohibits discrimination in many areas, including in the workplace. Consideration of that legislation reveals significant overlaps, including between federal and state/territory jurisdictions, but generally prohibits discrimination on the basis of disability, age, race, sex, marital status, pregnancy, family/carers’ responsibilities, and sexual orientation.

For an employee to establish that they have been discriminated against in the workplace, they need to prove that they have suffered direct or indirect discrimination in the course of their employment.

Direct discrimination occurs where a person who has a particular characteristic or belongs to a particular group of people is treated less favourably than someone who does not have that characteristic or does not belong to that group. For example, if a construction company promoted a male employee instead of a female employee on the basis that the company’s clients would prefer to deal with a man, that action would constitute direct discrimination on the basis of gender.

Indirect discrimination occurs where a requirement, condition or practice is imposed and one who has a particular characteristic or belongs to a particular group cannot or could not comply with the requirement or condition, which results in that person being treated less favourably. For example, if a bank introduced a policy whereby no one was allowed to work

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part-time, that may constitute indirect discrimination of employees with family/carers’ responsibilities.

The onus of proving that there has been direct or indirect discrimination rests with the person making the complaint. This can of course prove very difficult, as employers generally do not voluntarily admit they have engaged in discriminatory conduct and there may be no witnesses to corroborate the complaints of discrimination.

Discrimination under the Fair Work Act Under the Fair Work Act employers are prohibited from taking “adverse action” against a person who is an employee, or a prospective employee of the employer, because of the person’s race, colour, sex, sexual preference, age, physical or mental disability, marital status, family or carer’s responsibilities, pregnancy, religion, political opinion, national extraction or social origin. N.B. exceptions do apply.

Adverse action is taken against an employee if the employer: dismisses the employee; injures the employee in his or her employment; alters the position of the employee to their prejudice; or discriminates between the employee and other employees of the employer. On a similar note, adverse action is taken by a prospective employer against a prospective employee if the employer: refuses to employ the employee; or discriminates against the employee in the terms or conditions employment is offered to the prospective employee.

Significantly, there is a reverse onus of proof for such claims. This means that where an employee alleges that they have been the subject of prohibited adverse action by their employer, it is presumed that the action was taken for that reason or with that intent unless the employer proves otherwise.

At this stage there do not appear to be any judgments in which claims using the new adverse action provisions have been successful. The use of this legal avenue in the future for discrimination claims may well depend on how the Courts interpret this legislation as well as the orders that are ultimately made in successful applications. Accordingly, employers should continue to be mindful of their legal obligations to ensure that they do not discriminate against their employees, or prospective employees, and thereby expose themselves to legal claims. www.codea.com.au

Claire Bateman Associate Carroll & O’Dea Lawyers Level 18 St James Centre 111 Elizabeth Street Sydney NSW 2000

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Workforce Advisory & Management Evolving your Workforce

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TALENT MANAGEMENT POST-GFC

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he world of talent management has changed.

The global financial crisis has had a profound effect on businesses across the developed world, not only in the preparedness of organisations to invest in their talent, but also in the way they go about it.

For Australia, this effect has been noted despite a relatively buoyant response to the global economic downturn. A change in both the business landscape and the expectations of the talent being developed has necessitated a shift in approach to talent management.

This article is an extraction from a white paper that aims to provide additional perspective for those tasked with structuring and executing a successful talent management program within the new business arena.

Talent management became a hot topic following the seminal Mckinsey ‘War for Talent’ paper in 1997.

Since that time, many organisations have come around to the idea of purposefully and systematically investing in the growth of their internal talent.

Organisations have also had varying levels of success in this endeavour. The key messages during this period have been consistent: • Growing your own leaders rather than buying in talent makes long-term sense • Purposeful talent management enhances performance and accelerates fiscal returns to the business • Strong talent management attracts the best people to your organisation • Strong talent management helps to retain the best people However, despite the compelling arguments, and some prominent successes, often organisations continue to struggle with the most effective approach, and more commonly, the execution. Before looking at the additional complexities that the ‘post-GFC’ business landscape provides, it is worth considering the more prevalent and perennial issues which appear to be ongoing challenges: • Limited commitment from senior leaders to drive and support the program • Challenges in managing talent initiatives • Reduced talent management focus through tougher fiscal periods • Over-emphasis upon structuring and strategising rather than doing • Over-emphasis upon assessing talent • Misaligned development initiatives

• Focus on ‘keeping participants happy’ as a measure of success

What has changed for organisations post-GFC? Three key changes discussed in the paper include: • Speed to competence • ‘Due diligence’ on senior leader appointments • Return on investment

What has changed for individuals post-GFC? When pressure on organisations increased during the GFC, talent management took a back seat, as did the development opportunities for many individuals. In some instances, the level of de-prioritisation meant that talent management as a business process lost credibility. Ever enhancing technology, coupled with ever increasing performance requirements, has led to greater expectations from an organisation’s anointed ‘talent’.

In addition, more and more leaders have had experience of various organisations’ talent management programs. Some have become weary and sceptical of promises or claims. Others with positive experiences have increasingly challenging expectations from the program. For individuals facing increased pressure to perform, the talent management system chosen needs to continually improve.

What does this mean for HR? Sceptical participants and high expectations of talent management programs add more and more pressure on HR to deliver results. The increasing needs of organisations along with a post-GFC level of nerves around people investment mean that HR is required to achieve more, under greater scrutiny, in less time with fewer resources.

The full paper is available from craig.mccallum@chandlemacleod.com

www.chandlermacleod.com

Michael Evans, partner Julian Tatton, principal consultant Chandler Macleod Consulting

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THE FORUM employee feedback

Seen and

heard

It used to be that employees were seen and not heard – not so anymore. Accredited best employers pride themselves on creating open cultures where employees have a voice. Human Capital talks to four experts about how they encourage staff to voice their opinions

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THE FORUM employee feedback

Tip 1 Use employee engagement surveys as a guide

Tip 3 Use formal and informal knowledge sharing methods

By Lindall West, head of people and performance, Asia, Westpac Institutional Bank

By Roy Hammett, people and performance manager, Altis Consulting

At Westpac, an important part of the employee calendar is when all staff participate in the Staff Perspectives Survey. This offers specific and formal feedback on how we are doing from the perspective of our employees. Last year, we had a participation rate of 87% in Asia, which means our employees value the opportunity and feel that their feedback is acted upon.

Last year, we also included a cultural diagnostic tool, allowing us to understand the current culture of the organisation as well as the desired culture from our employees’ perspective. We had good alignment between the current and desired culture.

The key measurement is our Employee Engagement result, embedded in every people manager’s performance scorecard. The result has an impact on each staff member’s bonus payment at year-end. Westpac Asia scored 80%, 5% higher than in 2008 and only 1% behind the average for global high-performing companies.

Off the back of the results, we also run focus groups to test our various programs and tools.

We have a major focus on knowledge sharing, which is both informal and formal. One aspect is sharing client information. Every six weeks we hold a skills sharing session where an individual in the business will do a presentation and we’ll get as many people as possible to attend.

They often talk about experiences – their experience of X client and when we attempted to do Y we got this result. It gives other members of the team ideas on how they can use that experience in their own environment. We also have a very sophisticated knowledge sharing technical forum and our knowledge database.

We have a very lively and widely-used technical forum, which allows individual team members, regardless of what project they’re on, to post questions rather than grappling with technical problems by themselves for hours or days on end. It’s a form of virtual teaming.

Tip 2 Use online portals and forums

“If you don’t provide staff with appropriate avenues to express their views, it can lead to gossiping or an environment where employees feel frustrated and ineffectual” – Leow Yuen Fong

Tip 4 Open CEO doors for real communication channels with employees

By Anshuman Ray, director HR, Synopsys Inc

By Leow Yuen Fong, senior VP, Human Capital Management, NETS

At Synopsys, we encourage employees to reach out to the senior leadership team and communicate their views, opinions, questions and suggestions through the Exec-Connect Portal. The questions, along with answers from leaders, are published online and all employees can access this.

Another avenue where staff can ask questions and offer suggestions to the CEO, COO and other senior executives is during the annual ‘Kick-Off’ ceremony.

There is a live webcast across all regions and one can get instant responses from senior executives as well.

HR also facilitates the Global Employee Survey.

Participation levels and a summary of responses are both published through the company intranet.

Action planning, based on this feedback, is then pursued diligently – with the results of that action also published.

The outcome of our efforts is an open, participative, inclusive and productive culture that is reflected by very good employee engagement scores (measured against internal and external benchmarks).

At NETS, we believe there needs to be open and regular communication between management and staff. If you don’t provide staff with avenues to express their views, this can lead to gossiping or, worse, an environment where employees feel frustrated and ineffectual.

Our annual Employee Engagement Survey allows staff to share their views anonymously without fear of recrimination. This year, 94% of our staff have responded to the survey.

We also run an annual staff forum, where leaders share company directions and business goals with employees. Throughout the year, we conduct closeddoor sessions with management which allow staff to seek clarification on sensitive issues or be updated on current business issues.

Small groups of employees are also invited to dialogue sessions with our CEO. We believe these activities have created an open culture at NETS where employees can voice their opinions and, more importantly, know their opinions count. HC

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COVER STORY employee retention

Happy & content?

From a trickle to a stream, suddenly employees are leaving employers in droves.

Iain Hopkins looks at what employers can do to re-engage and retain the best talent

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hat makes a person come to work and keep coming day in, day out? It’s a question many people asked during the GFC when working hours increased, discretionary spend was slashed and leadership vision was reduced to ‘what’s happening this week?’

Now, with the job market more buoyant, those murmurs from workers (‘why am I doing this?’) are becoming raised voices (‘I’m getting out of here’).

Despite the fact that it never really went away, suddenly employee retention is back on the agenda.

So what does make people come to work, and has this changed at all since the GFC? According to Rosemarie Dentesano, talent management practice leader at Right Management, the fundamentals have not changed. “If you’re able to provide someone with a meaningful job – a job that stretches them and provides them with a sense of contribution – and they are adequately rewarded for that with competitive pay, and then you provide a sense

of direction and solid leadership, you will get engagement,” she says.

However, she also concedes that employer confidence took a battering in the last 18 months and many organisations are emerging from the storm unsure of what they do well. Many companies are revisiting their EVP. “It’s not always about being paid the highest quartile salary; you may in fact be paid the lowest quartile salary. However, there are other benefits of working for an organisation.

What is it you offer employees, and what is it they give back to the organisation? This is under scrutiny. Quite often the brand going to market is not reflected internally, so there’s a question of congruence between those two messages.”

Two central retention themes emerging are career development and redeployment. Dentesano says both are “easy ways to build engagement” but are not handled well in many organisations. “The key is to provide people with the skills to understand their career drivers, to understand what they’re good at, and what their career aspirations are. Then assess how that can be seen in a positive light to keep a person in the organisation rather than having them move elsewhere. It’s that career conversation which is so critical,” she says.

A ‘new era’ employment contract These skills feed into a ‘megatrend’ in employee/ employer relations, which is the ability to drive individual choice. Employees expect to be able to drive (or at least tailor) their career paths, their L&D

COVER STORY employee retention

“It’s the forward-thinking organisation that creates the right climate for a motivated employee who sees their career aligned to a purpose bigger than themselves” – Pia Lee

strategy, even the way in which they are rewarded.

“It’s about individuals taking accountability for their destiny,” confirms Dentesano. “Yes, as a leader or employer, I can provide systems and processes and conversations – but the employee must buy into it and then both parties must take accountability.”

Dentesano cites her own career experience at a telecoms company several years ago: “The CEO said to me ‘I can’t promise you a job for life, but I promise you skills and employability for life’. That was a big paradigm shift for that organisation, from ‘I’m going to be here for the rest of my life’ to ‘I’m going to build skill and capability throughout my career’. You actually get a lot of loyalty back when you have that positivity and collaboration.”

