Human Capital magazine issue 8.12 by Key Media

BEST EMPLOYERS BEWARE: THE DOWNSIDE OF POPULARITY P.42 » RELOCATION WOES RESOLVED P.44 » INSIDE HR AT PRICEWATERHOUSECOOPERS P.38 »

HUMAN CAPITAL MAGAZINE | www.hcamag.com

ISSUE 8.12

HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com. au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr. com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus

The winners inside Top 5 service provider awards

IN EVERY ISSUE:

Profile case studies

Best practice examples

The forum

Expert opinion columns

Topical news briefs

EDITORIAL

Two conversations about one thing

eputation: it can take years to build yet can be lost in an instant. Yet positive word of mouth – so crucial when bad news spreads online like wildfire – can be gold for those on the receiving end. Take, for example, a recent conversation I had with a leading HR professional in the hospitality industry. Unprompted by me, this very experienced HR practitioner launched into an enthusiastic and glowing endorsement of a niche recruitment agency. This HR professional valued the recruitment agency not just as a ‘service provider’ but more as a business partner. Among the claims: the managing director “really knows my organisation, is very switched on and calls a spade a spade”, and the whole team “is willing to go above and beyond the call of duty to ensure our needs were met”. In this era where customer/client service seems to be an afterthought, I thought that was a refreshing endorsement. It also provides an insight into how and why certain HR service providers consistently rank highly in the kinds of polls represented in this month’s cover story. Yes, reputation matters. Another conversation, on a totally different topic, came about not through a work associate but a friend, who was talking casually about advice he’d been given by an uncle about a job offer. The pay was higher; the company was seemingly well respected; and he had a friend who already worked there. “Why the hesitation?” I asked. Apparently his uncle, who clearly has a way with words, had likened the employer to “a velvet coffin” – that is, it looks comfortable from the outside, but once in, it’s too comfortable, and those who do manage to escape face discrimination by association. In short, this company’s reputation preceded it – and not in a good way. Rest assured, all the finalists in Human Capital’s Top 5 Service Provider awards, voted on by our readers, have placed reputation and service at the top of their agenda. And as this is officially our December issue, I want to wish all readers a smooth and stress-free transition into the ‘silly season’. We look forward to your continued support and input in 2011.

EDITOR Iain Hopkins

SALES & MARKETING NATIONAL COMMERCIAL MANAGER Sophie Knight

COPY & FEATURES

SALES MANAGER Sarah Wiseman

EDITORIAL ASSISTANT Clare Costigan

MARKETING EXECUTIVE Kerry Corben

PRODUCTION EDITOR Carolin Wun

MARKETING COORDINATOR Anna Keane

PRODUCTION EDITOR James Evans

TRAFFIC MANAGER Stacey Rudd

PRODUCTION EDITOR Jennifer Cross CORPORATE ART & PRODUCTION

MANAGING DIRECTOR Mike Shipley

DESIGN MANAGER Jacqui Alexander

CHIEF OPERATING OFFICER George Walmsley

DESIGNER Paul Mansfield

SALES DIRECTOR Justin Kennedy CHIEF INFORMATION OFFICER Colin Chan

CONTRIBUTORS Carroll & O’Dea Lawyers, The Next Step, Frontier Software, Chandler Macleod Group

HUMAN RESOURCES MANAGER Julia Bookallil

Iain Hopkins, editor

Editorial enquiries Iain Hopkins tel: +61 2 8437 4703 iain.hopkins@keymedia.com.au Advertising enquiries National Commercial Manager, HR Products Sophie Knight tel: +61 2 8437 4733 sophie.knight@keymedia.com.au Sales Manager, HR Products Sarah Wiseman tel: +61 2 8437 4745 sarah.wiseman@keymedia.com.au Subscriptions tel: +61 2 8437 4731 • fax: +61 2 8437 4753 subscriptions@keymedia.com.au Key Media www.keymedia.com.au Key Media Pty Ltd, Regional head office, Level 10, 1 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 fax: +61 2 9439 4599 Offices in Singapore, Hong Kong, Toronto www.hcamag.com Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept as HC can accept no responsibility for loss.

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CONTENTS

Inside this issue

12 Cover story: Countdown to the best With many facets of HR outsourcing predicted to boom in the next decade, Human Capital’s readers have voted for who they believe will be leading the charge. Find out who the Top 5 HR Service Providers are for 2010

42 Popularity blues There is no downside to being popular – or is there? Clare Costigan investigates the hidden implications of achieving ‘best employer’ status

44 Relocation mayhem The two biggest company expenses are typically facilities and staff. Whilst a relocation project initially appears to be about the space itself, Gab Aghion warns companies on the perils of ignoring change management

Regulars 4 In Step – HR career experts 6 Legal 8 HR technology 9 Workforce advisory & management 10 The Forum Letters to the editor Do you have a burning HR or people management issue you would like to share with others? If so, Human Capital would like to hear from you. Send through your comments to editor@hcamag.com. Alternatively, express your thoughts on the readers’ forums at www.hcamag.com

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30 55 Winners! The following four readers are winners of Accor Hotels Gift Cards: Andrew Fallon Samantha Albertini Helen Dalton Lachlan Stott

CONTENTS

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HR Career Experts

PROFESSIONAL SERVICES – WHAT’S THE PROBLEM?

nly 2.4% of HR practitioners would prefer to work in a Professional Services Firm (PSF) according to the HR Viewpoint Survey conducted by The Next Step – a worrying statistic for leaders in this sector trying to attract HR talent. BUT is it fair? To try and answer this question, The Next Step facilitated a panel discussion with two senior HR executives, both of whom have forged successful careers spanning PSFs as well as the corporate sector. Gareth Bennet, HR Director of top-tier law firm Freehills and Tim Sinclair, the Global Human Capital Officer of management consulting firm Booz & Co shared their views on the opportunities and challenges of HR delivery within the professions.

Why the poor reputation of PSFs with HR and is it fair? There was a consensus with the panel that bad behaviour occurs in all industries. With some industries such as PSFs, single incidents become a metaphor for the sector. This is compared to sectors where individual bad behaviour does not become a general comment on the whole industry. Within the professions, the bad behaviour of one Partner tends to brand the entire PSF sector “…Partners, they are a nightmare…” Realistically, with the large numbers of decision makers in a PSF and the diversity of their opinions, some discord is inevitable.

PSFs versus Corporates The panel made the point that the key point of difference for a HR practitioner working within PSFs is the partnership structure. They asserted that partnerships are about trust, loyalty and relationships and these ties are significant and powerful. The legacy within a corporate organisation is mostly linked to its products, market share and brand. This is compared to PSFs where it is more about the people who have created and contributed to the organisation in its past. The panel did acknowledge that the “part-owner” mentality of Partners, in which they see P&L as their own money, results in potential challenges for HR to ensure that firms are investing in future initiatives.

The realities of HR delivery within the Professions People are the product within PSFs. This is why Gareth describes professional services as a “pure HR play”. In PSFs, clients are sourcing intellectual capability, motivation and engagement and therefore HR needs to be at the forefront of the business strategy. As a HR practitioner in PSFs, Gareth’s view was that you can expect to be constantly challenged and intellectually stretched. “In the corporate sector you need to be able to influence an Executive Team of 10 to get HR initiatives over the line, whereas in the Professions you need to influence 210,” Gareth explains. “If you can do this, however, it is an extremely strong driving force in which you can achieve amazing results.” It was Tim’s view that by working in an environment in which HR needs to constantly be on top of its game, HR practitioners influencing skills become some of the best in the HR profession.

Why join a PFS? HR within the Professions has experienced rapid development over the last 15 years and is embracing best practice. Australian professional services firms are today some of the best in class globally. Leadership development, diversity and engagement are done particularly well. Within the corporate sector, HR teams are continually coaching and encouraging Managers to treat the business as their own and shape their decisions on this basis. In the Professions however, this is done automatically and this brings a level of passion and engagement that is incomparable.

