Human Capital magazine issue 10.10 by Key Media

OUR ‘NATIONAL SHAME’

Disability employment P.14 HEAD IN THE CLOUD ISSUE 10.10

HR technology P.44

FINALISTS REVEALED!

Australian HR Awards P.48 HUMAN CAPITAL MAGAZINE HCAMAG.COM

SPECIAL REPORT

LEARNING & DEVELOPMENT YOUR GUIDE TO UNLOCKING STAFF POTENTIAL

ROI OF L&D An accountant’s view

LEADERSHIP DEVELOPMENT Focus on the introverts

UPSKILLING Strength through soft skills

LEARNING TRANSFER From the classroom to the office

editor’s letter

Express yourself! Got a burning issue to get off your chest? Check out the readers’ forums at hcamag.com

Classrooms without walls For those of us in our early 30s, it sometimes seems like we were the last ‘old school’ students. I graduated from high school at a time when computers were just starting to make headway in education. Assignments were handwritten. There was no such thing as the internet (except perhaps in the minds of Silicon Valley tech boffins); and research was done the old-fashioned way by spending lunch breaks hunched over books in the library. It’s sometimes difficult to grasp how learning – not just at school but in the corporate world – has been impacted by technology. Indeed, US futurologist Dr Thomas Frey has indicated teacherless classrooms are the way of the future. “The sheer volume of experimentation happening right now, with the volume and calibre of the technologies improving education and the frequency with which it is coming out is creating this crescendo effect that will break down castle walls,” Dr Frey told News Ltd. He said within the next decade there would be a fundamental shift away from a “sage on stage” model, with a teacher at the front of a class imparting knowledge, to a model where teachers are more like coaches. “Think of a classroom where everybody is learning something different,” Dr Frey said. “It will still need supervisors to help guide the students, to coach them from point B to point C.” And, of course, education doesn’t stop when a student walks out the university gate. With employees shifting careers more now than ever before – not to mention the rapid pace of change in the corporate world – employers will need to keep staff skills sharp and up-to-date. If ‘people’ really are the key differentiators many employers claim they are, they need to prove them by investing in their development, even when times are tough. This second dedicated ‘special report’ issue of HC is dedicated to L&D. Such a broad topic needs to be broken down into specific areas. Therefore, you will find features covering learning transfer, ROI of L&D initiatives, soft skill development, developing ‘introverted’ leaders and more. We hope you take a moment to assess not just what you are doing for the development of your employees, but also what you are doing for your own development.

US futurologist Dr Thomas Frey has indicated teacherless classrooms are the way of the future

Iain Hopkins, editor, HC Magazine

Winners!

Congratulations to the following four winners of Human Capital’s ‘The Third Space’ competition. Each winner receives a 30-minute coaching session with Dr Adam Fraser, author of The Third Space • Sherree McClory • Rachael Mays • Patrick McInerney • Sharon Stockwell

COPY & FEATURES EDITOR Iain Hopkins JOURNALIST Stephanie Zillman EDITORIAL ASSISTANTS Patrick Durrant, Tom Goodwin PRODUCTION EDITORS Graham Brown, Carolin Wun, Danielle Chenery

ART & PRODUCTION SENIOR DESIGNER Rebecca Downing DESIGNER Jonathan Harding TRAFFIC MANAGER Abby Cayanan

CONTRIBUTORS People + Culture Strategies, The Next Step, Kenexa, Frontier Software

SALES & MARKETING MARKETING EXECUTIVE Anna Keane COMMUNICATIONS EXECUTIVE Lisa Narroway NATIONAL COMMERCIAL MANAGER Sophie Knight ONLINE COMMERCIAL MANAGER Sarah Wiseman

CORPORATE CHIEF EXECUTIVE OFFICER Mike Shipley CHIEF OPERATING OFFICER George Walmsley MANAGING DIRECTOR – BUSINESS MEDIA Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan HUMAN RESOURCES MANAGER Julia Bookallil Editorial enquiries Iain Hopkins tel: +61 2 8437 4703 iain.hopkins@keymedia.com.au Advertising enquiries National commercial manager, HR products Sophie Knight tel: +61 2 8437 4733 sophie.knight@keymedia.com.au Subscriptions tel: +61 2 8437 4731 • fax: +61 2 8437 4753 subscriptions@keymedia.com.au Key Media keymedia.com.au Key Media Pty Ltd, regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 Offices in Singapore, Auckland, Toronto 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.

HCAMAG.COM

HC MAGAZINE 10.10

contents

Check out the HC archive online:

18 Cover story: Special Report – L&D

From coping with the rapid pace of change to keeping high performing employees engaged, the benefits of investing in staff development are many and varied. In this special report, Human Capital looks at key L&D strategies 14 | Tackling the invisible agenda In spite of legislative measures to prevent discrimination against workers who have some form of disability, there are approximately 800,000 Australians with a disability who are unable to find work. What’s behind this ‘national shame’? Tom Goodwin investigates 44 | Head in the cloud Research indicates that HR professionals are still lagging behind in their understanding of cloud computing. Is it time to clear the air? 2

HCAMAG.COM

48 | Australian HR Awards Find out who has been nominated for the HR industry’s night of nights – the 2012 Australian HR Awards

hcamag.com

REGULARS

04 | In brief: news 06 | In brief: hr insight

FRONTLINE INTELLIGENCE

08 | In Step – HR career experts 10 | Legal 12 | HR consulting 13 | Technology

HCAMAG.COM

IN BRIEF

news WORKFORCE PLANNING

OVER-55s MAY HOLD PRODUCTIVITY KEY n Encouraging more people aged 55 and over to stay in the workforce could increase national economic output by $48bn, according to a Deloitte Access Economics report, launched by Treasurer Wayne Swan. The report found if participation among workers aged 55-plus was boosted by 5%, gross domestic product would increase by $48bn, or 2.4% of national income, over the next 12 years. Earlier this year, the government announced a $1,000 bonus for hiring long-term unemployed older people, as well as a ‘corporate champions’ program to create model organisations for mature worker participation. Federal age discrimination commissioner Susan Ryan and the author of the report, Deloitte Access Economics partner Chris Richardson, said the gains set out in the report were achievable. “In the 1990s, prosperity was driven by great productivity gains, then in the 2000s by China and the wonderful prices it paid for our exports, but both those drivers are running on empty now,” Richardson said. Ryan added the growth figures are possible only if there is “a dramatic change in attitude towards older workers”. “We have to change the mindset where once someone turns 50 we want to get rid of them.” Significantly, the Australian Human Rights Commission had seen a 44% increase in age-related complaints over the past year.

Doing battle Labour force participation rate by gender May 2012 (%)

100

Males 90 Females 80 70 60 50 40 30 20 10

15-19 25-34 45-54 60-64 20-24 34-44 55-59 65+ Source: Deloitte

HCAMAG.COM

BULLYING & HARASSMENT

‘FALSE ACCUSATIONS’ CAST DOUBT OVER BULLYING CLAIMS

The month in numbers

Percentage of young fathers who said they would prefer to choose their start and finish times at work, yet just 41% had the option to do so*

$1,227

The weekly pay of the average male worker; females earn $819 per week^

8.57

Number of days per annum taken as sick leave by Australian employees overall (the average target for Australian businesses is 7.3 days)# *Diversity Council of Australia (DCA), Men Get Flexible ^ Equal Opportunity for Women in the Workplace Agency (EOWA) #Absence Management Survey Direct Health Solutions (DHS)

n A federal government inquiry into bullying is underway, and while employers, politicians and unions alike agree bullying is a serious problem that can ruin people’s lives and result in long-term problems for employers, an anticipated spike in claims also shines the spotlight on a sinister underlying problem – employees who falsify claims. False accusations of bullying and harassment are a concurrent issue to true instances of harassment. A high profile example occurred earlier this year, when the Federal Court ordered former Commonwealth Bank employee Vivienne Dye to pay $5.85m in legal costs after her claims of sexual harassment against two managers were found to be false. In the finding, the judge said Dye had lied and had been motivated to make up false claims out of a “venomous desire for revenge”. The judge also commended the Commonwealth Bank for fighting to clear the managers’ names rather than making an out-of-court settlement. According to the Victorian Chamber of Commerce, the need to investigate matters thoroughly cannot be overstated, particularly in cases where there are conflicting statements. Where an employer seeks to rely on certain facts, they must be substantiated ‘on the balance of probabilities’. In practical terms, this means testing the evidence the employer may rely on before coming to a decision regarding substantiation.

INDUSTRIAL RELATIONS

INDUSTRIAL DISPUTES ON THE RISE: ABS n Data regarding industrial disputes from the Australian Bureau of Statistics has shown, for 2011/12, there has been a significant increase in disputes and days lost in the labour market. Business leaders have pounced on the figures, which show that despite the standard variation between quarterly figures, an upward trend can be discerned – with annual days lost rising by 83% from 159,800 in 2011 to 293,100 in 2012. This is the highest figure since 2004. “While this occurs from a low base, the rise should concern governments as much as the business community,” said Peter Anderson, chief executive of Australian Chamber of Commerce and Industry. “These figures underestimate the impact of industrial strife, because they don’t record the spike in unions issuing notices under Fair Work laws threatening strikes, and costs caused when businesses make concessions to avoid those threats,” Anderson added. Australian Industry Group chief executive Innes Willox said the increase in lost working days confirmed there were “some big problems in the Fair Work Act that need to be addressed”. The ABS noted the combined Education & Training and Healthcare and Social Assistance industries accounted for 67,800 (67%) of the total number of working days lost in the June quarter 2012. Given this figure, some have questioned whether the Fair Work Act is to blame, as the health and education sectors fall under state government jurisdiction.

HR STRATEGY

HR DEPARTMENTS ‘FACE PRESSURE TO ADAPT’

DID YOU KNOW?

Forty-six per cent of surveyed RETENTION workers would EXTRA DUTIES + MORE MONEY = HAPPY EMPLOYEES? rather look for n It’s not just dollars driving Christopher, managing director a new job than employees towards that next of SHL. contend with a promotion; half of Australian workers The research also revealed 67% workplace are keen to take on extra duties. of workers expect more money out issue, such as The SHL Workers and Good of a promotion. Management research found 22% of “Even though a promotion may conflict, while workers want more responsibility and not be possible, employers can still 48% resort to 9% want to be given charge of a provide the extra responsibility and taking days off special project when next promoted. career development opportunities when faced The study also found 36% of that employees are looking for,” with a tough managers consider their involvement Christopher said. time at work in the strategic direction of the Christopher added that by business as part-and-parcel of being promoted. “They’re willing to go that extra step when motivated and it’s an opportunity employers cannot afford to overlook,” said Stephanie

benchmarking the level of skills expected at each level of the business and assessing employee skill sets, employers can identify areas for development and assign additional responsibilities for employees.

Source: Centre for Corporate Health / R U OK? Australian Workplace Relationships Survey

n Intentions to improve the efficiency of HR departments appear to be on the rise. The Towers Watson HR Service Delivery and Technology report found 44% of companies are planning a major restructure this year, compared to just 26% that said restructuring was on the cards last year. The international survey also found that of those employers making changes to the HR structure, 39% plan to move or revert to a shared-services environment, 31% are looking to increase the number of shared services used and 26% intend to outsource additional HR functions. A separate report, The Next Step’s HR Viewpoint 2012, indicated that 56% of HR functions in Australia and New Zealand have been restructured over the past 12 months, and two-thirds of HR professionals indicated frequent restructures impact on HR’s productivity and credibility. Major change projects and HR restructures were necessary decisions but not ones businesses had taken lightly, said Mike DiClaudio, head of Towers Watson’s EMEA HR Service Delivery practice. “Despite the obvious pressure on budgets over the past few years, many companies have decided investment cannot be postponed any longer as HR departments face pressure to adapt and update the way services are delivered,” he explained. The survey also found very few companies intend to reduce spending on HR technology – 31% are currently planning an increase in technology expenditure, while 50% intend to equal that of last year’s budget. WWW.HCAMAG.COM

IN BRIEF

HR insight / graduate recruitment New data from LinkedIn has found that the top Australian employers followed by student/ recent graduates are in the engineering sector; employers in the energy sector are next in the popularity stakes. What are some global trends in graduate recruitment and retention?

• German students want to work for consulting firms – and Red Bull!

• In India, • Brazil is the only country whose Top 10 list exclusively features domestic companies. • While students in the US are more likely to follow

DID YOU KNOW?

students focused on companies headquartered in the US – along with IT and tech companies.

Releasing accurate data about universities and their graduates’ employment outlook remains a high stakes business. In August 2011 a New York City law firm filed actions against two American law schools, alleging that information relating to job outcomes of their graduates was so inaccurate it constituted fraud.

entertainment, media and social brands, students in the UK are most interested in fashion and retail.

Top employers among students and recent grads~

HOW THEY WORK*

RANK

ONE of every three

TWO of five said

SEVEN of 10

THREE out of five

college students and young employees believes the internet is as important as air, water, food, and shelter.

they would accept a lower-paying job that had more flexibility with regard to device choice, social media access, and mobility than a higherpaying job with less flexibility.

employees admitted to knowingly breaking IT policies on a regular basis, highlighting securityrelated issues in the workplace, and three of five believe they are not responsible for protecting corporate information and devices.

employees globally thought offices were unnecessary for being productive.

GLOBAL

AUSTRALIA – (COMPANY/SECTOR)

Google

Origin Energy (energy)

Accenture

GHD (civil engineering)

Microsoft

Santos Ltd (energy)

IBM

ABC (media)

Deloitte

Sinclair Knight Merz (civil engineering)

Aurecon (engineering/consulting)

PwC

Minter Ellison (law)

Ernst & Young

Fairfax Media (media)

Oracle

BCG (management consulting)

Apple

NBN Co (telecommunications)

Retention: Onetest has asked thousands of How they are job hunting: A recent survey** revealed

that more than 35% of students plan to use LinkedIn as a primary source for their job search. LinkedIn’s own stats back this up: students and recent graduates are the fastest growing demographic on Linkedin. According to employer branding company Universum, the three channels used for employer brand promotion are the corporate website (92%), on-campus activities (82%) and social media (80%).

graduates over the past few years to indicate what they want in their ‘ideal job’. Graduates, the bulk of whom were Gen Y. The following factors came out on top: • Ability utilisation – being able to apply relevant skills and abilities on the job • Achievement – gaining a sense of accomplishment from work • Advancement – having opportunities for career progression

Sources: ~LinkedIn *The Cisco Connected World Technology Report – a survey of 3,000 college students and young professionals globally **Class of 2012: Understanding the Needs of your Future Workforce; conducted by Achievers, Inc. & Experience, Inc.

WWW.HCAMAG.COM

FRONTLINE INTELLIGENCE

recruitment

Adam Wilson is a Senior Consultant in our permanent recruitment team in the Sydney Office. For additional information call (02) 8256 2500 or email awilson@thenextstep.com.au. Web: www.thenextstep.com.au

The first 100 days in HR Finding a new job is often a long and arduous journey. It’s little wonder that many job seekers feel that the hard work has been completed when they land a new role. But to make all that hard work worthwhile and the career transition a success, there is more effort required. This month, we explore the importance of successful career transitions in HR, drawing on the experience of two senior HR practitioners who have gone through significant career shifts and their approaches to the first 100 days in a new role.

A PLANNED APPROACH

At a recent seminar hosted by The Next Step, Dharma Chandran, Chief Human Resources Officer for Leighton Holdings, and Jim Nolan, Human Resources Director for AMP Financial Services, discussed their approach to their first 100 days in a new role. One of the clear messages was that a planned approach pays dividends. Dharma indicated that he has been putting in place 100 Day Plans for career transitions for many years (for both transitions within existing companies and to new companies). Dharma indicated that his early days in management consulting has provided him with the structure to take a planned approach to his career which even includes visualising himself in the role right from the point when he is first approached about it. Before a transition, Dharma also undertakes a comprehensive literature research of the organisation, which includes reading recent press and financial reports. Dharma further suggested that consulting with current and ex-employees has enabled him to formulate the right questions to ask of the business, and also allows him to gauge what is important to the organisation – which allows him to start off on the right foot once he has secured the role. Jim agreed that the foundations for success in a new HR role are laid before day 8

HCAMAG.COM

A key to success in the first 100 days is finding a balance between long-term change and short-term delivery one. His own personal emphasis in terms of pre-employment due diligence involves gathering enough information to give him the confidence that HR will be able and permitted to change the business that he is considering joining.

GET YOUR FEET UNDER THE DESK – A THING OF THE PAST

The expectations placed on senior leaders starting in a new organisation are greater now than in the past. For Jim, a key to success in the first 100 days is finding that delicate balance between long-term change and short-term delivery. The importance of short-term wins, he said, “shouldn’t be underestimated – this creates the ‘pull factor’ and credibility that lets you work successfully in the strategic space.” Jim also indicated that managing expectations is a key requirement. He said that the focus should always be on the top three things on the minds of the CEO and Executive Team, and aligning this with HR priorities and then agreeing on what is realistically deliverable and by when. Dharma agreed, placing an emphasis on having conversations at the Executive and Board level to determine what those priorities might be. He cautioned that there is no time in 100 days to gain absolute and widespread consensus on matters – making

the depth of the conversations that take place and the research that is undertaken prior to commencing a new role all the more important.