Dr Tim Baker, managing director of WINNERS AT WORK, says the employee-employer contract has changed radically in recent years. The traditional mindset placed the corporation at the centre of our very existence. Employees who were loyal to the employer were rewarded by reciprocal loyalty. The traditional employment relationship was based on a belief that if employees worked hard they were promoted, received the gold watch and retired comfortably. www.hcamag.com

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80 70 60 50 40 30 20 10 0

COVER STORY employee retention

Rank, in order of importance, what you believe are the three main reasons employees stay with your organisation 19% Our company reputation/ employer brand

16% Career paths, opportunities & succession planning

1st main reason

14% Our company reputation/ employer brand

15% Competitive salary/ remuneration

2nd main reason

13% Our company reputation/ employer brand

11% Flexible working conditions

3rd main reason

Source: The Randstad 2010 World of Work Report, based on a survey of more than 3,000 HR professionals, business managers and CEOs across the Asia-Pacific region

“Many companies actually offer more than they think, so it really comes down to communication” – Tiffany Quinlan Baker notes it has taken more than 50 years, two generations in the workforce and two major financial crises before both parties decided the traditional employee-employer relationship was not working.

A different set of values are needed to ensure an engaged, productive workforce – and central to that is self-driven career paths.

“Career management in the 21st century is a different ball game to that of the 20th century which was characterised by the paternalistic employeremployee relationship. In the 21st century, the unwritten employment contract no longer assumes security for employees or loyalty to employers.”

Baker maintains that an employee now needs to be the primary driver of his or her career and an employer needs to provide the infrastructure for success – it’s become “an integrated partnership”.

Employees are primarily responsible for their careers, but organisations have an important, albeit, different role to play – one that is more collaborative then paternalistic. In practical terms, Baker says there are several things that organisations can do to retain staff with a focus on career management:

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• Promote a sense of ownership for career management among employees by providing self-assessment tools to create career insight to help employees effectively navigate their careers. These tools may be personality profiles, diagnostics and career information.

• Shift the employee mindset from a focus on vertical progression to a more fluid vision of career success based on learning and development and cross-functional orientation.

• Equip managers with tools to support employees’ career development by providing training in career coaching skills. Managers should be held accountable and rewarded for supporting internal mobility and employee development.

• Support meaningful career growth in a flattening organisation chart through project-based work, mentoring and skills coaching.

• Obtain senior management support for all of these initiatives.

“Sophisticated talent management, succession planning and leadership development systems are commonplace but largely geared to managers. Yet

COVER STORY employee retention

leaders often struggle to delineate, apply, integrate and measure career management schemes across the organisation-at-large,” says Baker.

Selling the perks With discretionary spending slashed during the GFC, it’s possible that many organisations are stuck between watching budgets closely and knowing they must do something to keep employees onboard.

Tiffany Quinlan, HR strategic business partner at Randstad, recommends employers take a close look at what they already have on offer. “Many companies actually offer more than they think, so it really comes down to communication,” she says. “For example, many companies have Friday night drinks; they’ve had them forever, yet employees may not see that as a benefit and the company is not selling that. It becomes ‘same old, same old’. It’s the same for really robust L&D programs – if you don’t promote them, people take them for granted.”

Indeed, Jamie Anderson, senior consultant with Mastertek, says it’s time for a shake-up of how the remuneration and benefits components of a company’s EVP are being communicated.

Anderson says current practice tends to focus on the generic components of the reward offering, rather than applying employeespecific values. Personalising these communications may hold the key to successfully driving the employee engagement and retention which underpins these philosophies.

“Research and developments in the marketing field demonstrate that personalised and very targeted communication and leveraging technology to ensure the process is efficient, ultimately delivers a greater ROI than the more traditional blanket promotional approaches,” he says.

“Maximising relevance and ensuring absolute clarity about what is on offer invariably leads to a greater absorption of the message by the target audience – which in turn leads to significantly better outcomes.”

From the HR perspective, the concept of adding personal information to the messages already developed as part of an organisation’s EVP is www.hcamag.com

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Case study: True engagement of coffee. It’s not pretty behind the store. We wanted to change that, so now there’s space for people to have lunch together, they can play on Wii together, play table tennis.

We wanted something for the community – that’s unique in retail.

That was the first component of it, alongside a much greater focus on how the customer felt when they came into the store.

In July, Luxottica launched its ‘future of retail’ flagship store in Melbourne. Gathering together the best ideas and initiatives from Luxottica employees for creating the store, the project has been a valuable engagement exercise.

While ‘employee co-creation’ may not be groundbreaking, it’s unusual to have HR driving the initiative.

In this case, Rhonda BrightonHall, senior vice-president, HR & communications at Luxottica, acted as project leader. Human Capital talks to her about the experience.

Human Capital: What does this project mean for employees and customers?

Rhonda Brighton-Hall: We wanted to change the shopping experience – how would customers feel, and how would the employees work differently together. We looked at simple things. For instance, in most retail environments there’s a space in the back to put your handbag and maybe make a cup

HC: How did you engage your employees with the idea?

RBH: There were three quite distinct components to this project: the creative component, the design project team component, and then actually bringing it to life. We took a research approach to it, using all the ideas from various employee forums and workshops. We did focus group after focus group.

Some ideas were rejected, others were embraced. Then we got our best people together – the best marketer, the best product person, the best real estate person – and we said ‘let’s build this’.

HC: Is this something for your employees to aspire to?

RBH: Employee engagement in a store like this will be fantastic, especially as employees will feel so connected to everything. We did five days of orientation for our group of 25 staff members working in the store. We included these people because they’re collaborative, they’re generous, and they could give us real examples of where they’d made great connectivity to a customer.

We have a fundamental belief that people and culture drive performance. If you treat people right, they’ll treat your customers well, and your business will work well.

“We’ve got a fundamental belief that people and culture drives performance. If you treat people right, they’ll treat your customers well, and your business will work well” – Rhonda Brighton-Hall

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something Mastertek refers to as Total Value Communication (TVC).

The TVC approach can take a number of forms: from the more straightforward ‘statement’ type approach coinciding with the annual remuneration review, to the more complete ‘benefits report’ containing personalised superannuation projections, long-term incentive valuations and other employee-specific details that demonstrate a projected future value as well as current state.

In addition to personal remuneration and benefits information, Anderson says that considering the look and feel of communication material can be just as important. “Of course it’s important to reflect the organisation’s brand and corporate image – but beyond that, simply tailoring the style to suit discrete populations within your organisation can again lead to improved acceptance, and ultimately understanding, of the messages you’re trying to get across,” he says.

Reminding employees of the true value of their employment package, particularly those benefits that easily slip from view such as insurances and health benefits which may be paid for by the employer, can go some way to restoring employee engagement.

In addition the inclusion of non-cash benefits available to employees, such as flexible hours, L&D opportunities or health and wellbeing programs also round out the offering and remind employees of the true investment being made in them.

Leaders and engagement Every expert that HC contacted mentioned the importance of leaders in engaging and retaining talent. “Leaders who can communicate the vision and implement the vision can really drive engagement,” says Dentesano. “During the GFC, we saw many organisations drop the vision and move into day-today survival mode. As an employee you want to see the strategic planning and the vision and know that the organisation has a plan to move forward.”

This goes to a wider theme of finding meaning through work. The biggest myth in business is that salary drives performance and productivity. Zilch, a book by Nancy Lublin, proposes that companies broaden their rewards and their understanding of compensation so that people become deeply motivated to excel. This is a strategy that Pia Lee, CEO of LIW3, endorses strongly. “A key message that Lublin brings from the not-for-profit sector is that these organisations have a clear purpose that is shared by its employees,” she says.

Does this imply that purpose is the sole domain of organisations with an altruistic philosophy? Not so,

COVER STORY employee retention

says Lee. Seminal research conducted by Professors Jim Collins and Jerry Porras in Good to Great and Built to Last testifies to this.

“High-performing organisations have a unique blend of core purpose and values as well as the ‘and’ factor of being able to endlessly adapt their strategy and direction to a changing landscape. This rich combination provides meaning for individuals beyond making money which in turn unlocks discretionary effort,” says Lee. She adds that it’s a courageous organisation that asks not just what are they trying to achieve but ‘why’? “It’s also an evolved organisation that asks what its legacy will be,” she says. “It’s the forwardthinking organisation that creates the right climate for a motivated employee who sees their career aligned to a purpose bigger than themselves.”

A word of warning: Don’t fall into the trap of seeing this as a marketing opportunity – an organisation’s purpose cannot be window-dressing.

Lee says that while it is a powerful motivator it is also a “perishable good” and can very easily be destroyed by misaligned behaviour. She cites BP and its recent environmental catastrophe as an

Which of the following employee benefits does your organisation (of any size) offer to retain employees?

Flexible working options

67%

Training & development opportunities

67%

Competitive salary/remuneration

57%

Internal career opportunities/career paths

56%

Leadership/management development opportunities

50%

Reward & recognition program

47%

Paid parental leave

45%

Health & wellbeing program

43%

Corporate social responsibility/environmental initiatives

35%

Supporting employees’ personal interests

27%

Career breaks/sabbaticals

23%

Above-statutory superannuation contributions

19%

Subsidised childcare/site childcare centre

7%

Other

5%

None

3%

Source: The Randstad 2010 World of Work Report, based on a survey of more than 3,000 HR professionals, business managers and CEOs across the Asia-Pacific region

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COVER STORY employee retention

Case study: Retaining ‘grey nomads’ and upgrades on some 3,000 retail ad signs around the country, who came back with a solution. He suggested that if the company purchased a semi-trailer, converted it to be livable and included a workshop, he’d consider staying … and combine his love of travel with his work.

Human Capital talks to Cook about how it came to be.

Outdoor advertising business, oOh!media, has recently taken an ‘out there’ approach to employee retention. Faced with key staff member Dirk Bosman about to retire, and realising the cost, time and risk of finding someone new with his skills and experience was about to become a very serious issue, oOh!media CEO Brendon Cook adopted a collaborative approach to the problem. He asked employees for their ideas on how to retain people. It was Dirk, whose role entailed maintenance

Human Capital: How important was it to hold onto someone like Dirk Bosman who obviously holds a lot of experience?

Brendon Cook: One of my views is that people need experience to help them think through the various issues and challenges that every business faces. I also think it’s healthy for every business to have a wide variety of aged skills sets.

One of the keys to any business is how you transfer real data, not so much formal training but the real knowledge of the business. By having good retention rates you’re getting people who have got five, eight, 10 years of experience who are still relatively young, but they’ve learnt a lot.

example. Lee ponders who would say that BP stands for ‘Beyond Petroleum’ now? (This question, posted on Twitter, came up with ‘Broken Pipe’, ‘Be Prepared’ and even ‘Bastards Playing’, among others.)

On the other hand, some organisations keep their purpose close to hand. Johnson & Johnson, for example – whose credo, written in 1943, embodies purpose as well as values – can weather storms by walking the talk. “J&J is applying the credo in decision making around its current Tylenol recall woes and we just know that they will come out the other side with their reputation intact and their customers and employees engaged,” Lee says.

This level of engagement is more than a ‘nice to have’; Lee says it’s essential, especially as Generation Y and their successors will not put up with a toxic workplace. In short, they expect more. “They want to work in organisations that have a clear sense of why they exist and will choose them because they are aligned with that purpose. It’s in these conditions that people give not just the most, they also give their best,” she says.

Final tips When it comes to retention, there are two other important considerations. Firstly, some staff

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HC: How did you react when you heard Dirk’s idea?

BC: When he presented it, we thought, ‘that’s radical!’ Then we went through it over and over until it became clear that we needed to spend money to make some money. Along the way we also managed to extend Dirk’s enjoyment of his job by three or four more years.

The trade-off here was fantastic. It was one of those concepts where it was incredibly difficult to find a flaw in it financially, emotionally or any other responsible way you wish to look at it.

HC: It sounds like it was a truly collaborative effort between you and Dirk.

