Human Capital magazine issue 10.11

PREVENT OR PUNISH?

Stamping out bullies P.18 ISSUE 10.11

HR AND RISK MITIGATION

Change management P34 A FRESH TAKE

Benefits that matter P36 HUMAN CAPITAL MAGAZINE HCAMAG.COM

THE WHO’S WHO OF HR

PLUS: IS YOUR BUSINESS HAMPERED BY ‘EXPERTS IN SILOS’?

editor’s letter

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

Think like a chess grandmaster

PREVENT OR PUNISH?

Stamping out bullies P.18 ISSUE 10.11

HR AND RISK MITIGATION

Change management P30 A FRESH TAKE

Benefits that matter P36 HUMAN CAPITAL MAGAZINE HCAMAG.COM

A whole range of thoughts raced through my head on the release of the annual Human Capital ‘Hot List’ – not least of which is how quickly it’s come around. There are also regrets – that it can’t be longer and can’t list all the excellent HR practitioners who work tirelessly day in, day out with little or no ‘job well done’ accolades. Like any list, it’s somewhat arbitrary, although the people on the list have, by and large, been recognised for their good HR work by reputable sources. Some demand to be included: they have advanced the HR function so far within their organisation (and in a wider context) – see the entries for Oracle, Deloitte or Heritage Bank. Some are included for comprehensive and quite revolutionary HR policies or strategies (see IAG and Caltex). Others face challenging environments of their own making or being shaped by external forces (see Suncorp Group or Qantas).

These practitioners have left the ‘I want a seat at the table’ argument well behind. Now they are ensuring they engage other executives and the Board to share the burden of the people issues facing business today. As long-term observer of the HR function, Roger Collins, commented to Human Capital this month, “while good HR directors are necessary, they’ll never be sufficient” to shoulder the massive burden of expectation of what the people element in business needs to deliver. He advocated a review of who’s responsible for the ‘people stuff’ in organisations – “the CEO, the other executives and the Board all need to be taking an interest,” he said.

And it’s probably true to say that all those on the list have embraced the ‘think like a chess player’ mentality.

What’s that, you say? When a chess player moves their knight, they’re not thinking about taking that pawn – they’re figuring out how to take the queen with a bishop five moves from now. In the same way, when HR takes the long-term strategic view they must think years down the track, anticipate threats and forecast potential competitive advantages.

The theory goes that this manner of thinking can have serious benefits for succession planning, education and training, and of course recruitment and talent management.

“When a chess player moves their knight, they’re not thinking about taking that pawn – they’re figuring out how to take the queen with a bishop five moves from now”

PLUS: IS YOUR BUSINESS HAMPERED BY ‘EXPERTS IN SILOS’?

COPY & FEATURES EDITOR Iain Hopkins JOURNALIST Stephanie Zillman EDITORIAL ASSISTANT Patrick Durrant PRODUCTION EDITOR Carolin Wun

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

CONTRIBUTORS People + Culture Strategies, The Next Step, Kenexa, EmployeeConnect

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.

Iain Hopkins, editor, HC Magazine

Human Capital wants to hear from you. Email us:

THE WHO’S WHO OF HR

editor@hcamag.com HCAMAG.COM

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HC MAGAZINE 10.11

contents

Check out the HC archive online:

hcamag.com

18 REGULARS

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

FRONTLINE INTELLIGENCE

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Cover story: Human Capital ‘Hot List’ Who’s a mover and shaker in the HR profession? In its seventh annual list, Human Capital showcases Australia’s HR high achievers from the past 12 months

18 | See no evil, hear no evil From schoolyards to the workplace, the scourge of bullying continues to vex society in general and business leaders specifically. Iain Hopkins asks if prevention is better than punishment in stamping it out 36 | Show me the money There’s been a significant shift in remuneration structures to focus on non-cash benefits, writes Jon Finlay

08 | In Step – HR career experts 10 | Legal 12 | HR consulting 32 | HR technology

50 | Break down the walls Poor teamwork hampers countless business outcomes.

Graham Winter outlines how certain organisational structures – such as the ‘experts in silos’ model – may be to blame

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IN BRIEF

news

The month in numbers

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BULLYING & HARASSMENT

SPOTLIGHT ON COUNTER-PRODUCTIVE WORKPLACE BEHAVIOURS n Researchers on the first comprehensive study into ‘counterproductive workplace behaviours’ (CWBs) found that most respondents were guilty of at least some CWBs – including unnecessary sick days, inability to get along with colleagues, ignoring OH&S or other workplace policies, and theft.

At least two-thirds of Aussie workers had been rude to colleagues, while over 90% had disparaged the organisation they work for at least once, Andrew Marty from SACS Consulting said. “We were surprised by the relatively high levels of negative behaviour identified by the study and believe the findings have significant implications for Australian employers.”

Marty added that identifying CWBs is important for employers as they can cause a drop in staff energy levels, drive and commitment to work. They can also create a downward spiral into truly negative behaviour such as widespread bullying and harassment.

Among the key findings: • 86.6% of employees had ignored or snubbed someone at work at least 4

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once (41% had done so sometimes or more frequently) • Over half of employees (55.3%) had taken things from work at least once (11% had done so sometimes or more frequently) • 21.4% of employees had ignored OH&S policies or procedures sometimes or more frequently • Men were more likely to infringe against their co-workers, while women were more likely to infringe against the organisation • The 31–40 age group for women was a high risk for CWBs, possibly due to the pressure of balancing work and family commitments • Younger employees (30 years or younger) were more likely to engage in CWBs than employees aged 51 years or older

DID YOU KNOW? Only 38% of employees believe that major change initiatives within their organisation are well managed and help the organisation to deliver better business results.

More disturbingly, just 56% of senior managers (those who should be driving organisational change), believe change initiatives are well managed. Source: Aon Hewitt

– The percentage improvement since 2002 in the rate of serious workplace injuries.

However, this is still below the target of a 40% reduction by 2012*

4 – The global

ranking for Australia for its ability to supply the leaders of today; but it drops out of the top 25 countries for supplying tomorrow’s leaders^

3 – The

percentage of quarterly bonus (a total of 12% per year on base salary inclusive of superannuation) given to primarycarer employees at Caltex once they return to work, to help offset costs such as childcare up until the child’s second birthday Sources: *Comparative Performance Monitoring (CPM) report, Safe Work Australia ^Global Leadership study, SHL

EMPLOYEE RELATIONS

FAIR WORK WARNING TO EMPLOYERS n In response to a number of reports of employers attempting to attend medical appointments with employees, the Fair Work Ombudsman (FWO) has said it does not support this behaviour.

According to FWO, there are few circumstances under which an employer should seek to attend a private and confidential appointment with an employee, and it would only be permissible to do so if specifically requested by the employee. “While an employer may request evidence that would substantiate the reason for an employee’s entitlement to personal/ carer leave, a medical certificate or statutory declaration is generally considered an acceptable form of evidence,” FWO said in a statement.

In cases where the legitimacy of a medical certificate is in question, employers are urged to follow the established processes for dealing with practitioners who issue a fraudulent or unjustified certificate.

Employers are entitled to request evidence that ‘would satisfy a reasonable person’ that the leave was taken because of an employee’s illness or injury. If an employee provides this evidence, the employer must grant the request.

Likewise, when considering such requests, employers must respect their employee’s privacy and only obtain evidence that is relevant to substantiate the absence. The cause and nature of their absence is not necessary, except in unusual or exceptional circumstances.

IN BRIEF

HR insight/recognition

The power of praise SHL’s Workers and Good Management research indicates that it’s more than just salary that will motivate people to do a good job and keep them engaged with the business.

THE COST OF FAILURE

THE EMPLOYEE REALITY

DISENGAGED EMPLOYEES 57% are dissatisfied with the level of recognition they receive for doing a good job

38% don’t feel

77% would consider

appreciated by their employer

leaving if not recognised enough for their contribution

57% are starved of

= DISENGAGED

recognition and only receive it monthly (or less)

= ENGAGED

= ACTIVELY DISENGAGED

$$$ $42 BILLION PA LACK OF PRODUCTIVITY COSTS AUSTRALIAN BUSINESSES

THE MANAGER’S ROLE

44%

44%

70%

of managers are poor at delivering specific and timely praise

of managers do not know what motivates their employees

of an employee’s engagement is determined by the employee’s manager

RECOGNISED EMPLOYEES ARE:

MORE PRODUCTIVE

MORE ENGAGED

AN EFFECTIVE RECOGNITION PROGRAM IS KEY TO A HIGHLY ENGAGED WORKFORCE

ON AVERAGE IT COSTS

DISENGAGED MANAGERS ARE 3x more likely to have disengaged employees

78% 82%

150%

OF A SALARY TO REPLACE AN EMPLOYEE

WOULD WORK HARDER IF THEIR EFFORTS WERE RECOGNISED AND APPRECIATED

5X

REPORTED BEING RECOGNISED ACTUALLY MOTIVATED THEM IN THEIR JOBS

ENGAGED EMPLOYEES DELIVER:

81%

MORE LIKELY TO STAY IF THEY WORK FOR A COMPANY THAT RECOGNISES THEM

WERE MORE SATISFIED WITH THEIR WORK IF RECOGNISED

(12%) better customer service (27%) less absenteeism (38%) above-average productivity (50%) higher sales (50%) higher customer loyalty Source: RedBalloon for Corporate

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MARKET OVERVIEW & TRENDS

social media

No Facebook at work?

Candidates look elsewhere Having moved away from outright bans on social media, an employers’ attitude to social media access at work is now impacting on whether or not a candidate will take a job, according to multiple studies The lat est figures from Hays Human Resources* show one in five candidates (19.7%) would turn down a job if they did not have reasonable access to sites such as Facebook at work, prompting the need for organisations to ensure they have up-to-date policies in place.

The survey results suggest employees now and in the future will expect to be allowed a reasonable level of access to social media at work for personal use. It found that half of those surveyed already access social media for personal reasons. Of these, 13.3% said they access it daily, while 36.4% access it occasionally.

Indeed, it appears to be something of a trade-off. A PwC study** found that the majority of Millennials (Gen Y) want to be allowed time to socialise on personal networks in return for remaining accessible to respond to work-related messages outside standard business hours.

Employers seem to agree with the expectations of candidates – 44.3% believe that allowing employees to access social media at work will improve their retention levels. Already one third (33.2%) allow their employees access at work, while 43.2% allow limited access. Just 23.7% allow no access at work.

However, more than half of those who said they accessed social media at work for personal reasons, did not use their own devices to do so, meaning they were using company equipment. And one quarter (25.3%) of employees said they did not have a clear understanding of how to represent their organisation on social media.

The 2011 Unisys Consumerisation of IT study revealed that employees and employers don’t necessarily attach the same

No – 19.7%

Limited – 43.2%

Do you allow employees to access social media at work?

Yes – 33.2%

No – 23.7%

value to the practical considerations of mobile devices at work, yet for a healthy employer/employee relationship these divides will need to be addressed: Percentage who feel it is critical or positive to provide the following “It’s important to have a social media policy covering how social media is used for work-related matters, the use of it for personal matters at work, and what employees can and cannot say about your organisation in the social media world,” said Lisa Morris, regional director of Hays Human Resources.

“If access to social media sites is allowed during working hours, the purpose of access should be made clear as should the acceptable level of use.”

Top tips for social media policies: • Spell out how social media should be used during work hours and if it will be monitored

Would you accept a job in an organisation that does not allow its employees a reasonable level of access to social media at work?

Yes – 80.3%

• Make it clear that company email accounts should not be used to sign up for social media sites used for personal reasons • You can request that work-related complaints are brought to the attention of the appropriate internal person rather than made via social media • Explain how misuse of social media will be dealt with. *From a Hays white paper, titled Tomorrow’s Workforce, which looks at four key issues affecting the future of Australia’s workforce: the advancement in technology, globalisation of the jobs market, diversity and the rise of the ‘orange collar’ worker. ** PricewaterhouseCoopers, Talent Mobility 2020: The next generation of international assignments, page 20

For further information on this topic or to contact your local Hays office, visit hays.com.au HCAMAG.COM

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FRONTLINE INTELLIGENCE

recruitment

Helen O’Keefe is a Senior Consultant in our executive appointments team in the Melbourne office. For more information call (03) 9664 0900 or email hokeefe@thenextstep.com.au.

Website: www.thenextstep.com.au

Change is no holiday!

In businesses everywhere, transformation has become the rule rather than the exception, with human resources practitioners increasingly required to keep one step ahead of the game.

In this month’s article we explore the thoughts of Senior HR Leaders around the expectations placed on them and their teams as their respective organisations undergo significant business change. What skills do HR practitioners need to develop in their career with change as a backdrop?

THE COMMON THEMES

Addressing participants at an executive breakfast seminar hosted by The Next Step in Melbourne, a panel of HR Leaders comprising of Susan Tonks, General Manager of Human Resources at Kmart, Catherine Walsh, General Manager of Human Resources at Australia Post and Andrew Lafontaine, Group Head Workforce Capability at ANZ, shared their insights into the ever challenging role of HR as they steer change agendas through their respective organisations. They discussed HR’s response to transformation and the challenges for HR to stay relevant and add value during times of major change.

Whilst all three organisations vary greatly in employee numbers, industry and profitability, they are all on significant transformational journeys with some clear commonalities appearing in their HR strategies.

These included: • Simple strategies and ensuring the fundamentals are in place • Appointing HR teams who connect to the business strategy • Measuring HR’s impact on the bottom line

SUPPORTING THE CHANGE

At this event, Susan Tonks shared insights into Kmart’s transformation from a “weekly specials” to “always lower prices” culture.

With an employee base of 26,000 and an HR 8

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Only 9% of HR practitioners considered developing their commercial/ financial skills as critical to their development team of 46, key to Susan’s team’s success is focusing on two to four key objectives that are aligned to the business needs. Right now, they are focused on recruitment and team member training. By getting this right, not only do they contribute to the bottom line by ensuring productivity, they contribute to Kmart’s vision of ensuring they attract the best people in retail and are a great company to work for.

Likewise, with Australia Post preparing for the digital age via their “Future Ready” program, Catherine Walsh indicated that her team has three clear and simple priorities which centre around capability, performance and talent. By doing this well, they are ensuring that the right people are in the right roles and the structures support this fundamental enterprise-wide change.

At ANZ, Andrew Lafontaine advised the group that being a ‘Super Regional Bank’ with a large number of employees now based in Asia and virtual teams more common, HR’s core focus is developing a workforce capability that connects across borders and can drive business outcomes for the bank.

