Human Resources Director 13.08

HUMAN RESOURCES DIRECTOR HCAMAG.COM ISSUE 13.8

ASIA-PACIFIC HR REPORT WE ASKED, YOU SPOKE: PRIORITIES CHALLENGES OPPORTUNITIES EXECUTIVE SUPPORT AND MORE! HEAD ABOVE WATER NEW EXECUTIVE TRANSITIONS

HRD13.08_Cover+spine_v3_SUBBED.indd 2

SURVIVAL GUIDE DEALING WITH TOXIC CEOS

SO CLOSE YET SO FAR AUSTRALIA’S CULTURAL DIVERSITY FAILURE

31/07/2015 1:48:19 PM

IFC.indd 1

31/07/2015 4:49:26 AM

EDITORIAL www.hcamag.com AUGUST 2015 EDITORIAL

SALES & MARKETING

Editor Iain Hopkins

Marketing & Communications Manager Lisa Narroway

Journalists Chloe Taylor Hannah Norton Production Editors Roslyn Meredith Carolin Wun

ART & PRODUCTION Design Manager Daniel Williams Designer Marla Morelos Joenel Salvador Cess Rodriguez Traffic Coordinator Lou Gonzales

Business Development Managers James Francis Steven McDonald Lisa Tyras

CORPORATE Chief Executive Officer Mike Shipley Chief Operating Officer George Walmsley Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil

EDITORIAL ENQUIRIES iain.hopkins@keymedia.com.au

SUBSCRIPTION ENQUIRIES tel: +61 2 8011 4992 • fax: +61 2 8437 4753 subscriptions@keymedia.com.au

ADVERTISING ENQUIRIES james.francis@keymedia.com.au steven.mcdonald@keymedia.com.au lisa.tyras@keymedia.com.au

Key Media Regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 www.keymedia.com Offices in Sydney, Auckland, Denver, Toronto, Manila

Human Resources Director is part of an international family of B2B publications and websites for the human resources industry HRD MAGAZINE CANADA iain.hopkins@keymedia.com.au T +61 2 8437 4703

What price passion?

I RARELY GET goosebumps. You know, those moments when your hair stands on end. I guess I’m just not a goosebumpy sort of person. Some movies will do it. Some music. Some people.

Some inexplicable moments in time. But goosebumps and ‘work’ are not natural partners.

However, it did occur this month. I was chatting to Anne Paredes, HR director at a not-for-profit, the Royal Institute for Deaf and Blind Children.

As she was telling me about the work her organisation does, her passion was contagious. It was impossible not to be swept up by the stories she told about kids who need a hand. Obviously, passion is something of a ‘trump card’ that HR in most NFPs can pull out: usually it’s the passion of the volunteers and workers that manages to overcome any perceived shortcomings in terms of remuneration, benefits or resources.

As if to reinforce the fact that many traditional notions of what motivates workers – such as remuneration – do not count for everything, research has established that NFP workers are essentially happier and more satisfied than their total workforce equivalents, with 58% saying they are extremely satisfied or very satisfied with their current employer, compared with 51% of total workforce employees.

Where do HR professionals draw their passion from? Is the source of passion intrinsic, extrinsic or a mix of both?

Can it be defined?

It got me thinking about the role passion plays in the engagement of employees in other sectors. It’s on a totally different scale – nothing I do changes people’s lives – but I know I’m passionate about my job: a magazine would not be produced every month if I wasn’t.

Where do HR professionals draw their passion from? Is the source of passion intrinsic, extrinsic or a mix of both? Can it be defined? Is it one element of a job in particular or a mix of many components? The majority of HR professionals I interview talk about the satisfaction they feel in seeing others succeed: watching their careers develop, observing the steps they take as they become successful in their own right. If only we could bottle passion and make it self-sustainable – it would possibly result in many of the world’s problems being resolved.

HRD SINGAPORE hrdmag.com.sg HC AUSTRALIA ONLINE hcamag.com

Iain Hopkins, editor

HRM NEW ZEALAND hrmonline.co.nz Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as HRD Magazine can accept no responsibility for loss

01_Editorial_SUBBED2.indd 1

www.hcamag.com

1

31/07/2015 1:13:16 PM

AUGUST 2015

CONNECT WITH US Got a story, suggestion or just want to find out some more information?

HRDirector_au

CONTENTS

+Hcamag HumanResourcesDirector

26

UPFRONT 01 Editorial

Not-for-profits thrive on the passion of their employees. What role does passion play in other sectors?

04 The data

Development spend, leader profiles and the risk of burnout: Leadership insights 2015

06 News analysis

FEATURES

COVER STORY

14

ASIA-PACIFIC HRD REPORT

HEAD ABOVE WATER: NEW EXECUTIVE TRANSITIONS

How can employers ensure new executives not only have their heads above water but are on their victory lap by the time their first appraisal rolls around?

38

PEOPLE

WISH YOU WERE HERE

56 Head to head

What are employers doing today to decrease the likelihood of ‘psychological injury’?

10 Profile

HRD chats to Amanda Jackson, HR director at LG, about building a company that thrives on its culturally diverse workforce

42 Busting myths in the NFP sector

HRD chats to Kate Cowman, senior business partner at LinkedIn, about the company’s rapid growth

2

PEOPLE

FEATURES

HRD asked over 3,000 HR professionals in the Asia-Pacific region for their opinions about the industry

54

Despite Australia’s geographic proximity to Asia, Australian organisations have largely failed to nurture and harness employees with Asian heritage – especially at leadership level

Despite tight budgets and often limited resources, the pros outweigh the cons in not-for-profit organisations – but that’s not to say HR practitioners in Australia’s 45,000 plus significant NFPs have it easy. One HRD is keen to clear the air FEATURES

7 TRUTHS FOR DEALING WITH TOXIC CEOS

Toxic CEOs can derail your career, flatten your enthusiasm, and even make you sick. Cindy Tonkin provides seven ways to deal with toxic bosses

HCAMAG.COM CHECK IT OUT ONLINE

www.hcamag.com

02-03_Contents_SUBBED2.indd 2

31/07/2015 3:34:36 PM

02-03_Contents_SUBBED.indd 3

31/07/2015 3:26:25 PM

THE DATA

AUGUST 2015 LEADERSHIP PAY

LEADERSHIP PULSE 2015

25%

20%

Australia’s mid-sized business sector – identified as businesses with annual turnover between $5m and $250m – employs almost a quarter of working Australians. What challenges are these business leaders facing?

THE BANKWEST BUSINESS Leadership Report has revealed the majority of the nation’s mid-sized business leaders are at risk of burnout.

A quarter admit ‘most’ leaders in their business are at risk, while 44.4% fear ‘some’ of their leaders are exposed to the risk.

The report also found that the average midsized business budgets about 25.7% of its annual salary spend on leadership roles, with more than two in five (41.9%) paying leaders at least $500,000 and 21.1% paying leaders $1m or more.

Half of those surveyed planned to up their

leadership spend in next 12 months.

However, the report showed higher pay was some way down the list of strategies employed by businesses to retain leaders. Scheduling regular breaks is one strategy used by mid-sized businesses (35.4%), as was providing days in lieu of overtime (33.1%). Maintaining open communication channels (32.9%), encouraging healthy eating and exercise (29.2%), and providing rostered days off (27.6%) were other commonly employed strategies.

Most effective, however, were self-development opportunities. Here are some report highlights.

LEADERSHIP SPEND Approximately how much has your business budgeted for leadership roles (ie management level and above) in the next 12 months, including both existing employees in leadership positions and potential new leaders?

$912,888

Approximately what percentage of your business’s overall annual salary spend does this represent?

40%

$750,000

$548,939 20%

$250,000

0

4

$354,234

5% 4.3 1.8

0

More than $2m

$1,500,000– $1,999,000

5.4% Increase

49.8%

Not sure

DOES YOUR BUSINESS PLAN TO INCREASE OR DECREASE ITS BUDGET FOR LEADERSHIP ROLES (IE MANAGEMENT LEVEL AND ABOVE) IN THE NEXT 12 MONTHS?

6.2%

25.7%

21.4%

Stay the same

38.5%

10%

0%

Smaller mid-sized business

10%

31.7%

30% $500,000

15%

Decrease

50%

1M

Which of the following pay bands does the highest leadership salary in your business fall into?

Larger mid-sized business

Overall

Smaller mid-sized business

Larger mid-sized business

Overall

Larger mid-sized businesses are more likely than smaller mid-sized businesses to increase their leadership spend in the next 12 months (54.7% vs 46.9%). Professional services firms (55.9%) have the greatest intention to increase their leadership spend, followed by wholesale trade businesses (53.5%).

www.hcamag.com

8.8% 04-05_The Data_SUBBED2.indd 4

31/07/2015 3:25:57 PM

More than two in five (41.9%) respondents say the highest leadership salary in their business falls into the $500,000 or higher band. This includes more than one in five (21%) who say that the highest leadership salary in their business falls into the $1m or higher band.

20.8 18.9 16.5 15

9.9 7.6 5.3 4.3

$1,500,000– $1,999,000

$1,000,000– $1,499,000

$500,000– $999,000

$400,000– $499,000

$300,000– $399,000

$200,000– $299,000

42.4

Smaller mid-sized business

39.0

Larger mid-sized business

41.1 Overall

Not sure

KEY CHALLENGES

LEADER PROFILES Approximately what is the average age of the leaders within your business?

Less than $200,000

Approximately what proportion of the leaders in your business are: 40%

38.0%

35% 30%

Generation X (1966-1980)

25% 20% 15% 10% 5% 0%

22.1% Generation Y (1981-1990s)

36.0% 33.1% 32.5% 30.5% 28.8% 28.6%

31.0% Baby boomers (1946-1965)

What are the key challenges you face as a leader in your business in the next 12 months?

8.8%

Pre-boomers (1945 and older)

26.1% 25.3% 19.6% 16.9% 14.2% 3.1% 0.4%

Managing workload Maintaining work-life balance Improving work processes Recruitment and retention of staff Current economic environment Dealing with internal politics Driving change in the organisation Maintaining positive workplace relationships Managing employee expectations Regulatory change Lack of funding Interest rate fluctuations Mobilising knowledge No foreseeable challenges Other

www.hcamag.com

8.8%

5

Pre-Boomers (1945 and older):

04-05_The Data_SUBBED2.indd 5

31/07/2015 3:26:00 PM

UPFRONT

NEWS ANALYSIS

SO CLOSE, YET SO FAR Despite Australia’s geographic proximity to Asia and the increasing political and business impetus to build relations with neighours in this region, Australian organisations have largely failed to nurture and harness employees with Asian heritage – especially at leadership level THREE YEARS AGO, talk of the Asian Century dominated public discourse and mainstream headlines. Prime Minister Julia Gillard launched the Asian Century White Paper with great fanfare, but she was not the first to advocate this approach to future prosperity. Over the past two decades, every newly elected government has released an ‘Asia paper’ of some sort – white papers, green papers, in addition to think tanks and thought leadership groups. However, once the announcement is made and the paper prepared, not much else happens.

Yet as each year ticks by and it becomes more and more apparent that Australia’s future economic prosperity is tied to Asia, the onus is increasingly falling on, if not solely government, then certainly the wider business community to embrace this reality.

“I think the first thing both the government and the business community need to acknowledge is that in this globalised, interconnected world that we now live in – and increasingly so with social media – people communicate and do business across borders more so now than ever before,” says Dai Le, founder, DAWN. “Cultural and communication barriers are so blurred. From

6

my perspective, it is just common sense to look at our workforce, our population, and harness those talents, groom them, and skill them up, for they will add value to our businesses and institutions in the near future.”

Le, a former ABC award-winning journalist and one of Westpac-AFR’s 100 Women of Influence, is on a quest for workplace equality and increasing culturally diverse talent in leadership teams across all sectors.

Her organisation, DAWN, is an industry body that promotes culturally diverse leadership. Le is determined to see an increase in diversity beyond gender in the C-suite, with Asian Australians being her first target market. Research suggests there is plenty of work to do.

While Australia is well positioned to capitalise on the opportunities the Asian Century has to offer, the Asian Century White Paper and the Diversity Council Australia (DCA) identified a gap in representation of Asian talent in senior leadership positions.

DCA reports that 9.6% of Australians have Asian cultural origins, versus only 1.9% of ASX 200 senior executives.

To compound matters, Le is convinced the 1.9% actually work in organisations

with origins in Asia, not Australia. “The percentage of Asian-background staff in leadership roles, I would argue, is much lower than 1.9%. In my opinion this is appalling,” she says.

However, calling out the disparity is one thing; identifying, harnessing and nurturing the many talented Asian Australians waiting in the wings, and encouraging them to aim high, is another.

“We want them to go for that CEO position, for the executive role on a company board, and so forth. It takes two to tango. That’s what DAWN aim to do. That’s the purpose of our existence – encourage people to give it a go and not to be disparaged,” says Le.

www.hcamag.com

06-09_NewsAnalysis_SUBBED.indd 6

31/07/2015 1:39:36 PM

ROADBLOCKS TO SUCCESS

Why does it matter?

Asian markets, both in Australia and in the region, have enormous significance for Australia’s economy. “Australia’s two-way trade in goods and services totalled more than $600bn or 41% of GDP in 2012, and eight out of 10 of Australia’s 10 largest trading partners are in Asia,” says Lisa Annese, DCA’s CEO. Closer to home, Australia’s ‘multicultural market’ has an estimated purchasing power of over $75bn p.a., with a higher-than-average disposable income. “Clearly it is in all our interests to adopt a culturally responsive approach to business strategy and therefore talent management – indeed the benefits of doing so for corporate performance, innovation

and access to new markets are well established,” adds Annese.

Le agrees, but concedes that any ‘tipping point’ for action will likely only come when it impacts on the bottom line for business. “I think social media and technology will force many institutions to rethink the way they operate,” she says. “Women, for example, are increasingly heading out on their own and making their mark in the business world. They are finding more satisfaction and are creating a whole different economy to what we have been used to. And eventually, these women, and entrepreneurs, will be offering products and services that will align with the values of the masses, and old large institutions will lose their market dominance.”

DCA identified the following barriers that are locking Asian talent out of Australian organisations: • Cultural bias and stereotyping: Only 18% of Asian talent feel their workplaces are free of cultural diversity biases and stereotypes. Many regularly experience bias and stereotyping, including about their cultural identity, leadership capability, English proficiency, and age. Women from Asian backgrounds experience a ‘double disadvantage’.

• Westernised leadership models: 61% feel pressure to conform to existing leadership styles that are inherently ‘Anglo’, eg overvaluing self-promotion and assertive direct communication, while undervaluing and misinterpreting quiet reserve, deference and respect for seniority.

• Lack of relationship capital: Only one in four has access to mentors or professional networks and even fewer have access to sponsors; similarly low levels feel included in workplace social activities.

• The case for culture not understood: Only 15% strongly agree their organisation leverages its workforce cultural diversity to better service clients. Organisations often fail to fully grasp the strategic value of Asian markets, capabilities and talent for Australian organisations operating in the Asian Century.

Source: Cracking the Cultural Ceiling – Diversity Council Australia

Moving from talk to action In Australia, Le is very aware that many organisations and institutions are now focusing on the need to harness the talent of their Asian Australian staff in particular because of the ‘doing business in Asia’ push.

She argues, however, that this is short-term thinking.

“It’s not just about doing business in Asia, or training your ‘Western staff ’ to know how to do business in Asia. It’s about the sustainability of your business into the future. It’s about

www.hcamag.com

06-09_NewsAnalysis_SUBBED.indd 7

7

31/07/2015 1:39:39 PM

UPFRONT

NEWS ANALYSIS LOCKS AND KEYS TO CULTURAL DIVERSITY TALENT LOCK 1: CULTURAL BIAS AND STEREOTYPING TALENT KEY 1: BUILD CULTURE QUOTIENT Build your leaders’ ability to respond to workforce issues and to do trade and commerce in the Asian Century.

