AUSTRALIAN HR AWARDS FINALISTS REVEALED
HUMAN RESOURCES DIRECTOR HCAMAG.COM ISSUE 12.7
CHANGE MANAGEMENT FLIGHT CENTRE LEARNS FROM PAST MISTAKES RIDING THE PEAKS – AND THE TROUGHS SHELL OIL’S JOHN HOFMEISTER REWARD TRENDS 2014/15 ROAD AHEAD OR DEAD-END?
Global experience,
local expertise Inside HR at Unilever
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EDITOR’S LETTER / HUMAN RESOURCES DIRECTOR
HEALTHY BODY, HEALTHY MIND?
AUSTRALIAN HR AWARDS FINALISTS REVEALED
HCAMAG.COM ISSUE 12.7
RIDING THE PEAKS – AND THE TROUGHS SHELL OIL’S JOHN HOFMEISTER REWARD TRENDS 2014/15 ROAD AHEAD OR DEAD-END?
Of the myriad surveys, insights, white papers and press releases to land in my inbox this past month, one caught my eye – but sadly for the wrong reason. It was a press release from the US with the bold title: ‘Employers ‘care about my health’, say workers, but could do more to back it up’. Well, yes – particularly when the initiatives listed for improving employee health all concentrated on physical wellbeing. From company-run health/wellness programs to on-site fitness equipment, through to health coaches, it was all about keeping the body healthy. There was no mention of psychological wellbeing whatsoever. This struck me as unusual and somewhat off the mark. What is a healthy body without a healthy mind – and indeed, can one exist without the other? Fortunately, in Australia we’re waking up to this fact. There has been an upswing in the awareness of psychological wellbeing in our workplaces, thanks to initiatives like R U OK day and organisations like beyondblue. Admittedly, we’re starting with the most obvious and widespread issues: burnout, depression, anxiety. There are many other psychological issues that fly under the radar – perhaps we’ll build up to knowing how to help employees deal with those. But it’s a start. I still hear concern from HR professionals in particular – who are often in the frontline of employee health ailments – about how to
Global experience,
local expertise Inside HR at Unilever
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Iain Hopkins, editor, HRD
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COPY & FEATURES EDITOR Iain Hopkins JOURNALISTS Janie Smith, Jill Gregorie PRODUCTION EDITORS Roslyn Meredith, Moira Daniels
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What is a healthy body without a healthy mind – and indeed, can one exist without the other? handle situations in which an employee is struggling. “Do I need to be an amateur psychologist to spot these issues?” they ask. The answer is no. HR and all managers should be able to recognise distress in others, create a conversation, and know when to refer to internal or external experts. What is important is giving all employees the confidence and competence to intervene if they suspect somebody is having a hard time – after all, it costs nothing to ask, “Are you OK?”
CHANGE MANAGEMENT FLIGHT CENTRE LEARNS FROM PAST MISTAKES
HUMAN RESOURCES DIRECTOR
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CONTENTS / HUMAN RESOURCES DIRECTOR
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Cover story: Global perspective, local expertise With hundreds of food, beverage, cleaning agents and personal care products in its portfolio, there’s a fair chance you encounter at least one of Unilever’s brands every day. Iain Hopkins talks to Danielle Van Den Broek about working for one of the world’s oldest multinational companies
16 How low can you go? Flight Centre learns from past mistakes Despite good intentions and careful planning, sometimes corporate strategies and projects simply do not work. Such was the case with Flight Centre’s change initiative, Full Throttle. HR Director asks what went wrong
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Riding the peaks – and the troughs From natural disaster to financial scandal, Shell Oil’s John Hofmeister has seen it all. He shares his rich HR experience with Jill Gregorie
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Set phasers to ‘retire’ Phased retirement is back on the agenda following the GFC. Gary Taylor outlines one best practice approach
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The art and science of mindfulness Most HR professionals are aware of the importance of emotional intelligence – but mindfulness is perhaps the ultimate in brain training for better personal and professional outcomes
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36 Heads-up about psychological health New research has revealed nearly three-quarters of Australian employees believe that a mentally healthy workplace is important when looking for a job. How does your workplace stack up?
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2014 Australian HR Awards: Finalists revealed Find out who is in the running for Australia’s most prestigious HR awards
CHECK OUT THE HRD ARCHIVES ONLINE: hcamag.com
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Profile: Gill Rees, Bankwest Bankwest’s executive general manager, human resources, reveals why the GFC was good for HR, how her career trajectory was shaped by her degree, and why personal and professional risk taking can sometimes pay off
REGULARS 04 | News analysis: Frontline managers 10 | In brief: Employer brands 54 | Last word: Employee benefits
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NEWS ANALYSIS / FRONTLINE LEADERSHIP
STUCK IN THE MIDDLE The low-down on frontline development
While there is general consensus that frontline managers are a linchpin of organisational success, a recent report indicates that only 40% of those managers receive sufficient tools and support to succeed. What’s going on, and how can the situation be improved?
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HUMAN RESOURCES DIRECTOR
Middle managers play a crucial role in delivering results, supervising and engaging the bulk of the workforce, yet this integral management group also experiences excessive stress, disengagement and a high degree of attrition as a result. A recent study has revealed that they are also not being given the leadership tools they need to succeed. The Harvard Business Review Analytic Services report,* conducted with Halogen Software, suggests that managers on the frontline are critical to sustaining quality service, innovation, and financial performance. One example demonstrates their impact. Most HR leaders would recognise that one of the most expensive and controllable costs a business can have is staff turnover. In 2003, despite the nearly 8% unemployment rate, the US Department of Labor’s Bureau of Labor Statistics revealed that more than two million Americans quit their jobs each month. Studies have consistently shown that having a bad manager or a poor relationship with one’s manager are top reasons why an employee quits.
RESPONSIBILITY VS EFFECTIVENESS Seventy-eight per cent of survey respondents cited ‘achieving a high level of customer satisfaction’ as the number one business priority achieved by having effective frontline managers. Seventy-seven per cent cited their help in achieving organisational goals, and 76% suggested their impact on productivity. Yet while there was general agreement that frontline managers were ‘mission critical’ to a successful business, the results showed a chasm between frontline manager responsibility and effectiveness. The survey provided mixed reviews on some of the most critical aspects of frontline managers’ jobs. In particular, the survey showed clear room for improvement in vital leadership competencies such as strategic and innovative thinking, developing talent, and inspirational leadership. How would you rate your frontline managers on the following leadership competencies? Business-based decision-making
33%
Organisational savvy/judgment
27%
Strategic thinking
21%
Innovative thinking
21%
Developing talent
20%
Inspirational leadership
19%
“What was particularly striking about these findings is that a full 79% of respondents believed
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WHAT’S GOING ON?
77%
33%
77% of respondents said frontline managers were important in helping their organisation reach its business goals
33% of respondents said their organisation’s frontline managers were competent in business-based decision-making
12% 12% of respondents said their organisation currently invested sufficiently in the development of frontline managers
that the lack of frontline leadership tools, training, and development negatively impact their firm’s performance ‘moderately’ or ‘substantially’,” says Donna Ronayne, VP of marketing and business development, Halogen Software. In addition, 90% of respondents believed frontline managers’ lack of leadership development negatively impacted on employee engagement results.
WHY DOES IT MATTER? With fewer hierarchical layers in many companies, more frontline managers have become the glue that connects the strategic (top management’s business priorities) with the tactical (specific responsibilities employees are given to accomplish those goals). “Spans of control are bigger – each manager supervises a lot more people – and we also expect those frontline workers to do more, to be more responsive to customers, to cross-sell, to solve problems. These managers make that happen and monitor it to make sure it continues,” says Peter Cappelli, George W. Taylor professor of management, and director, Center for Human Resources at the Wharton School of the University of Pennsylvania. There is no question that a lot is expected of frontline managers. They need to have the technical knowledge and expertise in the areas they supervise. They also need to master ‘people’ skills like leadership, communication, problem-solving and teamwork (both as leader and participant). Managers need to demonstrate customer-centric behaviour themselves, be it with internal or external customers. This means responsiveness, respect, and a focus on meeting customers’ needs. Managers need to cultivate this kind of behaviour in their employees
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NEWS ANALYSIS / FRONTLINE LEADERSHIP
by providing feedback on when employees have demonstrated it effectively, and when they haven’t. If that’s not enough, it must also be remembered that this is a critical group of leaders who oversee the performance and development of more than 70% of the workforce. Please rate the importance of frontline managers to your organisation in helping achieve the following business priorities Achieving a high level of customer satisfaction
78%
Helping your organisation reach its business goals
77%
Achieving a high level of productivity
76%
Achieving a high level of employee engagement
73%
Contributing to effective communications
70%
Continuous quality improvement
63%
Improving employee retention rates
58%
Fostering alignment of goals across the organisation
51%
Providing a pipeline for executive leadership
45%
Your organisation’s ability to innovate
42%
WHAT’S CURRENTLY ON OFFER? When training is provided, respondents cited onthe-job training (67%) as the most frequently used tool. The next most popular development methods were classroom training (61%), personality and leadership assessments (43%), online learning (43%), 360-degree feedback (42%), coaching (42%) and mentoring (41%). Other methods mentioned included providing reading materials/abstracts and webinars, and offering cross-functional assignments and job rotations. Respondents were asked to describe the training and development tools offered to frontline managers at their companies. Their replies showed that development is largely ineffective both in how it is administered and in its frequency: “It goes in spurts; at times we get high-quality training. But the ongoing growth is an issue,” wrote one respondent. “Two years ago they did a one-time extensive leadership program, but there’s only been occasional training since then,” wrote another.
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Another respondent explained that training was more incentive-based, a way for upper management to show appreciation, but noted that these offerings didn’t help with day-to-day operations. And yet another respondent made this pertinent point: “Only negative feedback [is given] when failures happen. Punishment in the form of bad performance reviews, notices of corrective action, and terminations are the rewards for failure.”
WHY IS IT SO? Surprisingly, while a significant 40% of respondents believed that their frontline managers didn’t receive sufficient tools and training to develop into highly effective leaders, there was no clear reason offered as to why. Respondents, the majority of whom were senior leaders themselves, denied suggestions that ‘senior management does not believe we need to invest
FRONTLINE MANAGERS AND... GOAL ALIGNMENT Halogen Software’s Donna Ronayne responds: “Effective goal management is critical because it aligns individual employees to the overarching goals of the organisation. Without strong goal alignment, employees can achieve their individual goals without necessarily contributing to success of the organisation as a whole.” “Goal management is about more than just the annual assigning of goals and reviewing of employee performance. And yet, the challenge here is that many organisations don’t make this process systemic.” “Managers aren’t given the tools and training to have that necessary continuous dialogue with their employees, which includes feedback, coaching and development, and a review of priorities. This ongoing dialogue helps ensure individual and organisational performance stays on track, and allows everyone to adjust their goals as needed to keep pace with evolving business and market requirements.”
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NEWS ANALYSIS / FRONTLINE LEADERSHIP
“Spans of control are bigger – each manager supervises a lot more people – and we also expect those frontline workers to do more” more in developing frontline managers’ or that it is ‘too expensive to invest further in the development of frontline managers’. Most also did not believe the gap was due to their companies being in a fastgrowth cycle. In the report, Cappelli shared his opinion on why this might be happening. He said: “Organisations are failing to offer enough leadership and training to all their managers. To the extent to which they do offer training, it seems to follow a trickle-down model: The most for the top executives, the least to the firstline supervisors.” It is also conceivable that by focusing unrelentingly on profitability over these past several years, most organisations have failed to invest enough in the longer-term development of their talent. “Taken as a whole, it seems that respondents have seen the crack in the armour and may be willing to advocate for further investment in frontline manager leadership development,” says Ronayne.
DOING IT BETTER What is the way forward? How can organisations provide the right leadership skills to frontline managers? Although the most important leadership competencies differ somewhat from organisation
FRONTLINE MANAGERS AND... ORG STRUCTURE Halogen Software’s Donna Ronayne : “No matter how flat or hierarchical an organisation’s structure, there are still going to be leaders or team members who are responsible for ensuring teams are achieving the goals set for them. It doesn’t really matter how your organisation is structured, you still need leaders who have the skills and training to coach and provide feedback in a way that drives engagement and performance.”
to organisation, there are core skills for leaders at all levels that need cultivating. For example, strategic and innovative thinking, developing talent, and inspirational leadership are all important because of their impact on organisational performance and employee engagement (more than 90% of respon dents believe frontline managers’ lack of leadership development negatively impacts on engagement results). “What employees need to tap is discretionary effort, which is what employee engagement tries to measure,” Cappelli says. “We expect frontline workers to do lots of complicated things as well as work hard for the employer, typically in contexts where we cannot easily monitor their performance. If we undervalue and underinvest in those areas, we pay a price. If our internal accounting systems aren’t very good, it may be hard to see the connection between employee effort and business outcomes, but it is there.” Ronayne suggests eliminating barriers to success by providing the training and tools they need to develop effective performance management skills, including: • how to set clear goals and expectations • training in leadership competencies important to your organisation • how to give formal and informal feedback on a regular basis • how to support employee development and success • 360 leadership assessments to base leadership development plans on • support for leadership talent pools and emerging leader programs • tools to conduct productive one-on-one meetings between managers and employees • personality assessments, such as Myers-Briggs, for improved self-awareness and communication “They also need to be given coaching and guidance – a bit of extra care in their development,” suggests Ronayne. “They need to be mentored by seasoned leaders, and missteps or failures on stretch assignments – within reason – should be used as learning opportunities versus something to be harshly criticised.” *Frontline Managers: Are They Given the Leadership Tools to Succeed? by Harvard Business Review Analytic Services
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IN BRIEF / EMPLOYER BRANDING
ALL ABOUT THE (EMPLOYER) BRAND Employer Brand International has conducted its third global study on employer branding trends. Here are some of the key findings, tracking the period 2009-2014 WHO’S RESPONSIBLE FOR THE EMPLOYER BRAND? HR
Marketing CEO HR & Communications Directors HR, marketing & communications Executive team Talent management Communications HR & marketing
Branding I don’t know Corporate affairs
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36% 11% 8% 7% 7% 6% 6% 6% 4% 4% 2% 2% 1%
HR OWNERSHIP - FIVE YEAR TREND
46%
33%
36%
2009
2011
2014
EXPENDITURE FORECAST IN 2014 An increase in the amount invested
38%
Approximately unchanged investment
32%
Need to justify investment
13%
Unsure
12%
A decrease in the amount invested
5%
EMPLOYER BRAND STRATEGY Q: Has your company developed a clear employer branding strategy? Yes, but it can be developed further
35%
No, but we’re working on it
32%
Yes, we have a clear strategy
17%
No, we have not developed a strategy
14%
I don’t know
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ROI OF BRANDING EFFORTS
EMPLOYER BRANDING INITIATIVES
The top ROI metrics include:
Q: Which activities are you currently undertaking to enhance our employer brand?