ACKNOWLEDGE THE PAST; PLAN FOR THE FUTURE

At the seminar, one point that was discussed was the tendency of HR practitioners to move into a new role with a predetermined agenda centring on organisational change. This can result in practitioners leaping straight into the fray without acknowledging and respecting the history of the organisation and what has made it successful in the past. This approach can de-rail the change before it has even begun. It is human nature to change whatever is wrong when first encountered. Dharma said that if successful change is to take place, however, employees need to tell the story of their organisation and be given the opportunity to acknowledge the things that have been done well. Jim said that when moving into any role, he is very mindful that the organisation and its people have been very successful and that acknowledging and respecting the past is important. Jim said that in moving to a successful company like AMP, it was that much easier as there was so much for the company to be proud of.

THE FINAL WORD

The first 100 days in a new role can make or break a HR practitioner’s success. In an environment where demands are higher than ever, career transitions need to start as early as possible to be successful – even while the selection process is still taking place! This approach will not only facilitate HR professionals to hit the ground running and make a positive first impression, but will also ensure that they get ahead of the game and deliver strong business outcomes, giving everyone the confidence that the fit between employee and organisation will be a successful one in the long term.

MARKET MOVES

radar

Recent HR Market Moves DP World has appointed Craig Thomson as their new Director Human Resources. Craig joins DP World from Coca-Cola Amatil where he was National HR Manager – CCA Support Services. Craig brings a strong track record of achievement and experience across manufacturing, telecommunications, healthcare and FMCG. Kim Schmidt has joined Chartered Accountants and Business Advisory firm Grant Thornton, as Director of People & Culture. Kim brings more than 20 years’ experience at Woolworths in Australia & South Africa, and a passion for talent, leadership development and diversity. Nick Booth has returned to AT Kearney as Senior HR Manager, Australia/New Zealand & Asia, after spending a couple of years at Bain & Company as HR Manager and at Associated Foreign Exchange as Head of HR, Asia Pacific. Nick had previously spent several years at AT Kearney and Cap Gemini Ernst & Young in various HR and operational management positions. The NSW Department of Trade & Investment has welcomed Maria Papusheva as ERP Project Change Manager. Maria has been appointed on a contract basis to lead and manage the Change, Communications and Training Program for the ERP project with the Department. Maria brings experience in managing change and transformation projects across public and private sectors. Natasha Hanney has accepted the role of Head of Learning & Organisational Development for eBay and PayPal Australia and New Zealand. Natasha is an L&D specialist with a record of supporting organisations to deliver results through leaders, teams and individuals. She has particular experience in financial services

gained at St George, ING Direct, AMP and Westpac. John McAuliffe is beginning a new role within Boral as Divisional HR Manager for Boral Cement. He was previously National HR Manager for Boral Building Products. John brings significant generalist HR experience, having held senior HR roles at Meat & Livestock Australia and at Amcor. After 13 years at Vodafone Hutchison in various senior HR roles, Steve Reid has joined Bankwest as Head of HR (Retail). Also joining Bankwest as Head of Organisational Development is Rachel Banks, specialist in change management, employee transformation and workforce optimisation. Rick Carpenter has been appointed to the role of General Manager Human Resources with Melbourne-based Fusion Retail Brands. Rick joins Fusion after most recently having held the role of General Manager Human Resources with Pacific Brands and, prior to that Campbell Arnotts. Also in Melbourne, Rose Phillips has joined The Just Group as Group General Manager, Human Resources. An experienced HR executive in the retail space, Rose has previously held senior appointments with Target, Officeworks and Coles. John Hussey is making the move from Melbourne to Sydney to join RailCorp as Manager, Policy & Strategy. John has a broad range of experience in dynamic,

changing environments, most recently in Business Transformation at Medibank and, before that, at Port of Melbourne and South East Water. Tracey Hillsmith has joined Optus as Capability Relationship Manager. Tracey is a senior Learning & Development professional with many years’ experience leading the Learning function at Vodafone, AMP and at Virgin Mobile Australia, with a particular focus on building capability around sales and customer service. Victoria Doherty is joining QBE as Head of HR Programs. In this role she will be heading up the HR Centres of Excellence. Victoria knows the finance and insurance industries well, having held various roles at Perpetual, ING and Zurich over the past 15 years, including managing L&D, OD and Recruitment teams and leading major transformation programs.

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

HCAMAG.COM

FRONTLINE INTELLIGENCE

legal

Nichola Constant – P: +8094 3102, nichola.constant@peopleculture.com.au Erin Lynch – P: +8094 3115 erin.lynch@peopleculture.com.au People + Culture Strategies

Protecting your business interests Court decisions continue to indicate that restraints of trade, including noncompete clauses, will be enforced if reasonable and necessary to protect legitimate business interests. ‘Restraint of Trade’ provisions are now routinely found in employment, partnership and sale of business agreements. These provisions seek to prevent employees or partners from taking clients or competing with the business for a period of time after they leave.

DRAFTING AN EFFECTIVE CLAUSE

A court will only enforce restraint clauses if it considers the restraint ‘reasonable to protect the legitimate business interests’ of the party seeking to enforce the restraint (the ‘restrainer’). If the restraint clause is not ‘reasonable’, a court is likely to find the whole clause void and unenforceable and it may be struck out of the contract. Normally, courts do not have the discretion to rewrite clauses. However, in New South Wales, the Restraints of Trade Act 1974 does allow a court to ‘read down’ the terms of a restraint clause to modify it (as to the time period or geographic area, etc) until it is reasonable. ‘Cascading’ clauses offer a number of alternative covenants, detailing the time and geographical limits of restraint. The advantage to these is each one is severable by a court without affecting the validity and enforceability of the restraint.

WHAT IS REASONABLE?

It is reasonable to protect a business’ goodwill for a period of time by placing restrictions on a former employee’s business activity. Many factors are considered when concluding whether a restraint is reasonable. Each situation is unique. Factors include (but are not limited to) the influence of the person being restrained and how integral they are, or were, to the business. The type of information requiring protection 10

HCAMAG.COM

If the restraint clause is not ‘reasonable’, a court is likely to find the whole clause void and unenforceable may include trade secrets, customer lists, access to clients and/or prospects and the relationships established through the business. In principle, courts will look at whether the restraint protects a genuine interest of the restrainer and whether the time period and geographical area are no greater than required to protect that interest.

RECENT CASE

The Full Court of the Federal Court of Australia has recently revisited restraint of trade clauses in employment contracts and upheld a two-year restraint period against a former director. Brent Pearson was a director of HRX Holdings Pty Ltd. Mr Pearson agreed to a restraint that prevented him from accepting employment with a business ‘similar to or competitive with’ HRX for two years after termination of his employment. The restraint was designed to stop him disclosing confidential information and soliciting customers or employees away from HRX. In exchange, Mr Pearson received his salary for all but three months of the two years and an eight percent shareholding in HRX confirming the restraint was a part of a “reasonable commercial arrangement between the parties”. Mr Pearson subsequently resigned from

HRX. A week earlier he had accepted a senior position with a competitor. The Court held that: “Where a contractual restraint protects a legitimate interest of the covenantee, the restraint must afford no more than reasonable protection as between the parties and in terms of the public interest. In terms of HRX’s interests, the restraint in protecting customer connections and ensuring the diligent and faithful pursuit of business opportunities by Mr Pearson for HRX, was reasonably necessary to protect those interests.”

WHAT MUST YOU DO TO ENSURE A RESTRAINT CLAUSE CAN BE RELIED UPON?

From the substantial cases dealing with restraint clauses it is becoming clear the requirements for a restraint to be held reasonable are: • Genuine interest—you must have a genuine and legitimate interest that needs protecting and the restraint should be limited to protecting that interest; • Time period—the restraint should last no longer than necessary to protect that interest; • Geographic area—the restraint should not cover a geographical area larger than necessary to protect that interest; • For employees—ensure the restraint is not so broad as to prevent the employee from working at all; and • Cascading clauses—with alternative time periods and geographic areas, this may help to ‘hedge your bets’. It is critical to identify precisely the interest that needs to be protected. In determining this, consideration must be given to the employer’s ‘business’, the area in which protection is required, and the time frame—and then limit the restriction accordingly. Be wary of any ‘standard’ clauses. If they do not suit the specific circumstances, they may be unable to be enforced.

HCAMAG.COM 11

FRONTLINE INTELLIGENCE

HR consulting

Ed Hurst, Managing Director at Kenexa Australia Level 2, 451 Little Bourke St, Melbourne Phone (03) 9602 3899 or email ed.hurst@kenexa.com

Culture - Transforming performance by understanding an organisation’s ‘personality’ Almost every organisation has initiatives based on the ‘employee experience’ – from Employee Engagement surveys that enhance performance by understanding what engages our people, to defining our ‘employment brand’ and creating formal Employee Value Propositions (EVP’s). These are all valuable things to do because they allow us to understand precisely what it is like to work for our organisations. This enables us not only to make that experience more positive and fruitful, but also to attract the right people. All of these approaches begin by describing what an organisation is like. But too often, despite ‘doing the right thing’, such projects can still fail to transform outcomes in the way we want. In conjunction with our clients, we have been looking at why this is. One thing these approaches have in common is they are based on asking the ‘what question’ rather than the ‘why question’. In other words, they describe, at a highly visible and practical level, what it is that organisations are like. However, these organisational behaviours/practices are all expressions of the deeper culture and values that make organisations who they are. Regardless of how hard we try, if we seek to move things forward simply by focusing on superficial actions, the same culture tends to reassert itself. This explains why so many laudable initiatives fail – and why so many people are cynical about change. In much the same way that people’s behaviour is underpinned by their personalities, if we want to understand and enhance how organisations operate, we need to look more deeply than surface-level actions and see what lies beneath – culture. Organisational culture assessment is far from new, of course – it has a long history. But what is new is the ability to understand culture in much the same terms as individual personality. This is delivering impressive 12

HCAMAG.COM

Organisations that actively manage their culture achieve better revenue, net income, stock price and service results for a range of organisations, enabling practical solutions to be delivered much more effectively. One such approach is based on the work of Carol Pearson Ph.D., director of the James MacGregor Burns Academy of Leadership and professor of Leadership Studies at the University of Maryland. Her work has taken the traits exhibited by organisations, rolling them into different ‘archetypes’ that can be easily identified, discussed and leveraged by management. In short, this approach provides an accessible and robust way of assisting organisations to understand and address the power and pitfalls of their cultures. This is of tremendous help in driving forward business performance. There is compelling evidence that organisations that actively manage their culture consistently achieve better outcomes in terms of revenue, net income, stock price and customer service. It is also of paramount importance when managing mergers and acquisitions. We can establish many of the rational facts about an organisation quite easily – and these make up the bare bones of a culture. The ‘emotional truths’ (the unspoken values,

beliefs and customs) allow us to go much deeper – but still don’t hold the full picture. It is only by delving into the organisation’s personality in a much more rigorous way (by defining the ‘archetypes’ of the organisation’s underlying personality) that we can establish what culture is really about. Space prevents a full discussion of the archetype model itself, but each archetype is associated with different values, strengths, weaknesses and traps. For example, an ‘Explorer’ organisation values individuality, independence, new experiences, growth and change. This tends to be associated with being at the cutting edge, staying current in terms of customer needs and provides a great environment for ‘self-starters’; but it also tends to lead to chaos and can abandon employees who do not take the initiative (but who, nonetheless, have much to offer). If such an organisation tries to introduce surface initiatives to change these ways of thinking, they are likely to be overwhelmed; but understanding this cultural archetype makes solutions much more feasible. This is merely one example of the benefits of understanding organisations in these terms and also shows one of the other features of such cultural work – each instance is unique and can only be moved forwards with sensitive and effective leadership. Once this approach is fully embedded into how we think, it becomes possible to hire/ promote/develop people based on cultural fit. It becomes possible to create an employment brand that truly reflects what it is like to work somewhere (so suddenly you find yourself with lots of people who like the way you operate). It becomes easier to create strategies that will truly ‘bite’ rather than missing the target. Internal communications can appeal in just the right way. In short, a wide variety of ways become available to optimise performance and maximise the employee experience.

FRONTLINE INTELLIGENCE Nick Southcombe is General Manager, Frontier Software. (03) 9639 0777; www.frontiersoftware.com

technology

People technology for employee engagement HR Technology is the foundation on which best-in-class organisations build a company culture promoting engagement as a ‘way of life’.

Our employee engagement initiatives focus on rewards and recognition. While they showed some initial improvement we have been disappointed with their overall success. How can we boost employee engagement for the long run?

workforce and leadership. Communication, accountability and information are the three key elements to employee engagement; HR technology is fast becoming the only choice for unlocking all three in your workplace.

Employee engagement is the HR buzzword many of us have heard but very few professionals get right. While rewards and recognition programs have gone some way in establishing engaged workforces, it is the overall workplace culture and communications that should be the main focus of engagement programs. So how do you treat individuals as individuals while also putting in place a larger framework for company culture? The answer is HR technology.

Research shows engagement flows from leadership down to employees. For any engagement initiative to be successful it’s essential you have buy-in from top level leadership. Involving high-level management in engagement programs is made easier by additional benefits delivered through HR technology. These are the decision-makers that want workforce visibility, metrics and measurable ROI, deploying an engagement program leveraging HR technology delivers all of this to your organisation’s executives.

PEOPLE TECHNOLOGY

One of the common misconceptions around employee engagement is that technological systems for efficiency and communication make the workplace impersonal. Employee engagement is associated with happy, communicative and collaborative environments, while technology is often associated with putting a number on a person and isolating them in their work. While this may have been true of the past, emerging technologies prove, more than ever, innovations lead to human interaction and convenience in the workplace. As HR professionals, creating a healthy, cooperative working environment for engaged employees is a crucial aim. Modern HR technology has come a long way in establishing the tools your organisation can use to promote these qualities in both your

TOP DOWN ENGAGEMENT

EMPOWER YOUR PEOPLE

Employees spend 20-30% of their working time on personal issues, such as leave approval, pay queries and training requests. This takes your employees away from value-add activities and causes stress when responses are delayed. Your employees don’t want to waste this time and would appreciate the opportunity to have personal matters resolved upfront and early. Employee Self Service is the perfect tool for eliminating time waste, empowering your employees and increasing organisational transparency. Not only does this save your organisation and your employee time, it also conveys that vital ‘Someone cares!’ message to your staff. Your organisation needs to ask if its existing HR operations allow employees to: • View and update personal data online • View their job description (JD) and

Communication, accountability and information are key elements to engagement responsibilities online • View career path with links to successive positions with information on required skills and competencies • View and apply for vacant positions • View set goals and performance targets • View personal reports and performance appraisals • Access HR Helpdesk online • Access Information Kiosks (for employees without personal computers) • View and apply for training programs If you don’t have all or at least most of these functions, there’s some good news. There’s untapped productivity in your workforce that can be accessed with an HR technology solution. Involvement drives engagement, so it makes sense that greater visibility motivates employees to get onboard. Technology is the vehicle that can deliver greater self-direction to your staff and greater communication throughout your organisation. With the right implementation and leadership buy-in, HR technology can make engagement a ‘way of life’ in your organisation. HCAMAG.COM 13

DIVERSITY

disability in the workplace

Tackling the

INVISIBLE

AGENDA In spite of a number of legislative measures in place to prevent discrimination against workers who have some form of disability, there are approximately 800,000 Australians with a disability who are unable to find work. Tom Goodwin investigates

Diversity is an important feature of modern business, and has become a necessary factor for consideration when assessing new staff. However, those with a disability have often been overlooked during diversity efforts, despite figures suggesting approximately one in five Australians have some kind of disability – whether it is physical, mental or intellectual. In 2008, Suzanne Colbert, chief executive of the Australian Network on Disability, described getting disabled workers into the workforce as an “entirely invisible agenda”. More recent commentary does not appear to indicate an improvement in the situation. A 2011 report from PricewaterhouseCoopers indicated Australia was ranked last of all 27 countries in the OECD for quality of life for those with disability. John Walsh, PwC partner, offered his thoughts on the situation in commentary relating to the report: “To bring about change, we need more than a funding solution. Change needs to occur at every level of the system – 14

HCAMAG.COM

from people with disability and their families, to specialist disability support organisations, to mainstream service providers.”

DISCRIMINATION BY OMISSION?

In theory, incorporating disabled workers into the workplace should be easier now than at any point in the past. Once-costly technologies (for example speech recognition software) that might have involved an investment of many thousands of dollars in the 1990s are now available cheaply or freely. Networks exist to aid disabled workers and their employees in the transitions involved in the workplace. Government funding, such as the Employment Assistance Fund, may be available to help subsidise the cost of wages. In spite of these measures, unemployment rates of disabled persons appear to be notably higher than those who do not have some form of disability. The PwC report placed Australia 21st out of 27 for disability employment.