“Cultural bias actually required me to work increased hours, and work harder to overcome preconceptions and prejudices that exist, in order to advance in my career.”

• Get ‘culture conscious’ – discard colour-blind talent management and business strategy approaches that ignore cultural differences, and use an inclusive approach which incorporates new and different ways of interacting and working into the way business is done.

• Encourage leaders to ‘prototype instead of stereotype’, ie understand common approaches among Asian talent, remembering there are always individual differences.

• Educate leaders about the complexity of cultural identity, and about cultural bias, both conscious and unconscious – when it can occur (eg sourcing, promoting, allocating clients, etc) and actions to navigate and minimise this.

• Educate about the compounding bias that can occur for women from Asian cultural backgrounds (eg bias associated with culture, gender, family responsibilities).

TALENT LOCK 2: WESTERNISED LEADERSHIP MODEL TALENT KEY 2: RECRAFT LEADERSHIP MODEL Promote and value a broader view of ‘the effective leader’ – one that recognises different types of leaders, skill sets and demeanours can be of organisational value.

“The expectations of the existing leadership team (mostly white, Anglo-Saxon males) currently don’t allow for the advancement of those from other cultures. They need to recognise that effective leadership styles are not necessarily based on white male Australian stereotypes.”

• Critically review your leadership model and succession planning criteria and assessment to ensure these do not contain statements that unintentionally filter out Asian talent.

• Educate decision-makers and recruiters about avoiding cultural bias, and on the importance of valuing skills and experience gained in Asian regions.

• Partner with specialist recruiters or general recruiters who include Asian talent in their candidate offerings.

• Diversify performance feedback and assessment approaches to ensure these are responsive to any cultural differences in communication and leadership styles, and revisit the emphasis placed on behavioural-based interviewing.

• Monitor your learning and development metrics to ensure emerging Asian leaders access career development opportunities at equivalent rates to non-Asian colleagues.

“It’s not just about doing business in Asia, or training your ‘Western staff ’ to know how to do business in Asia. It’s about the sustainability of your business into the future” Dai Lee recognising the unique resource we have in Australia. It’s not just the iron ore or minerals but the people we have, and in particular the culturally diverse population – and for me the Asian Australian population. There are so many young Asian Australians who are high achievers. We need to tap into them, beyond just seeing the business opportunity and the bottom line. Businesses and organisations

8

can really help shape Australia’s future and leadership.”

Sadly, Le concedes that too many human beings are inherently racist. “Many of us, even if on a subconscious level, judge a person because of the colour of their skin, the way they look, the way they talk, the colour of their hair, and so forth. It’s about acknowledging those moments when we have them, owning them

and then dealing with that internal dialogue.”

She suggests some tips for business leaders who are interested in not just talking about the need to broaden their diversity ranks of leadership but actually doing something about it: 1. Be proactive and look within your organisation and identify the quiet ones; they are probably working diligently away and have delivered on all the outcomes you have asked for.

2. Provide them with a mentor; or better, ‘sponsor’ them.

3. Ask these suitable candidates if they would like the opportunity to take a leading role.

4. Make sure your leadership trainers are culturally trained; better still, see if you can find one who is of a culturally diverse background.

5. Be aware of your unconscious bias, and counter balance with a diversity of input.

6. Be constantly open to opportunities to learn about the culture that your staff came from.

7. Create an inclusive workplace.

Next steps As seen by the lead taken by companies such as IBM (see box p.9), Deloitte and Commonwealth Bank, there is growing recognition that Australian businesses need to take action.

June 1–5 saw the launch of the inaugural China Australia Millennial Project (CAMP) Summit, where young leaders aged 18–35 from Australia and China formed cross-cultural think tanks and pitched to panels of judges their creative solutions to challenges facing both countries.

Westpac’s think tank, titled ‘Global Talent’, shared its early findings around the value of fostering a diverse and inclusive workforce to manage greater interactions and two-way customer flows in an Asian Century.

Alice Wong, Westpac’s head of Asian leadership, says companies wishing to engage across Australia and Asia retain a competitive edge by not only investing in the development of leaders with Asian cultural origins but also developing leaders that have spent part of their careers in Asia and understand the cultural nuances.

www.hcamag.com

06-09_NewsAnalysis_SUBBED.indd 8

31/07/2015 1:39:42 PM

LOCKS AND KEYS TO CULTURAL DIVERSITY Talent lock 1: Cultural bias and stereotyping

18%

feel pressure to conform to existing leadership styles in Australian organisations

“It takes twice the time for Asians to get to leadership positions compared to local-born, as Asians don’t have sponsors. Even if Asians sponsor other Asians, they are classified as biased – so then other Asians do not stand up to be sponsors.”

Talent lock 3: Lack of relationship capital

1 in 4

Asian talent has a mentor or professional network, and even fewer have a sponsor (16%)

TALENT KEY 3: BOOST RELATIONSHIP CAPITAL Make it clear from early career stages that relationship capital is important for career progression.

of Asian talent feel their workplace is free of cultural diversity biases and stereotypes

Talent lock 2: Westernised leadership model

61%

TALENT LOCK 3: LACK OF RELATIONSHIP CAPITAL

• Ensure Asian representation on your key promotion interview/assessment panels to enable championing of Asian emerging leaders as well as present an Asian perspective.

• Increase the visibility of Asian leaders in your organisation to demonstrate that career progression is possible, and enable emerging and established Asian leaders to connect.

• Encourage work socialisation that involves eating (or eating and drinking), rather than only drinking alcohol.

• Represent talent from Asian cultural backgrounds in your organisational communications, and encourage leaders to publicly support this employee segment.

• Provide challenging and high-visibility development and ‘stretch’ opportunities for Asian leaders and emerging leaders, as this is a key career motivator.

• Ensure active sponsorship occurs for Asian talent, to boost the visibility of emerging Asian leaders and ensure someone is advocating for them in promotion discussions.

• Encourage leaders to reflect on the diversity and inclusiveness of their professional networks, including their protégées.

TALENT LOCK 4: CASE FOR CULTURE NOT UNDERSTOOD TALENT KEY 4: CREATE A COMPELLING CASE FOR CULTURE Use the business case in this report to build understanding and engagement around the importance of Asian talent and Asia capabilities for your organisation in the Asian Century.

Talent lock 4: Case for culture not understood

15%

strongly agree their organisation leverages its workforce cultural diversity to better service clients

“When you consider Australia’s place in the Asia century and the facts about Asia, you simply cannot ignore them: 60% of the world’s population currently lives in Asia. Moreover, Asian economies are expected to account for almost 50% of global economic output by 2015,” Wong says. “There has never been a more important time to foster Asia-focused leadership in our younger generation.”

Le maintains that HR has a critical role to play. “You are building an organisation, and a team – but hopefully not clones of yourself,” she says. “Australia is located within the Asia-Pacific region, and Australia’s political and business leaders need to acknowledge this. Once we have agreement on this, then we can see the importance of nurturing and harnessing staff, especially those from Asian heritage, to help develop and build relationships within the region.

“I just can’t seem to get the firm’s attention on the growth of the Islamic finance market in Asia. Perhaps it is perceived as a Middle Eastern market when in fact Malaysia plays the most significant role.”

• Identify ways to utilise your workforce’s Asia capabilities strategically – culturally diverse and capable leaders can assist organisations to broaden their strategic perspective, identify and enter new local and global markets, and achieve business goals in diverse business settings.

• Invest in workforce analytics – measure (Asian) cultural diversity in your workforce and markets, as well as workforce Asia capability.

• Benchmark your findings to assess how well your organisation is capitalising on culture (eg Australian community, your industry, key labour market pools, client/customer base).

• Identify job levels and organisational areas where Asian talent drops off significantly, and target talent development there to fast-track high-potential Asian talent into leadership roles.

• Develop an employee value proposition for Asian talent through focusing on key career drivers (eg meaningful and challenging work, inclusive leadership models).

• Use diversity champions to publicly communicate your organisation’s leadership vision about Asian cultural diversity and capability – but ensure you avoid breeding cynicism, by encouraging leaders to go beyond ‘talking the talk to walking the talk’.

TAKING THE LEAD: IBM For the last four years, as part of a global program, IBM Australia has dedicated each May to running an initiative called Cultural Adaptability Awareness Week, in order to support managers and employees in their cultural competency. This cultural adaptability initiative aims to promote awareness, knowledge and sensitivity to different cultures, to enhance the practice of cross-cultural teaming.

Kathleen McCudden, HR director, IBM Australia Cultural Adaptability Awareness Week involves a range of educational activities, including sessions and New Zealand on such topics as ‘How culture impacts business and you’ and ‘Working with colleagues and clients from all over the world’. Throughout the month various online resources and tools are promoted to cultivate deeper cultural knowledge and insights. Managers and employees are encouraged to develop their cultural profile via an online tool. This can be particularly useful for managers leading diverse teams, including those from an Asian cultural background, as the tool provides insights on how to successfully work with people from a range of different cultures. *Source for all boxouts: Cracking the Cultural Ceiling – Diversity Council Australia

www.hcamag.com

06-09_NewsAnalysis_SUBBED.indd 9

9

31/07/2015 1:39:45 PM

PROFILE

AMANDA JACKSON

BUILDING ON SIMILARITIES, NOT DIFFERENCES

LG is known for its company slogan ‘Life’s Good’, but how does this translate to the employee experience? HR director Amanda Jackson chats about having cultural diversity as a core part of the company’s DNA 10

www.hcamag.com

10-11_Profile copy_SUBBED.indd 10

31/07/2015 1:38:51 PM

LG – founded as GoldStar in 1958 – produced Korea’s first radios, automatic telephones, black and white TVs, refrigerators, washing machines and air conditioners.

Rebranded as LG Electronics in 1995, it now has subsidiaries in over 80 countries globally, employing some 83,000 people. It is, by all definitions, a global company.

“No matter where you go in Southeast Asia or in Europe, or here in Australia, LG is everywhere – the moment you get off the plane it’s there,” attests Amanda Jackson, HR director for LG’s Australia and New Zealand operations.

Building a multicultural organisation Although local operations are reasonably small – 290 employees in Australia/New Zealand – it’s the company’s global reach that Jackson has been particularly mindful of in her efforts to build a truly multinational and culturally diverse and aware organisation.

“It’s interesting. When people talk about culture, a lot of the time the focus is on the differences. I prefer to concentrate on the similarities. That’s what helps to change mindsets. There are far more similarities across cultures – and every day we as a company are working across borders,” she says.

With headquarters in Seoul, LG has focused particular attention on building awareness of Korean culture. However, Jackson emphasises that she and her colleagues are dealing with

not have any immediate Korean colleagues, so we’ll have a Korean meal with them. The subsidiary president will come to that meal and we’ll talk about the Korean heritage. It becomes a significant focus in our inductions,” Jackson says.

A well-oiled global mobility program enables all employees – known as ‘foreign service employees’ – to relocate easily around the globe. Part of that program is cultural training, but it’s the executives and senior leaders who perhaps benefit most from this global presence.

Two years ago LG rolled out a program to broaden the scope of culturally diverse candidates for internal executive roles. The company runs a global assessment centre, and Jackson is a member of the steering committee. Its purpose is to move senior staff seamlessly around the world.

“We run these assessments twice a year. We invite key leaders from different parts of the globe, and they’ll come in and be assessed for leadership positions globally. An example is one of our Spanish employees who was chosen as the MD of Canada. He went to Canada for two years to develop his experience and skills, and then returned to lead the Spanish operations. Really we’re looking globally for employees who can be trained up and then be placed anywhere in the world as managing directors,” Jackson says.

“When people talk about culture, a lot of the time the focus is on the differences. I prefer to concentrate on the similarities” people from various cultures every day. “I work every day with our European and Southeast Asian colleagues. I think just about every large company today is working cross-border.”

A number of initiatives have been implemented in the local Australian offices, such as international food days on which the company celebrates the heritage of every employee (30 nationalities were represented at last count). Likewise, employee inductions revolve heavily around food, specifically Korean food. “Some interstate employees do

Current and future challenges Jackson, who has over 30 years of HR experience under her belt, with stints at Telecom, CUB and Ericsson, among many others, suggests that LG’s key HR challenge matches that of many other companies: engagement and attraction. “We continuously have to work to keep people motivated and inspired. LG does it very well because we’ve got the products that people get excited about.”

From product discounts to ‘voice of the employee’ sessions, which are run quarterly to

WORKING WITH EXECUTIVES Jackson works closely with all her executive colleagues as well as LG’s subsidiary president.

What’s the key to building a rapport with this group?

Don’t downplay your contribution. “Any HR professional must have a mindset that you are critical to your business. You’re just as important as sales or marketing, or the finance team. We’re not just here as a support function, and we must have the belief that we can add value. We do that through our conversations and understanding the executives. If you truly believe that, the right questions will come to you.”

1

2

Be prepared to go out of your way to stop and listen. “It’s about understanding the right way to engage with various executives – and they’re all very different. A marketing executive is very different to the supply chain executive. You need to be able to understand and use the same language that they use. If that means meeting people at 6.30am before they go to their sales meeting, you need to make the extra effort to do that – to build those relationships and understand their business and what their challenges are.”

3

Find your voice. “I know people often talk about HR having a seat at the table – anyone can have a seat at the table, whether you are HR or supply chain. It’s whether you have a credible voice.” give all employees a say, through to monthly business review meetings when the subsidiary president speaks to the entire business about the latest business news, Jackson says the goal is to create “an LG family”. Her next challenge is to create career paths for all employees.

Jackson says the well-known consumer brand helps the employer brand. “People are attracted to LG,” she says, adding that the ‘Life’s Good’ slogan, which the company uses globally, was created in Australia.

“The Life’s Good slogan represents the Australian lifestyle, and it’s gone right around the world. Life’s Good certainly does attract people, and that’s what we’re trying to do here as an employer – except our employees’ lives will be better than good; they’re going to be great.”

www.hcamag.com

10-11_Profile copy_SUBBED.indd 11

11

31/07/2015 1:38:52 PM

EMPLOYMENT LAW

LITIGATION

TACKLING LITIGATION Karli Evans and Rebecca Ellis present their top tips for HR professionals facing litigation IT IS every busy HR professional’s nightmare: that email in an already-overflowing inbox enclosing court documents. Your heart sinks as you realise that the litigation will chew up valuable business resources and constitute yet another unwelcome distraction from your key responsibilities. The claim, by a former employee, will consume hours of your team’s time, and the business will be looking to you to guide them down a (potentially) unfamiliar road. You will instruct the lawyers, and they will take care of the ‘legal stuff ’, but how can you put your organisation in the best possible position to achieve an acceptable outcome?

This article sets out some tips to help HR professionals navigate the complex path of employment litigation in the courts.

Tip 1: Prepare the lawyers As the HR professional leading the matter, where necessary you should brief your legal team from the word go, so that they can advise you of the strengths and weaknesses of the case from the outset. An early and pragmatic assessment of liability and risk will assist you in developing a solid case strategy for the organisation, including whether settlement options should be explored at the first possible stage, or whether the claim should be aggressively defended.

A thorough briefing, with copies of all relevant documents, including a chronology of events, will save time and costs in the long run.

The lawyers will need your input, and you may be asked to coordinate initial conversations with key managers.

12

Tip 2: Prepare the witnesses The court will usually make orders for each of the parties to file affidavits or statements. The employee’s affidavits will usually be due first, and the business will have an opportunity to file affidavits in response.

Your job as an HR professional is critical in the ‘evidence gathering’ stage. In most cases you will be the one to liaise with (or oversee) the process of coordinating the relevant witnesses and making arrangements for them to be available to give instructions for an affidavit.

This may require you to navigate issues such as pre-booked annual leave arrangements, along with operational demands, and to negotiate with ‘difficult personalities’.