BC: And the finance team, and other partners in our development team. I really involved a lot of people in it because I thought if we got complete buy in, they’d understand the value. Eventually all 105 employees Australia-wide saw the truck, sat in it, and heard the story. It really has promoted creative thinking. It’s done more than we ever envisaged in building a spirit and culture in the business.

turnover is healthy. Although this will vary depending on industry, Dentesano says 10–15% annual staff turnover is considered healthy.

Secondly, it’s important to know when to draw the line, to let people go. “You need to be able to put your hand on your heart and say, ‘I’ve done everything I can for this person, and fundamentally what they’re looking for, I can’t provide’. Then you need to make sure they exit in a very humane way,” says Quinlan.

However, even an exit should not be a wasted opportunity, especially if it’s someone who has been a good, consistent employee and they’re suddenly disengaged. Clearly, something has shifted.

Randstad recommends ‘stay’ interviews at the end of week one, then three, six and 12 months into the employee lifecycle. Engagement surveys add another level of knowledge and another opportunity for employees to voice what’s being done well and what is not.

Finally, Quinlan urges employers not to lose sight of what was learnt during the GFC. “We’ve been able to achieve some amazing results just by being a bit creative and innovative,” she says. “Once you’re in that cycle you can become an employer of choice – and ultimately that’s what we all want to be.” HC

“Leaders who can communicate the vision and implement the vision can really drive engagement” – Rosemarie Dentesano

LEADERSHIP INSIGHT

4 REASONS HR WON’T HELP RETAIN RISING TALENT

J

ust as a pre-cursor before reading this, I should explain that I am not an HR professional, nor do I profess to be an expert in human resources matters. My background is in sales, marketing and general management. I’ve run sales & marketing teams and worked in companies ranging from five to 3,500 people. I am what you would class as stereotypical Generation Y, having worked in five companies (including two major listed corporations) over my 12-year career to date. I guess I am also what you would class as a ‘high performer’, having never missed a revenue or profit target. I am always willing to go above and beyond the stated requirements of my role and am always keen to share ideas and get passionate about helping my employer to deliver its products and services more effectively.

My passion for business has allowed me to seek and find increased salaries and responsibilities with each job move. It never ceases to amaze me how many companies are willing to give you the opportunity to make more money, take on more responsibility and greater challenges, despite my employers at the time telling me further development would take several years. Interestingly, once I handed in my resignation, my employer was suddenly much more open and willing to offer me the increased salary, responsibility and career development I had been asking for all along; unfortunately, by that time it was already too late!

It’s with this background that I was asked by a colleague at Leadership Success to provide some input as to how HR could better enable the business to retain its rising stars. In return I offered up four reasons why, despite the best of intentions, this probably won’t happen: • Visibility – Especially in large companies, my interactions with HR were limited to the following: interview, induction, assistance with performance management/staff issues, restructures, redundancies and my exit interview.

As a high performer, I was never subject to performance management personally, which meant HR had no opportunity during the course of my employment to impact my decision to stay or go. All

leadership

success

of those conversations were between me and my line managers.

• Business credibility – One of the biggest issues I have always felt with HR representatives is the lack of strong commercial acumen. I noted that few could answer a question like ‘what is our company’s competitive advantage?’

Now, some may believe deep down that it’s not a HR responsibility to know such things. But my personal opinion has always been that if you don’t understand what my team and I do, then how can you offer advice on how we can develop?

• Perspective – I would often be surprised by HR’s ability to paint the picture of the company as the perfect world. Why? Because I observed that HR’s daily interactions mainly took place at the senior level and when talking to the masses, HR was often seen as the conveyer of only the positive messages from the CEO and not in-tune with what it was really like to work in the business. This one-sided approach made me lack belief that HR would understand problems with the working environment and lobby the senior executive to make positive changes.

• Trust – Sadly, over the years I have learned not to give HR an honest representation of how I am feeling and the major issues I am facing. Why? Because my comments would inevitably find their way back to my direct manager.

Until HR can address these issues, in my opinion, they will have little influence on whether the rising stars stay or go. This influence is in the hands of line managers, which in my experience is dangerous.

Managers will almost always serve their own interests first and focus on the here and now.

If only I could have had an open, honest (and confidential) conversation with someone from HR who understood me and my goals; put a development program in place and made my manager accountable for ensuring the program was followed through, I would have changed jobs far less often!

Anthony Nash Director 02 9089 8609 Level 26 44 Market Street Sydney NSW 2000 ABN: 20142987297 p: (02) 9089 8609 f: (02) 9089 8677 M: 0420596532 e: anthony@lstraining.com.au w: www.lstraining.com.au www.hcamag.com

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FEATURE employer branding

1. Forget about traditional notions of ownership Bree Mitchelson, principal sourcing strategist at The Strategist Group, says that companies will always own their brand – including images and trademarks – in the legal sense. However, where it matters – in the brand value – Web 3.0 and social networking has taken the balance of influence away from the company to the employee, the candidate, and the general public. “The spread of brand perception, good and bad, through these mediums is much faster and far-reaching than ever before,” she says.

Mitchelson adds that the process is largely the same as historical word of mouth – in particular the old maxim that positive feedback is rarely spread but people will tell five others of a bad experience. Today, in 140 characters, you can tell potentially thousands through your Twitter follower base, LinkedIn connections and Facebook friends, likely through one API (application programming interface) service that integrates and updates all the networks in a matter of seconds.

On the plus side, Mitchelson says, it can be a powerful, real-time market research and feedback survey waiting to happen for organisations receptive to engaging with these mediums, to maintain influence over their brand and respond to the feedback. “To own and control a brand going forward will be about an organisation’s ability to engage with their audience and align what the organisation does and says with public experience and perception.

Transparency is a must!” she says.

Brett Minchington, chairman and CEO of Employer Brand International, adds that ownership is

usually about control and power – this is where Web 3.0 and social networking present a major issue for companies. Minchington advises that success in this arena requires a focus on short-term goals, as well as on long-term goals such as brand building. This is in conflict with strategies which are usually focused on short-term goals. “Brands evolve over time and your employer brand is shaped by the interactions between your key internal and external stakeholders which make up your community,” he says.

Candidates, employees, customers, suppliers and investors all contribute to how your company is perceived as a place to work.

2. Think long term It’s evident that the demand/supply relationship in the employment market has flipped in favour of the employee once again. Mitchelson notes that where once the employee had to ‘market’ themselves, now it’s the employers that must put some shine on their resume equivalent – the employer brand, also commonly referred to as Employer Value Proposition (EVP) – to compete.

How to do this? Mitchelson suggests starting in the same way that the marketers, and a growing field of proactive sourcing professionals, would: that is, with sound market research from which to develop strategy and brand. “Be creative in approaches to sourcing talent and the various mediums available to communicate, build and engage with talent communities, then continuously measure and review results,” she says.

How the strategy is viewed and developed will also generally resolve issues of ownership. “If you think

Branching out: Web 3.0 branding When it comes to employer branding, HR are often advised to think like marketers.

However, in an age of Web 3.0 and social networking, is this advice outmoded?

Does anyone actually ‘own’ a brand today? Human Capital asks two experts for their views, and presents a four-point guide to employer branding in a Web 3.0 world

FEATURE employer branding

“Control in the workplace is becoming an unwinnable race – collaborate or die!”

– Brett Minchington

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FEATURE employer branding

HR owns the employer brand, you will take a narrow focus; if you think your community owns the brand you will develop strategy that looks at the bigger picture where contribution of stakeholders becomes more important than ownership,” Minchington says.

However, Minchington adds a word of caution about utilising the services of external recruiters, who may not be familiar with the company culture and who may be driven by sales-focused shortterm goals, rather than long-term goals such as developing and nurturing rich talent communities.

While it’s highly unlikely that HR teams would consider putting the development and management of the brand into the hands of external recruiters, the brand has many touchpoints, and recruiters are often ‘brand ambassadors’. How they present the brand to the external market is a key consideration.

“With a focus on short-term goals, what you then see are messages being crafted and broadcasted to the masses which are not authentic or reflective of the employer brand. Unfortunately this approach gets noticed and impacts not only on the recruiter but also the company they work for,” Minchington says.

3. Let the brand ‘breathe’ This ‘bigger picture’ view must also include input from candidates, employees, ex-employees, analysts, and scores of other people who can now shape how the brand is viewed by the world. It does raise a

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question, however. Is this a disturbing development for those looking to keep their brand close to their chest? A brand, by definition, is intended to engage with an individual, whether it be to motivate a purchase and brand loyalty, or a career move and employee loyalty, known as employee retention.

Mitchelson feels it’s only a disturbing trend for those who don’t understand the mediums or have reason to be uncomfortable with a degree of transparency that is required by social networking’s interactive nature. Statistics from consumer brand research back this up: one word-of-mouth conversation has the impact of 200 TV ads (BuzzAgent); social network users are three times more likely to trust peer opinions over advertising when making purchase decisions (JupiterResearch); 87% of consumers trust a friend’s recommendation over a review by a critic (Marketing Sherpa).

Mitchelson says the same principals apply to the employer brand. Evidence shows that individuals who are becoming more savvy and resistant to advertising messages prefer the reality they get through social media feedback – where a tolerable negative can add positive weight to a brand.

“Individuals know that no job is perfect, but if they can get a balanced view of an employer and the reality of a job it can work in the employer’s favour.

It holds companies accountable to being true to the messages they present to their audience. At the end of the day, it’s still about being perceived as more appealing than the competition, not as being ‘perfect’,” says Mitchelson.

Minchington believes that in today’s hyperconnected world, technology has driven a paradigm shift where authenticity, engagement and relevancy are now at the forefront of how people perceive products, the employment experience and investor attractiveness. “An employer brand strategy which provides clarity to all levels – where employees on the frontline are empowered to make decisions that best fit the situation at hand and leaders at the top focus on understanding trends and evolving the strategy – is one which will result in a building a culture that shapes a brand that is aligned with your long-term strategic objectives. Unless managers let their employer brand ‘breathe’ rather than trying to control it, we are likely to see disengagement, stagnation and costly turnover become the norm.

Control in the workplace is becoming an unwinnable race – collaborate or die!” he says.

4. Balance the tools with the strategy In many ways, technology is driving this race. Brand creators are using the same mentality that they use on their personal brands. Earlier this year, Facebook

FEATURE employer branding

“To own and control a brand going forward will be about an organisation’s ability to engage with their audience and align what the organisation does and says with public experience and perception. Transparency is a must!”

– Bree Mitchelson launched its ‘Community Page’, a mix of Wikipedia content and posted content from across the web to create a ‘profile’ of brands, places and organisations.

As Minchington points out, tools are evolving at a much greater rate than the strategy that supports them. “Social media giants such as Facebook are still trying to work it out as well,” he says. “It’s a constant evolution and it’s only going to get faster. We’re operating at the edge of chaos in Web 3.0 and the most effective strategies will evolve over time.”

Minchington believes the problem lies with companies becoming fixated on measuring ROI – but this mentality is at odds with how social media is most effective. “I like to call it community media because social media is supposed to be social!” he says. “Make no mistake, companies have rushed into social media and are trying to use the tools which support it to increase revenue, margins and growth

whether the focus is on products or talent. Most of the time there is no strategy to support it.”

However, when it comes to brand management, organisations at least need to be monitoring any place their brand is. In targeting audiences for the purpose of recruitment, Mitchelson says market research and understanding how your audience wants to interact with you is key. For example, users may go to Facebook’s Community Page to ‘research’ a potential employer, but as a general rule individuals want Facebook to be a personal, social tool, where LinkedIn is a more acceptable tool to be communicating and engaging with individuals regarding career opportunities.

“Employer brand-strategy value is driven through sound market research and planned campaign management, targeted appropriately for audience profile, with measured results,” she concludes. HC

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FEATURE recognition programs

t n u o c s i D s g n i k HR professionals are about to have a new form of recognition at their disposal: employee discounts.

Human Capital provides some tips for setting up a powerful recognition program

W

e’ve all heard of the power that a simple ‘thank you’ can wield. And while they have their place, reward strategies (incentives, bonuses, targets, commissions) are often formalised and structured, and even expected in the sense that they are often contractual or in return for a sale or target being achieved – which the employee is aware of and uses as an incentive to achieve goals.