SUSTAINABLE OPPORTUNITIES The unemployment figure was dubbed a “national shame”, by John Della Bosca from the National Disability Services Lobby. While it is easy (and may on some occasions be correct) to assume active discrimination is keeping disabled people out of the workplace, not everyone ascribes sinister motivations to the disparity in figures. Eric Cooper, HR manager for Guide Dogs NSW/ACT, feels rather than overtly discriminating against those who are disabled, recruiters seldom consider what is not needed for an employee to perform a role. He suggests a hypothetical role in which skills x, y and z are required, none of which require the candidate to be sighted. Cooper notes employers would not typically consider actively looking for a visually impaired person to fill the role, but would typically default to a sighted applicant. Colbert has outlined some of the main employer attitudes that prevent people with a disability from enjoying greater participation in the workforce: • Stereotypical assumptions about what people with a disability can and cannot do • Belief that WH&S will be compromised, as well as the perceived potential impact on workers compensation and sick leave • Perceived cost of workplace adjustments • Lack of awareness and confidence in interacting with people with a disability • Belief that people with disabilities will take too much time to manage • Fear of doing or saying the wrong thing

INCLUSION IN PRACTICE

Break Thru (one of Australia’s largest employment, training & community services provider and winner of the 2011 Australian HR Awards Employer of Choice NFP/ Public Sector) and Droga5 Australia (one of the world’s most successful creative agencies) are working in an enthusiastic partnership to address this issue, and they are achieving some early success through the newly launched ‘Creative Spirit’ campaign. Launched in November 2011 and rolled out across Australia and internationally, ‘Creative Spirit’ is a challenge to all employers in the creative sector and beyond. This challenge is to seek diversity and difference in their own workplace and to experience for themselves the many benefits of employing people with a disability. The campaign asks employers, “What could be more creative than being different?” Since the launch of the ‘Creative Spirit’ initiative: • Over 70 creative companies have registered their interest, including Clemenger, News Limited, Lion Nathan, and more • Break Thru and Droga5 are also liaising with employers

Diversity@Work advises the following practices are operational prior to actively seeking and employing people with disabilities:

Business case Ensure there is a business case as opposed to a moral case – this is an important step in ensuring there is buy in from the rest of the business. This will not only assist in the decision-making processes but will also obtain management commitment and buy in. A diversity business case should include a description of the business needs and drivers such as: need for broader access to labour markets, recruitment and retention of top talent, and increasing workforce diversity.

Action plan Develop an Action Plan that will have two main aims: review current practices and identify any systemic or physical barriers for people with a disability; and develop policies and procedures aimed at eliminating barriers and creating an inclusive culture.

Recruitment practices Ensure disability confident recruitment practices are in place. One sure-fire way to do this is to address unconscious bias in all recruitment practices, regardless of whether recruitment occurs internally or externally.

Competence Ensure the leadership team have the competence to lead and leverage talent within a diverse team of people by providing regular and structured professional development in diversity leadership. Provide opportunities for all staff to attend general awareness programs around different aspects of disability. This will offer employees the opportunity to ask questions and ensure commonly held myths and stereotypes are addressed.

Support Develop ongoing partnerships and relationships with organisations that have disability expertise. Examples of this may include a Disability Employment Service as well as Diversity@Work. These organisations provide a safety net for both the employee in the transition to work process as well as the hiring manager. This support is crucial in the initial phases of the employment process.

based in the UK, US, Vietnam, New Zealand, Singapore and Canada • To date, 11 job seekers with disabilities have started employment since the launch in November 2011 • The campaign has been promoted online, in print and television • Shared recruitment learning across the creative sector on employing a person with a disability. Droga5 Sydney has been able to discuss some of the initial challenges of employing a person with a disability and also provided some tips to other businesses as they considered their options. This has been helpful in working through employer’s uncertainty or feelings of being ‘unqualified’. HCAMAG.COM 15

DIVERSITY

disability in the workplace “For this to be a success, there needs to be support from both the employers and any partnering employment service,” says Anita Le Lay, executive manager – people, culture & corporate services at Break Thru. “Break Thru, via its ‘Celebrate Success’ campaign, is communicating with employers at various levels about how to engage with diverse talent pools. We’re in a unique position of being an employer of choice and, as such, are able to share with employers real understanding of how employing someone with a disability provides great results from both a business perspective and in the employer of choice space.” A second success story is Sydney-based BenBro Electronics, which has taken a strongly proactive stance on employing workers with a disability during its 26 years of operation. The company has a policy of ensuring people with some form of disability account for at least 25% of its workforce. On occasions, workers with a disability have comprised as much as 40% of its workforce. Co-founder Steven Bennett is quick to debunk many of the myths about workers with disabilities, particularly those concerning employee retention rates or set-up costs. BenBro employees, he states, have an average retention period of 13 years. While there are periodic costs involved in better accommodating new or existing workers (for example additional lighting, lowering workbenches), Bennett is firmly convinced these costs are minimal compared to those that might be involved in potential staff turnover if a worker with a disability could not be accommodated. Bennett’s confidence in employing workers with a disability is backed by the Australian Human Rights Commission (AHRC). Some of the advantages they indicate for hiring an employee with a disability are lower staff turnover, alongside higher levels of workplace safety and performance.

HCAMAG.COM

TOP-DOWN APPROACH

Despite these advantages, disability-related issues still make up one of the most common complaints directed to the AHRC. Colbert feels the case for employing people with a disability can be addressed by fostering a better understanding with “…people at executive levels, at recruitment and selection stage and then at line management level…”. In addition, people management skills need to be improved to “more fully embrace and understand diversity”. Making your workplace more disability-friendly can take a variety of forms, including:

• Actively advertising for employees with disabilities • Making training materials available in a variety of formats (eg braille, large print)

• Providing internships or cadetships for employees with a disability

• Organising mentoring programs for employees with a disability

• Implementing disability awareness training in the workplace

In practical terms, if one in five people in Australia suffer from a form of disability, it is highly likely there may be employees already within your organisation who personally have a disability or are affected by the disability of another. Ensuring your workplace is ready for staff with a disability is not merely an option for consideration – it is likely to be an absolute necessity. Over the following page, Human Capital looks at the diversity initiatives of Woolworths Ltd

Case study - Woolworths Ltd

Creating a fresh start Lucy Macali, manager of the WorkFocus Group’s NDRC program, outlines how one of Australia’s largest employers has made disability employment a top priority Employing people with disability (or not) is a missed opportunity for nearly all Australian employers. Close to one in five Australians have a disability and, as businesses and as a nation, we simply cannot afford to ignore that these people have talents, ability and a right to participate in the workforce and, therefore, society. Like nearly everything else in life, employing people with disability takes practice. It’s a journey. The issue runs all the way from organisations that are only just investigating the possibilities, through to disability confident companies with a focus on diversity and its benefits. Even the latter, though, can always improve processes and confidence. That’s why, when the Department of Education, Employment and Workplace Relations’ Innovation Project funding came up, I knew WorkFocus Australia could make a true difference by working with Woolworths. Woolworths Limited* was already quite a way along the disability employment journey. They had committed senior management and confident HR teams. However, the challenge for Woolworths, and companies like it, lies with being a large, multi-brand, high volume employer. One of the ongoing challenges is consistently building confidence at the store level about how to employ people with disability and what sort of roles people with disability can fulfil. With the help of DEEWR innovation funding for projects for people with disability, WorkFocus Australia and Woolworths focused on a south east Melbourne area of high unemployment and disadvantage and looked at ways we

might break down employment barriers for people with disability there. Arguably one of the biggest predictors of our eventual success was starting small. By narrowing in our resources and efforts on this one geographical area, we were able to really work through the barriers at the store level. Could we improve recruitment? Could we build better relationships with local employment service providers? Could we communicate what Woolworths knew at a national level and translate it to local application? It turns out we could. The overall aim was to deliver a better mix of disability employment assistance and advice. A dedicated disability employment officer, based in Woolworths, was appointed. Her focus was (and still is) to remove barriers to employment for job seekers, inform and educate store managers and other Woolworths employees, and share good practice throughout the Woolworths network. By really targeting a ‘chunk’ of work, rather than trying to change everything across the nation in one hit, the project resulted in a 375% increase in placements in the project zone for the period ending June 2012. Additionally, the number of stores in the region still actively recruiting candidates with disability remains higher than other Victorian regions. The challenge then became how to spread good practices and results throughout the national Woolworths network. Enter, the Woolworths ‘How to Guide’ for recruiting people with disability – a beautiful-looking and easy-to-use resource for all Woolworths store managers. The guide is packed with some wonderful stories of Woolworths team members, who also happen to be people with disability. It is also filled with practical advice on how to focus on the individual

and open up the talent pool to all kinds of people. It explains the possibilities and the resources that are in place within Woolworths, and programs and advisory services outside the company. The guide has allowed us to take the focused learning from one project and make it available to all. It is introduced by Grant O’Brien, Woolworths managing director and CEO, and a big supporter of employing people with disability. Where to now? To support the guide’s launch across Australia, Woolworths is updating its disability awareness training. Together with WorkFocus Australia, Woolworths will create a supporting ‘How to Guide’ for Disability Employment Service (DES) providers working with Woolworths. While all this was born of DEEWR’s ‘Innovation Project’, our aim is to make this the norm in Woolworths and beyond, rather than an innovation. *Woolworths Limited includes the brands Woolworths Supermarkets, Big W, Masters Home Improvement, Caltex Woolworths co-branded fuel outlets, Countdown, Thomas Dux Grocer, Dan Murphy’s, BWS, Cellarmasters, Langtons, ALH Group, Woolworths Money and Woolworths Everyday Rewards. About the author: Lucy Macali is the manager of the National Disability Recruitment Coordinator (NDRC), a program administered by WorkFocus Australia on behalf of the Australian Government.

HCAMAG.COM 17

COVER STORY LEARNING & DEVELOPMENT

Special Report – Learning & development

L&D: Strength from within From coping with the rapid pace of change to keeping high performing employees engaged, the benefits of investing in staff development are many and varied. In this special report, Human Capital looks at key L&D strategies

Anyone with any doubt as to the placement of L&D high on corporate agendas need look no further than a telling soundbite by Richard Riley, former Secretary of Education in the Clinton administration. Riley is on record saying that the top five jobs today did not exist five years ago. Further, the top five jobs in 2016 don’t yet exist. Tim Legge, CEO of Learning Seat, confirms it’s “absolutely true”. “Twenty or 30 years ago, employers hired people based on an assessment of whether they had the experience to do the job; today the jobs we are desperately trying to fill are the ones that didn’t exist only a few years ago, so finding someone with experience is really not an option,” he says. Today, these roles are being filled by people who employers believe have the capability to learn how to do the job; they are knowledge workers. 18

HCAMAG.COM

“This makes the L&D function more critical to business success than it has ever been,” Legge says. “What tools and resources are we going to provide these knowledge workers to facilitate their development? What learning strategies are we going to put in place to accelerate their productivity? And perhaps most critically, how can we leverage the use of technology to deliver these strategies?” The 2011 National Learning & Development Index (NLDI) – a collaborative effort between AHRI, The Australian Institute of Training & Development and Learning Seat – partly answers these questions. It provides insights into how Australian companies handle the L&D function, what methods are being used, who’s making the decisions and how ROI is being assessed. The report canvassed the opinions of 1,164 people, predominantly from HR or L&D-related backgrounds.

Legge notes that the most striking aspect of the results was the vast opportunity it exposed for further improvement – particularly the opportunity for L&D to become a strategic, forward-thinking tool. For example, the report highlighted that the performance review process is the primary driver for L&D activities. “Performance reviews are clearly an important driver of training activity, but they are a lagging indicator – in most cases, a 12-month lag. The primary driver of L&D initiatives should be the goals and strategy of the business. What skills and capabilities are we going to need to get us where we have decided to go? Let’s develop those in our people.”

PLUGGING THE SKILLS GAP

This concept of ‘grow your own talent’ is slowly gaining traction as companies struggle with the skills shortage. In the annual Australian Institute of Management’s ‘Australia’s Skills Gap’ report, 77% of organisations were found to have a skills gap. Of those organisations that have avoided a skills gap, the most nominated reason why they had done so was ‘a strong commitment to training and development’. Similarly, for those organisations with a skills gap, ‘training and development’ was named as the number one solution to fix the problem. Forty-five per cent of respondents said leadership was the biggest skills gap in their organisations. The next highest ranked skills gaps were: ‘process and project management skills’ (39%); ‘technical and industry specific skills’ (35%); ‘communication/interpersonal skills’ (34%); and ‘managerial’ (32%).

BUDGETS, RESPONSIBILITY AND ROI

What types of L&D activities are provided by your organisation?* OPTION

COUNT

PER CENT

Funding of formal education

800

80.2%

Mentoring

610

61.2%

Coaching

617

61.9%

In-house training

948

95.1%

E-learning

683

68.5%

Membership of professional associations

660

66.2%

Leadership development

796

79.8%

Traineeships

494

49.5%

Induction

873

87.6%

Apprenticeships

277

27.8%

Individual development/career planning

632

63.4%

Secondment

392

39.3%

Graduate programs

410

41.1%

Other

4.0%

997 responses – respondents could select as many as apply

Measuring ROI from L&D activities* Self-assessment by participants in L&D initiatives

48.25%

Assessment of changes in performance/ productivity of participants in L&D initiatives

32.10%

Organisational increase in performance/pro-

21.81%

ductivity/profitability following L&D initiatives

23.56%

Specific measurements aligned to individual initiatives

38.58%

Climate or employee surveys

26.85%

L&D initiatives are not tracked or measured for ROI Don’t know Other

Despite these general insights, it appears that assessing the L&D needs of specific organisations is a messy, haphazard affair. The NLDI indicates that few organisations conduct skills audits or assessments of core skills required by the organisation. As suggested by Legge, in addition to the performance review process (92.3%), it’s self-initiated interventions (75.2%) and compliance requirements (75.3%) that determine the L&D activities for an employee – not quite the proactive approach required to drive business results. Just 45.26% believe that strategy is a strong driver of the allocation of L&D budgets, with the remainder taking the view that strategy impacts moderately on L&D budgets or it plays no part at all. “The reality is that most organisations don’t really do L&D assessment,” Legge adds. Mark Sexty, director, Upskilled, says the disconnect between L&D initiatives and business strategy is clear to see: when organisations are ‘training for training sake’ there is little or no time spent looking at the overall business strategy and the benefits that can flow from this. However, when organisations are more focused on

Table 1

10.08% 2.47%

972 responses

*Source: 2011 National Learning & Development Index, by AHRI, The Australian Institute of Training & Development and Learning Seat

HCAMAG.COM 19

COVER STORY LEARNING & DEVELOPMENT

Special Report – Learning & development L&D activities that have made a ROI (ie, contributed to revenue or prevented loss of revenue)*

30.23% 41.51% 47.43% 24.42% 62.54%

Induction of new staff

50.93%

Compliance training for new legislation

40.13%

Soft skills training

37.79%

Hard skills training Other

49.62%

Workplace safety training Teambuilding activities

In-house operations training

Customer service training

0 Leadership training

6.68%

913 responses

training for ‘measurable outcomes’ with the aim of driving a ROI, the links to the business strategy are more easily connected. “You start to see more of an integrated business approach and a true focus on workforce development in their approach to training,” he says. “Training is seen as a facilitator to increased productivity, staff retention and increased customer service, as well as a way to improve or change the overall culture of a company. Then training really becomes part of the strategy.” It’s informative to look at best practice companies. ANZ Bank, for example, has a business-specific set of competencies with clear levels of attainment and clear definitions attached around each – and critically the competency framework has been designed to align with the bank’s business strategy. Job descriptions have a sub-set of these competencies allocated to each role. Then the capability of each employee versus the competence is recorded on the Learning Management System. This provides the L&D team with a complete picture of the capabilities in which the employees are strong, and the areas that require focus. Sexty says that some sectors are more proactive than others, especially when it comes to supervisor or management roles. These sectors include technology, manufacturing, mining and construction. “Within these organisations, the majority of their staff in supervisor and managerial roles have come up through the ranks,” he says. “These employees have great product knowledge, are technologically proficient and understand the processes of their organisation. What they generally lack, though, are the ‘soft skills’ and ‘people skills’ that are required for the role.” 20

HCAMAG.COM

The NLDI survey indicates that over half of all L&D sits within the HR function. Legge notes that this shouldn’t necessarily be an impediment to quality outcomes but often it can be. “The HR function is often dominated by management of cost and risk – negotiating EBAs, managing compliance, managing poor performance, etc. If companies are not careful, these activities can often divert attention away from L&D,” explains Legge. The tricky question of ROI of L&D is a further problem, and may be a key influencer of the types of learning interventions being used. According to the survey, some senior executives view initiatives such as teambuilding and soft skills as ineffective. “I think part of this is because it is so difficult to demonstrate an ROI on these types of initiatives,” Legge says. “My perception is that views like these are gradually changing. Even the hardest of CFOs understand that there are some investments that we know will deliver positive results – even if they are hard to measure.” In nearly half the surveyed organisations, L&D budgets are determined by CEOs (42.74%), a quarter by HR managers (26.51%), and around one in 10 each by L&D managers (14.72%) and line managers (11.69%). Apart from the determination of budgets, CEOs exercise little direct responsibility for activity within the L&D function. Another related issue is learner response to L&D initiatives. Three-quarters of the respondents (75.1%) reported that employee satisfaction with L&D activities is measured by individual feedback forms. Other methods used are informal discussion (57.89%), the performance management process (52.87%) and as a part of general climate surveys (50.72%). In only 7.17% of cases is employee satisfaction not measured at all.