The preparation of affidavits is one of the most time-consuming parts of the case and cannot be avoided if the matter fails to be settled. In fact, even if you try to postpone the inevitable, delays in case preparation can seriously prejudice the legal strategies that could be implemented by your lawyers. Take the pressure off yourself, where possible, by communicating clearly with key stakeholders about what is going to be required.

Tip 3: Managing discovery of documents It is common in all litigation matters for parties to seek the production of relevant documents. For example, in employment matters the business may be required to produce all documents that relate to the decision to terminate an employee, and to the surrounding circumstances and history.

‘Documents’ is defined broadly to include electronic and hard-copy documents. It is likely that you will need to liaise with someone in the IT area of the business regarding obtaining access to electronic documents. Your lawyers will assist you with specifics. But you will need to manage the various internal groups and ensure that everyone is willing to assist, especially because the deadlines are often tight and court timetables are not negotiable.

Finally, it is important to remember that even documents that are not helpful to the case must be discovered. Provide these documents to your lawyers as early as possible. Do not destroy any documents – destruction of documents that may be

www.hcamag.com

12-13_Legal_SUBBED.indd 12

31/07/2015 1:09:51 PM

maintaining confidentiality in relation to the organisation’s affairs, and avoiding the stress, and expense, of a trial. On the other hand, reasons not to settle may include wishing to avoid a culture in the business of potentially unmeritorious claims being settled.

Obtain authority from the business before going into the mediation, so that you are clear on what your instructions are.

Ask the lawyers to prepare a draft ‘settlement and release’ agreement, in case you do settle, so that documentation can be signed on the day.

Tip 5: The trial

You will instruct the lawyers, and they will take care of the ‘legal stuff ’, but how can you put your organisation in the best possible position to achieve an acceptable outcome? relevant to litigation is a criminal offence.

(Although, here’s a helpful tip for the future: avoid creating any potentially embarrassing emails or documents in the first place.)

Tip 4: Prepare for the mediation The court will invariably order a mediation, usually conducted by various experienced mediators who will place considerable

pressure on the parties to settle.

Prepare a risk assessment before the mediation, which is in line with your case strategy, so that your stakeholders have a clear picture of the pros and cons of settling the case, and your recommended action.

Reasons to settle may include exposure to an order for significant compensation, a need to ensure certainty of outcome,

So you’ve attended the mediation, undertaken discovery and filed affidavits, but the matter still hasn’t been resolved. It is now time for the trial.

The trial is the most time-consuming (and stressful) aspect of any claim. Your witnesses may be pulled out of the business for days on end.

It is important to communicate with witnesses about what to expect. While the lawyers will brief them on the legal aspects of giving evidence, you can support them by providing information about court sitting dates and any preparation required to be done by the legal team, and keeping them updated in relation to any key case developments. Remember that providing internal support to witnesses during the trial to enable them to focus on the case may be critical to the success of the case.

It is possible the media will attend and report on the case. Brief your media team on your case strategy as early as possible.

The big picture Litigation is tough, and employee claims are on the rise, but understanding the importance of your role as an HR professional will ensure effective teamwork with your lawyers, reduce costs (and stress) for the business, and ultimately result in a better outcome.

Karli Evans and Rebecca Ellis are senior associates and employment law specialists at Herbert Smith Freehills. They frequently assist clients with major employmentrelated litigation.

www.hcamag.com

12-13_Legal_SUBBED.indd 13

13

31/07/2015 1:10:01 PM

COVER STORY

HR SURVEY

ASIA-PACIFIC HRD REPORT

HRD asked over 3,000 HR professionals in the Asia-Pacific region for their opinions about their profession. The results provide a snapshot of the health of this ever-evolving industry, showcasing what’s being done well and what needs to improve

AS PART of our commitment to keeping you informed of the latest developments, challenges and opportunities facing HR professionals, HR Director is proud to present the 2015 Asia-Pacific HR Report. We’ve asked our readers from around the region for their views on a range of subjects, from their priorities in 2015–16 through to whether or not they feel they are appropriately supported by their executive colleagues.

What emerged from the responses – obtained via an online survey – was a chasm between the ‘perception’ and the ‘reality’ of working in HR. For example, 90% of participants believe recruiting the best talent is their number one priority, and yet just 78% of participants say they actually have the time to be involved in this task. Likewise, 70% of participants felt 11–50% of a CEO’s time should be spent on HR-related issues; in reality, this time allocation is likely only spent by 47% of CEOs. If there’s one other theme to emerge, it’s optimism. Despite the challenges – and

14

participants did not hold back on venting about their frustrations and roadblocks – a whopping 94% of participants are optimistic about the future of the profession. As HR continues to evolve in new and exciting ways, that’s good news for everyone involved in it.

SURVEY PARTICIPANTS A total of 3,147 respondents from 14 countries took part in this year’s survey, with the bulk of respondents from mid- to large-size companies in Australia, New Zealand and Singapore. Some 45% of respondents were HR director level or above.

COMPANY SIZE BY NUMBER OF EMPLOYEES 34%

33%

21% 12%

>1,000 500-999 100-499

<100

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 14

31/07/2015 3:18:45 PM

WHERE DID RESPONDENTS COME FROM? 14 countries are represented, with the bulk of respondents from Australia, New Zealand and Singapore.

BEIJING ISLAMABAD

SHANGHAI

DELHI

TAIPEI

HONG KONG MUMBAI

MANILA

BANGKOK KUALA LUMPUR HO CHI MINH SINGAPORE JAKARTA

DARWIN FIJI

BRISBANE SYDNEY

PERTH

AUCKLAND

CANBERRA MELBOURNE WELLINGTON HOBART

WHO ARE THE RESPONDENTS?

16% CHRO

29%

HR director/ VP/manager

32%

HR adviser/ consultant

7%

HR assistant/ coordinator

16% Other

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 15

15

31/07/2015 3:18:49 PM

COVER STORY

HR REPORT

KEY FOCUS AREAS Eighty per cent of HR professionals said developing their personal leadership/ management skills was their major focus over the next year. Staff L&D is also a constant theme for Australian HRDs; recruitment is the focus for HRDs in NZ/Asia HOW MUCH WILL YOU BE FOCUSING ON THE FOLLOWING AREAS OVER THE NEXT YEAR? Respondents were asked to rank a list of 14 priorities in terms of importance. Here are the overall results, from 1 (most important) to 14 (least important): 1. Developing your personal leadership/ management skills 2. Change management initiatives 3. L&D programs across your organisation 4. Other* 5. Incorporating new technologies to improve internal processes 6. Implementing new employee engagement/ rewards & recognition programs 7. Implementing new workplace health & safety initiatives 8. Executive education program for your organisation’s management team 9. Improving or revising employee benefits, including pension plans 10. Working with law firms on legal compliance

to a new building” – through to less tangible but no less tricky projects like culture change: “Our number one priority is cultural change to be more commercially focused” and “integration following a M&A”.

While there was little comment about the nuts and bolts of HR staples like recruitment or engagement, there was no shortage of more sophisticated deep dives into these areas. One HR director from Perth wrote: “Our number one priorities are competency mapping as the basis for recruitment, L&D and performance management.”

Similarly, this from a Sydney-based HR business partner in financial services: “New remuneration strategy aimed at attracting and retaining quality staff and being affordable and flexible (yet consistent & fair) for the organisation and staff.”

There was also a major focus on revamping or re-engineering performance management. “We’ll be implementing a new (improved) performance management system which will assist our organisation to deliver against our strategic objectives,” said one HR director from New Zealand.

11. Working with external parties on compliance

HR SNAPSHOT

12. Working with external parties on recruitment

How important do you think the following traits are in an HR leader?

13. Working with external parties on strategy 14. Remote/international workforce management and recruitment *‘Other’ included performance management systems, talent management strategies, succession planning and talent mapping, change management, organisational restructure, and ER issues such as collective bargaining negotiations, union relations, etc.

16

NUMBER ONE on the list should come as no surprise for long-time observers of the HR function. As the profession continues to evolve and indeed becomes more integral to business success, there are greater expectations being placed on HR professionals to deliver. The only way they can do that is by improving their own business knowledge and skill sets. The overriding theme in personal development was coaching: either becoming coaches themselves (to help others in their team, or the executive), or finding a coach to develop their own skills.

Indeed, many HR professionals were looking not so much at organisationwide initiatives as their own personal development: “I’ll be developing business acumen skills in financial modeling, managing and analysing big data,” wrote one HRD from Singapore.

Number two on the list – change management – is also no surprise.

Respondents provided a wide range of examples of how they are involved, from the tactical and practical side of change – “Changing the way in which employees work (Activity Based Workspaces) and relocating

97% Integrity

84% Intelligence

94% Other*

83% Humility

87% Persuasiveness

82% Assertiveness

*Other: Business/commercial acumen; adaptability/flexibility; EQ, empathy; ability to influence and persuade

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 16

31/07/2015 3:37:54 PM

2015-16 PRIORITIES Recruiting the best talent was rated by 81% of Australian HRDs as their top priority, while staff development is a bigger issue in NZ/Asia (78%). Boosting productivity is the third-highest priority for all HR professionals IN 2015-16, HR executives in Australia are more likely to be focused on staff development and training than those found elsewhere in the Asia-Pacific region. In New Zealand, Singapore and elsewhere across Asia, the focus instead is on recruiting the best talent.

The APAC HR Report also revealed a number of other trends in HR departments across the region: • HRDs in Australia and New Zealand view risk identification, regulation and compliance as more important than those in Asia – many HR professionals vented both frustration and in some cases relief that Australia has such rigid and detailed employment law and compliance requirements.

• HR executives in Asia put more focus on expanding into new markets than those in Australia and New Zealand.

• Reducing costs is a higher priority for HR departments in Australia and Asia than it is in New Zealand.

• HR managers in Asia and specifically Singapore work more on assisting the sales team in acquiring, serving and retaining new clients than they do in Australia and New Zealand.

As seen in the table above, it also appears that the major priorities, as specified by HR professionals themselves, are different to the tasks they actually work on – indicating either a lack of resources, lack of time or lack of planning resulting in unforeseen tasks emerging.

Survey responses showed that perceptions about the primary focus of HR have shifted over time. “HR has more gradually been accepted as a business partner rather than just a compliance management function or a ‘nice to have’. Where this can continue, it will create opportunities for improved business capability and productivity through staff development,” a CHRO of a major Australian enterprise stated.

HR’S STRATEGIC PRIORITIES: PERCEPTION VS REALITY Perception How important are the following strategic issues to your role as an HR professional?

Reality To what degree are you personally involved in the following strategic issues?

Recruiting the best talent Staff development and training

90% 87%

77% 78%

Enhancing employee productivity Identifying risks, regulating and ensuring compliance Reducing costs

84%

72%

Priority

Helping the sales and marketing departments to acquire, serve or retain clients Expanding to new markets

78%

VS

74%

71%

65%

61%

46%

59%

45%

The dual focus that risk management has with other HR essentials such as employee training was also highlighted. “[One problem is people] not understanding the legal requirements. Many people in HR have had no formal HR training or qualifications. It’s fine to learn by doing as long as you are working under someone who can direct you but that doesn’t seem to happen as often as it should. This is why there are so many [personal grievance] cases these days,” a surveyed HR adviser at a large New Zealand firm said.

External factors can also affect HR priorities within a country. When asked about the future of HR within Australia, an HR adviser for a local SME said: “There is an air of economic uncertainty. HR can move their attention away from recruitment and remuneration as labour conditions tighten.

The focus can then be placed on increasing productivity and using smart methods to reduce costs and increase job security.”

HR SNAPSHOT What skills and knowledge do you think will be most critical to your personal success over the next year?

Communication and influencing skills Leadership capability Business acumen Other* Employment law *Other: Relationship building including having high EQ, working with diversity, interpersonal and networking skills; change management skills; talent development including coaching, training; business and operational knowledge; engaging and collaborating with management and other departments

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 17

17

31/07/2015 3:18:54 PM

COVER STORY

HR REPORT

HR SUPPORT Only 31% of respondents feel that senior management is always supportive of their HR initiatives. This reduces to 5% in small companies JUST LIKE ANYONE, HR professionals tend to be their own harshest critics. But what do they make of their executive colleagues? What do they do well and are there obvious gaps in their knowledge and skills?

When asked to rate which skills were most important for their executive team, 89% of HR professionals specified being ‘results focused’, 88% specified being ‘client focused’, and 84% specified having excellent communication skills.

However, when asked to actually judge which skills their executive teams were strongest in, this category rated second (82/100) behind client focus at 83/100. Disturbingly, given its focus in so many businesses today, skills in ‘change management’ scored only 58 out of 100.

Results were consistent regardless of company size, job role or geographic location.

EXECUTIVE STRENGTH Rate the strength of your current leaders in your organisation in the following areas:

Results focus

Client focus

82/100

83/100

Problem solving

Staff development

71/100

Communication

62/100

Change management

61/100

58/100

REALITY CEO SUPPORT CEOs have a lot on their plate, but it’s natural to hope – and assume – that they will find time for everything they need to tend to. However, as seen in the ‘perception’ vs ‘reality’ pie charts at right, this is not the case. The desired time spent on HR issues (70% of HR professionals suggested 11–50% of a CEO’s time should be spent on this) differs quite dramatically to the likely actual time spent (HR professionals suggested the figure was more like 47%).

On a similar question – the support given to HR by fellow executives – the results were mixed. When asked whether senior management supported HR’s efforts, only 31% of respondents felt they were always supportive. Of the remaining respondents, 62% said there was room for improvement while 7% said that management failed to support their initiatives at all.

18

PERCEPTION

HOW MUCH TIME DOES YOUR CEO SPEND ON PEOPLE-RELATED ISSUES’?

HOW MUCH TIME DO YOU THINK THE CEO SHOULD SPEND ON PEOPLERELATED ISSUES’?

15%

Less than 10% of time

47%

47%

Less than 10% of time

11–50% of time

6%

15%

More than 50% of time

70%

11–50% of time

More than 50% of time

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 18

31/07/2015 3:38:30 PM

EXECUTIVE SUPPORT The % of HR professionals who feel supported by senior management

BY REGION

BY COMPANY SIZE

Asia 31% New Zealand 38% Australia 28%

BY JOB TITLE

CHRO 51% HR director/VP/ 32% manager

While these figures remained relatively consistent across the region (with New Zealand having the highest rate of satisfied HR team support at 38%), the statistics varied significantly when breaking them down over company size. In fact, it was found that in organisations of less than 100 employees, only 5% of respondents said that senior executives offered high levels of support for their initiatives. The primary reasons given for this lack of support included a lack of operational strategy, difficulty in getting leadership teams to agree on priorities, and budget constraints.

Participants also reported a reluctance to buy into new initiatives in smaller companies.

Some readers voiced concern about this lack of support coming down to cost-cutting.

“Our business is extremely margin-sensitive and profitability driven. Any cost for HR initiatives essentially come off the bottomline (which affects not only results and overall profitability, but can impact personal bonuses), so while there may be support for the concept, there is no support for the costs,” said a CHRO from the banking sector in Australia.

1–99 5% 100–499 29% 500–999 27% 1,000+ 28%

HR adviser/ consultant/ 24% executive HR assistant/ 22% coordinator

Others cited deep-seated cultural issues.

“HR initiatives are imposed by senior management in my workplace. They lack the benefit of innovation and just accept what is the norm. In addition, there is an attitude that the business is ‘always right’, similar to the ‘customer is always right’ attitude faced in the retail sector,” suggested an HR director from Australia.

record of what has occurred and issues are dealt with correctly,” wrote one HR business partner from Sydney.

Most respondents also recognised the role that internal politics plays in HR success. An HR director from the retail industry in Brisbane noted: “I gauge the feel of the senior management before I propose initiatives. If the timing is not

23% more HR professionals in New Zealand believe senior management is ‘always supportive’ compared to the APAC region as a whole Still, for those who said HR was ‘always supported’ by senior management, the results speak for themselves.