Employee engagement
47%
Retention rates
41%
Number of applicants
34%
Quality of hire Cost per hire
Social media Career website development Recruitment advertising/ employer marketing Recruitment branding Induction program Defining EVPs Developing employer brand strategy
33% 33%
Employee referral program Current employee research Leadership development program
MOST IN-DEMAND EMPLOYERS LinkedIn’s Talent Brand Index analyses the activity of over 200 million LinkedIn members, including company followers, page views and connections,to determine the level of awareness and interest in a company among its key talent audiences. Here are the latest results:
Australia Rio Tinto Google Leighton Contractors John Holland Microsoft Accenture Worley Parsons Qantas Thiess National Australia Bank
58% 56% 52% 45% 42% 39% 39% 38% 36% 35%
THE TOP 5 ATTRACTORS Q: How important do you believe the following employer brand attributes are in attracting new talent to your company? (1 = least important; 7 = most important)
Career development
6.07
Leadership
6.02
Work environment
5.97
Corporate reputation and culture
5.95
Reward & recognition
5.76
Global Google Apple Microsoft Facebook Unilever GE PepsiCo Procter & Gamble McKinsey & Co Coca-Cola Company
Source for all except where noted: Employer Brand International, ‘2014 Employer Branding Global Trends Study Report’, comprising results from a total of 1,143 responses from 8 countries and regions. Further information: employerbrandinternational.com
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COVER STORY / HR AT UNILEVER
GLOBAL PERSPECTIVE,
LOCAL EXPERTISE
With hundreds of food, beverage, cleaning agent and personal care products in its portfolio, there’s a fair chance that you encounter at least one of Unilever’s brands every day. Iain Hopkins talks to Danielle Van Den Broek about working for one of the world’s oldest multinational companies It doesn’t take much to lure a hardened magazine editor from the confines of his office and into Sydney’s rapidly growing northwest corridor, the heart of which is Epping. In fact, all it takes is the promise of a Magnum ice cream. Although the average consumer may only be vaguely aware of the Unilever name, they are almost guaranteed to know the products that Unilever produces: Bertolli, Bushells, Continental, Lipton, Streets, Dove, Sunsilk, Omo, Surf, Domestos, Rexona, Lynx – to name just a few. The Anglo-Dutch multinational consumer goods company owns over 400 brands and employs around 174,000 people globally. With the Magnum setting a relaxed mood, Danielle Van Den Broek, vice president human resources at Unilever Australia and New Zealand, opened up about the importance of purpose in business; why Unilever is still the ‘‘icon” for marketing graduates; and Project Half, an initiative that any massive organisation with layers of complexity and bureaucracy might care to borrow.
HR AT UNILEVER Van Den Broek, a 15-year veteran of the company, has worked in the Netherlands, Singapore and now Australia. Each role, she says, has prepared her for the one she’s doing now. As a member of the Unilever senior leadership team in Australia and New Zealand, she holds overall HR responsibility for operations in those two countries and for some 1,700 people. Her HR team of around 20 members is divided into business partners, expertise teams,
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payroll and HR within the four factories based in Australia and New Zealand. Globally, Unilever has outsourced part of its transactional HR activities to Accenture. In addition to standard ‘head of HR’ functions, Van Den Broek says she has two other focus areas: providing strategic direction to the organisation and building a “purpose-driven” organisation.
TYING HR TO BUSINESS STRATEGY
Did you know? Unilever was founded in 1929 by the merger of the British soap maker, Lever Brothers (founded in 1885 by William Hesketh Lever), and the Dutch margarine producer, Margarine Unie.
In the first of these areas, Van Den Broek works closely with CEO Clive Stiff and the other executives. When Stiff started in the role two years ago, he developed a long-term business strategy. Every year this is refreshed and tweaked slightly. Unilever’s HR function uses a process and methodology called Talent and Organisational Readiness. All HR professionals are trained in-house on how to use the same methodology. Using the business strategy as its base, the HR team takes information gleaned from management interviews, research, internal and external benchmarks, and applies it to four key pillars: talent, skills, organisation and culture. “We’ll then say, ‘If this is the business strategy and we look at our talent today, what are the strengths and what are the gaps to fill in order to execute this strategy?’ And we do the same for organisation, where we go into organisational design, organisa tional effectiveness, benchmarking and all the metrics around that topic. The same applies to skills and to culture. We get a robust scan of where our strengths are, as well as the gaps where we need to fill or bridge to execute the strategy.”
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COVER STORY / HR AT UNILEVER
AUSTRALIA VS THE WORLD Van Den Broek has worked in Europe, Southeast Asia and now Australia. What similarities and differences has she seen in her HR travels? 1. ECONOMIC CONDITIONS “The economic crisis hit Europe and the UK so much harder than here in Australia. You still feel optimism here, but in Europe the impact has been deep and longlasting, especially in areas like youth unemployment.” 2. EMPLOYEE AND INDUSTRIAL RELATIONS “Parts of Europe and Australia have surprising similarities in employment law as well as areas like EBA negotiations and working with unions.” 3. HR’S POSITION “This struck me when attending HR events and conferences here in Australia. I often noticed one of the main topics is how can we as HR get a seat at the top table. In Europe we’ve already moved away from that. HR is at the table and in general that’s not being questioned anymore. The added value is already seen.”
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Van Den Broek admits this is an involved process. It takes several months to liaise with the various business leaders, and then report results back to the senior leadership team. “The really nice thing, a crucial thing, is the HR strategy is owned by the senior leadership team,” she says. “There are a few parts of the strategy that have my name behind it, but not many. For example, our vice president for customer development in sales is the owner of employer brands. He’s supported by someone in my team but it’s driven by him.” CEO Clive Stiff is heavily involved in pushing the diversity agenda – gender diversity has been selected as the key focus area – and he is also strongly involved in building the Unilever employment brand by getting in front of students at university campus open days. “What we’ve learnt over the years is you can go to universities as HR, but that is less attractive to students than when a senior leader comes and talks about what we do.” Van Den Broek says that although Unilever is still “the icon where you really learn marketing” for marketing grads, results in other disciplines are mixed. “Funnily enough, one area where I think we need to gain more traction with grads is HR,” she says. Van Den Broek adds that such executive buy-in “changes the whole dynamic” because issues traditionally deemed to be solely within HR’s purview are opened up and carried by the entire business. An additional benefit is that the HR team itself gets educated on all aspects of the business – a big plus in a complicated global corporation.
CUTTING THE RED TAPE Like in any global business, red tape, bureaucracy and needlessly replicated policies and procedures have plagued Unilever. The company has actively tacked this problem through its global initiative called Project Half in which each employee and each team literally tries to halve the clutter and bureaucracy. Globally, 10 processes have been identified to take complexity out, and locally the leadership team has identified a further eight. “It’s quite liberating, even the name Project Half gives people the right idea. It provides a pragmatic mindset,” says Van Den Broek.
MAKING GLOBAL-LOCAL WORK HRD has talked about ‘glocalising’ recently – that is, taking global initiatives and adapting them to the local market. While this does occur at Unilever, Van Den Broek says, “Why reinvent the wheel? If we
have an excellent employer brand strategy in Vietnam, why don’t we plug and play and use it here as well?” She also notes with some pride that the bright ideas flow both ways. Global and local expertise teams – the ‘brains’ of Unilever – come up with state-of-theart processes, policies, interventions, solutions that are deployed by HR business partners on the ground. “We do a little bit of local adaptation, but then we run with it,” Van Den Broek says. “We’ve become quite good at looking at the 80% that is relevant and can be used, rather than focusing on the 20% that may be less relevant. It does save a lot of time and energy, and it makes us a lot faster as well. At the same time, we sometimes pilot initiatives for the globe,” she says. One upcoming pilot will be the Energy Project. This is a training program now running in companies in several countries around the world, concentrating on mental wellbeing and resilience. “How can you tap into your own resources for energy and how you can balance your own energy levels in all facets of your life? This is something we’ll be piloting in Australia and New Zealand and
“Why reinvent the wheel? If we have an excellent employer brand strategy in Vietnam, why don’t we plug and play and use it here as well?” if successful it might be scaled up to other parts of the world,” Van Den Broek says.
THE POWER OF PURPOSE Unilever has a bold vision for the future: double the size of the business while reducing the environmental impact and increasing the social impact. Global CEO Paul Polman is very firm that this is not about CSR; it’s a business philosophy centred on sustainable living. “Our philosophy is that sustainability is the only sustainable growth model,” says Van Den Broek. This has resulted in a strong focus on environmental
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HUMAN RESOURCES DIRECTOR
issues, including the sustainable use of materials and natural resources in the production of Unilever’s products, and educating consumers on specific environmental issues like water usage. “We want to ensure our leaders are driven not only by short-term goals but by something bigger,” Van Den Broek notes. Alongside its global purpose, the local operation has recently rolled out its Australia-New Zealand purpose, which is about being Unilever’s frontrunner for a bright future. “Australia and New Zealand are the only developed markets in the Southern Hemisphere, which means you could think we’re always a season behind, but we like to think we’re a season ahead. It ties nicely to the two-way street – taking global initiatives but also piloting things on our end for the rest of the world.”
VALUES ALIGNMENT Corporate values are often empty, vacuous senti ments, but Van Den Broek says they have played a critical role in her 15-year attachment to the company. The company’s values closely align with
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What’s the most significant HR challenge you are currently facing? “Top of mind for me almost every day is the talent agenda, especially filling the talent pipeline, grooming our own talent, and ensuring we spread our wonderful Australian and New Zealand talent around the Unilever world. In one of my previous roles in Singapore I did an analysis of which countries the most senior leaders in Unilever come from. The top three are the Netherlands, UK and India. At the time we only had one Australian. So we want to fill the Unilever world with our great talent, but at the same time ensure that locally we have robust pipelines with strong succession plans.” her own personal values, to the extent that prior to the launch of Unilever’s Sustainable Living Plan, Van Den Broek was considering a switch to an NGO. “Now I realise I don’t need to make that switch because I can do fantastic work and give something back by working within Unilever and supporting the USLP,” she says.
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CHANGE MANAGEMENT / FLIGHT CENTRE
How low can you go? Flight Centre learns from past mistakes Despite good intentions and careful planning, sometimes corporate strategies and projects simply do not work. Such was the case with Flight Centre’s change initiative, Full Throttle. HR Director asks what went wrong
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Full Throttle was the in-house name given to Flight Centre’s business restructure introduced in late 2004 and cancelled in 2005. During the muchvaunted Full Throttle, unique company culture was diluted by introducing external management consultants and giving executive jobs to outsiders. The rawness of the failure is still palpable for key players. Rather than hide behind the mistakes made, the company has embraced the failure as a key component of its history, and has shared its tumultuous ride in a book titled Family, Village, Tribe, authored by former Flight Centre executive Mandy Johnson. She chats to HR Director about a compelling – and brave – decision on the company’s part to ‘reveal all’.
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HUMAN RESOURCES DIRECTOR
HR Director: Can you outline your involvement with Flight Centre – what role did you have at the company? Mandy Johnson: I started with Flight Centre as a travel agent when they only had a few stores, really as a way to fund myself through university. I rejoined them after travelling overseas for a few years. I managed a couple of stores and then made the mistake of getting drunk at a conference and telling the CEO that the way Flight Centre recruited and trained people was crap. He rang me two weeks later, and I was sure he was going to sack me. Instead he told me that if I knew so much about HR, then I could set up the company’s first recruitment and training centre. Eighteen months later, after that operation was successful, I tried to quit to go backpacking around South America but somehow was bamboozled into heading over to the UK to co-found Flight Centre’s operation there instead. I became a director of the UK operation, the company’s youngest-ever, before returning to Australia as the national HR head.
HRD: Are you still involved with the company? MJ: Since I left Flight Centre I’ve written two books [Family, Village, Tribe and Winning the War for Talent] and I now run my own speaking/consulting business. Yet it’s a standard joke that no one ever really leaves the organisation. Flight Centre doubles in size every five years so it’s always changing, and whenever its needs intersect with what I’m doing, I end up getting a call from Graham ‘Skroo’ Turner [Flight Centre’s founder and now managing director]. I’m still friends with many of the people I worked with.
HRD: It’s unusual for a ‘company biography’ to be warts and all, yet your book is. Why did Flight Centre cooperate on such a book? MJ: This really reflects Skroo’s approach, as he is famous for his almost total information sharing. Anyone who’s tried to discuss their salary or future career path with Turner ends up talking to him in his open-plan office, with the rest of his team working away around them. He simply doesn’t understand why anyone would want privacy discussing anything. In the same way, when I first approached him about writing this book he told me, “Don’t write one of those sickly corporate books that glorify the company.
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We need to have all our mistakes in there – that’s what has really shaped us”. In fact, the original manuscript was so ‘warts and all’ that I found myself in the rare position of having the publisher censor some of the content, because they thought it was too ‘out there’, even though Flight Centre was happy for it to run.
HRD: The book is handed out to new recruits at Flight Centre – again, why is this done? MJ: One of the problems rapidly growing organisa tions face is how to stay true to their own values and philosophies, and keep that sense of where they have come from. Flight Centre identified this book as a really valuable cultural tool for its people, a way for them to avoid repeating past mistakes yet connect them with the spirit of the founding pioneers. Or as senior executive Joell Ogilvie so aptly put it, “We have to make sure we all know the story about our crackpot vet”. Skroo was a veterinarian before he started Flight Centre.
HRD: Can you outline Full Throttle? Why did Flight Centre embark on this restructure/transformation program? MJ: The Full Throttle campaign, which Skroo now refers to as “Flight Centre’s greatest f***-up”, started as a simple efficiency improvement project in 2004. In the 2003/4 financial year, revenues had grown 24%, but profits had virtually flatlined and head office staff numbers had blown out. With the operation out of kilter, the company talked to some external consultants who promised a prize of over $100m in savings over three years. This was an alluring proposition after January 2005 when the company issued a profit downgrade announcement and suffered its largest share slide since its 1995 listing. Flight Centre decided to go ahead with the project and began to implement stage one: 10 priority initiatives to bring about quick cost savings.
HRD: Our readers are used to ‘success stories’ when it comes to transformation programs, but Full Throttle failed. Can you outline what happened? MJ: No one minded the product cost savings, but the
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CHANGE MANAGEMENT / FLIGHT CENTRE
“No one minded the cost savings, but the restructure of Flight Centre’s head office hit the organisation like a tsunami” Mandy Johnson restructure of Flight Centre’s head office hit the organisation like a tsunami. It was the first time employees’ jobs had ever been axed and, because the external consultants had little understanding of what people brought to their roles, many decisions were simplly driven by theoretical cost-savings and salary cutting. They also used practices, such as spilling people from their roles and making everyone reapply, that were the antithesis of Flight Centre’s people-friendly culture. Staff responded with outrage as morale plummeted. Police crime tape and chalk outlines of slain bodies appeared around the office in reference to the ongoing cull, and people came to work in pyjamas and threw ‘Full Throttle’ parties on the day redundancy slips were issued. Many key people quit in disgust at the process, and the impact of losing them would be felt for years afterwards. As senior executive Melanie Waters-Ryan said, “Full Throttle will forever be seen as the era in which the company completely lost its mind”.