THE COMMERCIAL SMARTS

Craig Mason, the Managing Director of The Next Step who facilitated the panel, reflected upon some of the findings in

the Global HR Viewpoint survey. In particular, Craig highlighted that there continues to be a significant gap between the rhetoric of needing to be commercial and HR professionals’ acceptance that development in this area is essential. Only 9% of the 3,000 HR practitioners surveyed across Australia, NZ, Asia and the UK considered developing their commercial/ financial skills as a critical part of their professional development.

All panellists were unanimous in their belief that leading transformational change requires HR professionals who demonstrate commercial acumen and can readily measure how their role impacts the business.

Andrew Lafontaine shared how this is increasingly important at ANZ, where projects will not gain approval without a solid business case highlighting ROI. Susan Tonks shared how her team initially struggled to see how they could impact productivity, but now they ‘get it’ and for them, it’s excelling at the basics. Catherine Walsh and Andrew Lafontaine both agreed.

Catherine Walsh added that she believed it important for HR practitioners within changing environments to demonstrate agility and be able to deal with ambiguity.

THE FINAL WORD

So, how can HR practitioners stay relevant, add value during major business change and maximise their career opportunities?

• The effective HR leaders are those who develop and link their strategy to the business and keep it simple.

• The effective HR team members are those who understand how their role impacts the bottom line.

• The effective HR function is one that demonstrates their return on investment and clearly assists the business deliver its end result.

Appreciating and learning from these simple but clear messages will help accelerate any HR career.

MARKET MOVES

radar

Recent HR Market Moves Maureen Schuyt has commenced in the role of HR Manager for Swatch Group Australia. Prior to joining Swatch, Maureen held senior HR positions with The Costa Group and Kmart Australia & New Zealand.

DST Global Solutions has appointed Stuart Reid to the position of Head of HR, Asia Pacific. Stuart joins DST with a wealth of senior HR experience which has spanned across the mining, IT and finance sectors.

Vesna Brown has accepted the position of General Manager HR at Bowens. Vesna has enjoyed a long career at GlaxoSmithKline, most recently fulfilling the position of HR Manager, Pharmaceuticals Australia.

Federated Investors Inc., one of the largest investment managers in the US has established an Asia-Pacific subsidiary with a Melbourne office and appointed Angela Godfrey as Head of HR – Asia Pacific.

Angela has a great deal of experience leading HR functions, predominantly within financial services.

Weatherford, the oil and gas services business, has appointed Susan Rankine as Learning & Development Leader for their Australasian business based in Brisbane.

Rankine, who recently left Origin Energy’s Upstream business, will be responsible for all learning and development initiatives, leading a team based in Queensland & WA. Unitywater in Queensland have appointed Kenan Hibberd to the position of Executive Manager Workforce Capability and Change. Kenan relocated from Melbourne for this position where he held senior HR positions with Siemens, The Skilled Group and TAC.

Surene King has joined Jetstar as Head of Employee Relations. Surene joins following a number of years at Australia Post where she held senior roles in HR and Employee Relations, and prior to that at the Commonwealth Bank.

Nigel Davidson is joining Sydney Water as WHS Risk & Solutions Manager. Nigel is a health and safety professional with 10 years’ experience in the construction and utilities industry in Australia, the UK and Brazil.

Also taking on a new challenge at Sydney Water is Adrian Smith who has accepted the role of Safety Operations Manager.

Adrian is an OHS technical specialist, and resource and OHS systems auditor with a background in leading safety teams to influence a safety culture and drive change in the business. In his previous role of OHS Consultant, he was involved in specialised high-risk, multi-million dollar construction projects for the Corporation.

Maryanne Seibel is joining Roads & Maritime Services as General Manager Human Resource Strategy. Most recently, Maryanne held the role of HR Director Commercial ANZ and South Asia for Campbell Arnotts prior to which she held other lead HR roles in FMCG and financial services organisations. Maryanne also has a background in industrial relations and experience operating in a public sector environment.

Tracey Stokes has also joined RMS as a Lead Business Partner. Tracey is a seasoned HR BP with the ability to build relationships and positively impact organisational performance through business operations, change management, talent and succession planning and knowledge management. Prior to RMS, Tracey’s most recent role was with Ausgrid as an HR Business Partner.

The University of NSW has appointed Helen Lyons in an interim executive role as Deputy HR Director, Client Services.

Helen has a wealth of experience at Director level across a broad range of industry sectors including tertiary education, having held the role of Director HR at the University of Western Sydney for a number of years.

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

HCAMAG.COM

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FRONTLINE INTELLIGENCE

legal

Joydeep Hor, Managing Principal P: 02 8094 3101 M: 0416 265 797 E: joydeep.hor@peopleculture.com.au.

Kirryn West, P: 02 8094 3105, E: kirryn.west@peopleculture.com.au People + Culture Strategies

The High Cost of Inadequate Investigation and Corporate Culture: Sharma v Bibby Financial Services Australia Pty Ltd [2012] NSWSC 1157

People + Culture Strategies recently successfully acted for a client to secure over $1.4m in a case before the Supreme Court of New South Wales. The case concerned the termination of that senior executive’s employment following sexual harassment allegations and highlights a number of important issues for employers, namely, the importance of conducting adequate investigations and the ramifications of an unsatisfactory workplace culture.

THE FACTS

The executive was employed as the Sales Director of Bibby Financial Services Australia (“Bibby”) from 2002 to February 2009. Under his contract, the Sales Director was entitled to a one-off “special bonus” of up to $1.4m. However, shortly before the special bonus payment was due, Bibby terminated the Sales Director’s employment on the basis of serious misconduct relating to allegations of sexual harassment. The allegations included inappropriate touching, inappropriate comments and unwelcome attention.

In January 2009, Bibby conducted an investigation into the allegations of sexual harassment and interviewed a number of employees in the Sales Director’s team.

None of the employees interviewed supported the claims of sexual harassment.

Despite this, on 4 February 2009, the Sales Director was called to a meeting where he was told that: “Your conduct is unbecoming of a director…

If you do not resign we will terminate your contract. This process is not a negotiation. We do not have to tell you anything.”

Bibby then took steps to terminate the Sales Director’s employment for serious misconduct and did not pay the Sales Director’s notice period or the special bonus.

When the Sales Director brought a claim, 10

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Any employee being investigated should have all of the allegations put to them and be provided with a reasonable opportunity to respond Bibby also sought to rely on conduct of the Sales Director that had been discovered post-termination, including communicating the taking of ecstasy tablets and failing to disclose a potential conflict of interest.

THE FINDINGS

The Court held that Bibby decided to terminate the employment of the Sales Director on 4 February 2009 and the allegations of sexual harassment or other serious misconduct were not upheld.

Therefore, the Sales Director was entitled to the special bonus and six months of notice.

The Court also considered whether any of the conduct discovered post-termination could be used to justify a termination on the basis of serious misconduct.

In relation to the emails evidencing drug taking, the Court found that the conduct of the Sales Director could only be viewed in the context of Bibby’s policies, procedures and corporate culture. Bibby’s Drug and

Alcohol Policy provided that in the event of an incident involving drugs or alcohol, Bibby would intervene and offer assistance. In such circumstances, the Court found that the Sales Director’s employment would not have been terminated summarily on the basis of sending emails referencing drug use.

Further, the Court found that at that time the emails were sent, Bibby had a corporate culture which tolerated heavy drinking and condoned and paid for the use of dating and escort services and strip clubs as part of the business. Bibby’s workplace culture meant that the Sales Director’s conduct was no more damaging to the company’s reputation than Bibby’s Managing Director attending lap dancing venues and strip clubs with clients or suppliers.

KEY LEARNINGS FOR EMPLOYERS

• Investigations should be conducted by persons who are experienced and competent, in many circumstances, an external independent investigator should be engaged.

• Obtaining evidence corroborating the allegations is important; in the absence of such evidence, employers should be cautious of making adverse findings.

• Procedural fairness must be followed. Any employee being investigated should have all of the allegations put to them and be provided with a reasonable opportunity to respond.

• Policies and procedures should be carefully drafted and reviewed to ensure they do not impose onerous obligations on the employer.

• The corporate culture of an organisation should be audited regularly; appropriate behaviour and culture training should be provided to all employees and managers regardless of their seniority.

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FRONTLINE INTELLIGENCE

HR consulting

Andrew Brock, Client Services Director, Kenexa Australia Level 2, 451 Little Bourke St, Melbourne Phone (03) 9602 3899 or email andrew.brock@kenexa.com

Paying for performance Motivating employees to perform by paying them to do so is not a new concept, but it is a powerful one that is dramatically under-leveraged. Pay is certainly not the only thing that drives performance, and cases have shown that simply paying for performance does not increase performance.

It can sometimes even decrease performance for example, on achieving ill-defined ‘creative’ type outcomes. However, by having the right culture and context, rewarding desired outcomes can be a very powerful motivator, both from a financial, and importantly, a recognition perspective.

So, it is not all about pay, but pay is a significant proportion of what employees want. In fact, in a recent study, 25% of employees said ‘pay’ was the most important thing to them and this was their top reason for joining an organisation. (Wiley; Kowske 2011). So in a quest to drive organisational performance, pay is clearly a very large lever.

So how well are we using that lever?

Every year, Kenexa’s WorkTrends survey asks thousands of workers in 28 countries (including Australia) for their insights on workplace issues including pay and performance. In Australia, only 49% of employees agreed that their pay was directly related to their performance. Although this was significantly better than employees outside of Australia, where only 39% agreed, we need to realise that every second employee across the country is sitting at work with no financial incentive to work harder or smarter. As leaders battle rising macroeconomic headwinds to increase business performance, this signifies a massive opportunity.

As business and HR leaders, how can we use the pay lever to increase performance?

• Firstly, don’t be put off by thinking you can’t afford to pay more. When applied correctly, pay for performance programs will actually increase margins and not reduce them, by increasing the 12

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Don’t be put off by thinking you can’t afford to pay more.

When applied correctly, pay for performance programs will actually increase margins, by increasing productivity productivity and results of the existing workforce.

• If you are just starting down the road of pay for performance, concentrate on your most important job families first.

Increasing performance in jobs where the difference between a good and an average performer is exponential will give you the biggest bang for your buck.

• Have a clear long-term goal(s). For example, “become number one in customer satisfaction by 2018.” A goal like this can then be broken down into sub-components and timeframes. All goals must be SMART goals: Simple, Measureable, Achievable, Realistic, Time-bound.

• Make sure every employee not only knows the goal(s), but understands what

achieving the goal looks like and how they can contribute. No matter where they are in the organisation, a line must be drawn between their work and the outcomes of the goal(s). For example, as an Accounts Payable clerk I can make an impact by ensuring that suppliers are paid correctly and on time. Vital customer services will not be adversely impacted, and by doing my job efficiently, more resources can be spent directly on the customer experience.

• Incentivise every employee for their contribution towards meeting the goal. To carry on the example of the Accounts Payable clerk, their bonus should be set on timely supplier payments and efficiency (with very clear metrics). Aligning everyone’s efforts is important, so often originations will apply to overall or business unit targets and then variable compensation is based off personal performance as well as overall performance. Regardless, employees should know specifically what they need to do to maximise their compensation.

Lastly, remember that paying for performance is an extremely powerful tool, but by no means the only tool in the box. I find it useful to think of a robust pay for performance strategy as a powerful potential ‘engager’. Having one in place impacts many of the key drivers of employee engagement.

It ensures that employees know the vision and goals of the organisation and how they can contribute to them. Performance review conversations become more structured and less subjective, supporting good open and honest communication. Rewarding top performers and celebrating success is motivational for everyone. Lastly, other factors such as recognition, self fulfillment and growth and development must also be in place as the foundation for engaged employees to even want to stay with your organisation and buy into your goals in the first place.

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PROFILE NICOLA MEYER-SMITH

my brilliant career

World

traveller With responsibilities spanning from Nigeria to New Zealand, Nicola MeyerSmith shares her tips on working abroad – including a stint in South Africa and Sub-Saharan markets – and her passion for organisation development at market/advertising research company Nielsen Human Capital: What drew you to an HR role initially?

Nicola Meyer-Smith: I went to university planning to do a business degree and it was almost by a matter of elimination – all the other majors were not my strengths – that I ended up taking the management papers and loved them. The reason I continue to be drawn to a career in HR is the fact you have the ability to influence the success of business strategy through the people in it, which is satisfying.

HC: What is your current role and how did it come about?

NMS: My current role is executive director, HR – Pacific for Nielsen. I’m also acting head of HR, South Africa and Sub-Sahara (SA/SSA), until the end of the year. I’ve recently returned from a six-month assignment where I was based in South Africa doing the same role in a different time zone.

HC: How did that experience come about?

NMS: The short-term assignment opportunity came about as I’m also responsible for being the human resources business partner (HRBP) for the HR team in our region, and I had spoken to my manager about assisting with the onboarding of the new HR head in SA/SSA. The region is of strategic importance globally for Nielsen, due to significant growth opportunities, hence we need to ensure we provide the right support to also ensure we deliver on our people strategy. It transpired that I took up the role in

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addition to my own role in the short-term as it took longer to recruit someone for the role. This has enabled me to experience an amazing journey working across time zones, and in both developed and developing markets.

HC: How would you recommend other HR professionals learn more about the wider business world?

NMS: We constantly have these conversations as a team on how you ensure you get a ‘seat at the table’. I’m proud to say, as a team, we are viewed as a strategic partner – we ask lots of questions, attend business/financial/planning meetings, network internally and constantly discuss within our team the implications of what is happening internally and externally and what this means.

HC: What do you consider to be your biggest career achievement to date?

NMS: My recent experience in SA/SSA would have to be the highlight from both a personal and professional point of view. Firstly, South Africa gets a lot of bad press in New Zealand and Australia about being very unsafe, so for the first two weeks I was terrified as I drove around the city; however, this quickly passed. Johannesburg is a vibrant and interesting place with so much heart that you can’t help but very quickly feel like a ‘Joburger’. I also left my family behind, so I needed to quickly build my support network and now have some amazing friends.

Global vs local balancing act

NICOLA MEYERSMITH ROLL OF HONOUR Bachelor of Business Studies majoring in Personnel Management from Massey University in Palmerston North, NZ

When asked about Nielsen’s biggest HR challenge, Nicola Meyer-Smith outlined the challenge of keeping global and local interests aligned.

