HUMAN RESOURCES DIRECTOR HCAMAG.COM ISSUE 14.5
HOW’S YOUR MORAL COMPASS? A roadmap for ethical decision-making
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EDITORIAL www.hcamag.com MAY 2O16 EDITORIAL
SALES & MARKETING
Editor Iain Hopkins
Marketing & Communications Manager Lisa Narroway
Journalists Victoria Bruce John Hilton Production Editor Hayley Barnett
ART & PRODUCTION
Business Development Managers James Francis Steven McDonald Lisa Tyras
CORPORATE
Design Manager Daniel Williams
Chief Executive Officer Mike Shipley
Designers Marla Morelos
Chief Operating Officer George Walmsley
Traffic Coordinator Lou Gonzales
Managing Director Justin Kennedy Chief Information Officer Colin Chan Human Resources Manager Julia Bookallil
EDITORIAL ENQUIRIES iain.hopkins@keymedia.com.au
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How’s your moral compass? I OFTEN ask the CEOs I interview whether they expect something different from their head of HR – something they perhaps would not get from their other executive team members. It might be a different perspective or insight. Perhaps, for example, the ‘human’ in human resources means they should be more attuned to the ethical or moral concerns of employees. Of course, HR professionals cannot make claims to being morally or ethically superior to anyone else – they are human after all – but it does pose an interesting broader question about business in the 21st century. Where do ethics, morals and integrity fit in today’s modern workplace? It’s something this month’s profiled HR professional, Suzette Corr, has dwelled on. She has even been inspired to develop a roadmap for ethical decision-making. Central to this roadmap is integrity. Corr’s insights make for interesting reading. Her personal take on
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“Where do ethics, morals and integrity fit in today’s modern workplace?” integrity, for example, is the drive to do what’s right. “It’s to advise without fear or favour and to have the moral character to not just know right from wrong, but to speak up and challenge as necessary,” she says. However, she’s the first to admit this is easier said than done. Human beings are hardwired for bias and we often can’t be relied upon to be rational. Nor can we be relied upon to be fair. Worse still, we are often not aware of the biases that influence our decisions. So what can HR do? For one thing, consider that in Australia and globally, HR directors lead tens of thousands of HR professionals, impacting organisations with hundreds of thousands of employees with millions of customers and stakeholders. The potential ripple effects are significant. As Corr asks: “Imagine the powerful force for good HR could be if the people in HR, whose profession is humans, embraced an understanding of ethics and integrity and spoke up to ensure the right thing was done?” Few could argue that would not be a better world in which to live.
Iain Hopkins, editor
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CONTENTS
HRDirector_au +Hcamag HumanResourcesDirector
UPFRONT 01 Editorial
40 FEATURES
BEST PRACTICE INTERNSHIPS
HR director Graeme Smith outlines how tobacco giant Philip Morris International attracts young talent
20 COVER STORY
HRD EMPLOYER OF CHOICE
HRD’s second annual Employer of Choice Awards have been voted on by the people who matter most: employees. Find out who’s leading the pack PEOPLE
MORALS AND ETHICS
42 FEATURES
THE RISE OF INTRAPRENEURIALISM How can you unleash the traits of entrepreneurs in your workplace? One expert has the answer
The DNA of an HR director
06 News analysis
As the workforce changes, so too is the nature of workplace discrimination claims
08 Upfront: Technology Upskilling for a STEM future
10 Upfront: Employment law
PEOPLE 16 Head to head
What skillset would you like HR professionals of the future to develop?
54 Career path
Dearne Price was recently named the new head of HR, APAC for technology firm IRESS. This is her career path
56 Other life
Patrick Hollingworth is a TEDx leadership speaker and author. On the side, he’s a keen mountaineer
46 FEATURES
WHEN IS A TEAM NOT A TEAM? Simply naming a group of people a team does not cut it – let alone when your objective is to create a high-performing executive team. Justin Peckett explains
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04 The data
An employee’s victory over her employer as a result of an adverse action ruling serves as a timely reminder to HR professionals
HRD chats to Suzette Corr, who has developed how HR can play a major role in ethical decision-making
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Where do ethics, morals and integrity fit in today’s modern workplace?
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THE DATA
MAY 2O16
THE DNA OF HR LEADERS
North America
24%
A recent report has shed light on the key traits, backgrounds and skills possessed by the region’s leading HR professionals WHAT MAKES for a successful HR leader? What experiences have helped them land the top HR role in their organisation? What traits have helped them become successful, and looking ahead, what challenges do they face? These were some of the questions asked in recruiting firm Hays’ report, The DNA of an HRD. In summary, HR directors are resilient and collaborative, work 46- to 55-hour weeks and rarely commence their career
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percentage of HR directors who are female; 60% of HRDs are aged 41-55
in HR. They believe that aligning strategic requirements with the operational budget and workforce will be their biggest business challenge this year, while designing and managing organisational change will become a bigger part of the role in future. They also advise the next generation of HR leaders to be commercially aware. The report surveyed 461 HR directors in Australia and New Zealand. Here are some key findings.
46 to 55
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the standard number of hours worked each week – 49% work 46 to 55 hours and a further 26% work more than 56 hours each week
percentage of HR directors who have always worked in HR – indicating many undertake a career change
ESSENTIAL BUSINESS SKILLS
CAREER DEVELOPMENT
A significant 52% of surveyed HR directors said commercial acumen was the most important skill for an HR professional to have, and 57% said up-and-coming HR leaders need to be commercially aware and ‘good business people’. There are two sides of the argument when it comes to how an aspiring HR director should gain commercial acumen. One side says you must work outside HR to gain true business understanding, while the other side says if you are openminded enough, you do not need experience outside HR.
Trish Butler, GM, HR of global wealth, group innovation and group marketing at ANZ, said that while there is no one path to director level, a commitment to learning is essential. “Study, put yourself in new situations and take on challenges,” she suggested in the report. “Everyone gets to HRD in different ways, but they do it by accumulating knowledge and networks.” Encouragingly, 68% of those surveyed said if they had their time over again, they would still choose the profession – and most would either like to stay in their current post or take on a bigger HR role in future.
53%
Stakeholder engagement
52% 48%
Commercial acumen Strategic planning
68%
have recently attended a networking event to meet other HR directors
32% 31%
People management Change management
0
66%
like to stay up to date with industry and legislative changes
Almost all (96%) are on LinkedIn yet only half (50%) use social media to network.
10%
Operational effectiveness
4
47
percentage of HR directors who have worked outside Australia and New Zealand at some point in their career
WHERE HAVE YOU WORKED OUTSIDE OF AUSTRALIA/ NEW ZEALAND? Forty-seven per cent of HR directors have worked outside Australia and New Zealand at some point during their career. The large majority (96%) say this overseas experience has benefitted their career.
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20
30
40
50
60
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UK
51% Asia
40% Europe
18% TENURE AND PROMOTIONS To become HR director requires experience and hard work: 59% have more than 16 years’ experience in HR and 54% received four or more promotions before becoming HRD. During this time, 26% worked for two or three organisations, 39% worked for four to five and 30% worked for six or more. Just 5% stayed with the one employer.
Middle East and Africa
16% UPCOMING BUSINESS AND PROFESSIONAL CHALLENGES
WORK-LIFE BALANCE
Linking strategy to budget and the workforce was a recurring theme for surveyed HR directors. Anna-Lisa Chivers, HR director Australia and New Zealand at Goodyear Dunlop Tyres, commented: “The most important trait is to be pragmatic in regards to what is feasible and possible, and what isn’t. You also need to be authentic. People value you more when you say something isn’t possible and why, rather than giving a sugar-coated view of the world.”
HR directors are a hard-working group with 46to 55-hour working weeks the norm.
49% 46- to 55-hour working week
Here are the key business challenges identified for the next 12 months:
26% More than 56 hours each week
54%
aligning strategic requirements with the operational budget and workforce
50%
company culture
46%
employee engagement
Outside of work, HR directors are generally active:
72% play sport or exercise in their spare time
HR directors also shared their professional challenges for the next 12 months:
89% like to socialise with friends
20%
achieving company objective
13%
demonstrating ROI from the HR department
12%
achieving buy-in and support from the board or executive level to implement HR strategy
and family
51% like to travel
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UPFRONT
NEWS ANALYSIS
A NEW ERA OF WORKPLACE DISCRIMINATION As the workforce changes, so too is the nature of workplace discrimination claims. What do HR professionals need to know? DAMAGES AWARDED by courts in relation to sexual harassment and workplace discrimination claims continue to rise – but less documented is the changing nature of the claims being brought against employers. Karli Evans, special counsel at Maddocks, says her firm has seen new discrimination claims emerging, particularly around flexible work requests, addiction (including gambling, drugs and alcohol), lawful sexual activity and sexual orientation. Concurrently, more than ever before, the courts are willing to recognise that the impact of discriminatory conduct can be devastating on an employee, and orders for damages in the hundreds of thousands of dollars is the new norm. Evans says that whilst discrimination can occur in a number of contexts, the workplace remains a hot spot. Most claims relate to disability discrimination, followed by race, sex and (least likely) age. However, as the boundaries between recreation and work have become increasingly blurred, a new wave of discrimination claims has emerged, which employers are struggling to manage. For example, as employers increasingly offer flexible work practices to attract and retain talent, employees have been prepared to challenge employers who refuse to
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accommodate part-time work requests or other adjustments to a traditional 9-to-5 role. In addition, employees struggling with addictive behaviours, those who engage in workplace relationships and those who participate in external extra-curricular activities which are perceived to be counter to organisational values, are proving to be a challenge for employers to moderate.
to absences or poor performance at work,” she adds. “In dealing with situations that involve potential disability discrimination claims, employers routinely make fundamental mistakes which make it extremely difficult for them to avoid liability. Often these errors centre on their failure to comply with the obligation to consider ‘reasonable
“In dealing with situations that involve potential disability discrimination claims, employers routinely make fundamental mistakes which make it extremely difficult for them to avoid liability” Karli Evans, Maddocks Addiction in focus Whilst the position regarding addiction remains unclear, Evans says the courts have acknowledged that a drug, alcohol or gambling problem is often due to mental health issues, which is readily identifiable as a disability. “An increasing number of employees who struggle with these issues are bringing claims where their employment is terminated due
adjustments’ to a role, before terminating an employee.” For employees who have a physical or mental impairment, most employers fail to accurately identify the key requirements of the employee’s actual role, and what adjustments might be made to retain the employee within the business. Recent cases highlight some of the errors
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IS DRUG ADDICTION A DISABILITY?
employers make, including the failure to have a comprehensive job description in place, failure to ask the right questions of medical experts and poor treatment of the employee in the process of dealing with their capacity to perform the requirements of their role. The courts in some instances have been particularly scathing of employers who terminate ill or injured long-serving employees without communicating properly during the process, or those who take an extremely ‘narrow’ approach to the requirements of the employee’s role. Evans suggests employers will need to develop new policies and processes, and train frontline management, to ensure that the management of employee conduct does not infringe on personal lives. Employers also need to recalibrate their approach to ‘new’ forms of disability, including the extent to which they accommodate absences and treatment plans, and identify reasonable adjustments to a role.
Changes on both sides On the other side of the coin, it’s also clear that employees have had their fair share of recent high-profile losses. “The courts have not been prepared to allow delayed claims to be brought where there is no justifiable reason for the delay,” says Evans.
Similarly, employees who cannot sufficiently produce probative evidence to show that their treatment, such as termination or failure to be promoted, is due to a ‘protected attribute’, will not succeed in their claims. Unlike the adverse action provisions in the Fair Work Act where a reverse onus applies on employers, this imposes a heavy burden on employees. “In a recent case, the court ordered a university professor to pay $900,000 in indemnity costs when she failed to prove her sexual harassment claims and refused a reasonable offer of settlement made by the employer early on in the proceeding,” says Evans. “This example and other decisions show that the courts are prepared to make hefty costs orders against employees who have been unimpressive witnesses and failed in their claims.” There is also a preparedness in the current environment for courts to find that there is no obligation on employers to create a ‘perfect working environment’ for every employee with a disability, regardless of the cost of accommodating that disability in the workplace. “The courts will take a pragmatic approach,” Evans maintains. “That said, employers will continue to deal with new frontiers in claims as they struggle to manage new issues emerging in the modern workplace.”
The Federal Court has confirmed that dependence on opioids (such as methadone or heroin) is a disability under the Disability Discrimination Act 1992 (Cth) (DDA) (Marsden v HREOC [2000] FCA 1619). As a result, it is unlawful under the DDA for an employer to treat an employee or prospective employee less favourably than the employer would treat someone else because the person is addicted to opioids, has previously been addicted to opioids, or because the employer has imputed opioid addiction to the person. An employer may also breach the DDA by failing to make reasonable adjustments for an employee with an opioid addiction or by requiring an employee to comply with an unreasonable requirement or condition that he or she cannot comply with due to an opioid addiction. It is also arguable that other types of addiction (such as other drug and alcohol addiction, and possibly gambling addiction) constitute a disability under the DDA. When determining how to manage an employee who has disclosed an addiction or whose performance or behaviour may be caused by, or related to, an addiction, Maddocks recommends employers consider: »»Developing a drug and alcohol policy »»Whether a drug testing policy is reasonable and appropriate given the workplace and the work done by particular employees »»Providing leave and other support to employees receiving treatment for addiction »»Placing limits on the availability of alcohol at work-related functions and events »»Watching out for employee behaviour that may indicate drug or alcohol addiction, such as: absenteeism; excessive leave or lateness; low productivity; poor concentration, judgment and decision making; excessive or unreasonable aggression; and deterioration in relationships with colleagues »»Obtaining medical advice to determine whether an employee’s addiction is caused by an underlying disease or disorder, the employee’s ability to perform the inherent requirements of his or her role in light of the addiction, and any reasonable adjustments required to enable the employee to perform the inherent requirements of the role.
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UPFRONT
TECHNOLOGY NEWS BRIEFS Policing social media is worth it: Survey
While some employers have taken a more relaxed approach to social media use at work in recent years, a new survey may force a rethink. Officebroker.com surveyed 1,150 workers and found 72% of respondents admitted to checking their Facebook while at work and 81% said they try to hide their unproductive online activity from others. The survey also found that 35% of employees confessed to spending over an hour of every workday on Facebook. On average, employees visit the Facebook apps or website 13.8 times during the workday, for two minutes and 22 seconds each time.
Building STEM-ready future workers
Australia’s biggest robotics competition, the FIRST Robotic Competition, saw more than 1,000 students from around the world participating in a robotbuilding competition. Macquarie University vice chancellor Professor S Bruce Dowton said it’s in the interests of all Australians to create pathways to pursue STEM fields into further study, careers and entrepreneurship. “Almost half of all employers expect requirements for STEMqualified employees to increase in the next five years alone,” he said. “Continued education in this space is vitally important to ensure Australia’s workforce will have the ability to support future industries.”