What does success look like? Similarly to the corporate sector, success as a HR practitioner within the Professions is being seen as integral to the success of the business. It is about being able to recruit top talent, maintain a pipeline of fantastic people and ensure that they are led by Partners who are striving for success for both themselves and their teams. It is an intensely personal and high-touch environment. They concluded that being a part of a PSF is an immensely satisfying position for many HR professionals.

Lisa Eastick is a Consultant in our Next Gen recruitment team in the Sydney office. For information call (02) 8256 2500 or email leastick@thenextstep.com.au or visit www.thenextstep.com.au

Recent HR Market Moves supplied by The Next Step

After working as the Vice President, Global Resourcing for Deutsche Bank, Craig Williams has joined American Express as Recruitment Director for Aust/NZ and Asia. Prior to this Craig has been with Citibank, IAG and AMP.

Also joining Lion Nathan National Foods in the role of Workplace Relations Leader is Joshua Norton. For the past six years Josh was employed with Ford Financial Asia Pacific.

Stephanie Kavali has joined global leadership and culture

with Printsoft. Having relocated from New Zealand, Angela was previously employed by DHL Global Forwarding & DHL Supply Chain as Human Resource Manager & Project Manager.

consultancy Human Synergistics as Client Services Practice Leader for the Australian business. Prior to a business role with Virgin Blue, Stefanie held HR roles at AMP, GE and Terry White Chemists.

Angela Neilson has commenced in the role of HR Manager

Tenix has appointed Caroline Davitt as the HR Manager for QLD/NSW. Caroline previously held senior HR roles with Qantas Ellison on a permanent basis. Prior to this Katy was with Westpac for Airways and Australian Country Choice. ten years in senior HR roles. Superpartners have appointed Angela Tenace as their National Campbell Page has appointed Colleen Cuthbert as General Organisational Change Manager. Prior to this she worked on Manager, People, Corporate Services & Business Services. Previously many major business transformation projects whilst employed as a Colleen held HR Director level roles with Nacco Materials Handling Consultant with Hewlett Packard. Group and Telstra.

Katy McDonald has accepted the role of HR Director at Minter

After six years at GE Ben Radvin has joined Morgan Stanley Smith Barney as the Vice President of Human Resources. Ben most recently held the role of People & Culture Director for GE Capital.

Brett Wright has accepted the role of Executive Director, People

Chris Eaton will join Lion Nathan National Foods in the role of

Joining United Group Limited as the Head of Organisational Development is Carmel Teusner. Prior to an interim role at Lloyds Banking Group, Carmel held the role of Head of Learning & Organisational Development for British Sky Broadcasting.

Culture & Change Leader. Chris has a wealth of experience gained within the FMCG industry, most recently with Cadbury in the role of Organisation Effectiveness Manager ANZ.

at Blake Dawson. Brett previously held the role of Group Executive Human Resources with St.George.

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

Legal Experts

THE FAIR WORK OMBUDSMAN – AN INDUSTRIAL WATCHDOG WITH TEETH

he WorkChoices legislation introduced by the Howard Government changed many aspects of Australian workplace law, and some of those changes have been retained by Labor. One of the significant changes has been the establishment of a large and well-resourced federal government agency charged with the tasks of ensuring compliance with workplace laws and the protection of employees’ entitlements – the Fair Work Ombudsman (or “FWO”), previously known as the Workplace Ombudsman. Prior to 2007, state and federal government workplace regulators tended to be under-resourced and their impact on Australia’s workplace culture and the rights of workers was limited. With the FWO now on the scene, that state of affairs has changed fundamentally. The Fair Work Ombudsman is an independent regulator and investigator appointed by the federal government to investigate and enforce the provisions of the Fair Work Act. The FWO’s statutory position is, however, independent of government and the FWO can investigate complaints against all national system employers including the Commonwealth. The FWO has statutory power to investigate alleged breaches of the Fair Work Act, including the National Employment Standards (such as leave and notice entitlements), Award or Agreementbased pay rates and the General Protections (discrimination and workplace rights). Notably, the FWO also has the capacity to investigate employers’ prior contraventions of the now-repealed Workplace Relations Act. The FWO, through its appointed inspectors, has statutory power to attend workplaces, interview employees and request and collect employment records, in order to conduct its investigations. If an employer is found to be in default of its obligations under the Fair Work Act, the FWO can issue the employer with a contravention letter and/or a compliance notice. If the employer does not comply with the notice, the FWO may issue a fine or commence Court proceedings against the employer. Orders available in Court proceedings include the repayment of employees’ entitlements, compensation, injunctions, reinstatement and/ or penalties. Penalties range up to $6,600 for individuals and $33,000 for corporations and can be ordered in respect of each particular contravention proved against the employer. It is important for employers to be aware that the FWO has the power to audit workplaces even www.hcamag.com

where no complaint has been received. It may also take action against contraventions discovered in the course of its investigation of a complaint even though such contraventions do not relate to the original complaint. Accordingly, it is essential that employers are aware of their obligations under the Fair Work Act and remain in compliance with these obligations at all times. To illustrate, the FWO has publicised its investigation into a number of 7-Eleven convenience stores in Victoria. Of 56 stores audited, the FWO concluded that 30% of these stores had contravened workplaces laws, with at least 42 contraventions committed by 17 stores. The contraventions FWO says it uncovered included employers’ failure to keep accurate and up-to-date time and wages records, non-supply of pay advices, and engaging in ongoing underpayment practices. FWO reports these investigations resulted in a significant number of compliance notices being issued with almost $33,000 in underpaid wages recovered for employees. Employer cooperation helped avoid prosecution action by FWO. The Fair Work Ombudsman now has sufficient powers and resources to make it an effective watchdog and enforcer of employees’ rights. Recent cases have illustrated that the FWO is undertaking audits and investigations across a number of industries and occupations, for a host of reasons and suspected contraventions. As the FWO is able to investigate all aspects of an employer’s enterprise (without the need for any originating complaint), employers should take pro-active steps to ensure that they comply with their numerous obligations under the Fair Work Act, particularly the new National Employment Standards, and should ensure that their employee records are accurate and up-to-date. Carroll & O’Dea has had significant experience over the last few years representing employers in FWO investigations, which can arise from employee complaints, but most often from targeted industry audits. In our experience, the best defence for an employer to such investigations is by regularly checking workplace compliance through internal controls and regular informal audits. By Janine Smith and Peter Doughman www.codea.com.au

Janine Smith, Associate & Peter Doughman, Solicitor Carroll & O’Dea Lawyers Level 18 St James Centre 111 Elizabeth Street Sydney NSW 2000 Phone 02 9291 7100

HR Technology

WHY CHOOSE A BESTOF-BREED HRIS OVER AN INTEGRATED ERP SOLUTION? QUESTION: Our organisation is currently

considering replacing many of our business applications with one integrated Enterprise Resource Planning (ERP) solution. The IT department fully supports the idea but the people in HR aren’t convinced. What are some of the pitfalls?