“My MD always allows me to go on new courses, implement new policies and deal with HR issues directly with staff with only limited involvement from him, so we have a

right, I park the initiative until I feel the business is ready. That approach has been very successful in amassing support for initiatives. There are always people who are negative, but the support of the rest of the senior management team assists in winning these people over.”

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 19

19

31/07/2015 3:42:37 PM

COVER STORY

HR REPORT

TODAY’S CHALLENGES Participants were asked to rank from 1 to 5 (1 being ‘extremely important’) a list of six challenges. Here are the ultimate scores assigned to each challenge, along with survey responses which serve to highlight specific issues HR is dealing with

90%

‘OTHER’ The challenges facing HR professionals were similar regardless of country, company size, or the job title of those taking part. However, intriguingly, ‘other’ was selected by the highest number of HR professionals as their number one challenge. By ‘other’, HR professionals specified: • Being a business partner: contributing to the business at a strategic level and achieving results through people; demonstrating value to the business; aligning HR with the need of the business • Managing people: Employee relations, organisational culture, increasing productivity, recruiting the right people • Keeping employees engaged • Employee development and career planning • Change management

89%

BUILDING INTERNAL CAPABILITY AND INFLUENCE “Linking HR programs to business results and knowing what metrics to measure.”

“Being commercial – not enough acknowledgement of business needs is being shown in the profession.”

88%

EMPLOYEE RETENTION “Employee relations – resolving issues with employees. Many HR professionals no longer see this as important but poor relationships and unresolved problems create high turnover and low productivity.”

81%

EMPLOYEE RECRUITMENT ““Becoming an Employer of Choice – not just because of the catch phrase, but what it actually means: having engaged staff who believe in the company and its strategic direction, and being a place people want to work (unsolicited applications).”

“Can’t do anything without the right people in the right job with the right skills.”

“Coping with a work base that wants to work on an increasingly flexible basis – not just working mothers/parents. Genuinely promoting work-life balance options combined with a meaningful job/career.”

75%

DEALING WITH LEGAL CHANGES

74%

ADAPTING TO NEW TECHNOLOGY “Using technology to streamline and automate routine processes, and using data more integrally with other business metrics to underpin the strategic contribution and cost benefits of HR to the business.”

20

“With the way Australian laws are headed, it is becoming a lot harder to act as a HR professional without facing employees who have the support of the legal system behind them even if they have acted incorrectly.”

“HR is seen as a ‘Policeman’ concerned about countless ever changing pieces of legislation – as opposed to positioning themselves as a service centre to assist operational managers get the best out of their teams whilst aligning with the corporate strategic intent.”

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 20

31/07/2015 3:19:02 PM

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 21

21

31/07/2015 3:19:07 PM

COVER STORY

HR REPORT

GREATEST BARRIERS The top three challenges of large companies in achieving excellent HR results are lack of support by the management; lack of funds, resources and time; and limitations in the capabilities and quality of HR teams WHEN ASKED WHAT the greatest barrier to achieving excellent HR results might be, respondents were remarkably consistent across company size (the top result for all four size categories was ‘lack of buy-in or support from management/ leadership’) and country/region. New Zealand placed ‘lack of funds’ as number one, while all other regions placed ‘lack of support or buy-in’ as number one.

BARRIERS TO HR SUCCESS

31% Lack of support or buy-in from management/leadership, not understanding the value of HR “I don’t have time for this’ is the familiar catch-cry, until something goes wrong...”

The dominant barrier to HR success was overwhelmingly deemed to be the lack of support or buy-in from management/leadership. Here’s how it ranked:

12%

BY REGION

Asia 42% New Zealand 22% Australia 34%

BY COMPANY SIZE

People’s poor perception and lack of understanding of HR; support of all stakeholders “Considering we work in such a large organisation, it is tough getting managers and staff to comply and take part in HR related aspects such as performance reviews and development.”

1–99 28% 100–499 29% 500–999 33% 1,000+ 33%

BY JOB TITLE

CHRO 30% HR director/VP/ 35% manager HR adviser/ 34% consultant HR assistant/ 20% coordinator

22

5% Limitations in the capabilities of managers and leaders “The model I work in is one in which I support line managers to manage their staff. There are mixed abilities in doing this; so the barrier is getting them to do more than ‘talk the talk’. Emotional intelligence and capacity to get the best out of people and harness maximum engagement and productivity is poor in some areas.”

22% Lack of funds, resources and time “HR is seen and expected to be reactive and not proactive. There are no development plans in place/ budget allocated for the HR team. The business is focused on sales results, leaders are not capable of managing underperformance and this has created a culture of acceptance.”

8% Capabilities, knowledge and quality of HR team “We’re hampered by an incompetent HR team, HR’s lack of business awareness, not understanding the business dynamics, and being too operation oriented and glued to office work rather than working with ground level people.”

4% Reluctance to change, being stuck to traditional ways and thinking “Old ideas about what HR is. That is, the compliance HR model rather than the advisory one.”

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 22

31/07/2015 3:39:17 PM

14-25_HRSurvey_v3_SUBBED2.indd 23

31/07/2015 3:19:18 PM

COVER STORY

HR REPORT

HR LEGACY Most HR professionals from Australia and Asian countries want to leave a legacy of having created a better workplace culture; those from New Zealand want to be known for contributing to the growth of employees WHAT DO YOU WANT YOUR LEGACY TO BE?

26%

To create a better workplace culture and environment in a variety of aspects

7%

To have made a difference, brought positive change

19%

To contribute to the development and growth of employees; an improved and engaged workforce

6%

To have transformed or developed the HR team

13%

To improve HR function, policies; increase the value of HR

4%

To be viewed as a competent professional with various skills

HR professionals across the region and from all company sizes are overwhelmingly optimistic about the future of their profession.

One HR adviser – a veteran of the industry – put it succinctly: “I believe we go from strength to strength. When I started out in HR (28 years ago!) a lot of people had never heard of it and those that did regarded us as ‘hiring & firing’ or ‘tea and sympathy’. So much has changed and our value to organisations continues to grow and, more significantly, to be noticed.”

For some it has taken time, but the future looks bright. One Australian CHRO noted: “Whilst there is always room for improvement I have noticed that more and more HR is becoming more a profession holding its own.

Younger managers prefer to let qualified HR professionals handle the essentials.”

24

11%

To be known for having positive characteristics and traits, such as being fair, empathetic, trustworthy, etc

4%

To be recognised as a true business partner

LOOKING FORWARD

9%

To have helped the business grow, succeed and achieve results

1%

Improved technology and systems

Others saw HR somewhat reluctantly being forced to step in front of the footlights. One HRD from New Zealand suggested: “As New Zealand becomes progressively more litigious in this space there will be an increasing need for formally qualified HR practitioners. There is great strength in a lack of policy and an abundance of appropriate shared values but this will likely become harder to maintain.”

Some readers suggested that HR need to start believing in their own abilities. “I think we can be our own worst enemy, so taking a positive outlook can change your perspective and the actual outcomes. I think there is always room for improvement, learning, development, smarter ways of doing what we do best – getting better results and engagement through a people focus,” suggested one Australian-based HRD.

Are you optimistic or pessimistic about the future of HR as a profession?

6%

Pessimistic

94%

Optimistic

Pessimism about the industry focused on unhappiness with the current department structures, a perceived low barrier to entry to the profession, and lack of commercial skills.

One Australian HRD noted: “I think that Ram Charan of Harvard Business School was right. In many cases HR should be disbanded with the admin parts given to finance and the OD done by someone with a business background.

HR has become too full of well-meaning, feelgood people. They sadly seem unwilling to reach outside their tight professional circle to get these skills into their teams.”

One Singapore-based HRD suggested: “HR desperately needs professional standards (similar to CIPD in the UK) to separate the wheat from the chaff, and ensure a developmental journey for people that choose this as a career.”

www.hcamag.com

14-25_HRSurvey_v3_SUBBED2.indd 24

31/07/2015 3:40:24 PM

HRA20

IAN TRAL S U A

&

Congratulations to all winners thank you to our sponsors EVENT PARTNER

GLOBAL HR SEARCH & RECRUITMENT

SUPPORTING PUBLICATION

ORGANISED BY

FULL COVERAGE IN THE NEXT ISSUE 14-25_HRSurvey_v3.indd 25 ad.indd 1 HRA2015_Congratulations_fp

3/08/2015 31/07/2015 10:55:43 9:40:15 AM

LEADERSHIP DEVELOPMENT

COACHING

HEAD ABOVE WATER: NEW EXECUTIVE TRANSITIONS â&#x20AC;&#x2DC;Hit the ground runningâ&#x20AC;&#x2122; features in so many ads for executive positions, but is there anything in it?

Iain Hopkins explores how employers can ensure new executives not only have their heads above water but are on their victory lap by the time their first appraisal rolls around THINK OF ALL THE TRANSITIONS a new executive needs to make before they can even start to settle into their new role. There is increased responsibility and complexity, as well as enhanced visibility, new reporting lines (sometimes to former peers) and possibly even the need for cultural transition if the job involves a move overseas. Now magnify that experience by four and you have the situation SEEK found itself in.

Earlier in 2015 SEEK announced the departure of two senior executives (CFO John

26

Armstrong and MD SEEK International Jason Lenga). Both planned to leave during FY16.

On the back of this announcement the company undertook a review of the executive structure and its succession plans for executive roles. The changes included the internal appointment of three senior staff to roles such as MD of international operations and director of corporate development. In addition, one external appointment was made: Geoff Roberts will join the company as group CFO in November 2015.

www.hcamag.com

26-31 Executive Coaching_SUBBED2.indd 26

31/07/2015 1:37:55 PM

www.hcamag.com

26-31 Executive Coaching_SUBBED2.indd 27

27

31/07/2015 1:38:00 PM

LEADERSHIP DEVELOPMENT

COACHING

If one new executive has its challenges, the appointment of four new executives can backfire dramatically if they are left to their own devices.

“The appointment of new executives is always challenging because there is less time to have them settle in and find their feet,” suggests Meaghan Callaghan, HR director, SEEK. “Often they have large teams and always have big agendas, so people are expecting them to deliver as soon as they start.

This is tricky because no one can just fit into a culture and a way of operating on day one.”

SEEK quickly realised that a three-day induction course for these executives was not going to cut it. What was needed was a tailored, long-term approach.

Who’s next?

The groundwork was laid early via a talent mapping process. Every year the executive team reviews the performance and potential of the senior managers they work closely with.

The assessment is based on SEEK’s ‘attributes’– those aspects of performance that have been proven in the past to be successful at the company. These attributes are known by everyone at SEEK and form part of its recruitment and induction processes. One outcome of the assessment is to identify those who demonstrate the potential to move into executive roles in the future.

“No specific timeline is agreed, but it’s generally understood to be within one to five years,” says Callaghan. “Also, no specific roles are necessarily identified; it’s more about identifying those who are operating at a level beyond what their current role expects.”

All the internal appointments mentioned above were made through this process, so the candidates had been developed and assessed at an executive level for some time. The sponsorship of the people in this group is owned by the entire executive team.

28

WHO MAKES A GREAT COACH? As an honorary fellow at Sydney Business School and a lecturer on the masters of business coaching program, O’Sullivan says almost a third of any class he teaches hail from an HR background. Most say they hope coaching skills will help them in their current HR roles, and others view it as the next career step when they leave the industry.

O’Sullivan advises anyone with an HR background looking to make this switch to understand they will be selling a service when they are coaching. “The word ‘selling’ frightens a lot of HR people because they’ve never had to sell. They don’t actually know the mechanics of ‘we need to secure some clients’.”

Those who do it well, he adds, demonstrate the following traits: Listen – and listen deeply. “It’s fine to listen to what the client is saying, but you must also listen to what they’re not saying or doing. That’s almost more important.”

Business nous. “Really understand the business. I think a lot of executive coaches understand coaching but they don’t necessarily understand what the business is trying to achieve. It’s important, if you’re going to work at this level, that you understand what the business is trying to achieve, then understand the role the person will be fulfilling.

Finally, understand what the person is trying to achieve. A lot of work cultures go the opposite way: they start with the person and forget to go higher.”

Development Next, the development plan was put in place.

Offering a helping hand to these new executives was Padraig O’Sullivan, managing partner of executive transition specialists O’SullivanField. With years of experience helping executives move from one level of responsibility to another, typically at the C-suite level, O’Sullivan says his role is to

Understand each of the client’s stakeholders. “For me an executive is successful as per their stakeholder’s view, so aim to learn something about the six or seven key stakeholders who regularly interact with the executive.”

Technical know-how. “Understand how teams work. How are high-performing teams coached?

Understand complexity. This is really important – to help the client navigate through complexity.

Understand self-management, self-leadership. Look at resilience and coping strategies. Ultimately what you’re trying to do is help the leader manage themselves.”

ensure the executive hits their ‘effective points’ as quickly as possible. An effective point is when that person is fully involved in the role and is making a positive impact.

O’Sullivan had been working with SEEK’s executives prior to the promotions, so he was familiar with the company.

“There is so much about being an executive that is about your ability to effectively interact

www.hcamag.com

26-31 Executive Coaching_SUBBED2.indd 28

31/07/2015 1:38:03 PM

HRD Ad

HUMAN RESOURCES DIRECTOR

Human Resources Director (HRD) is Australia’s only magazine written exclusively for CHROs, HR Directors and senior decision-makers.

• • • • •

Aspirational cover stories Best-practice profiles and case studies Interviews with international HR leaders Business strategy content Special reports

www.hcamag.com Find out more and subscribe at www.hcamag.com

26-31Ad Executive 29 HRD for HRD Coaching_SUBBED2.indd 13.8.indd 1

29

31/07/2015 2:47:59 1:38:06 30/07/2015 PMPM

LEADERSHIP DEVELOPMENT

COACHING with others and understand your own strengths and weaknesses,” says Callaghan.

“Padraig has been brilliant in working with several members of our team to work through these aspects of their performance. We tried other development options, but this has by far delivered the best results. This type of work is very individual, and hence coaching seemed a good option.”

While many coaches concentrate solely on developing the individual, they may fail to take into consideration the broader picture.

The role, the business, the stakeholders and the individual all need to be considered.

“With any new executive there are multiple transitions happening at the same time, and often for the first time,” O’Sullivan says. “For example, a new executive may have once reported to other members of the board; now they are promoted to be a peer of the former boss. That’s an interesting dynamic. One may have reported to another in the past. That brings its own dynamics. Some have responsibilities across parts of the world where they haven’t worked before. So there’s an international dynamic.”

O’Sullivan paints a picture of how he might help a client – in this instance the MD of the Australian arm of SEEK, who was previously the head of product development and also head of strategy. As head of product development he had six people reporting to him. He grew this team to 250. Today he has 850 people reporting to him through the organisational structure.

“For this person, one of the first things I’d start with would be whether he is good at articulating a vision for this organisation – can they articulate the future needs of the organisation? Are they good at putting discipline into an organisation? Are they good at leading their own team? Have they got a clear structure for leading their own leadership team?

“My starting point is always ‘what does the role require of the person in it?’. So when working with a new leader we’re firstly looking at what is the role you’re taking on: what do

30

“Often executives have large teams and always have big agendas, so people are expecting them to deliver as soon as they start” Meaghan Callaghan we need to achieve? And then we map that against this person’s abilities. There are always gaps, as one would expect, but these are the development opportunities.”

O’Sullivan will also map out hoped-for outcomes. “Who are their key stakeholders? It might be their boss; it might be some of their peers; it might be two or three direct reports.

We map out six or seven key stakeholders. I would interview each stakeholder in terms of what they need to see happen over the next 12 months. Then we do a pulse every quarter – we interview those stakeholders: how is the exec doing relative to those objectives we set?

“There’s never any surprise. The exec is always informed how they are going in the view of the stakeholders, and the stakeholders are always informed how the exec is going.