“Like a lot of global companies, I think the major challenge is balancing the priorities of the local business with the priorities of being part of a global organisation and being smart about where we focus our energies. We spend a lot of time working with the local leadership team and managers to ensure they understand the importance of delivering on a consistent global people strategy and how this supports us to have a competitive advantage in all markets. Often managers have a long list of ‘nice to do’ and we have to keep coming back to asking ‘how does it align with the overall strategy?’”

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Career timeline: Nicola Meyer-Smith 1985 – 1986 First job

• Recruitment officer Hamilton Education Board

1990 – 1996 Early HR roles

• HR manager, St John New Zealand St John Ambulance, Auckland is a charitable trust and employed around 150 people at the time. Role focused on recruitment and selection strategy for ambulance officers, developing training programs, and Health & Safety risk assessment and prevention programs.

MAR 1997 – MAR 1998 • HR manager, Duty Free Shoppers This involved a key focus on talent acquisition as the business expanded its duty free operations in New Zealand.

SEPT 1999 – JUL 2003 • HR manager, NFO CM (now TNS)

SEPT 2003 – FEB 2005 First Nielsen job

• Associate director, HR – New Zealand, Nielsen

MAR 2006 – FEB 2007 Further steps

• Director, HR – Pacific, Nielsen

MAR 2010 – JAN 2012 • Executive director, HR, Pacific, Japan & Korea, Nielsen Responsible for the HR strategy for Nielsen Australia, New Zealand, Japan and Korea, and HRBP for HR employees across Asia-Pacific, Middle East and Africa.

JUL 2012 – PRESENT Current

• Executive director, HR – Pacific, acting executive director, SA/SSA, Nielsen Responsible for HR for the Pacific Nielsen and also acting as the head of HR for SA/ SSA while the company recruits for a permanent appointment.

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Secondly, in working in the SA/SSA business I had to very quickly adjust – what had previously taken me five minutes in the Pacific, took a lot longer due to limited technology or complicated processes. Hence I needed to be very flexible in response to the new cultural environment I was working in. In the six months that I was there, I was able to significantly shift the relationship the HR team had with the business from a very transactional relationship to a partnering and collaborative one, thereby empowering the HR team to see what an impact they could have.

The comment at my farewell was “you have put the human back into HR”.

HC: Your role has responsibilities across a wide geographic region – how do you manage that?

NMS: This can be challenging, particularly now that I’m back in the Pacific. Additionally, being part of a region spanning from Nigeria to NZ, I spend a lot of time on evening calls; however, I tend to start work later in the morning and have flexibility with my role to be able to work at home.

HC: What is Nielsen doing in terms of leadership development and how do you identify that talent?

NMS: Nielsen’s global strategy is that we want to be recognised externally as an ‘Academy Company’ – this translates into being recognised externally as a company that develops leaders. All our people practices are directly linked to driving this agenda, including our High Potentials programs.

To identify the top performing 3% of our employees, we have twiceyearly employee talent reviews together with calibration sessions where our executive committee nominates people from their teams who have succeeded against specific criteria to ensure consistency across the board. It is a challenge to ensure we have identified true high potential leaders versus high performing leaders. The high potential program

we have is open and supports our company’s values. We are open with the rest of the business on details of the program and who is involved in order to position the program as aspirational. Employees on the program know that they may be rotated off. We provide this group with a stretch project they work on as a group, which is sponsored by the executive committee.

Each high potential program member also has an individual development plan that supports their development to the next role, and we provide them with an internal coach who is aligned with their development areas. We also provide internal leadership programs aligned with the overall business strategy.

HC: What’s the one piece of technology or resource that makes your life in HR much easier – and why?

NMS: It would have to be Microsoft Communicator – this allows me to send instant messages, make calls, share my screen and also send documents, and gives me the flexibility to work across time zones and locations.

HC: Describe yourself in a few key words NMS: I’m passionate and energetic, with a huge amount of empathy for coaching and really helping people reach their full potential.

I do tend to talk too much and get a bit carried away with interesting versus important, but I’m very open to being told this to keep on track. I like to have a lot of things on at once, and I often question myself as to how I’m going to pull it all off, but I always seem to be able to default to my ‘organised chaos’ approach of getting things done.

HC: Where do you see the future of HR as a profession heading?

NMS: I was having a conversation with one of my team members based on her extracurricular studies and she was talking about the ‘Competing Values Approach to Management’ [Quinn et al., (2011)] and to be successful in any leadership role, not just in HR, we need to have the competencies to collaborate, create, compete and control.

In the past, to be successful in HR, you only focused on certain competencies that were seen as being relevant to the HR role.

I believe we will see HR as a profession be clearly recognised as having a significant impact on businesses, as we raise the bar and ensure we have the same competencies all successful leaders have.

Our differentiator will be our ability to use these competencies to effectively drive the people strategy even deeper into the business and clearly demonstrate the impact we can have on the bottom line.

More industry profiles at:

hcamag.com

PROFILE NICOLE MEYER-SMITH

my brilliant career

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HR ESSENTIALS

workplace bullying

See no evil,

hear no evil From schoolyards to the workplace, the scourge of bullying continues to vex society in general and business leaders specifically. What’s going on and what can be done about the ‘cone of silence’ that allows it to fester? the scenario is something no hr professional would ever hope to face in their career: the call from the anguished parent of a young apprentice who killed himself after relentless workplace bullying. The father’s words cut through all the debate and red-tape around the issue of bullying: “How could you let this happen? How could it be that my boy for 12 months was bullied mercilessly while at work?”

That is just one true instance that Stuart King, managing director of Risk to Business, has encountered in his career.

“It’s not the sort of phone call any HR person would want to field – or any CEO. I know it was devastating for that HR person. Remember, you’re an employee too – no amount of PR or spin is going to help that.”

WHAT’S GOING ON?

In supposedly enlightened times, when people are meant to be aware of the rights of others, and be respectful of those rights, how is it that bullying in the workplace is still occurring?

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King, whose career of over 30 years started in policing in Victoria, before moving to risk mitigation in the corporate arena, asks a bigger question: “People exercise choice every day in our community to comply with the rules and laws of our community or not. Why do people still speed? Why do people still steal things, or drink and drive? They are fundamental questions about values in people. I think bullying is no different. Why don’t we get 100% compliance with the law or with workplace policy? It’s because we have a lack of alignment of personal values with those values we want people to follow,” he says.

He adds that Brodie Panlock’s case* was a watershed in Australia “because she was everybody’s daughter”.

“That’s one of the reasons why Brodie’s Law gained momentum, the whole notion of having a criminal offence created for serious cases of bullying.

“Because she was everyone’s daughter it was very difficult for those who would not want legislation to have a counter argument.”

However, bullying is still occurring far too often – and King’s business has undertaken a study to determine what’s going on.

A SILENT EPIDEMIC

King’s research, which surveyed 5,000 Australians, sheds light on the types of bullying occurring, how it’s being handled and some of the deeper root causes.

The research suggests that as many as 30% of Australian workers experienced bullying in the workplace in the past 12 months. Eighty per cent of bullying was verbal, 5% was written or emailed, and 3% was non-verbal – the rest was physical, touching, etc.

The fact that the majority is verbal creates opportunities for observers.

While extensive research has been undertaken looking at the perpetrators and the targets of bullying, little has been done on the bystanders. There is scope to “activate the bystanders”, as King calls it. “The reason people don’t do it is because they’re scared. We need to allow people

to be brave and feel supported when they make those types of stands for other people,” he says.

On that note, it’s a sad indictment to view the results for what employers are doing in response to bullying claims: 5.8% made things worse, 23% turned a blind eye, 40.2% did nothing, 4.3% victimised the person who complained, 16.1% made things better.

King’s research indicates there are bigger structural and behavioural risks at play in businesses. Significantly, the research indicates that not only is bullying rampant where a power differential exists, it’s also rampant peer-to-peer.

“In the past we’ve had a view that workplace bullying occurs around a power differential, a senior person against a junior person, a supervisor against a frontline worker.

We’ve had this notion it’s about power – even in schools, how people want to be powerful in their group.”

The Risk to Business research has found that peer-topeer bullying is encouraged in organisations due to the structure of how success is measured. Linking pay to performance encourages ‘tournaments’ to be played out

? ?

DID YOU KNOW?

The Productivity Commission estimates workplace bullying is costing Australia somewhere between $6bn and $36bn per year.

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HR ESSENTIALS

workplace bullying “We need to allow people to be brave and feel supported when they make those types of stands for other people” – STUART KING

between colleagues. “Where people’s livelihoods and lifestyles are linked to performance and deliverables … then we have tournaments,” King says. “Where we have tournaments we have a greater risk of bullying and other unlawful behaviours.”

GAMBLERS VS VISIONARIES

Obviously some workplaces are more toxic than others.

King classifies these toxic workplaces as ‘gamblers’. These organisations might, for instance, hire ‘gun executives’, because they’ve delivered on all the outcomes that organisations value. However, these organisations turn a blind eye to how the person actually achieved them.

“These organisations are not interested in finding out what’s going on, or they hear about it and turn a blind eye, and that encourages toxic cultures to be created by the individuals who make it up. Unfortunately, those people will move from organisation to organisation,” King says.

In contrast, a ‘visionary’ organisation is open to asking questions to its employee group about what it’s actually like to work there. It cares about the future and invests in it. It holds people accountable for the values in the organisation. “I always say to senior executives, the higher you are, the greater your responsibilities are to articulating and living the values of your organisation,” he explains.

King adds there is an element around skills training as well. “It’s not just technical skills in managers that are now important; you’ve got to have a great balance of people skills, emotional intelligence and wherewithal to work with people. The Peter Principle is still alive in gambler organisations. People get promoted to their level of incompetence. Their technical expertise is brilliant but they shouldn’t be managing people,” he says.

THE BUCK STOPS…WHERE?

There is some uncertainty around the definition of 20

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bullying and how it can be interpreted. Australia in the past has relied on what the Worksafe authorities have articulated – their definition loosely is unreasonable behaviour that’s repeated towards an individual and group with potential risk to health and safety of that individual or group.

“Through amendments to legislation we’ve got a clearer definition, but any definition will be scrutinised, tested and that’s the way legislation is – it’s not an exact science. No definition will be a perfect set of words for every circumstance, and therein lies the problem,” King comments.

A typical example, he says, may occur during a performance management conversation. These can often spawn a bullying complaint.

“When investigations occur, the complainant says, ‘well we sat in this room and he asked about my performance and he said my performance wasn’t good enough’. When the investigation digs deeper and checks the process, the manager may have been applying the process according to policy in the organisation and therefore probably isn’t bullying this individual. Nonetheless, the person feels threatened because they’re being asked to account for why they are not performing to the desired standard.

“We can’t stop people from complaining, but we must have a clear set of guidelines, systems and processes to respond to those complaints, so people feel heard, that the process is fair, and that principles of natural justice and procedural fairness are apparent.”

Michelle McQuaid, author of Five Reasons to Tell Your Boss to Go F**k Themselves: How Positive Psychology Can Help You Get What You Want, says that many of the ‘bad bosses’ she’s encountered lack self-awareness but also lack the confidence to actually see and ask people what’s happening for them.

“As a boss you may not intend for your behaviour to be seen as bullying, but if a reasonable person perceives that as feeling victimised, undermined, humiliated, or threatened, then that’s a reasonable complaint. So one is your own self-awareness, but the second is having that social intelligence and confidence to actually see what’s going on with team members. If someone is looking uncomfortable and looking put out, then having that conversation – ‘what’s happening, talk to me’ – is so important. Does that employee perceive you in a way you hadn’t intended? It’s having the courage to talk about it and address it, rather than sweeping it under the rug or being personally offended by it.”

McQuaid does not believe most bad bosses are bad people; they are good people who are doing a bad job, because often they haven’t been given the skills, training and support that they really need.

“We’re bought up with this idea that being a tough boss is what a good boss is. But they often don’t realise how much they’re undermining the performance of team

members and the cost it has on productivity, on client satisfaction and team turnover,” she says.

MAKE IT VISIBLE, THEN MITIGATE THE RISK

Dr Rod Gutierrez, the head of psychological-based safety programs offered by DuPont Sustainable Solutions, says most Australian companies adopt a zero tolerance approach to bullying – and plough expensive resources into prosecuting or counselling offenders. He says research has revealed the usual systems of dealing with the problem could be ineffective.

Gutierrez says much of the time and effort that currently goes into punishing workplace bullying would be better spent on preventing it and creating a psychologically safer workplace from the start.

“If we are to truly address the problems associated with workplace bullying and its cost to the economy, we need to broaden our focus beyond punitive measures and how we deal with incidents once they have occurred,” he says.

He recommends a holistic approach that considers the risk factors, associated effects, organisational culture and values, and individual circumstances, as well as punitive measures. “What is clear is that workplace bullying is one

of the risk factors to the development of work-related psychopathology, which if found to have been significantly contributed to by the employment of a person, may result in compensable psychological injury,” says Gutierrez.

King notes that far from being seen as a negative sign, the number of bullying complaints received is a good indication of organisational health. If people complain it means they are confident they will be heard. “A problem is a lot of this is not measured, so the true impact of workplace bullying and impact on bottom line is not known,” he says, and adds that when things are visible you can treat the risk.

“Constant vigilance to values, to the review of policy and education in organisations is essential. We advocate that organisations have an independent help line in place to triage complaints, to refer people to EAPs, to support people to resolve conflict, and to support managers when they are supporting people who are responding to conflict. These all help to make it visible,” he says. *Brodie’s Law was prompted by the 2006 suicide of 19-year-old Melbourne waitress Brodie Panlock, who was relentlessly bullied during work hours.

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COVER STORY

best practice

THE WHO’S WHO OF HR

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Human Capital’s seventh annual list of the best and brightest in HR around Australia showcases some extraordinary people doing some extraordinary things While HR professionals may be good at putting other people forward for awards and accolades, sometimes they can be reluctant to take credit for themselves – regardless of how well deserved it may be. Human Capital’s Hot List aims to redress the balance, spotlighting 20 true leaders who are at the vanguard of HR across the country, and exploring what they’re doing that sets them apart.

This list of ‘hot’ HR professionals showcases the movers and shakers of Australia’s HR industry who have come to our attention in the last 12 months, whether they’ve made it onto our pages or others’.

These corporate leaders have spearheaded innovative projects, achieved impressive bottom line results, embraced diversity, driven down costs while upping 22

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productivity, or managed difficult changes. They are engaging other executives and board members in debate around people strategies.

These are not just people who run successful HR operations or who are ‘known’ from the speakers’ circuit – they have taken HR to new levels within their organisation and externally, or have advocated new ideas and practices that develop the field of people management.