Future of work revealed
A research paper from tech consultant Cognizant indicates that people, not just machines, will power digital innovation. For example, insurance companies will need to employ augmented reality designers as drone technologies force a redesign of the claims management process (and retrain staff to make
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sense of the results). Retailers will seek out avatar programmers or ‘fusionists’ who combine art, engineering, research and science. The report predicts that office environments will become increasingly reactive to the people that sit in them, as desks and seating randomly move around to encourage collaboration and lighting adjusts to reflect moods.
Open-plan layouts highlight IT security
Research by recruitment company Robert Half has found that 86% of Australian chief information officers (CIOs) see open-plan office layouts as being potential threats to corporate data and IT systems. Today’s dynamic open workspace can involve communal standing desks, walking desks, and the concept of ‘hot desking’, which shy away from the traditional cubicle walls. Audible security (employees, third party vendors, etc overhearing sensitive information), visual security (employees, third party vendors, etc seeing sensitive information) and increased risk of device theft were highlighted as key concerns by 79% of CIOs in large companies.
Get ready for ‘digital humanism’
The newest wave of technology will be focused on people – hardware and software – that affects everyday life, whether it’s communication, entertainment or more and better insight through big data. Betsy Burton, vice president of the global research company Gartner, said the focus was on “digital humanism”. “This is the notion that people are the central focus in the manifestation of digital businesses and digital workplaces,” she said. Other major 2016 trends include automation and the digitisation of the HR industry. Meanwhile, 2015’s hot markets – wearables and cloud – will continue to expand as the industries develop.
UPSKILLING FOR A STEM FUTURE The government is backing a digital future. Is there anything HR can do to facilitate this? The National Innovation and Science Agenda (NISA), announced in November 2015, was a pivotal moment on Australia’s path towards a digital future. Likewise, the 2016 Federal Budget reiterated the government’s commitment to building IT skills, provision of funding for cybersecurity, and tax benefits to SMEs – usually seen as the hotbeds of digital innovation. “The confirmation of funding for the Government’s recently announced cybersecurity strategy is welcome, and in particular the strong focus on developing the critical IT skills needed in this sector,” said Australian Computer Society president Anthony Wong following the budget announcement. However, it’s rapidly becoming apparent that Australia’s STEM skill capabilities may not be up to the task. The country is falling behind on a number of key STEM indicators: the number of Year 12 students studying STEM subjects is declining; STEM university completions have plateaued; and businesses are struggling to find STEM employees. What can HR do to address this dearth of appropriate skills? Fiona Sweeney, Australian and New Zealand director at Pluralsight, suggests that for many reasons, upskilling existing employees is undoubtedly the preferred option. “Not only are you tapping into a pool of talent that has already demonstrated their value to the company, but you’re also more likely to boost employees’ job satisfaction and build a strong company
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culture that can attract further talent who shares the organisation’s values,” she says. However, the old methods of upskilling are not necessarily the best for today’s STEM workforce needs. Static, one-time-only classroom lessons cannot deliver on the needs of today’s worker. “The modern employee craves immediate access to information so they can resolve work-related problems when they need to, whether on the job or on the move. Nowadays workers want up-to-date dynamic content and knowledge from diverse specialists. They want it in a searchable format of their choice so they can digest a short burst of content to
“The country is falling behind on a number of key STEM indicators” help solve problems quickly, and on a device of their choosing,” Sweeney says. Sweeney suggests on-demand learning can give employees control over their own upskilling. In addition, learning at the point of need helps individuals save time, discover more effective processes and be more productive. HR should consider the following questions before making a decision on the most suitable L&D options: • Is the content varied enough to serve all skill levels? • Is the content easy to navigate? • Is it up to date? How often is it reviewed and updated? • Has it been developed by experts in the field? • What support is available?
Q&A
Toni Jackson Director APAC SAP FIELDGLASS
Fast fact The Bersin by Deloitte 2015 HR Factbook says big companies are spending about 10% of their HR budget on new tools and technology. In the US, overall HR spend is up 4% year-on-year – the HR tech market is worth more than $400b.
MANAGING CONTINGENT WORKERS Can you outline some of the challenges HR faces when engaging with contingent (casual, contract) workers? For various reasons, the traditional landscape of employment in Australia is evolving at a rapid pace. As labour continues to trend toward contingent, the management of the external workforce and projectbased services will continue to become a top priority in organisations around the country. Companies are starting to take notice of the lack of visibility their current programs allow them and are now realising the importance of having visibility into their headcount, project spend, market rates and liability risk. As Australia’s workforce becomes more competitive on a global scale, hiring managers have to fight to not only retain top talent but protect key projects against crucial skills shortages. Particularly with longer term statement of work-based labour, an issue our clients have is that they lose the knowledge and skills earned by that worker when they leave the project. By having a way to evaluate and document the skillsets acquired by contingent labour, it becomes a measurable asset for future programs and streamlines the onboarding process considerably. How involved is HR typically with vendor management? It depends on the maturity of the organisation. Sometimes hiring managers have direct relationships with their suppliers or vendors, and the entire process bypasses HR and procurement. In other scenarios, procurement owns the management of the contingent workforce wholly. In more mature organisations, procurement forms more of a partnership with other departments and HR features in the process more prominently. The value of HR’s involvement becomes more apparent when the scale of the program is fully understood by other business areas. Often the management of these workers in the long term, whether that be in rate negotiation, worker evaluation or compliance, can be improved by having a strong HR partnership. Can technology help with the management of contingent workers? The main benefit of implementing any piece of technology within an organisation is the automation of previously time-consuming and labour-intensive manual processes. Implementing a VMS (Vendor Management System) is no different, in particular for HR professionals. With all of the contingent labour and services data organised and accessible from one central location, decisions can be actioned in seconds, requisitions take minutes not hours and the efficiency of managing external workers’ performance increases. The biggest value of implementing VMS technology in the management of a contingent workforce program is the visibility into cost, location, compliance and head count – among other things – which it affords.
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UPFRONT
EMPLOYMENT LAW UPDATE
KEY HR LESSONS FROM A BROTHEL An adverse action ruling serves as a timely reminder to HR professionals
is a reminder that they can’t terminate, threaten termination or detrimentally alter the position of an employee on the basis that they chose to exercise a workplace right. Workplace Law said employers should also note the courts will look at the ‘motivation’ of the employer in its decision to take adverse action. Under the broad and powerful employee protection provisions in the Fair Work Act, it is
“Employers should note the courts will look at the ‘motivation’ of the employer in its decision to take adverse action” The Federal Circuit Court of Australia recently found Melbourne brothel – Daily Planet – had taken adverse action against a receptionist that had worked there from 2008-11, until she was dismissed by the brothel’s owner. The adverse action involved threatening to alter her employment arrangements, threatening to dismiss her and then eventually dismissing her unlawfully. In the case – Rosa v Daily Planet Australia Pty Ltd & Anor – it was revealed the receptionist was a single mother who had negotiated particular shifts. Her conditions included working 10.5 hours a day, four days a week, with no sick leave, annual leave or benefits beyond her hourly rate, and no breaks.
NEWS BRIEFS
The receptionist alleged adverse action was taken against her when she was threatened with dismissal and reduced shifts, and again when her hours were cut and she was dismissed due to not signing an employment agreement. The court agreed the termination had occurred as a result of the receptionist’s decision to exercise her workplace right not to sign an employment agreement, which would have effectively made her casual, rather than part time. Daily Planet’s assertion that it had terminated her because she no longer had a manager’s licence because of drug offences was dismissed by the court, as the former receptionist had never actually had a manager’s licence. Specialist firm Workplace Law said the case
Deadline looms for WGEA reporting
The Workplace Gender Equality Act 2012 (Cth) requires all private sector Australian companies with 100 or more staff to report each year to the Workplace Gender Equality Agency (WGEA). A company’s report must include the latest information regarding a company’s workplace profile for employees who are based in Australia. The data collected from the reports will be aggregated and analysed by the WGEA in order to produce a set of industry benchmarks. Employers have until May 31, 2016 to provide this information to WGEA. 10
up to the employer to prove that they did not engage in adverse action against the employee. “This is because of reverse onus of proof. Practically, this means the decision-maker (sometimes even CEOs or their direct reports) will need to be a witness in the defence. In fact, they’re often defendants in their own right as well,” said Gareth Jolly, partner at MinterEllison, at the Employment Law Masterclass in December. “Adverse action claims can be a bit of a lottery. On the one hand, they’re not about fairness, but are dependent on the vagaries of what was in the decision-maker’s mind. On the other hand, if they do succeed, then there could be significant damages – damages are uncapped and can be awarded for hurt and humiliation.”
Niche unions – the way of the future?
A proposal to create a Korean Workers Union for employees engaged by Korean employers could result in Australia’s first ethnically-based union. An application has been made under the Fair Work (Registered Organisations) Act to create an employee association called the Korean Workers Union. However, the union would need to ensure that its eligibility rules do not breach the Racial Discrimination Act 1975, to ensure workers are not prevented from joining by reason of their race, colour or national or ethnic origin. It is also likely to face opposition from existing unions, such as the CFMEU.
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Q&A
Fay Calderone Partner DIBBSBARKER
Fast fact Alcohol and other drugs cost Australian workplaces an estimated $6bn per year in lost productivity. Recent research has estimated that 2.5 million days are lost annually due to alcohol and other drug use.
DRUGS, ALCOHOL & THE WORKPLACE What obligations do employers hold to employees in terms of protecting them from other intoxicated workers? Persons Conducting Business or Undertaking (PCBUs) have an onerous duty to ensure, so far as is reasonably practicable, the health and safety of workers and others in their workplace under WHS laws. This includes the provision of a safe work environment, information, instruction, training and supervision in relation to WHS that extends to being under the influence of drugs or alcohol at work. Workers also have an obligation under WHS laws to protect their own health safety and that of others in the workplace. As such, showing up to work under the influence may be a breach by the worker of their WHS obligations as it is of the PCBU that failed to prevent it. It is also considered “serious misconduct” justifying summary termination of employment for the purpose of the Fair Work Act and associated Regulation to show up to work “intoxicated”. A worker is considered to be “intoxicated” if his or her faculties are so impaired that they cannot be entrusted with their usual duties.
In this context, what are ‘reasonably practicable steps’ to protect the health and safety of workers? A drug and alcohol policy should generally be introduced to regulate, if not eliminate, the use of drugs and alcohol in the workplace. This policy should be based on a risk assessment considering the risks associated with drugs and alcohol in the particular
Summary dismissal clause reconsidered
The Court of Appeal of New South Wales in Bartlett v Australia & New Zealand Banking Group Ltd [2016] NSWCA 30 has upheld an appeal by an employee for damages for breach of contract, finding that he was wrongfully dismissed. The Supreme Court previously held that a clause in the employment contract, which purported to provide ANZ with the power to summarily dismiss the employee based on ANZ’s opinion, meant that ANZ did not have to prove that the employee actually committed serious misconduct.
workplace that it relates to. This assessment will dictate what testing, if any, is reasonable and necessary in the circumstances.
Are there any issues employers must be aware of when drafting this? Whilst organisations, courts and industrial tribunals seem to accept D&A testing is generally an intrusion into an individual’s private life that blurs the boundaries between home and work, it is accepted as the lesser evil if testing is necessary to ensure the health and safety of workers and others in the workplace. Clearly, this threshold issue depends on the nature of the workplace and the level of influence that poses a risk such that it should be considered on a case-by-case basis.
What’s the current situation in regards to drug testing in the workplace? It was established the Fair Work Commission Full Bench in the case of Briggs v AWH Pty Ltd (2013) that a refusal of an employee to undergo D&A testing in circumstances where the employee’s employment contract referred to and required compliance with the D&A policy was a refusal to obey by a lawful and reasonable direction justifying termination of employment. It is therefore important to assess the risks associated with drug and alcohol use in the workplace, document a policy that seeks to eliminate those risks, require compliance with the policy and procedure as a term of the employment agreement and consistently enforce non-compliance.
WA decision impacts leave provisions
The Western Australian Industrial Magistrates Court recently held that service with an employer’s overseas-related entities was service “with one and the same employer” for the purposes of calculating long service leave entitlements under the Long Service Leave Act 1958 (WA) (LSL Act). The decision will have a significant impact on businesses whose employees transfer between its interstate- and overseas-related entities. Continuous service with related entities will count towards calculating long service leave entitlements for Western Australian employees.
Is a doctor’s certificate enough?
A recent court decision – Anderson v Crown Melbourne Ltd [2008] FMCA 152 – indicates that an employee who takes paid personal leave is not protected from disciplinary action associated with taking that leave simply because a medical certificate has been provided. This case demonstrates that employers, who wish to take disciplinary action against an employee who has attempted to take personal leave inappropriately, may be able to do so where there is evidence of dishonesty on the part of the employee. www.hcamag.com
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PROFILE
SUZETTE CORR
STANDING UP FOR WHAT YOU BELIEVE IN What’s the most important element HR can bring to an executive team? Deep subject matter expertise? Sure. How about business acumen? That would be nice. How about integrity? Iain Hopkins chats to one HR leader about this oft-overlooked, but essential, personal trait A THOUGHT-PROVOKING 2014 feature in HRD (‘Swinging the pendulum back: Humanising human resources’) quoted Mikael Meir, a North American-based executive coach of many top CEOs and an instructor of ethics at the Schulich School of Business. Meir was concerned that by attempting to fulfil the executive board’s thirst for “cleverness and metrics”, HR was too frequently sidestepping the people part of business. Although he recognised the need for strategy and operational refinement, Meir was arguing that what made human resources ‘HR’ in the first place was being forgotten. HR was no longer viewed as the ‘moral custodians of business’ and were just another interchangeable member of the executive team.
What has happened? Where do ethics, morals and integrity fit in today’s modern workplace? It’s something Suzette Corr, general manager human resources at ANZ, has dwelled upon. Her career, which has involved senior HR roles in the banking and finance sector, as well as
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non-executive and advisory positions, including a directorship of publicly-listed AMMB Holdings Berhard Malaysia, has sparked her interest in business ethics from the unique perspective of a HR practitioner. She has even been inspired to develop a ‘roadmap’ for ethical decision-making.
fear or favour and to have the moral character to not just know right from wrong, but to speak up and challenge as necessary,” she tells HRD. “It’s in the actions you take rather than just a trait of who you are.” Corr admits it’s taken some soul-searching to come to such a seemingly straightforward
“Integrity is... the personal drive to do what’s right. It’s to advise without fear or favour and to have the moral character to not just know right from wrong, but to speak up and challenge as necessary. It’s in the actions you take rather than just a trait of who you are” Central to this roadmap is integrity. Integrity is one of those admirable traits which most people believe they possess but sometimes come up short – especially in the business world. “My take on integrity is it’s the personal drive to do what’s right. It’s to advise without
conclusion. “I used to think it was easy – you just do the right thing!” she laughs. However, research shows us we’re hardwired for bias and we can’t be relied upon to be rational. Nor can we be relied upon to be fair. Worse still, we are often not aware of the biases that influence our decisions. We
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PROFILE
SUZETTE CORR are prejudiced, favour people who are like us and look after people who could help us to the detriment of those who can’t. Our responses are often situational and can damage our moral character. Corr says integrity is critical to herself as a leader, but it’s something she needs to constantly strive for. “Philosophers have given us the principles that collectively help to define integrity,” she says. “Principles such as fairness, prudence, courage, self-control, trust, honesty and humility are worth us reflecting on as individuals, with a view to taking these to the leadership table.” In the lead up to this year’s HR Summit (at which she was a guest speaker), Corr says she tested herself on the above, picking one principle per week to examine her actions. “Do I disappoint? Often. But I figure at least I’m consciously examining my conscience,” she says.