Hence we can get really clear business results.”

The sessions themselves will usually last between six and 12 months and O’Sullivan will see them every three weeks for two hours.

Participants can have as much contact as they need in between sessions. In the intervening period the executive will read articles or work on specific behaviour to develop or change.

Does O’Sullivan utilise the countless psychometric and personality assessments

www.hcamag.com

26-31 Executive Coaching_SUBBED2.indd 30

31/07/2015 1:38:10 PM

an executive is likely to have taken during their career? “I certainly use the high-end 360-degree assessments. There are hundreds on the market, but only a handful are useful when you’re a senior executive. Usually they’ve done so many already so they tend to know themselves as people. What they may not know is the impact they’re having as the executive.”

Making it a success Rapport is key to any coaching relationship, and O’Sullivan concedes that “if the executive doesn’t get on with the coach or doesn’t trust the coach, they’re not going to work with them”.

However, O’Sullivan has an added incentive: payment for his services depends on building a solid rapport. In an unusual commercial

arrangement, he is paid half his fee up front; the rest is paid one year later, provided the executive is successful.

“It’s an interesting dynamic,” O’Sullivan says. “On one hand I need to help them navigate behaviour change, and I need to give them very clear feedback, because sometimes I may be the only person who is honest with them. Sometimes I’m the only one they will truly trust because I have no agenda other than their success. At the same time I’m being paid based on how successful they are.”

So far so good. SEEK has had positive reactions to the structural changes and appointments. Employee engagement hovers around 80% – a reliable lag indicator that the decisions being made are good for the company. And of course, having three people

promoted now creates space and opportunity for SEEK to focus on the next group of successors.

For other HR practitioners setting out on a similar round of executive changes, Callaghan offers the following advice: 1. Be clear what your criteria are for high performance at executive level, and be 100% transparent about it throughout the company.

2. Favour promoting from within where possible. Cultural alignment is so critical to someone being successful in an executive role.

3. Use executive coaching strategically in your company to develop those who are already showing potential for executive level.

www.hcamag.com

26-31 Executive Coaching_SUBBED2.indd 31

31

31/07/2015 1:38:14 PM

HR STRATEGY

L&D

L&D: NEW CHALLENGES, NEW APPROACHES From MOOCs to ‘swarming’, Gary Taylor explores the brave new world of corporate learning A CIPD research report from the UK just five months old caught my attention because of its wide referencing of literature related to the role of L&D in helping organisations deal with business challenges in the second half of this decade.

The training departments of yesteryear were stereotyped by mundane skills training or eager L&D professionals experimenting with the latest leadership development theories. Within the broader HR division, it was the OD people who owned the portfolio of change management, but we are seeing an exciting value-add role for L&D in delivering change capability.

Keeping up with the changing world The external environment for many organisations can be characterised by the acronym VUCA (Volatile, Uncertain, Complex, Ambiguous).

With increased connectivity, the L&D department might well be offering programs to include the staff of suppliers, clients and even competitors (when organisations decide to embark on ‘coopetition’ with the competition).

For instance, L&D professionals are now facilitating sessions to promote the concept that Gartner terms ‘swarming’. This is a work style characterised by feverish collective activity by a temporary group of

32

www.hcamag.com

32-33_L&D_SUBBED.indd 32

31/07/2015 1:11:33 PM

people – anyone who can add value. Swarms allow the irregular multidisciplinary group to form quickly in order to attack a problem or opportunity, and then dissipate as quickly when the task is accomplished. This is a different model to traditional teams, which usually comprise individuals who know each other and work for the same boss; and a different L&D approach needed.

adapting existing competencies within LEGO to take hold of the opportunities that have flowed from the film medium. Instead of merchandise flowing from the movie, this was an example of merchandise driving the movie.

Similarly, Disney’s animated film-makers originally hired creative artists to draw thousands of cartoons on acetate sheets, and then hired photographers to take thousands of

The new breed of L&D professional needs to be more content organisationally, and context-savvy The top L&D departments are looking to help their organisations develop the capacity they need to cope in a VUCA environment. Research indicates that organisations need to be: • Adaptive: Attuned to the external environment in such a way as to sense and recognise change and its implications. It is too general to know that ‘change is a-comin’, because institutions also need to recognise the type or patterns of change and then make sense of it. This requires a high absorptive capacity in order to internalise the change.

• Agile: Have the dynamism to be able to shift strategies in response to opportunities as well as threats and then develop new organisational competencies. This might entail the integration of new ways of working, which has all kinds of L&D implications.

• Ambidextrous: Able to balance change and stability (both at the same time). Being organisationally ambidextrous entails exploiting present capabilities while still being open to breaking with the past.

Theory into practice We have witnessed some exciting examples of this. Just think how the new young management team at LEGO conceived the idea of The LEGO Movie as a means of re-energising their brand among children.

This entailed partnering with those who had the competency to make it happen, and then

still photos and splice them together to create the illusion of a moving character. Pixar films have no cameramen but took to hiring postgraduate mathematicians to construct the algorithms necessary to create the patterns for movement on the fur of a monster, and for his shadow to follow him correctly. It’s a case of a graphic artist working side-by-side with a mathematician in a fascinating interdisciplinary effort. Disney bought Pixar in order to stay ahead of the game.

The implications for L&D The new breed of L&D professionals needs to be more content organisationally, and context-savvy. Off-the-shelf training programs cannot just be adapted to the organisational context after one focus group, to gain relevant illustrations.

Embedded commercial acumen is essential to forge an affecting and aligned L&D unit, in which staff play different roles.

The L&D function must be both strategic and operational if it is to make a meaningful impact, and this means getting hands dirty.

We hear of L&D departments engaging with MOOCs (Massive Open Online Courses), which are accessible to anyone and allow unlimited participants. Variants of this approach include xMOOC, an online version of the traditional class, and cMOOC, which is connectivist and encourages collaborative learning rather than mass broadcast.

ALL ABOUT MOOC The MOOC market has exploded for consumers as well as employers. According to Forbes research, more than 70% of employers are interested in exploring the use of MOOCs for corporate training, and 31% have some plans to leverage MOOCs for corporate training. Coursera, Udacity, Udemy and edX are all starting to license courses and their platforms to businesses and for-profit education companies, a trend that will continue to grow.

Yahoo is already reimbursing employees for the cost of verified course-completion certificates from Coursera. Online retailer 1-800-Flowers announced it would create an online education portal on the Udemy platform for its network of independent florists. The portal offers a mix of general business courses and custom-developed courses on topics specific to the floral industry. Tenaris, a US$10bn manufacturer of steel pipes, has licensed edX’s software platform and course materials for its employee learning.

The World Bank, the IMF, GE, and several major government ministries are licensing MOOC content and technologies for their constituents.

To create organisational capability in the skills listed above, experiential learning seems to be the approach of choice. Simulation games have been seen to enhance cognitive gains and teamwork, and stimulate positive reactions among learners. These games are complex and require skilled design, as they are intended to be cognitively demanding.

Simulation games mimic reality in that the use of technology gives learners more control of their environment. The learning space is immersive – participants are fully absorbed – and stretches learners out of their competency comfort zone.

The L&D professional can no longer just be a broker of knowledge; they need to also be a facilitator of connections across the organisation.

Gary Taylor is an HR director who has worked for Australian, South African and British multinationals 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 vice president of the Institute of People Management.

www.hcamag.com

32-33_L&D_SUBBED.indd 33

33

31/07/2015 1:11:36 PM

TECHNOLOGY

PAYROLL

OVER, UNDER OR JUST RIGHT? As countless high-profile cases have proven, there is no such thing as ‘near enough is good enough’ with payroll. Here’s what your organisation can do to avoid costly errors

IN SEPTEMBER 2014, Canberra’s Prime Minister and Cabinet was left red-faced when it was revealed that underinvestment in training for payroll professionals had resulted in significant underpayment of employees who had been made redundant. The department was forced to repay former staff members whose redundancies were underpaid – in one case by $17,000 – because the employee’s agreement to waive his right to a redeployment period was overlooked.

Although this was a high-profile and complicated case, there are countless other incidents of underpayment or overpayment of pay each and every week. A recent review rated Australia’s payroll processes as one of the top five most complicated globally.

When asked if he agreed with that review, Nick Southcombe, general manager of Frontier Software – a global provider of HRIS software and payroll services – replied: “Absolutely. Complexities surrounding taxation of various pay elements, different leave entitlements, and payroll tax in different states, a complex and everchanging superannuation regime, combined with grey areas in awards and EBAs, are why Australia has one of the most complex payroll environments in the world.

“Payroll staff are expected to have an in-depth knowledge of all these complex variables; a very difficult ask. It is understandable that lack of knowledge and

34

interpretation anomalies result in over or underpayments to staff.”

Can technology help?

Fortunately, HRIS and payroll systems are programmed to address many of the complexities in payroll, albeit to varying degrees. This can include time collection, award interpretation, leave liability calculation, calculation of superannuation contributions, and the taxation related to all of these. Not all payroll software vendors have programmed their software products for all payroll factors, and additional manual entry or overrides may be required, which means human error can still be a factor.

As technology continues evolving, software

which reduces error-prone manual tasks for staff, managers and the payroll team • workflow to automate processes • expense management • access to the payroll system from mobile devices • strong reporting and auditing tools, including dashboards, which provide management with an additional level of review and control.

“Clearly, the more automation the better,” says Southcombe. “However, there is always at least one person behind each and every payroll system who must also be managed and trained to use the system accurately and efficiently.”

“There is always at least one person behind each and every payroll system who must also be managed and trained to use the system accurately and efficiently” Nick Southcombe vendors are working to close the gaps. Today, a best practice payroll system will include: • automation of time collection • interpretation of hours worked against awards and enterprise bargaining agreements • online Employee and Manager Self-service,

The process behind the scenes There are further steps employers can take that don’t revolve around technology. The key differentiator is often the depth and quality of training and business support provided to the payroll practitioners. “Training is a key enabler

www.hcamag.com

34-35_Payroll_SUBBED.indd 34

31/07/2015 1:13:46 PM

Brought to you by

PREVENTION BETTER THAN A CURE

for all employee performance and certainly essential in the complex Australian payroll environment,” confirms Southcombe.

Payroll staff will always benefit from regular updates and training on all appropriate legislation. Organisations such as The Association for Payroll Specialists (TAPS) and the Australian Payroll Association (APA) offer such updates and training. The APA now offers a Certificate IV in Payroll Administration and a Diploma in Payroll Management. Additionally, all payroll professionals should belong to TAPS and/or the APA. “Updates and training do not just apply to payroll legislation and practices,” says Southcombe. “Appropriate training in the use of payroll software, and keeping up to date with the changes and enhancements the payroll software vendor offers as part of system updates is also essential for efficient and accurate payroll processing.”

Very importantly, Southcombe adds, there must be appropriate internal controls in place, including segregation of duties, supported by appropriate audit practices.

Making payroll audits standard practice Following a precedent set by a number of fastfood retailers in recent years, some companies are now opting to conduct voluntary wage

audits in association with the Fair Work Ombudsman (FWO) to ensure they are paying workers correctly.

Typically, an organisation will enter into a voluntary agreement with the FWO to audit the pay of a cross-section of its workforce, known as a Proactive Compliance Deed. In independent internal pay audits, firstly a review of the current industrial instrument that applies to the individual workforce – such as an award enterprise agreement or employment contract – is carried out. Then, typically, the award classification is reviewed to ensure employees are classified at the correct level and receiving the correct pay rate, penalties and allowances, including the transitional items where appropriate.

Southcombe notes that investigations should be conducted immediately if there are suspicions of inaccurate pay.

In addition to checking the accuracy of the payroll itself, pay audits should also: • ensure payroll staff are following established processes and policies • ensure only approved authorised signatories are reviewing and signing off on all payments • ensure there is appropriate segregation of duties in place • assess whether processes in place are best practice and provide suggestions as to how processes could be improved

Here are the Australian Payroll Association’s (APA’s) top three tips for avoiding payroll mistakes: 1. Ensure you have the right people The key to payroll compliance is having qualified payroll professionals. This has been difficult as nationally accredited training in payroll has only been available since January 2013 (when APA established Australia’s first official payroll certification). If you can’t find staff with a competency-based qualification such as the Certificate IV in Payroll Administration or the Diploma of Payroll Management, you should ensure that the candidates you assess go through a thorough payroll knowledge assessment to identify any knowledge gaps. You typically won’t find the best payroll professionals on SEEK as they are being actively retained by their employers because they are rare.

2. Keep your payroll team knowledge up to date Payroll experience does not necessarily mean payroll knowledge. Because legislation affecting payroll changes every year, it is important to keep your team up to date through regular training and assessment to ensure their knowledge is current.

3. Measure your payroll operation To ensure you are running the most efficient and compliant payroll operation possible, you must benchmark your operational payroll costs.

Then you will be able to identify where to make improvements in both cost and governance.

• review previous audit findings to ensure all recommendations have been implemented • ensure disaster recovery and business continuity plans are in place and up to date.

“Engaging your payroll software vendor to conduct a system health check on a regular basis is also beneficial,” says Southcombe.

“They can often assist to assess if your system is set up correctly; if there is unused functionality you can implement and provide guidance on a best practice configuration.”

Frontier Software was founded in Melbourne in 1983 and is a global leader in payroll, HR and talent management solutions.

www.hcamag.com

34-35_Payroll_SUBBED.indd 35

35

31/07/2015 1:13:50 PM

HR STRATEGY

SUPERANNUATION

SUPERANNUATION:

MAKING THE CHOICE

A good super fund can deliver tangible business benefits – greater employee satisfaction and less time spent on admin for payroll employees, to name just two. Can being more proactive about superannuation fund choices benefit your business?

A RECURRING THEME from HRD’s Global HR Survey in August 2014 was the amount of time HR professionals must spend on transactional tasks – in other words, the essential building blocks that must be done smoothly and efficiently to ensure that HR’s other more strategic objectives can be successful.

Some might group superannuation administration and management into that transactional task list. After all, ensuring employee superannuation is paid, correctly and on time, is an essential function of business. However, a ‘set and forget’ or hands-off mentality is far from beneficial for you or your employees – especially when it comes to choosing a default super fund.

Indeed, many employees rely on their employer for more than just making sure

DID YOU KNOW? Despite government intentions to increase the superannuation guarantee (SG) to 10% on 1 July 2015, the SG has been frozen at 9.5% since last year and will remain at that level until 2021, after which it will increase at 0.5% every year until 2025, when it will reach 12%.

36

their contribution is paid. They expect that you’re making good choices on their behalf and you’ll nominate a super fund that places their interests first. This means you need to be engaged in terms of what your super fund is doing.

“Where super is seen as an important part of a company’s overall employee remuneration offer, then HR typically has significant input into the default fund,” says Margie Hill, General Manager People and Culture at AustralianSuper.

“Engaged HR practitioners are looking to partner with a super fund that adds value to their employee offer and helps them manage their super obligations.

“So to do this, they’re choosing a default super fund that’s good for their employees – typically, one that has low fees and good long-term investment returns.

Hill also says that employers seek super funds which offer support and tools that make processing and administration quick and easy, particularly now in an environment where the government has changed the laws around the way employers must pay their employees their super.

www.hcamag.com

36-37_Superannuation_SUBBED.indd 36

31/07/2015 1:14:33 PM

Brought to you by

Recent government changes mean that businesses now need to administer super using approved software or an online service like AustralianSuper’s QuickSuper* clearing house.

Making a super choice Most businesses can choose their default super fund as long as it’s complying and offers a minimum amount of insurance. But if you’re covered by an industry award or enterprise agreement, you’ll need to check to see if you actually can make a choice.

When choosing a default super fund, it’s a good idea to consider: • Benefits for you – Look for areas where you can facilitate efficiencies in your business.