HRD: How did the company survive the trauma? What steps did it take to improve and restore the former culture? MJ: Once he realised the true impact of what was happening, Skroo stepped in to disband Full Throttle, almost overnight. Yet the damage had been done. Flight Centre’s profits for 2004/5 were down by 17% from the previous year’s mark, and it would take several years for the company to rebuild the trust with its own people. In the soul-searching that followed, the key question raised was why external consultants had been given such complete control. Or as then-
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company secretary Greg Pringle said, why did we give them “the keys to the front door and then allow them to change the locks”? The company identified two significant issues. The first was that the leadership team had been split into two entities a few years earlier, with Skroo as managing director and Shane Flynn as CEO. This joint leadership role had exacerbated the Full Throttle process, with people playing the teams off one against another, and had led to decisionmaking inertia and lack of ownership. As Skroo said, “In the end you’ve got to have one person, total responsibility”. CEO Shane Flynn was another victim of the process and left the company in September 2005. The second factor identified as a cause of the debacle was that six out of 10 people on the executive team had come from outside the business, with little real understanding of the culture. As Skroo said, “We were looking for silver bullets to fast-track growth when these didn’t exist”. Turner put a new executive team in place – externals were out and old-timers back in – and updated its philosophies to include: “Promotions and transfers within will always be our first choice”. The current executive team has over 60 years’ combined experience and the company now actively avoids recruiting external people for senior or executive positions.
HRD: Can you provide any other tips to executives who are perhaps embarking on or have embarked on similar change programs? MJ: The key message is for a company to stay true to its own values and philosophies, even when it may have to implement difficult change programs. The core reasons for the Full Throttle project were sound; it was the way it was put into practice that was the issue. During the GFC, Flight Centre laid off some more employees, but with the lessons learnt from Full Throttle, they did it in a much more humane way, with effective communication and transparency, so there was no associated morale loss. Also, the company learnt that constant, focused and incremental improvements, rather than a single defining action or grand project, leads to the most sustained and spectacular results.
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HUMAN RESOURCES DIRECTOR
HRD: What’s the status of Flight Centre now? Has the dust settled from this failure? MJ: Even though it was a car crash at the time, the Full Throttle debacle did have one positive effect. It forced the company to go back to basics, focus on its fundamental philosophies and rebuild the trust with its staff. The company created a whole new department called ‘Brand Warriors’ to educate its own people in its history and promote internal innovations that support corporate values. It took a few years, but this return to fundamentals is now a major factor in the company’s current success. Flight Centre’s share price is now hovering between the $40–$50 mark and it is operating profitably in all 11 countries it has a presence in.
HRD: The travel industry has changed out of all recognition in recent years with the boom in internet bookings, etc. How has Flight Centre survived? MJ: Flight Centre was called a Neanderthal a few years ago for continuing to grow its ‘bricks and mortar’ stores, yet now those same detractors are calling the company visionary. People are definitely booking more hotels and point-to-point airfares online, and Flight Centre has bought a number of online businesses to service this trend, yet for anything more complicated or expensive many travellers still want to deal with someone face-to-face. And with travel crises such as volcanic eruptions, bird flu and even revolutions happening on an almost everyday basis, more and more travellers now want to feel they can pick up the phone and speak to a consultant, who they’ve built a personal relationship with, when they really need help. The other factor that has enabled Flight Centre to survive this industry metamorphosis is its innovative “family, village, tribe” concept. The organisation’s small, flexible team structure means that, no matter how big the company becomes, each employee still feels like they are running their own business within the business. What this does is keep the company innovative when other large corporations become hidebound with bureaucracy, and the smaller teams are much more profitable too. As Skroo often says, “If our business model is right, external factors only play a minor part”.
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Family, Village, Tribe by Mandy Johnson is available now through Random House
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REWARDS / 2014–15 TRENDS
Road ahead or dead-end?
REWARD TRENDS
A recent forum coordinated by WorldatWork and Cambridge University identified the big trends in total rewards practice. At the start of a new financial year, Dave Jackson asks HR leaders whether or not these ‘hot trends’ reflect their current experience One of the more interesting articles to hit my inbox over the summer was a WorldatWork report on the big issues in total rewards for 2014 – or at least what they say are the big issues. I often wonder how useful reports such as these are. Do the so-called trends reflect meaningful practice within today’s organisations, or are they just fluff and puff – or worse, blatantly not true? So I took the reported trends to some of the leading HRDs in Australia for their views. Reward strategies are evolving. But why, and how, and what does this mean for HRDs?
INTRINSIC REWARD The WorldatWork report identifies two major drivers of changing rewards practice. Firstly, flatter organisations mean less supervision and fewer rules, and as a result performance depends more on intrinsic reward than on management tools. “No,” says David Hamilton, director of performance and reward at Optus. “Yes, we are flatter than ever, but not all roles have reduced supervision as a result. In fact, more robust and reliable measurement systems mean some roles are more tightly controlled than ever before.”
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“We are unquestionably a flatter organisation than five years ago. However, leadership is more important than ever as a result,” reports Tristram Gray, head of HR at Ericsson in Southeast Asia and Oceania. “In fact, we identify leadership as the number one driver of engagement, and we invest heavily in the role of managers to provide direction.”
NEW ERA, NEW WORKFORCE EXPECTATIONS The report suggests the second key driver of changing rewards practice is the workforce itself; that employees have different expectations of rewards than they did in the past. “There is no universal preference. We see clear differences between different generations,” says Vin Lucas, HR director at Schweppes Australia. “Our younger workforce place greater importance on learning opportunities and development, whereas our older workforce is more interested in superannuation, for example.” “I’m not sure this is any different to 20 years ago,” muses Gray. “Perhaps the young have always been more altruistic, and valued the type of
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HUMAN RESOURCES DIRECTOR
work they do as much as they value pay, at that stage of their life and career. I think what we are seeing today is, those expectations have more currency in a highly competitive labour market.”
HIGH EXPECTATIONS Those I spoke to did all agree with the report’s finding that expectations are higher than ever before, and rewards once seen as nice to have are now considered mandatory. Could this be as much the result of changing leadership values as changing employee values? Even a senior leadership team is made up of people, after all! “People have long desired things such as rewarding work, connection of contribution to overall company goals, career development opportunities and recognition for performance,” says Gray. “We (as employers) are simply paying a lot more attention to addressing these desires in a tangible sense now.”
TRENDS, OR NOT? It seems the pursuit towards better understanding what truly drives our people has some way to run –
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unsurprising, given the complexity of the wonderful human machine. Meanwhile, we have business goals to achieve and people we need to inspire to achieve them, so what are the specific reward strategies that WorldatWork’s report identifies as new?
TREND 1 Intrinsic reward is now more important than extrinsic reward, according to WorldatWork. However, this is an intriguing theory but not a trend, say our HRDs. Yes, intrinsic reward is crucial – it may even be more important than ever – but it’s not a matter of replacing extrinsic reward. Getting pay right is still a huge focus. “No. Extrinsic reward is not less important,” says Hamilton. “We simply must be competitive on pay and benefits. We can then complement that with things such as market days at our campus.” “We have a strong pay focus. We are challenging ourselves to change, but it is all about balance, not one form at the expense of the other,” says Lucas. Gray says, “You must have a competitive pay offering that you are able to then differentiate
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REWARDS / 2014–15 TRENDS
with both benefits and a compelling reason to work for the company beyond simply pay.”
TREND 2 The practice of offering certain rewards only to certain employees – the differentiated reward – is a trend identified in the WorldatWork report. But while this is a long-established practice in relation to senior roles (usually around pay) and high-potential employees (usually focused on differentiated development), it is not something our HRDs are rolling out more broadly. “We can’t afford, nor do we desire, to reward everyone at the level we reward our top performers,” says Lucas. “But everyone has the same opportunity.”
TREND 3 Offering one-off bonuses in place of annual merit increases is a specific trend, according to the WorldatWork report, but this seems like a pipe dream. Some may be contemplating it, but the market isn’t listening. “We cannot discount our underlying compensation position (to market), and we do not use one-off bonuses in lieu of annual merit increases to any significant degree,” says Gray. “Pay fairness continues to dominate pay expectations,” says Lucas. “A merit increase is an expectation.”
TREND 4
David Jackson is the director of Solterbeck. For further information, visit solterbeck.com
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Personalised reward is promoted as a key theme in the WorldatWork report, but it is not something that resonated with our HRDs. Different companies are offering different suites of rewards, but customising at the individual level is not a broadly used practice within our sample. “Like a lot of firms, we offer a gift gallery as part of our manager and peer reward and recognition program, whereby employees accrue points and then can select the type of gift they wish to receive,” reports Gray. “But personalisation of structured rewards is not central to our overall reward strategy.” “We’ve moved a bit away from soft benefits that appeal to subsections of the workforce,” says Lucas. “Perhaps we’ll revisit, but at this point in time we have a bigger focus on pay.”
TREND 5 Superior reward offers are becoming increasingly hard to find. With yesterday’s point of difference merely today’s expectation, WorldatWork reports that companies are searching hard for something unique, and our local experts agree. Hamilton says: “It is definitely harder to find a compelling point of difference. What was once seen as a benefit is now seen as a right. Many are commoditised. Yet there are still some areas we find provide room to stand out, such as our sales reward and recognition program, for example.” “Culture is one of the last points of competitive difference,” says Lucas. “The category in which we operate, the strength of our brand, the lifecycle, our challenger game plan … these are often highly rewarding to the people we need to attract and retain.”
OPERATIONAL CONSEQUENCES If anything, discussions with these HRDs reveals that the range of emerging total rewards practices is even more diverse, and less homogeneous, than the WorldatWork report suggests. What, then, are the operational consequences of these changes? Does HR have the resources it requires? To summarise WorldatWork’s findings in this regard, we need ‘technology and time’. More sophisticated reward strategies create more complex administrative demands, especially the need for flexible HR systems with a total employee perspective. Our HRDs agree: these are not overnight solutions but change is well underway. “It requires a forward-looking technology plan,” says Lucas. “We are thinking two to three years ahead. Old-world HR systems with a payroll focus will be replaced by systems designed from a talent perspective.” Gray agrees: “We are currently implementing a new HRIT system, with a focus on integration of data … a single view to look at rem, performance, talent plans, and so on. Implementation and integration is a challenge in terms of money, resources, time and a change management perspective; however, it’s an investment that we believe is worth making so as we can support the business better into the future.” Finally, if crafting a valued reward proposition is both more important and more challenging than ever, a greater investment in time and quality of thinking is clearly required. Is your organisation investing more time than ever on your total rewards offer?
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HUMAN RESOURCES DIRECTOR
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LEARNING & DEVELOPMENT / GUIDED ONLINE TRAINING
Guided Online Learning:
L&D’S HOLY GRAIL Brought to you by
HR Director explores why Guided Online Learning may just be the ‘Holy Grail’ long sought after by L&D professionals A Chinese proverb states: Tell me, I’ll forget Show me, I’ll remember Involve me, I’ll understand Most L&D professionals will recognise that while there is certainly truth in that proverb, ‘involving’ the learner can present challenges, especially in the age of e-learning. Separated from their peers, often hindered by poor instructional design, and typically lacking a trainer to keep them on track, it’s no surprise that ‘e-learner pioneers’ often felt disconnected and disengaged. They were not involved in the process of learning. The first wave of e-learning perhaps focused too heavily on the technology of learning delivery rather than on meeting the user’s needs. While excellent for ‘tick-the-box’ training, hard skills reinforcement and many other interventions, the existing technology could not yet deliver the immediacy and up-close-and-personal attention achievable with face-to-face (F2F) learning. Now, a new era of e-learning has dawned. Guided Online Learning presents a very different value proposition and operates in a very different learning environment.
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THE PERFECT HYBRID Guided Online Learning is one of the fastestgrowing methods of internet-based learning delivery, says Craig Simon, director of digital learning at TP3. “People see the relationship between the classroom and the online world, and are starting to recognise the two can work well together, particularly if it’s been designed effectively to optimise learning outcomes,” he says. Spurred on by improvements in bandwidth, hardware and collaboration software, Guided Online Learning blends the benefits of F2F (guided learning; expert facilitator; hands-on skill-building practice; interaction with other learners) with the convenience of online training (short sessions; no travel; specific, targeted learning). Unlike a webinar or video, learners can watch, practise and ask questions of an experienced facilitator in a highly productive learning environment. Students can also benefit from sharing experiences with, and learning from, other participants. “The key difference with guided online versus straight e-learning is, firstly, you’re getting a live trainer; and secondly, because it’s scheduled you can actually work with your cohorts,” says Simon.
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HUMAN RESOURCES DIRECTOR
HOW DOES IT WORK? TP3 uses Citrix GoToTraining, a widely used platform to deliver live, interactive online training. All that students require is a computer, an internet connection and a set of headphones with microphone. Each session runs for 90 minutes and has up to 15 students participating in an online course led by two experienced facilitators. One qualified, experienced facilitator leads the session with the support of a co-facilitator, who answers individual questions and keeps each participant’s learning on track. The lead facilitator guides students through practice exercises that develop skills, with a course booklet containing step-by-step instructions. Throughout the session, students can see the facilitator’s screen and participate by using Chat or by ‘raising your hand’ – both features within GoToTraining. Unlike webinars, these sessions are highly interactive and contain quite a bit of learner input. To create a safe and private learning environment, where learners feel free to discuss and ask questions related to their personal work without hesitation, the sessions are not recorded.
WHAT’S ON OFFER? The latest Guided Online Learning offerings are skills focused, designed to improve (or refresh) participants’ use of the Microsoft Office suite, including Excel, PowerPoint, Project, SharePoint and Word. Simon adds that any content that can be chopped into “bites” is suitable for Guided Online Learning, and TP3 is currently working on a fresh suite of professional development courses. The combination of short, punchy duration and focus on a specific skill, such as creating and using formulas in Excel spreadsheets, also helps avoid the dreaded ‘cognitive overload’ – that point in many learning interventions when learners’ minds have absorbed all they will absorb at that point in time. Simon says that delivering high-quality training in an online module has always been the ‘‘Holy Grail” for educators. “In the early days of online learning, people forgot the important social element of learning. Everyone, from kindergarten kids through to adults, learns more effectively when they are interacting with others. We now have the technology to ensure that social element is not lost.” Simon adds that traditional classroom and e-learning training will continue to play an essential role in corporate learning. But whereas they can
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“It’s targeted, specific, and you’re not sitting through hours of content that is not relevant to you” Craig Simon deliver on one or two of the three critical components that a quality learning solution should provide, Guided Online Learning can deliver on all three: 1. QUALITY IN-DEPTH LEARNING “In terms of quality, we’ve got brilliant trainers,” says Simon. “The content we’ve developed is second to none, and it has been tried and tested over the years. We’ve taken the things we do best – write brilliant content and deliver brilliant classroom environments and training – and moved it into the digital world. With high-quality trainers and materials, we’re already on our way to a great learning experience.” 2. FLEXIBILITY AND CONVENIENCE “You learn exactly what you need to learn at the time you choose,” says Simon. “An organisation can schedule sessions when they want, and that might fit in with different geographic spread or different time zones. As for convenience, you log into the course 10 minutes before the scheduled start time, and it’s over in less than two hours. It’s targeted, specific, and you’re not sitting through hours of content that is not relevant to you.” 3. LOW COST Because of that targeted approach, the price is much lower than if you’d have to build a customised e-learning course or send students to a classroombased training course. Sessions cost $90 per person for 90 minutes of live, interactive facilitated online training. “Two out of three is not bad, but three out of three is exceptional,” Simon says. “It’s early days [TP3 launched its Guided Online Learning suite in late 2013], but I’m excited by where we’re heading.” TP3 is the leader in knowledge and productivity improvement. The company has over 30 years’ experience in developing people and streamlining systems for Australia’s largest employers. To find out more, contact us toll-free on 1300 658 388, visit TP3.com.au or email us at info@TP3.com.au. TP3 invites HRD readers to log into a complimentary webinar at 11am, 17 July. The webinar will feature Craig Simon discussing how to create an environment of personal accountability for improvement, and how to implement a blended learning strategy in the 70:20:10 era using technology. To register, visit tp3.com.au/ideas/events.