ANSWER: There is little doubt that best-of-

breed systems boast specialist functionality that ERP vendors struggle to keep up with. It is understandable that IT departments fully support the acquisition of a single system to replace the variety of specialist applications utilised throughout the enterprise. Maintaining one system will be much easier than maintaining disparate systems, but there are options that will keep both IT and HR happy. As workforce optimisation becomes a key driver for business, human resources, payroll and talent management systems are an area that should not be compromised. It is understandable that your HR team is cautious. If HR is to continue to deliver value to the organisation, they require specialist tools to attract, acquire and retain the talent that drives bottom-line results. While the functionality available in ERP suites has increased substantially in recent years, they still struggle to deliver key functionality in areas such as compensation and talent management. Payroll is a particularly crucial area. In Australia, we have some of the most comprehensive conditions in the world, and when payroll systems are developed offshore they often struggle to accommodate our legislative requirements without massive customisation that can be costly and hard to maintain. Australian HRIS developers are experts around legislative compliance and several work closely with the Australian Taxation Office to maintain compliance. Many ERP systems are foreign owned and view the Australian market as small in comparison to the North American and European markets. The market size can impact ERP vendors’ development resource allocation and their ability to keep ahead of ATO requirements. Integration is often a reason organisations are attracted to ERP solutions – but these days with open databases and powerful reporting tools that argument is easily removed. The depth of information available in today’s best-of-breed HRIS tools is enormously powerful, providing the metrics www.hcamag.com

that enable senior management to make informed decisions. A well architected best-of-breed HRIS application will offer an integration layer that facilitates tight integration with line of business applications where needed and protects sensitive data that should not be shared. Data security is another benefit to be considered with a best-of-breed application. Traditionally, HRIS data is sensitive because it contains workforce compensation and personal details. Many organisations prefer to segregate this information – in particular, the executive payroll. Extensive configuration and customisation options provided by best-of-breed solutions enable clients to further enhance and customise the solution to meet individual needs often without vendor assistance which can be costly. The ability to customise field labels and screens enhances system useability, which promotes system uptake and employee engagement. Implementing best-of-breed applications in most situations is faster and cheaper than implementing an ERP solution, especially those that require programming and extensive customisation. Upgrades of packaged best- of-breed solutions are more frequent and usually less painful – again, with no programming or customisation required. The depth of workforce data and increased functionality moves best-of-breed solutions up the value curve, often outweighing the benefits an allin-one solution may provide. Every organisation’s requirements are unique, however, so a detailed review of your HR, payroll and talent management requirements will guide your team to the right decision. This is an opportune time to consider your workforce strategy. What are your plans and talent management requirements? If the war for talent reignites, will you have the best tools in place to ensure you have the right people in the right place? An extensive array of best-of-breed and ERP solutions are currently in the market. Be sure to select one with a robust technology platform and that is intuitive and efficient. At the end of the day, a key function of any solution should be to automate manual processes and facilitate effective work practices while delivering the crucial workforce data that underpins informed decision making.

Nick Southcombe General Manager Frontier Software Pty Ltd (03) 9639 0777 www.frontiersoftware.com

Workforce Advisory & Management Evolving your Workforce

THE KEY TO RETURN ON TALENT MANAGEMENT INVESTMENT

ustralia’s relatively buoyant response to the GFC has resulted in changes to both the business landscape and the expectations of talent being developed within it. While most businesses understand the logic of investment into Talent Management initiatives, many struggle with the execution. Investment in Talent Management delivers many obvious benefits: »» Growing your own leaders delivers better longterm results than ‘buying in’ talent »» Enhances performance and fiscal returns to the business »» Attracts people to your organisation »» Helps to retain the best people However, mitigating factors can get in the way of executing these initiatives to their full potential: »» Limited commitment from senior leaders to drive and support the program »» Challenges in managing talent initiatives, eg, high turnover of HR staff »» Reduced Talent Management focus through tougher fiscal periods »» Over-emphasis on structuring and strategising rather than ‘doing’ »» Over-emphasis on assessing rather than developing talent »» Development initiatives focused on ‘keeping participants happy’ rather than business outcomes as a measure of success In a post-GFC world, with its inherent additional complexities, this can become even more challenging. »» Employees are increasingly likely to search for new opportunities and tenure is reducing. Talented people are becoming less ‘loyal’. Organisations need to be proactive to keep talent. »» Failures of prominent senior leaders during the GFC have enhanced public scrutiny. However, many organisations still employ greater assessment rigour when hiring frontline staff than their executive team, relying instead on executive search firm reports, resumes and unstructured interviews. The market is becoming increasingly savvy on executive appointments and organisations will be held accountable for ensuring rigorous assessment practices. »» Organisations have become less tolerant of ethereal claims as to the value of Talent Management. Dollar returns must be increasingly transparent and tangible value increases apparent year-on-year.

»» During the GFC, many organisations dropped the ball on Talent Management, some participants lost faith and Talent Management as a business process lost some credibility. To respond to these challenges and ensure maximum value from Talent Management investment, we suggest the following key steps: 1. Confirm concrete benefits and expectations from a ‘Talent Program’ in your business. 2. Understand what is needed, detail succession risks and capability gaps. 3. Prepare and agree on a simple annual project plan. 4. Clarify and document the knowledge, experience, capabilities and personal attributes needed. 5. Engage the senior leadership team in a simple but calibrated process to select high potentials. 6. Ensure participants understand their accountabilities and are motivated to participate in the ‘Talent Program’. Provide alternative development options for those not on a formal ‘Talent Program’. 7. Ensure participant communications and programs are motivational and have a clear business focus. 8. Assess participant development needs quickly and relevantly. 9. Provide real-world project-based opportunities for development to ensure real and obvious returns to the business. 10. Leverage the talent and experience in your organisation for mentoring and coaching. 11. Consolidate people data into one location. Use both objective data and results from real projects to make appointment decisions. 12. Measure participants’ development progress and review against talent requirements. 13. Recognise and reward the talent in your organisation to keep them. 14. Advertise your ‘Talent Management’ successes to the market. 15. Establish and aim for ‘healthy attrition’ rates. 16. Recognise and act when external talent is required. Talent Management remains a relevant and critical issue for organisations. Adherence to key steps, keeping Talent Management simple, engaging, transparent and highly relevant for individuals and businesses will return results far in excess of required investments. www.chandlermacleod.com

Julian Tatton is a Principal Consultant for Chandler Macleod. He has over 10 years’ experience working with clients to design and implement business-relevant and effective people systems. Contact julian.tatton@chandlermacleod.com

THE FORUM l&d

Tip 1 Use a framework as a springboard to discussions about tailored L&D plans By Deborah Burt, director of people, Parsons Brinckerhoff

All about YOU

How can HR individualise learning and development programs for staff – especially executives? 10

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With executives, it helps a great deal to work with an accepted framework as the backdrop for discussions about tailoring individual learning and development plans. This framework provides a measure of consistency in performance expectations for common roles. It means communicating these expectations and holding people accountable for meeting them. For instance, an organisation may expect all managers to be competent across a range of people management skills. Once individuals understand these expectations and gauge their own performance, if a gap or variation exists, we can tailor activities to address this. At Parsons Brinckerhoff (PB) we have developed an in-house competency framework called Success Profiles, which includes senior executive roles. These comprehensive tools identify skills, attributes and competencies and define expected performance levels. Online assessment tools enable people to self-assess, undertake a 180 or 360-degree assessment, and to identify strengths and gaps. Once they have identified the gaps, the online tool suggests various development options to close those gaps. At PB we take the 70/20/10 approach to development very seriously. This approach suggests 70% of a person’s learning will be achieved on the job. But even on-the-job learning needs to be tailored, planned and coached. Here’s an example. If an executive has difficulty in a competency such as ‘delivering exceptional results’ and the specific element identified as problematic is ‘focuses on delivering exceptional results’, then two examples of 70% development activities are: »» Encourage your team to develop a project scorecard with challenging but realistic targets. Regularly monitor progress. »» Provide specific feedback to individuals and the team on how they are contributing to organisational success through their work. Recognise and celebrate success as milestones are achieved. From here, the HR business partner supports individual executives in understanding their assessment and how to implement these activities; and often provides feedback on their performance. The response from staff as they use this framework has shown this is a strong solution to meet our people’s development needs.