And finally, remember that behind every great leader is a great team – it’s fair to say that no one on this list could have made it without innovative, creative and hardworking people alongside them.

PRESSURE COOKER HR NAME: KATE RIMER TITLE: HR DIRECTOR COMPANY: COLONIAL FIRST STATE WHY HOT? Who would have thought that one of Australia’s largest financial services firms could feel like anything but a traditional bank? Kate Rimer has been instrumental in creating a culture that sets Colonial apart. While the financial services sector has its own challenges, walking into design-friendly, hi-tech Colonial’s head office in Sydney’s Darling Harbour makes it clear something refreshingly different is happening. Working in close partnership with the CEO and leadership team, HR at Colonial are truly valued as strategic partners.

Rimer has been instrumental in shaping an approachable management style. The CEO participates in every induction, and each employee has a 90-day ‘stay’ interview for initial employee feedback. The ‘people’s voice’ is heard through regular focus groups, while ongoing training and flexible working arrangements are par for the course. Rimer has been a supporter of HR working as a key business partner – this vision has not only translated to an attractive culture, but into a successful business as well.

NAME: TOBY BICKNELL TITLE: HR DIRECTOR COMPANY: ABBOTT AUSTRALIA WHY HOT? With industry awards including ‘most admired,’ ‘most respected’, ‘best place to work’ and ‘best place to launch a career’, Abbott is routinely recognised for workplace excellence. The vision of this pharmaceutical and healthcare company includes creating a work environment to meet the individual needs of its 700 employees. While an extensive focus on physical health exists, there are also professional and financial health programs. These include legal and financial advice, counselling services, and educational support – with most extending to employees’ families as well. But it’s more than just gym memberships that sees Abbott so recognised. Toby Bicknell points to a sense of purpose that employees experience, which takes the EVP beyond words on a page. Bicknell is behind some of Abbott’s breakthrough policies, including one that stems the problematic ‘brain drain’. “We’ve created a ‘brain boomerang’, where we give our team international opportunities to work within the global Abbott network, and they return to Australia with even greater experience, networks and new ideas.”

NAME: JON SCRIVEN TITLE: GROUP EXECUTIVE, PEOPLE AND OFFICE OF THE CEO COMPANY: QANTAS WHY HOT? Twelve months on from the last HC ‘Who’s who’ list and the turmoil at Qantas shows no sign of abating – and the HR function is right in the thick of it.

In May, the Qantas Group announced a restructure of the Qantas Airlines business and changes to its executive team as it enters the next phase of the five-year transformation plan which was launched in August 2011.

This new phase will see Qantas International and Qantas Domestic – currently combined as Qantas Airlines – formally managed as two distinct businesses. Each will have its own CEO and its own operational and commercial functions. Their financial results will also be reported separately.

Unintentionally or otherwise, the new structure will also create a number of new, high and middlelevel, highly paid management positions at a time when the airline is supposedly cutting costs and retrenching over 500 heavy maintenance jobs, closing down its Avalon operations to consolidate its Brisbane and Tullamarine operations.

The news is likely to further inflame the general public, who have already cast their vote on which airline is the more attractive as an employer – at the 2011 Randstad Awards, Qantas was pipped at the post by long-time rival Virgin Blue.

The next 12 months – which will see the launch of a 10-year alliance with international rival Emirates – may determine if Qantas can improve its battered image in the eyes of both employees and the public.

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COVER STORY

best practice

THE HR ADVOCATE

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NAME: JAN PACAS TITLE: MANAGING DIRECTOR COMPANY: HILTI AUSTRALIA WHY HOT? Alongside the much-reported

NAME: KIM NIXON TITLE: HR MANAGER COMPANY: NETAPP WHY HOT? They’ve done it again.

skills shortage in the resources sector, many HR professionals are scrambling to source the apparent non-existent workers needed to support ambitious growth plans of their organisations.

As a technology and equipment provider to the mining and construction industries, Hilti is no stranger to the challenge. But with a strong corporate culture and high engagement, many Hilti employees are instead joining the ‘20-, 30- and 40-year’ club.

Why? The Hilti HR strategy is built around attracting and retaining the highest quality staff, says Jan Pacas, managing director at Hilti Australia.

“We have long-recognised the importance of employee engagement, and understand that people and results go hand-in-hand,” he says. For Hilti, this means separating employee engagement and development from the HR department and assigning this responsibility to the managers instead.

While this could leave some HR professionals feeling threatened, at Hilti the separation works.

“We believe that engagement cannot be delegated and has to be owned and embraced by every manager. As such, we assigned this responsibility to managers. By making engagement and development part of everyday activity, everyone began to really feel it, and live it; and productivity benefited as a direct result,” Pacas says.

Hilti’s goal is to double its growth in Australia by 2015. With these initiatives in place, the company should have no problem finding the right talent to help it on its journey.

For the fifth straight year, NetApp has been awarded a top ranking on The Great Place to Work Institute’s ‘50 Best Places to Work’. This year, they are number two. The IT infrastructure organisation that specialises in data management attributes its consistency to the basics: open, honest communication, reasonable benefits, and a culture that promotes hard work in an enjoyable atmosphere.

With IT skills shortages abundant, workers can easily chase the higher dollar. Kim Nixon has created a working environment that is increasingly ‘sticky’ in a highly fickle industry. Employee engagement starts from the very first interview.

Applicants are evaluated on culture fit rather than specific systems skills.

From there, employees go to NetApp school at the US headquarters, and the learning doesn’t stop there. In addition to an almost unlimited online learning portal, which includes resources to help with both technology and product knowledge, there are courses built around ‘soft skills’ such as teamwork and effective communication.

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NAME: URSULA GROVES TITLE: DIRECTOR, PEOPLE & LEARNING COMPANY: ABC WHY HOT? Like everyone else, what attracted Ursula Groves to the ABC was a job advertisement. The attraction of the brand was enough to lure her. It’s not often that a government organisation is seen as a pioneer in modernisation and cutting edge HR practice, but the ABC won the Randstad Award as Australia’s most desirable employer for work-life balance (and second most attractive employer overall). Groves recognises that managing a geographically diverse and highly creative employee base requires a unique strategy. “We have highly articulate, educated, ‘knowledge-workers,’ and they need to be managed flexibly. Otherwise, they are not going to make the best content,” she says simply. With over 4,500 permanent and 1,000 contingent workers Australia-wide, Groves acknowledges that a one-size policy is not going to work for many.

She faces the added challenge of being publicly funded. “Offering flexible working is one of the ways that has assisted us in attracting people who may not come to us if they were just seeking the best remuneration,” she says.

NAME: DEBRA STIRLING TITLE: EXECUTIVE GM PEOPLE & COMMUNICATION COMPANY: NEWCREST MINING WHY HOT? When Newcrest Mining won the 2012 Randstad Award for Australia’s most attractive employer, based on votes from the general public, it was a big win for the Melbourne-based company. The result demonstrated the mining & resources sector’s dominance at such awards (a quarter of the top 20 most attractive employers in this year’s results were in this sector).

But Newcrest’s 18,000 employees have known that they have been a part of a good thing for some time now, and the company’s HR team, led by Debra Stirling, can take a well-earned bow.

Newcrest may not grab the daily headlines like some other Australia’s big mining companies, but its attractiveness can be attributed both to its bottom line results and reputation as an employer of choice.

Newcrest has a strong focus on each individual employee – and provides support, mentoring and career development to help employees realise both personal and professional goals.

Stirling has been behind these initiatives since she joined Newcrest in 2008. She and the HR team remain committed to making Newcrest a ‘miner of choice’ .

THE RECRUITER NAME: JAMES ELLIOTT TITLE: GM, TALENT ACQUISITION COMPANY: COMMONWEALTH BANK WHY HOT? An organisation that employs nearly 50,000 people across Australia could be forgiven for having a transactional recruitment strategy. That’s not the case – and James Elliott, the recently appointed GM of talent acquisition, is redefining the way this banking giant approaches recruitment.

Elliott has been tasked with building an internal recruitment team to reduce a previous high spend and fractured approach. He has been the key driver in introducing an internal research and sourcing team, a recruitment business partner system, an employee referral scheme, and more collaboration across its six recruitment teams.

Elliott’s previous time as Deloitte’s recruitment and mobility director will no doubt contribute to Commonwealth Bank’s new direction. He helped build a frequently awarded corporate recruitment function during his seven years with Deloitte – all while maintaining impressive retention rates and no GFC-led redundancies. A big believer in using technology and data-driven decision making to harness talent, Elliott is at the forefront of recruitment best practice. Commonwealth Bank is one to watch in 2013, with Elliott one of its brightest stars.

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COVER STORY

best practice NAME: SHARYN SCHULTZ TITLE: HEAD OF HR COMPANY: LUXOTTICA WHY HOT? As the head of HR for Luxottica, the

NAME: AMANDA REVIS TITLE: GROUP EXECUTIVE HR COMPANY: SUNCORP GROUP WHY HOT? The Suncorp people and culture

home of OPSM, Sunglass Hut, and other retail brands, Sharyn Schultz believes HR is about more than just people. She is pragmatic in how she sees HR striking the right balance between people decisions and business outcomes. “One of my key learnings in HR is that there’s a whole heap of grey. Sometimes there is no right or wrong way of doing it… but we’ve got to make sure whatever we’re doing links back to the culture and the business strategy,” she says. Schultz sees her function as accountable to three key deliverables: focusing the business, simplifying the business, and connecting to the customer – and these will be crucial as the business undergoes future brand rationalisation. In addition, Schultz and the executive team have launched Luxottica’s OneSight foundation, which provides people in disadvantaged communities access to free eye tests and free eyewear.

strategy is based on the premise that the more engaged and enabled the workforce is, the more value is generated for all stakeholders. In a historically complex business, the execution is the key. Amanda Revis, who has been at the helm for just over two years, has ensured Suncorp’s people frameworks and methods are simple to understand and use and also provide staff with a clear line of sight between what they do, how they do it and the strategic objectives of the organisation. The company has also been acknowledged as a leader in e-learning/social learning and is constantly researching new and improved technologies and ways of delivering learning. A company with several strong cultures (brands include Vero, AAMI, GIO), Revis maintains the benefits of each culture, whilst at the same time ensuring that everyone works together in a culture of ‘One Company, Many Brands’.

NAME: EMMA HOGAN TITLE: DIRECTOR OF PEOPLE AND CULTURE COMPANY: FOXTEL WHY HOT? In 2011 Foxtel was the winner of the HR Team of the Year at the Australian HR Awards. Leading the HR team is Emma Hogan, whose initiatives have set the company apart.

Always a strong advocate of the HR team at executive level, Hogan says credibility comes from understanding the business first, with everything HR can deliver from a people and culture perspective second. “For instance, at Foxtel we need to know the price of our product, we need to know what the new release content is, we need to know what’s coming soon,” she told HCTV. For Hogan, a successful HR team is one that has a diverse background and is open to continuous learning and changing. “Most of my team have been in more than one role while at Foxtel. Mixing skills and empowering them to do their roles is really key to the retention of the team but also key to the success of the business,” she says. This attitude works well in an organisation that is continuously changing.

In May, the $2.5bn merger between Foxtel and Austar was approved – which means the new Foxtel will directly employ approximately 2,500 people. And, as with any merger a delicate touch is required as redundancies and redeployments have been confirmed.

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SHARON SCHULTZ

FINALIST: AUSTRALIAN HR AWARDS, HR DIRECTOR OF THE YEAR

EMMA HOGAN

NAME: VAUGHAN PAUL TITLE: VICE PRESIDENT, HR, GROUP CONSUMER COMPANY: OPTUS WHY HOT? Optus is no ordinary employer.

The company’s Sydney HQ comprises seven buildings in a dedicated campus, and focuses on common spaces to encourage collaboration and relationship building – meetings happen in cafes, outdoors in leafy surrounds, town squares and breakouts. Flexible working arrangements are used by 70% of Optus staff, while a wide range of perks, including an on-site bar, on-site physio and other services like Tai Chi, massage services, weekly fruit and vegetable markets and product discounts keep employees smiling.

Vaughan Paul, who has been with Optus since late 2005, has pulled Optus ahead of the competition. The corporate strategy headline is to ‘Break through in Customer Experience’, and the company still prides itself on its challenger spirit, which Paul has noted is a key component of the company’s EVP. HR has played a critical role in creating a customer-centric culture, and buying and developing leaders who will drive transformational change.

AMANDA REVIS

VAUGHAN PAUL

FINALIST: AUSTRALIAN HR AWARDS, HR DIRECTOR OF THE YEAR

NAME: MARIE IRWIN TITLE: GROUP MANAGER FOR EMPLOYEE RELATIONS AND DIVERSITY COMPANY: CALTEX WHY HOT? Sometimes it takes a leader to

NAME: STEVE ROWE TITLE: GENERAL MANAGER, PEOPLE & CULTURE COMPANY: IAG WHY HOT? The insurance industry is doing its

forge new ground – the hope naturally being that others will follow. Such is the case with Caltex Australia, which in September launched a ground-breaking initiative that will help provide the financial and practical support new parents need to return to work. Key points of the Caltex BabyCare initiative include: 3% quarterly bonus (a total of 12% per year on base salary inclusive of superannuation) to a primary carer once they return to work to help offset costs such as childcare up until the child’s second birthday; up to $1,500 of emergency childcare through the Dial-an-Angel service; specialist assistance to help parents identify appropriate childcare providers; and the introduction of nursing mothers’ facilities at major Caltex workplaces from 2013. Caltex is still male-dominated, with only 30% of its 3,500 staff across Australia being women – and the hope is this initiative, deemed the first of its kind in Australia, will help with attraction and retention of female workers.

best to shed the ‘boys club’ image and is taking extraordinary steps to welcome women into the fold, especially at executive level. Dubbed the ‘welcome back payment’, IAG has opted to double the salary of new mothers for the first six months back on the job, to entice them back from maternity leave. It brings IAG’s paid parental leave entitlement to a total of 20 weeks’ full pay.

The extra entitlement is in addition to the 14 weeks’ paid parental leave already on offer at IAG. Training for all staff around unconscious bias and flexible work arrangements are also on offer.

The parental scheme is part of IAG’s strategy to ensure one-third of its senior management positions are filled by women by 2015. Steady progress is being made, and women currently make up 28% of senior roles. “It’s not because it’s a nice to do; there’s a new conversation going on… around the business benefits of diversity and inclusion – particularly around gender diversity,” Steve Rowe told HCTV.