NEW ERA, NEW LEARNING MODE TP3’s Guided Online Learning is for all learners who: yydo not have time to attend face-to-face training or have access to public training courses yyfind self-paced e-learning lacks challenge or is not engaging yyfind that webinars and online videos fail to provide enough personal involvement, interaction or hands-on practice for skill building yywant more choice, quality and value from their knowledge and productivity solutions
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INTERNATIONAL PROFILE / JOHN HOFMEISTER
RIDING THE PEAKS – AND THE TROUGHS From natural disaster to financial scandal, Shell Oil’s John Hofmeister has seen it all. He shares his rich HR experience with Jill Gregorie John Hofmeister has a long history of leadership experiences, from being president of an oil company during two devastating hurricanes to persuading top US federal and state policymakers of the pressing need for sustainable energy practices. He has served as president of Shell Oil, held executive leadership positions at AlliedSignal, Northern Telecom Inc. and General Electric, and currently heads the influential non-profit organisation Citizens for Affordable Energy. He attributes these many successes to the skills and strategies he developed in HR, and the people-oriented approach that has driven his entire business career.
STARTING EARLY This approach took form while he was an undergraduate at Kansas State University. There, he studied political science, a field to which he would later return when pursuing an advanced degree. Upon graduating in 1973, he entered GE’s HR Management Program, an apprenticeship program that combined actual job assignments with coursework and projects to prepare trainees for
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a career in GE-centered business management. Even in the early stages of his career, Hofmeister knew that the key to success was rooted in cooperation and placement of the group over the individual. “I’ve found throughout my career that with the politics of decision-making, the politics of priority setting, the politics of what it takes to execute a business plan, nothing is straightforward,” Hofmeister says. “The whole idea of command authority in business is largely overrated, overdescribed, and is more the product of media attention than it is a description of the reality of how business operates.” He refers to the principle of working together towards a common goal as “share to gain”. “You share authority, you share resources, you share objectives, and everybody gains as a consequence of that.” He points to Jack Welch as an example of a leader who was often perceived as a domineering, obstinate leader, but who actually had a history of cohesiveness and working as part of a team.
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“When Jack Welch was running GE, he had a reputation in the media as being a very powerful CEO. And he definitely was. But he was powerful because he earned it. And he earned it because he would listen, debate and argue; he would stand ready to be convinced otherwise, and he participated in the sort of ‘wear them down, drag them out’ discussions that were necessary to get to the better objectives. “It wasn’t just ‘how does Jack Welch win?’ It was ‘how does GE win?’ ”
LEADING THROUGH NATURAL DISASTER After 15 years of working in various roles at GE, Hofmeister went on to work in several executive HR leadership positions, which led him to the position of group HR director of the Royal Dutch Shell Group in The Hague, Netherlands, in 1997. In this position, he used the “share to gain” principle to support other senior executives by optimising his own performance in HR. As a result, he retained control of his title despite multiple changes in senior leadership. “During my Shell years, I was group HR director for four CEOs, so I had to adjust and adapt and work with each individual and his priorities,” Hofmeister says. “Many times the CEO replaces the HR person or the finance person, but I found myself working with each of the four CEOs.” He says his ability to recognise and properly allocate talent is what made him exceptional in his HR responsibilities. “The credibility here is knowing your talent, having the capacity to assess and understand talent, and how best to deploy talent – that’s where the senior HR executive earns the right to exist. It is the talent management expertise that the CEO is looking for.” Eventually, Hofmeister became president of Shell Oil, which he describes as a role in which he used the same skill set and strategies he did as an HR director, but “it was just a matter of adjusting to different stakeholders”. It was during his time as president that Hurricane Katrina hit the US Gulf Coast in 2005, flooding entire cities in the region
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“It became about balancing those two major objectives: running a company like everything was normal, and dealing with the crisis at hand, and having the capacity not to get overwhelmed by either” and displacing nearly 400,000 residents. This storm, the costliest in American history, severely damaged many of Shell’s facilities in the area, and had devastating effects for countless employees and their families. Hofmeister found that his imperative was to address the needs of every other part of the country, and continue operations as stably and functionally as possible, while simultaneously addressing the critical needs of those affected by the storm. “Everything has to be business as usual all over the country because the assets in California and the people there or in New England could care less about a Gulf Coast hurricane. “At the same time, you have a crisis on your hands in which you not only have internal staff to be worried about and take care of, and facilities that can be very seriously damaged, but you’ve also got your external stakeholders that are depending on you, for example the first responders. First responders can’t function if they don’t have gasoline or diesel. “So it became about balancing those two major objectives: running a company like everything was normal, and dealing with the crisis at hand, and having the capacity not to get overwhelmed by either.” Hofmeister notes that he had to stay on task and resist becoming caught up in distracting side projects. When he was notified by Shell lawyers
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that the company had received 48 letters from state attorneys general accusing the company of gouging the public by increasing fuel prices in the aftermath of the hurricane, he dismissed their concerns. “I said to general counsel, I understand their concern, but they have to wait. Our refineries are shut down. Prices have nothing to do with us; it’s a result of the hurricane. Maybe they can sue nature, but they won’t get much in return.” Hofmeister also adds that his top priority always remained with his employees and their families, both for the obvious reasons involving their safety and welfare and also because he knew that the dedication of his staff would get the company up and running again. “In my last phone call with senior managers before the hurricane struck, I told them: we’ve done everything we can to prepare; we don’t know what the storm will bring, but the one thing we do know is that, whatever damage is done, we will bring ourselves back because our employees will help us.”
LEADING THROUGH FINANCIAL SCANDAL Before Hofmeister took over as president at Shell Oil in 2005, the parent company, Royal Dutch Shell, was embroiled in an accounting scandal that resulted from the overcalculation of ‘proven’ oil reserves. Hofmeister had to work with other senior leaders to regain credibility and re-establish the integrity of company leadership among the media, the general public, and employees. “As a group HR manager, I really had to think long and hard about the impact of this accounting debacle on the leadership of the company, externally as well as internally. To what extent did the debacle impact on the credibility and integrity of the company’s leadership to handle its aftermath and set things right? “We knew we would need to deal with the British and Dutch financial authorities, as well as the US SEC and the corresponding media coverage. We also had to deal with it internally with our workforce. “What you don’t want is even more disruption in terms of dealing with the crisis and fixing information systems and processes. At the same time, you have another
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crisis in terms of lack of confidence and leadership.” As it happened, the legal assessments as well as Hofmeister’s findings regarding the credibility of current leaders led the board of directors to make tough decisions. “It became clear in January 2004 from an internal and external standpoint that we were not going to be able to make it through the crisis with the current leadership – it behooved me to address the issue with the board because something had to change.” Within a month, replacements were appointed. “The good news was this was all done in a planned way because of robust succession planning; the sad news was we had to let several good people go. Unfortunately, the requirements of the situation overrode the needs of individuals and we had to do what was good for the company and its businesses overall, even though it meant separating some very talented people. “My role was to be the conscience of the organisation, and also the talent manager who could give the advice that the board needed to reach the decision the board needed to make.”
LESSONS FROM A SEASONED LEADER Hofmeister doesn’t just consider his time in business as a life lesson in management, but says he’s been observing leadership traits for over 50 years, “going back to my days as a Boy Scout”. “I’ve found that leadership really defines an organisation, sets the parameters, sets the priorities, sets the mood, and sets the tone, so I’ve always been a student of leadership.” He’s found that leadership consists of three critical areas: core, learned, and contemporary. “I think there are some core aspects of leadership, like values, behaviours, and beliefs, and then there are some attributed or learned skills – communications, judgments, critical or analytical
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thinking. And then there are some contemporary requirements you have to be prepared for.” Hofmeister defines contemporary leadership as “understanding what leadership means in the current age”, and he adds that the three facets of leadership should always be embodied simultaneously, because when one is deficient, a person will not be capable of handling the multitude of challenges inherent in running an organisation.
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“One of the best examples we could perhaps point to is the debacle at the top of the Los Angeles Clippers professional basketball team, which is a contemporary leadership issue right now. [Clippers owner Donald Sterling has made repeated racist comments about players]. You have an owner there whose core values are rooted in the pre-Civil Rights era,” he says. “Suddenly, whatever other great qualities that person may have had doesn’t matter – we find out he’s got an unacceptable set of core values.” When building a personal brand, Hofmeister recommends perpetually building on one’s core with continuous learning and self-improvement. “Start with your core. If somewhere down the line you forsake your core, if somewhere you forget what you learned or for heaven’s sake you fail to keep learning, you’re quickly out of the game. Lifelong learning never stops. You never know enough.”
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LEADERSHIP / NEUROSCIENCE
BRAIN POWER
UNLEASHED
Connie Hanson outlines 10 ways HR directors can benefit from knowing how the human brain works Recent findings in neuroscience can enable leaders to overcome the most common roadblocks to adaptation to change, and to facilitate stronger business performance and higher wellbeing for employees. ‘BrainWise’ business leaders actively cultivate organisational environments that enable individuals and the business to thrive. Creating a BrainWise organisation requires attention to key aspects of organisational life, such as safety, cognitive stimulation, and relationships. Knowing how the human brain works and knowing how to make the best use of our highly social/relational brain can provide a critical edge to business. Neuroscience illuminates practical methods that HR directors can use to create a BrainWise business and enable organisations to execute effectively in the following key areas.
1
FIND AND KEEP GREAT TALENT
Creating policies, practices and processes that engage rather than attempt to control employees is fundamental to getting and keeping great team members. To get sustainable results, leaders need to help people become absorbed in work that is consistent with their own values. An overall focus on developing people, rather than just using human resources, triggers parts of the brain related to intrinsic motivation and fundamentally changes the whole dynamic of a workplace. People want to stretch and grow in their own ways. BrainWise HR directors build systems that help team members find ways to weave individual goals for personal development with commercial goals for the business.
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2
COLLABORATE ACROSS DISTANCE AND DIFFERENCE
Globalisation, changes in technology, as well as the continued convergence of industries, has increased the need for collaboration with highly diverse and often dispersed teams. HR systems that facilitate relationships and collaboration versus instigating competition between teams and individual employees provide a platform for tapping into the ‘social brain’. Humans are social beings and our brains were built to connect. HR directors can build on that natural tendency by ensuring that HR and other systems encourage and support collaboration efforts such as: Exploring the impact of ideas across different departments, geographic/time zone regions or even different age groups Using iterative and inclusive approaches to problem solving Rewarding inclusion of broad stakeholder engagement versus narrowly scoped solutions.
3
STRENGTHEN STRATEGIC DECISION-MAKING
HR directors are well positioned to help executive leadership teams build capability to work with, and even encourage, healthy conflict to enhance effective decision-making. Executive teams that reject the dichotomy of ‘win at all costs’, or ‘avoid disagreements’, build the cognitive flexibility to simultaneously hold, analyse and at times synthesise conflicting perceptions. The ability to ‘think together’ is an acquired brain skill that too few executive teams develop. Strategic selection of executive team members to ensure sufficient diversity of thought is an initial step that is heavily influenced by search and hiring
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practices. Once a diverse team is in place, HR directors are well placed to help cultivate a team culture that rewards sharing and building on contrary and difficult-to-hear perspectives, as well as challenges to the status quo, and actively generates mutually exclusive scenarios and alternative solutions. This culture provides executives with a broad platform on which to base strategic decisions.
4
HELP EMPLOYEES BE THEIR BEST
Our brains can and do change throughout our lives. The environment, including organisational culture, plays an important role in shaping the brains of employees. HR policies and leadership practices that ensure safe and respectful workplaces also create the conditions for enhanced brain functioning. When there is incivility, unfairness or, even worse, bullying, the priority for every employee’s brain will be protection, ie the detection and avoidance of or mitigation of threat. This leaves only limited brain power for complex problem solving and even less for innovation. Conversely, high levels of respect, trust and transparency calm the areas of the brain devoted to ‘protection’ and facilitate more fluid and creative thinking as well as help activate the parts of the brain needed for dealing with complexity.
5
the multitude of people issues that are inherent in any work environment. BrainWise HR directors make use of recent findings in social neuroscience by implementing highly social learning methods such as on-the-job mentoring from more senior leaders; peer coaching; and practically focused facilitated group inter ventions. Social learning methods capitalise on the brain’s built-in proclivity to learn from others, enabling people leaders to immediately apply new learning, while simultaneously reinforcing a culture of continuous learning and growth.
6
INSPIRE HIGH PERFORMANCE
Neuroscience research has demonstrated that old-school ‘carrot and stick’ approaches may ‘keep people in line’ for the short term but are less effective in motivating high performance in dynamic environments. Most employees are trying to do their best and deliver a good outcome. When this goes off the rails, punishment (blaming, critiquing, or worse) does not help. Human brains
PREDICT AND RESOLVE PEOPLE-RELATED ROADBLOCKS
HR directors know the most common roadblocks to achieving results faced by people leaders are not technical. In one way or another, many obstacles have a social component, such as dealing with conflict, thwarted collaboration or failure to influence. People leaders who understand how the human brain responds to externally imposed change, conflict, authority, or even dealing with diverse colleagues, are positioned to predict and either prevent or mitigate many of the people-related obstacles to achieving results. Using what science is showing us about brain functioning as a foundation, people leaders are well placed to integrate evidencebased approaches in their day-to-day work with their teams. There are a range of brain-based development experiences to help leaders learn and integrate leadership practices to effectively address
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LEADERSHIP / NEUROSCIENCE
“Humans are social beings and our brains were built to connect” - Connie Hanson are designed to work best in safe environments. Likewise, people want to make a valued contribution – being seen as a valued member of the group meets a basic human need and is associated with more confidence and greater ability to learn and perform. Brain-based performance enhancement systems incorporate values alignment and collaborative goal-setting, and focus on development, including self-monitoring, broad-based feedback and person alised coaching/mentoring.
7
INCORPORATE SOCIAL DATA FOR COMPETITIVE ADVANTAGE
In business we tend to emphasise the ‘analytical’ approach to challenges. While there is nothing wrong with analytics, recent neuroscience research shows there is an entirely separate system in our brains devoted to the ‘people’ side of things. And the analytical and social systems seem to inhibit each other – when one system is active the other is not. Encouraging executive leadership teams to include social/emotional thinking early in the strategic planning process affords that organisation the opportunity to develop more robust business plans that anticipate a diversity of stakeholder perspective and reaction.