The critical role of HR In Australia and globally, HR directors lead
to the executive table. “I think some CEOs and executives expect this and have explicit agendas. You could challenge the notion – and I have – and say every executive should bring this [to the table] but I think there is an added responsibility for HR,” she says.
Balancing the ‘commercial’ with the ‘human’ While HR is now expected to be commercially minded, Corr feels this shouldn’t come at the expense of the ‘human’ side of human resources; it is not an either/or situation. “I think we can be both human focused, as well as commercial,” she says. “While HR functions have added the commercial side, I don’t think it’s been to the detriment of the human side. I think it’s actually given us a stronger position at the executive table that is now more impactful because of the balance we bring of the human and the commercial.” Furthermore, investors no longer just value companies on revenue and profit. It’s
“While HR functions have added the commercial side, I don’t think it’s been to the detriment of the human side” tens of thousands of HR professionals, impacting organisations with hundreds of thousands of employees with millions of customers and stakeholders. Corr asks: “Imagine the powerful force for good HR could be if these people, whose profession is humans, embraced an understanding of ethics and integrity and acted upon and spoke up to ensure the right thing was done?” Without question, it’s needed. Last year’s Edelman Trust Barometer found a significant drop in trust of Australian businesses, back to post-GFC levels. “This has a direct impact on business performance, as over half of Australian consumers refuse to support businesses they do not trust, so ultimately this is about an organisation’s sustainability,” Corr says. She adds that this is one key point of difference HR can bring
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also intangibles such as brand, consumer trust and employee relations, as well as the leadership strength of a company that are being scrutinised. “This is an area we [in HR] can influence and articulate, often because of this balanced perspective of the human and commercial sides,” Corr says. She suggests looking at “the three big domains of ethics, economics and governance”, which for her are the drivers behind decisions that determine reputation and trust. This means HR must bring its own integrity and acumen to the decisionmaking process. “I think about it this way. If you were absent from the executive table, what perspective or influence would be missed that would sub-optimise the call? It has to be that perspective only you can bring, by dint of this balance.”
ETHICAL DECISIONMAKING FRAMEWORK
INTEGRITY
Governance
Ethics
REPUTATION DECISIONMAKING
ACUMEN
Economics
Ethics, economics and governance HR professionals find themselves in morally and ethically challenging situations every week. Take, for example, a hypothetical situation where it’s cheaper to use foreign labour, based overseas, but the conditions in which those people work is poor. Using the frame of ethics, economics and governance and bringing HR’s own integrity and acumen, we’ll assume this is a company that complies with black letter law, regulations and its own internal controls, both domestically and internationally. Corr suggests if this isn’t the case, it’s time to stop and come back once confirmation is obtained that this exists. Next up, Corr suggests looking at the incentives – both market-driven and manager-driven – that are influencing this decision. “What or who stands to benefit or not? What behaviours does that drive? Does it cause blind spots?” Corr asks. Next up are the beliefs held as truths within the organisation. Assumption-based, they can both enhance or diminish the quality of information and input that goes into the assessment. Does the culture encourage robust dissent or is there a preference for harmony? Corr has a preference for dissent; she believes process and minority opinions matter if we are to make good decisions. However, a mechanism is required for these to surface. “What’s important in this example is that we know what this organisation’s default is, so we can draw out the underlying relationships between factors. And critically,
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A DECISION-MAKING ROADMAP Keeping in mind Corr’s suggested interlinking of the domains of ethics, economics and governance, and the focus elements for HR of integrity and acumen, a ‘roadmap’ of ethical decision-making can be formulated. Those committed to leadership with integrity, with the intention of balancing conscience with commercialism, should to be doing three things, Corr suggests: 1. Invest time and effort in raising your awareness so you can accurately monitor and build your own integrity and acumen 2. Practise and learn how to see the organisation as a whole (imagine a chess board), keeping in mind ethics, economics and governance 3. Use your role to step up and guide the leadership to make decisions that lead to strong and sustainable reputational outcomes. how does the organisation see its societal obligations? Are the rights of a broader group of stakeholders subordinated in the interests of shareholders and management? “What I’m saying is this scenario poses an ethical dilemma, and the value we can bring is to ensure that the decision-making is as much about process as it is outcome, and also as much about an ethical human focus as a commercial one. Ultimately, this is how we can help the leadership make better decisions.”
Rules aren’t enough Astute HR professionals often know when something is not right, yet the temptation is to fall back on ‘it’s company policy’ and ‘I’m just doing my job’. Corr suggests it’s not dissimilar to Stanley Milgram’s frightening experiment in the 1960s, whereby a high proportion of Yale students were prepared to go against their conscience and deliver supposed severe electric shocks and to cause apparent serious injury to others just to obey instructions. This blind obedience to authority resulted in dehumanising conformity. “Play that out into any organisation from any sector yesterday, today and tomorrow and it throws a light on the complex interplay of factors that determine ethical behaviour in an organisation,” says Corr. Knowing and complying with what is non-negotiable from black letter law to internal compliance is obviously very important. However, Corr says an over-reliance on rules and policy – and often we respond to problems by adding more of these – can lead to employees taking action without thought. “Down the track this can be the very thing that causes issues, and you can sometimes see this with the benefit of hindsight,” she says. “So knowing when to rely on rules and policy, and when to use a principles- and development-based approach that allows the organisation to align its purpose and values with what its employees do, is a critical contribution HR can make.”
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PEOPLE
HEAD TO HEAD
GOT AN OPINION THAT COUNTS? Email hrd_editor@keymedia.com.au
What future skills do HR pros need to develop? HR directors wear many hats, but what skills will be needed in the coming years?
Dr Glyn Brokensha
Effie Fox
Belinda Winter
Chairman and co-founder Expr3ss!
HR and communications director Canon Oceania
Director, people and corporate relations Novo Nordisk Pharmaceuticals
Better communication skills. HR communication is a lot like healthcare communication: very often technical matters need to be discussed in highly emotionallycharged environments. HR professionals can learn a great deal from the mastery of the wellresearched and documented strategies which are effective in healthcare contexts – as could many doctors! Particularly valuable are the skills involved in building rapport quickly, breaking unwelcome or bad news and handling distress and anger. Such skills can be assimilated by reading alone but they must also be practiced repetitively with a role-player – or actor – to become second nature. Like all skills, start small and build up to greater challenges. It’s remarkable how much easier life can be when you have effective communication skills and abilities at your fingertips.
There are three key skills that I believe are critical from both a business and people perspective. First and foremost, a high level of business acumen. Alongside this is the skill to craft and establish pragmatic HR programs that cater to business needs and are measurable in terms of the qualitative and quantitative impact on business success. Interpersonal skills often get overlooked but these ‘soft skills’ are the foundation to building authentic and trusting relationships that survive in courageous situations and through difficult conversations. Developing this skillset will ensure HR professionals continue to build valuable relationships with employees and leaders alike, under any circumstances. Lastly, HR professionals who are brave and implement initiatives that are real and impactful will make a positive change to organisational and leadership behaviour, whilst also disrupting cultural norms and traditional HR practices.
HR professionals should consider gaining experience from line of business to complement their skills. The combination of the skillsets from what the business does and how this translates to engagement, motivation, recognition and overall organisation performance can only add greater value to the HR professional’s skillset, capability and reputation. HR professionals should aim to be the social architects of the organisation. Between strategy and structure, combining and honing their financial skills, communication via digital media, e-platforms and extensive networking to ensure top talent are captured, I see HR professionals needing to network beyond just HR. Combining this together with core qualities, such as self-awareness, empathy and business acumen, will ensure the HR professional is well equipped to handle any situation that comes their way.
B
FUTURE-PROOFING: ESSENTIAL HR SKILLS In Hays’ 2016 research, The DNA of an HRD, over half (53%) of HRDs say stakeholder engagement is the most important skill for an HRD to possess, followed by commercial acumen (52%) and strategic planning (48%). What qualifications should HR aim for? Some, such as Ian Cormack, HR director at Woolworths Food Group, believe psychology is essential. “HR is an intuitive discipline and so everyone has an opinion. If you study or read about psychology, you come to understand the underlying science and body of knowledge that supports your discipline and why we do what we do in terms of remuneration, bonuses, diversity and communication. Then you’ve got research, not just opinion, behind the positions you take.”
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EXPERT INSIGHT
WORKPLACE RELATIONS
Brought to you by
TIME TO PREPARE:
FAMILY AND DOMESTIC VIOLENCE LEAVE It has been an issue much-debated in Australia over the past 12 months, but where do Australian businesses stand in relation to family and domestic violence leave? Lisa Burrell reports THE ISSUE of family and domestic violence is one that continues to generate widespread debate around recognising and addressing the problem, including providing ongoing structural supports. A key discussion in the context of employee leave is whether this is a community issue, a workplace issue, an individual issue, or all of the above. The issue itself is, of course, not a new phenomenon. However, in recent times there has been an increased spotlight on the problem and its prevalence within Australia. On first consideration, while it is generally recognised that the societal and economic impacts are extensive, it would seem that this is not an issue that would naturally find its way into the employment sphere. In practice, there are currently multiple workplace avenues being considered and utilised for support and assistance, including the potential of family violence leave becoming something that will ultimately sit alongside other forms of legislated leave, such as personal, carers’ and compassionate leave.
How are employers approaching this? The Productivity Commission (“PC”) in its review of the workplace relations framework noted the entitlements within enterprise agreements approved over a 3.5-year period, with 840 (3.7%) holding an entitlement, covering over half a million employees. From our direct work with employers at the Victorian Chamber, we see new entitlements continuing to arise both from
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policy frameworks and enterprise agreements. In our experience, these are most commonly taking the form of separate leave entitlements, or an explicit expression that the employer will support the individual through the experience, including the granting of existing forms of leave, such as personal leave. In reality, this is also reflective of the manner in which individual circumstances are routinely managed at many enterprise levels.
What is the legislative response? The PC outlined a range of reviews that have been undertaken from 2011 onwards, recognising that employment can be seriously affected. It also observed the likely costs impact of a legislated response invoking employerfunded paid leave, including that the current information does not provide good insight into the magnitude of these. Ultimately, the PC recommended awaiting the outcome of the current fouryear modern award review process, for the decision on an Australian Council of Trade Unions (“ACTU”) application. It also noted that this timeframe would capture a nowcompleted Victorian review. This contained over 200 recommendations, including supplementing the NES with additional leave, with the report to be considered by the Council of Australian Governments. The proposed entitlement by the ACTU is for 10 days access to paid leave, and two days access to unpaid leave, with leave to
be utilised for issues associated with family and domestic violence, including attending appointments, legal proceedings and other activities associated with the experience. At the time of writing, the matter is scheduled to be heard in October 2016.
The current situation There are opposing employer views on where these solutions should come and be funded from, including that any mandatory leave arrangements within the workplace relations system is a cost that should be borne by the government, rather than individual employers. Many businesses continue to implement support through expanding policies, employee awareness and training to support individual workers. At this time, there are a range of available options for employers to proactively implement specific enterprise level supports. However, there is not currently a legislated mandate to do so. Given the timelines and current processes, practitioners should have regard to the potential of these changes in their current planning. Lisa Burrell is the general manager of workplace relations at the Victorian Chamber of Commerce and Industry. The Victorian Chamber is Victoria’s most influential employer group, servicing over 15,000 Victorian businesses per annum. An independent, non-government body, the Victorian Chamber was founded in 1851 by the business community to represent business.
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COVER STORY
HRD EMPLOYER OF CHOICE
HRD’s second annual Employer of Choice Awards have been voted on by the people who matter most: employees. Find out who’s leading the pack and why they’ve come out on top EVERY YEAR, nearly 20% of workers globally change jobs. This turnover can be significantly higher or lower depending on a range of factors. Every HR professional knows that an unhealthy level of turnover is costly to the business and most will do whatever they can to halt the exodus. A key way to do this is by aspiring to gain external acknowledgement and verification as a leading employer. In the second annual HRD Employer of Choice Awards, sponsored by Maxxia, we’ve posed a range of questions to employees (see ‘methodology’ boxout on p22), asking about everything from their satisfaction with
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current remuneration through to leadership effectiveness within their organisation. Importantly, these awards were voted on not by HR professionals themselves, but the people within their organisations. Those companies that achieved the highest average scores from employees are acknowledged as ‘top performers’ in each sub-category. However, the Holy Grail must be the Employer of Choice winners. Gold, Silver and Bronze awards have been given to those employers in our three size categories who are excelling across the board. Over the following pages our winners reveal what’s worked for them.
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Sponsored by
A NOTE FROM OUR SPONSOR MAXXIA IS very proud to again partner with HRD for the 2016 Employer of Choice Awards. At Maxxia we are privileged to work with more than 1,000 organisations across all sectors and all sizes, in actively supporting their employer value proposition through the provision of salary packaging, novated leasing and other benefits to their employees. As a leading provider of best-in-class employee benefits programs, we understand the importance of attracting and retaining staff in today’s competitive employment environment. It is increasingly clear that employee engagement is a key element of business success, and being an Employer of Choice is critical. The best organisations go above and beyond for their staff to develop progressive cultures, environments and relationships. With the volume of information available these days, people are in a position to compare organisations and will expect the best from their employer. There’s no doubt organisations with employee accolades have an advantage, but people won’t accept just any badge or branding. The HRD Employer of Choice Awards sets itself apart by being based on the nominations of your own employees. Receiving a nomination is an honour in itself, as it positions you alongside other outstanding organisations that have proven themselves to genuinely prioritise their staff. Winning something as significant as the HRD Employer of Choice Awards is a fantastic achievement, but any organisation that is recognised with a nomination can be assured that they have truly established their excellence as an employer. It’s the ultimate affirmation that you’re among the best.
“It is increasingly clear that employee engagement is a key element of business success, and being an Employer of Choice is critical. The best organisations go above and beyond for their staff to develop progressive cultures, environments and relationships” Ron Steiner, group executive customer relations, Maxxia
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COVER STORY
HRD EMPLOYER OF CHOICE OVERALL RESPONDENT SNAPSHOT
Company size
Gender
17%
1-99 employees 500+ employees
Male
Female
55%
38%
62%
28%
Between 100-499 employees
How many hours do you work each week?