NAME: ALEC BASHINSKY TITLE: PARTNER, PEOPLE AND PERFORMANCE COMPANY: DELOITTE WHY HOT? The 2011 Australian HR Director of the Year has made HC’s list every year since its inception seven years ago. He’s also helped Deloitte pick up multiple accolades from EOWA and The Great Place to Work Institute and has garnered widespread industry respect.

Not only does Deloitte have world class HR practices, but as one of the most articulate and passionate advocates of the HR profession, Alec Bashinsky can be relied on to be slightly ahead of the curve in terms of HR best practice. Over the past 18 months that’s included widespread adoption of an enterprise social network for internal collaboration and communication, and of course, being an ambassador for strong HR/ CEO relations. His real focus, however, has been in building competency around HR metrics and analytics. Bashinsky believes HR must get more focused on people data, and use that data to forecast trends. He’s also a firm believer in HR practitioners “getting their hands dirty” by learning from experience – especially in IR. “It’s an ongoing experience for all of us,” he told HCTV, “and we need to keep ahead of the game”.

ALEC BASHINSKY

NAME: ADRIAN WILKINSON TITLE: PROFESSOR OF EMPLOYMENT RELATIONS COMPANY: GRIFFITH UNIVERSITY WHY HOT? It’s rare that local HR practitioners

MARIE IRWIN

STEVE ROWE

garner attention from overseas, and even rarer still for those in associated fields – like education – to gain those plaudits. Although not strictly speaking an HR practitioner, Adrian Wilkinson deserves a place on this list for being named on a prestigious shortlist of ‘International HR Thinkers’. ‘HR Most Influential 2012’ unveiled the names of the top 20 global thinkers challenging assumptions and practice in the field of HR, and Professor Wilkinson was the only Australian academic to make the list. He finished in 14th position. The ‘HR Most Influential International Thinker’ list is recognised as the most authoritative analysis of the impact and influence of HR as the employment landscape evolves. This year has seen an emphasis on academic research and its impact on change, development and innovation in the field.

Professor Wilkinson’s research has focused on employment participation and promoting the voice of the employee. He sees there is a challenge to develop HR practices that harness these skills and characteristics in the workplace.

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COVER STORY

best practice NAME: EDWEENA STRATTON TITLE: SENIOR DIRECTOR, HR COMPANY: ORACLE WHY HOT? Oracle’s acquisition of cloud-based

NAME: ROSE CLEMENTS TITLE: HR DIRECTOR, AUSTRALIA & NZ COMPANY: MICROSOFT WHY HOT? What sets Microsoft apart from its

talent management software vendor Taleo earlier this year further consolidated Oracle’s service offerings. A key to Oracle’s success lies perhaps with the simplicity of its people strategy, which is centred on six pillars: Communication, Capability, Celebration, Compliance, Collaboration and Community. To use just one example from the six – communication – locally Edweena Stratton has been integral to the introduction of a monthly e-magazine, OZONE. It includes a video of the MD with key business messages, a ‘people news’ section, and an interview section called ‘60 seconds with Edweena’. OZONE utilises the latest technology to ensure it is readily available and easily accessible on different communication platforms. The transformation of the traditional e-newsletter perhaps sums up the change in status of HR at Oracle, from transactional players to strategic advisors whose opinion is sought for major business decisions such as M&As.

peers in the tech world, and the wider business world, is a commitment to an oft-forgotten segment of the workforce: middle management.

Part of Microsoft’s promise to employees is that they deserve and are entitled to an outstanding manager. In addition to leveraging a global management development curriculum, Microsoft people managers are held to account with a clear, simple, annual performance commitment. This commitment focuses on employee engagement, talent management, diversity and inclusion and performance management outcomes, both qualitative and quantitative, for each manager.

In Rose Clements’ six years on the job, key achievements include: reduction in recruitment costs through increased employee referrals and reduced agency spend; two-year successive wins as Aon Hewitt’s Best of the Best Employer; 40% women on the Executive Team; and further citations for work-life balance and women in leadership from Diversity@Work and EOWA.

FINALIST: AUSTRALIAN HR AWARDS, HR DIRECTOR OF THE YEAR

EDWEENA STRATTON

BOB HOGARTH

NAME: BOB HOGARTH TITLE: GENERAL MANAGER, HR COMPANY: HERITAGE BANK WHY HOT? When Bob Hogarth commenced his current role 15 years ago, Heritage Building Society had virtually no training schedules or procedure-based training courses, no organisational or individual KPIs, and no incentive schemes. The HR function has come a long way since then. It is recognised by Heritage’s board and executive teams as being critical to the strategic direction of the company, and has been recognised by industry peers as best practice.

Heritage now has assets in excess of $8bn, has converted to bank status, and has become an innovative and respected financial service provider with the highest customer satisfaction rating in the country (Roy Morgan research). The company’s Organisational Effectiveness Survey has seen 13 of 21 criteria ranked 80% or higher.

Staff engagement is 85% and the results have improved each year since the survey’s inception in 2006. Heritage’s EVP has been recognised by the Australian Business Awards Recommended Employer Award in 2011 and 2012.

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FINALIST: AUSTRALIAN HR AWARDS, HR DIRECTOR OF THE YEAR NAME: KERRIE FIELD TITLE: GM HR & MEDIA SOLUTIONS COMPANY: ST VINCENT’S & MATER HEALTH SYDNEY WHY HOT? Always a strong advocate of HR’s

ROSE CLEMENTS

KERRIE FIELD

links to business strategy, Kerrie Field launched Program Engage in 2011. Aware of the significant engagement challenges present in a high pressure work environment such as healthcare, Field has gone back to basics. Hinging on the simple fact that a ‘thank you’ can do wonders for engagement, the program encompasses a range of initiatives including reward & recognition, role clarity and accountability, performance feedback, communication and learning & development.

“When we looked at our engagement scores we looked at how much we were recognising people, and while there was a lot of verbal recognition going on we didn’t have a process or program to facilitate and encourage people to say ‘thank you’,” Field told HCTV. After five months the program has resulted in 17,000 e-cards of gratitude (among 3,500 employees), sent from all levels of the organisation.

FINALIST: AUSTRALIAN HR AWARDS, HR DIRECTOR OF THE YEAR

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CHANGE MANAGEMENT

coaching

ADAPT &

THRIVE How can coaching assist in adapting to change? Dr Hilary Armstrong provides best practice insights and outlines how neuroscience has shifted our understanding of brain function

“If you’re in a bad situation, don’t worry, it’ll change. If you’re in a good situation, don’t worry, it’ll change” – John A Simone, Sr. Change is constant and inevitable, so we are told. Yet we resist it, especially when the change happens to us, like at work. So in the uncertain climate of organisations

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today, it becomes more vital that we understand how to assist people and prevent change fatigue from setting in.

As a coach working increasingly with moving roles and restructured landscapes, cognitive and social neuroscience research has enhanced my (and my coachees’) understanding of responses to change.

Although our brain is built to relentlessly scan our environments for what has changed and then assess this in terms of the danger or delight (will it eat me, or will I eat it?), our brain is more likely to register danger. In other words, we are genetically programmed to avoid change. Research into brain plasticity over the past 10 years has, however, emphasised its capacity for change.

In fact, our brains are designed to continually learn, change and adapt.

Scientists once believed that the brain was ‘hard-wired’ early in life. We now know that the 80-year old brain has

the same ability to make new connections as the eight-year-old brain. Unfortunately, most people stop challenging themselves to learn new things around age 30, and when we don’t use it, we lose it!

Working with, and adapting to change, is one effect of plasticity and how we grow. Working with change responses from a coaching approach that models understandings from neuroscience assists change managers and change participants in many ways. Here are just three:

DEACTIVATE FEAR CIRCUITRY

Coaches can explore with coachees their view of the change. Talking through individual’s responses to the change reduces the activation of our brain’s fear circuitry. This is important because arousing the fear circuitry overloads our pre-frontal cortex, reducing function and decision-making. Even mild levels of uncertainty, like gossip or rumours with no evidence can stimulate fear. We expect the worst and unless these expectations are understood then underperformance and decreased productivity set in.

It is the uncertainty itself – not the potential outcome – that generates change in neurotransmitter levels that inhibit the thinking. Coaching assists by encouraging expression of concerns and uncertainty. It is a space to acknowledge the coachees’ viewpoint without forcing the change agenda, and it is the process of the coaching conversation itself that reduces the physiological effects of stress, and when this occurs people often move themselves forwards. An effective coach sees this non-verbally often before it is spoken, and can gently guide the person towards acceptance.

Although our brain is built to relentlessly scan our environments for what has changed and then assess this in terms of the danger or delight – will it eat me, or will I eat it? – our brain is more likely to register danger GROW MINDFULNESS

What is missing from many organisational change processes is quantity and quality time to focus on the development of new skills and behaviours as well as people’s ability to do this. Studies on neuro-plasticity show that with focused attention, new (physical) neural connections are made and stabilised so that people experience the change as ‘normal or automatic’.

Mindfulness is the key to this.

Unless we can mindfully focus our attention, stabilisation of new neural connections cannot occur and people revert back to old behaviours. This is amplified by research about our set point in terms of reactions to change as being tipped more towards negative emotions (irritability, frustration, etc). The good news is that this set point can be moved towards more constructive emotions by coaching for mindfulness.

BUILD A ‘POSSIBILITY FOCUS’

What we focus on grows. A focus on problems, grows problems. A focus on strengths and possibilities grows neural connections of possibility and strength. A coach is a champion of both the coachee and neural plasticity.

In addition, while our brains chatter along with thousands of unconscious thoughts every day, we do have a small window (seconds) to make conscious choices About the author between automatic reaction and conscious response. The Dr Hilary Armstrong is more the focus is on possibility, the more likely we are to director of education make choices that fit these possibilities and strengths. for the Institute of This brings ownership of the change.

Executive Coaching So get a coach, or include a coaching approach in your and Leadership. For change processes. Then whether you are in a good or bad further information visit iecoaching.com situation, the change won’t matter.

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EXPERT INSIGHT

technology

Ari Kopoulos is the national sales & marketing manager at EmployeeConnect. For further information visit employeeconnect.com.au

A problem with HR technology projects Technology roll-outs are commonplace in today’s ever-changing world, but they are often poorly handled. Ari Kopoulos provides his change management tips Technology, forever evolving, offers unprecedented connectivity, automation and business insight. But, in the words of Niccolo Machiavelli in 1513, there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Make no mistake, rapid change is here to stay, and a successful HR technology project depends on your ability to respond and adapt to change. This makes a well thought out change strategy critical in successfully delivering effective and efficient HR technology. In short, you need a plan – global in scope, and somewhat futureproof – communicating process, people and technology as one.

In light of this, it’s very easy to focus on shiny technology and overlook the human element. People are crucial to the success of any system. Successful organisations have within their DNA a strategy for change. As Peter Senge once said, “people don’t resist change. They resist being changed”. They become highly attached to the old way, placing barriers that take time, patience and empathy to manage. This is compounded by the occasional lack of technological competence within the HR community.

As such, the typical approach to change often follows an ‘us and them’ strategy. It neglects engagement, different opinions, and motivations, and doesn’t build stakeholders’ investment. Simply having members of management involved in a project is not enough. In fact, it’s more a reminder of what used to be and can quickly result in an out-of-touch team with no clear vision for outcomes, timeframes and implications.

DEFINE EXPECTATIONS

Understanding upfront what management is 32

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Make no mistake, rapid change is here to stay, and a successful HR technology project depends on your ability to respond and adapt to change expecting from your project is critical to success. Using a framework similar to a business case, start by identifying what HR processes are required, for whom and at what transactional cost. Once these are identified, you can define the requirements in terms of workflows, roles, business rules and reports for each HR process.

The next step is to assess the impact of the technology on the roles and responsibilities of managers and employees.

What job and role changes will be required?

How will the existing HR plans and processes change? What training and change management will be required? You now have a solid framework for decisionmaking and setting priorities, infusing people decisions and business decisions.

Once the strategy has been finalised, distribute it to all affected parties for their comments, feedback and acceptance.

TESTING…TESTING

A key milestone in any technology project is the User Acceptance Phase. It signals the point in the project when functionality has been implemented and requires input from the business that all the requirements have been met. Typically positioned at the end of the project, this is where the words, “confidently delivering benefit” could be inserted and where for many users, it’s their first glimpse into the system that’s about to change the way they work.

These are the people who understand exactly what the business is, how it operates and ultimately the ones that matter. Careful attention to the individual’s motivation, time constraints and skill level will ensure accurate inputs into training, risk and change management.

COMMUNICATE…

Finally, the whole thing comes down to an ongoing and relentless communication campaign. Ensuring that all employees within the organisation are aware of what is going on and have an avenue for feedback can be a challenge.

The result, otherwise, is employees in an environment that is unfamiliar, uncertain and unclear. Meanwhile, those who are disengaged focus on the flaws and often end up resisting change.

With any type of change, you must manage anxiety. To move people to a new way of working, you need to create a positive spin. A good strategy involves marketing, which effectively brands and launches the project. This experience will create awareness and excitement celebrating the new HR technology. At the end of the day, it is first impressions that last. Good luck!

CHANGE MANAGEMENT

risk mitigation

THINK LIKE A LAWYER How can HR professionals minimise the risk of litigation when it comes to complex business changes such as M&As, restructures and downsizing? Rebecca Mason presents six key tips HR is often in the unique position of being the ‘eyes and ears’ of the business and integral to significant business change. Where employees are impacted by the change, this can give rise to legal risk.

This article sets out six tips for HR professionals to consider when implementing a complex HR project, such as a restructure involving redundancies, which may lead to litigation.

Tip 1 – Document your process Clarity of process is crucial. Just as critical is documenting it. Bear in mind that the process (and more to the point, any description of it) may be used in legal proceedings as part of internal or external communications, or even find its way into the media.

Setting out the process you will follow in a comprehensive ‘guidebook’ assists in demonstrating the care and rigour of your process.

For example, in the case of a large-scale restructure, such a guidebook may include: • details of the work areas which will be effected by the

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restructure (and the business case behind this) • the timing of the restructure • the process for selecting employees for redundancy • details of the process for considering redeployment of effected employees • details of the internal checks which you have set up to ensure the restructure is fair (for example, an internal appeals process for effected employees) The guidebook should be distributed to all HR professionals involved, as well as the managers involved, after seeking legal advice on its content and distribution.

Tip 2 – Get the right managers involved

Resist the temptation (and the pressure from the business) to get in there and get things done without the right preparation. A good, solid process takes time

Your decision-makers will be witnesses in the event of litigation. Having more than one decision-maker creates risk in and of itself. Who is best placed to give the evidence having regards to their involvement, seniority, time, etc? Thought needs to be given to this issue. In some instances, managers will need training in the process. Proof of the training is sometimes helpful in defending claims.