The power of recognition, however, is often its ‘unexpectedness’. The lack of pre-set conditions means that recognition can act as a powerful motivator for employees. However, many organisations do not value the power of recognition, even in the simplest form. In the recognition field, long-service and ‘employee of the month’ (or similar) awards are common, yet these are also expected.

“The scope to include more of the workforce more of the time in a recognition program is underexploited by employers,” says Chris Barton, country manager at Asperity.

Busting the myths Two myths in particular – that such programs are too complicated or too expensive to set up and run –

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appear to be the underlying reasons for this underuse by employers.

Barton counters that recognition systems need not be complicated if the right technology solutions are used. A streamlined process for nominations, approval, redemption and reporting, which is made easy for all, is the key. A close link in time between the nomination and the recipient choosing the award – and the ability to choose an award they want – is also important.

As for financial outlay, Trevor Barkway, managing director at Synchro, acknowledges that if a ROI case cannot be developed (that is, measurable financial and behavioural returns), the reward and recognition program should not be introduced. Depending on the key objectives and associated KPIs of the program, ROI can be substantiated by increased productivity, reduced absenteeism, improved staff retention, stronger employee engagement, better customer service … and many other measures of success.

“In other words, the program ‘pays for itself’ and should be considered an investment in building a business, not a cost of doing business,” he says.

FEATURE recognition programs

Facts & stats n Aberdeen Group Inc has found that companies with a strong commitment to enterprise strategy and reward programs generate a shareholder return which is almost 40% higher than comparable companies without such initiatives n The latest research from FORUM has shown that companies with high levels of employee engagement … improved their operating income by 19.2% … while companies with low levels of engagement saw their operating income decline by 32.7% over a 12-month period n According to The Gallup Organisation, over 69% of workers surveyed indicated that non-monetary forms of recognition provide the best motivation n KPMG reported in their ‘People First’ program – which is directed at the performance management, recognition and rewarding of their staff – that the ‘pay-off’ was a fall in staff turnover of 3.6% – creating a saving of between $3m and $5m per annum n International Society of Performance Improvement has shown that effectively designed and properly implemented incentive programs increase individual performance by an average of 22%. Team incentives can increase performance by as much as 44% To read the complete articles from which these facts & stats have been drawn visit www.synchro.com.au www.hcamag.com

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FEATURE recognition programs

A key to a successful recognition scheme is knowing who gets what and being clear on what values to recognise

Investment must be made in the ‘right’ processes, communications and reporting, including highlighting employee achievements – to motivate the ‘right’ behaviours and create the desired outcomes. Barkway notes that every well-managed company should be investing in these activities anyway – the reward and recognition simply becomes the end product of this investment, along with many other organisational benefits. As such, the actual value of the ‘carrot’ can be less if the motivation and communication practices are in place to genuinely recognise ‘above and beyond’ discretionary effort.

“Importantly, if employee recognition is highly visible, valued and presented by a suitable senior manager/leader it is the presentation event that creates the motivation, not the value of the recognition item. Experience shows that more frequent, lower-value rewards motivate more effectively than infrequent, high-value reward structures,” he says.

Barton agrees that very low-cost awards can have really high value. “High-cost awards are also very valuable, but it’s in the area of low-cost recognition that most organisations are failing to leverage an advantage,” he says. “The most obvious low – or make that no – cost recognition is a verbal ‘thank you very much’, especially powerful from the employee’s manager’s manager and heard by a few colleagues.

A company ‘thank you’ or ‘well done’ card, used thoughtfully – and not just to tick a box – is another good tool.”

Moving up slightly, a tiny budget makes available a wide range of awards which are much appreciated. Barton suggests an award to buy

a magazine of the employee’s choice from the newsagent next door, two cinema tickets, a plant to reward exceptional customer service – all made available on the recognition platform.

“In terms of budget percentages, many organisations run excellent recognition schemes, which include ‘big ticket’ awards such as weekends away and company-sponsored events for .002% of the payroll,” says Barton. “Much less than this would finance a highly credible scheme with smaller awards, so it’s easy to see how a tiny amount of money can be harnessed to make a real difference.”

Getting the basics right A key to a successful recognition scheme is knowing who gets what and being clear on what values to recognise. Transparency is crucial to a recognition scheme. There needs to be clear information about what recognition is designed to reward (more than just the day job) and how the process is implemented. A good recognition platform will have in-built guidance on what to recognise and at what level, distilled from the employer’s values and requirements and the type of behaviours the recognition scheme is designed to encourage. It should be configured to allow both peer and manager nominations, and for recipients to be advised, choose and receive their award in the same day.

Barkway stresses that it’s critically important that the program is demonstrably and frequently perceived to be valued by senior management. The KPIs must be relevant, and the rewards aspirational and reflective of the effort demonstrated to achieve the required performance targets or standards. Communications should be personalised and engaging.

In addition, Barkway says that recognition programs should complement equitable and competitive compensation plans, and should not be used to make up the ‘shortfall’ in poor pay and remuneration practices.

Emerging trends New forms of recognition and employee benefits, such as employee discounts, have been gaining traction in the US and UK over the past five years.

With pay and benefits being a sticky area for most international organisations (what is widely seen as the norm in one nation may be viewed as an extravagant perk in another), global organisations are understandably keen to introduce a perk that can be offered to employees across the board.

“We don’t need to understand consumer theory to know that the world over, people like a bargain,” says Barton. “Everyone needs to shop, and therefore

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FEATURE recognition programs

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everybody can potentially save money through their corporate employee discounts scheme and engage with their wider benefits package and the employer brand. The range of retailers can be vast, offering something for literally everybody.”

Instead of a messy points system which can often be regarded as not worth the effort for the minimal return, Asperity’s discounts scheme enables employees to earn Cashback – which is genuine money that can be withdrawn at any time straight into their bank account (or by cheque if they wish).

Many retailers with an eCommerce facility offer Cashback when an employee makes a purchase through the discount scheme. This means the retailer gives back a percentage of the total spend, or a fixed amount depending on the product. Electronic tracking enables this to be automatically calculated and credited to the employee’s Cashback account soon after the purchase is made. So, if an employee spends $100 with a retailer offering 10% Cashback, $10 will be credited to their online account which sits within the employee discount website. Another retailer may offer $85 Cashback on all mobile phone contracts, which means that whatever the cost of the purchase, $85 will be credited to their account. Cashback is awarded on total spend with a store, which means that any sales, discounts and promotions that the retailer is offering outside of the scheme can still be taken advantage of.

To ensure employees are aware of the true value of the benefit, each employee has their own online account for their discount website. The homepage displays their favourite categories and retailers together with their current Cashback balance, a record of all their transactions through the site, any vouchers they have ordered and so on.

“It’s important that the employee knows how much they are saving before, during and after

FEATURE recognition programs they’ve made a purchase – so wherever possible, they’re reminded of the savings made. Their account statement also tells them how much money they have accumulated in their Cashback account since they started using the scheme, so the financial value to the individual employee is made clear and reminds them of the benefit their employer is providing,” Barton explains.

Keep it fresh Recognition programs are notoriously set up with passion and launched into the workforce with great fanfare ... only to flounder six months later when everyone loses interest.

“Keeping a program ‘fresh’ is not about changing it every quarter,” says Barkway. “It’s about getting the fundamentals right. It needs to be transparent, relevant and employees need to feel empowered to engage meaningfully in the program. [The] celebration of success needs to be part of the company culture – reinforced by program communications and opportunities to be recognised.”

Ensuring the program is scalable and flexible – so that tactical initiatives can be introduced within the overarching mechanics of the program – also

ensures that it remains fresh and relevant to senior management and employees alike. The program’s infrastructure can be used to shape behaviour and focus in both the short and longer term – thus again keeping it fresh and compelling for all concerned.

Employee discount programs are no exception to these rules, although Barton notes that a few additional precautions can be taken to keep a discount program fresh. He recommends having a dedicated team to ensure that retailer offers are kept up to date, that requests for participating retailers are answered, and that negotiations are made to ensure the best possible offers are made with retailers on behalf of employees.

Innovations based on Web 2.0 technology, such as the ability for employees to fully personalise their homepage so that they only see the retailers and categories that matter most to them, keeps the program fresh, simple, interesting and – most importantly – relevant to the employee.

“Communication techniques are another way to keep the program leading-edge. On-site video user guides, email newsletters, intranet web banners, and competitions etc, are all ways to keep employees interested and engaged with the scheme,” Barton concludes. HC

Ensuring the program is scalable and flexible ensures it remains fresh and relevant to senior management and employees

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FINANCIAL REWARD salary packaging

h t i w g n Changi What advantages does a total remuneration – or salary packaging – approach offer in Australia’s current market conditions?

Sema Musson outlines the changing shape of remuneration in Australia

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T

he past three years have seen major legislative changes that have impacted the way in which organisations approach salary packaging. It seems this trend is set to continue, with the Henry Tax Review recommending a principle that all income from works should be taxed consistently, including salaries, fringe benefits and employer superannuation contributions.

Although many of the Henry recommendations were not adopted in the last federal budget, it is expected they may shape the future direction of benefits, with potential further decreases in tax advantages achieved via salary packaging.

It is now timely to ask whether the concept of salary packaging is dead. While approaching death for the delivery of tax benefits, this article highlights the remaining value as a reward tool.

What is it?

Salary packaging, flexible benefits, flexible packaging, total remuneration and employment cost have been popular in Australia since the 1990s.

There is often confusion by employees and employers over what these different terms mean.

Basically, all terms are usually referring to a process of valuing all fixed remuneration items in a package and providing a total value.

Benefits included in a package can range from company cars to additional leave, but over time many companies have generally limited package items

to those that provide a tax benefit to employees.

However, in recent years, tax benefits have been declining due to legislation and budget changes.

Events that have shaped our approach to remuneration The structure and approach to remuneration today has been influenced by a number of labour market pressures and legislative changes over the past 30 years. After the mounting pressure on wages in the 1970s, 1986 saw the introduction of the Fringe Benefits Tax (FBT), which was introduced to stop tax avoidance, as people were choosing to have their salary paid in fringe benefits to avoid paying income tax. This resulted in a decline in benefits and a growth in cash-based remuneration.

In the 1990s we saw a shift from base salary plus benefits to a total remuneration approach, with 1992 seeing the Superannuation Guarantee Charge initiated. Defined contribution superannuation started to replace defined benefit superannuation arrangements, shifting the investment risk from the employer to the employee. This also improved portability of superannuation and facilitated its inclusion in total remuneration.

More recently, in 2008 the tax benefits associated with salary sacrificing laptops and PDAs were removed overnight, and it was compulsory that superannuation be calculated on ordinary time earnings – a wider definition which meant super contributions must be paid on items such as performance bonuses, commissions and shift

s e m i t e th loadings. This year, the Henry Tax Review has provided a number of recommendations which will further impact attitudes toward salary packaging: in particular, the previously-mentioned principle that all income from work should be taxed consistently.

The government is yet to comment on Henry’s recommended FBT changes to motor vehicles and has rejected recommendations to remove FBT benefits provided to not-for-profits.

Despite the related Henry Tax Review recommendations not being adopted to date, it is possible that the decline in tax-free benefits will continue, given that Henry’s principles and recommendations are likely to shape future tax reform over the medium to long term.

Over time, the tax advantages in providing benefits have been removed or decreased and there has also been a decline in benefits offered to employees. Looking at remuneration today, it is not uncommon to see a package that consists solely of cash, superannuation and associated insurance benefits and, occasionally, cars. And while employees may be provided with items to support their role, such as mobiles and laptops, these are usually considered as work-related benefits and are provided outside of the remuneration package.

The role of salary packaging post-GFC There is no doubt that organisations believe that we are on the other side of the GFC, and in this

Table 1: A total remuneration approach Common objectives of total remuneration

Relevance in today’s market

Employee communication

Less relevant when remuneration packages simply contain cash and superannuation.