OPTIONS

So what are the most popular types of L&D activity? The top four include: in-house training (95.1%); induction (87.6%); funding of formal education (80.2%); and leadership development (79.8%) – see chart on page 23 for other types of L&D activities reported. The elephant in the room must be e-learning (cited by 68.5%). Uptake of e-learning globally is occurring at a significant rate, and Legge says there are a number of reasons for this. “The improvement in learning technologies and online instructional design – one of those jobs that didn’t exist five years ago – mean the learning experience that is being delivered to learners has improved dramatically. Moreover, the types of learning that can be taught in an online modality is improving all the time. For example, we are starting to see effective e-learning solutions in areas such as sales and emotional intelligence – areas

that five years ago we would not have considered putting online,” says Legge.

FUTURE TRENDS

As technology changes so, too, do learner expectations. Social learning and mobile learning are the two areas to keep an eye on. The concept of social learning – the acquisition of competence via informal, social means (rather than formal structured learning) – has been around for many years. But for L&D professionals, the absence of tools and resources to facilitate, encourage and measure its effectiveness has left it out of their scope. Almost overnight these tools have arrived. “By and large, the L&D community is struggling with how to tackle social learning,” says Legge. “Many of the professionals I talk to are overwhelmed [by the increasing prominence of these tools] and don’t know where to start. Moreover, there is often resistance at the senior executive level in making these tools available based on a perception that they are distractions from work rather than tools for work.” The big challenge for L&D practitioners lies with educating their executives that they need to get on board. For Gen Y and Gen Z in particular, social media technologies are integral to how they operate. “Failure to embrace social learning is not just a lost opportunity for L&D, it is a big cross against your employer brand,” Legge adds. Mobile learning is a similar story. The advent of new technologies (tablets and smart phones) brings into scope the obligation for employers to provide learning interventions for employees wherever they are and whatever they are doing. For Legge, the key is designing these interventions to fit the employee’s context and not just to make current offerings available on the new technologies. He cites a study from 2009/10 run by IBM and Columbia University that highlights this point. IBM wanted to know how they could make better use of smart phone technology for their 25,000 smart phone-ready employees. They created a range of learning interventions including access to over 10,000 professional development courses. Across every division and every geographic region, IBM found identical results. No one used the courses. In fact, they only used two of the interventions on offer: performance support and access to late breaking information. When they were out of the office their primary concern was helping customers and doing their jobs – in that context, their professional development took a back seat. “Whatever the environment or methodology, organisations need to be driving outcome-based learning with measurable results. Without this, they are falling into the trap of ‘training for training sake’,” Sexty concludes.

Career development: A 5-step program

Step 1:

Formalise your career development approach An essential step in taking a systemic approach to careers is to create a formal career development program. Depending on the needs of the organisation, this could take a variety of forms, but certain features are universally applicable. A distinction must first be drawn between the accountabilities of the organisation and those of employees.

Step 2:

Conduct a skills vs needs inventory Organisations must undertake a rigorous analysis of present workforce skills and future talent needs. Creating an inventory of present skills and future needs is important for giving proper direction to individual development. Development cannot succeed for the individual, let alone for the organisation, unless it is strategically oriented towards achieving larger business goals. Employees who develop capabilities of little relevance to their job or organisation won’t have an active part to play in the organisation’s success.

Step 3:

Initiate meaningful career discussions Organisations must also take the lead in initiating and facilitating meaningful career discussions, providing an essential step in empowering employees to drive their own development. Research suggests that career discussions between employees and immediate managers are rare. Skilling and equipping managers to have regular, meaningful, career coaching conversations with employees is a foundational step in a systemic approach to careers. Just as important is holding managers accountable for conducting those career conversations.

Step 4:

Make employees accountable for career discovery process A successful L&D program cannot rely on the organisation alone. With guidance, support and tools from their organisation, employees must be held accountable for engaging in a process of career discovery. This process should involve three phases: self-discovery, organisational discovery, and career discovery.

Step 5:

Articulate ROI There are several ways to measure the effectiveness of a career development program. Below are some most common ROI measurements organisations can use:

• decreased recruitment and onboarding costs • increased productivity • improved quality of career development plans • increase in internally-filled roles • higher engagement levels • decreased absenteeism and presenteeism • minimising attrition of high potentials HCAMAG.COM 21

COVER STORY LEARNING & DEVELOPMENT

Special Report – Case study: Hilton With several industry accolades under its belt for outstanding training initiatives, Hilton Hotels of Australia has put L&D on top of its corporate agenda. Human Capital talks to Richard Todd, regional director of human resources at Hilton Worldwide, about their initiatives

Lifelong learning 22

HCAMAG.COM

Human Capital: How does Hilton keep track of the training needs and skills gaps within its workforce? Richard Todd: Hilton identifies training needs and skills gaps at various times in the employment cycle. Each new team member that joins the Hilton team is provided with a job skills check list, specific to their position, which provides the road map to mastering their new position. When reviewing these requirements with their manager during the onboarding process, a plan is set in place to fill the skills and competency gaps as soon as possible and usually within the first three months of employment. Prior to the completion of the qualifying period, the team member attends a formal meeting with their manager to review their current performance and capability in the role. This often identifies immediate and longer term skills, development needs and, as a consequence, a capability development plan is put into place. In addition to daily recognition and feedback, a formal Annual Performance Review is conducted to assess individuals’ ability to achieve pre-agreed performance and development goals, as well as assess the ability to demonstrate specific competency behaviours. An outcome of the annual performance review process is an agreed performance development plan, which identifies training needs and skill development activities. If a team member has mastered the skills in their role, and are aiming for career progression to the next level, we identify what skills gaps exist between the current and target position and start preparing for the next opportunity – potentially leading to a promotion. Promotion often means more responsibility and a new skill set. For the promotion to be a success, training needs and skills gaps are identified and mapped against the relevant Hilton learning program to upskill the team member as soon as possible. As part of our annual business plan preparation, each of our hotels conduct a training needs analysis and audit of mandatory brand training programs, which have been conducted against the various departments, to map out potential skills gaps and training needs. This also assists with ensuring we allocate the right level of funding to meet the hotel team’s development needs.

HC: Can you outline where and how Hilton requires special focused training initiatives? RT: We are constantly assessing our performance based on identified performance indicators – including our guest experience. If we see a drop in any of these measures we assess if this is training-related before implementing a focused training initiative. An example of this type of initiative is the implementation of a new learning program called ‘Make it Right’. The program has been designed to empower our team to rectify any experience that does not meet our guests’ expectations. It’s a scenario-based learning program, which requires the team to select from various resolutions and link their choices to a potential guest rating of the experience. We make sure that our team members are provided with opportunities to obtain the knowledge and skills to do their jobs effectively today, and to continue to develop themselves for tomorrow. HC: What sort of metrics or analytics do you look at to be sure your L&D initiatives are hitting the mark? RT: Each of our learning initiatives has a ROI identified and these vary depending on the program. For example; it might be an increase in a department or hotels SALT scores [Service And Loyalty Tracking], or a specific measure associated with our Team Member Engagement Survey or turnover metric. One of our newest learning initiatives, designed to retain high performing talent has two clear measurements: • The level of competence participant leaders have to conduct an effective career conversation. This level is measured both prior to and after the learning and then it is compared.

• The number of participants who had a structured career plan. This number is measured both prior to and after the training and then compared. HC: Do you believe social media and new technology will impact on the way people learn in the workplace? RT: Technology is certainly allowing our team members to better manage their individual learning needs at their own pace and in their own time. Using technology we are able to deliver consistent learning content 24 hours a day, seven days a week to meet each of our hotel departments operating hours and learning requirements. Conceptual knowledge, compliance training and systems-based learning topics have proved to be good content to deliver through technology-based learning systems. Hilton Worldwide has an established online university (HWU), which is comprised of five virtual colleges, each sponsored by a Hilton Worldwide executive committee member. The colleges collectively offer more than 2,500 courses and the curriculum includes general content for all team members as well as tailored content for specific audiences. HWU courses are delivered in a variety of ways including e-learning, webinars, e-books, articles, classroom training, and recommendations for on-the-job development experiences, social learning and apps. We are striving to make use of the latest advancements in technology, including iPads, mobile devices and social networks, to bring learning to team members across the globe in ways that are quick, relevant, engaging and easy to access. E-learning courses are available to any team member who has an interest in online learning. Currently a wide variety of courses are available in French, Spanish, German, Chinese, Turkish, Italian and Dutch.

HCAMAG.COM 23

COVER STORY LEARNING & DEVELOPMENT

Special Report – ROI of L&D

R H

from the other side of the fence

With HR increasingly expected to speak ‘the language of business’, how effective are your budget and ROI conversations with the CFO? Adrian Smith – an accountant himself – provides some insights into how to measure the ROI of your L&D initiatives How many times have you wrestled with how to justify to yourself and the accountants of the world your L&D spend or even why individual programs have merit and justify the investment in them? If you are like us, the answer is probably a lot! Well, we thought it was time to work with the enemy and sat down with our CFO to nut out how best to establish a method of calculating ROI on L&D that could assist a client in managing their considerable spend for a leadership program. The result looks like this: Refer to Table 1 This model was specifically developed to apply to a formal training program, but with some minor changes can apply to any other learning intervention. It looks quite simple, which for an accountant and a spreadsheet is a novelty, but let’s look at the components.

BASE DATA

This information needs to be collected prior to the commencement of the program as it is the baseline data from which changes and improvements are measured. It should be available from any reasonable HR system. If not, then careful estimates should suffice.

PROGRAM COSTS

Again, these are quite straightforward, particularly the 24

HCAMAG.COM

Table 1 BASE DATA • Attendees • Average salary • Annual turnover of this cohort

PROGRAM COSTS • Development costs • Delivery and facilitation costs • Administration costs

TOTAL COSTS/INVESTMENT

PROGRAM BENEFITS • Employment costs - Savings from increased retention • Behaviour change/improved performance in the role

TOTAL PROGRAM BENEFITS

ROI

development and program delivery costs; however, administrative support often gets forgotten, so it may require some work by the accountants to calculate these.

PROGRAM BENEFITS

It’s no surprise that this area is harder to define and measure than program costs; however, our CFO is

comfortable that benefits should accrue in two distinct areas – employment costs, and some bottom line impact. We are of the opinion that whilst there are a number of employee benefits – including improved attraction strategies and Employer of Choice opportunities, improved performance management and training efficiencies – the main measurable benefit in employment costs are generated from greater employee engagement and therefore retention. This can be measured in the longer term through statistical data from staff attending these types of programs. However, when looking at specific programs in the short term, then using employee opinion surveys and asking specific questions about intention to stay will provide useful insights and the data to inform these calculations. In relation to behaviour change/improved performance in the role, the opportunity exists to track this by measurable performance changes against relevant KPIs. Just like hard statistics on retention data, it may take some time for these benefits to work through into hard results, but if behaviour changes are measured through some survey mechanisms (360-degree survey, manager’s report, etc) it is possible to very quickly identify quantifiable benefits as the average behaviour change measured should drive equivalent value gains from each person’s salary. Now let’s plug in some hypothetical data (which broadly reflects work we have been doing with our client). Refer to Table 2 Whilst this is a reasonably significant program which means that development costs are amortised over a large cohort of participants, the impact of the program is to show a very positive ROI that easily meets the investment criteria of most organisations, particularly as the return takes place in months rather than years. Also, the ROI would be even higher if subsequent years’ productivity improvements were also accounted for in the calculation.

CAN I APPLY THIS TO A PLANNING DOCUMENT?

The obvious, easiest way of running these calculations is to allow time for longer-term benefits to accrue and be measured through actual retention rates and KPI improvements. In the more immediate period after the program, say 2–3 months, we are confident that wellconstructed and targeted surveys will also give great insights into the measurable benefits of the program – the ROI. It is not appropriate to seek significant L&D funds without this type of calculation and validation; however, it is not so easy to do any ROI calculations before the event as they require a number of informed assumptions. When looking at the employee costs calculation when considering new programs it would not be unreasonable to anticipate even a modest 20% reduction in annual

Table 2 BASE DATA • Attendees

240

3-day program with 20 attendees per program

• Average salary

$145,000

Including on costs

• Annual turnover

17%

Based on last 12 months’ (estimated) data

PROGRAM COSTS • Development costs

$48,000

• Delivery, facilities and facilitation costs

$355,000

• Administration costs

$70,000

TOTAL COSTS/INVESTMENT

$503,000

PROGRAM BENEFITS • Employment costs – Savings from increased retention

$354,000

Based on 20% reduction in annual turnover and replacement costs of 30% on annual salary

• Behaviour change/improved performance in the role

$418,000

1.2% – based on the anticipated average behaviour change measured from postprogram surveys which drives equivalent value gains from a person’s overall salary

TOTAL PROGRAM BENEFITS

$772,000

ROI

53.38%

turnover. This can then be applied to the number of people in the cohort, historical turnover rates, and a calculated (by the accountants, again) cost of replacement based on annual salary. If this cost of replacement is not available or easily attained then general research data may be required. This often comes in at about 30% of annual salary costs, and for senior staff – as in the example above – the figure could be much higher than this. When estimating productivity improvements, it is best, if possible, to refer to similar programs run within the organisation – or if this is not available then general research data may have to be used. It is worth noting, however, that as shown in the example above, a small improvement in productivity or outputs does go a long way towards generating a very positive ROI for L&D that should satisfy even the toughest accountants!

A WORD OF WARNING

The calculations in the model are really quite simple. The very basis of the model and therefore its accuracy, usability and credibility, is the inputs to the benefits section. It will be critical to work with key stakeholders, including education providers, organisational leaders and finance staff to ensure that actual data is used wherever possible. In reality, the first few times the model is run you may well have to rely on estimates and general market research; however, as you build up an internal database of results achieved, the accuracy and reliability of input figures will grow exponentially – again, satisfying even the most hard-nosed accountants!

Adrian Smith is a principal of Talent Mondial Australia (and an accountant) and can be contacted at adriansmith@ talentmondial.com.au

HCAMAG.COM 25

COVER STORY LEARNING & DEVELOPMENT

Special Report – Learning transfer

DON’T DROP THE BALL

Best practice in learning transfer

With only 15–20% of the learning investments that organisations make actually resulting in work performance change, what can be done to improve matters? Julie Pigdon outlines the essentials to become a learning organisation

The ability of organisations to learn and improve faster than their competitors is thought by many as the only sustainable competitive advantage in the business world of the 21st century. The bottom line is becoming critically dependent on people working well together. However, becoming a learning organisation is a complex and elusive apparition, requiring simultaneous involvement and commitment from the trainer, the learner, the workplace and the organisation. Only about 15–20% of the learning investments that organisations make actually result in work performance change (2009 Wilson Learning Worldwide Research Report). This, of course, means that 80–85% of the learning investments organisations make have no effect at all. This statistic is well understood by the L&D profession, as is the theory of learning transfer. The research seems to imply, in general, that training works when the: • trainee is ready and motivated to learn • training is aligned with organisational goals and designed for learning transfer 26

HCAMAG.COM

• workplace is supportive and encouraging, in terms of realistic opportunity to practice the learning and receive constructive feedback Achieving this is harder than it may seem. However, there are many effective techniques and tools available to enhance the learning transfer from OD programs. One that is widely recognised is the appropriate use of psychometric profiling, as it gives the learner and their manager something tangible and objective to refer to in the workplace when required, once the program is complete. When strategically and consistently applied, psychometrics also give you a common workplace language, which helps minimise misunderstandings, misinterpretations and conflict at work that often snowball into bigger issues if not dealt with proactively. Valid psychometrics and 360-degree feedback tools further enhance learning transfer by providing objective data for you to benchmark, measure and monitor performance improvement over time.

It is this data which will help you calculate your ROI and secure senior management support – this is pivotal to becoming a learning organisation.