For example, privilege is waived if you divulge the contents of legal advice beyond those who are relying on it for the purpose of advice.

Tip 3 – Discovery: Consider documents from the start

Tip 4 – Communicate in advance with the business about the potential risks

A court is likely to order that the parties ‘discover’ all documents which are relevant to the issues in question.

For example, if an employee who is selected for redundancy as part of a restructure brings an ‘adverse action’ claim under the Fair Work Act, the company may be required to produce the relevant employee’s personnel file, and any emails, text messages, letters or other documents which illustrate the relationship between that employee and the managers involved in selecting that employee for redundancy. If redundancies are due to declining economic conditions for the company, evidence of this may be necessary.

The prospect of discovery gives rise to two key sub-tips: • ensure that all potentially relevant documents are easily accessible so that if the court orders discovery, you can comply with your obligations in the required timeframe • ensure that no documents are destroyed (albeit inadvertently) – it is against the law to destroy documents which are reasonably contemplated to be required for litigation purposes A record of discussions with, for example, employees and union representatives, is crucial and taken at the time of discussion or following shortly thereafter.

Remember that all documents brought into existence for the dominant purpose of providing legal advice will be subject to legal professional privilege, and not discoverable. However, this is provided that you do not act in a way that waives that legal professional privilege.

No matter how excellent your process is, it is possible (if not likely) that some sort of legal action will follow a complex restructure. Ensure that the business is aware of the legal risks of implementing such a restructure. If there is the potential for a court to order that the process be put ‘on hold’ this needs to be factored into the timeline/cost equation and the business needs to be aware of this. For instance, in workplaces where enterprise agreements operate, very often the dispute resolution clause will have the effect of putting a business change ‘on hold’ pending the resolution of the dispute.

Tip 5 – Take your time and use the resources you have available to you at the beginning to set up the process, and everything else will follow Resist the temptation (and the pressure from the business) to get in there and get things done without the right preparation. A good, solid process takes time, and is worth the investment. Assemble a team (with a project manager) and consider getting experts involved (be it legal, communications, industrial relations, government relations, etc).

Tip 6 – Be conscious of other issues Is the business in or about to be involved in enterprise bargaining? Are there employees on workers’ compensation who might be impacted? Are there health and safety considerations? In other words, be cognisant of whatever other issues might arise which may impact or be impacted by the change process.

About the author Rebecca Mason is an employment law specialist with Freehills. She recently assisted a client with a major restructure

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EMPLOYEE BENEFITS

financial literacy & corporate health

LIVE LONG & PROSPER Beer on tap and Playstations in the break-out lounge are all well and good, but how about some of the more meaningful employee benefits you may have overlooked? Patrick Durrant looks at two unique offerings – and also a special way to tie it all together

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Corporate health insurance is certainly nothing new, and many large organisations have been offering this benefit as part of their employment package for many years. However, in Australia there is a degree of uncertainty amongst HR managers about the advantages of such plans and the benefits they can bring to employees and employers. There is also some misplaced apprehension about the level of HR involvement and the corresponding workload increase.

Although corporate healthcare plans are offered by most of the large health insurers, they tend to fly under the radar.

Peter Scullin, director of Health-link Consultants – a brokerage firm that acts on behalf of health funds – argues that if a collective group of people such as those working for an organisation can be put together on a plan, instead of just one family or one couple, then those people can expect to pay less for their healthcare.

“The health funds tend not to shout about it too loudly – they prefer to do it through us because most health funds prefer to sell their products on a stand-alone basis on their own terms. If they can sell nil or low excess products they are making more money… they prefer to think in terms of market share and premium income,” he says.

HOW IT WORKS

How can corporate healthcare cost less? The answer lies in an excess refund pool. Consultants like Scullin recommend that anyone joining a corporate plan take out hospital cover with a high level of excess, for example $500. Everyone on the plan is therefore paying lower premiums. When an employee is admitted to hospital, he or she will pay the $500 excess but this is refunded in full as a tax-free workplace benefit when they present the receipt to their employer. The employer is not left out of pocket either. The refunds are funded from the excess refund pool, a deposit administration account. The discount that the company plan gets from the health insurer (up to 12% for large companies like BHP Billiton but more like 4% for SMEs) is not paid to the employee directly but deposited into this pool.

The real cost savings comes when one considers that the difference between the high $500 excess product and the nil excess product is about 20%. Thus the employee with the company plan is getting a saving of close to 20% rather than the initial 4% saving on the healthcare plan.

The employer doesn’t have to pay any tax on the workplace benefit paid to the employee because they are covered by an exemption from fringe benefits tax (FBT) in an Australian Taxation Office class ruling.

The brokers are paid a fee by the health funds to implement plans. For those dealing in company healthcare plans, such as Health-link Consultants, this fee is ongoing, which allows the brokers to offer free reviews

Why provide a corporate health insurance plan?

• REDUCED STAFF TURNOVER: improving workplace benefits for employees can provide an incentive for them to stay • REDUCED ABSENTEEISM: having employees on a plan reduces the chances of employees experiencing lengthy waiting times for treatment and provides them with prompt access to private healthcare, thus enabling a return to work in the shortest possible time • EMPLOYEE MORALE AND WELLBEING: give your employees peace of mind for themselves and their families.

Avoid the stress employees may face if they have to wait for treatment and in turn avoid the associated drop in productivity and motivation • YOUR PEOPLE ARE YOUR GREATEST ASSET: providing employees with access to a plan sends a clear message that the employer values and cares for its employees.

This can enhance employee loyalty, confirming the employer’s position as an employer of choice

every two or three years. Reviews are important because health funds can change their policies from time to time.

Brokers can select plans from the funds they represent so as to cater directly to the needs of the particular organisation.

“People don’t compare health insurance like car insurance or house insurance because they find it all too hard. When comparing apples with apples on health insurance, you’ve really got to have a lot of knowledge,” Scullin says.

HR BURDEN?

Scullin agrees there is some work involved but a large chunk of the work comes during the initial roll-out of the

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EMPLOYEE BENEFITS

financial literacy & corporate health plan and consists primarily of the need to educate employees about the benefits of the plan.

Stuart Gillespie, a senior manager with Moonee Valley City Council in Victoria, worked closely with consultants to pioneer the Local Government Association (LGA) health plan now available to many employees in that state.

Gillespie says that any new program for employees always requires a certain level of work to be undertaken by the employer. Information, education and awareness sessions and materials are necessary to ensure employees are well informed of the opportunity and benefits of either switching their existing health fund membership or taking out health insurance coverage. “For an organisation as large and complex as an LGA, communications of key programs are always a challenge.

We needed to ensure that the communication and engagement strategy was more than a ‘one-off’ event, but was ongoing and accessible to both new and existing employees,” he says.

What is important to note, however, is that HR managers can look to the support offered by both the health fund and the consultants during this implementation phase. The nature of the roll-out depends largely on the structure of the organisation, the displacement of employees and their work patterns.

The message must also be tailored to suit the needs of the employees within the organisation. Some younger employees might never have considered a health plan before whilst older employees might need some education on the improved benefits they will receive through membership of the company plan. Health funds and consultants are willing to work with HR managers to provide staff with one-on-one consultations and information.

Gillespie proposes the idea of using senior managers (who are already advocates of the plan) as champions

KNOWLEDGE REALLY IS STRENGTH

27%

of Australians claim a low level of super knowledge yet have made preparations for retirement; 24% of these people are positive towards or satisfied with their fund

71%

of Australians claim a high level of personal finance knowledge and have made preparations for retirement; 78% of these people are positive towards or satisfied with their fund Source: Mercer Superannuation Sentiment Index Dec 2010

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“People don’t compare health insurance like car insurance or house insurance because they find it all too hard” – PETER SCULLIN who can promote the benefits and encourage their direct employees to participate. He adds that it’s up to HR managers to prepare the employees and usher them towards the professionals so they can get the information they need.

“Once the plan is established, there is minimal ongoing work required, apart from ensuring that regular and timely promotion [of the plan] to new and existing employees continues,” Gillespie says.

IMPROVING FINANCIAL LITERACY

Another benefit that may have slipped under the radar is the provision of tools to help improve your employees’ financial awareness. Whilst the situation is slowly improving, there are still many Australians who have, for example, a poor awareness of their superannuation fund.

Educational models aim to increase employee engagement and awareness of their financial situation and this can end up as a win for the employer as well as the employee.

Matt Linnert and Robert Skinner are the co-founders of innergi, a company that provides innovative online financial education. They stress the importance of ‘financial fitness’ and claim that a key element of this is financial knowledge and literacy. They also point to the costs of financial stress as it undermines pay satisfaction and sustainable work performance. They developed the Financial Knowledge Centre (FKC) to assist employers and their employees, fund providers, financial planners and individuals. A fee gives access to the FKC, an application which contains videos, quizzes, articles, activities, learning modules, calculators, newsletters and many other educational and motivational tools.

Linnert sees the FKC as an additional benefit for employees. “Most people go to work to earn money, so providing financial education and associated tools and

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EMPLOYEE BENEFITS

financial literacy & corporate health

Financial education is one of the most important benefits an employer can offer – MATT LINNERT

resources is one of the most important and relevant benefits an employer can offer to their people.”

Each employer has significant tailoring options with the FKC, including branding as well as the capacity to turn on and off content, or add content to suit the specific needs of their workforce.

Benefits such as the FKC are educational tools that employers can choose to fund themselves or in conjunction with fund providers. However, Linnert stresses that “the cost of delivering this resource is minimal compared to the organisational cost of employee financial stress and/or disorganisation”.

TYING IT TOGETHER – THE BENEFITS REPORT

In these tough financial times, employers are starting to see the advantages of educating their employees about the totality of benefits and rewards they receive. It’s a way of adding value to the job without necessarily incurring huge costs. Many employees may be unaware of the complete suite of benefits available to them.

Brian Zanker, director of Finergy, a company that assists organisations with the communication of their employee benefit programs, notes: “It’s about trying to get the employee and essentially their family more connected with some of the value proposition that their employer puts on the table.”

Finergy uses a sophisticated IT process which retrieves data from various funds and benefit providers and then merges and converts this data into a rich story for the employee. This allows the employer to communicate these benefits with a large number of people in a personalised way. The employee receives an 40

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Employee Benefits Report, which is sent to their home address. The employee can then see the information pertaining to all of their company benefits in an easy-toread and ‘shareable’ manner. Employees can interact via the member centre website, and in doing so can make the report even more pertinent to their financial situation by adding information that their employer might not have access to.

“It is a very personalised, engaging communication medium… quite often a lot of employers have bits and pieces of information all over the place and nobody brings that information together into one concise, personalised package,“ says Zanker.

For HR managers, benefit communications programs can help to make their working lives easier. Most of the information provided in the reports is easy enough for them to compile but, especially in a large organisation, it can be challenging to communicate this in a personalised way. “Often the communication that you see is in a format of one-size-fits-all,” says Zanker. He sees that many organisations are also struggling with the medium via which the benefit information can be communicated.

“When they get the process, it is almost like an epiphany and it says ‘wow! – here is a mechanism that can actually engage with our employees in a really personalised way at home, where they can share the information with partners and other family members’,” he says.

The whole focus, Zanker concludes, is about empowering the end-user or member. Happier, more knowledgeable and engaged employees? Surely that’s an outcome every employer should aspire to.

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EMPLOYEE BENEFITS

salary packaging

An offer they can’t refuse Remuneration structures have shifted significantly towards non-cash benefits, writes Jon Finlay

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Sad to say, when I received my first pay packet, it came in notes and coins in a little envelope I had to queue for outside the payroll department.

Working in tax, I was aware of salary packaging – but my remuneration level and lack of seniority basically ruled me out of being considered for such a privilege by my employer. I was already paying the lowest marginal rate.

Since the 1980s, salary packaging has been used widely throughout corporate Australia to help reduce the overall rate of tax paid by higher-earning employees. Effectively, a wide range of expenses and other payments could be taken out of pre-tax income, thereby reducing the gross salary and, potentially, moving the salary earner to a lower rate of tax on the remainder. Things like school fees, rent for mobile employees, car costs, entertainment and even groceries could be obtained through ‘salary sacrificing’. It was a popular element of remuneration structures and largely regarded as an executive perk.

But since the advent of fringe benefits tax (FBT) in 1986, salary packaging has had to change with the times.

FBT was the Keating government’s solution to the challenge of capturing non-cash benefits and some salary packaging arrangements under the income tax system.

Given these remuneration strategies were most often used by higher income earners, FBT was set at the highest marginal rate, plus the Medicare Levy.

Given FBT is a tax on employers, how has this impacted salary earners? Over the last 25 years, various proposals have been submitted to government to ‘improve’ the FBT regime and these reforms have generally closed down a number of loopholes in the system. As a result, salary packaging has become more restricted, less attractive, increasingly expensive for employers to offer and a compliance burden.

As a result, companies are looking towards different reward and remuneration strategies that can be offered right across their workplaces – rather than necessarily benefiting senior staff, managers and executives. In the growing sophistication of the role of HR, this is a key element of developing an organisation’s employee value proposition (EVP). Of course, salary packaging is still available and used by a wide range of employees.

HOW DOES SALARY PACKAGING WORK?

An employee gives up a future entitlement to salary or wages in return for their employer providing benefits of a similar value. The major benefit is that the employee is subject to income tax calculated on their reduced salary and the portion of salary that is ‘sacrificed’ or packaged becomes tax-free income.

That doesn’t mean there isn’t a cost to the

Table 1: What can be salary packaged?

ITEM Additional superannuation contributions Laptops, including iPads, tablets (classified as ‘electronic devices’)

FBT EXEMPT

FBT PAYABLE

(WITH CONCESSIONAL TREATMENT)

✔ ✔ (Must be used primarily for business use i.e.

50% as a rule of thumb)

✔ (If primarily used for private purposes)

Car – novated lease

✔

Education – work-related professional memberships, subscriptions to trade/professional journals, newspapers, selfeducation In-house childcare facilities

FBT PAYABLE

✔ (Taxable amount reduced by otherwise deductible rule) ✔

Car parking

✔

Airline lounge membership

✔

Purchase additional annual leave

✔

employer. While some benefits may actually be taxdeductible for an employer, some may be subject to FBT, while others may have an FBT liability but attract a concessional rate. Table one provides examples of popular items that can be salary packaged.