Medium where organisations can create a differentiated employment offer

Employee flexibility

Low

Employee access to taxeffective benefits

Less relevant due to decreased marginal tax rates and a small list of FBT-exempt benefits

Market comparison

Less relevant as remuneration packages move towards simply containing cash and superannuation

Cost management

High

FINANCIAL REWARD salary packaging

5 minutes with… Danny Wilson, director, nlc Human Capital talks to Danny Wilson of novated leasing and salary packaging specialists, nlc, about the current state of novated leasing in Australia Human Capital: How does an employer stand to benefit by offering a novated lease?

Danny Wilson: A novated lease is an agreement between an employee and their employer whereby the employer makes payments for a leased car from the employee’s salary, providing the employee with significant tax savings.

There are a number of benefits for employers, including shifting vehicle liability to the employee, the removal of company-provided vehicles from the balance sheet, and the reduction in salary base for the calculation of on-costs such as payroll tax and work cover.

According to the Mercer Benefits Review in 2009, over 85% of companies offer some form of vehicle benefit to their staff, so if your business doesn’t offer novated leases, you really are behind your competition in the attraction and retention of highquality talent.

HC: How does fringe benefits tax (FBT) work for vehicles?

DW: FBT is payable on most types of non-cash or employee benefits.

FBT on vehicles is generally based on the vehicle’s cost price and the distance it travels each year.

Using more sophisticated packaging models (such as the Employee Contribution Method), a tax benefit can be provided to most employees regardless of how much they earn or how far

they drive. The idea that you have to drive long distances or earn an executive salary to benefit from a novated lease is a myth!

HC: What impact – if any – has legislative change and the Henry Tax Review had on novated leasing?

DW: The Henry review recommended that a flat 20% rate replace the current FBT formula (which changes depending on the kilometres travelled), which would make novated leases much simpler for employers to manage.

At this stage, however, the government has not responded to this aspect of the Henry review.

HC: Are there any major trends in novated leasing?

DW: We’re seeing four key trends: • Businesses extending the novated lease benefit to a greater proportion of employees (some by including novated leases in EBA negotiations) • Increased interest in insurance products that protect employees’ lease obligations in situations of involuntary termination • Higher take-up of products that reduce the carbon footprint of employees’ vehicles • Businesses are increasingly recognising that using the same supplier for operating leases and novated leases can result in subpar employee outcomes • Specialist novated lease providers like nlc have the purpose-built payroll interfaces, reporting and dedicated customer service teams needed to properly support the low maintenance provision of novated leases to staff

If your business doesn’t offer novated leases, you really are behind your competition in the attraction and retention of high-quality talent

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environment there are a number of trends shaping the approach to reward and remuneration.

In Mercer’s Market Issues Survey conducted earlier this year, the companies surveyed said they have a more positive outlook, and fewer are expecting the economic environment to become worse. Similarly, more organisations are expecting to spend more on their human resource budgets.

However, HR budgets are not rebounding back to pre-GFC levels with most still quite selective in what and whom they invest in. This includes remuneration budgets and reward arrangements for individuals.

Additionally, more organisations are hiring than are letting staff go, which has resulted in a tightening labour market and re-ignition of the war for talent.

With that, the two issues that continue to dominate the HR agenda are employee engagement and selective rebuilding of reward budgets.

A major challenge for employers is meeting expectations of employees who made sacrifices in the downturn and are now expecting salary increases to compensate, but HR budgets have not yet caught up.

To address this, it is important for employers to understand their workforce and tailor reward approaches accordingly. This requires organisations to review their reward offer and to communicate with and engage employees about the deal based on the workforce segments. The challenge is making a limited reward budget go a long way, so differentiating is essential. This is where benefits packages come into play.

The base salary plus benefits approach?

In this post-GFC environment, organisations need simply to ask ‘should we go back to a base salary plus benefits approach?’

In addressing this question we need to examine what advantages a total remuneration – or salary packaging – approach offers in Australia’s current market conditions.

Table 1 (on page 31) lists the five common objectives of a total remuneration approach and their relevance in today’s market.

As you can see, the advantages of total remuneration have shifted since its dominance in the 1990s. It no longer offers a great deal of employee flexibility or access to tax-effective benefits due to decreased marginal tax rates and a declining list of FBT-exempt benefits.

However, cost management remains the biggest advantage of a total remuneration approach.

Companies that use a total remuneration approach are in a position to more easily pass on increased remuneration costs to employees, because a total

FINANCIAL REWARD salary packaging

Table 2: Total rewards framework Remuneration Benefits Base pay Guaranteed ‘bonuses’ Short-term incentives Long-term incentives Financial allowances Financial recognition programs Deferred remuneration

Development & career

Performance management Career opportunity and pathing Tuition reimbursement Mobility opportunities

Superannuation Savings and other wealth creation programs Medical/dental insurance Life insurance Short and long-term disability Accident coverage Motor vehicles

Work lifestyle

Wellness programs Dependent care Workplace flexibility Commuter programs Workplace facilities and benefits Experiential rewards Non-financial and status recognition awards

package figure is communicated to employees and benefits such as superannuation are then subtracted from the package, and cash salary is simply the remainder.

With recent legislative changes providing that superannuation be applied on ordinary time earnings, many organisations using a total remuneration approach will choose to pass on

increased superannuation costs to employees by reducing their cash salary. Organisations may also consider this approach to manage the proposed superannuation guarantee increase to 12%.

Although it may not be ideal to reduce an employee’s salary, total remuneration does provide organisations with a choice to offset or share costs with employees, when it may not be affordable for the company to increase its salary costs.

A total rewards approach to provide competitive advantage With Australia emerging strongly from the GFC, many organisations are re-focusing on how to attract and retain key talent.

Mercer’s Benefits Outside the Square research in 2008 found that 80% of working Australians see benefits as an important consideration when joining a company. Nearly one-third regard them as very, or extremely, important. Yet only 55% of employers believe benefits programs contribute to the attraction and retention of key talent.

HR professionals should be looking at their total reward offering and asking if employee programs

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FINANCIAL REWARD salary packaging

Super engagement: Employee Benefits Report AMP has partnered with employers by designing an Employee Benefits Report (EBR) to help engage corporate superannuation partners and improve financial literacy.

The personalised EBR helps employees to better understand all the benefits offered by their employer, with a section – known as the Member Benefits Report – dedicated to their superannuation.

The EBR can be branded with the employer’s logo, imagery and corporate colours. For employers with a well-established mechanism for communicating employee benefits, the Member Benefits Report can be supplied on its own, providing members with tailored information on their superannuation at no cost to them or their employer. It provides a snapshot of the member’s personal details including salary, balance, contributions, insurances and beneficiaries. It also provides the member with a projection of their lump sum at retirement.

Human Capital talks to Brian Zanker, head of business development at AMP Corporate Superannuation, about the EBR. Human Capital: Why has AMP invested in the EBR? Brian Zanker: One of the biggest challenges in the superannuation industry for members of super funds is financial literacy. We found we could actually achieve two things in one communication.

Firstly, it allows an employer to concisely put their employee benefit message across, which is really the EVP or why people would want to work there.

Secondly, it allows employees to access their superannuation details in an easy-to-understand, easy-to-follow financial document.

HC: Do you think superannuation is undervalued as an employee benefit?

BZ: We think superannuation has become less of an employee

benefit and more of a right over time, as the Superannuation Guarantee Contribution [SGC] has increased and various things have happened in the industry.

We can actually use this approach to leverage it back up to being a part of the EVP again.

HC: What’s included in the report?

BZ: Part one of the report lists all the employee benefits offered by the employer – from car leasing to parental leave, through to gym membership and all the benefits on offer. Part two describes the employee’s superannuation benefit. Most of the reports that super organisations send out are legalistic, wordy, bland.

We’ve lifted beyond that to provide specific messages that are tied to individual circumstances.

We embed their own benefits, their own salary, their own investment profile, beneficiaries, etc.

HC: AMP is also aiming to raise financial literacy amongst Australian workers. Why? BZ: With the current federal government talking about putting financial literacy on the school curriculum and in setting up a Financial Literacy Board, I’d say Australia recognises that this is an issue.

Any little thing that service providers can do to lift that awareness dovetails nicely into the responsibility that an employer has to their staff – particularly when they’re investing quite heavily in their retirement funds.

HC: How does HR get involved with this?

BZ: We’re doing it this year as a Member Benefit Report, which initially won’t include the employee benefits section. It will be seen as a financial education piece for all members of our employer superannuation funds.

We’re trying to encourage as many employers as we possibly can to join us and embed their own employee benefits in the report.

and benefits should be provided to employees. The benefit they provide through attraction, retention and motivation of employees may far outweigh the financial cost of these programs.

When examining reward programs, employers should consider a total rewards framework.

(See Table 2 on page 33.)

Employee benefits and programs can not only be used to attract and retain key staff but are also effective in providing a message to employees about what the organisation values. For example, financial education is a benefit that organisations have been quick to discard in the past.

However, providing financial education can enhance financial literacy of employees and support wealth creation. Whilst this is highly valued by the older workforce population planning for retirement, this may be overlooked as part of a strategy involving a younger employee.

Back to basics The concept of flexible salary packaging to achieve taxation benefits may be all but dead, but that doesn’t mean that benefits can’t be used to create a differentiated employment offer and help to manage the cost of benefits. With each strategy, always keep the basics in mind: • A total remuneration approach is still important to assist in managing employee remuneration and benefit costs • Rewards should be aligned to the business strategy, workforce requirements and ideals of the organisation • Focus on a few key employee benefits and programs and do them well • Benefits do not need to be flexible.

Consider making them mandatory if they align with your organisation’s philosophy, are valued by employees and can provide a competitive advantage. HC About the author Sema Musson is a principal in Mercer’s Human Capital business

HR INSIGHT leighton contractors

Evolution, revolution Leighton Contractors has seen more change in the last five years than it has in the previous 25.

Human Capital asks how the company has weathered the storm

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T

he GFC presented a crash course for business leaders on how to be flexible while remaining dynamic and innovative. This is easier said than done – unless you’ve been through it all before. Leighton Contractors has been undertaking significant culture change over the past five years, slowly shifting long-held values and behaviours in order to remain viable. Mick Duffy, organisation development manager, corporate services at Leighton Contractors, likens the process to the Queen Mary moving full steam ahead down a charted set course; changing direction takes time and skill.

For Leighton Contractors, the need to change was recognised following disappointing financial results in 2003/04. There was clear recognition from managing director Peter McMorrow and the executive team that the business needed to transform and specifically to diversify the markets in which it operated. Leighton Contractors was known primarily as a construction business specialising in large infrastructure and building works ($50m-plus).

The diversification path took the company to new levels with the acquisition of HWE Mining in 2006

(with 2,000 additional staff), supplementing previous major investments in the telco sector via operational arms Visionstream and Nextgen Networks, the focus on emerging markets in oil & gas, water management and alternative energy, and further investment in toll roads. This gave the company five dedicated business streams, with three regarded as well-established businesses and the other two as maturing businesses. This strategy has been encapsulated in the slogan ‘Leighton Contractors – More than you’d imagine’.

HR challenges While the integration of existing entities into Leighton Contractors and the diversification into new areas naturally placed major pressure on the HR function, the company had other serious underlying human capital issues. “The organisation had operated almost as a series of fiefdoms with little corporate overlay and most employees were engaged on a project-to-project basis without any dedicated career paths,” says Duffy. To complicate matters, the resources sector, which now represents about 40%

not of the Leighton business, is notorious for high levels of staff turnover. In 2007, the turnover was close to 35%. Duffy says the pressure of working on remote sites, on a fly in/fly out basis, sometimes working 10 days straight with four days off, takes its toll on individuals, especially those with families.

“While the rewards are good, turnover remains an issue for us. The notion we’re putting out there is that you can come to Leighton and have a career, not just a job. We’re trying to also say that there are opportunities for people to move across traditional boundaries and look for new opportunities in the emerging businesses, for example.”