TIPS FOR BEST PRACTICE

TMS hosted five complimentary forums for the OD community Australia-wide in February 2012. The purpose of these forums was to facilitate a TMS community of practice and to collect techniques and tips on how to improve the rate of learning transfer from OD programs. The techniques most commonly agreed upon include:

1. Aligning training with organisational goals

This was seen as crucial by most OD practitioners. Without the training contributing to organisational success in real terms, you will not get the ongoing senior management support required to resource your programs, and your ROI will be negligible. Some steps to achieving this include: • Questioning the premise for the program – why have it in the first place (appreciative and evaluative enquiry can be employed here)? What is the initial issue? Is training the solution? What type of training is the best solution? • Prioritise business imperatives and select the right type of training for each, if training is the solution. Cost effectively plan, implement, and measure and monitor training according to business imperatives. Factor in foreseeable problems and issues. • Evaluate as specifically, objectively and quantifiably as possible the impact the right training will have (ie, reduced error rate, reduced costs due to increased productivity, increased efficiency due to improved communication, etc) • Do a cost benefit analysis • Gather relevant data for ROI analysis and continuous improvement • Know what success looks like – have measurable, objective KPIs in place

2. Using real life problems or simulations in your workshops This makes it far easier for learning transfer to take hold, as the conceptual leap from the workshop to the workplace is so small. Furthermore, using real life problems makes it far more likely to gain senior management backing for your programs, supervisor support back in the workplace, and motivation to apply the learning. As a general rule, the more relevant the training to the real workplace environment, the more likely that learning transfer will occur.

3. Implementing a coaching/mentoring system after the training is complete This strategy was also mentioned at each forum as a way for keeping learning on the agenda. Also acknowledged was a coaching program for supervisors, to enhance skill

As a general rule, the more relevant the training to the real workplace environment, the more likely that learning transfer will occur – JULIE PIGDON levels whilst fostering understanding of and empathy for the learner. Supervisors can be coached to: • provide frequent, encouraging and constructive feedback as learners try out their new skills • see mistakes as learning opportunities • acquire and model new skills or behaviours in their own work, to lead by example Interactions in the workplace that encourage participation and collaboration will also enrich learning transfer, because learning consolidation involves a high level of social interaction, where learning goals are shared, experiences discussed, problems solved and ways of doing things demonstrated. Indeed, in some programs, participants may learn more from each other than from the trainer. This is especially true if the trainee is motivated, open and ready to learn, focused discussions are encouraged, and the training is meaningful to them. Choosing the right trainee for the right training at the right time is critical to the learning transfer process.

4. Allowing the opportunity to practise in the workplace The opportunity and need to apply knowledge and skills immediately to trainees’ jobs has been repeatedly emphasised as pivotal to effective learning transfer (Ford et al., 1992; Lim, 2000, 2001). The 70/20/10 formula states that 70% of learning occurs from real life and on-the-job experiences, tasks and problem solving. Factoring in the opportunity to practise is imperative for any effective, sustainable learning and development plan.

CONCLUSION

In summary, a strategy for learning transfer within an organisation is multi-layered; there are numerous techniques and tools at your disposal. Our forum discussions revealed the techniques used by the Australian OD community for keeping learning on the agenda and also demonstrated their commitment to continual improvement.

Julie Pigdon is the business development manager at TMS. For further information visit tmsoz.com

HCAMAG.COM 27

COVER STORY LEARNING & DEVELOPMENT

Special Report – Soft skills

THE HIDDEN STRENGTH OF

Soft Skills How can development of so-called ‘soft skills’ be used to unlock the potential of middle managers, and also foster a culture of innovation?

Technical competencies often get the job done, but soft skills – such as good work ethics, emotional intelligence and the ability to communicate effectively – can make a more lasting impression, setting a business apart from its competitors. As business becomes more social, soft skills are becoming increasingly important to help enhance relationships, performance and add value to work.

RE-ENGAGING THE ‘FORGOTTEN FOLK’

While employees at all levels of business benefit from soft skills development, it is the middle managers – traditionally 28

HCAMAG.COM

the ‘forgotten folk’ in the corporate hierarchy – who stand to benefit most. They play a crucial role in delivering results, supervising and engaging the bulk of the workforce – yet they also experience excessive stress, disengagement and a high degree of attrition as a result. As companies shift their business strategies to remain competitive, mid-level leaders are the ones executing corporate mandates and agendas and making bottom-line decisions about cost, quality and efficiency for companies every day. “Middle management is the most important part of a company’s workforce as they are the ones who actually get the work done,” says Vishal Nagda from Lodha Group.

Yet more often than not, middle managers are caught under pressure between delivering strategic objectives set by senior executives and managing line managers. “They live in an ‘in-between’ world where they get criticism from employees for not being attentive to their needs, or investing time in helping them perform and grow; and at the same time, face pressure from their leaders to deliver on stretched goals with limited resources in an environment of uncertainty,” says Mira Gajraj Mohan from Towers Watson. While they can also be first in line when organisations look to reduce their head count, Ben Willmott from the Chartered Institute of Personnel and Development (CIPD) says it is also important to remember the crucial role these managers play in managing change, translating the objectives of senior managers into actions, and motivating others.

BETTER SOLUTIONS, DIFFERENT THINKING

How can organisations unlock the potential of their middle managers, and enhance ‘soft skills’ across the board? Part of the solution may be to rethink the concept of ‘soft skills’, suggests Sandra Banister, director of The Leadership Circle Asia Pacific. She cites two examples of why a rethink is required: Perhaps the employee has had a fresh perspective on an issue in a meeting, but didn’t feel comfortable bringing it up; alternatively, perhaps an employee has thought of a different approach to streamline multiple work processes, but the suggestion wasn’t heard. Banister says that traditionally these approaches have been considered ‘soft skills’ that would sit uncomfortably in the fast-paced, hard-nosed corporate sphere. But now, in an increasingly complex business environment, new approaches are required to find better solutions to problems. “One of the ways we can do this is by tapping into and nurturing a softer quality of mind in the workplace,” she says.

CHAOS REQUIRES CREATIVITY

Faced with an increasing rate of change and surrounded by constant flux, we are hyper-connected, required to master multiple operating systems and processes, and expected to become more efficient. In order to succeed, the old rules and ways of interacting with colleagues and clients are becoming less and less relevant. Instead, we need to innovate, to be creative in our approach and to use our intuition, otherwise known as developing soft skills. “By definition, the hard skills we see as key business attributes are the specific, teachable abilities that can be measured,” says Banister. “Hard skills require a certain level of intellect, an ability to analyse and explain things clearly, as well as qualifying a person to do their job.” Examples of hard skills can be as basic as our ability to

FURTHER TIPS TO INSPIRE MIDDLE MANAGERS Towers Watson has the following recom mendations for improving middle ma nagers’ engagement and performance:

Refocus rewards aw ay from personal pro duction and toward team production an s d team member gro wth and developme goals. nt Reconfigure job s to allow more time to focus on people. Equip managers better to be more eff ective at identifying responding to indivi and dual employee differe nces. Inform managers about the employee learning opportunit available (eg, build mo ies re and better sources of information into the manager self-serv ice portal, enable the m to design projects and assignments to suit individual team me mbers). Be more effectiv e at delivering inform al rew ard s (eg, recognition). Give managers mo re control to encoura ge innovation in how work gets done in the ir work groups.

type and do equations, but includes our ability to use computer software and find solutions to problems. It also encompasses formal qualifications in any given industry, such as accounting, marketing or project management. On the other hand, we need well-developed soft skills to create a balance between the two. This is because simply analysing the situation will no longer achieve the best results, so we need to innovate, be creative, think differently and use intuition at work. Banister says that, as early as the mid-1980s, authors such as Peters and Waterman (In Search of Excellence) suggested that modern leaders’ over-dependence on analytic thought and quantitative analysis was a principal cause for the loss of worldwide pre-eminence, as reflected in stagnating productivity, obsolete machinery, and inferior but more expensive products. “Examples of softer qualities of mind include our attitudes towards others, our willingness to try new things HCAMAG.COM 29

COVER STORY LEARNING & DEVELOPMENT

Special Report – Soft skills as well as impacted upon others, and different approaches you could make to affect the outcome.

2. ACTIVE LISTENING

It’s about becoming more conscious of your thoughts and actions in the workplace and remembering that everyone has a helpful viewpoint to try and understand – SANDRA BANISTER in different ways, observation and intuition, and our ability to reflect and understand an issue before providing an answer,” Banister adds. Soft skills are not taught as part of our education and are not easily measured. To date, our ability to develop this attribute has been reliant on an individual’s personality. However, with daily practise and by being conscious about thoughts and actions, it is possible to develop softer qualities of mind in the workplace.

Banister outlines five soft skills for the workplace, and how to develop them in yourself and others:

1. FOCUS ON YOURSELF A. What is it? This is about being more perceptive to how

you think and act towards others. B. When to use it. As much as possible. By being aware of your actions and reactions, you’ll become more sensitive to your environment and will understand how well you interact with others. C. How to develop it. Integrated 360-degree feedback tools such as those offered by The Leadership Circle (visit theleadershipcircle.com) offer a world-first approach that shows how others perceive you and where to make changes to your own interpersonal and leadership style. You can develop this ability yourself, by reflecting on each day, how your actions and thoughts have been received by colleagues 30

HCAMAG.COM

A. What is it? This is when we focus on actively hearing

the message being communicated and understanding the question, rather than providing a fast answer. B. When to use it. In meetings, on the phone or whenever talking to business contacts you can practise active listening to increase the effectiveness of your conversations at work. C. How to develop it. Be sure to ask questions to clarify what is being said. You may also want to paraphrase to show you understand the other person, such as, “so, you’re saying that in order for this project to get to the next stage, you need me to find new ways of communicating with our stakeholders before the end of the week.” Practise this technique at the end of a meeting, by getting everyone to agree on the decisions taken and actions required.

3. OBSERVE A. What is it? To see the big picture, you need to observe

others as well as be able to synthesise a number of ideas into a single concept. B. When to use it. Show genuine interest in your colleagues in the lift each morning and evening. Another good opportunity is to observe during meetings, when individual personalities are on display and people can clash due to differing perspectives and poor communication. C. How to develop it. Be aware of how others feel around you by monitoring your body language as well as how people relate to your own actions, thoughts and ideas. Try to understand your colleagues as individuals who are making sense of their world – and how their treatment makes you feel as well as how you may impact on their experience. If you wish, you can talk to a colleague to try and understand their perspective better.

4. BE FLEXIBLE A. What is it? This is our ability to see multiple points of

view rather than being fixated on a particular process, and being willing to try new things in different ways. B. When to use it. Try using this skill in a tense situation and you will be surprised with the results. In your performance appraisal, for instance, your manager might be pleased to find that you can suggest new approaches responding to their feedback. And if you have reached an impasse with a client, a non-traditional but creative attitude can help clear the obstruction. C. How to develop it. Keep in mind that everyone has a

helpful viewpoint – there are no right or wrong answers. Remember that you, too, are a work-in-progress, and while you are trying to make sense of your own behaviours and those of others, you are by no means the authority on every topic – we learn constantly from those around us.

5. BE ORIGINAL A. What is it? This is when you can use your imagination to find non-conformist solutions to problems, see outside the box, and can synthesise multiple ideas into a single concept. B. When to use it. The opportunities are endless! You may find systems improvements in your day-to-day tasks, encourage fresh perspectives during a brainstorm session, or want to communicate your ideas around enhancing the culture of your organisation. C. How to develop it. Try and find new ways to approach a topic. Ask curious questions at a meeting or draw a mind map of ideas you’ve identified during a brainstorm session. Often, by slowing down to think, new possibilities will become apparent. Once you can see these opportunities, your next challenge is to bring them to life for your colleagues by talking about them with clarity and vision.

A MORE CONSCIOUS YOU

“Whether you choose to actively practise one or all of these softer qualities of mind, it’s about becoming more conscious of your thoughts and actions in the workplace and remembering that everyone has a helpful viewpoint to try and understand,” Banister says. Just a few changes to your interpersonal style and you can begin to chart corresponding changes in your colleagues. Innovation and creativity will help build better working relationships with your managers, peers, clients and business partners, and add value too. If you want to succeed in an increasingly complex business world, taking these steps towards developing your soft skills will help provide a good balance to your hard skills, putting you on the path towards more evolved leadership.

HCAMAG.COM 31

COVER STORY LEARNING & DEVELOPMENT

Special Report – Essential HR skills

Watching the figures HR’s days as solely a transactional function are long gone – yet with fresh strategic responsibilities come new skills HR professionals need to master early on. From finance to business analytics and projections, HR is dealing with numbers more now than ever before 32

HCAMAG.COM

The evolution of HR continues. More and more professionals in the field of people management are taking on strategic roles – in both multinational and local Australian organisations. They are taking seats in boardrooms and C-suites and are being asked to contribute to overall business strategy and direction. That’s great news for the function and profession, but it’s also a great responsibility – one that requires a new and different skill set. HR professionals in those roles, and those aspiring to them, can’t simply bring their experience in people management and believe that will be sufficient. They now need to speak the language of business, and that means understanding its other functions, including the ins and outs of finance and logistics – to name just two. They also need to have the same cost-benefit analysis skills as their colleagues when it comes to building rationales for different strategy options.

NEW ROLE, NEW TOOLKIT

The elevation to strategic positions has naturally created a new role and responsibility for those directly affected. But Sumeet Salwan, vice president of HR, Southwest Asia and Australasia, Unilever, says the evolution also creates greater responsibilities for professionals at all levels of the HR food chain. “It’s equally true everywhere,” he tells Human Capital. Of all the ‘new’ HR needs, it is the need to “become bilingual” that stands out most – but that’s not bilingual in the traditional sense. “The ability to understand business and the language of business is crucial,” Salwan explains, describing the concept alternatively as “profit and loss language”. Salwan says the ability to understand the value chain of business is essential for anyone hoping to be involved in that process. “You need to understand what makes money and how, before you support or drive strategy,” he points out. There has been an increase in opportunities for HR to exhibit its strategic contribution in recent years, especially in the areas of M&As, downsizing, rapid expansion, globalisation and the aggressive talent war. Still, there is work to be done in terms of HR digesting business intelligence and translating that into opportunities for the business to capitalise on or provide alerts to avoid obstacles. As revealed in Human Capital’s remuneration review (issue 10.9), hot jobs in HR (reflecting in-demand skills), include talent management (thanks to demand for flexible labour strategies), HR governance, risk and control, HR shared services, change management and strategic resourcing. Tying it all together is business analytics. Emma Hogan, director of human resources at Foxtel, told HCTV that as a matter of course, HR should know

in-depth about the people issues: what your data is telling you, what your turnover statistics are, what your talent retention plan is, what your succession rate is, remuneration costings, compensation claims, and so on. “All those sorts of things form the basis of what we do, but, more important than that, it’s the cultural work, establishing ourselves for the next phase: what structures we’ll have, what governance frameworks we’ll have. Those sorts of discussions are happening all the time.” Hogan adds her role as HRD is not so much about the ‘doing’ but rather about the planning and due diligence beforehand. The next phase is where buy-in from the team is obtained, and “everybody starts to evolve those plans and the rest of the team gets involved in the actual doing,” she says. Toronto-based business consultant Donald Cooper, lists some simple but powerful tools HR can take on in order to move ahead. Most importantly, he argues the “mathematics of profitability” is the biggest stepping stone. This refers to the simple addition, subtraction, multiplication and division of key figures to determine what makes money and what doesn’t. He says it’s often very simple calculations but they are still misunderstood in business. “HR needs to understand how a 5% increase in prices could translate to an 80, 90 or 100% increase in the bottom line,” he tells Human Capital. He also lists skills in marketing and leadership as essential for any HR professional looking to add real value to their business.

FURTHER AHEAD

Developing these skills throughout the majority of the profession in Australasia is a natural step in the evolution of the function – but it’s also a vital one, Salwan says, if the profession is to truly reach its potential. He hopes to see a future in which HR is not just a supporter and executer of business strategy, but a major driver of it. HR is still a relative newcomer to many boards and C-suite decision making committees – and it’s often more passive as a result. But Salwan urges professionals in this category to take a leaf out of the books of other specialist players at that table. “Everybody there drives the choices [of the business] because of their unique understanding of their function,” he says. “Hence the person who understands people should be the driver of the strategy, not just an enabler.” This is already happening in some organisations, but it won’t change overnight for the majority where it’s not yet occurring. “You can’t simply pick it up when you are 45 years old,” Salwan says. “It has to be part of your DNA from the word go.”

BRIDGING THE GAP

The answer is likely to be a renewed emphasis on HR training in both traditional areas and broader business

THE SKILLS YOU NEED As HR seeks more exposure and responsibility at the top end of business, it’s essential to have the skills to follow through. Can you: Read and understand a balance sheet? Calculate the ‘mathematics of profitability’? Problem solve with limited resources or finance? Present a position in a language your non-HR colleagues understand? Foresee opportunities and obstacles?

HCAMAG.COM 33

COVER STORY LEARNING & DEVELOPMENT

Special Report – Essential HR skills What do you do for professional development?

I did my post-grad qualifications a number of years ago, so in terms of how I keep ahead now is through networking forums – keeping connected with other HR directors, attending conferences. I do find that my executive team – not all but some – I would turn to for coaching around the business side of things because, increasingly, HR has moved from an operational focus and perception of what HR is, to a much more strategic function.