8
Connie Hanson is director of Learning Quest and author of BrainWise Leadership: Practical Neuroscience to Thrive and Survive at Work. Connect with Connie at learningquest.com.au or on Twitter @LearningQuest
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PROMOTE BRAIN FITNESS AND SUBSEQUENT ADAPTATION TO CHANGE
Health and safety and even general wellbeing have made their way into everyday business vernacular. However, it is rarer to see organisational efforts to encourage brain fitness. While computerised brain games are becoming popular apps, they are not practical or even appropriate for on-the-job development. HR directors are positioned to shape the work environment such that leaders’ and employees’ jobs have a mix of stimulating and more routine cognitive challenges needed to build brain fitness. While some positions, especially senior
leadership roles, naturally lend themselves to having varied stimulating thinking challenges, other roles may benefit from engineering to introduce some novelty within the context of an overall supportive environment. Jobs with the right combination of novelty and comfort help to stimulate neuroplasticity, enabling better longterm learning and ability to adapt when larger changes are required.
9
PROMOTE SELF-REGULATION AND ABILITY TO REACH LONG-TERM GOALS
Self-awareness and self-regulation are components of brain fitness that HR directors can impact on for the benefit of the organisation as well as the overall health of individuals. Organisations that provide basic education related to brain function, such as reactions to change, brain-based techniques for mitigating chronic work-related stress, as well as methods for emotional regulation, equip employees to thrive in work environments that are constantly changing even as the demands for output are increasing. Empowering people with knowledge about themselves enhances their sense of control, self-esteem and confidence. Ultimately, employees who feel in control are better able to regulate their own behaviour in order to attain long-term goals that are aligned with the organisation’s requirements.
10
BROADEN PERCEPTION AND FLEXIBLE THINKING
Recent neuroscience research has revealed that emotions, previously ‘banned’ in many organisations, are not only essential for motivation but are in fact a rich source of important data essential for complex decision-making. Actively seeking emotional information enables HR directors to illuminate aspects of business challenges that are not available through any other method. Everything from deciphering public opinion, to predicting competitor reactions, to understanding the actions of lawmakers is enhanced by accurately picking up on emotion. HR directors can fine-tune their own emotional perception as well as encourage the development of brain skills such as perspective-taking, empathy and influence for other senior leaders involved in strategic planning or complex problem solving.
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RIDING THE PEAKS – AND THE TROUGHS SHELL OIL’S JOHN HOFMEISTER
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WORKFORCE PLANNING / RETIREMENT
Set phasers for
RETIRE
Phased retirement is back on the agenda following the GFC. Gary Taylor outlines one best practice approach
DID YOU KNOW? For Baby Boomers, funding retirement is a top priority. Mercer’s Benefits Outside the Square study found that 40% of employees aged 50+ are unsure how much they will need in retirement, and furthermore an increasing number of people expect to delay retirement until their 70s.
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The GFC paused the widespread plans of many employers to introduce Phased Retirement plans as a solution to the impending crisis of retiring Baby Boomers. However, it appears the pause button is being released, with some 61% of employers now considering strategies to deal with the problem. The issue centres primarily on the likely skills loss when these boomers with 30 years of experience retire from their present employers. Traditionally, we have thought of employment and retirement as being two consecutive states – you work full time until a particular point, and then retire full time. If the retiree were to get employment elsewhere, that would be their own business, even if working for the opposition. Phased Retirement (on the other hand) transitions the employee into a different set of circumstances, which may see the role changing to one of less executive authority, probably working hours being reduced, remuneration reduced, and possibly an extended period of employment.
KEY BENEFITS
1
The employer creates career path space at the senior level to attract or retain a talented younger high-flier, while retaining the experience and organisational wisdom of the age 50+ incumbent for the purposes of mentoring, continuity, client comfort, etc.
2
The Baby Boomer is probably ready for the shift in work-life balance, has previously enjoyed the
title, power and salary but is now looking forward to smelling the roses, taking more time off and avoiding daily traffic. At the same time, he gets to extend his earning power and still be valued for making a professional contribution.
3
Both parties benefit from the flexibility that is built into the new contract, which customarily does not exist in regular employment conditions of service. Phased Retirees will be willing to work full hours or more during the employer’s peak periods, if they can get long weekends, extended vacations and other lifestyle-enriching perks. Some employers see Phased Retirement as being of limited duration, and for a specific purpose; for example, managing an organisational restructure or other short-term business need. Other employers see this as an open-ended employment category designed to harmonise employer needs for succession planning together with employee desires to scale back. Still others see this as a palatable means to incentivise voluntary retirements.
STEPS TO DESIGNING A PROGRAM By definition, flexible retirement solutions themselves need to be flexible. While you don’t want to reinvent the wheel for every phased retiree, we need to understand that different employees are motivated by different ‘buttons’. One might want a shorter day, while another wants full days, but more days off. Some might want to work from home,
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others not. Likewise, your own managers will want different deliverables from phased retirees, and HR needs to be flexible enough to accommodate their operational needs if you want the program to work. The following steps would be useful when introducing a phased retirement program: 1. AUDIT THE CURRENT state: get a handle on your labour demographics by means of whatever workforce planning tools you use. Look ahead for at least 3–5 years. Remember that you might need to be more subtle than headcount, and consider assessing what skills and knowledge you need to meet the strategic plan. 2. RESEARCH EMPLOYEE PERCEPTIONS: data mining or focus groups might help you to test HR’s ideas against reality. If possible, benchmark with other employers, and verify any proposed solutions with legal expertise, to avoid problems later. Make sure that any flexibility is carefully addressed in the wording of the contract. 3. IDENTIFY BARRIERS AND DEVELOP SOLUTIONS. You will want to give comfort to leadership that the program is going to work – this is not something you want to launch with a fanfare, only to then retract under challenge. You want maximum flexibility yet do not want to be accused of inequitable practices. 4. COMMUNICATE: this should be well received, so optimize your chosen message and channels of communicating the program. Everyone should know clearly who is eligible, who initiates a request, the process for approval, reviews, disputes, etc. If possible, have at least one case ready for implementation, so that all parties see the program in action. Having an advocate from within the program will go a long way to gaining acceptance. 5. BE THOROUGH IN YOUR ADMINISTRATION. Dry run the entire process. For instance, is the person regarded as a full-time employee or a 50% FTE on your HR information system? Do they apply for leave over and above what is in the contract, and can the system handle pro-rata leave? Are they on a separate payroll? How do fringe benefits apply? Is
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It would be naïve to suggest that Phased Retirement programs are easy to conceptualise and implement there more than one step to full retirement they can take – for example, 30 hours pw to 20?
CASE STUDY: BASF This large multinational employs more than 100,000 people globally, and introduced Phased Retirement as part of its talent management initiatives. It was implemented selectively within the US, specifically for its manufacturing workforce. After an inventory of the current state, they determined that a large percentage of their skilled workforce would retire by 2020. They had concerns regarding succession and replacement which highlighted production and even safety risks. During 2011, BASF convened a multi-disciplinary working group which included employees from the targeted areas – the group generated 35 options which were analysed and prioritised based on the impact on the business and ease of implementation. Some of the benefits gained from the program include: • employees give advance notice of intention to retire, particularly avoiding problems of short notice from those retiring early • skills transfer programs can now be devised in a collaborative fashion • culture is enhanced to facilitate discussions about retirement or phased retirement plans. The smooth transfer benefits the employer, the retiree and aspirant talent. It would be naïve to suggest that Phased Retirement programs are easy to conceptualise and implement. Not only are you dealing with legal and operational issues, but there are all the understandable emotional factors associated with major career transitions. Nevertheless, the benefits seem to be material, and therefore worth the journey. Old man river.
Gary Taylor is an HR director who has worked for Australian, South African and British multi nationals on two continents, including the Middle East. He is registered as a Master HR Practitioner with the South African Board for People Practice, and served as the Vice President for the Institute of People Management
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CORPORATE HEALTH / PSYCHOLOGICAL WELLBEING
Heads-up about PSYCHOLOGICAL HEALTH New research has revealed that nearly three quarters of Australian employees believe a mentally healthy workplace is important when looking for a job. How does your workplace stack up?
Last month’s HR Director feature on engagement contained an interesting nugget that shone light on a too-often-neglected aspect of modern corporate life: work-life balance. When Corporate Executive Board’s latest engagement statistics were analysed, it was discovered that lack of work-life balance was a key ‘push’ factor for employees leaving one company for another, and this was especially prevalent in markets where employees had been pushed almost to breaking point and asked to go above and beyond to pick up the workload of departed employees. The key phrase is “where employees had been pushed almost to breaking point”. Why should anyone be pushed almost to breaking point in a work situation? Workplace fatalities from physical accidents and injuries have thankfully dropped in recent years, so why has psychological health not garnered as much attention? Perhaps this is about to change – and the cynics might suggest this is only occurring because the impact on the bottom line is being realised. PwC’s 2014 research* revealed that the impact of employees’ mental health conditions on productivity, partici pation and compensation claims cost Australian businesses $10.9bn p.a. Further research has revealed that almost half of Australian workers have left a job because it was mentally unhealthy. And, surprisingly, mental health is ranked second only to pay as the most important factor when choosing a new job. The survey, released as part of the ‘Heads Up’ campaign launched by beyondblue and the Mentally Healthy Workplace Alliance, is a call to action for business leaders to take proactive steps in relation to issues such as depression and anxiety.
QUEST TO BECOME MENTALLY HEALTHY So what is a mentally healthy workplace? beyondblue defines it as one that is considered
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friendly and supportive, promotes a positive workplace culture, minimises workplace risks related to mental health, supports people with mental health conditions appropriately, and prevents discrimination. beyondblue’s research shows a clear link between a mentally healthy workplace and the attraction and retention of staff, and suggests that most Australian businesses need to create more supportive workplaces if they want a competitive edge in their hunt for the best people.
SPOTTING THE ISSUE All HR professionals, and indeed all managers, should be aware of the red flags a psychologically distressed person may be presenting. There are organisational metrics that can also indicate potential problems: presenteeism, absenteeism, a decline in performance, increased grievance complaints, and EAP usage. David Burroughs, managing director and principal psychologist at CommuniCorp Group, says most people can see when someone else is suffering, but they may be reluctant to intervene and have a conversation. Sometimes, he adds, a simple change in behaviour can be a clue that someone may be in distress. “By giving staff the competence and capability to recognise distress in an individual, to know how to initiate a conversation and then be aware of where to refer someone to internally, is very important. It’s what we call a psychological safety foundation skill that all organisations should have,” says Burroughs. Burroughs stresses that this does not mean organisations should expect their staff to act like “amateur psychologists”. “It’s not appropriate to Does gender matter? % of workers who have left a job due to a poor mental health environment
44% of men
52% of women
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Workplace fatalities from physical accidents and injuries have thankfully dropped in recent years – so why has psychological health not garnered as much attention? train people to be aware of all the different types of mental health issues out there. What is important is showing people how to intervene if they suspect someone is having a hard time.” In addition, managers need to understand WHS obligations when it comes to psychological health and safety, be aware of return-to-work issues, and be confident in managing performance when there may be suspected psychological issues at play.
A BROADER VIEW REQUIRED A significant challenge for organisations right now is developing an intervention that is specific to their particular workforce. “At the moment the media is flooded with messages, glossy brochures and initiatives about mental health, and it’s hard for WHS and HR managers to work out what is required for a particular workplace,” says Burroughs. Another downside to this focus on just a few psychological issues – depression and anxiety – is that it means certain subclinical and other mental health concerns can be overlooked. These include workplace incivility, interpersonal conflict, bullying and harassment, and the inability to cope with stress and increased demands to do more with less.
Does age matter? % of workers who have left a job due to a poor mental health environment
47% aged 40–59
58% aged under 40
27%
aged 60+
How important is a mentally healthy workplace when looking for a job?
34%
believe it is essential or very important
71% believe it is important
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CORPORATE HEALTH / PSYCHOLOGICAL WELLBEING
“All these things, while they may not be mental health diagnoses, can be equally important as depression and anxiety, and they can quite often be overlooked,” says Burroughs. He adds that it’s critical to look at the issues not so much from a “community mental health perspective” but rather through a “workplace lens”. “Are we genuinely giving people the confidence and capabilities to be proactive when it comes to psychological health? Yes, that does require a certain amount of people skills, but it also requires having the right policies and procedures in place, having leaders who are skilled and committed to these sorts of processes and who can take the time to identify psychosocial risk factors.”
TAKING ACTION: ESSENTIAL STEPS Four themes emerged from the beyondblue research showing the actions employers can take that will result in mentally healthy workplaces: policies, training, supportive management and action.
KEY TAKEAWAYS Australian business leaders need to take action to foster better mental health in the workplace. Employers should develop positive mental health policies and communicate these through every level of the business. Training should be provided for staff and managers to help them deal appropriately with mental health issues in the workplace. Managers and HR professionals should show that they are committed to promoting the mental health of staff, and create a culture to support this. Employers should actively identify threats to mental health in the workplace and work with staff to address these. Organisations should promote their business to potential employees as being a mentally healthy workplace. *Creating a Mentally Healthy Workplace: Return on Investment Analysis, 2014, PwC
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CORPORATE HEALTH / ADVERTORIAL
Workforce
health update
Health at Work has released the findings of its investigation into the health of blue and white collar workers
Being a leading corporate health provider since 1999 has placed Health at Work in a unique position to collect and collate health data pertaining to a large number of employees and a diverse crosssection of sectors in Australia. Our electronic data storing facilities, implemented in 2006, have made it possible to build a de-identified aggregate data set from the individual health checks performed by our company since that time. In 2013, Health at Work performed some basic analyses on a sample of 5,000 employees, with the intention of producing a contemporary snapshot of trends in Australian corporate health that advance the previous findings of the Medibank Private Study (2005) in a number of key ways: larger sample size; the capacity to isolate blue and white collar worker data and trends; more comprehensive subgroup analyses – by age group and gender; and comparisons between health risk behaviours among each subgroup with age- and gender-matched controls from the Australian population. The composition of the current data set is as follows:
this, it paves the way for more targeted workplace interventions that will ultimately be more effectual and produce greater ROIs. Key results revealed marked differences in white collar and blue collar health. For example, for body mass index (BMI), 24% of blue collar workers were shown to be obese (versus 14% of white collar workers), 50% were overweight (42% of white collar), and just 26% were deemed ‘healthy’ (44% of white collar). Further differences can be seen in the two graphs below. 40%
Rates of high blood pressure: Comparison between blue and white collar workers and the Australian population (>25 yrs)
2,613 White collar
25% 20% 15%
36%
30%
10% 5% 0%
20%
Blue collar workers
Australian population
50% Rates of high cholesterol: Comparison between blue and white collar workers and the Australian population (>25 yrs)
40% 30% 20%
52% 34% 24%
10%
2,415 Males
290 Females
1,591 Males
1,022 Females
By undertaking these analyses of our aggregate data, we have found strong support for the frequently reported disparity between the health risks faced by blue and white collar workers. In addition to this, interesting trends have been elucidated within each sector, regarding specific areas of heightened risk, perceptions of health, age-related trends and lifestyle behaviours. With this knowledge comes the opportunity for employers to compare their workforce health risks with those of other Australian workers. In addition to
White collar workers
60%
5,319 health checks 2,706 Blue collar
35% 30%
0%
Blue collar workers
Australian population
White collar workers
As you can see, Health at Work’s reporting provides a true comparison of specific work sector data, rather than a comparison to just the general Australian population.* This gives a greater and more accurate understanding of your work sector’s health in relation to the Australian workforce. With this data, you can design your health and wellbeing program or strategy to be specific to the needs of your company’s demographics and work sector. For further information, visit healthatwork.net.au. *Source: Health at Work Aggregate Report 2006–2013
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PEOPLE MANAGEMENT / MINDFULNESS
The art and science of
MINDFULNESS
Most HR professionals are aware of the importance of emotional intelligence – but mindfulness is perhaps the ultimate in brain training for better personal and professional outcomes Detailed brain scans show that the practice of mindfulness changes both the physical structure and activity of regions of the brain associated with emotional regulation, memory, learning and decision-making. In addition, mindfulness practice reduces reactivity, giving us a bit of space to choose our responses rather than reacting automatically. These capabilities are critical for effective leadership and, with mindfulness training, they can be enhanced, regardless of where you’re starting from. “Mindfulness practice is essentially attention training combined with attitudes which promote awareness and self-control,” says Eric Winters, trainer and coach, Chocks Away Mind Skills Consulting. “The result of mindfulness is greater awareness – of self, others and context – and less reactivity. These mindfulness skills are foundational to greater emotional intelligence.” We’ve all done it. In a fit of fury or just plain annoyance, we’ve hastily typed a snarky email to a colleague and hit ‘Send’, without first thinking of the repercussions. It’s known as action addiction: often when things happen we want to fix it immediately. There’s even a neurological incentive to do so: we get a hit of dopamine from feeling like we’ve taken quick, decisive action. It’s human nature to act before thinking, right? It is, but it doesn’t necessarily have to be. The concept of mindfulness is not new; in fact, as a concept it is over 2,500 years old. However, its relevance to the corporate world is increasingly being recognised thanks to recent developments in neuroscience.