Compounding the problem was the fact that until 2005, Leighton did not have a dedicated central HR function. A personnel and payroll team focused on transactional issues only and the line HR work was largely undertaken by project managers with support in some cases from IR managers. The corporate HR team was set up in 2005, with Duffy as the first ever OD manager.

“The biggest challenge was establishing HR as a value-add to the business, not only from a

HR INSIGHT leighton contractors

strategic perspective but also operationally. All of the operating businesses now have dedicated HR managers and other professional staff – for example, training managers. We have a small corporate team with the objective of establishing consistent standards and governance across the business where it makes sense to do so,” he says.

Building values and behaviours An immediate challenge from an organisational change perspective was the transformation of Leighton from a well entrenched ‘command & control’ culture to a values-based organisation.

“Construction and mining traditionally relied on command & control,” Duffy says. “But we wanted an organisation where people could be trusted to get on with the job, and the values and behaviours have brought that to life. The notion we’ve put to the business is that high performance is not just about results but also about behaviour. The desired behaviours are anchored in our values.”

However, just getting everyone on the same opening page proved difficult. When Duffy facilitated a workshop in September 2005 where the values were first articulated by the then Leighton leadership team of 22 senior leaders, he notes it was “like pulling teeth” to get them to agree on a common set of words that represented the ‘shared values’ of the business. “We got there after some solid debate,” he adds.

From there, a values session was incorporated into various leadership development programs by asking participants to specify behaviour that they had witnessed that supported (and did not support) the values. This data was collated over a 12-month period and again workshopped at the 2007 Leadership Summit (with 140 leaders from across the business). The supporting behaviour statements were developed from that session.

All of this is incorporated into the organisation’s leadership model. Duffy says the aim is to get Leighton leaders to look, feel and behave the same, whether they work in construction, mining, telco or elsewhere, and have set the standards for this via values-based behaviour.

Each leader is supported by common systems which impart a replicable set of events that deliver a consistent outcome. These systems include a common position description template, a standard performance & development review, standard induction, succession planning/talent management, employment contracts, remuneration packaging and leadership principles (there are 12).

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The aim is to get Leighton leaders to look, feel and behave the same, whether they work in construction, mining, telco or elsewhere “We want leaders to be using common systems and common language and we need them to have a very clear understanding of what the organisation expects from them as both a leader and a leader once removed [that is, a manager of managers]. Role clarity is the basis of everything we do and by this we mean that every single person in the company must have a clear understanding of what is expected of them in their job and how their performance is going to be measured.”

All change initiatives encounter naysayers; Leighton was no exception. Duffy encountered doubters, specifically from some senior managers who were used to running their own patch without what they perceived as corporate interference.

“There were some pockets of resistance as I had to shut down a number of existing training provider relationships that had been in place for some time.

This was not easy but the quality of the corporate leadership development offerings eventually held sway and it was a classic push/pull outcome.”

Aiming for high performance The take-up rate for leadership development programs has been encouraging, while simplified internal mobility procedures and an internal job board have helped with retention as employees are provided with a direct line of sight to their next career step. A series of training opportunities is also offered via an online learning system. The turnover rate has since dropped to 13% – well below the industry standard.

However, Duffy says the company is still some way off from being able to claim to have a true ‘high performance’ culture. “I don’t think we’re quite there yet,” he says.

Instead, he is keen to widen the definition of ‘performance’ by spreading the notion that

HR INSIGHT leighton contractors

project if we’d had a brace of injured workers or, worse still, killed someone? Or if we’d destroyed part of the environment – let fuel drift into the local river system? The answer is no. Anything x zero is worthless. It’s not just what you do but how you do it that really matters,” he says.

Work in progress

‘performance = results x behaviour’. In short, this means looking beyond the traditional measure of success – financial results – to how things are done. He cites as an example a typical road construction job. “Say that project produced a fantastic financial return for the company. Would that have been regarded as a high performance

Duffy believes that the corporate culture at Leighton has changed but the process remains “evolutionary not revolutionary”.

“Leighton is a large organisation that has grown significantly in the space of five years, from 3,000 to 10,000 employees. That in itself brings about cultural change,” he says. “Some of the 30-year veterans here have told me that Leighton has changed more in the last five years than it did in the previous 25. We have an organisation that is now able to offer people a career, not just a job, and coupled with potential opportunities in our sister organisations in the Middle East and Asia I believe we have significant competitive advantage as a preferred employer – especially for young professionals.” HC

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PROFILE joanne allen

Boomerang employee This month’s profiled HR professional has a passion for diversity and has an overarching goal to create an inclusive workplace. Iain Hopkins talks to Joanne Allen

D

uring her original nine-year tenure with Citibank, Joanne Allen worked across a number of continents and in various HR roles. Although she loved the company, changed life circumstances – including the birth of two children – prompted her to re-think her career. She ventured into new territory by setting up her own consulting, coaching and facilitation business. After several successful years, she received a phone call out of the blue: it was her former boss at Citi asking if she would like to return to the company.

The hook was that she would be able to return with flexible work arrangements.

“The great part of running your own business is that you work the hours you want. I hadn’t worked in HR in Australia for 10 years, but that flexible work hook was too hard to pass up,” she says.

Road to HR Allen left school dreaming of a career as a pharmacist. However, following work experience

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in a pharmacy she quickly revised her career goal.

“I’ve always had a real interest in science and an interest in people so I thought pharmacy might be a good solution,” she says. “During my university degree I happened to choose psychology in my first year and just loved it. As my career has progressed, I’ve realised I have a real passion for understanding human behaviour.”

Allen notes that there was no such thing as a degree in HR at that time – “the options were either IR or psychology”. Allen chose the psych path. “I wanted to work in psychology but didn’t want to become a clinical psychologist. I thought HR would be a good area to try,” she says.

Kick-starting her HR career in a training role in local government, Allen returned to study to complete a Masters in Psychology and then went backpacking overseas for a year. On her return to Australia she worked in HR for a law firm. Allen lists this as her most “challenging” job. “I was working with 70-odd partners who all made it very clear that

PROFILE joanne allen

PERSONAL FILE

Joanne Allen Age: 41

Family: Husband, two young boys, aged five and three Favourite sports: I played netball, I like watching AFL – although I hope no one asks me questions about it!

Favourite movie or TV: Steel Magnolias – with a box of tissues. It’s an amazing story about amazing, strong women and their relationships and life. It’s also got a great cast. I could watch that again and again Self-described: Professional, responsible, ethical, human, approachable, open, an ideas person, a ‘finisher’ – when I start something I must finish it

Thilo Pulch, www.pulchphotography.com

Hobbies: Pilates, food, family stuff, going to the beach First job/worst job: Worst job was definitely working in HR in a law firm If not in HR: Running a small business – possibly a consulting business but also perhaps a retail business for Australian designers, for fashion or interior design

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PROFILE joanne allen

they were your boss and they paid your salary. The thing I found most challenging was trying to build a culture of fairness and equity,” she explains.

A move to London resulted in Allen landing a three-month contract with Citibank. The three months turned into six months, and then permanent status. Over the following nine years Allen worked in Europe, moved to Hong Kong, had two sons, returned to Australia and set up her own business consultancy. Then came that call…

Refocusing HR Back in harness at Citi in the role of head of human resources for Citi Australia and New Zealand, it quickly became apparent to Allen that the HR function would benefit from a streamlined focus. She set about writing a strategy incorporating a mission and vision statement for HR. The mission statement was to build an inclusive workplace, while the vision was to have all employees engaged.

In the past, Citi focused on employee satisfaction, but as Allen points out, a whole organisation of satisfied people does not necessarily equate to an impact on the bottom line. “Employees can be very satisfied, happy doing the things they should be doing, but it doesn’t necessarily mean they’re going above and beyond,” she says.

Allen and the executive team have adopted a five-pillar HR strategy: 1. Develop leadership capability 2. Actively manage the talent pipeline, with particular focus on high performers 3. Promote and support diversity 4. Strengthen the comp & benefits platform 5. Deliver operational excellence While Allen cares deeply about all five pillars, it’s numbers two and three that really fire her enthusiasm. Diversity goals are now part of all business leaders’ scorecards, and a program is run for emerging talent in Citi’s female population to give them the skills to be more confident and visible in what has traditionally been a male-dominated industry. Citi is also active in educating women at school age about careers in finance, and removing some of those perceptions about ‘jobs for boys’.

A paid parental leave program has recently been extended to 16 weeks, which places Citi in the top ranks of investment banks. In addition, for those on extended parental leave there is a range of support initiatives, including a dedicated intranet site and a

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“It’s so important to not just have a single whack of the nail on diversity – it’s about fundamentally changing how we think about diversity and realising that it’s not an HR issue, it’s a business issue” – Joanne Allen

buddy program for those going off to and returning from parental leave. Flexible working hours are also offered, which Allen herself uses.

“I’ve done a deal with my husband. I come in usually at around 7.15am. My husband does breakfast with the kids, does the lunches, and drops them at kindy. Then I try to leave work at a reasonable hour every day to be home for them,” Allen says.

For Allen, offering flexible work arrangements is a no-brainer. “Australia has a pretty small workforce.

We want to make sure we’re getting the best talent out there and then ensuring the culture makes them welcome,” she says.

However, she concedes that the culture shift required to allow flexibility to take flight is not easy.

“Just ‘saying’ it doesn’t make it happen. That’s why it’s so important to not just have a single whack of the nail on diversity – it’s about fundamentally changing how we think about diversity and realising that it’s not an HR issue, it’s a business issue,” she says.

Igniting high performers Allen and her team are engaging with high performers in a new way. Every March/April the management team looks holistically across the organisation for any high potential employees, anyone they would define as ‘promotable’, and anyone who could be regarded as a ‘critical resource’.

The key is to communicate to those who have been selected as high potential. “This is not something we’ve handled very well in the past,” says Allen. “We now have a communication plan involving the manager having that conversation – and of course that raises lots of questions for those not designated high potential, such as ‘Why haven’t I been selected?’ The communication plan involves the manager having really meaningful conversations around that.”

Secondly, a program called Ignite aims to fasttrack high performers. Each participant is assigned a development advisor, who works with the participant to craft an individual development program. This involves picking and choosing from the core programs, as well as looking at elective options.

Allen finds it’s a significant motivator not just for those taking part, but also for those who haven’t been identified. “Often there’s an element of ‘I want a piece of that action, how do I become part of it?’ This is not a member of a club for life, it’s for one year only, and at the end of each Q1 we do a complete refresh.”

PROFILE joanne allen

2010 and beyond Citi was fortunate during the GFC in that it did not lose many employees locally, and has in fact filled nearly 250 roles (some are replacement roles) this year. Allen was also heartened that the company kept its leadership development programs on track during the tough times. “Citi differentiates itself that way. People come here to learn and consolidate and develop and stretch. Sometimes they get poached.

Interestingly, they often come back. I call myself a Citi boomerang,” she laughs..

As for the future, Allen will continue to position HR as an indispensible business function. She believes the future of the profession relies on it having “a commercial bent”. She says, “you can present the number of people who went to training last year, but what does that mean? We must continue to push ourselves into that more commercial direction, as well as develop ways of reporting on outcomes rather than just quantitative stats”. HC

In her own words…

What do you consider to be your greatest career achievement so far?

Rather than providing a specific example, I think it’s been my ability to apply relationship building skills and commercial acumen across three continents. I joined Citi in London and worked in Western Europe. Then I moved to Asia and worked effectively there, which is not always easy given the cultural differences. Now back here in Australia things are progressing well.

What has been the biggest challenge you have faced in your career?

Immersing myself into an organisation where I didn’t really understand much of the business. When I first joined Citi I had no knowledge of finance, banking or European law. In a very short space of time I put myself in a position where I could learn. One thing I used to do with all the travel time involved was plant myself next to one of the business managers I was travelling with and then ask them a whole series of questions. I would ask, What’s a basis point? What’s liquidity? What’s a liability? What’s an asset? – I was very green!