5%
71%
21%
3%
1%
10-27 hours
28-47 hours
48-58 hours
58+ hours
Other
METHODOLOGY Date of survey: February-March 2016 Method: Online survey Number of respondents: 2,230 employees from 228 companies Employer of Choice status was determined by averaging employee scores given to a range of questions/statements. Scores ranged from 1 (strongly disagree) to 5 (strongly agree) for the following questions/statements: • “My employer provides satisfactory remuneration” • “My work provides sufficient opportunities for training and professional development” • “My work offers a clear career progression path for all employees” • “My employer has a strong commitment to diversity and inclusion” • “My employer gives me access to the technology I need to do my work effectively” • “My workplace has a strong work culture and a high level of engagement” • “My employer fosters an environment of trust and empowerment” • “My employer demonstrates effective leadership” • “My employer helps me achieve a work-life balance” • “My employer supports my health and wellbeing”
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How many days of annual leave have you taken in the past 12 months?
12%
less than three days
24%
4-10 days
41%
11-20 days
20%
21+ days
8%
4%
Other
92%
Are you likely to change employers in the next 12 months?
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EMPLOYERS OF CHOICE: OVERALL WINNERS 500+ EMPLOYEES
Data#3 MYOB Johnson & Johnson HRD CHATS to Gold winner (500+ employees) Tash Macknish, national manager, OD & HR, Data#3 HRD: What does this award mean for your organisation and why do you think your employees rated you so highly? Tash Macknish: We are thrilled to receive this award. Our people and industry contacts obviously feel that we are doing a good job living up to the high standards that we set ourselves. To have this achievement recognised in a forum such as this is outstanding. We pride ourselves on living our values and keeping our key stakeholders at the forefront of all our business decisions, which is instrumental in building this culture. HRD: What does this award mean for you personally, and your HR team? TM: It’s fantastic external validation for the hard work the team put in. We are a small team of 10 professionals who are passionate about what we do and are committed to the people of Data#3. It is great to know that our people can feel the effort that we put in and are happy to say so. HRD: How would you sum up the corporate culture at Data#3 and how do you ensure
this culture is communicated and ‘lived’? TM: Our culture is built on our core values – HEART (Honesty, Excellence, Agility, Respect and Teamwork). These values are integral to the way we work as a business and the way we interact with each other within the business. We firmly believe that culture starts at the top and our CEO and leadership team are champions of our culture. We understand that our people shape our business and while we don’t always get it right, we are always seeking feedback and striving to improve.
Data#3’s Tash Macknish with CEO Laurence Baynham
“This is fantastic external validation for the hard work the HR team put in. We are a small team of 10 professionals who are passionate about what we do and are committed to the people of Data#3. It’s great to know that our people can feel the effort that we put in and are happy to say so” Tash Macknish, national manager, OD & HR, Data#3
HRD: Data#3 received ‘top performer’ status in the ‘Work-Life Balance’ sub-category. What does your company do to get this balance right? Do you offer flexible work options? TM: We understand that flexible work options are not just a privilege, but a necessity given the evolving nature of the working landscape. We strive to balance business priorities with personal needs and come up with the best outcomes. Central to making such arrangements a positive experience is effective communication; where employees are comfortable communicating their needs with managers, and managers are comfortable about communicating expectations to employees. We are always working to maintain an environment where that kind of communication is commonplace.
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COVER STORY
HRD EMPLOYER OF CHOICE
EMPLOYERS OF CHOICE: OVERALL WINNERS 100-499 EMPLOYEES
1300apprentice Fujitsu General UQ Sport HRD CHATS to Gold winner (100-499 employees) Jane Kennedy, CEO, 1300apprentice HRD: How would you sum up the corporate culture at 1300apprentice and how do you ensure this culture is communicated and ‘lived’? Jane Kennedy: The 1300apprentice team works with a collaborative culture where each department works for, and is a customer of, the other departments. Everyone makes an effort to learn other roles within the organisation so that we can effectively support each other. This attitude is contagious and energising. HRD: This is the second year running that 1300apprentice made an excellent showing in this survey. How do you sustain high performance? JK: The team was thrilled with the first award and the recognition from HRD. Having been recognised by an industry body helped our new clients and students have confidence in us. When the opportunity to try for the award came up again the whole team responded with enthusiasm. HRD: 1300apprentice finished strongly in the ‘career progression’ sub-category. How does the company communicate career paths and development opportunities to staff?
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Jane Kennedy (far left) with the 1300apprentice team
JK: Career progression is what 1300apprentice is about, firstly for our students who are most often first-time workers, but also for our operations staff who in several cases are ex-students themselves. We actively encourage and fully support ongoing training for all staff as it is not only of great benefit to the company and the individual, it is the perfect example to our students on how to build a career and to contribute to a happy life. The time taken to learn other roles within the organisation not only helps us to support each other, it is of great benefit in enabling career progression. We are very proud of the fact that when people leave 1300apprentice they invariably move up in their career.
“Several years ago, during a strategy conference attended by all 1300apprentice staff, we unanimously decided that we wanted to be an Employer of Choice, because we believed that the best people would be required to deliver our mission statement. This HRD Gold Award is visible confirmation that we are succeeding on that goal” Jane Kennedy, CEO, 1300apprentice
HRD: 1300apprentice also excelled in the ‘Work-Life Balance’ sub-category. How does the company get this balance right? JK: While dealing with so many young people, we are constantly reminded of the value of family and the benefits of a healthy home environment. When we achieve satisfying work-life balances for our team it shows in our work. When family and home is providing support, contributing to confidence, and providing respite from the challenges of a busy work environment, people are able to deliver their potential. The secret to success is to tailor to the individual where ever possible and always consider the team.
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Sponsored by
EMPLOYERS OF CHOICE: OVERALL WINNERS 1-99 EMPLOYEES
Qualtrics Churchill Education Loving Earth HRD CHATS to Gold winner (1-99 employees) Bill McMurray, managing director, Qualtrics HRD: What does this award mean for your organisation? Bill McMurray: I think it’s a very meaningful award for us because it’s a vehicle to recognise how people feel about our culture and work environment. It allows us to publicly showcase our culture to the market to attract the best talent. We’re growing extremely rapidly in Australia – we’ve now hired 50 people since landing here in October 2014 and we’ll grow to at least 70 people by September this year. Frankly, hiring and keeping the right talent is a top priority. HRD: As a smaller employer, do you ever feel you don’t have the resources to devote to employee initiatives? BM: There are different challenges being a SME versus being larger. Right now with 50 people it’s very different already to when it was just 10 people. There are culture challenges in terms of creating the right workspaces and keeping that balance of closeness and camaraderie while keeping our eye on organisational goals as we expand.
Qualtrics MD Bill McMurray (top left) and the firm’s new, innovative work space in Sydney
HRD: How would you summarise the culture at Qualtrics? BM: I think our culture is fairly simple. We work hard but have fun doing it – and that’s underpinned by five core values which guide people’s activities and behaviour. To cite one of our value propositions, to have happy customers you must have happy employees. We try to make it a fun place, and employees have input on a lot of the initiatives we’ve put in place. For example, we’ve got treadmill desks where people can stand and walk while they’re working, and there are beanbags and couches you can work on in corners rather than sitting in desks. We’ve got fun breakout activities such as foosball or table tennis. We’ve even got a golf putting green with three holes in it. As long as people aren’t goofing off, you’re able to get that balance between working hard and having a good time. Then we have all sorts of informal collaboration sessions, such as monthly lunch and learns. We have a weekly global company forum, which is run out of the US and we dial into. Our employees get to hear on a weekly basis some of the initiatives and progress happening globally. And we have a whole series of initiatives just to try and get people the support they need and to see the opportunities in their organisation.
“We’ve been focused on providing a workplace that people really love and enjoy being part of. We’re confident we’re doing all the right things but it’s great to get formal recognition with an award like this. It should be a catalyst for us to keep attracting and retaining talent as we continue to grow” Bill McMurray, managing director, Qualtrics
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COVER STORY
HRD EMPLOYER OF CHOICE
REMUNERATION TOP-PERFORMING COMPANIES
1300apprentice Churchill Education Data#3 DLA Piper “Operating in the not-for-profit area throws out unique challenges when considering remuneration. While it is possible to find out the wage brackets for the various roles within our industry, it is the flexibility of conditions and family-friendly arrangements that people respond to. Wherever possible a package that suits the individual is devised” Jane Kennedy, CEO, 1300apprentice
“I NEED a pay rise!” These words may be heard all too frequently by HR professionals, but fortunately a significant 71% of voters in this year’s Employer of Choice survey either agreed or strongly agreed their employer paid satisfactory remuneration. That’s not to say there aren’t challenges to remaining market competitive on remuneration. One reader noted: “The not-for-profit sector has been hit hard with FBT changes.” Employers in social services and healthcare were also struggling to keep up with employee expectations. One respondent in a social services role wrote: “The sector in general does not pay amazingly but you work for the love of enriching the lives of others.” And even though the broader Australian economic outlook might be cautiously optimistic, in some instances this is not enough – especially in multinational corporations. One respondent suggested: “Global directives may impact on the local operation’s ability to reward on performance.” Few things in business are more contentious than what people are paid – and while HR consultants continuously downplay the importance of financial reward, clearly employees value what they are being paid above almost everything else. In some instances, it can act as part of an effective retention strategy, as this reader pointed out: “I strongly agree that my employer pays staff at a high level and this is one of the many reasons I have chosen to remain with this company for many years.” Other employers have mixed in non-financial recognition to the remuneration on offer. One employee wrote: “My employer offers competitive packages plus a great longevity program which provides rewards including bonuses, iPads, additional leave, sabbaticals, and a personal training and development fund.” And for what it’s worth, it might be worthwhile benchmarking remuneration for industry and role type by third parties such as Aon Hewitt and PayScale. “We’ve recently reviewed and benchmarked all roles in consultation with Aon Hewitt – the company is working towards positioning itself at the front of remuneration in our sector to ensure we attract high performing talent.”
“MY EMPLOYER PROVIDES SATISFACTORY REMUNERATION”
33%
Strongly agree
38%
Agree
18%
Neutral
7%
Disagree
3%
Strongly disagree
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Sponsored by
CAREER PROGRESSION THIRTY-EIGHT per cent of employees agreed that their employer clearly communicates career path opportunities and the steps to be taken in order to be considered for promotion. In this space, Employers of Choice are crafting individually tailored career development plans with related training. And while it’s up to individual employees to define their future progression, it’s the managers who help make this a reality. “Each staff member has their own personal development plan. Company progression is also clearly articulated in terms of what skills, attributes and capability is required for promotion,” wrote one respondent. There appears to be a trend for employers to undertake talent and career mapping – identifying key roles and suitable successors, and
the development they require to move forward. In some instances – such as for smaller employers – this is easier said than done. Some employers are getting creative with what they can offer employees who have hit the ceiling in terms of their career path. Employers are offering horizontal moves and project-based development opportunities – not as easy as it sounds with many of today’s flatter organisational structures. One reader noted: “As an employer of 100 people, we have limitations regarding upward progression. We do try to offer many opportunities to increase skills and breadth of employees, including job rotations and time on special projects.” Another conceded: “It’s difficult to do this for all employees but certainly for most it’s possible.”
TOP-PERFORMING COMPANIES
1300apprentice Asciano Johnson & Johnson Sussan
“We have a great track record of growing our internal talent and have exported many leaders into regional roles in Asia, and even global roles, over the years. I believe it’s the personal touch our leaders bring to these conversations, which means they are real and our development plans can be targeted appropriately. We communicate career options and open jobs through an online job portal and we have an active talent and succession planning process at pretty much all levels in the organisation” Amanda Towe, director of human resources, Johnson & Johnson Group of Companies
“MY EMPLOYER OFFERS A CLEAR CAREER PROGRESSION PATH FOR ALL EMPLOYEES”
29%
Strongly agree
38%
agree
23%
Neutral
6%
Disagree
4%
Strongly disagree
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COVER STORY
HRD EMPLOYER OF CHOICE
TRAINING AND DEVELOPMENT TOP-PERFORMING COMPANIES
amaysim Asciano Johnson & Johnson MYOB “We have partnered with the School of Life to offer personal development workshops, such as confidence, resilience and mindfulness. Through our Share the Love Sessions, our own employees share their passion and knowledge with colleagues with anything from cake decorating to gaming, photography and drawing”
LEARNING DOES not end once a student walks out the gates of their university. Increasingly, employers recognise the value created by offering employees access to training and development at all levels. It’s getting cutthrough too – some 49% of respondents agreed their employer was providing sufficient opportunities for career development. Want an idea of what the Employers of Choice are offering? Try this: “I feel blessed to have opportunities to attend both local and global training, conferences and on-the-job training. My employer also provides each manager and emerging manager with the opportunity and access to engage an external coach.” And another example: “I’m seeing heavy promotion of meet-ups, lunchtime learning sessions, mentoring, a leadership development program, free access to technical books and resources. Team leaders also have a paid membership with the Australian Computer Society.” Others are developing true learning-centric cultures, whereby L&D is embedded in everything a company does. One respondent wrote: “My employer provides adequate time for me to attend relevant training and spends substantial amounts of time providing one-on-one training (as this is a new role). My employer is also exploring opportunities for building learning into our regular team practices.” However, while many respondents noted the prevalence of opportunities for managers and emerging leaders, there is still a temptation to skip over this allimportant cohort, as this reader noted: “As a director, I have to say that I have not been on any training in over three years.” Others noted the perennial hurdles to L&D: time and resources. “My employer provides some opportunities but with not enough resources to help with workloads. There’s never time to do any additional training or professional development.”
Alla Keogh, head of people, MYOB
“MY WORK PROVIDES SUFFICIENT OPPORTUNITIES FOR TRAINING AND PROFESSIONAL DEVELOPMENT”
49%
Strongly agree
29%
Agree
13%
Neutral Disagree Strongly disagree
6% 3% 0
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Sponsored by
DIVERSITY & INCLUSION “ALTHOUGH WE have differences in culture, the management never makes us feel that we are different. We are one team as a family.” “We have a D&I council and this is a key focus for 2016.” Those two reader responses sum up the proactive stance taken by Employers of Choice when it comes to issues of diversity and inclusion. A resounding 60% of respondents ‘strongly agree’ that their employer has a commitment to D&I. Importantly, these gestures are more than token efforts, as this respondent noted: “We promote diversity from end to end. It’s top of mind when recruiting. We don’t want cardboard cutouts, rather different people who bring different skills and strengths. It’s a collaborative and supportive environment that absolutely supports inclusion.” Given that gender inequality remains a problem in many organisations and wider society, it’s no surprise to learn that a key focus are D&I initiatives to assist women in the workplace. “We are currently rolling out a number of new initiatives to increase our support for diversity in the workplace. This includes but is not limited to leadership and networking programs for women in the workplace,” wrote one respondent. One area that needs attention is support for working parents – particularly working mothers. One respondent noted: “Our leadership team is very maledominated and of the few women in that team, none have children. Benefits such as maternity leave are also only the government minimum.”