CURRENT TRENDS

So, if salary packaging is considered a benefit for employees, why are we seeing less of it these days? Again, the short answer is the changing taxation regime.

As of 1 July 2009, reportable fringe benefits have been taken into account in calculating other, generally means-tested entitlements, for example, the Medicare Levy Surcharge, Higher Education Loan Payments (HELP) and the family tax benefit. The value of some fringe benefits is included alongside an employee’s salary in terms of working out their entitlement to means-tested benefits and their obligation to make various payments, for example, child support.

And, as of 1 October this year, there has also been a major change in how foreign and domestic employees qualify for the Living Away From Home Allowance (LAFHA).

Employees transferring interstate must maintain their home residence in Australia for personal use and the LAFHA benefits are available for a maximum of 12 months only. The onus is on the employee to obtain substantiation for their accommodation costs. For HCAMAG.COM 43

EMPLOYEE BENEFITS

salary packaging Table 2: Examples of ‘non-traditional’ benefits FINANCIAL

HEALTH AND LIFESTYLE

• Partnering with providers to offer discounted rates/additional benefits on corporate mobile plans, gym memberships, private health insurance premiums • Provide further study support for related courses • Employee referral bonuses • Purchase additional annual leave (can be salary sacrificed) • Employer increases SGC to above statutory level • Career and development – providing professional membership subscriptions, external coaching/ workshops, leadership training

• Providing insured benefits, for example, death, TPD, disability income benefits, personal accident, corporate travel, private health • Employee assistance programs – for example, counselling service from an external provider • Job-sharing • Career breaks with guaranteed employment upon return • Free health checks, flu vaccinations, chronic disease management programs • Allowing employees to take one day per year for community service/charity day • Providing childcare facilities • Paid parental leave • Access to healthy food options for example, fruit baskets and providing on-site fitness classes • Workplace giving programs – contributions can be made via salary sacrifice, community/charity days

About the author Jon Finlay is head of executive compensation, Australia, Towers Watson

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domestic employees, the eligibility criterion has not changed significantly. However, for most foreign employees working in Australia who do not have a home residence in Australia, the reforms mean that they are generally no longer eligible for LAFHA concessions – their accommodation and food is no longer FBT and income tax exempt.

For both domestic and foreign employees, the LAFHA changes have reduced their net pay, as well as increasing employee income tax costs, payroll tax and workers’ compensation. How this impacts on Australia’s ability to attract and retain talent is yet to be seen but may be felt in the near future in the construction and mining services industries, where there is already a skills shortage.

The impact is designed to improve the government’s budget outcome – according to the Parliament of Australia Budget Review 2012/13 paper, the LAFHA changes alone are expected to provide gross savings of $1.7bn over the forward estimates period (up to 2015/16).

The bottom line is that whichever way an employer moves in order to try to offer their people benefits, there is likely to be a cost. Given that, historically, most of these

benefits have been the preserve of executives, companies are now moving towards creating more holistic benefits.

There is now much more emphasis on creating benefits that support a company’s EVP. Rather than the focus on executive-level perks, there is a growing appreciation of providing more ‘simple’ yet effective benefits across an organisation.

Key here is the incorporation of ‘lifestyle’ type benefits that lead to an increase in employee engagement and retention, and recognition by a company’s workforce that their leaders are investing in them and their ongoing development.

‘Packaging’ has become a different term. Aside from the base salary, employees are increasingly weighing up the wider, non-traditional benefits that are provided by a company as they consider whether to stay with an organisation, or move to another. These include things such as flexible work arrangements, kitchen facilities and healthy food alternatives, on-site childcare and community days.

For the employer, the ROI in providing such benefits is, essentially, employee engagement and retention, less absenteeism and heightened job satisfaction. At the same time, some benefits may not actually result in an increased employer cost.

The focus is changing. Rather than direct benefits to certain individuals within an organisation, usually as a reward for executives, the benefits are offered to all, irrespective of job level. It’s all about creating a ‘stickier’ workplace. Employees welcome the lifestyle enhancements, the support for their career development and actively factor the benefits when it comes to making comparisons between jobs and companies.

CHALLENGES/CONSIDERATIONS FOR EMPLOYERS DEVELOPING A ‘STICKIER’ WORKPLACE

Put simply, there is likely to be an associated cost to an employer for developing any benefit across an organisation. FBT may be payable on certain benefits and there could be an increase in employer obligations such as payroll tax and workers’ compensation.

It’s also incumbent on employers to determine what kind of benefits are going to resonate with their employees – providing a suite of benefits that is not valued by the workforce is not going to be effective.

Communication is enormously important. Employees need to perceive the shift from executive perks to organisation-wide benefits as a positive. Are all employees aware of the benefits currently provided? Are they aware of how the benefits can work for them?

There’s a move away from minimising tax to obtaining wider benefits. A stickier workplace underpins the career and lifestyle aspirations of all employees – flexibility, support and development.

ASK THE EXPERTS

novated leasing

Call Maxxia today on 1300 728 801 to see how we can develop a novated leasing program that works for you and your employees.

Driving employee benefits Attracting and retaining high-quality employees is critical for businesses. Increasingly, employers are offering novated leases and other workplace benefits to incentivise and reward staff.

Maxxia – Australia’s largest and most trusted workplace benefit provider – answers some commonly asked questions…

Q. WHAT IS A NOVATED LEASE? A. A novated lease is a tax-effective way

for individuals to drive a car and pay for its running costs. It’s a popular workplace benefit offered by many employers to help their employees finance a car.

For many employees, a novated lease is a convenient and cost-effective way to maintain a new or used car, with prebudgeted salary deductions typically covering, fuel, maintenance, tyres and finance payments. For employers, a novated lease can be a great tool to include as part of a total remuneration and reward strategy, at no cost to their business.

Q HOW DOES IT WORK? A. After choosing a car, the employee

agrees to cover the lease repayments and running expenses such as petrol, maintenance and insurance, using a combination of their pre- and post-tax income. The car is ordered and delivered, and a Deed of Novation is signed between the employee, employer and finance company. A salary packaging provider like Maxxia is typically engaged to manage and administer the receipt and disbursement of payments through the client’s payroll department.

Q. AREN’T NOVATED LEASES FOR PEOPLE ON HIGH SALARIES, DRIVING EXPENSIVE CARS OR TRAVELLING LONG DISTANCES?

A. No. The good news is employees don’t

have to be high-income earners or drive long distances to qualify. With new Australian Taxation Office rates being phased in, all drivers, regardless of how far they travel, could benefit from a novated lease.

Q. DOES IT INVOLVE A LOT OF WORK FOR THE EMPLOYER? A. If the program is administered by a

salary packaging provider, there is very little ongoing work for the employer.

A set amount is agreed to cover finance and running costs, and this is deducted from the employee’s salary each pay period. Funds are then transferred to the salary packaging provider (eg Maxxia), who allocates them accordingly to cover lease payments and running costs.

Maxxia also looks after FBT reporting for employers and keeps employees up to date with regular information on how they are tracking against their budget and agreed kilometres.

Q. WHAT ARE THE BENEFITS FOR THE EMPLOYER? A. Employers who implement workplace

benefits or incentive programs have found it’s a critical factor in business success and profitability.1 A workplace benefits program can be used to drive staff attraction, retention and engagement. In some cases, it can also be a viable and cost-effective alternative to offering a fully-maintained company car. And at no cost to the employer, a novated lease can provide an effective increase of between three and eight per

cent of take home pay, depending on an employee’s salary.

Q. I’M THINKING OF OFFERING NOVATED LEASES TO OUR EMPLOYEES. WHAT SHOULD I LOOK FOR IN A PROVIDER? A. There are a number of things to look for

in a salary packaging provider.

Proven experience in educating and engaging employees through direct employee communication and education programs is key. After all, if staff are not taking part in your workplace benefits program, then arguably no one is benefitting.

An experienced provider should have a range of tools and resources available to provide ongoing communication, onsite presentations and one-to-one consultations for your staff.

You should also take into consideration what processes and systems the provider has in place to administer your program, and be confident that they can align with those of your own. If you manage a national organisation, the provider’s reach is also important – are they able to reach employees Australia-wide?

Service excellence is another important consideration – make sure you are satisfied with the provider’s employee service component, and that it will reflect well on your organisation and its reputation.

References ¹. Aon Hewitt’s Best Employer Australia and New Zealand Survey 2011. Employers with an engagement score of 65% or more can demonstrate an average profit growth almost four times that of other organisations.

HCAMAG.COM 45

PROFILE IAN FLEMINGTON

HR at Canon

Just my imagination

(running away with me) Corporate values like ‘teamwork’ and ‘passion’ seem dull alongside ‘imagination’, which conjures up different ways of thinking, innovation and even childlike enthusiasm. This month’s profiled HR professional outlines how imagination has been unleashed in his workplace At first glance, the two words ‘imagination’ and ‘business’ don’t appear to be natural bedfellows. Yet, with all the talk about fostering cultures of innovation in Australian business today, the two are more aligned than one might think.

It’s a concept that Canon has put into practice with its Imagination for Business initiative. Championed by the HR team, including Ian Flemington, general manager – human resources at Canon, what started as a fresh twist on L&D has since developed into a concept with far-reaching consequences – not just for Canon but for all businesses.

“It’s important to reinforce where it started,” says Flemington. “We focused on our internal values, which identified the fact that imagination was one of the values the organisation and, importantly, our employees recognised as being valuable. Then we went into understanding the link between imagination and business performance.”

The key to the initial experiment was to understand how and why imagination, as a learning intervention, could drive greater retention of knowledge. Canon partnered with research teams from the University of New South Wales to conduct the experiment.

Members of the Canon Business Imaging Sales Team were split into two groups and asked to participate in an e-learning program. The imagination group was instructed to use their imagination to learn concepts and procedures about a Canon product, while the study group was instructed to use traditional study methods.

Each group completed multiple choice tests on product

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knowledge before and after the e-learning program.

“The imagination piece was where we instructed the participants to use visualisation techniques in training exercises on a multi-function device or MFD. Those that used imagination techniques had a much higher retention of that knowledge when it came to the test at the end,” says Flemington.

Indeed, among the key findings were that 63% of the imagination group’s test results improved, compared with 29% for the study group.

Armed with the study results, Canon embedded the concept of imagination across all L&D offerings.

“We were already in the process of completely changing all the offerings we had in place for this year, so the first thing we did was ensure we only partnered with facilitators or other organisations that align with our thinking in this space. Every facilitator is briefed on how to use imagination in the workplace and in the learning experience.”

Flemington concedes that initially there was some scratching of heads about this ‘new’ way of learning.

For example, one element is serious play. The first time experienced managers were asked to sit down and play with Lego was “a bit of a mindshift for some people”, he says. Yet, serious play has been proven to stimulate the thought processes and responses people have as a child, which tend to be shut down once adulthood is entered.

“To some, it’s a little bit esoteric in terms of ‘what does this actually mean for me?’ The research is still quite new but, as we move towards the end of the year, we’ll be looking at putting some measurements around it – how we can truly assess the impact across the organisation

“Innovation is what could be possible; imagination is how we get there” – IAN FLEMINGTON

IN HIS OWN WORDS...

What achievement are you most proud of in your career?

“The employer brand work at McDonald’s when I first arrived in 2004. At the time, McDonald’s had had people queuing up outside the door wanting to work there from the age of 14. [But] there were some cooler funkier brands emerging at the time who were starting to take that away from us. We were one of the first markets around the world to launch an employer brand campaign leveraging our EVP. The tagline for the brand was: ‘your money, your hours, your way’ for crew, and a different one for management – ‘your career, your development, your opportunity’. While the tagline has changed, the concept remains the same today. It was incredibly successful in terms of driving attraction to the brand, but also addressing influencers.

One of the things we’d lost at the time was the support of influencers like teachers, parents, etc – so we took the message to that group as well as target employees.”

Personal file: Ian Flemington

Family: Myself, partner and Holly the cat.

Favourite sports: Everything that Team GB won at the Olympics.

Favourite movie or tv show: Crash Best advice ever received: Life is not for the faint hearted.

Self-described: Tenacious, generous with time and spirit, determined, pragmatic, and anyone who knows me would say fervent Monarchist as well.

Hobbies: CrossFit, which is a style of personal training.

First job and/or worst job: Time share telesales in my first year at uni.

If not in HR: Pilot – I still regret not joining the air force.

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beyond just the learning intervention. Right now I’d say the biggest result has been the enthusiasm it has generated for learning differently.”

The concept has also paid dividends for the Canon R&D team, based at a North Ryde campus in Sydney.

Known as CiSRA, the 200 researchers and engineers will be working on imaginative technologies, intellectual property and customer insights for Canon Inc, for development of future products and services.

There are plans to introduce the ‘imagination for business’ concept to the toolkits of all Canon managers, yet Flemington is wary of overloading the business with new initiatives. Coming to the end of the first full 12 months in which the Canon values have been in place, the plan for 2012 was to concentrate on one value – achievement and delivery of commitments to parent company Canon Inc and shareholders, and to upskill managers accordingly. In the new year, the focus will shift to the next Canon value: ‘imagination’.

The key will be to keep the Canon values alive for individual contributors, people managers and operational and strategic leaders. “How do they create that environment where people can use their imagination to experiment? They must be given the time and the headspace to think ‘blue sky’.”

Flemington believes imagination and innovation work closely together. “Innovation is what could be possible; imagination is how we get there,” he says.

As a specific example, Flemington cites Canon’s managed document solutions, which are essentially solutions lifted ‘off the shelf’, thus representing the ‘what’s possible’ side of the equation. The sales team, however, needs to be able to demonstrate to the customer how they will benefit from those, and how they can use them in their business – because all of these solutions weave together in different ways. “Innovation doesn’t need to be about any one particular individual, but individuals can then apply their imaginations as to how to make it real with customers. How do I get there with my customer? How do I bring this to life?”

PATH TO CANON

Imagination for Business sums up the reason why Flemington originally moved into HR: the ability to make a difference in people’s lives, whether that’s listening to an employee about a grievance or rolling out a fantastic initiative. “You can touch different people’s lives in different ways, and leave a mark,” he says.

When he left university in the UK in 1994, Flemington had intentions of joining the air force but changed his mind. While working for McDonald’s during his studies, he landed an assistant manager job with the fast food giant. Further promotions proved that he enjoyed the people management aspect of these roles the most, so

?

DID YOU KNOW

Imagination is the ability to form mental images, sensations and concepts in a moment when they are not perceived through sight, hearing or other senses. However, it remains one of Australia’s most underrated assets.