I read a lot and I have a couple of targeted networking groups. But the important one for me is I established a mentor outside the HR field. It was important to have a mentor who has operated at executive level but in operational roles rather than pure HR roles. They provide broader business perspective. It helps to keep it real. Whatever is going to go out to the business is going to add value but is also articulated in a business language rather than an HR language.

I think people are starting to understand that to develop yourself you don’t need to attend a university course. There are a number of things, including seminars, or simply networking with other HR professionals in other organisations and understanding what is working for them. And we provide HR with stretch assignments, with the ability to lead global projects, and learn. You get to experience what it’s like to work in other parts of the business.

– Lisa Christy, director of HR, SAP Australia/New Zealand

– Ian Flemington, general manager – human resources, Canon

– John Francois, HR director, APAC, McAfee

management practices. Hogan – whose team picked up ‘Best HR team’ at the Australian HR Awards in 2011 – says she strives to combine a mix of skills and backgrounds in her team members. Nearly everyone in her team, she adds, has done more than one role in their career at Foxtel. “They have moved sideways or onwards or upwards or, if some people have gone into business, others have gone out of business and into our team. I think mixing up the skills and empowering them to do their roles and grow and develop is really key to the retention of the team. It’s key to the development of the team but also key to the success of the business.” The HR team members have been exposed to these other parts of business, so can bring those insights to the table in other circumstances. “We have all of our HR business partners sit in the business with the client group they’re looking after. They sit on the leadership team of each business, and I don’t think you’d be as effective if you didn’t do that.” Hogan herself sits on the executive and “has been far more effective while I’ve been sitting there than I was able to be before”. She believes HR’s presence is crucial – being up to speed with what the business issues are and really understanding what the business is trying to 34

HCAMAG.COM

deliver, for the whole company, let alone each of the business partners. “They might be working on a restructure, or they might be looking at an area the business needs to improve upon and always thinking, ‘well, how are our people going to fit around that?’ I just think if you’re not sitting with the business and you’re not working with them every day you’re not understanding what their core issues are and it makes it impossible to do the job.” She notes 40–50% of her team has delivered the company’s leadership program. even though it’s not their role, because they get to see a cross-section of the company. “They get to remember what we’re all doing, what our principles are – and it keeps everyone aligned. Developing skills and empowering people to learn and to grow has always been the key. That would be the approach I would take in any other organisation too.” Hogan adds, for personal development, nothing beats networking, both through professional HR networking entities like TalkPoint, and through her own contacts. “I’ve got a really good network. I’m often picking up the phone to other HRDs saying ‘I’m dealing with this issue, what did you do? Or, ‘can you give me any information?’ I’ve stayed fairly proactive as a member of our industry.”

COVER STORY LEARNING & DEVELOPMENT

Special Report – Student case study Case study – knowledge is strength Human Capital talks to Justin Field, talent and capability program manager (Asia Pacific) at Oracle, about his decision to combine his Master of Organisational Development and Strategic HRM with an MBA from the University of New England Human Capital: Can you briefly outline where you are at in your career and why you have opted to return to post-grad study? Justin Field: I have had successful careers in both consulting and software design; however, in 2009 I made the decision to embark on my third career choice, HR. I opted to return to post-grad study because I believe it’s important to have that as a baseline qualification. My experience indicated that if I wanted to be taken seriously in my profession and operate at the highest level, I needed to have a Masters under my belt. Post-grad study has given me a solid grounding for my career, particularly in learning and development and organisational development.

HC: How did you find the course content at UNE? Did you find the subjects undertaken were relevant to your current work (or perhaps for your future work)? JF: I wasn’t comfortable committing to domestic on-campus study and the University of New England offered a HC: You have already completed a Master flexible Distance Learning experience of Organisational Development and which made it much easier to manage my Strategic HRM. Can you outline how and current work commitments. As long as why you made that choice for your you stick to your timetable, Distance post-grad study? Learning is a very convenient way to JF: I chose to study the Master of manage work and study and there is Organisational Development and Strategic always constant access to your lecturers HRM as the course offers content that fits if you need it. well with my career goals and my current The University of New England course role at Oracle. has a great reputation and provides I wasn’t interested in pursuing the IR immediate insight into areas that are side of HR so I liked the fact that the critical for my role: change management, University of New England course offered communications management, papers that suited me and my needs and organisational behaviour, and executive that I could be more specific when leadership are all areas that immediately choosing my papers. add value to an organisation. It really helps to have education The theoretical background in executive assistance from your organisation and this leadership and processes of management is something that I was particularly increased my self-awareness as it helped grateful for at Oracle. Both my employer me understand who I wanted to be as a and manager were extremely supportive leader, allowing me to develop my in my decision to up-skill which really personal style and how I could reflect that helped me with my post-grad study. in my behaviour as a leader.

In addition to this, my study of accounting, economics and strategic management gave me the experience to better understand the positions of those in executive positions in my workplace. I was able to speak their language and gain better awareness of the business at a more strategic level. HC: You are now undertaking an MBA and are aiming to complete a dissertation related to OD and leadership. Can you tell us briefly about your MBA studies and how you believe an MBA will help your career in HR? JF: I’m currently investigating my own organisational dissertation which is helping to add value and insight to my studies so far. I chose to undertake an MBA to give me a really solid background in business, HR and organisational development. The MBA is extremely useful for my career in HR as it will give me the skills to contribute and add value at a higher level in a way that is beneficial to the business and more specifically, to effectively articulate the bottom line results of HR and leadership and development. HC: Any advice to other HR professionals looking to return to study? JF: There are three key things that HR professionals should take into account before returning to study. Firstly, choose an institution that appeals to you – it’s important that you feel comfortable where you’re studying. Secondly, don’t overlook studying by distance – you need to have discipline but ultimately, online interaction is just as good and allows for greater flexibility. Thirdly, a post-grad study provides a great opportunity to learn from and network with other HR professionals at a similar life stage. Personally, I found attending the weekend schools offered by the University of New England an excellent place to network with likeminded people. HCAMAG.COM 35

COVER STORY LEARNING & DEVELOPMENT

Special Report – Executive education

Have online MBA’s come of age? Should online MBAs be given the same weighting as those obtained through bricks-and-mortar institutions when it comes to candidate selection?

While not every university in Australia offers entirely online learning options for gaining a Master of Business Administration (MBA), simply Googling ‘MBA’ returns hundreds of options for studying the degree online. Faced with a candidate’s CV, are online MBAs worth the same as one studied in a classroom? According to the latest QS TopMBA.com applicant survey, in 2008 just 4.4% of prospective MBA students were primarily interested in distance learning and online MBA programs. The figure has now increased to 15.6 % in 2012. While opinions vary as greatly as the number of study choices available as to the worth of online MBAs, for one recruitment expert, online MBAs are not inferior. Instead, it’s up to the candidate to articulate their learning, applications, and its relevance to the role for which they’re applying. Employers and HR must also probe the candidate on their perceived ROI. “Businesses and employers will be looking at particular courses and practical case studies they’ve completed. Provided they’re able to articulate what they’ve achieved and demonstrate their work, I can’t see it [an online MBA] would be an issue,” says Adam Kolokotsas from Randstad.

AN INEVITABLE SHIFT?

Kolokotsas adds, in the online world in which we all now live, education and learning has caught up, and many people find an online MBA is the only option for further study in their time-poor lives. What’s more, many online programs create social groups for students to get together to complete projects. “It’s important to note online learning is very good at creating social groups and many proactively organise for their students to get together to work collaboratively, as would be the case in a traditional classroom setting, so they are bridging the gap,” Kolokotsas says. Yet bricks-and-mortar universities aren’t sold on the idea. Amanda Pyman, director of the MBA program at Monash University in Melbourne, says they do not currently offer online MBAs. Technology is used as part of a blended learning approach, but the program remains classroom-based. “We have what we call a cohort experience, which means students complete all of their MBA units with a group of like-minded students,” Pyman says. She elaborates their reasons are principally around the notion of collaboration, networking, and interaction in the classroom with people from different backgrounds – the sort of socialisation aspects that are the opportunities Pyman maintains can’t be achieved with an online MBA. Malcolm Kinns, head of college at Edinburgh Business School (the largest MBA provider in the world, according to Financial Times listings in 2012), concedes the online MBA doesn’t offer the opportunity to build relationships in a classroom environment, but maintains it does allow for collaboration and peer-to-peer relationship building in a number of ways. 36

HCAMAG.COM

Any discerning employer would seek to determine the experience, the academic performance of the employee, and what value that MBA can add

Top 10 tips for distance learning success 1. BECOME FAMILIAR AND READY WITH COURSE MATERIALS. Familiarise yourself with programs used for the course and purchase books listed in your first reading lists.

5. CONTACT YOUR INSTRUCTOR REGULARLY. Keep in touch with your instructor and regularly contact him or her with any questions that you may have.

2. SET A STUDY SCHEDULE AND STICK TO IT. This will help you keep up with the pace, meet deadlines and, ultimately, succeed.

6. TAKE PRACTICE EXAMS. Time yourself while taking practice exams so you know whether or not you are assessing an exam within the allotted time.

3. CREATE A WORKSPACE. Make a clutter-free, comfortable space with adequate light. Make this space your learning space and nothing else.

7. MAKE OR JOIN A STUDY GROUP. Many distance learning online programs can link you up with your classmates, which can be worthwhile, both academically and socially.

4. SET GOALS. And meet them. Your first goal may just be to organise your workload and that’s a great place to start, but set even bigger goals for yourself as you move on.

8. REWARD YOURSELF. Always having something to look forward to will most likely help you stay dedicated Source: www.topuniversities.com

“The Edinburgh Business School program has thousands of students studying around the globe. The opportunities for interaction are both broader and more varied than those that happen in the classroom and also reflect the more prevalent forms of communication we tend to find in the business world of today,” he says. There are several mechanisms for students to network and collaborate within the EBS MBA, ranging from formal discussion boards, to faculty blogs and direct interaction with students and lecturers. “Students are always afforded the option to ask faculty for direction and input, as well as encouraged to share and develop their ideas as a group,” Kinns says. Kinns adds EBS is constantly looking at new ways to make learning more flexible and accessible – for example with mobile learning. However, he says the core principles of quality, accessibility and flexibility, “remain core to everything we do”. Indeed, although EBS entry standards are just as rigorous as other providers around the world, there is a slight difference. EBS provides students with the option of completing subjects that lead to meeting the entry criteria, while also contributing toward the completion of the MBA. “A typical EBS student is aged 35-45, actively employed, and looking to formalise and enhance their practical knowledge,” says Kinns. “The flexibility of the course reflects the EBS philosophy of recognising talent who haven’t necessarily followed the typical path of MBA students.”

TRUE VALUE

In reviewing a resume listing an online MBA, or in discussing it during the interview stage, the experts agree on one thing – HR and line managers should unpack the value of the MBA to the candidate. “For me, the important question is not really whether it’s listed on their CV, but that any discerning employer would seek to determine the experience, the academic performance of the prospective employee and, ultimately, what value that MBA can add,” Pyman says. Accreditation is a key factor in probing online MBAs, and Professor Newton Campos, director of admissions, blended programs, at IE Business School, says some recruiters still see distance MBAs as a little bit questionable. “However, we are seeing companies now, in particularly hi-tech, internet and innovative companies, who prefer students from our blended MBA, rather than the face-to-face programs. “They [employers] say, ‘these are the kind of people I need and have the skills I need. They have proven their ability to be with family, to work and study at the same time’. “Attitudes are changing and the number of such companies is increasing.” Kinns agrees, and says employers now consider key traits of online students – such as self-motivation – as a bonus when considering graduates from reputable institutions. HCAMAG.COM 37

COVER STORY LEARNING & DEVELOPMENT

Special Report – Leadership development

Leading

&following

A leader requires followers. So why is all the focus given over to leadership and leading, with no mention of followers? Dr Hilary Armstrong looks to right the imbalance Most of us want to be leaders. Leadership is snazzy, even sexy. We hear that Gen Ys want leadership now (or a month after they land a job), and that climbing upwards in an organisation is the only way to be a successful human being. Our culture spends millions per annum researching the role of leader, but we spend little effort or money on leadership’s essential role-mate, the follower. Being a follower is definitely not sexy. Most agree that leading is a role rather than just a position and that it exists at all levels of an organisation and can be occupied by anyone. But following is also a role and can be occupied by anyone – in fact, it is by the majority of people in an organisation. Yet we do not hear about it. There is an abundance of leadership ‘role marketing’ in job titles that have sprung up at all levels of an organisation. There are executive leaders, senior leaders, department leaders, people leaders, area leaders and team leaders. The word ‘follower’ does not exist in any job title. However, it is present – and describes everyone else in the organisation (as well as all the people in the leadership roles).

WHY MIGHT THIS MATTER?

It matters because it disguises the authority assigned to people when they accept a leadership role, and 38

HCAMAG.COM

particularly how this authority shapes relationships. Think of being in the context of an organisational meeting, when the CEO comes into a room. The CEO is treated differently to an Executive Assistant who walks in. This difference (or deference) shapes the conversation practices and outcomes of the meeting. Likewise, the physical environment shapes the relationship; for example, the ‘C’ suite positioned at the top of the building with the view, or open plan spaces designed carefully around leaders sitting near the window; the same in learning environments with a teacher standing at the front of the room. This is neither good nor bad unless we are unaware of it, because without awareness of the authority that a title gives, a leader may perpetuate unproductive relations with people they are meant to lead. Power, status and authority all shape relationships in organisational contexts, and it is our awareness of the connection between roles, power and relationships that is important. Many people use their leadership role and its status for the good of others. They are the effective leaders, the ones who are aware that their success as a leader depends on their follower’s success. More often people given leadership roles are unconscious of the role difference, the entitlements that a leadership role gives them. They are the ones who are

Power, status and authority all shape relationships in organisational contexts, and it is our awareness of the connection between roles, power and relationships that is important

blind to the reality that their success depends on the success of their followers; who are unaware of their status and the privileges that accompany it, who forget the inescapable relationship between leader and follower. They are the ones who are likely to lead cultures of underground conversations, disengagement and disillusionment.

THE ROLE OF A FOLLOWER

You may have heard the phrase ‘influencing up’ as a euphemism used by people in a follower role to indicate the presence of a dysfunctional leader. Many people feel powerless in the face of a dysfunctional leader (in fact, it is one of the main reasons for changing jobs). They experience themselves, rightly or wrongly, as having no voice. Martin Luther King once said, “the problem of the age is not the strident voices of the bad people but the appalling silence of the good people”. There is a helpless silence that many people feel when they perceive unethical practices being perpetrated by a leader who also has the power over their employment and career. There is a lot of research into effective leadership. An effective leader is authentic, inspirational, mindful, relational, strategic, has drive, expertise and a results orientation. So then, what are the characteristics of an effective follower?

Successful ‘influencing up’ means the courage to speak up in the face of destructive behaviours, taken for granted custom and practice, or a clash of values. It can also lead to the courage to make personal choices about staying in or leaving a role. An effective follower requires the wisdom to know when to take a risk or not, when to speak and when to remain silent; to have the self-discipline to come to work, do the job and feel satisfied at the end of the day – even in the face of difficulties, knowing that one’s identity, value and success is not necessarily shaped by work. Importantly it involves having the ego-strength to not confuse one’s personal value with one’s aspiration and ability to climb the organisational ladder. We are all leaders and followers and there is much to be gained from recognising the inescapable relationship of these two roles. Loyalty and humility, quiet determination and diligence as well as acting with grace in the face of other’s seniority, are all characteristics that an ineffective leader might think about next time they are put in the role of follower. This would give them the much-needed capacity as a leader to walk in their followers’ shoes, to remember that leadership is essentially a role that is in the service of their followers – and that their success ultimately depends on this.

Dr Hilary Armstrong is director of education at the Institute of Executive Coaching. For further information visit iecoaching.com

HCAMAG.COM 39

COVER STORY LEARNING & DEVELOPMENT

Special Report – Leadership development Extroverted employees who speak up, take ownership and give direction to others are often earmarked for future leadership roles. Yet many successful business leaders, such as Bill Gates and Warren Buffett, are known for their introverted personalities. How can people with these introverted personality traits be developed?