TOP-PERFORMING COMPANIES
Fujitsu General Loving Earth Maari Ma Workplace Law
“We have a culturally and age-diverse workforce. A majority of our mid-level leaders are female. We have promoted employees who have the will and assisted them with the skill. We have encouraged greater flexibility, especially around mothers returning to work from maternity leave with working from home arrangements. We have recently recruited a stay-at-home father who has returned to the workforce in a role that has been predominately performed by females in the past” Sarah Gatehouse, national HR manager, Fujitsu General Australia
“MY EMPLOYER HAS A STRONG COMMITMENT TO DIVERSITY AND INCLUSION”
60%
Strongly agree
26%
Agree
8%
Neutral Disagree Strongly disagree
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COVER STORY
HRD EMPLOYER OF CHOICE
TECHNOLOGY WORK SHOULD be about what you do, rather than where you do it, and with that in mind remote technology was the recurring theme from this year’s respondents – all with the intention of improving efficiency and productivity. “We have invested heavily to give all employees remote access and mobile technology to have a more flexible life. The recruitment role involves an investment of time, but with the improved remote access it enables more flexible working,” wrote one respondent. For some employers, the latest technology is so commonplace that it has become almost expected. One employee noted: “Each new starter has an option of what technology they would like to use. The company has a replacement program, which means no technology is any older than three years. Staff are eligible to purchase laptops and phones.” And another: “All sales, marketing and appropriate functional team members are given a laptop, iPad, iPhone and relevant online technologies and training packages that can be used from their smart technology to make their jobs easier.” Few can beat one of the top performers in this category. One Qualtrics employee wrote: “I can work anywhere in the world and from any device (even if it is not mine). We never sit at our desks all day; we walk around the office, work on standup treadmill desks and on bean bags. This is all possible due to the technology we are provided with to do our work. Most of our meetings are through online video conference calls, including a global, company-wide weekly forum with all 1,000 Qualtrics employees through video conferencing!”
TOP-PERFORMING COMPANIES
Data#3 DLA Piper Edwards Lifesciences Qualtrics
“I believe technology is a key enabler for employees to do their job. For example, we issue all new employees with laptops and smart device plans. All the applications we use are cloud-based, such as Gmail and Salesforce.com, so people can do their meetings anywhere at any time. Secondly, we work very hard to provide transparency and visibility for everyone. We call it radical transparency” Bill McMurray, managing director, Qualtrics
“MY EMPLOYER GIVES ME ACCESS TO THE TECHNOLOGY I NEED TO DO MY WORK EFFECTIVELY”
55%
Strongly agree
29%
Agree
10%
Neutral Disagree Strongly disagree
3% 3% 0
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Sponsored by
WORK CULTURE AND ENGAGEMENT IT’S NO surprise to see that 56% of respondents feel their workplace has a strong work culture and high level of engagement – it would be difficult to be considered for an Employer of Choice citation without these fundamental building blocks. But what defines a culture? It is possible to distill ‘how things are done around here’, along with the norms, systems, symbols and language used (the common definition of ‘culture’)? Common themes emerged from voters. One was the importance of recognising a job well done: “We have a social recognition platform, where we can acknowledge team mates for good work,” said one respondent. Clear values and knowing what a company stands for was also mentioned repeatedly: “Our culture is strongly defined by clear values and people who live by this. This brings a strong feeling of belonging among the team.” Regular and clear communication from leaders was referred to by a number of respondents: “Weekly company-wide meetings where the CEO and founders address the company [to] ensure that everyone is always in the know.” Finally, a culture that respects the input of employees will always score highly: “Our fortnightly staff meetings enable everyone to participate in company strategic planning and direction. We are all treated equally and our opinions are valued and considered.” And for those wondering if ‘the little things’ matter, the answer is a resounding ‘yes’: “We are proud of our work culture and engagement with our employees. We ensure our employees know they are valued through informal recognition and rewards on a regular basis. We provide morning teas on a weekly basis to allow our employees to step away from the stress of their roles and engage socially with their peers to enhance the team culture.”
TOP-PERFORMING COMPANIES
Loving Earth MYOB Qualtrics Sussan
“Our culture is values-driven and authentic, and led from the top. We invest heavily in creating great workplaces, benefits and tools that empower and enable performance and creativity. And our leaders and managers are expected to inspire, because we believe everyone deserves an exceptional manager. All people leaders are measured on our Management Right goal (the right team, doing the right things, in the right way, driving the right results), measured through upward feedback on clarity, accountability, growth, recognition and meaning” Alla Keogh, head of people, MYOB
“MY WORKPLACE HAS A STRONG WORK CULTURE AND A HIGH LEVEL OF ENGAGEMENT”
56%
Strongly agree
29%
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COVER STORY
HRD EMPLOYER OF CHOICE
TRUST & EMPOWERMENT TODAY’S WORKPLACE software is largely self-service, meaning that employees and managers can update their own profiles and take more proactive action on their development and careers. Employees today don’t want to be spoonfed career options or development opportunities – they want to be involved in dictating their own personal direction. “I found that recent management training I did through my organisation empowered me and gave me the skills to move forward in my supervisory role,” wrote one respondent. However, giving employees this self-directed capability only goes so far. Real trust and empowerment comes from the type of culture fostered by company leaders. Trust in particular is a critical issue when it comes to increasing requests to work flexibly. One employee wrote: “We are treated as adults and given the flexibility to be able to complete our roles without being micro-managed. We are trusted and inspired to work hard as we have been given the trust to do so.” It’s logical that those with a vested interest in the success of an organisation are likely more engaged, as this respondent suggested: “Our leadership team is very much committed to a shared leadership model where volunteers, casual employees and permanent staff alike are encouraged to take responsibility for and lead decision making.”
TOP-PERFORMING COMPANIES
Fujitsu Maari Ma MYOB Workplace Law
“At Fujitsu General Australia, we value employees taking ownership, and as part of our performance and development review process, we encourage team members to drive feedback discussions, individual development, performance targets and outcomes with their leader. This enhances ownership, flexibility, trust and motivation. Applications to advance internally are encouraged and we enjoy seeing our employees grow and be successful” Sarah Gatehouse, national HR manager, Fujitsu General Australia
“MY EMPLOYER FOSTERS AN ENVIRONMENT OF TRUST AND EMPOWERMENT”
48%
Strongly agree
34%
Agree
11%
Neutral Disagree Strongly disagree
4% 3% 0
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LEADERSHIP IT’S ALMOST impossible to become an Employer of Choice without solid leadership. Not only must all leaders believe in the potential of being a great employer, they must also walk the talk. Accountability, transparency, vision, communication. These four broad terms are used repeatedly by respondents to this year’s survey. Some 49% of respondents ‘strongly agreed’ their employer demonstrates effective leadership. The leadership of the top-performing companies this year can be summed up with the following quotes: “Our managers are leaders – they are not dictators. They inspire us to work hard with their support. There is an open-door policy and regardless of what management may be working on, there is always time available for staff.” “Our leadership team inspires and leads by example. Their leadership allows for human error and growth. They believe individuality, creativity and a sense of fun creates an effective team and a committed workplace.” “The leadership of the company is why I have stayed for nearly eight years. Great people who genuinely care about each employee.” “I believe we have one of the best CEO’s in Australia leading our company and I feel privileged to work under his leadership.”
TOP-PERFORMING COMPANIES
Churchill Education Fujitsu General Islanders Board Wurth
“We think our employees see themselves through the eyes of our leaders – as people of great possibilities. This possibility mindset starts at the top with the CEO and chairman’s passion and genuine care for the business and the people. From there, the openness and accessibility of the CEO means that anyone can organise a cups of tea catch up – and they do. Ideas and customers’ stories are shared. Every team member submits a monthly report – and our CEO reads them all, often responding to particular points. People know that what they write is being read and acted on” Helen Rogerson, HR manager, Churchill Education
“MY EMPLOYER DEMONSTRATES EFFECTIVE LEADERSHIP”
49%
Strongly agree
34%
Agree
10%
Neutral
4% 4%
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COVER STORY
HRD EMPLOYER OF CHOICE
WORK-LIFE BALANCE IT’S SIGNIFICANT that over 50% of employees ‘strongly agree’ their employer helps them achieve a better work-life balance – although for Employers of Choice the term should perhaps be ‘work-life integration’. This subtle redefinition is due to the ongoing intrusion of work into personal life. Employees are expected to be ‘on’ and contactable long after 9-5. The upside to this equation is that employers have been forced to welcome flexible work arrangements for staff. It’s perhaps the ultimate give-take relationship, flowing in both directions. One respondent noted: “Absolutely, it’s a family-first culture. When I’ve had to work beyond my usual hours this has been monitored and my CEO has asked what she can do to assist.” Another wrote: “Flexible working arrangements are offered for all staff and where the need arises for a staff member to leave work for any period of time to tend to family matters this is supported fully by the company,” said one respondent. Technology has made a critical difference: “My role requires a heavy investment of time, but remote access and technology has allowed our employees to enjoy more flexible hours within the office.” However, it’s where work-life balance is simply accepted as ‘the way things are done’ that it gets the most traction. One respondent noted: “We work hard but the company has gone out of its way to provide us with motivation and resources to have a balance. This includes a really good healthcare package (massages, etc), as well as having activities in the office to enable staff to unwind and de-stress.”
TOP-PERFORMING COMPANIES
1300apprentice Churchill Education Data#3 UQ Sport
“Our employees can’t do a good job if their job is all they do. We’ve reduced our full-time work week to 35 hours, and offer TOIL for overtime. We actively manage our employees’ workloads, and make sure everyone is leaving at a reasonable hour every day. Flexible working arrangements are offered to suit individual lifestyles, and our CEO leads this work-life balance by example” Hayley McNaughton, HR manager, UQ Sport
“MY EMPLOYER HELPS ME ACHIEVE A WORK-LIFE BALANCE”
54%
Strongly agree
29%
Agree
10%
Neutral
4% 4%
Disagree Strongly disagree
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HEALTH & WELLBEING EMPLOYERS ARE starting to appreciate that a healthy employee is a happier and more productive employee – and it’s even better if the employer genuinely takes an interest in, and cares about, the health of all employees. Here’s one example of going above and beyond: “As part of our mentoring process (conducted quarterly), we ask our employees how they are coping with all areas of their life, not just work issues but issues that impact greatly such as parents divorcing, break-up with a partner and other areas that can impact greatly with a young person’s wellbeing. We assist where we can or advise them where to get additional help if needed.” Other employers have recognised the social benefits of introducing health initiatives. One employee wrote: “Health and wellbeing is always supported. We are given the option of sit up or stand up desks. We have walking meetings. We even have a Nutribullet in the office kitchen – as well as a few beers! Nevertheless, the choice is ours. Many of us go for runs at lunch or the gym. There are a few people that meet in the morning and exercise together, then enjoy a healthy breakfast. A healthy workforce is a happy workforce.” Other employers are looking beyond the standard health and wellbeing offerings: “There are regular sessions around workplace health and wellbeing – this month we’ve invited a skin cancer specialist to address the team around melanoma. We have previously invited men’s and women’s health experts to our offices to chat to the team over the course of a week or so.”
TOP-PERFORMING COMPANIES
Johnson & Johnson Qualtrics UQ Sport Xref
“Instead of treating a problem, such as retention, absenteeism and satisfaction, we work on prevention first. Our HR strategic ethos is to develop initiatives to proactively support the health and wellbeing of our staff through awareness, intervention and personal development. All staff receive free access to all our sporting venues, and often attend fitness classes as a team as a break from the desk. We offer workshops around personal development and resilience to support psychological health, building the foundations for staff to deal with pressure situations effectively and live happy, more satisfied lives” Hayley McNaughton, HR manager, UQ Sport
“MY EMPLOYER SUPPORTS MY HEALTH AND WELLBEING”
59%
Strongly agree
26%
Agree
9%
Neutral Disagree Strongly disagree
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FEATURES
PSYCHOMETRIC ASSESSMENT
FIXING ORG PSYCH’S MARKETING PROBLEM Want to prove your worth to your fellow executives? David Munro suggests one critical step is to take the complex and make it simple, and then compel HR customers to demand more, not less, of an investment in HR ORGANISATIONAL PSYCHOLOGY and the use of psychometrics has a marketing problem. For many years it has been seen as complex, theoretical and somewhat of a dark art. This reputation, unfortunately, has been well deserved as psychologists and HR professionals have failed to make this critical business process just that – a business process. Stereotypically, HR professionals are seen as removed from the frontline sales/revenuegenerating departments or, as in some cases, an extra cost. As HR professionals and psychologists alike, we have failed to connect what we do sufficiently with our customers – we have a marketing issue. Yes, assessments are a complex science. However, presenting the benefits of these solutions to business leaders can indeed be both simple and compelling.
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A focus on bottom line results For many businesses, sales and revenue are the key issues keeping leaders awake at night. Figuring out how to improve sales or even protect revenue in an increasingly challenging and volatile economy is imperative for businesses to survive. The HR departments of two Australian leading brands have taken up the challenge to market psychometric testing to their business and are now using innovative and targeted assessments to make the cash registers ring and business leaders listen.
Case study: Michael Hill Jewellery retailer Michael Hill recently conducted a review of their assessments and how it impacted on the sales performance of new hires across the Australian, New Zealand and North American markets. The review focused on how testing could be further optimised to increase sales
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TWO QUESTIONS TO ASK For psychometric testing, the challenge for HR professionals is simply defined in two key questions: If your team is yet to embrace the use of predictive assessment (competencies, not just personality), are you able to demonstrate that your recruitment processes are delivering objective performance benefits for your internal customers?
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If your team already uses testing as part of the recruitment process, do you know the business benefits and impacts this is providing your internal customers? If not, why not?
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performance in these markets when applied to recruiting Managers in Training (MITs). The goal was to unlock the code for what behaviours and competencies were inherent in those who excelled in their stores. The analysis was complex. It involved over five years of assessment and sales data (31,000+ data points) and the results from more than 600 staff across multiple stores. The challenge was to take this complexity and present the findings in a simple and compelling way to the Michael Hill executive team. Michael Hill Group HR executive, Stewart Silk, says the rationale behind embarking on this project was to demonstrate that HR understood the business. The project also aimed to enhance confidence that Michael Hill were using everything in their means to ensure they had the right people working for the company. “The process was split into two phases, firstly to review our current assessment tools to identify what value was currently being added, and where any opportunities to add further value to the company may exist,” Silk says. “The second phase was to pilot a new approach and set a benchmark that we could work from to identify the real high performers for the business. “This updated approach also provided us with scores and information on how our candidates aligned with our leadership principals and capability framework. “We put a lot of work in to determine
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FEATURES
PSYCHOMETRIC ASSESSMENT the difference between the high and lower performers in our team.” These steps helped to map out the ideal profile of a high performer in the business and helped the business leaders build an ongoing process to consistently identify applicants who would perform well in stores.