THE FORUM l&d

Tip 2 Include more story-telling in your facilitation and design, while boosting the manager’s capability to have development conversations By Colleen Kavanagh, learning and development manager, sanofi-aventis

Let’s apply Peter Senge’s ‘Systems Thinking’ – on the basis that what we can apply in one system, we can apply to others that are larger and more complex. My system here is ‘my learner’ who is an adult and so brings life experience. Adult learners are contextual learners. When an adult learner is provided with examples of how their experience in one context can be applied in their new context, they will quickly construct links between their new knowledge and prior knowledge and ‘transfer their own learning from one place to another’, eg, a salesperson can quickly integrate a new sales call model when links are made to their previous selling or communication experience. One of the keys to telling a good story or using examples is to be artfully vague: that is, to highlight the similarities between the protagonist in the story/ example and your audience. This will increase the audience’s ability to associate with the protagonist and vicariously go through the same experience, arriving at the same understanding or attitude. This is all about moving learners from the known to the unknown. Using story-telling and examples in your facilitation and design individualises learning, and it also allows a more generative learning environment. Continuing with my ‘systems thinking’ approach – consider the learner’s manager. What is their role and how can they assist me to individualise the programs? The Broad and Newstrom* research on ‘Transfer of Learning’ is instructive here. They examined the roles of the identified stakeholders in terms of their influence on the transfer of learning: the Manager of the Learner; the L&D Professional; and the Learner. Rod Matthews at Impact Human Performance Technologies holds a similar view. “The best way to individualise learning and development is to increase the capability of the manager to have development conversations.” The individual’s manager is in the best position to identify knowledge and skill needs prior to a learning intervention, as well as to follow up, reinforce, coach and assess those specific needs. *Broad, ML & Newstrom, JW in their book ‘Transfer of Training: Action-Packed Strategies to Ensure High Payoff From Training Investments’ (published in 1992). Contact Rod Matthews at www.impacthpt.com.au

Tip 3 Know the profiles of your people well By Alessandro Paparelli, regional HR director, Asia-Pacific, Ferragamo

Some time ago, at a seminar, a delegate told me during a break: “coming here is ok for status, but we should never ask for training. It shows weakness.” I’ve rarely heard a more stupid comment! Willingness to learn, on the contrary, shows maturity and confidence in one’s potential. Just like encouraging it, on the company’s side, shows the correct understanding on how the value of its human capital is built, maintained and increased. A proactive approach from both sides is particularly important. Corporate training programs are excellent in improving general skills, but if someone takes the initiative to highlight a specific need, that’s where organisations have an opportunity to really let someone shine. To spot these opportunities, HR professionals should know the profiles of their people well, and have a clear understanding of their current roles. Internal training from expert colleagues is an option that is often underestimated in individualising learning and development programs.

“The individual’s manager is in the best position to identify knowledge and skill needs prior to a learning intervention, and to follow up … and assess those needs” – Colleen Kavanagh

Tip 4 Tie training opportunities to business needs By Vincy Ng, HR director, Asia Pacific, Brady Corporation

We are building up our leadership bench strength, which is part of Brady’s plan to quadruple in size over the next 10 years. The vision that I have is that every employee will have the opportunity to be trained to ensure that they have maximum effectiveness and they can reach their potential. This will be achieved through four separate training areas: »» Foundation: looks at orientation and new hire training. This is a key building block for the next two areas »» Professional: looks at key functional areas including HR, finance and marketing »» Personal: looks at soft skills development and individual effectiveness. These both lead to the final area »» Leadership: looks at relationship and people development skills, and getting the most out of the people that work for you These are the building blocks for a comprehensive matrix of training options that give all Brady staff the chance to be their best. HC www.hcamag.com

COVER STORY Top HR Service Providers

And the award goes to...

With many facets of HR outsourcing predicted to boom in the next decade, Human Capital readers have voted for the providers they believe will lead the charge. From recruitment services to teambuilding to technology, who is the best of the best?

here was an element of ‘survival of the fittest’ about last year’s Human Capital Top HR Service Provider awards. Our winners had all come through a tough 12–18 months. Most people interviewed were cautiously optimistic about a steady return to profitability in 2010. While players in the US, UK and Europe have struggled to stay afloat amidst economic uncertainties, Australia appears to have weathered the storm better than most. So, what of outsource service providers? Over the past decade, HR has evolved to become a strategic partner in many organisations. The ability to outsource basic HR functions to third party businesses has been a key enabler in this process. Some of the functions that are commonly outsourced include recruitment, payroll processing, benefits administration and employee database management. Increasingly, L&D and migration services are also being outsourced. In 2007 the HR outsourcing market in Australia was worth some US$757m. By 2012, technology research company Gartner predicts HR outsourcing will be worth $US1.102bn. According to its Market

Trends: Recession Brings Worry and Opportunity to Worldwide HR BPO Market in 2009 and Beyond report, the financial crisis actually played nicely into the HRO value proposition, particularly around talent management – the process of developing and integrating new workers, developing and keeping current workers and attracting highly skilled workers. The report found the primary reason for this growth was the view that HRO can cut costs, improve efficiencies, and eliminate risks. Clearly, those service providers offering value for money, quality service and market knowledge have risen to the top. Now into its fourth year, the Human Capital Top HR Service Providers provides an insightful snapshot of who is exceeding client expectations. As ‘people’s choice’ awards, decided by the votes of HC readers, they have special resonance. In this article, read about the future of HRO and the latest trends. HC also talks to some of the winners across six key fields: recruitment services, online job boards, HR technology & software, career development & training, teambuilding & incentive providers, and migration & mobility services.

HR Partners The Next Step Michael Page Randstad Adecco Frontier About the survey Software Onetest EmployeeConnect The Human Capital Top HR Taleo HR3 AIM TP3 A.S.K Learning Service Providers survey asked rogenSi UNSW Global SEEK MyCareer our readers for their opinions CareerOne Jobsinhr.com.au LinkedIn RedBalloon on the best service provider API Leisure & Lifestyle Member Advantage Proteus across six different categories Global Corporate Challenge Fragomen Global SIRVA Relocation (see page 12). This year we Greenberg Australia Katie Malyon & Associates Relocations Australia received over 1,100 responses HR Partners The Next Step Michael Page Randstad Adecco Frontier Software from senior HR professionals, Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW CEOs and MDs to our initial Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API survey, followed by a further 350 Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge votes for our list of finalists in Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates a second survey. Respondents Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco voted directly through our online Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning survey form at www.hcamag.com rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn and via our weekly e-newsletter. RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Gold, Silver and Bronze awards Australia Katie Malyon & Associates Relocations have been given based on Australia HR Partners The Next Step Michael the number of votes received, Page Randstad Adecco Frontier Software while two runners-up in each Onetest EmployeeConnect Taleo HR3 AIM category have received Highly TP3 A.S.K Learning rogenSi UNSW Global Recommended awards. SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com. au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr. com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus Global Corporate Challenge Fragomen Global SIRVA Relocation Greenberg Australia Katie Malyon & Associates Relocations Australia HR Partners The Next Step Michael Page Randstad Adecco Frontier Software Onetest EmployeeConnect Taleo HR3 AIM TP3 A.S.K Learning rogenSi UNSW Global SEEK MyCareer CareerOne Jobsinhr.com.au LinkedIn RedBalloon API Leisure & Lifestyle Member Advantage Proteus

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COVER STORY Top HR Service Providers

Preferred recruitment agency Always among the first industries to be hit in a downturn, recruitment agencies also benefit from being the first to pick up as economies improve. For David Owens, managing director of Silver winner HR Partners, 2010 has been “an interesting year in recruitment land” that saw the end of the GFC work its way through the domestic economy and the arrival of the resources boom mark II. “The domestic economy has stabilised and the supply of specialist HR talent has dried up once again,” says Owens. “One of the things about the Australian economy is that it is compact – a small population by comparison with other G20 economies – and talent availability moves quickly from famine to feast and vice versa. This year we’ve seen the pendulum swing.”