PLAYING TO STRENGTHS

THE INTROVERTED

LEADER Not every great leader is an extrovert. Human Capital examines the strengths and weaknesses of ‘introverts’ and discovers how HR can support their growth and development

HCAMAG.COM

Introverted leaders can be more effective than their more extroverted ‘louder’ cousins in certain circumstances, according to business school academics Adam Grant, Francesca Gino and David Hoffman in their paper, Reversing the Extroverted Leadership Advantage: The Role of Employee Proactivity, published in the Academy of Management Journal. According to their research, extroverted leaders are more successful when leading passive employees. Introverted leaders, on the other hand, do well in an environment filled with proactive employees as they are better at listening and including employee feedback in decision-making. Introverts are known to lead with a quiet calm and are masters at bringing out the best performance in others. They improve the thinking of people around them – literally improving the way their brains process information – without telling anyone what to do. “They think before they speak which is so critical in this day of knee-jerk reactions,” says Dr Jennifer Kahnweiler, international speaker, author and executive coach. They are also able to build trust through one-on-one conversations, she adds. “Their considered responses convey depth versus breadth.” Such leaders also offer a sense of stability that can be an asset to an organisation, suggests Pushp Deep Gupta, managing principal, Korn/Ferry International Leadership and Talent Consulting. “They are able to get the organisation to elevate the level of thinking, especially to consider potential downsides to risky strategies and bets that it makes.” Whereas extroverted leaders sometimes go overboard by rallying the troops and ‘over believing’ their own point of views and stories, introverted leaders process data and information in a relatively slow and deliberate way.

KNOW THY WEAKNESSES

Introverted leaders face some unique challenges at the workplace due to their personality traits. For example, they typically would do less well on what many call the ‘Organisational Positioning’ cluster of leadership competencies, such as presentation skills and political savvy, says Gupta. “They might not be able to put their point of view strongly enough in organisations, which means that their true potential might remain untapped.” According to Gupta, introverts might lose out in the ‘race’ to the top in organisations, given that extroverted leaders might be ‘able to talk the needed talk’. Introverted leaders might also come across as being aloof and insular in the way that they interact with others, sending out unintended

impressions, which again might stand in the way of their overall effectiveness and progress. Introverted leaders are more susceptible to people exhaustion, and benefit from having some time out to recharge their batteries, says Kahnweiler. Negative impressions from not revealing much on their faces, underselling themselves, and work overload from not speaking up when they are overextended are some of the other issues that may arise. It appears the problem lies not just within organisations but also with society as a whole. Shaun McCarthy, CEO, Human Synergistics, says society – and especially organisations – reward the wrong thing. Citing David Rock’s book Quiet Leadership, McCarthy says society reinforces extroversion, “but when you look at most of the creative ideas, the revolutionary breakthroughs, they were made by introverts”. People who present as an introvert, McCarthy says, tend to be overlooked for promotion or be seen as somehow less successful in their field. “Whereas if you’re good at extroverting yourself, you will succeed,” he says. “We rule with the wrong thing; we reward people who are very good at networking, very good at creating relationships, good at ensuring they look good, but actually in terms of their levels of consciousness, and their impact on others, they might be missing the mark.”

SUPPORTING THEIR GROWTH AND DEVELOPMENT

Leonie Curtis-Kempnich, director of training and course development at Leadership Success, suggests that to redress the imbalance, current leaders need to correctly identify talent within the business based on more than just the person that sells themselves, by focusing on those individuals who have the right skills, attitudes and behaviour to be highly effective in a given role. “The key to doing this effectively is for those in leadership positions to really take the time to get to know their people so they can more readily identify: a) those more introverted personalities who may be interested in leadership roles; and b) of all those interested who may be the most suitable,” she says. Despite the traits that differentiate introverts from extroverts, Curtis-Kempnich believes the foundation for effectively leading people starts with high emotional intelligence (EQ), as opposed to an individual being extroverted or introverted. “High emotional intelligence means the leader has a real awareness and insight into their own and others’ emotions and drivers. A leader with high emotional intelligence is able to change their behaviour to suit the situation and the people involved,” she says. Therefore, a first step is to identify those introverted leaders who wish to progress their leadership skills; then provide an overview of the importance of EQ and identify those who possess it, or who are willing to develop it. Curtis-Kempnich suggests this can be done by identifying

Understanding introverts Seeking solitude

Introverts prefer quiet, private spaces at the workplace and enjoy managing projects on their own, or with a small and trusted group

Thinking first and talking later

Introverts are good listeners and like to think before they speak

Digging deeper

Introverts prefer depth over breadth, and like digging deep into an issue before moving on to another one

Staying calm and collected

Unlike extroverts, introverts are quiet and reserved, and do not desire to be the centre of attention

who of these potential leaders is prepared and able to be open-minded and willing enough to take on the learning of new concepts and accept honest constructive feedback on current practice; and then use this to reflect on their current practice in order to work out their development opportunities. “This identification might come through observation, coaching, mentoring performance reviews and feedback from other relevant stakeholders in the business,” she says. It is worthwhile for organisations to pause and listen to the introverts in their midst, says Kahnweiler. “Ask them questions, solicit their input on key decisions, and don’t rely on talking as the only tool of communication. Introverts appreciate having time to reflect on a problem or issue, so try connecting with them through writing.” During meetings, encourage balanced participation so that introverts have an opportunity to speak up, says Kahnweiler. Setting an agenda before the meeting also enables them to prepare in advance. Organisations can also help introverted leaders to develop their situational awareness, so that they can assess the levels of extroversion needed for different situations – again, the EQ element is critical. “Introverted leaders need to find forums which are different from those tapped by extroverted leaders, to ensure that they can articulate their points of view and opinions,” Gupta says. Curtis-Kempnich notes the danger of a one-size-fits-all approach to leadership identification and development is that everyone brings different strengths and weaknesses to the table. “However, in all cases the development of leadership skills must start with an individual’s willingness to know themselves and their own strengths and weaknesses for development efforts to become meaningful and relevant,” she says. HCAMAG.COM 41

COVER STORY LEARNING & DEVELOPMENT

Special Report – Case study: NetApp Case study – L&D culture is king

Being recognised as a Great Place to Work with a top ranking for the past five years is no mean feat. Kim Nixon, human resources manager, NetApp Australia and New Zealand, outlines the role L&D has played in business success Human Capital: What L&D benefits does NetApp offer employees? Kim Nixon: Company culture is important at NetApp, and part of this is ensuring employees benefit from a wealth of training to help them in their roles. NetApp is a provider of data storage solutions, a highly technical field of technology, so it’s necessary to offer a broad range of L&D resources for our staff. This is why L&D begins as soon as a new employee comes onboard. We provide a comprehensive induction program, to make sure every employee understands our products and solutions. As a global company, we are able to benefit from a myriad of global L&D resources. These can be both face-to-face and virtual. Instructor-led training sessions, operated both locally and in the US, are one of the cornerstones of our broader L&D program. Any employee can attend any session they wish, which allows them to broaden their view of the company, and help them to understand different areas of our business. We also offer employees an almost unlimited online learning portal, which includes resources to help with both technology and product knowledge, as well as ‘soft skills’ such as teamwork and effective communication. A key element of the NetApp culture is our commitment to keeping employees in the loop about current developments in the company and the industry. To achieve this, we developed our ‘Insight’ training program, which is targeted towards our technical employees and business partners, and provides an outline of industry developments. We also offer an annual ‘Foresight’ training event for highly technical staff 42

HCAMAG.COM

from within the company globally. This helps keep our employees abreast of future product direction, and enables them to bring this knowledge back to share within the local field. HC: Would you support an employee undertaking tertiary study? KN: We absolutely support our employees undertaking tertiary study in conjunction with their work. Motivation and enthusiasm are at the centre of our culture, and tertiary study helps to enrich this culture by stimulating and inspiring employees. Several of our employees are currently completing MBA programs, and we support their ambition to do so by providing US$5,000 pa towards their studies. HC: How do you assess the training/ educational needs of employees in the first instance? KN: The training and educational needs of individuals and teams are reviewed on an ongoing basis through regular informal meetings with management. We encourage management to regularly meet with staff in order to track their development continually rather than limiting this to once per year. We also assess the development of our employees on an annual basis through formal performance reviews. We believe the process of formally reviewing staff is an important way to monitor their growth, and identify any areas where training could be of value for them. HC: Do you believe L&D can be used to unlock innovation in employees? KN: Definitely, and this is extremely important for a company like NetApp. Within the company, there are many specialised roles that allow employees to focus their learning on a core area of interest within technology. This forms part of their broader career path, and is great for employee satisfaction, but it also becomes critical

Several of our employees are completing MBA programs, and we support them by providing US$5,000 pa for their studies – KIM NIXON in what we are able to deliver to customers. Because our staff are highly competent in their specialist areas, they are able to think outside the box and provide more creative solutions to our customers. A great example of these qualities in action has been our work for ING DIRECT’s ‘Bank in a Box’ solution. To develop a cutting-edge data storage solution for ING DIRECT, we worked collaboratively with our partner organisations and ING DIRECT to understand their company and their IT needs. The world-leading solution we developed gave ING DIRECT a strong competitive edge in their business.

HCAMAG.COM 43

TECHNOLOGY

HR and the cloud

Head in the

Research indicates HR professionals are still lagging behind in their understanding of cloud computing. Is it time to clear the air? What’s more dangerous? Too much knowledge? Or not enough? The cloud computing revolution proves both may be as bad as each other. When Apple co-founder Steve Wozniak – presumably a man who knows what he’s talking about – warned of ‘horrible problems’ that may be lurking beneath the surface of the cloud craze, people listened. Wozniak was outspoken about the risks he sees in cloud computing. “I really worry about everything going to the cloud,” Wozniak said at a seminar in Washington in July. “I think it’s going to be horrendous. I think there are going to be a lot of horrible problems in the next five years,” he added. The problem, Wozniak said, is that users effectively sign away ownership of data through the legalistic terms of service with a cloud provider. “I want to feel that I own 44

HCAMAG.COM

things,” he said. “A lot of people feel, ‘Oh, everything is really on my computer,’ but I say the more we transfer everything onto the web, onto the cloud, the less we’re going to have control over it.” In contrast to Wozniak’s possible ‘too much information is a bad thing’ bias, many HR professionals are in the opposing camp, seemingly oblivious to all that’s happening with cloud computing. According to the Sage Business Index for 2012, in which more than 500 Australian organisations offered up their opinions, just 53% of businesses had ever heard the term ‘cloud’ prior to the survey. Of those who had heard of it, the main barriers to adoption included: • limited perceived benefits • confusion about the potential savings or benefits

• uncertainty as to how to implement a cloud solution; and • a belief that their business ‘isn’t the sort that could make use of the cloud’

DEFINING CLOUD

Where to from here? A good starting point is a definition. John Hansen, Oracle’s JAPAC senior director, HCM applications development, notes Software as a Service (SaaS) and cloud “get thrown around interchangeably”, causing further confusion. “Cloud is just a different way to access human capital management [HCM] applications,” he says. “The best way to look at it is to contrast it. Instead of buying licences and hardware, and then running and maintaining those applications inside your own organisation, you instead subscribe to the actual SaaS, you pay so much per employee per month, and you let the service provider manage the software and the hardware.” Ari Kopoulos, national sales & marketing manager, EmployeeConnect, adds the cloud has become a metaphor for any technology and service located outside the corporate firewall and delivered remotely. “It covers any subscription-based service delivered in real time over the internet, that extends IT’s existing capabilities. Effectively you are relinquishing the management and capitalising on the benefit,” he says. Traditional enterprise resource planning (ERP) vendors have provided on-premise HR systems and processes for years. These were primarily ‘core’ HR systems, keeping track of employees’ personal information, and managing payroll, tax and benefits. The past decade has seen a flood of new vendors offering talent management applications for other HR-related activities, such as recruiting, performance management, career development, etc. Many of these have been developed ‘in the cloud’. Significantly, earlier this year the two major players, SAP and Oracle, each acquired a company at the forefront of HCM cloud technology – SuccessFactors and Taleo respectively.

CONCERN 1: SECURITY AND PRIVACY

When it comes to concerns about the cloud, Hansen confirms Wozniak’s comment around the security of sensitive data would fall in the top three concerns. “Security is a legitimate concern,” he says. “Every organisation is different and that concern comes from many different areas – for example, legislative concern. Every company also has a different appetite for risk. Security is one of the key contributors to a risk profile, and each company wants to work through that risk profile in their own way and get to the point where they’re comfortable with how the security is managed.” Oracle, like other ERPs, has a comprehensive answer to this. Hansen says Oracle’s security policy covers all bases. For example, information security, which covers ‘inflight’ and ‘at rest’ information – that’s when information is being

passed between the cloud and the customer site and when it’s at rest at different points in the process. Security measures include inscription, decription. Then there’s physical and environmental security for Oracle’s data centres and server environments. “We talk about embassy grade security – these are installations that look like an embassy – with armed guards and surveillance.” Not surprisingly, the human element is also covered, with strict business conduct and compliance regulations all employees must adhere to. Kopoulos adds concerns about security appear to be easing as the technology proves its robustness; however, privacy concerns are on the increase. “The major privacy issues revolve around location of data – offshore in particular, [as well as] segregation of data among customers and data integrity. And more and more there is concern about whether the data will be offered for mining by advertisers,” he says.

CONCERN 2: INTEGRATION

The second concern on the list – integration – involves getting access to information in the cloud and combining it with other pieces of information to get relevant insight into a company’s human resources. To take an example, a sales organisation may rely on a cloud-based recruiting solution, a different cloud-based L&D solution, a cloud-based CRM to allocate sales quota and territory, and finally a cloud-based HR system. The

Time for an upgrade? Peter Forbes, managing director of Navigo, suggests the only reasons why you should consider replacing your HRIS would be:

(1) A merger or acquisition, resulting in three different HR/

payroll platforms that you need to consolidate and rationalise. (2) You’re stuck on custom or old versions of the software, which is a dangerous trap, but it happens. Therefore there’s no upgrade path left for you so you may as well go out to market. (3) Your current system clearly does not meet your business requirements. Your business has changed and the system just won’t do what you want it to do.

These are NOT valid reasons for changing:

(1) You want better reporting out of your system. Every HRIS I’ve

come across has limited out of the box reporting. You need to find a good reporting tool and someone who’s great at building reports. (2) You’re not using enough functionality. This is not a system problem, but a lack of training in how to get the best out of it. (3) There’s something better out there... ‘if only we had XX’. Consider how well you have documented or designed your business processes first.

HCAMAG.COM 45

TECHNOLOGY

HR and the cloud to reuse components of their applications for different purposes – for example, if key employee information needs to be updated, the latest incarnation of technology around SOA is used. Oracle also builds in a co-existence opportunity. “This is where we provide out of the box capability to have different applications operating side-by-side – or co-existing in our terminology – and we provide the tools that are needed to have a single consolidated view of the data across two or more data sets in different applications,” Hansen explains.

CONCERN 3: AVAILABILITY

Security is one of the key contributors to a risk profile, and each company wants to work through that risk profile in their own way – JOHN HANSEN problem arises when there’s a need to analyse the sales force, work out who was the most effective, what the most effective recruitment sources were, and what L&D activities contributed to the highest achievers. Information will be required from all those disparate systems. “You’ve got to be able to get this insight back in a fashion where you can use it to run and improve your business,” Hansen says. Oracle’s applications are based on ‘open standards’ – meaning the data interchange into and out of applications does not require specialised knowledge and tools to access data. Service Oriented Architecture (SOA) allows vendors 46

HCAMAG.COM

Employers voice concern about not having control over the infrastructure and not having an IT person they can talk to instantaneously, so there’s a question over whether data will be available when it’s needed. While this will vary according to the facilities the vendor can provide, and also the service level agreements that manage and define what the service level will be, essentially this comes down to business continuity and disaster recovery. Oracle has what is called fully redundant facilities, which replicate the data at separate sites. “We have fault backup and fault data replication across those sites,” Hansen says. “It’s a comprehensive approach to ensuring our systems are up, they’re available and if there is whatever type of disaster, an information or physical disaster on-site, we have this fully redundant facility, located in another state, to keep things running.”

MIXING IT UP

It’s all well and good knowing the major providers are responding to client concerns, but that doesn’t alter the fact many have already invested significantly in on-premise applications. Can on-premise and the cloud mix? Kopoulos says the short answer is yes. Storage and bandwidth expenses are dropping at a remarkable rate, making cloud-based solutions a cost effective alternative; but this doesn’t necessarily mean a 100% cloud enterprise. “In fact, selling a 100% cloud-based business model to all is not taking into consideration the client’s needs,” he says. “In most cases, a hybrid solution will be preferred to maximise the benefits of existing systems, minimise any privacy risks with certain applications like payroll, while capitalising on the benefits of cloud-based applications’ scalability, faster deployment and business continuity.” Offerings will, of course, vary according to vendor. A company like Gartner, for example, is an advocate of the hybrid cloud, a mixture of on-premise applications plus cloud applications, which they believe will prevail for another decade. Private clouds are also being used for those companies running on-premise applications but may want to extend that capability into running their own private clouds inside their organisation. “A company’s private cloud has the characteristics of public clouds that vendors are taking to market … they’re

TECHNOLOGY

basically serving the customer inside their organisation with a highly scalable, highly elastic computing infrastructure,” says Hansen. A giant like Oracle offers a solution for all deployment modes – including single and multi-tenant public cloud environment, private cloud environment, and on-premise. Certain industries have either core business needs or security needs that will require on-premise applications for some time. Large financial services may not be ready to take their core banking systems and run them in a cloud environment; similarly defence organisations simply won’t take their applications and have them running in the cloud. “We’re not necessarily pushing customers to the cloud or on-premise – we’ll give them the options so they can make the best decisions for themselves,” says Hansen. What companies should avoid, however, is a piecemeal approach. For example, using one vendor for an e-recruitment system and another for e-compensation – disparate systems that are not truly integrated.