RESULTS Armed with this information, Silk and his team presented the findings to the business. Rather than present complex analysis in ‘HR talk’, the team presented the results in the language of the business. The results included: ÎÎ People who met the optimised assessment profile are likely to be up to 39% more effective in their sales performance than those that do not meet this benchmark (a substantial improvement on the prior solution) ÎÎ This 39% difference in performance translates to an average revenue difference of $62,400 per employee annually ÎÎ The streamlined assessment process was, on average, 25% faster for candidates to complete, with results available instantaneously for managers to use at an interview ÎÎ By transitioning from a pay-per-click model to a licencing model, Michael Hill were able to decrease the cost of assessment (by over 20%), while also enhancing the candidate’s experience by using tools that are faster to complete. The results gained immediate traction, interest and engagement within the executive group – so much so that as of February 1, they employed the new psychometric testing platform to hire MITs across the business globally and have been piloting it across their US teams since late 2015. “The hiring managers are really open to it, as the analysis allowed us to give them a solid profile of someone who would have strong sales success,” Silk says. “This whole process has helped us validate future decisions around strategic recruitment and development. “It also adds credibility to what we are doing
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and has showed the wider group that we are committed to working with them in guiding the business into the future and making a positive impact on the bottom line.” Silk says the process has laid the foundation to promote the added value of the people function within the company and how they can strategically increase profitability of the business. Importantly, Michael Hill now understands that this simple business process can conservatively add millions of dollars to their bottom line annually in increased sales performance.
Case study: Careers Australia The testing isn’t just reserved for a retail space. Madeline Clark, the national recruitment and resourcing manager for Careers Australia,
turnover performance – in a way that engaged our managers and built confidence in the value of testing. “Ultimately, the project helped position us so we could confidently hire backed by data, as opposed by traditional and more subjective recruitment practices. That was the defining difference for us.” Clark says the result that had the greatest impact was the employees who passed the assessment (above the 20th percentile) achieved a 45% better sales conversion rate than those who hadn’t. “Using one assessment competency – sales focus – to select our final candidates demonstrated an 81% difference in sales performance between performers on the assessment,” she says. “This improves our recruitment outcomes
“We put a lot of work in to determine the difference between the high and lower performers in our team” Stewart Silk, Michael Hill Group a global provider of vocational education and training, employed psychometric testing to provide a profile of a top sales performer for their call centres. Clark implemented psychometric testing, for the first time, at Careers Australia late last year. As part of the process, the organisation developed a business impact study to show the value of the testing. “Our key goal for the first business impact study was to lift the performance of our sales team,” Clark says. “The secondary goal was to use a resource that would complement our recruitment process to assist in confidently predicting the performance of new hires. It assists us in putting the right person in the right role every time. “The third goal, and as important, was to demonstrate improved sales, productivity and
and performance of the whole workforce by 19% in annual sales. That’s very significant.” In addition, sales consultants scoring above the 20th percentile were proven to deliver more revenue than those scoring outside the 20th percentile. “We are now able to easily identify and screen candidates who wouldn’t perform as well – that is, a 45% lower conversion rate. We can select candidates who are most likely to perform well on the job – those with an 81% higher conversion rate. “This effective selection process translates to additional revenue per successful candidate. This eliminates guess work in the recruitment process, providing a valid prediction of on-the-job performance relating directly to the bottom line.” Clark presented the findings to the company, but it wasn’t until she undertook further testing in a controlled environment
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that the team really saw the true value. “As with anything, the ‘proof is truly in the pudding’,” Clark says. “We tested two cohorts. One that had been hired without assessment and one that had undertaken the testing we had developed. The group that had assessment showed a 17% increase in sales performance compared to the cohorts recruited without the assistance of this assessment. “This really showed how this tool could drive sales and increase profit. It was the lightbulb moment that really hit home for everyone,” she says. The process has now become mandatory for all volume recruitment at Careers Australia. “When you incorporate psychometric testing with the recruitment process, it ensures you are selecting the right hire every time,” Clark says. “I see psychometric testing as the
best tool in our toolbox to ensure we are doing our job to the best of our capability. “As anyone in HR or recruitment would attest, it’s our job to do more with less, while still managing to lift the performance of your new hires.”
Making an impact where it matters So what does this mean for HR professionals? This presents a great opportunity to embrace data and present the benefits of HR processes in a simple and compelling manner to our internal customers. No longer is activity reporting adequate – as a profession we need to embrace the challenge of demonstrating our business impact in the language of the customers. In this case, sales performance and increasing revenue made two executive teams
sit up and listen. However, the challenge remains the same for the HR industry in that we need to demonstrate the benefits of our profession to those that matter – our internal customers. Let’s take the complex, make it simple and then compel our customers to demand more, not less, of an investment in HR. It’s time to ask ourselves, ‘Am I making the cash registers ring?’
David Munro is the national manager of client solutions at Davidson Consulting & HR Solutions. He is an experienced organisational psychologist and HR executive with a core focus on psychometric assessment, recruitment and selection, leadership, 360-degree surveys, performance management, succession management and executive coaching.
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INSIDE HR
PHILLIP MORRIS
RECRUITING FOR THE TOUGHEST OF INDUSTRIES Think you’ve got it tough when attempting to attract the brightest talent? Graeme Smith, director of HR at Philip Morris Limited, outlines how his company – operating in one of the toughest markets imaginable – is attracting interns PHILIP MORRIS INTERNATIONAL is a global tobacco company selling products in more than 180 markets. As a Fortune 100 company with worldwide career opportunities, the sales pitch to join our company might sound easy. However, recruiting high caliber talent for a tobacco company is not without its challenges. Like all companies we want the best new talent graduating from university to join our business. To do that, we’ve had to develop a completely new way of attracting graduates.
An internship program with a twist INKOMPASS is Philip Morris International’s (PMI) global internship program. We offer university students the opportunity to gain work experience in a multinational company and potentially a job offer before they graduate. This program is not just an ordinary internship, rather it’s a journey of learning
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through self-discovery. Developed in collaboration with all departments within our business and HR, the program has a unique two-cycle structure, placing interns in multiple departments and conducting
INKOMPASS interns learn the ropes at Philip Morris
of interns working in procurement are executing a project to implement our ‘paperless office’ program, which will remove a business expense as well as help the environment. In addition to costing,
Recruiting high-caliber talent for a tobacco company is not without its challenges. Like all companies we want the best new talent graduating from university to join our business. To do that we had to develop a completely new way of attracting graduates real projects that impact the day-to-day operations at PMI by contributing to the real needs of the business. Interns are trusted to deliver against tangible business objectives. For example, this year a pair
this also included redesigning processes and a change in management plan. We wanted INKOMPASS not to be a sideshow but demonstrate to interns what it’s really like to work at PMI. However,
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Philip Morris HR director Graeme Smith (centre) with two recent interns
this was only 50% of the solution. While we have a great program we still faced the challenge of connecting with the best new talent. The solution to recruiting the best talent was to roll up our sleeves, get into the weeds and find them ourselves.
A recruitment tool INKOMPASS is targeted at Generation Y students and the best way to reach this audience is through a new and different style of engagement. Our bold campaign, interactive website and two-way communication using social media connects with the social and cultural appetites that Gen Y are renowned for. Primarily through online platforms and a highly interactive assessment process, we are able to identify talent that is the best fit for PMI. Throughout the internship we develop interns through continuous personalised feedback, as well as giving them individual project supervisors to mentor them through
the process. We also assign project ‘buddies’ to help coach interns about the professional workplace and how to get the best results from their projects. As part of our two-cycle structure, interns who are successful in reaching the second cycle will be given the opportunity to delve deeper into a specific department or functional area. They will work on a project that will allow them to discover a particular function’s challenges, opportunities, processes and systems. Following this, top performers receive a job offer with PMI.
International focus Throwing the net broader and leveraging PMI’s international business, INKOMPASS is not just offered to local interns but also to eligible international students. As a global company, with products sold in more than 180 countries around the world, harnessing diversity through international talent is not
only crucial but also satisfies the desire of those who want to live and work abroad. Our capacity to understand, operate and succeed in today’s complex and multicultural world hinges entirely on our ability to attract, develop and retain a workforce whose people, skills and ideas fully reflect the diverse needs and demands of an evolving market. INKOMPASS, as our global internship brand, amplifies our voice in the talent market. We are now building a strong talent pipeline at the entry level, giving us a competitive edge when recruiting the next generation of leaders for PMI. While it’s difficult for companies to recruit great young talent, our experience is showing that dedicated, engaging programs pitched where your target audience gathers is beginning to yield promising results. Fo r more information, visit inkompass.global
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FEATURES
INNOVATION
THE RISE OF INTRAPRENEURIALISM Prime Minister Turnbull recently announced a $1.1bn package to fund Australia’s ‘ideas boom’ for the next four years. However, one expert believes the key to innovation is right in front of business leaders: your employees
IN 1995, or thereabouts, the internet took off, and with this phenomenon came the era of the modern entrepreneur. Of course, entrepreneurs have always existed, but the barrier of entry to start and build a business, even in the 10-20 years prior to 1995, was high. The traditional entrepreneur needed capital, people, perhaps manufacturing facilities, and so on. This is no longer the case. Technology has enabled the ability for almost anyone to start a business. Jack Delosa, author and co-founder of The Entourage, Australia’s largest educator and community of entrepreneurs, cites Netflix as an obvious example of entrepreneurialism at its best. “Netflix has disrupted pay TV, traditional TV and also the DVD industry. Innovation brings with it this sense of creative destruction,
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whereby in the creation of something new, often you see the demise of the old, if they don’t innovate with the times,” he says. “That’s not necessarily new thinking, but it’s central to the popularisation of entrepreneurship. And what that has done is give rise to a new way of thinking about business, how we reach consumers, and how we imagine what’s possible in the future.”
project into entrepreneurship which identified how building successful enterprises isn’t a static or linear endeavour, but rather one of constant change, evolution and iteration. “None of this is about making anyone another Richard Branson,” says Delosa. “I don’t think you can do that – they are very unique individuals with unique DNA. However, what you can do – when looking at the breadth of successful early stage businesses over the last 20 years – is look at some of the methodologies that are applicable to businesses at any stage.” Indeed, with small, nimble companies taking significant market share from our biggest and best known Australian brands faster than ever before, many ASX-listed companies have in turn seen the need to increase their internal innovation capability by embracing approaches such as Design Thinking and Agile Delivery. Not surprisingly, given this knowledge bank, larger organisations have taken note. What if some of the behavioural traits of entrepreneurs could be developed inside an organisation? What if a corporate culture could be built by a group of ‘intrapreneurs’?
Intrapreneurship A new era It is indeed a new era for entrepreneurialism. Delosa says it is no longer a “black art”, and the methodology and thinking behind entrepreneurialism can be found in different bodies of knowledge, such as the lean start-up methodology, and effectuation – a research
An intrapreneur is somebody who takes full ownership of their role, of their responsibilities and of thinking creatively about the future of their function and the value they can add to the organisation. “A traditional employee comes to work, watches the clock, gets their pay and is
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relatively disengaged,” says Delosa. “An intrapreneur comes to work because they believe in the vision of what the organisation is trying to achieve. They come to work because they care about their customers, or if they’re in HR they care about the people in the organisation. So therefore they take ownership, they do the thinking, they take responsibility, they problem solve, and they view the future creatively. All this is reflected in their work and their output.” Do intrapreneurs share other characteristics with entrepreneurs, such as risk-taking and being unafraid of failure? Yes, to some degree, says Delosa. “There are certain political dynamics in play in any existing corporation, so for me
he has created more innovations in space travel over the past 10 years than NASA, Boeing, and the US government has in the past 40 years. “Rather than looking at what was in place yesterday as a perimeter for what’s possible tomorrow, people such as Elon Musk look at what was achieved yesterday and build out from that point,” Delosa says. Contrary to popular perception, innovation is not about making wild uncalculated decisions about the future, in fact, it’s quite the opposite. “Great innovation is often the result of both good and bad judgment from the past, which you only learn from through experience,” says Delosa.
The critical role of creativity Creativity is an essential ingredient of innovation.
“Innovation brings with it this sense of creative destruction, whereby in the creation of something new, often you see the demise of the old”
BUILDING A WORKFORCE OF INTRAPRENEURS Here are some key traits found in most intrapreneurs: 1. They understand strategic objectives and take full responsibility for delivering them 2. They are not confined by what was achieved yesterday or “how we’ve always done it”. They approach the future with blank-canvas thinking, which enables them to develop creative solutions to challenges and opportunities 3. They lead by example 4. Thinking like an intrapreneur involves being flexible and going back to the drawing board if something isn’t working 5. They uphold and embody the values of an organisation in a way that inspires and holds others to account.
Jack Delosa intrapreneurship is not necessarily about thinking like an entrepreneur – it’s thinking more innovatively about your role. Yes, I think intrapreneurs do have a greater tendency to try new things without as much data or evidence to back the idea up, however, they often need to do that within the parameters of their role or corporation.” Delosa adds that this spirit of entrepreneurialism is critical to innovation. He notes that most people – and therefore most organisations – don’t innovate because they use what psychology calls analogical reasoning. Broadly, this is the belief that something will work in the future because it worked in the past. However, entrepreneurs approach problems with ‘principle reasoning’. They firstly ask: where are we today? What is true today? They then expand upon those foundations. Delosa cites Elon Musk (founder of Tesla Motors and PayPal) as the ultimate example, arguing that
In fact, Delosa says it’s impossible to have innovation without creativity, so it’s no surprise to learn that he believes the number one factor that stifles creativity in organisations is the fear of being wrong or having a dumb idea. “The number one thing an organisation can do to foster more creativity is to genuinely back it up with praise and rewards. When you give people permission to think creatively and to behave creatively and truly back it up – so when they do make a mistake you don’t jump down their throat but recognise it as an inevitable stepping stone on the path to learning more so we can innovate better – that’s when you start to see creativity flowing.” There also needs to be a scaffold or system in place to capture great ideas before they get quashed. Delosa, along with co-founder Peter Bradd, have launched the Entourage Beanstalk Factory to deliver entrepreneurial thinking and practices to CEOs and leaders within large organisations.
The name comes from the well-known fairy tale of how Jack and his family’s cow stops providing milk, forcing him to sell it. Instead Jack – an early entrepreneur – trades the cow for some magic beans, which eventually results in a profitable business selling golden eggs, and the hand in marriage of a beautiful princess. “The Entourage Beanstalk Factory isn’t about magic beans but rather a structured training program that helps big businesses re-imagine what they can achieve in the future,” says Delosa. However, he stresses his firm only work with organisations that have a drive from the top to foster innovation. “If there isn’t that drive, it’s like planting a seed in an infertile environment – it just won’t see the light of day,” he says. “We’re looking to work with organisations that truly want to work differently, that truly want to innovate, rather than just talking about it or thinking about it because it’s a buzz word this year.”