Recruitment in 2010 Indeed it has. Gold winner Adecco Group has grown sales by 25% this year and they are on target to have one of their most profitable ever. According to CEO Jeff Doyle this does not mean they can rest easy: “We see the temporary and permanent market continuing to grow in the new year, and as such the Adecco Group will continue not only to adopt a disciplined approach, but a value-focused sales approach.” The results in this year’s HC awards reflect the way many large organisations are adjusting the players in their panels of preferred suppliers. That is, one or two national providers and a couple of smaller niche specialists in each area, such as The Next Step and HR Partners in the HR space. “I think HR is such a specialist area that having a pure play HR recruiter like ourselves on the preferred supplier panel member is very astute,” says Owens. “Of course, over time panels are reviewed. This gives us an opportunity to talk about how we can support a business with their HR recruitment. Our HC Silver medal comes in handy at times like that as well.” Doyle has also noted the trend in HR professionals seeking a small number of national players and an increasing number of niche agencies. In response, Adecco’s broad capability is now delivered through boutique and national brands, ensuring they can channel expert knowledge where it is needed.

New challenges The buzz around recruitment circles is the impact of online professional networking sites like LinkedIn

moving inexorably into the recruitment space. Are these a threat or an opportunity for recruiters? Owens believes that – for the time being – they fall into the ‘asset’ category. “I think recruiters should be careful about the way they work with such media – not overrely or under-rely – but make sure you use it in a way that helps you achieve your goals. Be the dog that wags the tail, not the other way around!” Doyle agrees, and adds that networking sites, when used in the right way, offer a brilliant opportunity for recruitment agencies to source talent and increase brand awareness. “Australians are the largest users of social media in the world, ahead of even the US and UK,” he notes. “As a nation we spend on average almost seven hours a month on networking sites. We have a global agreement with LinkedIn’s Recruiter Package.” In addition to helping recruiters search for talent, Doyle says social media provides an opportunity for agencies to provide a better service for candidates. For example, Adecco has now introduced the Adecco Jobs Australia Facebook application. “Our Facebook app allows job seekers to receive regular, filtered vacancies from our clients on their personal profile,” says Doyle. “We know that if we are serious about offering our candidates ‘better work, better life’, we need to integrate our services into our

Preferred recruitment agency Adecco Group

HR Partners

The Next Step

Randstad

Michael Page

candidates’ lifestyles, providing convenient, userfriendly and personalised methods of interaction.” Looking ahead to 2011, Doyle predicts the industry will continue to grow in revenue throughout the year. However, there will be increased pressure on margins. Adecco also foresees a large growth opportunity in the RPO space – a new development for agencies, given that in the past this space has been dominated by technology-only or admin-only RPO specialists. There is also a slow but steady growth in end-toend RPO, where, for certain positions, the provider assumes responsibility for tasks including selling to candidates, pre-employment screening, interviewing, and hiring. Doyle says Adecco Group’s Hyphen brand is typical of how agencies are positioning themselves to provide alternative solutions to clients. “Hyphen is well positioned to offer clients technological solutions offering innovative ideas, based on speed of recruitment and top talent attraction,” he says.

“Recruiters should be careful about the way they work with [networking sites]. Make sure you use it in a way that helps you achieve your goals” In terms of the future of the niche HR market, Owens says trends are notoriously short-lived – a consequence of the compact market. “In my view, we’ve seen higher volumes of demand in the ‘midmarket’ this year,” he says. “We’ve also seen a recovery in demand from some of the firms operating in sectors most hit by the GFC, and financial services-oriented businesses have certainly been much more active this calendar year.” Owens is optimistic about the next 12 months. He believes wider economic trends will echo the past two quarters: business confidence trending up, unemployment and talent availability trending down. He also anticipates a strengthening global economy, leading to greater career opportunities in the Middle East and Asia-Pacific. While clients are keen to get value for money and exceptional service from their HR service provider partners, for Doyle, there is no great secret to partnering successfully with clients. “It’s simple; we have a responsibility to ask the right questions before providing a solution,” he says. “This way, HR professionals will have confidence they are working with the right provider.”

Preferred recruitment agency WHO?

Adecco Group n “It is great to be recognised by our industry peers and our clients as a superior service provider. The Adecco Group is committed to fulfilling our mission to deliver first-class recruitment and career services to organisations and individuals across the employment lifecycle. As a diverse and specialised organisation, we look forward to finding new ways to lead the way in service excellence. Thank you to all of the HR professionals who voted for us.” Jeff Doyle, CEO, Adecco Group Australia & NZ

WHY? OUR READERS SAY… n “Excellent service, business understanding, fast response, thorough, flexible” n “Superb people who are switched on to what we need – ad hoc, as we tend to manage most of this in-house” www.hcamag.com

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COVER STORY Top HR Service Providers

Preferred recruitment agency WHO?

HR Partners n “I am truly delighted to accept the HC Silver award on behalf of the HR Partners team. It is a significant achievement and clearly signals our position as a leading specialist HR recruitment brand in Australia. Reputations are hard won and easily lost; to win back-to-back Silver medals in this award category indicates that we service our constituency at a consistently high level. I wish to thank my teams in Sydney, Melbourne and Brisbane for their skill, their hard work and the attention paid to each individual – it is undoubtedly these attributes that set us apart as a preferred HR service provider and specialist recruiter.” David Owens, managing director, HR Partners

WHY? OUR READERS SAY… n “HR Partners provide a professional service, their staff are well trained and they value the relationships they hold with both their clients and their candidates” n “HR Partners are utmost professionals; they provide excellent service delivery and they bother to find out what we, the client, want” www.hcamag.com

COVER STORY Top HR Service Providers

Preferred online job board 2009 was the annus horribilis for the employment market, and naturally those sentiments were reflected in the online job board industry. Fortunately, 2010 is a different story, with Kevin Howard, general manager of Bronze winner Job Media (publisher of Jobsinhr.com.au), reporting a steady increase in demand for recruitment advertising, “almost back to the pre-GFC levels that we experienced mid-2008”. That in itself is a very good sign for employment growth in other disciplines, he says. While SEEK is still the outright leader in the online job board sector (with almost three times the vote of its nearest rival), the appearance of specialist sites like Jobsinhr.com.au on the list prove that niche players have an important role to play in feeding jobs to targeted markets. Howard says his team is always looking for new ways to reach HR job seekers and recently created a Twitter feed, so job seekers receive a tweet whenever new HR jobs are posted on the site.

Preferred online job board SEEK

MyCareer

Jobsinhr.com.au

CareerOne

Rise of online networking Perhaps the most interesting development in this year’s survey is the rise of professional networking site LinkedIn. Howard does not feel threatened by sites like LinkedIn as “it is primarily a networking tool”. Unlike the well-known social media sites, LinkedIn was clearly designed with recruitment in mind, but Howard feels it’s primarily a tool for “head hunters – it’s not a job board”. He does, however, see some opportunity to promote Job Media’s products through LinkedIn, which it has done on an ad hoc basis in the past. LinkedIn potentially presents a dual threat to larger traditional job boards. Not only is it the ‘go-to’ site for professional networking, it is also increasingly a valued recruitment tool for those wishing to reach passive candidates. In January this year, LinkedIn Australia made its intentions clear with the launch of LinkedIn Recruiter. Steve Barham, director, Aust/NZ of LinkedIn Hiring Solutions, says the appeal of LinkedIn lies in the ability of users to build and promote their professional brand. Whether looking for the next career opportunity, pitching a project, or simply promoting themselves to peers in their industry, Barham says most people will head online to undertake research. Their first stop? LinkedIn. “Prior to a business meeting or a big proposal, everyone is looking at each other’s LinkedIn profile,”

says Barham. “Prior to meeting a possible employer, increasingly people are checking the company’s LinkedIn presence, or checking if they are connected to anyone already working there. In order to have an outstanding presence people recognise their profile should be complete and include their expertise, their specialties, their picture – it’s all about promoting their professional brand.”