• When asked to rank a list of 15

workplace characteristics, imagination was given the wooden spoon – tying with ‘tenacity’ for last place. Topping the list were communication skills, a hard work ethic and passion.

• Only 36% of Australian businesses said they train people on how to apply imagination to their work.

• Less than half of respondents (47%) said they actively try to harness and share imagination in their

workforce.

• Forty-six per cent of organisations believed that imagination was related to a company’s productivity levels, but only 38% believed that imagination was related to a company’s revenue.

Source: imaginationforbusiness.com.au

Flemington took advantage of McDonald’s secondment program to gain experience in HR and training roles.

“I took a two-year secondment in the year 2000 into national HR – and loved it. It was a generalist role, so I went back to uni at that point to study HRM. That’s how I first got into HR – it was the right place, right time.”

Flemington’s professional network led to a role with McDonald’s in Australia, and he made the move in 2004. He joined Canon in 2008, as the HR operations manager, and moved through to GM of HR in March 2012.

Comparing the two companies, Flemington says the business models are radically different. McDonald’s operates with a decentralised HR model. Coming to Canon was very different – “an internally-focused role but incredibly rewarding,” he says.

PROFILE IAN FLEMINGTON

HR at Canon THE FUTURE

There are several key HR challenges Canon is facing.

First up is handling the pace of change. With a constantly evolving business model and operating leaner than ever before, Flemington says the challenge is to continue to engage people. “If you look at the metrics – for example, attrition – that’s falling, yet we’re operating with significantly less people than we did last year and achieving more. So how do we keep tapping into that effort to make sure we keep people engaged around our ultimate objectives? One of the things we’re rolling out is a pulse survey, so we can better understand and articulate what it is that is keeping people here – what is keeping them engaged around the brand? – so we can continue to leverage that.”

Secondly, there will be focus on talent identification and retention. Canon has never had an organisation-wide talent management framework or structure, but a trial in one division last year has greenlighted an organisationwide roll-out. Flemington hopes it will facilitate a “cross fertilisation” of talent across the business. “We have very distinct business units but as we’re working leaner, there are fewer opportunities to retain that top talent and provide them with opportunities or roles that continue to

allow them to grow – we need to move them around the organisation to retain them more effectively,” he adds.

Finally, there will be the integration of Oce, a Dutch company Canon Inc has bought globally. The integration is just starting at the Australian level. Canon Australia employs 850 people locally, while Oce has 150 – so corporate culture issues will come into play. “It’s a challenge, not just in terms of how do we transition Oce employees into Canon, but how do we get our own people ready for the fact that they will be working alongside these people. We’re quite conscious that what we don’t want is to bring them in, give them a new seat and leave them alone. We want to get our existing Canon workforce ready for the fact the Oce team are coming and there will be people who will go into that group, and vice versa.”

With alignment scheduled for 1 January 2013, Flemington notes that transparent communication will be crucial, but also recognises that Canon needs to change as well. “Everybody is assuming we’ll roll in as the big brother and take over. We don’t want to do that. We want to make sure we keep elements of the [Oce] culture alive so they feel listened to, heard and valued,” he concludes.

More industry profiles at:

hcamag.com

HCAMAG.COM 49

HR STRATEGY

teamwork

Break down

walls

the

Poor teamwork hampers countless business outcomes. Graham Winter outlines how certain organisational structures – such as the ‘experts in silos’ model – may be to blame

Despite the flood of collaborative technologies and better awareness of value chains, the harsh reality in Australian business is that many organisations are still stuck in an ‘experts in silos’ model that is bottlenecking execution and innovation. Put simply, you have an ‘experts in silos’ model when: • big problems are routinely given to technical experts to fix • cross-boundary debriefing and learning is non-existent • people think accountability means they get to do it all themselves instead of being accountable to deliver outcomes through engagement and partnering

THE BUSINESS CASE

From mining to manufacturing, government services to tourism, and from small to large corporations the imperative for collaboration that adds to speed and agility is paramount, and yet five examples of this poor teamwork

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across boundaries prevail across Australian business: 1. costly overruns on the implementation of initiatives such as new information systems, and changes to distribution channels 2. turf fights between divisions or sites that distract people, impact service and prevent problems from being solved along the value chain 3. delays in commercialising new products/services or policy initiatives 4. disconnects between the needs of operating divisions and support services in administration and operational areas that lead to lost opportunities and added costs 5. breakdowns in alliances, partnerships and mergers/ acquisitions, particularly where there are differences in culture that haven’t been understood or even acknowledged Ironically, traditional teambuilding can actually make this worse because while strengthening teamwork within the boundaries of teams, functions and sites, they routinely undervalue the equally important partnering with others.

As a senior executive in a big engineering & construction business bemoaned, “we’ve been spending millions on developing teams and zero on connecting them”.

A BETTER WAY

The search for a better way to build the capability for teamwork across boundaries led to some interesting findings. For example, most organisations have instances of both good and poor teamwork across boundaries, so the capability exists but the reliability and consistency either disappears under pressure or it isn’t cultural.

When we studied these successful and unsuccessful attempts at driving across-the-organisation initiatives, a set of five behaviours or practices emerged that offer a way to understand how to guide teams to connect with others.

Those practices form a framework we called ‘think one team’ and it is remarkably effective in predicting success on key business initiatives that demand strong partnering.

To understand the five practices and how team leaders can use them, let’s explore what happens when crossboundary initiatives fail and what’s different when they succeed.

WHEN INITIATIVES FAIL

When cross-boundary business initiatives fail, the five practices adopted by the ‘players’ are typically: • pursue your own agenda – no shared bigger picture between units, little understanding/empathy for other’s situation, leaders allow conflicting agendas to prevail • avoid and deny – reality checks are avoided, feedback is poorly directed (if at all), conflict simmers without being channelled constructively • stifle communication – poor listening, email is the

main means of communication, information is hoarded, alternative views are dismissed/discouraged • protect your own turf – planning and prioritisation happens in isolation, status influences decisions, language and processes are inconsistent • play ‘I win, you lose’ – people look to blame as soon as things go wrong, success is rewarded for ‘inside the silos’ behaviour, there is little or no debriefing

WHEN INITIATIVES SUCCEED

When cross-boundary business initiatives succeed, the five practices adopted by the ‘players’ are typically: • share the big picture – work together to define a superordinate goal, leaders visibly make decisions based on agreed principles including ‘best for the whole business/system’ • share the reality – conversations address real performance, decision making is evidence-based, tough conversations happen face-to-face with controlled emotions • share the air – ideas are invited from outside the technical silos, information is transparent, people listen, leaders show emotional savvy • share the load – parties prioritise and plan together, roles and expectations are explicit and checked regularly, accountability for engagement and decision making is clear • share the wins and losses – close attention is paid to joint results, action debriefing means people learn and adapt together, success is celebrated together These elements describe a model (shown in the diagram) that defines the ‘best and worst’ of teamwork across boundaries but also provides a framework that is very useful for team leaders to guide their teams to collaborate across the boundaries.

THINK SILOS

THINK ONE TEAM

Pursue own agendas

Share the big picture

Avoid and deny

Share the reality

Stifle communication

Share the air

Protect your own turf

Share the load

Play ‘I win, you lose’

Share the wins and losses

HCAMAG.COM 51

HR STRATEGY

teamwork CHALLENGING CONVENTIONAL THINKING

When used as a diagnostic (visit thinkoneteam.com for a free example) and supported by practical tools (such as collaborative problem solving, partnering agreements and debriefing) this framework is very effective, however it does challenge the conventional approaches to ‘demolishing silos’. Let’s look at three conventions that need challenging: 1. Structural silos are the cause of poor partnering and collaboration Many organisations have tried some form of ‘destroy the silos’ initiative but the more you try to dismantle the silos the greater the likelihood of ‘status wars’, unclear roles and resistance to change.

The core lesson is clear: Do not dismantle the silos; instead develop team leaders (from CEO to frontline) who are skilled and accountable to punch holes in them, or as one team leader put it, ‘open the doors and windows’ so that people communicate with each other.

2. Everyone must heed the call to be ‘one team’ Shifting from ‘silo thinking’ to ‘one team thinking’ requires more than just a rallying call to be one team.

Instead, put the attention on specific partnering relationships (for example, between sales and operations) and give team leaders the skills, toolkit, coaching and accountability to drive collaboration (using the five practices as a guide). This has a much greater likelihood of success because it is business-focused and not a vague call to ‘behave better’.

As Carlos Ruiz, head of organisation development for Carl Zeiss Vision Global Operations noted, “this approach has enabled us to invest in people while getting a business result at the same time.”

3. Tension is a sign that partnering is failing Tension between business functions is more a sign of life than ill-health. It says they care and it shows they have power, so why not harness the tension by sharing a bigger picture, skilling people to share the reality, and putting in a framework so they can share the load?

A typical example is of a mid-sized financial organisation where the framework was applied to building collaboration between the sales and credit functions.

The team leaders led an initiative that boosted the capacity of this business to process loans quickly and to push decision making into the retail branches and not into head office. The result is better service, lower cost and a lift in employee engagement.

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THE CALL, THE ACTION

There is no doubt that to be a nimble and adaptive organisation requires the skills and commitment to co-create, and that means going beyond a collection of experts in silos who tackle things as technical problems.

There are three lessons for better partnering and collaboration across boundaries: 1. Use the five-practice model to evaluate the key relationships and linkages This will help to give it credibility and realism because it will show the stark contrast between initiatives that are addressed with a one team approach, versus those that are mostly tackled inside the technical silos.

2. Target the development towards team leaders They are in the ‘power position’ so by ensuring that they are upskilled and accountable to develop their teams and to connect their teams with others, it directs training and development resources where they can have the greatest leverage.

3. Go beyond teambuilding – get serious about partnering relationships Be clear about the ‘mission critical’ linkages/ relationships and then embed simple and consistent practices such as debriefing between functions/teams, and collaborative problem solving and innovation/ breakout programs that explore the whole value chain.

The business will benefit, and that makes it sustainable.

FIRST BE NIMBLE

At a time when we are questioning if the mining boom has peaked, and other industries are battling to survive, the case to make organisations more nimble and adaptive is compelling.

Few things can deliver a more immediate and cost effective impact than boosting the partnering along value chains. The five practices of think one team offer an accessible and effective framework to do that by getting the experts out of their silos and into playing a more integrated and effective game.

About the author Graham Winter is the best-selling author of ‘Think One Team’ and the recently released ‘First Be Nimble’. He is a three-time chief psychologist for the Australian Olympic Team (including Sydney 2000) and founder of consultancy Think One Team International. Contact him and his team at thinkoneteam.com or graham@ thinkoneteam.com

SIGN OFF

the lighter side written by Stephanie Zillman

8 things HR would like to say to the MD or CEO

Does this sarcastic internal dialogue reflect your HR frustrations?

1 REALITY TV MIRRORS REALITY TOO CLOSELY

In what may be the definitive sign of troubled times, a new US reality TV show will track the employees of struggling small businesses as they decide which one of their colleagues will be laid off.

The Fox network’s new reality TV show, Someone’s Gotta Go, will focus on recession-hit businesses with 20–30 employees. Instead of the boss deciding who is fired, the company will open its books to show everyone’s salaries and let the employees make the call. In an inverse to The Apprentice, instead of landing a job, the chosen one loses a job.

Fox says the laid-off worker will get a small severance, but isn’t saying whether the network or producers are paying the participants in anything beyond the chance for prime-time fame.

Not surprisingly, coming at a time when many Americans are out of work, some are questioning whether the show may hit a little too close to home. But Mike Darnell, chief of alternative programming at Fox, said everyone who participates in the show knows fully what they are doing.

“I feel that it’s part of the times that we are living in,” Darnell said.

He envisions it as a story about employee empowerment. Many people in the workplace can relate to seeing a colleague laid off and wondered why someone else they perceived as less valuable kept their job, he added.

‘BOTOX LEAVE’ THE WAY OF THE FUTURE?

Doona days are so last year. ‘With-it’ companies are now offering employees legitimate time off to attend beauty appointments in an apparent attempt to deter staff from taking ‘sickies’.

A report by UK cosmetic surgery provider the Harley Medical Group said many of its clients attend weekday appointments, taking time off with the full knowledge of their employer.

Recruitment company Blue Skies told the Daily Mail that organisations are right to be original with their incentives, and while ‘botox leave’ sounds quirky, if businesses are adopting this incentive there is obviously a call for it.

“In the current market, giving people time off for endeavours that suit their lifestyles can be a cost-effective way of incentivising staff if budgets do not stretch to other more obvious benefits,” a representative from Blue Skies said.

Yet botox leave is just the beginning of new-age trends in leave. According to a benefits survey by Mercer, in France some workers who have been employed for two years may apply to take unpaid leave for up to a year in order to start a business. If they return, they’re entitled to get their former role and salary back.

Never give me work in the morning. Always wait until 5:00pm and then bring it to me. The challenge of a deadline is always refreshing.

2

If it’s really a “rush job”, run in and interrupt me every 10 minutes to inquire how it’s going. That greatly aids my efficiency.

3

Always leave without telling anyone where you’re going. It gives me a chance to be creative when someone asks where you are.

4

If you give me more than one job to do, don’t tell me which is the priority. Let me guess.

5

Do your best to keep me late.

I like the office and really have nowhere to go or anything to do.

HEADING FOR EXTINCTION: OFFICE TOOLS ON ENDANGERED LIST LinkedIn has produced a list of the office tools and trends on the brink of extinction in Australia.

According to more than 400 professionals, the top 10 items and office trends that are becoming ‘cubicle dinosaurs’ and could even disappear in the next five years are: • Tape recorders (86%) • Fax machines (79%) • The Rolodex (79%) • Standard working hours (66%) • Desktop computers (28%) • Desk phones (27%) • Formal business attire like suits, ties, tights, etc (24%) • The corner office for managers/ executives (23%) • Cubicles (17%) • An office with a door (15%) Australian professionals selected tablets (66%), cloud storage (63%), working from home and smartphones (which tied at 56%) as office tools that are becoming more ubiquitous. Dream tools they’d like to see in the future included having a clone or assistant (32%), a place in the office that provides natural sunlight (22%) and, in a sad but amusing reflection on modern day open plan offices, a mute button for coworkers (19%).

6

If a job I do pleases you, keep it a secret.

Leaks like that could get me a promotion.

7

If you don’t like my work, tell everyone. I like my name to be popular in conversations.

8

Never introduce me to the people you’re with.

When you refer to them later, my shrewd deductions will identify them.

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