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12/05/2016 3:53:11 PM
FEATURES
REWARD & RECOGNITION
THANKS FOR YOUR LOYALTY Recognising the loyalty of employees remains an effective motivational technique, but with significant changes to the workforce in recent years are traditional tenure-based recognition programs still effective? THE DAYS of employees remaining steadfastly with one employer for an extended length of time are well and truly over. Statistics from McCrindle Research (Australia’s Generational Profile) indicate that average tenure for Gen Y (Millennial) employees is 3.4 years. For Gen Z, the youngest entrants to the workforce, it’s predicted to be less than three years, according to Adecco USA. Does this mean the days of tenure-based recognition programs are over? Not quite, but they might need a refresh.
Missing the mark? According to a 2012 study by Bersin and Associates (now Bersin by Deloitte), in organisations where recognition occurs, employee engagement, productivity and customer service are about 14% better than in those where recognition does not occur. These same companies also have 31% lower voluntary turnover than peers without effective recognition programs. Yet according to that same study, The State of Employee Recognition, 87% of organisations reported that their programs are designed to recognise service or tenure. In addition, in organisations where such programs are in place, only 58% of employees know they exist. “Today’s US$46b market for recognition, with its focus on tenure-based programs, clearly is failing, and is out of sync with modern employment practices,” said Josh Bersin, CEO and president, Bersin and Associates. “This new research highlights a huge opportunity
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for companies to redirect existing expenditures to programs that significantly influence engagement and retention.” Mark Robinson, Power2Motivate’s executive general manager – UK, Europe and Asia Pacific, has also observed that years of service programs are not connecting with the modern workforce. “The traditional models just don’t fit the world now. Very few employees stay with a company for 10 years, let alone Millennials
each year of service, from one year onwards. “It has a much bigger impact on the organisation,” he says. “It’s also more effectively utilising the pot of money you have for recognition programs.” If financial rewards are opted for, Robinson says a company might traditionally have handed over $1,000 at the 10-year mark to the employee. However, a new approach might offer $300 at three years, $300 at seven years and another $300 at 10 years. Alternatively, non-financial rewards
“Recognising long service is about maintaining an engaging and meaningful connection with your employees – but really that connection should be occurring each and every day” Mark Robinson, Power2Motivate who have an even shorter average tenure. Yet some companies still start their service anniversaries at 10 years,” he says.
Refreshing the program Robinson says one emerging trend is companies introducing programs that kick in as early as the end of first year of service, or alternatively on three-, seven- and 10-year anniversaries. Power2Motivate walks the talk: they recognise
might be preferred. In most industries, the golden watch or diamond pin just doesn’t cut it anymore. Merchandise and gift cards are in. Robinson suggests that platforms such as Power2Motivate’s allow employees to accrue points. An employee with three years of service might receive points that can be added to their stockpile – they can then select something meaningful to them. “You might get a credit that can be
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Brought to you by
TOP TIPS 1. Use technology – don’t get burdened by more paperwork. Technology can prompt managers about anniversaries, enable timely recognition, and provide access to extensive reward platforms, which allow employees to choose the reward that suits them. 2. Make the recognition meaningful to the employee – and consider the younger generations coming through. A gold watch will not have the same impact on them as it might have for previous generations. 3. Consult employees –What would they like to see from a new-look servicebased recognition program?
redeemed for products or services up to a certain value – it can be movie tickets right through to holidays,” he says. However, Robinson stresses that bigger is not necessarily better when it comes to the rewards that celebrate milestones. He suggests simple e-cards and social recognition can do wonders. “We use our own program internally. For every significant milestone I get notified and the employee’s manager gets notified prior to the anniversary. On the anniversary day we go to that person and say, ‘Congratulations on your one-year anniversary’. It’s amazing how many people don’t know how long they’ve been at a company for. Often just mentioning it to them, talking to them and congratulating them can be more powerful than giving them $50.”
you’ll find that they group all the anniversaries together, so every six months they’ll do a congratulations lunch or they’ll do it at a town hall meeting. Someone whose anniversary was on January 1 may not be recognised until June 30, so there’s no direct correlation. Technology can help make recognition instantaneous,” Robinson says. Technology also enables and empowers managers to recognise their teams, which can in turn create a culture of recognition. “Giving power to the manager and allowing them the authority to use the budget they’ve been allocated to recognise their teams when they’re doing a good job can ensure you start getting repeat behaviour. If people are rewarded for demonstrating the right behaviours they’ll be more likely to repeat that behaviour,” says Robinson.
The role of technology Technology can not only help with the burden of remembering countless anniversary dates, it can also ensure that recognition is timely. “Going back to traditional organisations,
Building a culture of recognition A culture of recognition will also encourage people to share recognition stories, utilise peerto-peer recognition, make recognition easy to do
for both employee and manager, ensure recognition is frequent, and ensure it’s tied to company goals or values. “Recognising long service is about maintaining an engaging and meaningful connection with your employees – but really that connection should be occurring each and every day,” says Robinson. Referring to the Bersin & Associates study, Josh Bersin said modern, re-engineered recognition programs can have a huge impact on business performance. “Companies that scored in the top 20% for building a ‘recognition-rich culture’ had 31% lower voluntary turnover rates. This is a huge statistic. Most CEO’s would pay millions of dollars to reduce voluntary turnover. It turns out that a well-designed recognition program can achieve this result.” Power2Motivate is the global leader of all things performance improvement. We develop and manage some of the world’s biggest and best employee recognition programmes. With offices covering all four corners of the globe, our programmes are available across 150 countries and in 17 languages. With a combination of smart technology, passionate people and excellent partners, we offer our clients a straightforward yet powerful solution at an affordable price. This in turn enables organisations to foster stronger relationships with their employees to boost performance.
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FEATURES
HIGH PERFORMANCE
WHEN IS A TEAM NOT A TEAM? It’s the goal of just about every leader, but unfortunately simply naming a group of people a team does not cut it – let alone when your objective is to create a high-performing executive team. Justin Peckett explains IN EVERY organisation, you will find that work functions require teams. We have sales teams, marketing teams, IT teams – the list goes on. The leaders at the top are usually referred to as the executive or leadership team. Should we consider them a team just because they work together? On the surface level, perhaps. They may have shared objectives, such as market dominance and profit margin. When these KPIs are met does that mean we have a highperforming team in the room, or even a team to begin with? While being on target for bottom-line business results gives reason to believe everyone is working well towards a common goal, the reality can be very different. Key executives typically lead a particular function within the company and therefore might not have the same views on the strategic purpose of the firm as the next member of the team. In our experience, high-performing teams at any level share three common traits: high expectations, high accountability and high-demand leadership. Most functional executive teams demonstrate facets of these traits. High expectations translate to having a clear understanding of individual roles and responsibilities, as well as living up to the
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culture and expected behaviours within the company. High accountability occurs when everyone is and can be held to account for individual performance and conduct. High-demand leadership is recognised as leaders stepping up to the challenge, initiating genuine conversations and a healthy demand that people meet expectations. It is only when these qualities are manifested at an outstanding level that the executive
our trademark?). A clear mandate on a shared purpose and interdependencies will prompt teamwork. Accepting differences and diversity is encouraged and should not hinder the process. It is crucial that every member knows what the team stands for and is aligned in terms of their framework and code of conduct. When guiding principles are set the team is then able to make decisions and choices based on their understanding of both
When trust is built, healthy conflict – conflict with a commitment to action and resolution – is accepted, expected and embraced team become role models for the expected behaviours within the organisation.
Diagnosis is the first step Executive teams should begin with selfreflection and review collective and individual performance as an initial health check. We encourage teams we work with to agree and define their collective purpose (why do we exist as a team?), their team ‘trademark’ (how do we want to be described as a team?) and agreed behaviours (how should we behave to achieve
expected individual and group behaviour. With a coordinated and structured action plan, alongside metrics to determine buy-in, progress can be measured and evaluated over a period of time and an environment for genuine conversations is created. Recognition of the framework against which the team will be measured allows for high levels of accountability.
Secret to high performance One of the key differences we notice between
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HIGH PERFORMANCE HURDLES What do you need to watch out for when attempting to create a high-performing team?
high-performing and lesser teams is the presence of strong professional relationships. This goes beyond footy talk or Friday evening drinks. A strong professional relationship translates to knowing your work environment is safe enough to allow sincere conversations and dialogue. We see this as the ability to provide ongoing support to colleagues, to offer feedback, and to challenge poor behaviour and reward positive outcomes with the desire for both executive-level and individual improvement. Strong professional relationships lead to a higher tendency to collaborate, share information and come together to find ways to overcome setbacks. They allow teams to address individual or shared challenges and display empathy, developing a mature understanding of colleagues. As a leader, a higher level of awareness and a commitment to seeking resolutions will also propel your team towards high performance.
Carrying it with candour Voicing professional opinions sounds extremely straightforward, but we often find when we start working with an organisation that the office culture is in fact not a safe environment for open and honest professional dialogue. Often, people are engaged only in self-centred monologues:
voicing opinions with no consideration for others and no interest in solutions or compromise. Either that, or they choose to vent and complain outside office walls. This lack of resolve to problem-solving is counter-productive to high performance. When trust is built, healthy conflict – conflict with a commitment to action and resolution – is accepted, expected and embraced. For the executive team, where decision-making can involve higher risks or uncertainty, productive conflict and debate underpinned by strong professional relationships and using the agreed behaviours as a reference point can reveal more possibilities and lead to better outcomes for the team, the individual and the organisation.
High performance elements In today’s business environment, a highperforming team is more important than ever to shape business performance. Dealing with ever-changing customer demands, disruptive digital technology and economic uncertainty, an organisation requires a nimble and flexible executive team comprised of complementary skill-sets and personalities to jointly solve and overcome business challenges. Diagnosing the underlying reasons for
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Leaders who don’t believe in the value of instituting cultural change – and the investment required to achieve it.
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Leaders who fear that added rigour and accountability will expose them to scrutiny of their own performance.
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The team has a deep-seated lack of self-belief that they can become high performing.
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Leaders are unwilling or unable to exit team members that don’t meet cultural expectations.
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The team fails to own the new direction and doesn’t self-regulate their agreed behaviours.
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Leaders don’t believe in the value of instituting cultural change – and the investment required to achieve it.
underperformance or wanting to bring the team to the next level requires a systematic approach to evaluate what is hindering and supports team performance. To drive impactful change, there is a need to ensure that the team’s mandate, processes and culture are aligned. No one factor is the sole reason for dysfunction. Recognising the factors that shape team performance, including influences within the organisation and the broader business landscape, will help leaders make adjustments and constantly fine tune their management approach to maintain a highperforming team.
Justin Peckett is a facilitator at Leading Teams. Since joining Leading Teams in 1996 as an athlete facilitator, Justin has worked with clients including Nike, Mercedes Benz and Mattel.
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12/05/2016 3:02:21 PM
FEATURES
OFFICE POLITICS
SEVEN THINGS YOUR CEO WON’T TELL YOU ABOUT OFFICE POLITICS Love it or hate it, subtle or blatant, office politics are bound to occur in every organisation. Cindy Tonkin provides an insightful guide to navigating political pitfalls at work YOU WANT to think that it doesn’t exist but it does. Office politics. When I tell clients that I help others navigate the rocky shoals of the politics in organisations, a very large percentage of them say: “I don’t play politics.” The very woman who first engaged me to train her staff in political acumen told me she didn’t play politics. And yet politics is important. Very few people believe they are playing, but they are. There are so many injuries, a flawed leaderboard, and retired ball players ready to jump back in and get their hands dirty again. It’s a game we can’t
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help but watch. Here are seven things your CEO won’t tell you about office politics. Seven things you are better off knowing.
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It is everywhere
Politics is everywhere. It exists because we care. While the movie and TV world would have us believe the contrary, people who care don’t just breed happy families and kind workplaces. They also breed unhappy families and unkind workplaces. The issue is in caring. And I’m not saying you shouldn’t care.
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You should. You just need to be in an organisation where what you care about is aligned with what other people care about. Take Fran, for example. Fran is all about efficiency. She is fighting for a better, more efficient tomorrow. Because we can afford to do more if we are efficient. Maxine and Fran are always at loggerheads because Maxine cares most about worker participation in decisionmaking. Where that isn’t efficient then she and Fran either clash or run political plays so they don’t have to clash. In this case, politics is a way of avoiding conflict, but it ends up causing conflict too. If there is more than one agenda then politics results.
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Even not playing is playing
All those young innocents who say they won’t play, or don’t play, are either oblivious, or being used as pawns in someone else’s game. Maybe you can stay off the field of politics. But when you don’t know where the field starts or ends, or what the game is, then you are picnicking in a big green field where a rough game of rugby is in progress.
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Not all the important people have titles
The CEO has coffee with the head of marketing every morning. The head of accounts is the marketing guy’s sister-in-law. The receptionist plays squash with the CEO’s administrator. People are connected. Titles matter, but so do connections. Connections are how we build agreement on what we care about and what we care about is what counts in politics. Not every important person has a title.
Just because they’re your boss doesn’t mean you can trust them
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Your boss’ values, what they care about, and how that lines up with what you care about is what makes them trustworthy. Remember that our values change over time. If there’s a choice between feeding their family and feeding yours, most bosses will choose their own.
We all play
Anyone who is pleasing a client, looking after their boss, or getting a colleague to help them on a deadline is playing politics. Just sometimes we think we are being kind, or doing the right thing, or doing a good job. Politics is caring about your job, your boss, your reputation, your products, the quality of your customer experience, and the quality of your work. So we are all playing politics when we care.
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These are unwritten rules because no one needs to write them down. The unwritten rules make your organisational culture. Contravening the unwritten rules is how you make a political faux pas.
The unwritten rules matter
Every organisation has unwritten rules. Rules such as no one listens to anyone who doesn’t outrank them. Or research is king. Marketing trumps sales. Sales trumps warehousing. We say we have an open door policy, but the door’s always closed.
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Politics can be used for good
You can influence people to do great things, such as hire someone who needs a job or get new computers for your team. Influencing to get things done and help people and teams perform is politics too. Politics is how we get things done. When you know the game you can play along or get off the field. Playing along can be very useful if you want to get things working. Politics gets a bad rap, but it’s a tool. Just use it for good and not for evil!
Cindy Tonkin is the consultants’ consultant. She observes politics from the outside and sees a lot of stuff you may not think about initially! Visit politicalacumen.com.au and cindytonkin.com for more insights.
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FEATURES
CHANGE MANAGEMENT
MASTERS OF AMBIGUITY Graham Winter says the time is right for a bold new generation of change leaders. Have you got what it takes? HAVE YOU noticed the trend in the business world to use words starting with the letter ‘A’? Agility, Adaptability, Ambiguity and Accountability come easily to mind. No doubt all four are worthy of a manager’s A-list but which is the most important? Accountability? Maybe, but more likely it’s a competition between agility and adaptability because being nimble and flexible are crucial in a world full of… ambiguity. That one word changes everything. Management loses its certainty, and leadership its confident vision. Strategy becomes less about planning and more about judgment, risk goes from cautious and boring to the main game, and countless other business mainstays are disrupted by that one word: ambiguity. But what does it actually mean? Or more particularly, how is a new generation of leaders not just coping with ambiguity but genuinely mastering it?