Friend or foe? Does LinkedIn compare itself to online job boards like SEEK? Barham does not believe so. “I think we’re incredibly different. What LinkedIn offers employers is the ability to promote their employment brand to one of the internet’s best professional audiences, to be able to find very specialised talent by using our sophisticated search tool, and to use the LinkedIn Jobs Network, which gets jobs that each employer posts in front of passive candidates,” he says. With 11 million people in the Australian workforce and an unemployment rate hovering around 6%, tapping into passive candidates will be a critical task in the future. A traditional job board, Barham says, will not cut it. “The vast majority of qualified people aren’t going to be looking at job boards; yet they’re already using LinkedIn to collaborate, to learn more about their profession,

COVER STORY Top HR Service Providers

Preferred online job board or professional networking site WHO?

Jobsinhr.com.au n “We are thrilled to win this award for the third consecutive year! Many thanks to everyone who voted for us and of course to all the employers, recruitment companies and job seekers who continue to use our services year after year.” Kevin Howard, general manager, Job Media

WHY? OUR READERS SAY… n “Jobsinhr.com.au provide specific, targeted and extensive reach to an appropriate audience” n “Targeted audience, fantastic customer service. What more could you want from a jobs board?” www.hcamag.com

COVER STORY Top HR Service Providers to connect with colleagues. It also shows you specifically tailored jobs you may be interested in, and it’s really the only place on the internet where that can happen.” And who do those potential candidates consist of? A quick look at LinkedIn’s US member demographics reveals: »» »» »» »»

Preferred HR technology & software provider WHO?

Frontier Software n “Frontier Software is both excited and humbled to receive the Gold award for the fourth consecutive year. It is evidence of our firm commitment to delivering a market leading solution that leverages technology to streamline payroll, HR and talent management. The award culminates a busy year for all our staff and coincides with the launch of our workforce optimisation tools.”

Household income = US$107,000 78% are tertiary educated 42% are decisions-makers Average age = 43 years

In 2011 the LinkedIn juggernaut will likely continue. Career Explorer, recently launched in the US, allows college graduates to research different careers and model different career paths. Users will be able to find relevant job opportunities, top companies, estimated salary ranges as well as people in their network who may help get them there. In addition to connecting users – the usual role of a networking tool such as LinkedIn – relevant facts, statistics, industry trends and advertised jobs will all be targeted at the individual’s work interest and profile. Job seekers can also follow potential employers to receive breaking news and updates, including notifications of new hires or when people leave. “For companies wanting to find the very best people, they’ll continue to broaden their horizons. Using professional networking will be a part of that talent sourcing mix,” Barham says.

Preferred HR technology & software provider Frontier Software

Nick Southcombe, general manager, Frontier Software HR3

WHY? OUR READERS SAY…

Onetest

n “Frontier Software hands down. Sized to fit, complete HRIS offerings. Easy integration and configuration”

EmployeeConnect

n “After much research, Frontier was the best fit for our business and its needs”

Taleo

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COVER STORY Top HR Service Providers

Preferred HR technology & software provider WHO?

HR3 n “The management and staff of HR3 would like to thank the readers of Human Capital magazine for awarding HR3 the Silver medal in the ‘Preferred HR Technology & Software Provider’ category of the ‘Top 5 HR Service Providers 2010’ awards. 2010 marked HR3’s inaugural entry into these awards, so to have received a silver medal at our first attempt is recognition of the dedication and commitment of the fantastic staff at HR3 that made it happen.” Rick Verloop, managing director, HR3

WHY? OUR READERS SAY… n “HR3 offers comprehensive, reliable products with excellent support” n “HR3 is a progressive company prepared to listen to our needs. It provides a high level of support in a prompt and professional manner” www.hcamag.com

COVER STORY Top HR Service Providers

Preferred HR technology & software provider In 2010 the overarching trend in the HRIS space was the take-up of software delivered ‘on demand’ or ‘in the cloud’. Also known as SaaS, this form of delivery has gained traction overseas, and its appeal to local employers is becoming apparent. “The advantage is you’re using your tech provider’s expertise and technology to access the solution,” says Alice Snell, VP research at Highly Recommended winner Taleo. “The solution is accessed through a browser on the internet and there is minimal IT impact for organisations because they’re not hosting it. There is also the ability to implement faster, the overall cost of ownership is lower, and there are configurable – not customised – versions. There’s a big distinction there. Configurable means there are switches that you can throw in the existing system to configure it for your needs, but you’re not having to write custom codes or do custom installations, which are nightmares for upkeep.” The key benefit, of course, is that applications are accessible anywhere at any time – perfect for today’s mobile workforce. However, others are more cautious. Rick Verloop, MD of Silver winner HR3, suggests that ‘on-demand’ technology is merely a re-badge of previously available outsourced models. “While the terminology is re-invented, it is virtually no different to its predecessors such as Application Service Provider [ASP],” he says. “On-demand and the DIY HRIS model don’t offer any support to the end users and that makes them unusable. Many will try on-demand, but most will eventually give up.” Rather than concentrating on the technology or service delivery model, Verloop says customers are more likely to be concerned about finding an overall solution that a) meets their functional requirements and b) is well supported and maintained on an

ongoing basis. “On-demand HRIS and payroll solutions are not getting much traction in Australia,” he says. “Customer support – or lack of – and data isolation are serious issues that we hear a lot about in relation to on-demand solutions.”

New delivery methods Yet technology evolves at an increasingly rapid pace, and the HR field is no exception. The worldwide accessibility to broadband alluded to by Snell has transformed how HRIS is delivered not just to employers but also candidates. John Richards, CEO of Bronze winner Onetest, says that universal access is crucial to accelerating the recruitment process. “Applicants look for jobs online, apply online, and are communicated with via email,” he says. “Onetest has taken a leadership position in adapting our processes to this environment. For instance, each applicant immediately receives a brief feedback report on their results. In the past the grading of a test document alone could take hours or days. Today it is instantaneous.” Onetest, a specialist in candidate screening, believes the major trend is the recognition that traditional methods of candidate selection can be affordably augmented with a range of assessments. If used early in the process, these can save a great deal of wasted time in reading resumes and interviewing individuals who are unlikely to be employed by an organisation. “The growing wave of companies adopting e-recruitment platforms to improve the process are now moving toward universal assessments to further reduce workload, improve the quality of new hires, and understand their new employees from the first day on the job,” says Richards.

2011 trends For employers, Verloop suggests that one trend to look out for in 2011 is the application of unified

Key drivers of outsourcing success • Establish a structured process for managing your employment brand • Centralise the team and streamline processes for consistency • Establish a clear competency framework and consistency in selection processes • Set key metrics aligned to specific business goals and report regularly • Identify an RPO provider with a reputation for integrity and strong values alignment with a view to a shared risk and shared commitment partnership

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Having workforce data in one location with a consistent interface will increase useability and access

n “Onetest is delighted to have been named as one of the top service providers to the HR industry and we thank our clients and industry partners for their support. This award reinforces our commitment to offering Australian organisations a more effective and economical way to recruit and develop talented people, through the combination of leading edge psychology and technology.”

Preferred HR technology & software provider WHO?

Onetest

John Richards, CEO, Onetest

WHY? OUR READERS SAY… n “Onetest has been a great time saver for us, especially for seasonal (bulk) recruitment” n “An outstanding blend of technology/ tools and great service from people who are business savvy”

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COVER STORY Top HR Service Providers

HR technology platforms. “There has been a strong preference for a single integrated employee management solution that incorporates HRIS, payroll, ESS [Employee Self Service], MSS [Manager Self Service] and OHS,” he says. “The primary reason for this appears to be that many have tried to implement ‘best of breed’ solutions from different vendors, but have ended up with too many manual procedures and data integrity issues.” In the past year the business impact of social computing continued to grow and there is a move towards integration of these tools with business applications such as online recruitment. Nick Southcombe, general manager of Gold winner Frontier Software, says the continued growth and popularity of smart phones and tablets has driven the need to mobilise human capital management and provide remote 24/7 access to workforce data. Earlier this year Frontier Software were among the first to market in Australia, with the launch of the Mobile HR21 application, giving clients ESS functionality on the iPhone and other smart phones. Verloop adds that while this trend is taking off, there are hurdles to deploying the technology widely through a workforce. These include issues related to training, employee age and technological literacy.