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TEAM BENEFITS For HR professionals, being aware of your own state, your intuitions and strengths, and having a greater ability to manage your emotions and behaviour, supports the notion of authentic leadership – that is, being able to more consistently walk the talk. “Teams respond well to people they experience as genuine,” says Winters. “Relationships with teams improve as people sense they are truly being listened to rather than neglected or taken for granted.” Mindfulness also develops empathy for others, a vital trait for sustaining productive working relationships. And noticing how others respond to
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HUMAN RESOURCES DIRECTOR
your leadership is valuable feedback in recognising what’s effective and what is less helpful leadership behaviour.
STRESS BUSTER, INNOVATION BOOSTER Life is stressful and so is work. An acronym helps to sum up what we all face: PAID – that is, Pressure, Always on, Information overload, Distracted. “These pressures impact our productivity, creativity and even our wellbeing,” says Gillian Coutts, senior trainer, The Potential Project. “The pace of change externally now is constant and organisations need to adapt, so this idea that we’ll be able to control and get all the ducks lined up in a row and then life will be great is not the reality. We can’t use the methods we’ve used in the past to grapple with the issues we currently face.” For all employees, the enemy of innovation and creativity is stress. When we’re stressed our minds narrow to focus on the threat at hand, and our thinking is habitual. Mindfulness can help diminish stress and nurture the broad, open and flexible thinking required for innovation. Indeed, Winters notes that one of the most important aspects of mindfulness is that it helps us to step out of autopilot, when we behave and think in routine ways, and instead step into more flexible thinking and behaviour required for innovation.
DISPELLING MYTHS Despite being picked up and utilised in companies like Sony, Microsoft, GE and Amex, there is naturally scepticism from many when anything to do with changing the way the brain functions is proposed, and mindfulness is no different. Yet neuroscience provides a rigorous scientific evidence base for the effects of mindfulness practice. Winters welcomes scepticism and says there is wisdom in not believing everything we’re told. He feels it’s better to check the evidence, to have your own experience of mindfulness and make your own mind up as to whether it’s helpful or not. There are, naturally, some misconceptions that need to be cleared up. Mindfulness is not, for example, an approach to empty the mind. It’s not an approach to make you feel better. It doesn’t require any odd sitting postures or chants. “The objective is not to reach some sort of enlightened state,” says Winters. “It’s not some-
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“The result of mindfulness is greater awareness – of self, others and context – and less reactivity” Eric Winters thing you have or do not have. Mindfulness is a skill, a capacity we all have to some degree. Mindfulness practice allows us to develop that skill to improve our ability to make better choices and live and work more effectively.”
MINDFULNESS TRAINING Mindfulness can be learnt either in groups with a mindfulness teacher guiding its practice, or by listening to a recording guiding your attention. The ideal approach involves a combination of the two. Group practice with a teacher is particularly effective because questions can be addressed regarding optimal practice and students learn a great deal about the human mind from listening to each other’s experiences. Group training sessions are typically held weekly with daily home practice. The Potential Project, for example, advocates an eight-week program, in which a group of people meet for an hour each week to cover the concepts and undertake training. Coutts says people are keen to learn how to sharpen their ability to focus, but she is often asked at these sessions what this means in the workplace. For example, what does it look like if you place that focus and awareness in a boardroom meeting? What does it mean if you’re managing change? “It’s taking that capacity you’re building neurologically and placing that within the workplace setting, so you then end up with both an individual impact, and at the same time there starts to be an organisational cultural shift where you start to move towards these enhanced behaviours. It helps to move it away from the airyfairy,” she says. Like most things in life, mindfulness can be sustained, but it requires the discipline of regular daily practice. The Project Group recommends daily 10-minute practice, which can be done at home or in the office. “It’s like a muscle-building or physical exercise – once you stop training you lose the benefits after a while,” says Coutts.
TOP TIPS » Don’t feel that you need to fill up all your time with doing. Take some time to simply be. When your mind wanders to thinking, gently bring it back to the flow of your breath. » Recognise that thoughts are simply thoughts; you don’t need to believe them or react to them. » Notice where you tend to zone out (eg driving, emailing or texting, web surfing, feeding the dog, doing dishes, etc.). Practise bringing more awareness to that activity.
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TECHNOLOGY / FATIGUE MANAGEMENT
ASLEEP AT THE WHEEL Brought to you by
Fatigue in the workplace costs lives. It may be alarmist, but in this ‘do more with less’ environment, worker fatigue is an unfortunate reality. HR Director looks at how a fatigue management policy and the latest technology can positively impact the lives of workers – and the bottom line of your organisation The current business mantra of ‘doing more with less’ brings with it a somewhat hidden downside: increasing incidents of employee mental fatigue, and the sometimes tragic results this can cause. History is littered with fatigue-related incidents. Two high-profile examples include the catastrophic nuclear accident at Chernobyl in 1986 and the Exxon Valdez oil spill in 1989. Locally, and more recently, there have been countless trucking accidents attributed to driver fatigue. This ultimately resulted in new Heavy Vehicle Driver Fatigue laws in 2009. This legislation aimed to target the root cause of driver fatigue, rather than simply regulating hours, and has made all parties in the supply chain legally responsible for preventing driver fatigue. Transportation is one Australian industry in which fatigue management is a serious issue, but, equally, healthcare, nursing, aviation, mining, hospitality and security are areas in which appropriate labour allocation and management is a hot topic. In reality, it should be top of mind for employers in any industry, but particularly those that demand employees work
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long hours or operate heavy machinery, and those in which being alert is critical to people’s safety.
WHAT IS FATIGUE MANAGEMENT? Fatigue management is the ability to measure the degree and timing of mental fatigue of workers based on their shift-work patterns. Employee fatigue can be a complex and multifaceted issue, but three steps can help to effectively manage it: 1. Identifying fatigue-inducing jobs or shifts within an organisation 2. Instituting programs and policies to minimise the impact of these factors 3. Actively avoiding scheduling employees who may not be ‘fit for duty’ Leslie Tarnacki, vice president of HR at WorkForce Software, says point three can be addressed primarily by ensuring there is adequate rest between shifts and that a sufficient number of days off are being taken during a specific period of time. Business leaders and managers should also ensure that only properly qualified staff carry out certain tasks.
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THE ROLE OF TECHNOLOGY Technology can help. There are a number of time and attendance and fatigue management solutions on the market. WorkForce Software, for example, delivers a solution that is aimed at not just assessing employee fatigue but also enforcing fatigue management best practices directly within a time-and-attendance application. Ideal for large employers with complex policies and compliance concerns, the solution can be delivered as part of the WorkForce Software ‘EmpCenter Fatigue Management Suite’, or work in concert with an organisation’s existing time and attendance system. Working in unison with a time-and-attendance system, automated fatigue management solutions can track an individual’s time and activities, break and shift patterns, and other factors to create a ‘fatigue score’. Managers can then define actions to be taken once that fatigue score hits a certain level; for example, not allowing an employee to be scheduled until they have taken time off, or restricting the number of tasks a person can complete until they have rested. Cynics may argue that it’s impossible to objectively measure the degree of mental fatigue in workers based on their shift patterns. Yet fundamental physiological truths cannot be ignored. Human beings are hardwired for sleep and consistent sleep patterns, and the ‘natural’ sleep pattern is to rest the mind and body during the night. Shift workers, of course, do not work ‘normal hours’. An official condition, known as Shift Work Sleep Disorder (SWSD), has been well documented. Recently, SWSD has been noted in nonshift employees, a possible result of working longer, more disruptive schedules. The addition of stress can accelerate or amplify fatigue. “Being able to measure and score these activities helps employers to create and enforce guidelines aimed at safeguarding their business from the detrimental effects of fatigue,” says Tarnacki. “Each individual has his or her own tolerance for fatigueinducing activities, but establishing guidelines and internal mandates can help the vast majority of employees minimise working when fatigued and insulate the company from fatigue-related risks.”
THE RISK OF GETTING IT WRONG The type or severity of risk typically depends on the type of job the employee is undertaking. Tarnacki says the aviation industry, for example, has high risk associated with employee fatigue, and there have been high-profile cases of pilot fatigue leading to tragic accidents.
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AWARDS AND AGREEMENTS Fair Work Australia regulates and enforces all workforce management legislation governing items such as unpaid breaks and breaks between shifts. For example, MA000004 – General Retail Industry Award 2010 stipulates: yyEach employee who works in excess of five hours will be entitled to an unpaid meal break of 30 minutes. yyAll employees will be granted a consecutive 12-hour rest period between the completion of work on one day and the commencement of work on the next day. Where an employee recommences work without having had 12 hours off work, then the employee will be paid at double the rate they would be entitled to until such time as they are released from duty. Other examples include MA000018 – Aged Care Award 2010; MA000034 – Nurses Award 2010; and MA000009 – Hospitality Industry (General) Award 2010. For further information on specific awards and agreements, visit: fwc.gov.au/ awards-and-agreements.
She notes, however, that the ill effects of fatigue do not have to result in life-or-death situations. “Reduced productivity, poor judgment, greater tolerance for cutting corners – all of these traits tend to be exhibited by fatigued workers. As a result, fatigue can have a detrimental effect on just about any business,” Tarnacki says. Tarnacki adds that the current business predilection for ‘doing more with less’ is ultimately unsustainable. Anyone can work long hours with little to no rest in short bursts – but it’s when this behaviour becomes the norm rather than the exception that negative impacts can be felt. There are also government-stipulated minimum working conditions, as well as specific awards and agreements in certain industries (see boxout). Organisations shouldn’t wait until there is an accident to take steps to remedy the issue of fatigue. In fact, there are other signs to look out for. Monitoring productivity, client retention and similar statistics can be red flags indicating something is awry and can play a role in identifying where and when action needs to be taken. Tarnacki adds that human beings are not machines, and individuals need downtime to recharge their batteries, refocus their minds, and ensure they are operating at peak – or at least passable – levels of performance. “As an employer, it’s your responsibility to ensure that happens,” she says. WorkForce Software offers two workforce management software suites in Australia: EmpCenter and RosterLive. EmpCenter is an enterprise flagship offering, while Rosterlive is a product suited to small and medium-sized businesses (SMB). 250 ANZ companies rely on WorkForce Software solutions today. For more information, visit www.workforcesoftware.com.au or call +61 2 8399 1688.
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RECRUITMENT / TOP TIPS
MORE BANG
FOR YOUR RECRUITMENT BUCK Brought to you by
How are recruiters adding value in 2014? The recruitment industry may be in a constant state of flux thanks to new technology and a market shift to undertaking some recruitment tasks ‘in-house’, but there is still an important role for recruiters to play. HR Director asked Steven Begg, director of In-House Recruitment Group, for his top tips for enhancing the recruitment function. 1. USE TECHNOLOGY SMARTLY From professional networking tools like LinkedIn through to social tools like Twitter and sophisticated employee referral networking platforms like Zao, the recruitment game has been impacted on by technology – perhaps more so than any other area of HR. In this age when many recruitment tasks can be handled in-house, can professional recruiters still add value? “The recruitment industry needs to realise that the needs of their clients have changed, and they must therefore change their services to suit,” says Begg. “Recruiters can add a tremendous amount of value; however, they have to work with an employer’s in-house initiatives.” Begg says social recruiting is simply another option the recruiter can use. “It isn’t the panacea of candidate sourcing and will only work for certain roles,” he says. “When it comes to recruitment/candidate-sourcing strategies, one size does not fit all and a capable recruitment team needs a thorough understanding of what strategy works best for different situations.”
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WORTH A TRY? The domination of the online job-board market by three major players – SEEK, CareerOne and MyCareer – appears to be splintering, with the appearance of new, niche players offering specialist services. » WORKIBLE A shift towards a flexible and temporary workforce has been mused about in technical and creative fields for some time, but it is also seeping into retail and hospitality. Workible attempts to allow for ‘rapid hiring’ by going for an instant, mobile-based approach. Employers can use Workible to find ad hoc staff for peak periods, short-notice leave and more, then engage them quickly. » THE LOOP The Loop focuses on creative positions and attempts to bridge the gap between networking and hiring. Candidates can set up profiles and portfolios easily and find projects to work on. Essentially, it fulfils the need for a less-corporate jobseeking environment, and is useful for companies looking to engage creative professionals for full-time or contract/project work. » INDEED Indeed is not a job board in and of itself but part of the aggregator model – a relatively new model in Australia. Indeed acts as a one-stop shop for jobseekers who can use it to find jobs posted on a multitude of different sites, including internal job boards.