Services, such as a free online clearing house and a dedicated account manager, may save your business time and money as they can help reduce administration, and provide a direct contact for any questions or needs you may have.

• Benefits for your employees – Consider super funds with low fees and strong long-term investment performance, ideally with profits returned to members (your employees), not shareholders. It’s these factors that are likely to have the greatest benefits for your employees’ retirement savings.

Insurance options, investment choices and member education services are also important considerations.

Talking to employees about their super options It’s likely that you’ll get questions from employees about the default super fund that you’ve chosen, such as their choice options, fees, performance and investment options.

And then there’s also a balancing act of responding to these questions without providing or being perceived as providing advice.

So when talking to your employees about super, rather than getting bogged down in any technical jargon or responding individually to their unique financial circumstances, focus on what the default fund has to offer and how these

LEGAL OBLIGATIONS HR professionals should be fully across the relevant legislation to ensure compliance, including: • remittance of contributions and reporting • knowledge of the circumstances in which superannuation contributions have to be applied or not • concessional tax arrangements • system compliance to ensure that the system is set up correctly and that reconciliation processes occur attributes could help them achieve their retirement goals. “You can talk to employees all you want about anti-detriment payments, in-specie transfers, or binding nominations.

But they’re most likely going to want to know about performance and fees, as well as things like concessional caps and government co-contributions,” says Mark Delaney, AustralianSuper’s Chief Investment Officer.

Time for a change?

The sometimes laissez-faire attitude of employees towards their super choices can also extend to some employers. A culture shift needs to occur; the prevailing opinion that super funds are merely mandatory boxticking functions needs to change. A good super fund has a team of experts working to benefit all employees in your organisation and may even be able to find efficiencies in your business – and that alone is worth being proactive about.

This article was prepared in July 2015 and may contain general financial advice which does not take into account your personal objectives, situation or needs. The views expressed in this article include those of HRD and AustralianSuper. HRD made their comments based on their experience and expertise. Before making a decision about AustralianSuper, consider your financial requirements and read the Product Disclosure Statement, available at www.australiansuper.com or by calling 1300 300 273.

AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788 Trustee of AustralianSuper ABN 65 714 394 898 *QuickSuper is a registered trademark and a product owned and operated by Westpac Banking Corporation ABN 33 007 457 141. Westpac’s terms and conditions applicable to the QuickSuper service are available after your eligibility for the free clearing house service is assessed by AustralianSuper. A Product Disclosure Statement (PDS) is available from Westpac upon request. AustralianSuper does not accept liability for any loss or damage caused by use of the QuickSuper service. AustralianSuper does not receive any commissions from Westpac as a result of employers using this service.

AustralianSuper works with over 210,000 businesses and manages more than $90bn on behalf of over two million members.

One in 10 working Australians is a member of AustralianSuper. For more information go to australiansuper.com/employer

www.hcamag.com

36-37_Superannuation_SUBBED.indd 37

37

31/07/2015 1:14:38 PM

CAREER

CORPORATE POLITICS

7 TRUTHS FOR DEALING WITH TOXIC CEOS

Toxic CEOs can derail your career, flatten your enthusiasm and even make you sick. Cindy Tonkin provides seven tips for dealing with toxic bosses

THERE ARE many brands of toxic CEO. Your toxic CEO could be a prima donna, a blocker, a cold fish, a lazy bastard or a landmine. There are as many types of toxic CEOs as there are personality disorders, really!

Before we even look at dealing with them, here’s a little encouragement for you.

Remember that toxic CEOs most affect you when you are closer to the top of the ladder.

It may not feel like it, but you are powerful in this organisation. That’s why you even care about this topic.

Regardless of which type of toxic CEO we are dealing with, it will not be a pleasant experience and you will never make it so. A ‘Toxic’ affects your job, your career and how competent you feel.

Here are some tips on navigating life with a Toxic.

1

You are already contaminated

Firstly, do not kid yourself. Like a deadly disease, a Toxic contaminates. As soon as that Toxic hit your environment, you were contaminated.

Take Mark. He is a strong, kind and technically competent senior management

38

accountant. When his boss was replaced with a Toxic he wasn’t worried. His wife, an HR advisor, suggested that he may need to start working his networks to protect his position. Maybe do a little schmoozing to be in the right place with the new guy. Mark refused. He said, “I’m an ethical man, I don’t play politics”.

His boss executed some classic toxic moves. Every job got briefed to multiple people so they were obliged to play against each other (or constantly check if there was a duplicate job out there). The Toxic assembled a coterie of sycophants, made decisions that contradicted his policies and blamed others for every problem. The Toxic kicked down and kissed up.

To her credit, Mark’s wife didn’t say “I told you so”, as night after night Mark came home deflated, saddened by his boss’ behaviour.

Then his pet project was cancelled with no rational explanation. Nothing could save him now. He was contaminated by the environment. His attitude grew more and more negative. Every problem became pervasive, permanent and personal. He was infected. The way he managed his team

deteriorated. He couldn’t insulate them from the toxic fumes and he couldn’t save himself.

Because you’ve been contaminated, your work life will never be the same. Whether you stay with this CEO for three weeks or three years, how you look at the world of work will change forever. Get used to it.

A new regime, toxic or not, requires new approaches.

2

If you’re an idealist, just leave

If you are an idealist then it’s probably best you move on as soon as you possibly can.

It will get dirty, or at least Machiavellian from here on in if you are to survive and prosper.

Emma worked for the same toxic CEO as Mark. She saw the writing on the wall. She stepped up efforts to find a new job, and was out in less than six weeks. She lived to tell the tale.

You can choose not to play the game at all.

Emma’s three-step approach was: 1. Bring your CV up to date 2. Work out how much money you have and how long you will survive with no money coming in

www.hcamag.com

38-41_Toxic CEOs_SUBBED.indd 38

31/07/2015 1:15:21 PM

“If you are an idealist then it’s probably best you move on as soon as you possibly can. It will get dirty, or at least Machiavellian from here on in if you are to survive and prosper”

3. Start talking to agencies, notify trusted colleagues that you are looking, and watch the jobsites.

3

Become an expert flatterer

If you are staying, and are up to the challenge, then you must find better ways of working with the Toxic. Review what you already know about influencing people, and apply it. Now. You have to get as far inside their heads as you can. And you must assume that what works for you will not necessarily work for them.

Try new things until something works.

www.hcamag.com

38-41_Toxic CEOs_SUBBED.indd 39

39

31/07/2015 1:15:25 PM

CAREER

CORPORATE POLITICS Flattery is a great start. Researchers looking at flattery as an influencing tool have failed to find a point at which it doesn’t work.

So let’s talk about effective ways to flatter.

The most effective way to flatter is to know what your Toxic values, and flatter them with that. Some influencing (and flattery) tools you may already have in your kitbag are the Myers-Briggs Typology Indicator (MBTI) and DiSC. Find out what your Toxic’s type is and shamelessly use it. I’ve given you some starting points below.

To flatter using the Myers-Briggs elements: • Tell an extrovert that they are delightfully interactive, but never talk too much • Allow an introvert to know how much you appreciate their considered, thoughtful answers, but that you never feel they are withholding anything • Sensates will feel good when you tell them they are practical, pragmatic and clear without being boring • Intuitors (Ns) love to be filled with ideas, but never ungrounded • Thinkers will be flattered by how rational and clear they are (but never unfair) • Praise feelers for their heart-based approaches, without being too soft • Perceivers like that they are open to new ideas, but never flavour-of-the-month • Judgers are happy when you notice they finish things off without being controlling.

Try each type of flattery till you find the one that works, and then go and read up more on the things that appeal to the button that you have pushed.

The Myers-Briggs model is very much richer than just these big picture ideas.

These are just one-off ideas for an immensely useful body of work. And I apologise if your understanding of the model is deeper than these eight lines imply. Please take the concept of using personality style to help you identify a valid form of flattery, and work with that.

MBTI is just one model. If you know DiSC, then you can do a similar thing with it: • Drivers like to know they get stuff done but are never overbearing

40

• Influencers want to know that they are good with people without being shallow • Security/steady preferences like to know that you appreciate how well they listen without being indecisive • Conscientious/compliant preferences can be flattered by complimenting their thoroughness, and they’re never too diligent.

In the end, I would never suggest that you be insincere. But being quick to compliment in a way that makes the Toxic feel valued may help.

5

Find the constraints

Whenever I ask any management team to define the word ‘strategy’ the responses are similar, but no two answers matches exactly.

You need to find out what your Toxic means by whatever they say. It could be strategic decision-making, relentless execution, risksavvy or something else. You need to unpack it so that you can provide what they are truly asking for and keep yourself safe.

Here are some ways to do that.

• Organise an offsite and get them to give a presentation or answer questions.

“Researchers looking at flattery as an influencing tool have failed to find a point at which it doesn’t work” 4

Don’t do a good job. Become indispensable

In a toxic environment, the normal rules do not apply: Philip, another of Mark’s colleagues, hit the ground running with flattery, and followed up with toadying. He asked the Toxic about his hobbies (philately and Twitter celebrities) and took them up. He set about inoculating his staff to protect them from the Toxic. He battened down the information hatches. None of his team were ever in contact with the Toxic. Only Philip was.

Philip became indispensable.

This kind of practical politics may leave a bad taste in your mouth, as it does me. We need to distinguish between creating the behaviours we want from the behaviours which will help us survive. In more than 25 years of observing organisational politics, I have not seen anyone survive by playing nice full-time. When the Toxic leaves or when you become CEO, then you can play fair.

Until then, make yourself indispensable, even if it means you withhold information and create a siege mentality in your area.

Don’ t do a good job. Become indispensable. And to take it one step further: help your Toxic advance and get them a new job!

This will work best if they are more extroverted or a prima donna. If they’re also paranoid, try to have people presubmit questions • If they’re a blocker, organise an idea demolition session – get everyone to bring along possible ways to achieve the organisational goals and let the Toxic knock them down (make sure some of them are ridiculous, but some can be real) • If they’re more introverted, get a journalist or a corporate writer to interview them and write it up.

This gives them total control. Don’t interview them yourself because they will want to demolish whatever you write – but maybe you can sit in and help the journalist • Take them to lunch frequently and learn the best ways to flatter them.

Your allies in this unpacking of meaning are your team and your colleagues. But they are only allies for action. Do not debrief, bitch or moan to them about the Toxic. You will feel short-term comfort from doing so, but nothing will change. And you also expose yourself to possible betrayal from your colleagues.

www.hcamag.com

38-41_Toxic CEOs_SUBBED.indd 40

31/07/2015 1:15:27 PM

Find someone to debrief with (hint: not a colleague or your life partner)

6

Working with a Toxic is a traumatic experience. Like any trauma, you will feel better when you debrief. Get a business coach. You can try a therapist, but a business coach is more likely to understand the environment you are in.

Alex’s therapist helped him get through his separation. So when his Toxic moved in to the corner office, he kept going to the same therapist. This was not his therapist’s normal territory. He changed to a business coach after listening to his therapist’s constant song that he should consider leaving corporate life and becoming an organic farmer like he always wanted to. He didn’t need that extra stress!

You wouldn’t ask your stockbroker for advice on your marriage. Don’t ask your relationship counsellor for advice on working in a corporate environment. Choose the right professional.

Angela engaged a business coach to help her outlast the Toxic in her company. It began as a “let’s get through six months till they work out what the Toxic is about”. It became a gruelling 12-month marathon. After 12 months even the coach began to tell her it was time to get on board or move on.

You need someone from outside your workplace to debrief with. Do not make the mistake of thinking a colleague can do it for you. Nor can your spouse, no matter skilled.

Your spouse should be your supporter, not your coach. Don’t put them through that!

7

Trying harder will not work

And finally, trying harder and doing what you’ve always done will not work.

Grab some political acumen, get someone to debrief with, make your team as effective as possible, do something differently. And keep that resume up to date so you always have an out.

Cindy Tonkin helps your team be more politically astute. Find out more at politicalacumen.com. au/wisdom/

www.hcamag.com

38-41_Toxic CEOs_SUBBED.indd 41

41

31/07/2015 1:15:35 PM

FEATURES

HR IN NOT-FOR-PROFITS

BUSTING MYTHS IN THE NFP SECTOR Despite tight budgets and often limited resources, the pros outweigh the cons in not-for-profit organisations – but that’s not to say HR practitioners in Australia’s 45,000 plus significant NFPs have it easy. One HRD is keen to clear the air

42

www.hcamag.com

42-45_NotforProfit_SUBBED.indd 42

31/07/2015 1:16:33 PM

THE NOT-FOR-PROFIT (NFP) sector suffers from a perception issue. In fact, from HR’s perspective, NFPs have struggled to overcome persistent myths. Historically, the perception has been that being an NFP doesn’t scream leading business practices, or that somehow the term ‘business’ within the walls of an NFP is unpalatable. This myth and several others have always annoyed Anne Paredes, director, people and performance, at NFP the Royal Institute for Deaf and Blind Children (RIDBC). She’s keen to bust some myths.

Myth 1 “Things have changed. I think in NFPs of old perhaps there was that lax approach to business processes, but now it’s really important that we’re leading the way. If anything, there is an expectation of more rigour as we have to be sustainable and responsible to our donor base,” she says.

The RIDBC is 155 years old and therefore has a donor base that is incredibly invested in how business operations are run.

While Paredes concedes that organisations in the industry are at differing points along this journey, she says the majority of NFPs would say the same thing: leadership is key.

The RIDBC chief executive and senior leadership team have a responsibility to connect the Institute’s 450 plus staff (and 1,100 volunteers) with RIDBC’s strategic vision for sustainability and growth. “As Australia’s second-oldest charity we are good at this, but there is a requirement to maintain our strong position,” says Paredes.

“We have a focus on upskilling our frontline employees with commercial ‘know-how’,” she adds. “RIDBC operates in a competitive healthcare sector, and our employees need to think about the bottom line as well as the charitable nature of their service provision.

We have to respond to the external impacts of a changing funding landscape – requiring us to focus on the capabilities and commercial skills of our staff.”

Myth 2 “It’s a misnomer that NFPs are not competitive,” says Paredes. “For many of our roles at RIDBC we lead the market – not just in remuneration but in an employee’s total package arrangements.”

Indeed, she adds that the reality is that in the current labour market every organisation is competing – NFPs and for-profits. “Just like for-profits, we are trying to attract the best

talent for the job,” Paredes says. She adds that it’s not really about NFP versus for-profit, but rather it’s about individual roles and competing with other employers for these roles.

“Proposed changes in the recent budget to salary packages will mean that organisations like ours will need to continue to be creative about EVP. Remuneration is key, but there are other things we can do.” (See box p44.)

HR IN NFP ORGANISATIONS Maxxia Workplace Insights’ Not-for-Profit Sentiment Study revealed several key insights into work life within NFPs. Among the highlights: NFP workers are more satisfied: 66% of NFP employees are very satisfied or extremely satisfied with their current role, compared with 56% of total workforce employees.

NFP managers are harder to keep: 50% of NFP managers have considered leaving their organisation, compared with 36% of managers in the total workforce, NFPs appeal most to specific demographics: Over-55s, women and part-timers are most drawn to the sector and once there are the most satisfied working in it.

NFP managers are harder to keep: 50% of NFP managers have considered leaving their organisation, compared with 36% of total workforce managers; and 34% of NFP managers have actively explored opportunities outside the organisation, compared with some 26% of managers in the total workforce.

SATISFACTION WITH KEY ASPECTS OF EMPLOYMENT Working environment 81% 72% Sense of achievement 80% 70% Sense of belonging 78% 67% Level of enjoyment 76% 67% Level of recognition 67% 62% NFP employees

Total workforce

www.hcamag.com

42-45_NotforProfit_SUBBED.indd 43

43

31/07/2015 1:16:35 PM

FEATURES

HR IN NOT-FOR-PROFITS CHANGES LOOMING Public health and NFP organisations that have traditionally had access to salary sacrifice concessions should be aware of changes announced in the 2015 Federal Budget.