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EXPERT INSIGHT groupthink

G

roupthink occurs when tight-knit groups value group agreement over high-quality decisions. Groupthink is closely linked to conformity but the concept goes beyond it.

Individuals are often under strong social pressure from leaders to accept business decisions that are clearly detrimental for the organisation. Groupthink is a situation where group pressure for conformity deters the group from critically evaluating unusual, unpopular or minority views.

There is a tendency for highly cohesive groups to value consensus at the price of decision quality, by avoiding conflict and withholding their dissenting

Dr Des Tubridy provides organisational strategies to counteract groupthink

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EXPERT INSIGHT groupthink

opinions. Team members often maintain this harmony because their own self-identity is strongly connected to the membership of the decision-making group.

Major historical events have been traced back to the concept of groupthink. These include the Bay of Pigs fiasco and the attack on Pearl Harbor.

However, groupthink is prevalent in organisations today and has resulted in major decisions being made on the basis of extreme conformity, such as the infamous Enron scandal and WorldCom collapse.

Leadership development “You know what makes leadership? It is the ability to get men to do what they don’t want to do and like it” – Harry S Truman (former US President, 1945–1953).

The type of leader needed in decision-making situations is one who can encourage a diverse range of opinions and be able to view a situation from a number of different perspectives.

While many leaders pride themselves on their independence, research has consistently demonstrated that most people, including leaders, prefer conformity to controversy. On that principle, it is hardly surprising that the ethical and capable individuals who served on the boards of companies like WorldCom and Enron turned into criticismsensitive, compliant apparatchiks, more focused on maintaining collegiality and failing to challenge flawed and corrupt decisions and directions.

Research demonstrates that using social proof to determine behaviour leads us to make fewer mistakes than by opposing the majority view.

The majority can, of course, be drastically wrong.

Expert opinion individuals very often follow the crowd. This is due to being ‘cognitive misers’ thereby preferring the cognitive shortcuts of automatic thinking over considered analysis of the situation.

These mental shortcuts can help decision makers to process information more quickly but can also lead them to make monumental errors, as not all dynamics are considered.

The question arises of how to negate or at least minimise groupthink in decision-making within an organisation. After research into groupthink, here are some strategies for leaders and decision makers to follow in order to avoid the pitfalls of over-conformity at the executive table.

Organisation-wide methods to counteract groupthink Adhering to the following strategies may help to mitigate groupthink hijacking business decisions: 1. Keep vision of the decision and situation clear.

It is much easier to get sidetracked when you are unclear about what the main purpose is.

2. Encourage people to disagree. Most people form opinions too quickly and give them up too slowly.

3. Cultivate ‘insultants’. Find people in your organisation that you can trust to tell you what you need to hear, no matter how unpopular or unpalatable that is.

4. Make sure that your actions as a leader reflect what you want to happen in your organisation.

Followers reflect the behaviour of their leaders, rather than their spoken word.

5. Honour your intuition. If a decision maker thinks that they are being manipulated, then that is probably the case.

6. Delegate, do not abrogate. It is important to share control and to empower your managers. However, it is also important to remember who is ultimately responsible for the outcome. As is often stated in politics, ‘trust but verify’.

7. Bring in a consultant who has specialised knowledge in the area that you are deciding on. A good, experienced consultant will present perspectives which may not be apparent to your team and may well prompt those who do have doubts to voice their concerns.

8. Finally, another way to identify risks in the decision is to use the Delphi Method. Within each group, feedback is taken from individual members and presented back to the group anonymously.

Group members can then modify their opinions in the light of other members’ opinions. This process is repeated until no changes are made by the group.

By using anonymous feedback, group feedback and individual opinions, the decision-making group has the opportunity to view group thinking – seeing things holistically and from everyone’s point of view – and avoid groupthink. HC

Groupthink is a situation where group pressure for conformity deters the group from critically evaluating unusual, unpopular or minority views

For more information on groupthink or extreme conformity in decision-making within your organisation, contact Des Tubridy on 0411 116 367 or dest@qmisurveys.com.au

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GUEST CONTRIBUTOR ricky nowak

Honour amongst leaders

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t would be naive to suggest that all people and all businesses are honourable in the way they operate, conduct their transactions and communicate their intent. It would be equally remiss to suggest that all customers too are honourable in their dealings with traders, suppliers, businesses and organisations. And, it is no surprise that most of us have experienced horror customer service stories which are far from honouring the customer!

However, with the consumer watch dogs in action, with better education and rules, and greater accountability of behaviours, most businesses operate within regulated guidelines that generally protect and support both individuals and businesses. In some ways, this does ensure businesses behave honourably, thanks to the protective nature of the regulators.

Traits of honour

What is an honourable business person? What is authenticity and how do we honour our staff, customers and clients through our behaviours and actions? How do we respond when we ‘screw up’ or miss something? Ricky Nowak explores honour in leadership

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Let us consider the traits of the honourable person.

They are those that are characterised by their value set and their ethical and moral code of behaviours.

Typically, they would display the following five characteristics of honesty, integrity, reciprocity, empathy and respect – all of which are displayed with different levels of intensity depending on the circumstances at the time and the different people they are interacting with.

The first and most critical aspect is honesty.

Honesty in what is said, promised, acknowledged, and in what is disclosed or discussed.

For example, being honest enough to say things such as “I don’t know”, “I made a mistake”, “I am sorry”, “We can or can’t do this for you”, “We are not going to continue doing business with you”, and “I won’t be able to give you the answer you are looking for” is what I am talking about. These words expressed in a timely, respectful and authentic manner demonstrate a willingness to be open to the real issues, and not be hidden or veiled. Conversely, if these words are expressed but not meant, it signifies the place where communication stops and complication begins.

While most people do not like bad news, they are more resentful of a hidden truth or being kept in the dark. All research today indicates that people want their leaders and those people in positions of

GUEST CONTRIBUTOR ricky nowak

influence to ‘tell it like it is’ and advise how things will impact on them, rather than disguise things in a way that confuses, hides or is dishonest.

When people are being honest, they get closer to true communication.

This leads on to integrity, suggesting people who are honest enough to let others know what is happening, will also have the integrity to look after those in their care – mentally, emotionally and physically – especially if promises or opportunities have been outlined. This means having the ability to support, inform, follow through and guide, so others are less likely to be ‘let down’ or ‘hurt’, if circumstances change.

They say ‘what comes around, goes around’ and an honourable person truly understands how powerful reciprocity can be. By honouring others in everything from considering what they need, to thinking of ways to help them even in a small way, there is a greater likelihood of being honoured in return – without the guise of obligation or expectation.

Reciprocity usually comes naturally and authentically when there is a healthy respect and care for one another. It happens without premeditating the situation.

When people are made to feel valued, they are likely to respond more empathically to others and to the situations they find themselves in.

Take for example a clothing retailer who sells (by no fault of their own) a garment that turns out to be faulty. The customer returns it and asks for a replacement garment. In some instances the retailer refuses to exchange the garment, saying the customer created the problem. The customer gets frustrated, often leaves the store unsatisfied and complains to anyone who will listen. This causes damage to the reputation of the business, and the brand of the product.

However, some retailers know that by exchanging the garment on the spot, irrespective of where the fault lies, they are creating ambassadors for their shop and the product. They honour the customer and honour themselves. The cost of the replacement garment is nothing compared to the cost of what a disgruntled customer can do to a brand or business.

While most people do not like bad news, they are more resentful of a hidden truth or being kept in the dark. All research today indicates that people want their leaders and those people in positions of influence to ‘tell it like it is’ and advise how things will impact on them, rather than disguise things

Another way we can look at honourable businesses is how the leaders embrace and respect the contributions their people make. In particular, we can look at charities and foundations that honour people experiencing difficult times. The Red Cross, The Salvation Army, Save the Children, Children First Foundation, Very Special Kids, to name a few, are dedicated to honouring people in often tragic and cruel circumstances. In Hebrew, there is a saying, Kol Kavod, which means ‘All the honour’, and it is these organisations that deserve this honour. Their resilience, tenacity and capacity to give to others and to give in a manner that is truly honourable at a basic level, is the most compelling of all.

Closer to home So what about your business? Is it honourable? Do your staff feel valued and valuable? How do you celebrate and acknowledge their contribution and effort? What distinguishes your business from others in the pack and makes people feel like they want to go to work and make a significant difference? If you can answer those questions, the answer often lies in the quality of relationships and people.

In conclusion, I remember a comment made by a CEO of an organisation in the US who stated that a speaker asked an audience at a large conference to put their hands up and show how many people “had dead wood in their organisations”. Many people put up their hand immediately, to which he asked, “Did you hire them that way?… or did you make them that way?”

Honourable businesses look after their staff and honour them as much as they honour the customer who pays for the products they sell. HC

About the author Ricky Nowak is an executive coach, corporate trainer and co-author of The Integrity Factor – Why Reputation Rules in Business and Leadership, available now for $22 from www.rickynowak. com. Alternatively email ricky@rickynowak.com

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TEAMBUILDER claire ponsford and john bethel

It’s been said that great minds think alike. For Wavelength Recruitment’s two founders, this saying could not be more true.

Clare Costigan discovers how this unlikely duo set sail on their own course, and succeeded

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ne noticeable design characteristic of the offices of Wavelength Recruitment, a Sydney-based boutique medical recruitment agency, is how large, bright and open the spaces are. This office layout can only encourage the open environment that Wavelength founders, Dr John Bethel and Claire Ponsford, love to promote.

Observing the office space, I capture my first look at Bethel and Ponsford: they are having their pictures taken by our photographer and look rather relaxed – even though later they confess to feeling completely out of place. “I wasn’t sure what I was supposed to do,” laughs Ponsford – to which Bethel adds, “what did you do with your hands? I had no idea what to do with my hands”. Whatever they feel in front of a camera, when it comes to the business of a successful, happy workplace, Bethel and Ponsford know exactly what to do.

On the same wavelength The duo are true chameleons. Early on in his medical career, Bethel admitted to himself that it was not the path for him, and by circumstance ended up applying for a job in a recruitment firm. Ponsford, who earlier worked in a managerial position for the UK NHS system, is one of countless like-minded folk from England who have come to Australia on a working visa and has never left.

Indeed, it was Bethel who hired Ponsford at their old recruitment company and it was during this time their alliance was forged. “We met working for the same company, and worked there together for some time. We felt we could take a very different approach to medical recruitment and develop a very different strategy, which is why we decided to set up our own business focusing on that niche market,” says Ponsford. With that vision, Wavelength Recruitment was born.

30 good reasons to celebrate Wavelength Recruitment has sailed into 30th position on the coveted 2010 BRW best places to work list, and Ponsford and Bethel are both immensely proud of this achievement.

“Our marketing director was keen for us to go for it and our HR manager, Kellie Egan, identified the award as something we should apply for as she felt we offered a lot in our workplace to the employees,” says Bethel.

“The BRW survey is a completely independent survey and it came back with 98% of our staff saying that Wavelength was a great place to work. It was core to our business, and this is something we really care about. So rather than going for some other accolade we actually felt like this was more important to us,” says Ponsford.

Waves of

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success

Thilo Pulch, www.pulchphotography.com

TEAMBUILDER claire ponsford and john bethel

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TEAMBUILDER claire ponsford and john bethel

Bright ideas It’s always interesting to find out what engages employees and it’s even more fascinating discovering what tactics are used. With so many different personalities, how can directors and HR managers keep everyone happy? Bethel and Ponsford both agree the beginnings of an engaged workforce take place in the hiring stages. “When you hire people who are happy it creates an ambience,” says Ponsford. “[New hires] need to have our values at heart. These are respect, integrity, care and trust.

Those are not things that can be taught; they have to be innate to the person. That is one of the first things we look for when picking whoever will join our organisation. People need to have an affinity with the way we like to work here, which is very much a teambased approach; a very supportive environment.”