2. LOOK FOR RECRUITMENT GAME-CHANGERS There are countless organisations out there today who have a different mindset when it comes to recruitment and talent acquisition. HCAMAG.COM
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In-House Recruitment Group, for example, has re-engineered the recruitment model, which has allowed them to offer a full recruitment service for a fraction of a traditional recruitment fee, irrespective of salary level. “We’ve developed a way to provide a service that is as good, if not better, than what’s available from a traditional agency, for a fraction of the price,” says Begg. “Too many agencies reduce their rates to win business. With 80% of their costs being fixed, this methodology is untenable.” The IHRG model is based on an hourly rate, meaning clients can use In-House Recruitment Group as their in-house recruitment function or use them to supplement their current in-house/HR team, which in turn can save them a significant amount of money. “Our recruiters are HR qualified rather than sales people, which produces a better outcome,” says Begg. “We’ve changed the game of recruitment, not the process – the process actually works. Over the past 80 years the recruitment process has been tested and proven. It worked 30 years ago when I first joined, and is really no different today, except for some clever database and communication tools.” Begg adds that there are too many organisations trying to automate the recruitment process to reduce costs and, unfortunately, “the outcomes are less than spectacular”. “Recruitment is a people-based business. While new ideas like video interviews and automated questions may make the process quicker, they may ultimately have a detrimental effect on the quality of the candidates. Technology cannot replicate human judgment.” 3. PREVENTION IS BETTER THAN A CURE Begg’s number one tip – surprisingly, for a recruiter – is to avoid the need to recruit in the first place. He says, simply, that the best way to reduce recruitment costs is to do less of it, and that means focusing on staff retention. “There are many hidden costs in staff turnover. The cost of having a role vacant for two months is enormous but hard to quantify, so it doesn’t show up on your P&L. The only cost you see on your P&L is the cost of the solution to the symptom, not the HCAMAG.COM
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THE HUMAN FACTOR An Influencer series on LinkedIn asked some of the world’s top business leaders for their hiring secrets. FENWICK: PEOPLE, NOT RÉSUMÉS Dow Jones CEO Lex Fenwick cuts right to the chase: “Résumés are puff pieces. They’re written by an individual, about the individual.” While a résumé might match the job the recruiter is looking to fill, looking good on paper doesn’t necessarily mean they’ll fit the position or management style. Using a résumé as a starting point will often lead you to those with a lot of qualifications who can do the job with their eyes closed, but that isn’t good. Instead, grow your network constantly and seek out individuals who can bring something new to the position – you have to be different to be successful. WELCH: GAME CHANGERS Jack Welch, executive chairman of the Jack Welch Management Institute at Strayer University, boils hiring down to a formula: the must-haves, the definitely-should-haves, and the game changer: ••Must-haves: Integrity and high IQ. ••Definitely-should-haves: The ability to energise others to keep the momentum flowing, the edge to make yes-or-no decisions on the tough calls, and the ability to execute and get things done, topped off with a healthy dose of passion for both work and life. ••The game changer: The game changer, also known as the ‘generosity gene’, refers to the built-in desire to help others improve, grow and thrive. These employees will develop into managers who can inspire trust and unleash the dormant productivity and creativity within their staff.
hidden costs associated with the problem,” he says. If you are forced to ‘do’ recruitment, Begg says it’s critical to plan for it. “To most organisations, recruitment is a burden. Invest some time getting your systems in place, and invest in a pipeline of important/urgent candidates which will reduce your time to hire when the inevitable comes.” In-House Recruitment Group have changed the game of recruitment by improving the quality of the recruitment process, adding flexibility while dramatically reducing the costs attached to external recruitment. They work as (or supplement) a company’s in-house recruitment function, therefore improving the efficiency of its talent acquisition function. For more information, call 02 8005 6299.
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R’s night of nights is almost here! Following on from a hugely successful sold-out event in 2013, the 2014 Australian HR Awards promises to be another blockbuster event. The Australian HR Awards recognises outstanding achievements by individuals, teams and organisations across the people management spectrum. The finalists for the 2014 awards have been determined by following an in-depth research process from a team of experienced, independent judges to verify nominations and identify the
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most deserving in the industry. Over the following pages you will discover who has made the grade as finalists this year. The awards will be held as a black-tie event on Friday 5 September, with fine dining and first-rate entertainment at Doltone House, Darling Island. The evening will be hosted by Julia Morris, host of Australia’s Got Talent and cast member of House Husbands. For more information about this event and to book your table, visit hrawards.com.au
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HRD MAGAZINE Best HR Industry Innovation and Corporate Creativity DHL Express (Australia) Pty Ltd Main Roads WA QBE Insurance Australia Limited RXP Service Suncorp Therapy Focus
This award recognises excellence in the delivery of employer branding campaigns. Finalists have shown success in shaping and influencing corporate values and culture through internal messaging and communication campaigns.
EMPLOYEECONNECT Best Use of Technology Cisco Systems Australia Commonwealth Bank of Australia DHL Express (Australia) Pty Ltd MSS Security Staging Connections Thomas Foods International Woolworths Limited
This award recognises excellence in the area of human capital technology use by an inhouse HR team. Finalists demonstrated the implementation of a significant change in the way employees use and interact with technology. AWARD SPONSOR EmployeeConnect is a recognised leader in the HRMS market in the Asia Pacific region. Our focus is to provide you with the ‘best of breed’ web-based HR solution that can integrate with any payroll engines. Together with our experience and extensive research, we thoroughly understand all areas of HR and know how to help you transform paperbased HR proccesses into an integrated, enterprise-wide, human capital program delivering strategic, financial and competitive benefits. Our solutions are known for their flexibility and scalability that are easy to use and cost effective to implement. CONTACT: Ari Kopoulos, National Sales and Marketing Manager P: 02 8228 8000 E: info@employeeconnect.com W: www.employeeconnect.com
FUTURE KNOWLEDGE Best Change Management Strategy Bankwest Bendigo and Adelaide Bank Credit Union Australia Luxottica Main Roads WA Merck, Sharp & Dohme Qantas
Amazon’s founder, Jeff Bezos, once said: “Once a culture is formed it takes nuclear weaponry to change it”. This award recognises excellence in the area of shaping, managing and influencing organisational change, including mergers, acquisitions, restructuring, strategic and cultural change. AWARD SPONSOR Future Knowledge is a specialist management consultancy which partners with companies undertaking technology-led business transformation programs in Australia and New Zealand. Our expertise lies in helping clients more quickly achieve their future state of ‘business as usual’, following adoption of technologies including Cloud-based Business Software, Mobile Technologies, ERP and HR Systems. CONTACT: Paulus Briels P: 02 9965 7261 E: pbriels@futureknowledge.com.au W: www.futureknowledge.com.au
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SOLTERBECK Best Reward and Recognition Strategy DHL Express (Australia) Pty Limited Diageo Faiveley Transport Schweppes Australia Superpartners The Greater Building Society
This award recognises excellence and innovation in employee reward and recognition programs and initiatives. Finalists have pioneered performance-linked reward and recognition programs across areas such as salary, benefits and reward schemes. AWARD SPONSOR Solterbeck specialises in engaging and motivating employees and channel partners. Whether you’re looking to develop a new program or re-invigorate your current one, we’ll work with you to achieve best practice in sales and channel incentives, employee recognition and referral programs, internal communication, incentive travel, conferences and events. If you’d like to increase the engagement and discretionary performance of your team, we’d love to help. CONTACT: Dave Jackson, Executive Director P: 0419 358 188 E: davidj@solterbeck.com W: www.solterbeck.com
POWER2MOTIVATE Best Employee Value Proposition Australian Red Cross Blood Service Port Stephens Council The Greater Building Society Therapy Focus
This award recognises the HR team that has implemented the most unique and compelling employment experience to all employees, encompassing best practice in reward & recognition and L&D strategies, strong leadership, and a successful corporate culture. AWARD SPONSOR Power2Motivate delivers the world’s best employee reward & recognition, sales incentive, customer loyalty and training solutions. We offer our clients easy and cost-effective ways to improve employee performance, inspire employee, customer and channel partner loyalty and assist in building brands and driving profits. We allow you to create, deploy and manage multiple recognition, incentive and training programs on any scale, delivered to a single department, the whole organisation or around the world to other corporate locations. CONTACT: Mark Robinson, General Manager – Asia Pacific P: 1300 853 542 E: mark.robinson@power2motivate.com.au W: www.power2motivate.com.au
ORACLE Best HR Strategic Plan Assetlink Brisbane Airport Corporation Optus Parramatta Mission PepsiCo Pitcher Partners
This award recognises the HR team that has driven and implemented the most innovative and successful strategic plan. Finalists have demonstrated an innovative/ unique approach to addressing key business issues that contributed to commercial or organisational achievements. AWARD SPONSOR Oracle is the leading vendor of HR software, managing the employee lifecycle for 40 million workers in 14,000 organisations across 40 countries. Oracle’s HCM applications are a complete and integrated suite from core HR to workforce service automation, to complete enterprise talent management. Available in the cloud or on premise. CONTACT: Amy Brinker, Account Manager P: +61 2 9469 5742 E: amy.brinker@maxaustralia.com.au W: www.oracle.com/au/
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H
R Hall of Fame
This is the highest honour and most coveted award at the Australian HR Awards. This award recognises an individual who has made an outstanding contribution to the industry as a whole through visionary people management strategies and leadership.
AWARD SPONSOR Remesys is an Australian remuneration and talent management software provider. We design and deliver intuitive HR software solutions that are configured to meet an organisation’s specific requirements. We have implemented our award winning solutions in organisations across the Asia Pacific region to streamline salary reviews, performance reviews, variable pay and share/equity allocation processes.
CONTACT: Lara Kirschner, director P: 0411 380 370 or 02 9247 7277 E: info@remesys.com.au W: www.remesys.com.au
ACCUMULATE Employer of Choice (>1000) Accenture Australia Avis Australia and Budget Rent a Car Deloitte Fitness First ING DIRECT PepsiCo Sanitarium Health and Wellbeing
This award recognises the best large organisation to work for in Australia. Finalists have pioneered performance-linked reward and recognition programs, placed importance on professional career development opportunities, and created an inclusive environment that values work life balance and encourages working relationships that place an importance on trust, respect and recognition. AWARD SPONSOR For the past 15 years, Accumulate has helped many of Australia’s top brands connect more effectively with their employees, customers and channel partners to drive strong bottom line results. As a wholly owned subsidiary of Qantas Loyalty, we deliver innovative, highly scalable employee recognition, sales incentive and customer loyalty programs that will engage the people most critical to the success of your business. CONTACT: Alan Heyward, Sales and Client Service Director P: 1300 733 725 E: alan.heyward@accumulate.com.au W: www.accumulate.com.au
FRAZER JONES Australian HR Rising Star of the Year Faisal Ahmed, CBH Group Blair MacCowan, Civeo Pty Ltd Nisha Goundar, Eaton Industries Matthew Francis, RSPCA Qld Michael Contreras, Staging Connections Emma Brooks, Wagner Industrial Services Pty Ltd
The HR Rising Star of the Year recognises the practitioner who has achieved impressive results with less than five years of experience. AWARD SPONSOR Frazer Jones is a niche, highly specialised, boutique Human Resources (HR) recruitment firm with well-established offices in Sydney, Melbourne, Hong Kong, Singapore, Dubai, Düsseldorf, Munich and London. We recruit at all levels of seniority from HR administration through to HR Director on both a permanent and interim basis. Our expertise covers the whole spectrum of the HR job family and includes roles in learning and development, talent, reward, OHS and recruitment. In addition to traditional contingent HR recruitment we also offer a retained search methodology and can map specific backgrounds and skills to produce a shortlist of “hard to find” candidates both in Australia and offshore. CONTACT: Ciaran Foley, Manager (Sydney) P: (02) 9236 9090 E: ciaranfoley@frazerjones.com.au W: www.frazerjones.com/australia/
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Best Health and Wellbeing Strategy Austin Health Cisco Systems Australia CSIRO Epworth HealthCare Heritage Bank Johnson and Johnson Sanitarium Health and Wellbeing
Employer of Choice (public sector & NFP)
Best Learning and Development Strategy Brisbane Airport Corporation Deloitte Fitness First McAfee QBE Insurance Group Limited Rio Tinto SingTel Optus TNT Express
Accenture Australia Austin Health CSIRO Deloitte EnergyAustralia Programmed
Atlassian Brisbane Airport Corporation eBay Australia and New Zealand Heritage Bank Johnson & Johnson Medical Right Management Youi
Australian HR Manager of the Year
Best HR Marketing and Communications Strategy
Bankstown City Council BNP Paribas DHL Express (Australia) Pty Ltd Peoplebank Australia Limited QSuper Telstra TNT Express
Accenture Australia Campbell Soup Company & Arnott’s Biscuits Ltd Cisco Systems Australia Main Roads WA The Pancake Parlour Water Corporation WA
Simone Cook, Bankstown City Council Irene Bau, Bardot Pty Ltd Kristen Bugeja, Defence Bank Tina Dimitriadis, Family Planning Victoria Robyn Luke, Optus Josh Keech, Randwick City Council
F D w
Australian HR Director of the Year
Best Recruitment Strategy
J i c s t a H
Employer of Choice (<1000)
Best Workplace Diversity Strategy
BUSY At Work Epworth HealthCare Family Planning Victoria HCF (The Hospitals Contribution Fund of Australia Limited) Main Roads WA QSuper Randwick City Council
Helen O’Laughlin, ASIC Lucinda Gemmell, Diageo David Arkell, GE Australia and New Zealand Sarah Robb, Google Susan Ferrier, KPMG Jennifer White, Parramatta Mission Michelle Cooper, Peoplebank Australia Limited Paul Landy, QSuper
Australian HR Champion (CEO)
Jack Percy, Accenture Australia Ann Sherry, Carnival Cruises Jon Linehan, Defence Bank Giam Swiegers, Deloitte Alan Kinkade, Epworth HealthCare Gavin Fox-Smith, Johnson & Johnson Medical Marc Ratcliffe, MRWED Training and Assessment
Australian HR Team of the Year
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Echo Entertainment Group Fitness First Greater Building Society Optus PepsiCo QBE Insurance Australia Limited Sportsbet
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HRA20
HUMAN RESOURCES DIRECTOR
Join your industry colleagues and see The Diamonds take to the stage at the Austr alian HR Awards Friday 5th September 2014 Doltone House, Darling Island www.hr awards.com.au
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IN PERSON / GILL REES
IN PERSON:
GILL REES, BANKWEST
Bankwest’s executive general manager, human resources, reveals why the GFC was good for HR, how her career trajectory was shaped by her degree, and why personal and professional risk-taking can sometimes pay off 52 | JULY 2014
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HUMAN RESOURCES DIRECTOR
and the economic pressures caused by the GFC meant HR became very relevant, even critical, as it provided the opportunity for HR to play a leading role in transforming businesses. This resulted in a harder, more commercial edge to the function.
“As the world becomes more digital and data driven, attracting young people with these skills is critical for the development of our profession”
HRD: How has your bachelor of management science impacted on your career? GR: I often get described as a ‘commercial HR leader’
families in their homes, developed careers and delivered sustainable financial results. Business takes courage but it can lead to amazing results.
and it started with my degree. It has enabled me to understand business and contribute meaningfully to the business agenda. It has also opened doors for me: I recently stood in for the executive general manager of our products and marketing division at Bankwest and have also held commercial roles in the UK.
HRD: What is a big HR challenge you are currently facing at Bankwest? How are you working to overcome it? CR: One of Bankwest’s business priorities is building
HR Director: How did you first get into HR? Gill Rees: I got into HR after a fantastic and challenging placement year while at university.
HRD: You currently work in Australia, but you studied in the UK and worked there in senior HR positions. How does the HR climate differ here? GR: The HR climate is more developed in the UK
HRD: Like many HRDs we speak to, your degree isn’t in HR directly. However, HR degrees are growing in prominence – do you think this is a good thing? CR: I think you need a mix of education, skills and knowledge within an HR team if the profession is to remain relevant and add real value to businesses. HR degrees have their place and you need to understand the specialist aspects of HR, but I don’t think you need to learn it in your higher education. HR is about understanding business, problem solving and finding solutions. Some of the best HR people I’ve worked with over the years had mathematics and engineering degrees, and as the world becomes more digital and data driven, attracting young people with these skills is critical for the development of our profession.