Post GFC, Southcombe says the increased need for organisations to do more with less extends to the workforce. “Productivity enablement is a growing trend and vendors that provide the tools to enhance productivity and streamline processes will continue to thrive in 2011 and beyond,” he says. “Systems that support talent management and employee lifecycle management will be increasingly in demand.” For its part, Taleo has been doing extensive work around talent analytics, with the intention of creating ‘talent intelligence’. This is different from talent information. It is structured-format talent information on platforms that can then use analytics to provide information on the people needed to run the business. The inputting of employee information into these ‘dynamic profiles’ can start at candidate level, and be added to over time. Ultimately, Southcombe predicts that having workforce data in one location with a consistent interface will increase useability and access to workforce metrics. “In 2010 and beyond the HRIS is no longer just delivering tools to manage sick leave and payroll,” he says. “The HRIS has matured and is increasingly viewed by management as an important device to drive change, deliver human innovation and improve productivity.”

Vendor management secrets “No company should be paying a premium for basic HR transactions. Whether a service is provided in-house or through an outside vendor, it’s the CHRO’s job to benchmark cost and quality against the market’s most efficient providers – and to demand a comparable level of performance. After all, that’s how the CEO, CFO and shareholders look at it. “In the end, the C-suite doesn’t really care who provides their HR service, as long as it’s cheap and effective. Of course, they also expect you to know everything about their function and to anticipate their HR operating requirements – even before they do.” – Deloitte, Strategist and Steward: The Evolving Role of the CHRO Key processes include: Determine the HR service delivery model: Structure the HR function to

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manage a truly global workforce. Determine the right mix of delivery channels, eg, shared services, HR portals, external vendors and employee self-service. Identify HR processes that are good candidates for outsourcing and prepare a rigorous business case. Design and foster the optimal connection between HR and the company: Manage the interface between HR and all areas of the company. Serve as the single point of contact for all HR services. Identify and select external vendors: Establish selection criteria and a formal scorecard. Lead the selection process, conducting due diligence and checking references. Structure and manage vendor relationships: Negotiate contract terms and approve the statement of work. Oversee the transition of people and

systems as needed. Monitor vendor performance. Manage in-house HR technology and development: Keep abreast of technology developments. Advise senior leadership about HR technologies that warrant a ‘big bet’. Oversee development, testing, and rollout of HR systems. Manage HR data, reporting and analytics: Identify people-related analyses that are critical to business strategy. Market those reports internally, helping the C-suite and other leaders understand and act on the insights. Key performance measures include: HR delivery cost per employee HR expense as a percentage of total operating expense Vendor service level agreements Customer satisfaction

COVER STORY Top HR Service Providers

Preferred HR technology & software provider WHO?

Taleo n “Taleo is proud to accept the HC Highly Recommended award. Taleo has a unique position as the only vendor to offer a complete talent management suite including recruiting, performance management, compensation and learning. This award is testament to our company’s talented team that consistently focuses on achieving high levels of customer satisfaction and product innovation, which drives our customers’ success. We wish to thank those HC readers who acknowledged our efforts through voting Taleo as an HR technology provider of choice for all organisations in Australia.” Alice Snell, vice president, Taleo Research

WHY? OUR READERS SAY… n “Based on my research Taleo had the best product for our needs that was affordable, flexible and configurable” www.hcamag.com

Preferred career development & training provider

Preferred career development & training provider WHO?

AIM

n AIM is a national collective of members, management & leadership experts and trainers unified by a common vision of “Building better managers and better leaders for a better society”. Every AIM office and all of their teams take great pride in delivering on this vision and we are all thrilled to be at the forefront of making Australians better managers.

How can you tell an employer of choice from a run-of-the-mill employer? Perhaps take a look at training budgets during the GFC. Steve Lemlin, chief executive of Silver winner TP3, says that organisations that value the development of their people never stopped investing in professional development. Indeed, rather than cutting back or scrapping L&D altogether, they simply looked at different ways of delivering development opportunities to employees. “At TP3 we’ve seen an increase in organisations looking for customised learning to meet their specific requirements with immediate integration and relevance to their workplace environments,” Lemlin says. “For others developing customised learning, approval for training investment is treated with caution. This longer time frame for approval is because of the investment in cost and time for releasing the individuals from their work.”

Learning on demand A great way to individualise learning, Lemlin suggests, is to deliver learning “at the point of need”.

Preferred career development & training provider AIM

TP3

WHY? OUR READERS SAY… n “AIM has a high standard of training, great reputation, fantastic delivery” n “AIM has good quality professional training and development courses”

A.S.K Learning

rogenSi

UNSW Global

COVER STORY Top HR Service Providers

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COVER STORY Top HR Service Providers

“Often organisations get caught up creating a learning program at the start of a project or system implementation, then assume that people will be able to recall the information provided. But when people get into stressful situations or access technology they don’t use every day, they waste time and effort finding ways to work through it,” he says. By providing learning at the point of need, people can access quick reference guides or performance support tools to get them through the issue effectively. Alternatively, by providing coaching or online real-time support, people can ask questions to get them through their need.

2011 trends L&D has also shifted on three other fronts. One is the rise of e-learning to complement traditional methods. Traditionally, training programs were delivered through one medium – usually face-to-face. However, this approach, cynically dismissed by some pundits as ‘spray and pray’, had its limitations. Although e-learning arrived with much hype, which has perhaps not yet been justified, there has been an undeniable trend towards blended learning. This is an integrated program that combines face-to-face training and e-learning modules. This is effective on two fronts: it engages learners on multiple levels, and can prove more economical for the organisation. Lemlin believes there is an increased realisation that human and technology resources have more potential than is currently being utilised. He adds that more organisations are investing in improving the capabilities of their people through improving their technology. “Technology is being used to combat typical L&D challenges such as learner availability, relevance and immediacy,” he says. “There is an increased desire for blended learning solutions to be accessible faster than ever before by multi-site and flexi-time workforces.” Indeed, there is growing evidence to suggest that individuals (and teams) are using the latest online social tools for ‘informal learning’. Instead of going to the learning management system (LMS) to find answers to their questions or solve problems, they are using tools like Google, Wikipedia or YouTube, or simply posting questions to their networks on Twitter or Facebook in order to get immediate, up-to-date and relevant answers. The other shift has been the content of courses. The GFC has left many senior and middle managers dealing with high levels of disengagement,

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“Technology is being used to combat typical L&D challenges such as learner availability, relevance and immediacy” which Lemlin says creates demand for better communication and stronger internal and external relationships. “The need for improved knowledge sharing and harvesting will become increasingly apparent to many organisations. Because of this, learning will begin to focus on the dissemination, distribution and inclusion of information to staff,” he says. The hot buttons in contemporary business – climate change, sustainability, corporate governance, discontinuity, globalisation and program management – will likely emerge as issues to be addressed in corporate learning programs. Lemlin anticipates that organisations will increasingly have a desire to build agility and resilience throughout their management teams and workforce. This will bring a greater need for courses and understanding in emotional intelligence and change management. The final trend is recognition of the value in having ‘quality learning’ in the workplace. This means that even the traditional ‘jewel in the crown’ of executive education – the MBA – is being reined in to provide practice alongside theory, eg, crediting inhouse development programs or a work-based project and assessing students around these. Practical tasks often demand more of the learner than a standard graduate unit, and of course for the employer it means they get a project or business issue tackled with best practice theory behind it.

COVER STORY Top HR Service Providers

Preferred career development & training provider WHO?