Don’t sweat the small stuff Another reason employees flourish at Wavelength is because Bethel and Ponsford do not sweat the small stuff. Indeed, both laugh out loud when the topic of casual Fridays is raised. “Every day is casual Friday here,” says Ponsford.

Both founders agree it is this relaxed energy that is attractive to employees, especially those who have come from more rigid business environments.

“I think our culture is a big draw card for people, especially if they come from a corporate environment in the city. We take quite a relaxed approach; within the office we see no reason why we should enforce any type of corporate dress code … people really appreciate it,” says Ponsford.

And the winner is?

Let’s be honest – perks at any job are always fun and make you feel a bit special. Wavelength has many of these little gems. Delicious daily breakfasts, onsite massage and fitness classes, $100 birthday gifts, 14 weeks’ paid parental leave, extra annual leave and performance rewards are common practice. Chatting to Ponsford and Bethel, it quickly becomes apparent that for them, one initiative stands out from all others: Ladies and Gentlemen, I give you the Wavie Awards.

What are the Wavie Awards? Bethel and Ponsford beam at my question, clearly full of pride for their initiative. “We have our own version of the Oscars which are the Wavie of the Year Awards.

This year we held them at Wildlife World in Darling Harbour,” says Bethel. “The theme was ‘it’s a jungle out there’.” They both say it in sync.

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“We take quite a relaxed approach; within the office we see no reason why we should enforce any type of corporate dress code” – Claire Ponsford

“It’s the signatory event of the year. There is a build up to the announcement of the various award winners, and people get very excited about it. Some of the awards are presented by us, but a number are through staff nominations – in some ways those staff nominations mean a lot more to people,” says Bethel.

When asked what sort of awards are given, Ponsford and Bethel laugh, clearly reminiscing on past nomination experiences. “We have the people’s choice award and we have the rainmaker award for the person who does the most cross-referring across the business. Both awards are nominated by the staff and they showcase the behaviour we like to acknowledge and bring to the front,” says Ponsford.

Medical dramas With the wave of skills shortages pestering most Australian industries, Ponsford and Bethel seem barely fazed by it. “Apart from the GFC period, which was an aberration, this industry [recruitment] is always short of good people, and there has always been stiff competition to attract good people to our business. We feel we set our standards fairly high and quite specifically in terms of the type of people we want to work for us,” says Bethel.

With the medical industry making consistent headlines in the media regarding skilled staff shortages, do Bethel and Ponsford feel these effects at Wavelength? “There is always a shortage of candidates – a shortage of doctors – so that’s always been a challenge for us. It has never been about a shortage of jobs to fill. Clients are always coming to us with vacancies and it is about us sourcing high calibre candidates from wherever they may be in the world, then persuading them to make the move to Australia – that has been the hard bit.”

Straight in the deep end For two people who have no formal business or HR training, Bethel and Ponsford have managed to create a truly remarkable company culture. “To go into business without some sort of a business background or primary experience in the business sector meant that every increment of growth was an entirely new learning experience for us,” says Ponsford. “We’ve had to stay very self-aware and constantly seek out quality advice.”

“Personally, I was completely unprepared for how different the business became as it got larger,” says Bethel. “As we grew, it was important to us that communication, trust and openness was maintained.

It’s something we really work quite hard at.” HC

TEAMBUILDER claire ponsford and john bethel

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IN BRIEF australian news

Report on profit sharing

More than half of Australians surveyed believe they would be more productive if they were able to share in profits or have an ownership stake in their employer’s business, according to the Kelly Global Workforce Index.

The Index surveyed approximately 134,000 people, including more than 20,000 in Australia.

The report also found that 30% of workers currently have some of their pay tied to performance targets. Gen Y (aged 18–29) and Gen X (aged 30–47) employees are much more likely to be on some form of performance-based pay than those in the Baby Boomer generation (aged 48–65).

However, of those not receiving performance pay, more than a third (37%) said they would be more productive if they had their earnings linked to performance outcomes.

Managing director of Kelly Services Australia, Karen Colfer, said “this indicates that many employees are confident in their ability to perform their jobs well … and are comfortable having compensation tied to performance.”

Paid parental leave a ‘political punching bag’

While paid parental leave was a hot topic during the federal election, Hewitt Associates has found 71% of Australian corporate organisations are already offering some form of paid parental leave, with 36% of businesses offering the primary carer 12 or more weeks of paid leave.

According to the Hewitt Paid Parental Leave Pulse Survey, conducted in July–August 2010, most corporations recognise the long-term value of offering paid parental leave to primary carers. However, some are not yet sure how to address this issue.

“On the whole, corporate Australia leads the way in recognising the role paid parental leave plays in maintaining an experienced and loyal workforce. However, with different timeframes being thrown around by the Coalition, Labor and the Greens, some organisations are unsure of what is best practice and how to implement it,” said Tim Powell, managing director for Hewitt Associates in Australia and New Zealand.

Day to help prevent suicide

Every year, up to $14bn is lost from stress and mental health issues.

R U OK? Day on 7 October is a national day of action to prevent suicide by inspiring all Australians to reach out to anyone doing it tough and ask “are you OK?” Connecting with people – not just those at obvious risk – can help stop little problems turning into big ones. Participation in R U OK? Day costs nothing. It is about reminding people that in the time it takes to have a coffee, they could be having a conversation that could change a life.

On 7 October, organisations can also participate in R U OK? at Work by encouraging staff to contact anyone in their lives who may be struggling. In 2009 – the initiative’s first year – nearly 300 Australian workplaces, including some of the country’s biggest companies, participated in R U OK? at Work, including Toll Holdings, Cochlear and NSW Fire Brigades.

Full resources and support materials for R U OK? Day and R U OK? at Work are available at www.ruokday.com.au

Fast fact:

According to McCrindle Research, there are currently 4.65 million Australians classified as Gen Y, comprising 21% of the workforce. In 2020 this number will increase to 35%. As more Baby Boomers say bon voyage to the workplace, their presence will decline from 36% to just 15%

Research shows pessimism for achieving equal pay rates New research results from Diversity Council Australia (DCA) and EOWA reveal many Australians are pessimistic about the likelihood of women receiving equal wages as men, with the pay gap between genders now standing at 18%.

Alarmingly, the results also highlight the misunderstanding of what equal pay rights actually mean, with most Australians believing the notion that equal pay means equal pay for doing the same job, rather than work of equal value.

Acting director of research at DCA, Lisa Annese, said that the findings demonstrated the importance of continuing the national debate on pay equity.

“The findings show that around two-thirds of Australians wrongly think that pay equity means equal pay for men and women who are doing the same job. Just 14% of people agreed with the correct idea that pay equity means equal pay for men and women doing different but equivalent jobs.

The results also reveal that men are less likely to feel there is a pay gap amongst genders. Twenty-three per cent of men believe women earn the same as them, compared to just 9% of women.

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IN BRIEF international news

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IN BRIEF international news

Employers in China have begun adopting stricter protocols and background checks when it comes to potential recruits presenting international degree certificates. The increased scrutiny comes after a former Microsoft CEO was accused of falsely claiming a PhD from the California Institute of Technology.

Tang Jun, who ran the computing giant’s China operations between 2002 and 2004, claimed to have an electrical engineering doctorate from ‘Caltech’.

But Fang Zhouzi, a blogger focused on exposing academic and scientific fraud in China, said Jun’s actual qualifications come from a well-known “diploma-mill”, the Pacific Western University.

A number of third party service providers are offering outsourced background checking solutions and the national government is also stepping in to help. It has issued a list of more than 10,000 acceptable universities and colleges from 33 different countries. The Pacific Western University is not one of them.

Fast fact:

China: Fake credentials cause stir

Only 3% of Malaysian companies are actively following the Code of Practice on the Prevention and Eradication of Sexual Harassment in the Workplace.

There are calls for legislation to bring employers into line Source: Women’s Aid Organisation

India: Playing at work

Employers should allow staff to play games during work hours to de-stress.

According to Prashant Bhaskar, CEO, plugHR, “Gaming is seen as a required breather for roles that get monotonous or stressful”.

Gaming during office hours is believed to help in creating an interactive work environment and a relaxed mindset, as well as sharpening decision-making skills.

While the trend is predominantly confined to IT, media and some service sectors, companies that use gaming as part of their employee engagement program include Microsoft, Google and Intel.

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US: Security restrictions acceptable

A new survey

by Robert Half Technology revealed that just 12% of CIOs say it is common for employees to complain about security measures that limit which websites or networks they can visit at the office.

Twenty-nine per cent said that such complaints are somewhat common, while the majority – 58% – said that these complaints are not common.

UK: Flexible work options in demand

Over half of UK employers say they would welcome flexible working legislation, despite extra costs involved. According to new research by Hays, 70% of respondents expect an increase in requests for flexible working and nearly 40% are bracing themselves for a resulting impact on their budgets.

The survey found that more private sector employers expect an increase in their costs if staff take up the offer of flexible working, than in the public sector (44%, compared to 33%).

Employers offer flexible working primarily as a way of supporting their employees, with just 18% reporting it is offered solely to comply with existing legislation.

Only 29% feel offering flexible working is integral to the success of their business.

Singapore: Jobs turned down

It takes more than an attractive offer to land the best candidates in Singapore.

The latest research from Hudson shows more candidates are turning down job offers than ever before.

Many are choosing from multiple options but some are also holding out for more attractive positions in the future.

According to the Hudson Report on local hiring in Singapore, some 40% of employers had a job offer declined in the six months to the end of June. Yet while many jobs are being turned down, the majority of employment offers are succeeding – eventually.

Local employment growth also looks set to grow further in the next quarter.

THE LAST WORD compiled by James Adonis

5 minutes with...

Catherine Spellacy – MiniMovers HR executive

What’s the greatest HR lesson you’ve learned so far?

To never forget that people are the most important asset of any organisation. Happy employees = happy customers. It’s important to provide training and development programs that advance and empower the individual as well as creating a fun place to work and ensuring there is a balance between work and home.

What’s your favourite people-management tip?

My tip is always to treat everyone with respect.

Sounds easy but there are tips behind how to achieve this. My advice to every manager is that you need to empower your people and ensure you: 1. Lead by example; 2. Deal with the issues NOW, don’t avoid them; 3. Care about the individual; and 4. Initiatives – support the business (marketing/management/ people) initiatives; if you bag them your staff will bag them.

What career advice do you have for ambitious HR professionals?

Really assess whether it is for you. You need to do some self-reflection and decide if you are a ‘people person’ and genuinely like people; this may sound stupid but I’ve

Quote of the month “Really great people make you feel that you, too, can become great” – Mark Twain

seen many people who simply shouldn’t be in HR. Try to study IR/Law as well as HR, as this will give you a complete overview of the industry. I would also recommend that you learn to listen and get practical experience in the workforce, preferably while you are still studying.

What’s the main challenge facing the HR industry right now?

Most businesses have three challenges – people, people and people! The dilemma is in which order you put them. However, generally speaking, for most of the Australian HR industry, the major challenges are the changing IR laws. Other challenges include the downturn in work due to the GFC, the ageing workforce, cultural diversity, globalisation and changes in technology.

How should HR professionals overcome that challenge?

HR professionals need to keep focused on and up to date with legislative, management and technological changes. It’s important to keep abreast of any changes while not losing sight of what works well in your company and can be left alone, or what could be improved by taking advantage of technological advancements. The provision of leadingedge training and development programs for employees at all levels is also important in an endeavour to overcome any challenges the future may bring.

Can you believe it?

In an attempt to improve the schedule adherence of its workers, the Nigerian government locked the doors of its government buildings at 8:30am – the official workplace starting time. Employees who turned up late weren’t allowed in until the doors were reopened at 10am. The aim of the action was to enforce some discipline upon the relaxed civil servants.

n A survey of 9,300 employees has found that out of 16 countries, Australian workers are the most likely to quit during the next 12 months Source: Infogroup/ORC

n 84% of employers say the retrenchments made during the GFC left them underresourced to expand Source: Hudson

n 52% of employees feel they need to change jobs in order to get a higher salary Source: Robert Half

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