COST

Some further clarity is needed around costings. For on-premise ERP implementations 10 years ago, employers would be faced with a sizeable upfront licence acquisition cost, plus the implementation cost, and then an annual

maintenance cost. With a cloud based SaaS approach, fixed costs are lower. There’s an implementation charge at the start, and an ongoing service fee, which will remain steady provided it’s the same employee count, month-onmonth, for the life of the contract. Software, hardware and infrastructure upgrades and maintenance are handled by the vendor – another plus for many customers in terms of cost and time.

FUTURE

The future of HR apps appears to be less about cloud technology (the underlying platform) and more about big data processing, mobility, and social functionality, which will all be run on cloud-based platforms. Improved user interfaces with new cloud-based systems, which enable people to work the way they want to and allow for greater collaboration with formal and informal networks, means they are typically easier for managers, HR and employees to use than on-premise legacy systems. Kopoulos says tapping into this end-user motivation and engagement is crucial. “Software companies are looking at how users interact with software and listening to what they want. The savvy ones are saying, we need smart userfriendly applications deployed on smart phones driven by swipes. To support this strategy it means cloud.”

HCAMAG.COM 47

Finalists ollowing on from the overwhelming success of the 2011 Australian HR Awards night, the 2012 event promises to be another jewel in the HR social calendar. The Australian HR Awards recognises outstanding achievements by individuals and organisations across the people management spectrum. The finalists for the 2012 Australian HR Awards have been determined by following an in-depth research process to

verify nominations and identify the most deserving in the industry. The awards will be held as a black tie event on Friday 26 October, with fine dining and first-rate entertainment at the Westin Hotel Sydney. The host for the evening will be popular television personality Shelley Craft â&#x20AC;&#x201C; back by popular demand! For more information about this event and to book your table, visit hrawards.com.au

EVENT PARTNER

WWW.HCAMAG.COM

INDUSTRY EVENT AUSTRALIAN HR AWARDS 2012

Finalists revealed for HR accolades THE HUMAN GROUP Best CSR Strategy • Bupa Australia & Bupa Care Services • Citi Australia • ING DIRECT • Teachers Mutual Bank • Westpac Group

Human Group Pty Limited is a leading Australian Human Capital Management Company, based in North Sydney. Recognised as an industry leader for corporate procurement, the group specialise in managed services for learning, performance & talent and project event/venue management for large-scale change initiatives worldwide for blue chip clients. CONTACT Geoff Rosamond, Group Managing Director P: 02 8998 4900 E: geoff.rosamond@humangroup.com.au W: www.humangroup.com.au

PEAK HEALTH MANAGEMENT Best Wealth and Wellbeing strategy Bupa Citi Australia ConnectEast Johnson & Johnson Family of Companies • Monash University • Ramsay Health Care • • • •

PEAK Health Management is one of Australia’s leading and most successful corporate wellness companies. A dynamic organisation, we are energetic, innovative and forward thinking in our approach to corporate wellness. We are committed to being at the forefront of the industry. PEAK was established in 1995 and we believe that we are the first choice for corporate wellness in the country. We boast some of Australia’s leading business entities as long standing clients. CONTACT: Chris Rabba, General Manager P: 1300 360 107 E: chris@peakhealth.com.au W: www.peakhealth.com.au

LEARNING SEAT Best Learning and Development Strategy • • • • • •

AMP Horizons Brookfield Multiplex Citi Australia/NZ Cochlear CSIRO DHL Express Australia

Learning Seat, a division of News Limited, offers everything you need to successfully run a userfriendly learning management system that inspires and grows your business. We provide a library of over 400 online courses (in topics ranging from HR compliance, soft skills, PC skills, customer experience and sales), and best practice custom development capability. Today more than 350 companies of all shapes and sizes rely on Learning Seat to manage their online training and compliance. While we continue to add more features and refine the experience, our mission remains — to create and deliver exceptional content and provide our clients and users with an outstanding customer experience. CONTACT: Jason Bailey, Commercial Director P: 1300 133 151 E: enquiries@learningseat.com W: www.learningseat.com

EMPLOYEECONNECT Best Use of Technology • • • • • •

tlassian A Clayton Utz Compass Group Foxtel Parsons Brinckerhoff RedBalloon

EmployeeConnect is a recognised leader in the HRMS market in the Asia Pacific region. Our focus is to provide you with the ‘best of breed’ web-based HR solution that can integrate with any payroll engines. Together with our experience and extensive research, we thoroughly understand all areas of HR and know how to help you transform paper-based HR processes into an integrated, enterprisewide, human capital program delivering strategic, financial and competitive benefits. Our solutions are known for their flexibility and scalability that are easy to use and cost effective to implement. CONTACT: Ari Kopoulos, National Sales and Marketing Manager P: 02 8228 8000 E: info@employeeconnect.com W: www.employeeconnect.com

WWW.HCAMAG.COM 49

EMPLOYMENT INNOVATIONS (EI) Best Employer Branding • • • •

Apple IBM Woolworths Youi Insurance

When you’re responsible for a company’s workforce, you need reliable backup. We offer a comprehensive range of specialist HR tools and services, and have over two decades of experience advising both local and multinational companies. When you need professional assistance, from basic HR functions to complex legal issues, we’re here to help. We specialise in employment law, migration, payroll, human resources, recruitment and employee recognition & benefits programs. So when you ‘think employment’, ‘think EI’. CONTACT: Amanda Daff, Solicitor/National Accounts Manager P: 02 8030 8888 E: info@thinkei.com W: www.thinkei.com

HEMISPHERE Best Recruitment Strategy • Accenture Australia • Aegis Services Australia • Atlassian • Coates Hire • Deloitte • IKEA Australia • Medibank Health Solutions • Westpac Group

Our aim is to offer senior HR professionals a targeted search and selection service that values both the short term benefit of a successful placement as well as the longer term value of maintaining all relationships developed over the recruitment process. Our proposition is supported by four basic principles: • Open and reliable communication • Honest and constructive feedback • Robust and transparent methodologies • Access to relevant HR industry specific information CONTACT: James McConochie, Director P: 02 9267 5030 E: jm@hemispherehr.com.au W: www.hemispherehr.com.au

POWER2MOTIVATE Best Employee Value Proposition • • • • • •

Abott Australia Hilti Australia MSD NetApp Pandora SEEK Limited

Power2Motivate delivers the world’s best employee reward & recognition, sales incentive, customer loyalty and training solutions. We offer our clients easy and cost-effective ways to improve employee performance, inspire employee, customer and channel partner loyalty and assist in building brands and driving profits. We allow you to create, deploy and manage multiple recognition, incentive and training programs on any scale, delivered to a single department, the whole organisation or around the world to other corporate locations. We are a truly global solution, available in 14 languages and in over 125 countries, which gives us a global buying power and are the only company in the world to offer merchandise across all countries. CONTACT: Mark Robinson, General Manager – Asia Pacific P: 1300 853 542 E: mark.robinson@power2motivate.com.au W: www.power2motivate.com.au

FRONTIER SOFTWARE Employer Of Choice (<1000) • Cooper Grace Ward • Frucor Beverages Australia • McAfee • OBS • SEEK Limited • Trilby Misso Lawyers

WWW.HCAMAG.COM

Founded in Melbourne, Australia in 1983, Frontier Software is a global leader in Human Resource, Talent Management and Payroll solutions. Their flagship solution, chris21 sets the benchmark functionality and useability. With support offices in Melbourne, Brisbane, Sydney, Canberra, Adelaide and Perth and key global locations, Frontier Software is well placed to service their 1600 clients. CONTACT: Nick Southcombe, General Manager P: 03 9639 0777 E: sales@frontiersoftware.com.au W: www.frontiersoftware.com

INDUSTRY EVENT AUSTRALIAN HR AWARDS 2012

28 October 2012

Lifetime Achievement IN THE INDUSTRY

The highest honour and most coveted award at the Australian HR Awards, the winner of the Lifetime Achievement award will be announced on the night. This award recognises an individual who has made an outstanding contribution to the industry as a whole through visionary people management strategies and leadership.

ACCUMULATE Employer Of Choice (>1000) • FedEx Express Australia • Hilti Australia • P&G Australia and New Zealand • Suncorp Group

As leading specialists in corporate recognition, reward and incentive programmes, Accumulate has helped many top Australian organisations improve their workplace performance. We design, build and manage original solutions that engage and motivate staff, change their behaviour and ultimately help create a more successful culture. CONTACT: Alan Heyward, Sales and Client Service Director P: 1300 733 725 E: alan.heyward@accumulate.com.au W: www.accumulate.com.au

THE NEXT GEN HR Rising Star Of The Year • Emily Fraser, Deloitte • Moira Herbert, Nielsen • Jessie Hommelhoff, BHP Billiton Manganese • Kaisser Khater, Officeworks • Courtney Visser, Accor Hotels - Sydney Olympic Park

Finding the right HR practitioner to deliver the right solutions at the right time. This is a key element to success in HR. At The Next Step, we know HR people. We assist our clients to find HR talent with the right skills, motivation and fit for their organisation. We also work with HR practitioners to align them with the right role. Roles that will offer the best fit for the practitioner, in terms of organisational culture, structure and career challenge. This understanding of people, together with an in-depth knowledge of what fits in HR has made The Next Step Australia’s leading HR recruitment practice and ensures that we achieve our key purpose of ‘Contributing to the HR Profession, one conversation at a time’. CONTACT: Kate Henderson, Team Leader P: 02 8256 2500 E: khenderson@thenextstep.com.au W: www.thenextstep.com.au/nextgen

HR3 Australian HR Manager Of The Year • Ryan Atkins, Sanofi • Michelle Cooper, Peoplebank Australia • Alice Hanna, OBS • Dianne McNamara, CBRE • Ron Pettit, Hatch Associates

Since 1984, HR3 has implemented its employee management software & solutions in over 4,000 Australian organisations ranging in size from 5 to 5,000 employees. HR3 is Australian owned and develops all of its solutions in Australia specifically for Australia’s ever changing employment conditions, HR and OH&S requirements. HR3 software/services are available Australia-wide.

HR3

Employee Management Solutions

CONTACT: Suresh L. Bopitiya, Southern Region – Business Development Manager P. 1800 817 191 E. sales@hr3.com.au W. www.hr3.com.au

WWW.HCAMAG.COM 51

2DISCOVER Australian HR Director Of The Year • Rose Clements, Microsoft • Kerrie Field, St Vincents & Mater Health Sydney • Bob Hogarth, Heritage Bank • Vaughan Paul, Optus • Amanda Revis, Suncorp Group • Edweena Stratton, Oracle Corporation • Catherine Walsh, Auspost

2discover specialises in the discovery of talent in the areas of senior executive, middle management and office support levels for permanent, contracting and temporary assignments across all areas of business. Whatever your needs, take a look at our divisions and services more closely. We are well positioned to provide recruitment services in the following specialisations: Human Resources, Business Support, Technology, Sales & Marketing, Finance & Accounting, Contact Centres 2discover's ambition is to be more than a supplier. We want to stand out as the preferred service partner for business and commerce. Above all, we want to be your partner of choice. Partnership, for 2discover, is more than a well-meaning selling point. It's our entire business model. We don't just promise more than our competitors, we deliver it, day in, day out. CONTACT: John Leith, managing director P: 02 9299 4000 E: johnl@2discover.com.au W: www.2discover.com.au

HR PARTNERS Australian HR Champion (CEO) • Peter Acheson, Peoplebank • Kim Garner, FedEx Express Australia • Bruce Goodwin, Janssen • Ron Koehler, DB Schenker • Chris Whitehead, Credit Union Australia • Mike Wilkins, Insurance Australia Group

HR Partners specialise in the recruitment and placement of HR professionals at all levels of seniority and in generalist as well as specialist roles. With offices in Sydney, Melbourne and Brisbane, HR Partners is well placed to assist with the recruitment of HR Professionals in Permanent, Fixed Term and Interim HR roles.= CONTACT: David Owens, managing director P: 02 9019 1600 E: dowens@hrpartners.com.au W: www.hrpartners.com.au

Best Workplace Diversity Strategy • • • • • • •

Ausgrid Crown Perth IAG IBM Australia Telstra Corporation University of Western Sydney Westpac Group

Best Reward & Recognition Strategy • • • • •

Coates Hire Credit Union Australia Jeanswest Mirvac Starbucks Australia

Employer Of Choice (public sector & NFP) • • • • • • • • 52

Baptcare Break Thru People Solutions BUSY At Work Glen Eira City Council Main Roads WA St Vincents & Mater Health Sydney Starlight Children’s Foundation - Australia TransLink

WWW.HCAMAG.COM

Best Change Management Strategy • • • • •

Bupa Australia Cement Australia Luxottica Retail Australia TNT Express Village Roadshow Theme Parks

Best HR Strategic Plan • • • • •

Cochlear Main Roads WA Mirvac Ramsay Health Care RailCorp

Australian HR Team Of The Year • • • • •

Accor Australia BHP Billiton Manganese Deloitte Heritage Bank IBM Australia

WWW.HCAMAG.COM 53

PERFECT

SIGN OFF

OVER-USED WORDS IN THE WORKPLACE NO.1: PERFECT

Employee: “Yeah, I missed the deadline, but I’ll have it done by the end of this week.” Manager: “Perfect! Let’s touch base Friday.” Sound familiar? ‘Perfect’ is surely one of the most over- and mis-used words in today’s workplace. At times, it seems to have become almost the default reaction to all manner of evidently mediocre events. ‘Perfect’ means it couldn’t have been better. No amount of sterling work could have resulted in a better outcome. Any even slight improvement in the situation would have been both inconceivable and impossible. Everybody has performed, acted and generally been optimal in every single way. Everything’s been just so hunky-dory that we can all go skipping off into the self-congratulatory sunset. Clearly not the case here. The manager’s first utterance should have been “Shoddy!”. “Disappointing!”. “Not good”. “Remove yourself from my presence immediately and tremble in fear until your next appraisal, which I’ve brought forward by four months to next week.” Ok, maybe not. The manager should find out if the deadline had been unrealistic in the first place, whether the loss of the employee’s family pet had adversely affected his performance, or if cock-ups elsewhere in the department had got in the way. And sure, the manager should maintain the employee’s self-esteem, end the exchange on a shrilly positive note, and keep the atmosphere cosily convivial. But he should absolutely not use the word “perfect”. Why? Number one – it’s plain incorrect. Number two – it sounds dumb and ingratiating. And number three – using ‘perfect’ here so devalues the word that next time anyone does something that really is perfect – or even just much closer to it – telling them so will have no impact; the manager says ‘perfect’ but the employee hears ‘ok’. We all end up in the disingenuous dark groping around for scraps of semantic sincerity. And surely no-one can say “perfect!” to that.

Uncle Lugubrious

the lighter side

Hold the lift…or don’t Research has shown we’re hard-wired to be more annoyed by behaviour in congested spaces. According to the authors of Incivility: The Rude Stranger in Everyday Life, 61% of rude incidents are the accidental consequence of a large flow of people trying to pass through the same area at the same time, whether in cars or on foot – and office lifts appear to be the worst location. The latest CareerBuilder survey revealed the following are real-life examples of the weirdest behaviours observed in office lifts:

• Changing a

baby’s nappy • Flossing teeth • Clipping fingernails • Fist fighting • Showing someone a rash and asking for a diagnosis • Moving the entire contents of a co-worker’s office into the lift, including the desk • A woman with her arms full of papers using her head to keep the doors from closing on her • Dancing throughout the ride in the lift

HR: KINGS AND QUEENS OF GOSSIP

The average HR professional spends half an hour a day talking about their home life while in the office, and more than a third have shared a secret with a colleague. It seems when it comes to keeping work time professional, HR is trailing the rest. A recent survey found that while 34% of UK workers have discussed a private matter with a co-worker, 38% of HR pros had done the same. Family news, celebrity gossip and TV viewing all made the list of hot topics, while the weather, relationships, money and health also rated top mentions, the Mars Drinks Office Connections survey of 2,000 workers found. However, this propensity to share isn’t necessarily a bad thing – studies have also found that a small amount of personal discussion or gossip at work is instrumental in forming bonds and breaking down barriers. However, be mindful of not overstepping the barrier by ‘oversharing’. Consider how much your colleagues share about their lives before you start talking about your partner, kids, or bed habits.

KISS ON YOUR LIST

A recent survey conducted by mobile network Three for International Kissing Day in August revealed that 86% of office workers have innocently put a X ‘kiss’ in emails to colleagues, yet the survey also found 55% of women and 60% of men, who had engaged in an office romance, said it had been sparked by X’s in messages. HCAMAG.COM 55