What is mastering ambiguity? In the day-to-day cut and thrust of business it is quite easy to see what mastering ambiguity means for change leaders: - It’s deciding to move forward when you don’t have the full picture - It’s looking cool, calm and confident when you’ve no idea what’s going to happen - It’s inspiring your team towards a possible future - It’s reducing ambiguity when others are just marvelling at how vague things look - It’s accepting the unacceptable and finding certainty in the uncertain.
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Anything else? Oh yes, it’s having the skills, the change leadership toolkit and the judgment about what tool or approach to use and when to use it.
Can we learn to master ambiguity? Absolutely, provided that we are willing to accept a little squirm. Let’s explore five practices that are consistently seen amongst the leading edge of change leaders. There’s much to learn from each of these.
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Awareness
A list of ideal attributes of a change leader might include being confident, flexible,
emotionally stable, focused, engaging, strategic, inventive and so on. Let’s be realistic. Only a super hero would fit the bill! Even more so when faced with uncertainty, shock or other pressures. The best change leaders aren’t super heroes. What we see in most is selfawareness of strengths and weaknesses, and more specifically, an understanding of personal tolerance and reactions to the pressures of ambiguity.
KEY TAKEAWAY 1 Great change leaders know their hot buttons and their tolerance levels and they learn how to handle themselves and the shifting load.
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Judgment
Ambiguity usually means that decisions need to be made (or not made) with less than the complete picture. While change junkies are inspired by the adrenalin hit, the change leader searches out stability and what’s closer to certainty. They look for anchors. They’ll ask for what is known, what’s not changing and what can be relied upon. They don’t celebrate ambiguity; they do what can be done to reduce it, but they don’t procrastinate for the perfect decision. They bring other people’s perspectives, they set goals (even though they’ll change them), they are fanatical about feedback, and they won’t accept that data isn’t available until it’s been searched for.
KEY TAKEAWAY 2 Mastering ambiguity isn’t accepting it. It’s finding anchors, looking for what’s clear and then backing your judgment. In a simple metaphor, it’s the professional gambler versus the amateur.
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Resilience
Thriving in ambiguity is as much about mindset as about technical skills or experience. The savvy change leaders share three basic beliefs: 1. Not everything can be controlled 2. Some decisions will be wrong 3. Stress is a natural reaction to being uncertain, so outlets are important. Mindset reflects the assumptions of the leader. Can you see why traditional leaders struggle to master ambiguity? How difficult it must be when you’ve been trained to see your role as to control and be in control, to make the right decisions all the time and to avoid stress.
KEY TAKEAWAY 3 Here’s the mindset: things will sometimes be out of control and it’s better to make a decision than not at all, but we handle that better when there are outlets that help to restore calmness and relaxation.
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Navigation In ambiguity, the plan is always
important. It’s just that the plan changes because circumstances change. Sometimes that means going faster or in a different direction, and sometimes it’s throwing the whole plan out the window. Change leaders are skilled navigators. They are on the move, while counterparts are still planning. They know where they are headed and they know there’s a relationship between
KEY TAKEAWAY 5 Relationships are the glue that holds things together when all around is shifting. Cultivate a network of broad and deep relationships. Structures change, relationships prevail. Where next for change leadership? A paradigm shift is underway in the area of change management and change
Be on the move. Set the plan, and tolerate ambiguity while relentlessly looking for meaning that reduces uncertainty and aids navigation things. Just as the sea farers of old looked at the stars (not because they wanted to go there but for useful information), so do change leaders scan the sky and the ground in front of them in search of patterns.
KEY TAKEAWAY 4 Be on the move. Set the plan, and tolerate ambiguity while relentlessly looking for meaning that reduces uncertainty and aids navigation.
5
Relationships
Broad and deep relationships are fundamental to the success of change leaders as they navigate through shifting conditions. Traditional management relied on status and structure. The new change leaders rely on relationships and connections. It’s quantum physics replacing Newtonian physics because in a world of complexity and chaos everything is defined by its relationship to everything else Change leaders are people leaders. Watch them engage to hear and understand people’s fears and concerns. Why? Because resistance to change isn’t about the physical tangible things, it’s the fear of loss of control, reputation, autonomy, habit, respect and so on.
leadership. Many of the models of change were designed for technical change. Look at them and you’ll see that they assume clear vision, defined boundaries and settled destinations. Most of the big challenges aren’t technical. They are adaptive, which is why change leadership is emerging as the critical capability and toolkit for team and project leaders. For the HR profession the challenge and opportunities are three-fold. First, reclaim change leadership from the change management profession. Their failure rate if nothing else tells you it’s time they changed. Second, embrace ambiguity and don’t hide behind outdated technical processes such as performance management and fixed job descriptions. Third, get alongside the change leaders to help build their toolkit and skills. If HR does these three, then the future is bright because the profession will also become masters of ambiguity. Graham Winter is an Australian psychologist, executive director of Think One Team International and best-selling author of the book Think One Team. Contact him at thinkoneteam.com
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GLOBAL HR PROFILE
CLUB MED
GLOBAL TRAVELLER From a commitment to promoting from within to a brand new enterprise social network, HRD gets a behind-the-scenes look at global hospitality company Club Med’s HR practices hospitality. We’re seeing more and more people interested in a career in hospitality, and more and more specialised schools are being created to cater to that need. On the other hand, this dynamism generates a high level of demand in the work market – the war for talent is indeed a reality.” The company has taken steps to ensure it’s victorious in this war. For one thing, promoting from within is commonplace. Retaining staff for extended periods – in an industry that many would perceive as being more about the contingent workers than career-dedicated professionals – has become a key focus. Bianconi is quick to reel off a list of the benefits of working for a global hospitality company. “We have a lot to offer to the new generation: traveling the world, working with different nationalities, learning new languages, taking on new jobs, as well as career acceleration – our managers
WHAT DO the words Club Med conjure up for you? If you think of pristine beaches, crystal blue resort-style swimming pools and fun, action-packed activities, you wouldn’t be alone. With some 66 resorts around the world, the hospitality giant has become a byword for luxury holidays. As always, there’s a hardworking team behind the scenes to ensure each guest enjoys themselves. Total global staff count
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is over 13,000 and there are 320 people working in HR alone. Marina Bianconi, VP human resources ESAP (East South Asia Pacific), looks after just a small chunk of the organisation’s global HR function – but it’s a critical part. “Hospitality is booming, especially in Asia,” says Bianconi. “On one hand this is very good news, as it’s offering a lot of opportunities for people to work in
ESNS: NOT A COMMUNICATION PANACEA According to a 2013 Deloitte survey, more than 90% of Fortune 500 companies have either a partially or fully implemented enterprise social network (ESN) – a 70% increase over 2011. However, Deloitte also found that 20-30% of employees won’t sign up for an ESN if registration is required. Of those who register, only a third will read content once a week or more, and just 40% will make an ESN post in the average month.
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in resorts are promoted at around 25 years old on average, and our general managers at 32,” she says. Bianconi herself walks the talk. She started her studies in finance but quickly switched to HR “once I realised I was closer to people than numbers,” she laughs. She then joined Club Med as an intern. “It was the beginning of a long and exciting journey,” she says. “I really found that with Club Med my ideal of a company that develops talent was a reality.” She initially worked at the Club Med Headquarters in Paris in the HRSI department, managing projects (evaluations, budget process, recruitment, training), and working with IT to implement internal HR processes. Her career switched to a more operational role and she moved into the Europe-Africa business unit. Following this, she held the position of recruitment director within that same unit, where she handled the recruitment of over 5,000 new employees a year. In 2012, Club Med offered Bianconi the chance to move to Singapore to head up HR for the South East Asia and Pacific Business Unit. “Twenty years ago, HR was not so central in company strategy and remained at an administrative level and I’m so delighted to see that nowadays HR is increasingly considered as a pillar in company strategy,” she says, reflecting back on her career path.
All about communication In 2016, Club Med became the first global tourism company to launch ‘Facebook at Work’, a version of Facebook intended for businesses to help transform employee communications. The platform goes head to head with Microsoft’s Yammer, and other platforms such as Slack, Convo and Socialcast. Improving Club Med’s guest experience and customer service is the ultimate goal and motivation behind offering Facebook at Work to Club Med’s staff. The platform will promote collaboration and innovation from employees, who have the ability to contact one another in any time zone and language. All members of the company will
ENTERPRISE SOCIAL NETWORK ENGAGEMENT TIPS 1. Benchmark against previous internal collaboration tools. Executives should assess what levels of engagement were achieved by previous tools, and how an ESN might be better. They can then decide on the goals for an ESN, such as registration, reading posts, or making posts. 2. Challenge age-related assumptions. Based on Deloitte’s survey findings (see box p53), ESN administrators shouldn’t assume that enrolling younger employees will be easy, or that older workers will be resistant. It might be expected that ESNs, as a relatively new technology, would primarily appeal to younger employees. In fact, the survey found that, compared with 20-29 year-olds, 40-49 year-olds were more than 40% more likely to have registered – and 100% more likely to post more than four times per month. 3. Utilise global best practice. Rates of registration and content consumption and creation vary by country, which suggests there are local best practices for encouraging productive use of enterprise social networks. For example, in Deloitte’s survey, the number of users who posted less than once a month ranged from a low of 41% in one country to a high of 72% in another. 4. Communication and training are essential. Employees will likely need to be encouraged and taught how to make the most of the enterprise social network. Showing ‘how and why’ appears to be critical. Companies should clearly demonstrate the benefits of using the network, such as showing that employees receive faster and higher quality responses to information requests if they use an ESN rather than email. 5. Make ESNs part of existing workflows and business processes. Making these networks part of everyday communicating, collaborating, and creating seems likely to be the tipping point in building engagement and utility.
Our recruitment tagline is: ‘I could have had just a job… Club Med is more than just a job, it’s a life experience’ be connected, from ‘Gentle Organisers’ to members of the general management committee, in the four corners of the world. The platform has been created for mobile, with similar functionality available from the standard Facebook application, such as the ability to ‘like’ and ‘chat’ as well as translation functionalities. “At Club Med, we have 13,000 employees in over 40 countries – not to mention over 66 resorts around the world. As you can imagine, our inboxes fill up very quickly and it can be difficult to stay connected to other countries and villages on the go,” says Bianconi. “Facebook at Work is an excellent tool to connect us to what is happening in our different offices, be it promoting new business ideas, sharing daily office life,
or creating surveys and polls between employees. Ultimately, it helps increase cooperation and idea sharing between employees, and allows us to be more connected in a fluid way.”
The employer of choice quest While enterprise social networks (ESNs) are not a panacea for corporate communication (see box), and are certainly no guarantee of employer of choice status, Bianconi says the company is aiming for just such an accolade. “The fact that our product and culture is very unique helps, as does the opportunity to develop personal and interpersonal qualities much faster than in other experiences. Our recruitment tagline is: ‘I could have had just a job… Club Med is more than just a job, it’s a life experience’.”
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PEOPLE
CAREER PATH
DIVERSITY IS THE KEY
Dearne Price is the new head of HR, APAC for technology firm IRESS, but her career path has included time with an Aussie icon and a manufacturing giant Price successfully completed a Bachelor of Arts and Graduate Diploma in Japanese Business Communication at Monash University. “I lived in Japan for two years from 1989 to 1991 to consolidate my language skills. My Japanese language was to become a key skill which has been utilised in several of my HR roles.”
1992
1992
GRADUATION
JOINS AN AUSTRALIAN ICON Qantas offered a start in people management and provided Price with her first recruitment and L&D experience. She held various cabin crew management positions during her 15-year tenure, and earned her Cert IV in Training and Assessment.
2007
GAINS VALUABLE HR EXPERIENCE AND LEARNS ‘THE TOYOTA WAY’ Price joined the Toyota Technical Centre as an HR consultant and eventually ended up in an assistant HR manager role.
“It taught me about The Toyota Way and the importance of thorough analysis, going to the source when problem solving and building consensus to achieve business results”
2015
SETS UP AN HR-SHARED SERVICES FUNCTION It was while in Malaysia that Price helped to support business process improvement at Brightstar, making HR operations scalable to meet business needs in a cost-effective manner. “We recruited an incredible team to deliver the shared services model – one of my proudest achievements to date.”
2016
STARTING IT ALL OVER AGAIN
In April 2016, Price joined IRESS, a supplier of technology for financial markets and wealth management. Price’s primary responsibility will be formulating and defining IRESS’ HR strategy across the APAC region, in line with global objectives and strategy.
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2012
TACKLES A TRAINING AND DEVELOPMENT ROLE AT TOYOTA Price was offered the opportunity to establish a new L&D function for design engineers, becoming a Toyota-accredited trainer for Toyota Way content. “While I enjoyed this role, I knew I wanted to focus on getting a more senior HR generalist role and looked to broaden my cross-industry experience.”
2013
REGIONAL OPPORTUNITIES AT BRIGHTSTAR CORPORATION While at mobile/telecoms company Brightstar, Price was responsible for 14 countries across the APAC region. “I enjoyed the cultural diversity of the very successful APAC region. Brightstar gave me a fabulous opportunity to work on M&As, with the company having acquired four SoftBank Japanese companies and undertaking a joint venture with Beetel India in 2014. I was the key HR member on the M&A team.”
In the short time I’ve been at IRESS, I can see it’s an incredibly exciting, agile, highperforming business and I’m looking forward to delivering our goal to be an attractive employer, with the best people
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PEOPLE
OTHER LIFE
8,850
Height (in metres) of highest mountain climbed – Mount Everest
2
Number of near-death experiences (once from high-altitude pulmonary edema, once from a fall)
47
Number of times he’s vowed never to go climbing again
VIEW FROM THE TOP Patrick Hollingworth is a TEDx leadership speaker and author. On the side, he’s a keen mountaineer – and he uses those experiences to help businesses navigate through uncertain times TO SAY Patrick Hollingworth is passionate about climbing is an understatement. “My introduction to mountaineering started like it does for most Australian climbers: in the mountains of New Zealand’s Southern Alps. It’s one of the best training grounds for mountaineering anywhere in the world. Its mountains are relatively accessible but are very steep, very high from base to summit and very prone to bad weather!” he explains.
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Mountaineering has taken Hollingworth to countries including the US, Canada, Argentina, France, Switzerland, Pakistan, Nepal and Tibet. “It’s been a great way to travel around the world and get to experience some off-the-beaten-track places,” he says. Along the way, Hollingworth has climbed multiple 8,000-metre peaks unguided, including Mount Everest, yet he remains refreshingly modest about his impressive accomplishments. “I’m not a particularly
good climber, I’m just very curious. I love exploring new areas, and the more uncertain and complex the environment, the better. Or at least that’s how it used to be. As I get older, I find my willingness to get uncomfortable is becoming diminished.” Hollingworth speaks at conferences, and is the author of the recently-released book The Light and Fast Organisation: A New Way of Dealing with Uncertainty, published by Wiley in March 2016.
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