HRD: What HR initiative are you most proud of in your career and why? CR: It’s difficult to pull out one thing I’m proud of. I focus on being the best leader I can, guided by values of integrity and trust and delivering as part of a team. I’m proud of an operating model change I led in a UK mortgage business. It required courage as one in three people in the UK lived in their homes financed by our mortgages. That’s 20 million families! It changed the roles of 1,000 employees and the financial stakes were high. That was seven years ago and it’s still in place today. It has sustained economic highs and lows, kept HCAMAG.COM
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capability to meet current and future business needs – we’re developing our induction, our training, and developing and implementing a new learning operating model to support this.
HRD: Finish this sentence: What I love most about HR is... CR: The business results you can influence by harnessing the power of people.
HRD: What I dislike the most about HR is... CR: Nothing. I’ve been in this game for over 25 years and it’s been an amazing ride – I love it!
HRD: What has been your least favourite job? CR: My least favourite job was the first one after graduation. I was a grad trainee at the Engineering Industry Training Board in the UK. I had a great salary, a shiny new car and a culture where I was told not to work so hard! It was the late eighties and was the only time I’ve struggled with a culture – I only stayed around four months, took a pay cut and a job with no car and I’ve never looked back!
HRD: What is the best piece of advice you have received? CR: Best advice about my career was from my dad. The advice he gave me was “take a risk”. I still follow that advice today, and it’s the reason why I’m now in Australia!
GILL REES CAREER TIMELINE Qualifications 1982–1986
Aston University BSc, Management Science
Work history 1987–1990
JPMorgan Chase HR manager
1991–1997
Country Pursuits Owner
1998–2008
HBOS plc Head of resourcing, retail and insurance divisions; Head of HR, retail branch network; Head of HR, retail products
2008–2011
Lloyds Banking Group HR director, consumer banking division
2011–2012
Lloyds Banking Group HR director, group learning
2012–present
Bankwest Group HR director
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LAST WORD / BENEFITS
THE LAST WORD
Benefits for the ‘I
want
it
now!’
generation
Hardwired for instant gratification, some people will just never ‘get’ benefits that don’t provide an immediate pay-off. Amanda Schaake outlines why We are wasting our time promoting long-term employee benefits to some people. According to recent research, a good chunk of our population is wired to think differently, and there is not a darned thing you can do about it. Benefits should interest everyone, right? Most of the time, yes. But in many cases we find ourselves trying to ‘sell’ the benefits of a future, a better state, to our people, often with limited success. If recent scientific research is correct, the chemistry of the human brain is responsible as it directly impacts on our attitude to planning ahead and preparing for our future. We are all acutely aware of how, as a society, we are becoming more fixated on instant gratification. We instant-message our mates, have shopping delivered to our door overnight, and we have a world of internet information available to us using our mobile phones 24/7. Neuroeconomist Paul Glimcher of New York University recently ran a social experiment to test what it would take for people to willingly delay gratification. He gave volunteers a choice: $20 now or more money later.
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At one end of the spectrum were people who agreed to take $21 in one month’s time; to essentially wait a month in order to gain just $1. In economics speak, these people valued tomorrow almost as much as today and therefore they had no problem delaying gratification.
NOW
1 month
$68
Low value of future money
$20
$21
High value of future money
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HRD12.00
HUMAN RESOURCES DIRECTOR
HUMAN RESOURCES DIRECTOR HUMAN RESOURCES DIRECTOR MAGAZINE (HRD) IS AUSTRALIA’S ONLY MAGAZINE WRITTEN FOR AND TARGETED PURELY AT THE MOST SENIOR HR PROFESSIONALS (CHRO’S & HR DIRECTORS) AND TOP CORPORATE DECISION MAKERS. With seats secured at the executive table, HR Directors are now looking to retain their positions and justify why they need to be there. To do so, they are required to have a comprehensive understanding of business and business strategy, while also carrying out their more traditional HR requirements. Human Resources Director Magazine concentrates on the real issues and challenges facing the HR professional and the Industry, with in-depth features and analysis of what really matters. HRD also features high level case studies, international and local profiles, interviews with HRDs and industry leaders from around the globe as-well-as leading news makers in the field.
VISIT WWW.HCAMAG.COM TO SUBSCRIBE TODAY ES DIRECTOR HUMAN RESOURC ES DIRECTOR HUMAN RESOURC
AUSTRALIA HR AWARDSN FINALISTS REVEALED HUMAN RESOUR CES DIR ECTOR
HCAMAG.COM ISSUE 12.7
CHANGE MANAGEMEN FLIGHT CEN T TRE LEARNS FRO PAST MISTAKEM S RIDING THE PEAKS – AND THE TROUGHS SHELL OIL’S JOHN HOFMEIS TER REW TRENDS 2014ARD /15 ROAD AHE OR DEAD-E AD ND?
Global expe local ex rience,
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F HR can How low HO O W S ’ yoTuHEgWoH?O
T S I L HOT 2013 Flight Centre learns from past mistakes
tions and Despite good inten etimes som careful planning, s and corporate strategie work. not projects simply do with Such was the case ge initiative, Flight Centre’s chan ctor asks Dire HR Full Throttle. g what went wron
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involvement you outline your HR Director: Can you have at – what role did with Flight Centre the company? Centre as a
given to Flight the in-house name ed in late Full Throttle was s restructure introduc the muchCentre’s busines d in 2005. During y culture 2004 and cancelle , unique compan vaunted Full Throttle ing external management introduc was diluted by to outsiders. jobs e giving executiv for key consultants and failure is still palpable made, the of The rawness mistakes hide behind the as a key players. Rather than failure the embraced the company has has shared its its history, and component of Family, Village, in a book titled e executiv tumultuous ride Centre by former Flight Tribe, authored Director about a . She chats to HR Mandy Johnson on the company’s brave – decision compelling – and part to ‘reveal all’.
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I started with Flight Mandy Johnson: few stores, really they only had a travel agent when ty. I rejoined myself through universi as a way to fund a few years. I g overseas for made the them after travellin of stores and then managed a couple nce and telling drunk at a confere d and mistake of getting Flight Centre recruite way the that the CEO two weeks later, crap. He rang me trained people was me. Instead he was going to sack HR, then I and I was sure he so much about knew I if that told me recruitment and company’s first could set up the
there – that’s what all our mistakes in manuscript We need to have us”. In fact, the original in the rare has really shaped myself all’ that I found was so ‘warts and some of the the publisher censor position of having too ‘out there’, they thought it was content, because for it to run. Centre was happy even though Flight
recruits handed out to new HRD: The book is done? – again, why is this at Flight Centre growing organisa
s rapidly MJ: One of the problem own values and to stay true to their tions face is how where they have keep that sense of philosophies, and d this book as a Centre identifie a way for come from. Flight tool for its people, really valuable cultural past mistakes yet connect g s. Or as them to avoid repeatin founding pioneer the of spirit put it, “We them with the Abesser Photography training centre. Ogilvie so aptly operation was Photo Credit: Deborah executive Joell later, after that story about our Eighteen months king around senior we all know the he to quit to go backpac zled into have to make sure a veterinarian before successful, I tried was bamboo Skroo was w but someho crackpot vet”. South America d Flight Centre’s Flight Centre. the UK to co-foun started to the over heading a director of instead. I became Throttle? operation there t-ever, before Full younges outline y’s compan HRD: Can you UK operation, the embark on this HR head. a as the national Why did Flight Centre ation program? returning to Australi Skroo now restructure/transform company? campaign, which involved with the The Full Throttle f***-up”, started two books MJ: HRD: Are you still Centre’s greatest Centre I’ve written in 2004. refers to as “Flight MJ: Since I left Flight War for Talent] improvement project and Winning the simple efficiency had grown business. as a [Family, Village, Tribe l year, revenues lting financia g/consu the 2003/4 own speakin and head and I now run my really leaves In virtually flatlined that no one ever but profits had joke 24%, standard a out. every d outcomes.” Yet it’s in size numbers had blown colleagu y the require es to deliver Flight Centre doubles HR er its office staff part of the ge to deliver of kilter, the compan the organisation. out whenev n and g, al operatio es tod be a challen the essenti continu promise always changin it who s are an With Yetnts will always up getting HR director five years so it’s rs of l consulta 2013,I end membe externa doing, them. “I think there some d ofyears. liketoall what I’mIn expecte talked three ip team; head count, what’sover Centre’s y toin savings e leadersh needs intersect with [Flight regularl executiv $100m workload and HR between ‘Skroo’ Turner January prize ofteover tension after be a tion team theyacontribu e friends areproposi a call from Graham little bit like Charles executiv a they ]. I’m still are that and alluring director an CEOs g plans c was most managin ask for downgrade strategi This and athat profit esy issued founder and now development of the with. much as they always compan -making in so theprocess slide when Oliver ’ decision s people I worked share 2005 the of Dickens busines largest the s. its many with involved in of a busines and suffered rcial life cement the Owens says. announ the comme onhy’ onals showcases to the more,” impact ion professi biograp that ny HR connect listing. ‘hot’ ‘compa 1995 strong who list of l for a with the ahead didhave a since its understand the goThis a’s HR industry more, HRD: It’s unusua Whythey Furtheris. they Centre decided tomovers andone: shakers of Australi months, all, yet your book at of the organisation;Flight n in the last 12 to be warts and the M&As to implement stage price, such a book? began share and ate on heartbe come to our attentio P&L, or those of haveabout is theproject fill rcials, as he h, the Flight Centre cooper Skroo’s onto our pages role to to bring it comme es approac tough made a initiativ it’s aded reflects In short,10 priority whether they’ve sharing. leaders have spearhe MJ: This really tionents. and divestm These corporate cost savings. bottomalmost total informa quick ive others. his for ely impress future ely. d famous effectivsalary or directors are immens ive projects, achieve down to discuss their the best of him in hisHR to “Many to frequen Anyone who’s tried ed diversity, driven usedinnovat travel aretly hours, ed readers results, embrac Our very longHRD: Turner ends up talking work ivity, or navigat working as global line career path with commit team histed, l ass well stories’ when it costs while upping product in regiona with the rest of get involved and ‘succes recognised with underst and open-plan office, rmation difficult changes. Some have been says David Owens, He simply doesn’t convers.ations,” comes to transfo working management away around them. ng anything Throttle failed.es; others have not. s. “Often Full , HR Partner want privacy discussi this year’s list programs, but g director ed? hed him differen zones, they accolad managin why anyone would onals profiled in t time approac professi outline what happenThe HR g in Can you when I first people but the ng ‘more’. operatin savings, of capable cost one In the same way, with are very the product unquestionably deliveri “Don’t write energy levels, book he told me, high y. MJ: No one minded ng their are tend to have about writing this the companare very good at mobilisi and te books that glorify communicators | 17 those sickly corpora NOVEMBER 2013
profession? shaker in the HR high achievers HR Who’s a mover and cases Australia’s HR Director show ths mon 12 from the past
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SUBSCRIBE FOR 12 MONTHS USING THE CODE HRD1207 BEFORE 18TH AUGUST 2014 AND RECEIVE $30 OFF THE SUBSCRIPTION PRICE HRD MAGAZINE WINS GOLD MEDAL Judges’ comments: “Extremely well-executed magazine – Sharp, smart, thorough and engaging. Writing is focused throughout. The Special Reports contain to-do lists and sidebars add relevant and actionable detail” HCAMAG.COM
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LAST WORD / BENEFITS
At the other end of the spectrum were those who were willing to wait a month but only if they received up to $68, a premium of $48 from the original offer – meaning the value these people put on the future (and having money at that point) was dramatically less than the value they placed on today; when they wanted something, they wanted it now. One of the $21 people was, tellingly, an MD-PhD student. “If you’re willing to go to university for eight years, you’re really willing to delay gratification,” said Glimcher.
THE BRAIN IS THE KEY It’s not just down to types of personalities; there are some interesting things going on inside people’s brains as a result. During a second stage of the study, scientists used functional magnetic resonance imaging machines to map brain activity during the subjects’ decisionmaking. For the ‘spend money now – to hell with the consequences’ people, activity in the area of the brain that processes immediate gratification (the ventral striatum and the medial prefrontal cortex) plunged when they were offered cash a week or a month later. For the ‘invest in your retirement and save for a rainy day’ type people, activity in those areas of the brain remained constant, regardless of when the cash reward was offered. People’s brains work differently when it comes to thinking of their future. Sometimes, no amount of explaining the benefits or importance of saving for your retirement, taking a lower salary in favour of a higher bonus, attending a training course, investing in share schemes, doing anything now for a future benefit, will work.
A LOST CAUSE – OR IS IT? Amanda Schaake is an independent communications consultant and award-winning senior communications leader specialising in complex change and employee engagement. Recent clients include Fonterra Cooperative, IAG New Zealand, Allied Irish Bank and Lloyds Banking Group. Contact her at amandaschaake@ gmail.com
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How do we engage with these impulsive people if expensive education campaigns or the usual communications and engagement activities don’t work? They know they should attend the training course or make an effort to understand the new business strategy, but they won’t, because what’s happening right now is far more important. Trying to convince people to invest more in their super, for example, is like asking them to give their hard-earned money to a stranger. Here are some ideas to help your employees see the point of future benefits: • GIVE THEM A START POINT, AN END POINT AND A DEADLINE FOR THEM TO FIND THEIR OWN WAY THERE Lasting change can be achieved when people
are allowed to find their own solutions. Just as I will no doubt purchase the iCandy pram, use it for a few months and then gratefully revert to my husband’s recommended stroller, instant-gratification-seeking colleagues will work through the change curve under their own steam and often only need a little support from their line managers. • COMMUNICATING FUTURE BENEFITS IS A WASTE OF TIME They understand the benefits; they just don’t see the value. Help them see the value of the future in the here and now by spelling it out in today’s terms. For example, determine what their weekly superannuation payment is in today’s money. Take the employee through an exercise to get them to work out what it would be like to live off the proceeds of that contribution come retirement. A reality check can help with their brain-training. • HAPPY COWS PRODUCE MORE MILK Farmers know it and we need to learn it. Oxytocin, the ‘love drug’ chemical that is released when we’re happy, fools our brains into being able to think long-term. An employee whose health and wellbeing needs are being met is more responsive to planning for their future. Engage with your audience at a time when stress levels are not through the roof and you’ll get a better response. • REWARD LONG-TERM THINKING AND PLANNING Providing an immediate incentive for plans, training or meetings completed ahead of schedule can help. Likewise, early-bird incentives can flick the switch needed for our ‘spend now, repent at leisure’ friends. If we are serious about being responsible businesses and looking after our greatest asset, we need to come up with ways to give people that instant gratification when the actual pay-off might not happen until the future. Any education or engagement campaign will need to be well thought out and take time. Teaching people willpower and patience, and that deferred gratification is just as important as the instant kind, will take longer than many of us dare to imagine. References: Proceedings of the National Academy of Sciences, scientists led by psychobiologist B. J. Casey of Weill Cornell Medical College, August 2011; Desire for Instant Gratification May Be Hard-wired, by Rick Nauert, PhD, senior news editor, Psych Central, September 2011.
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