Effective from 1 April 2016, the Meal Entertainment and Holiday Accommodation/Venue Hire benefits will go from each being uncapped, to being subject to a combined annual cap of $2,550. This cap will represent a reduction in the salary packaging benefits claimed by the typical public health and NFP employee who takes up these benefits. In addition to capping, the budget changes also mean that Meal and Accommodation benefits will now be reportable, which could potentially affect employees who pay the Medicare levy surcharge, child support and HECS/HELP obligations, or who claim incometested government benefits.

Paredes is mindful of providing a more holistic approach to the EVP. “People are really looking for what an organisation presents to them from a career challenge point of view, the types of clients they’ll be working with and the complexity of those cases, but also the

than that. There is a management challenge in this – we have a large and complex workforce and we still have to motivate, engage and connect.”

She notes the major issue for NFP leaders is to manage expectations and perception – getting the right people for the right reasons.

“It’s really important that an HRD can add value across a whole organisation, not just in the people space. It’s really easy to sit in that comfy HR zone, but you really need to push yourself to see yourself across the whole organisation.”

Paredes and her four HR colleagues work closely with CEO Chris Rehn, and she suggests there are certain fundamentals that define a CEO/HRD relationship. “It’s vital to have continuity of communication, and to respect each other’s roles, but it’s also critical to balance the information that you believe they need to know, to really arm them for their day, versus some things you might be able to just carry on yourself. Value their role and their time. Take them actions and solutions as opposed to just the problems. That’s the way to build credibility in the organisation.”

“I think the biggest myth about working in a not-for-profit is the idea that this is a place you might come to slow down and give back to the community” Anne Paredes professional development and opportunity to give people outside of that remuneration space.”

Myth 3 “I think the biggest myth about working in a not-for-profit is the idea that this is a place you might come to slow down and give back to the community,” says Paredes, who adds that she has never worked harder in her career than during her three years at RIDBC. “Yes, you can give back, and there is an intrinsic reward in being part of a community service organisation, but it’s a whole lot more

44

“I’m really lucky to be able to work in a role where I love what I do, I have a great team, and most importantly I am part of an organisation I feel passionate about. RIDBC is creating opportunities for thousands of current and future generations of people with hearing and vision loss, and I couldn’t be prouder to play my part in that journey.

“It’s one of the key drivers that retains and attracts talent to our organisation – the connection they have to our clients and their families as well as the work that we do is really evident.”

DID YOU KNOW? Maxxia’s research indicated a potential ‘perception gap’ between what NFP HR leaders and NFP staff consider draws employees to the sector and what might prompt them to leave.

As an example, 54% of NFP employees cited having the relevant skills and qualifications as a key reason for joining the sector, compared with 5% of NFP HR leaders who cited it as a key reason.

Conversely, positively impacting on people’s lives was the reason 60% of NFP HR leaders gave for staff joining the sector, compared with 56% of NFP employees who said this.

Other areas where the opinions of NFP HR leaders and employees were also very different provide insight into motivations which may deserve heightened attention when recruiting people to the sector.

REASONS FOR WORKING IN THE SECTOR Skills & qualifications 5% Flexible hours 35% 6% Work-life balance 35% 3% Job stability 28%

NFP employees Total workforce

3%

www.hcamag.com

42-45_NotforProfit_SUBBED.indd 44

D

EV 54%

Work that matters Speaking to Paredes and hearing her passion for her work is an eye-opener. The RIDBC is a charity and Australia’s largest non-government provider of education, therapy and cochlear implant services for children and adults with vision or hearing loss, their families, and the professionals who support them.

The stories Paredes tells about the people she works with having such a significant, lifechanging impact on those who need it can, in fact, raise goosebumps. She makes one realise how critical organisations like RIDBC are.

PR

31/07/2015 1:54:19 PM

BEST PRACTICE

EVP

WHAT GOES AROUND… Jovaline Lee, general manager, people and brand at Ansvar Insurance, writes that a successful business is not simply defined by profit margins and the bottom line; it also requires a commitment to the professional development of employees and an interest in assisting the wider community WE SPEND more time these days with our colleagues at work than we do with anyone else in our lives. With this in mind, it is important for corporations and workplaces to create an environment employees enjoy being part of. This can range from health and wellbeing initiatives to programs that create a progressive corporate

46

culture and foster team member development.

We recognise the importance of such programs to enable our professionals to be the best in the industry and have a long and successful career with us. Personal and professional development is a long-term commitment and we understand, and have seen firsthand, that our investment in

our team members provides the critical talent pool for shaping our culture, our company and more broadly the industry as a whole.

Diversifying the talent pool with professional development One such program we are very proud of is the Doxa cadetship partnership. This program is designed to assist talented young people (cadets) from disadvantaged backgrounds (who may have experienced financial hardship or personal tragedy) personally and professionally to allow them to secure professional roles in Australia following their graduate studies. As well as providing funding, the business also acts as a ‘corporate company sponsor’ providing eight weeks of work placement to selected cadets each year.

www.hcamag.com

46-47_EVP_SUBBED.indd 46

31/07/2015 1:18:28 PM

practical work experience through rotational placements in each division. The cadet is also assigned a mentor to provide professional support and guide them through their degree.

HR also plays a part in coordinating the program and offering career guidance. Such programs play a critical role in the wellbeing of our employees and help us to diversify and strengthen our talent pool.

Attracting and nurturing top talent is a multi-faceted exercise and these programs help the organisation to recognise and reward talent and potential. Investing in further education demonstrates to all our staff that the business values their contribution and is committed to taking their knowledge base and skill set to the next level. All young professionals in client-facing or core insurance function roles are supported to further their education in relevant disciplines.

Increasing the value of the knowledge our staff have means we’re future-proofing our organisation in the best possible way because the benefits are long term.

Beyond the corporate world: CSR Creating a progressive and nurturing corporate culture is not just about professional development.

Recognising the importance of work-life balance and fostering an environment where our team members know that we care about what happens

“Volunteering and giving back to the local and broader community can provide the team and the business with a well-rounded sense of purpose ” Jovaline Lee, Ansvar Insurance The nexus of this program and the objective guiding the approach was to provide opportunity and inspiration to the next generation of employees, regardless of any background or financial difficulty that may have previously challenged the growth of their career opportunities.

Cadets in their graduate studies acquire

beyond the workplace has equal weight in our organisation. Family, health, fitness and a general sense of wellbeing is absolutely essential in a happy, productive and invested workforce.

Community involvement and corporate social responsibility are also an integral part of developing a corporate culture that the entire team can be proud of. Volunteering and giving

back to the local and broader community can provide the team and the business with a wellrounded sense of purpose.

One program of note is our Community Education Program (CEP) Grants which support programs aimed at helping Australia’s youth. Since the grants were first awarded in 1994, we have contributed over $10m to education and life skills programs reaching thousands of young people. Through these programs, team members develop an immense feeling of satisfaction and a sense of contributing to their communities.

We are encouraging all organisations with outstanding youth programs to apply for a 2015 Community Education Program Grant because we want to promote their mission to support youth across the country.

Beyond profit margins Last but not least, programs such as parental leave and flexible work hours for both mothers and fathers ensures that parents do not feel compromised when it comes to balancing their career and their more important role as a parent.

Ansvar is committed to fair and equitable management of parental leave provisions and to facilitate re-entry into the workforce in a positive way, ensuring utilisation of parental leave does not prejudice employment or career progression. It is crucial our team members feel they are supported in all aspects of their lives.

This support will only lead to higher productivity and a feeling that they are an important and meaningful member of the larger team.

A successful business is not simply defined by profit margins and bottom line.

That’s not enough. Instead it should be defined as a place of business where people are proud to work and spend eight hours a day, five days a week. Team members are not just numbers on a spreadsheet but nurtured into valuable members of a larger team that not only contribute as a business, but as a community.

Ansvar Insurance is an insurance provider for the care, community, education, faith and heritage sectors

www.hcamag.com

46-47_EVP_SUBBED.indd 47

47

31/07/2015 1:18:32 PM

LEADERSHIP

HUMAN-CENTRED LEADERSHIP

PUTTING THE ‘HUMAN’ BACK INTO LEADERSHIP Paul Polman, global CEO of Unilever, knows it. So, too, do other leading CEOs: the key to their success is putting people first. Anthony Howard outlines how a human-centred approach to leadership does not need to be ‘fluffy’ or risk averse

“WE FACE an existential challenge,” said ‘Ian’ some years ago as we discussed his key challenges. As CEO of one of the country’s largest organisations he was unsure whether the business would survive the impact of a major natural disaster and was deeply concerned about how that would impact on its people.

The crisis created an opportunity to review the entire business model and change the way the firm operated. Under Ian’s leadership the firm shifted from a linear, evidencebased model to a purpose-driven firm that cares deeply about its people and customers.

They have broken down silo mentalities and

48

created a collaborative environment spanning functions, borders, industry and government.

The firm is deeply engaged in the community of which they are a part.

Although you may not be facing a natural disaster, you are facing a seismic shift in the way business operates. You are in a moment of great change, which requires a new approach to business and leadership. While many commentators look from a geopolitical, economic or strategic perspective, I look through a human lens and note two key challenges that depersonalise people and require a human response.

Economic framework Thinking about business and management has been built on an economic perspective that believes the purpose of business is to create shareholder value. In an economic world we measure, predict, make rules, and use systems and processes to deliver against KPIs, results and outcomes.

This approach leads to one of the great management myths: people are our greatest asset. In reality, we treat people as units of economic production, whose function is to deliver results as quickly and as cheaply as possible.

www.hcamag.com

48-49_Leadership_SUBBED.indd 48

31/07/2015 1:19:09 PM

In an economic world it is easy to treat people not as an asset but as a liability.

give them guidance towards their destination.

It explains why the organisation exists and gives meaning to your colleagues and clients.

The threat of artificial intelligence In the early 1960s Peter Drucker wrote an article called ‘The manager and the moron’, which talked about a new ‘dumb’ machine that would do all the low-end processing work and be available at all hours to do whatever you asked whenever you asked it. That computer has morphed into IBM’s Watson, which has the cognitional capability of a human brain and can process vast amounts of data at hyper speed. It is used, for example, by the Mayo Clinic to do medical diagnoses. In this world, the human person can become a mere object to Watson, a tool for completing a task.

2

You need to create a caring organisation in which people are more important than performance, and you recognise human beings and do whatever you can to contribute to their growth, development and wellbeing.

It is a collaborative organisation, rather than primarily a competitive organisation. Collaboration arises from an abundance mentality that believes there is sufficient for everyone, rather than a scarcity mentality that believes in limited opportunity and resources.

3

Rather than viewing progress or change through the eyes of technology, economics or politics, you can gain a much richer perspective by looking at the people in your organisation Recent reports suggest 5,000,000 jobs will disappear in Australia over the next generation because of artificial intelligence.

Watson and his descendants will do anything that may be automated – and that is almost everything, except for human-touch jobs – and they will do it in a non-emotional and probably morally neutral manner.

The changes being wrought by technology, and a number of other forces, give rise to two important questions:

What kind of organisation do you need to create to succeed in this environment?

Building on what made you successful in the past, you need to create an organisation that does four things well: It needs to be purpose-driven. A purpose endures over time and across generations. It is something like the North Star or a lighthouse sought by navigators to

1

Successful organisations will be firmly anchored in society. This is demonstrated

by Paul Polman, global CEO of Unilever, who is at the forefront of a movement that recognises business cannot prosper in a community that fails. He points out that businesses have to know what they are doing to contribute to solving the world’s problems.

4

Secondly, what kind of leader do you need to be to lead in the new world?

Future-fit organisations need humancentred leaders who put people first, who integrate the moral and technical dimensions of leadership, and who create an environment in which people can flourish. Leadership is firstly a relationship between two or more people. If there is no relationship, there is no leadership because you don’t have a follower. And because leadership involves people and decision-making, it has a moral dimension. Leadership involves supporting and choosing what is proper, not just

what is permissible – ie doing what is morally right, not just legally right.

‘Arjay’ had recently joined Ian’s executive team and related a story that demonstrated human-centred leadership. At his previous firm a colleague had reported on unforeseen events that meant their division would miss the forecast numbers. The CEO exploded with abusive, bullying behaviour that cowed all those around the table, and encouraged Arjay to seek employment elsewhere.

Arjay said the same scenario had unfolded during Ian’s executive meeting when one of the team advised they were unlikely to deliver their numbers. Arjay silently leant back and braced for an explosion. To his great surprise Ian paused and looked around the table.

“Bob is not alone in this,” he said. “We have a shared problem. What do we need to do to find a shared solution?”

Ian is a human-centred leader, building a human-centred organisation.

Rather than viewing progress or change through the eyes of technology, economics or politics, you can gain a much richer perspective by looking at the people in your organisation. The human person is the starting point for leadership, for activity, for proper outcomes.

In the face of depersonalisation brought about by economic models and rampant technology, we need human-centred leadership more than ever before. We need human-centred leaders to build the kind of organisation in which people can be treated as human beings, which respects its place in society, and which upholds what is right.

Human-centred leadership is the key to success in the 21st century.

Anthony Howard is an executive mentor and founder of The Confidere Group. Known as the ‘CEO Whisperer’, he is the author of Humanise: Why Human-Centred Leadership is the Key to the 21st Century (published

by Wiley, January 2015, $32.95).

For more information, visit humancentredleadership.com or email anthony.howard@confideregroup.com.

www.hcamag.com

48-49_Leadership_SUBBED.indd 49

49

31/07/2015 1:19:13 PM

OPINION

EMPLOYEE ENGAGEMENT

Profit is a by-product

– WHY EMPLOYEES MUST COME FIRST

Nicholas Barnett debates the eternal question: what comes first – employees, customers or profit?

WHAT COMES FIRST: employees, customers or profit? Fortunately, most experienced executives know that profit is actually a by-product of getting lots of other things right.

Most won’t pursue profits no matter the cost as that would mean both employees and customers are expendable. Cutting one or both might deliver profits in the short term, but it’s not a good recipe for achieving sustainable high performance.

So what about employees and customers?

Who comes first? This is a fundamental question not only for HR executives but for the CEO and the entire executive team. Their collective view will impact the way strategy is implemented and key decisions that need to be made.

Most executives think customers come first and employees second. This is a real concern as that view leads to poor implementation of strategy and poor decision-making. It’s the role of HR to understand this issue and build a compelling narrative to explain why employees come first and customers second.

HR executives should go as far as debating this with their CEO and executive team and getting them all on the same page, too.

Research that Insync Surveys has conducted involving over 1,000 employee and customer surveys shows that

50

organisations that achieve profitable growth start by investing in their employees.

Providing employees with clear direction and expectations, and empowering them to do their jobs well, leads to greater employee engagement and retention.

Insync Surveys’ Profitable Growth Cycle, as it’s known, continues with engaged

employees leading to stronger customer relationships, which creates greater customer loyalty and advocacy. Add to the mix an increase in productivity and innovation based on input from both engaged employees and engaged customers and you start creating a virtuous cycle of profitable growth as shown in the following diagram.

THE PROFITABLE GROWTH CYCLE Employee engagement & retention Employee empowerment & support

Customer focus & engagement

Productivity & innovation Owners/ shareholders investment & return Profitable growth

Customer loyalty & advocacy Source: Insync Surveys

www.hcamag.com

50-51_Opinion_SUBBED.indd 50

31/07/2015 1:19:41 PM

HR executives should help their CEOs and executive teams understand that their employees won’t look after the organisation’s customers until the organisation looks after its employees.

It is important that the fundamental principles of our Profitable Growth Cycle are thoroughly debated and then agreed upon so they can be used to guide the organisation’s strategic and business plans, initiatives and all key decisions.

high performing organisations from low performing organisations.

The 7 business habits: 1. Live an inspiring vision 2. Communicate clear strategies and goals 3. Develop your people 4. Go out of your way to recognise people 5. Genuinely care for your people 6. Listen and adapt to your customers’ needs 7. Continually improve your systems

“Most executives think customers come first and employees second. This is a real concern as that view leads to poor implementation of strategy and poor decision-making” HR has a critical role in driving this cycle and keeping the flywheel spinning.

Supporting employees is not about a few short-term quick fixes. It’s about building certain habits deeply into the culture and DNA of the fabric of the organisation.

In some further research conducted

by Insync Surveys involving the views of over 100,000 employees from around 200 organisations, we’ve found that there are seven habits that differentiate

CEOs who simply put profits first will fail when it comes to the first business habit. This habit is the single biggest differentiator of high and low performance organisations. To simply have a vision of making more money for the shareholders won’t inspire employees to work harder and to put in extra discretionary effort.

Most employees, and in particular younger employees, seek something with far more purpose and meaning.

Habit 2 sounds simple but our research showed that 76% of the employees of low performance organisations said they couldn’t easily refer to a list of their organisation’s main goals. The figure was better, but still just 46%, for high performance organisations.

This makes it very hard for an employee to understand if their efforts are assisting their organisation achieve its objectives if they don’t know what those objectives are.

The research has found that HR has a role in habits 1 and 2 but habits 3, 4 and 5 are very much their domain.

While many CEOs and executives say that their people are their greatest asset, it is HR’s role to ensure that reality matches those words. They must ensure that business habits 3, 4 and 5 become a way of life for the CEO and executive team as only then will those habits have a chance of being cascaded down through the entire organisation.

But beware. The 7 habits are not a smorgasbord where you choose the ones you like. They are all inter-related and indispensable to achieving high performance. Poor implementation of one will undermine the implementation of others. Deeply embedding all these habits will have many side benefits including making your organisation a better place to work, improving employee engagement and retention, customer loyalty and advocacy, productivity, innovation, organisational resilience and change capability. All of these factors are also inter-related and build on each other to increase your organisation’s performance even further.

Nicholas S. Barnett is a director, business leader and strategist with over 35 years’ experience. He is CEO of Insync Surveys and passionate about helping individuals, teams and organisations reach their full potential. Nicholas is also the author of the new book, ‘7 Business Habits That Drive High Performance’ (Major Street Publishing, $29.99). For more information visit insyncsurveys.com.au

www.hcamag.com

50-51_Opinion_SUBBED.indd 51

51

31/07/2015 1:19:46 PM

HR STRATEGY

VISION

SKY TO GROUND Too many business projects that never get finished … initiatives that fail to create the breakthrough that was expected … silo behaviour that slows down agility and adaptability … Sound familiar? Each of these may well be a sign of the inability of leaders and teams to apply ‘Sky to Ground’ thinking to business challenges, according to Graham Winter

SKY TO GROUND is the capability to think and act from broad vision and context through to intricate detail and back again on any type of business initiative.

The need for this style of thinking and action is nicely captured in the comment by the CEO of an Australian Bank: “We need to do three things at once: Keep the lights on, deliver the transformation agenda, and find a way to leverage and disrupt all that.”

Have you noticed that most managers can methodically climb down from vision to detail but few can channel backwards and forwards? For example, how many managers in your business are reasonably strong on vision and strategy but let you down on detailed execution, and how many can be relied on to manage detail but miss the signs (such as risk or lack of engagement) in the wider context?

Think of three recent Australian prime ministers and you should quickly get the idea!

Breakthrough strategy Three fundamental points help to explain the notion of Sky to Ground and why it is rapidly emerging as a breakthrough business strategy:

1

Complexity rules

There is a profound difference between initiatives that are largely technical and can be planned and managed in a methodical (linear) fashion, and those that are complex, adaptive

52

and need to be managed through nimble learning and response.

2

Structure is obsolete

The vast majority of organisations are structured to handle technical initiatives rather than complex adaptive issues. If you doubt this, just reflect on the five biggest challenges faced by your business or team. Do they fit neatly into the organisation structure, or do they demand flexible cross-silo, cross-hierarchy attention?

have uncompleted initiatives, failure to achieve breakthrough solutions, and frustrations between technical functions (business units).

The head of people and performance at one of the nation’s leading universities remarked: “What else can we expect when we treat adaptive challenges as technical, we give protective ownership to experts in silos, and we provide leadership development, change management and performance management that does little but reinforce the problem?”

Have you noticed that most managers can methodically climb down from vision to detail but few can channel backwards and forwards?

3

Capability is limited

Few people have the behavioural style/ temperament and/or the intellect to think and act ‘sky to ground’ at the performance level needed in globally exposed businesses (ie every business). The range of challenges is not aligned to typical temperament preferences, and the thinking puts great demands on abstract intelligence (which experience does help to moderate in many environments).

The harsh reality Most leadership teams need only a cursory glance at the Sky to Ground model to realise why they

It is not surprising that leading organisations are seeking better ways to build the capabilities to think and act ‘sky to ground’.

Better than a known way At least two Australian universities, some internationally focused businesses and even government agencies have launched Sky to Ground initiatives. Most are following the four steps summarised as instructions below:

Step 1. Give accountability to small smart teams Form teams of no more than eight people who

www.hcamag.com

52-53_SkytoGround_SUBBED.indd 52

31/07/2015 1:36:09 PM

Impact and opportunity

SKY

1

3

Create specifications/project plans Establish governance Oversee the management of initiative

Develop concept and possibilities Scan for threats and opportunities Lead across boundaries

2

4

Build to specification Minimise waste Close out/complete

Debrief – learn –adapt Test new models/concepts Move to technical as appropriate

Complex/Adaptive

Technical/Linear

Vision/Context

Detail

GROUND

act like the core of what management guru Charles Handy once described as the ‘inside-out donut’. Give them accountability to take a selected initiative ‘from sky to ground’.

Step 2. Create the performance and learning loop Set up the team to learn and adapt fast while managing risk and return. Do this by defining an operating framework and rhythm built on a nimble learning loop that includes planning, co-creation, debriefing and adapting. This is called governance in the ‘old world’.

Step 3. Instil core capabilities for thinking and acting ‘sky to ground’ Learn and apply core capabilities that enable the team to move ‘sky to ground/ground to sky’ as fast as the business environment requires.

Prioritise capabilities that enable people to expand their ability to move across the four dimensions while leveraging others’ capabilities so they can genuinely work sky to ground.

Following are examples of the core capabilities (supported by tools).

1. Co-creation: How to engage with your

colleagues and teams to enable genuine co-creation.

2. Problem-solving and decision-making: How to embed shared language and tools.

3. Self-awareness: How to gather feedback that boosts awareness of Sky to Ground strengths, weaknesses and impacts on colleagues.

4. Fast learning: How to embed action debriefing and reflection into daily activities.

Step 4. Drive change in defined blocks of time Implement the initiative in a defined timeframe to provide focus on task and capability development. (Most programs are defined in 12-week activities or increments because teams have time to deliver results and gain capabilities and learnings.)

Provide support from a coach and use engagement platforms such as social business toolkits that companies like IBM are designing to support these adaptive initiatives in better ways than currently happens with standard intranets.

Sky to Ground initiatives have a substantial impact on organisations because many more people are engaged by the small smart team in co-creation activities.

This spreads the methodology and tools in a much faster and potentially more powerful way than current leadership and team development approaches, while delivering business results at the same time.

The development of social business tools offers great potential here because organisations use their initiatives to create ecosystems in which they can bring in anyone to co-create the initiative and take it successfully from sky to ground.

This builds communities in ways that cannot happen in linear, meeting-driven environments.

This approach offers enormous possibilities for HR professionals to have a genuinely strategic impact on the organisation. From recruitment through talent management and into the key areas of employee engagement and culture, the imperative to develop Sky to Ground skills and capabilities is arguably one of the keys to future success.

Here are a few questions to reflect on: • How nimble is your organisation at moving between the quadrants in the Sky to Ground model?

• What strengths and gaps does this model suggest about your managers and team leaders?

• How can you develop Sky to Ground capabilities by using real business initiatives?

Perhaps it is time for you and your colleagues to spend a few hours working through this opportunity: from sky to ground!

Graham Winter is an Australian psychologist and best-selling author of Think One Team and First Be Nimble. Contact him at graham@thinkoneteam.com.

www.hcamag.com

52-53_SkytoGround_SUBBED.indd 53

53

31/07/2015 1:36:14 PM

PEOPLE

IN PERSON

KATE COWMAN It’s now one of the most well-known brands in the world, but just three years ago LinkedIn was starting out on its journey. HRD chats to Kate Cowman, senior HR business partner talent solutions, APAC, about the latest developments

HRD: How did you first enter the HR profession and what initially drew you to it?

Kate Cowman: My entry into HR was through an administration role in the area of L&D. At that time, I hadn’t even thought of HR as a career option. I was fortunate to gain great exposure with some very talented HR managers who supported my career, and my study through MGSM, to enable me to pursue something I am truly passionate about.

HRD: How did your early career roles prepare you for your role at LinkedIn? KC: I’ve had some amazing opportunities to work in companies that have provided exposure to diverse challenges at different stages of their growth and size. These roles

opportunity to test new ideas and take intelligent risks.

HRD: LinkedIn has shaken up how people network, and it has been something of a ‘challenger brand’. Does the company want to retain that sort of culture internally?

KC: Definitely we want to maintain the start-up mentality; however, we also need to ensure our programs can scale as we grow. Pat Wadors, our senior VP of global talent organisation, tells us there is a cost of saying yes. We need to be more considered about supporting programs that have a greater business impact. We continue, however, to leverage our culture and values to keep us nimble, and this year we have challenged each

“If I look at the organisation today, 77% of people have joined since I started three years ago” have enabled me to adapt and be flexible; to partner with the business to shape the talent strategy and operationalise it. When I joined LinkedIn, it was in a hyper-growth state. My experience in the financial and insurance sectors helped me to build an organisation in Australia that we could scale for growth and adapt to change. It also gave me an

54

and every employee to take an intelligent risk.

I think the power of the culture and values at LinkedIn continues to keep us focused and relevant.

HRD: How do you manage to compete for talent with the likes of Google, Atlassian, Facebook, etc?

A taste of Australia: LinkedIn’s new headquarters in Sydney

KC: I’ve been here three years now and there isn’t a month that I don’t hear a new starter comment: “I can’t believe how great the culture is here”. Our mission is to connect the world’s professionals to make them more productive and successful, and that translates into the workplace through our culture. We believe in transformation of self, company and the world. People are attracted to LinkedIn because they want to make this difference, for themselves in their own careers; to support their colleagues to achieve and grow; and enable their customers to

www.hcamag.com www.

54-55_InPerson_SUBBED.indd 54

31/07/2015 1:36:53 PM

HRD: What’s the biggest people-related challenge you’re facing here in Australia?

KC: Talent is our number one priority. If I look at the organisation today, 77% of people have joined since I started three years ago. The challenge is to remain true to our culture as we grow, and to continue to attract the right people that make LinkedIn truly a great company today and into the future. Thanks to the amazing platform we have, we are using LinkedIn data and analytics to inform our HR decision-making. We continue to invest in developing an inclusive environment that encourages diversity of ideas and people.

HRD: What’s the best piece of advice you’ve ever received, and can you apply it to your working life?

KC: Our global CEO Jeff Weiner often talks about work-life harmony rather than work-life balance. However, I do think it can be a challenge to switch off when you love what you do. I think the best advice was to make your own boundaries and be OK with them – I make sure the teams I work with are aware of what is important to me in this regard. It is a constant battle, but I have wonderful colleagues who support me in making this happen.

HRD: Finish this sentence: ‘What I enjoy most about HR is…’

KC: …the constant challenge and learning, and that you know that you are making a difference to the company, to the teams and also to individuals.

leverage LinkedIn for their business. Beyond this, they want to make a positive and lasting impact on the world through our community initiatives such as LinkedIn for Good and also operationalising our vision for the Economic Graph. Launched in 2013, the Economic Graph aims to digitally represent every job available globally. It will include not just job listings but all the skills required to get those jobs, as well as detailed profiles and data on all the companies and universities around the world, in addition to profiles of three billion professional workers globally.

HRD: Finish this sentence: ‘What I enjoy least about HR is...’

KC: …there is never enough time to do all you would like.

HRD: What do you enjoy doing outside of work?

KC: I have a seven-year-old, Finn, and I travel frequently, so time together as a family is important. Whether we are cheering at the side of a rugby field, playing soccer together or cooking, it is delightful and enlightening to see life through a child – a great perspective and recharge for me.

KATE COWMAN’S CAREER TIMELINE Qualifications Post-diploma human resources, Macquarie Graduate School of Business

Mar 2004–Sept 2005 HR consultant, GE Capital

Mar 1998– Dec 2003 HR consultant/ various HR roles, AMP

Aug 2005–Apr 2008 HR business partner, Challenger Financial Services Group

Sept 2009– Nov 2011 HR manager, World Nomads Group

July 2012–present Senior HR business partner talent solutions, APAC, LinkedIn

Nov 2011–May 2012 Head of HR, IMC Pacific

www.hcamag.com

54-55_InPerson_SUBBED.indd 55

55

31/07/2015 1:36:57 PM

PEOPLE

HEAD TO HEAD

GOT AN OPINION THAT COUNTS? Email hrd_editor@keymedia.com.au

What are employers doing today to decrease the likelihood of ‘psychological injury’?

Ken Buckley CEO Healthworks Organisations are realising that one-off interventions to prevent psychological injury, such as a workshop, do not solve the problem. Forward-thinking organisations are developing whole wellness frameworks to build positive, open cultures where employees feel that their mental health is supported and protected. Employers are beginning to understand that there’s limited benefit in improving individual employees’ health if they’re working in an unhealthy organisational culture.

While there are pockets of industries with a ‘go hard or go home’ attitude, increasingly workplaces are looking for strategies to build a healthy culture.

These can start small and grow incrementally, but need to be genuine and supported from the top down.

Geoff Dutaillis Group head of sustainability Lendlease As leaders in developing the built environment, we are also investigating how that environment contributes to wellbeing.

Our Global Health Workplace Insights Assessment measured the health of Lendlease’s 12,600 employees. In Australia, it revealed that 9% of employees were likely experiencing work-related stress and 16% were at high risk of developing depression.

Our Health and Wellbeing Framework delivers programs on employee health, from preventative measures, such as mindfulness and resilience training, to active intervention and support seen in programs like Mental Health First Aid and our return-to-work program, Circle of Care. Lendlease Group CEO and MD Steve McCann is also ambassador of the Mentally Healthy Workplace Alliance Initiative, ‘Heads Up’, in partnership with beyondblue.

Jeremy Hyman Director The Tristan Jepson Memorial Foundation As part of our commitment to support psychologically healthy workplaces in the legal profession, we’ve introduced the TJMF Psychological Wellbeing Guidelines for the Legal Profession. Their purpose is to provide a resource for those within the Australian legal profession by using evidence-based approaches to promote a psychologically healthy workplace.

They are intended to support lawyers, law firms and others working in the profession to raise awareness of mental health issues, and to understand the initiatives and methods of management that assist in the creation of psychologically healthy workplaces.

They also recognise the value of providing specific guidance tailored to the particular workplace issues that arise in the legal profession.

PSYCHOLOGICAL WELLBEING Psychological issues such as depression, anxiety and burnout are common in Australia: 45% of adults will experience mental illness at some point in their lives. The cost to business is alarming: 3.2 days per worker are lost each year due to workplace stress, and businesses lose over $6.5bn p.a. by failing to provide early intervention/treatment for employees.

56

www.hcamag.com

56_HeadtoHead_SUBBED.indd 56

31/07/2015 1:54:54 PM

IBC.indd 57

31/07/2015 4:48:12 AM

OBC.indd 1

31/07/2015 4:50:26 AM