TP3

n “TP3 sets out to satisfy and reward its clients, so it is extremely satisfying and humbling when clients vote to reward TP3. It is reassuring to be recognised for continuing to deliver high levels of customer satisfaction during a time of creating TP3 from Pollak Learning Alliance and TACTICS Consulting. We look forward to the challenge of aiming for Gold in 2011.” Steve Lemlin, chief executive, TP3

WHY? OUR READERS SAY… n “TP3 has excellent courses and trainers” n “I’ve found TP3 to have a fantastic, broad coverage of training options and staff who take the time to know their clients”

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COVER STORY Top HR Service Providers

Preferred career development & training provider WHO?

rogenSi n “On behalf of rogenSi I would like to thank the readers of Human Capital magazine. As a training and consultancy organisation with over 30 years’ experience in the Australian market, we understand the components that need to align to deliver exceptional performance for individuals and businesses; we appreciate the recognition of our business in HC for the third year! Many thanks.” Gerald Tapper, director, rogenSi

WHY? OUR READERS SAY… n “The rogenSi consultants are so much fun to work with and understand our complex business and diverse people” n “Amazing results; tailor-made solutions; really understands the business”

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COVER STORY Top HR Service Providers

Preferred incentive/teambuilding provider Where should organisations be focusing their incentive programs now that the economy has picked up? Who better to respond than James Wright, account director with perennial Gold winner RedBalloon. Wright feels that the best employers, and not just the Hewitt survey participants or winners, but the ones that really understand that non-cash incentives and recognition programs are cost-effective strategies for business growth and employee engagement, didn’t stop spending during the downturn. “RedBalloon launched new programs with many businesses during the downturn who were wise to the high ROI from upping the ante when everyone else was cutting back,” he says. “Those businesses that for whatever reason slowed down or slashed their incentive budgets need to be careful about how they communicate the return or launch of a program.”

Preferred incentive/ teambuilding provider RedBalloon

Global Corporate Challenge

API Leisure & Lifestyle

Proteus

Member Advantage

What to rework now? Indeed, employees are skeptical of quick-fix strategies and see straight through them, so they are often a waste of resources. Wright’s advice is to focus on reaffirming who they are with their people. “Reward behaviours, best practice and alignment to values, manoeuvre to allow the workforce pride in their brand again, and get people talking,” he says. Wright also suggests that rather than being cautious in target or goal setting, now is the time to aim high. He notes that an incentive program must, by definition, pay for itself. “RedBalloon has found time and time again that you can achieve extraordinary results by running a program where the seemingly impossible is simply created and communicated as a possibility for those that you are incentivising,” Wright says. “We all like to play a big game if given the opportunity and will step up. The worst thing that any program manager can do is change the rules or the targets mid-game; it lacks integrity and will disengage your audience.” Wright suggests that now is the time to be setting “big, hairy, audacious stretch targets”. The RedBalloon corporate team has set its own audacious

goal: $1m on a single invoice. Not only will the French champagne be broken out for the whole business, but the person closing the deal will receive a business class shopping trip to Paris (with the CEO) to spend their commission. “Trust me,” says Wright, “the whole team is playing hard for that one, I already know which hotel I would pick for the trip.” Rather than benefits or rewards just for high achievers, which will act as a motivator only for those already at the top or near the top of the tree, incentives need to elicit a behaviour change in as many team members as possible. “Not everyone will be a winner, but everyone needs to know that there is a reasonable chance of success if they play hard,” says Wright. “If the top 25% of performers are going to get rewards, I would expect to see a performance improvement from at least the top 40% of the team. Reward the top 40% and get a behaviour change from 60%. Get creative and look at forming leagues within teams or rewarding the best improvers as well as the high flyers.”

“The real impact of any non-cash program is measured by the shift in culture. If it’s really working you can feel it when you walk into the reception area six months after the launch” www.hcamag.com

COVER STORY Top HR Service Providers

Benefits programs An alternative to a points-based incentive system is a benefits program open to all employees. Bronze winner API Leisure & Lifestyle’s Employee Benefits Program is provided to all permanent employees within each client organisation, with the goal of strengthening their employment brand and enhancing employee morale. The API program provides employees with a one-stop shop for all their leisure and lifestyle needs. Employees enjoy significant savings, convenience and preferential servicing across a wide range of professional, financial, entertainment, wellbeing, shopping, home and travel services. According to Kylie Green, national BDM at API Leisure & Lifestyle, the key areas to consider with employee benefits programs are the range of benefits relative to staff demographics, tangibility, frequency of communication and level of servicing and reporting. “This ensures that all employees, including quiet achievers, are recognised for their contribution to the organisation,” says Green.

Teambuilding Increasingly, organisations are thinking outside the box when it comes to benefits that employees may enjoy. Silver winner Global Corporate Challenge is a case in point. Through its fun approach to fitness, the GCC not only improves the health of employees, it also encourages rich teambuilding opportunities. The GCC will be hosting 150,000 participants from 65 countries and 1,200 organisations in 2011. For every participant that is entered into the GCC, the organisation will be sponsoring a child through a school to be involved in the free Global Children’s Challenge. That means that overall there will be 300,000 people getting active through GCC’s programs in 2011. James English, global operations director at Global Corporate Challenge, says that for any corporate health program to really work, it should be team based. Organisations enter teams of seven, including a captain. “Over the four months, teams work together to get more active each day,” he says. “Feedback has been extremely positive as the GCC doesn’t just bring working groups closer together, it also has the ability to engage employees from other offices, remote locations and even on the other side of the world.” While English believes the only way that an individual can improve their health is if they take

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“When you engage staff with something they enjoy they can achieve incredible things” personal responsibility for it, he also knows that an employer has a vested interest in the wellbeing of its staff. “By offering measurable and effective programs like the GCC an employer is enabling and supporting their staff to live a healthier life. When you engage staff with something they enjoy they can achieve incredible things. Engagement is the key to the GCC and its ability to establish the sustainable commitment and motivation needed to bring about a long-term change to habits,” he says. English cites an independent study conducted by Lancaster University on nearly 1,000 GCC participants. They reported a significant increase in concentration levels at work, enjoyment of day-to-day activities, overall confidence, general happiness and self-esteem – “all this through the implementation of the GCC and supported by employers,” he says. Whether it’s a benefits program, an incentive program or a teambuilding program, all of our winners agree that programs can fail through lack of communication, poor planning, uninspiring rewards or a lack of leadership backing and commitment. “The real impact of any non-cash program is measured by the shift in culture,” Wright says. “If it’s really working you can feel it when you walk into the reception area six months after the launch.”

COVER STORY Top HR Service Providers

Preferred teambuilding or incentive provider WHO?

RedBalloon n “It’s such an honour to be acknowledged by the HR industry in this way. Close to 900,000 people have now had a RedBalloon experience – and many were made available by businesses who know that ‘giving their people a good time’ means they are more likely to be engaged and talk about their workplace as an employer of choice.” Matthew Geraghty, head of corporate, RedBalloon

WHY? OUR READERS SAY… n “RedBalloon offers a wider range of gifts and incentives and these are specific to our employees” n “RedBalloon has great choices, good value, excellent customer service, and their offerings align with their company ethics and values” www.hcamag.com

COVER STORY Top HR Service Providers

Preferred migration & mobility service provider Net Overseas Migration (NOM) is the net gain or loss of population through immigration to Australia and emigration from Australia. This is an important factor that underpins the Australian economy as it has a direct impact on issues such as Australia’s skilled and unskilled labour supply.

Migration state of play Between 2006 and 2009, NOM averaged 244,000 people per year. This figure is now in decline and a cumulative shortfall of 100,000 per year over the next four years is predicted. Treasury’s Intergenerational Report 2010 states that approximately 89% of migrants are aged under 40 at time of migration to Australia, whereas only 55% of the resident population are under 40. Pauline O’Loughlin, practice manager at Silver winner Katie Malyon & Associates, says, “Clearly, the rate and age of the migrant population as compared to our resident population helps to curb the rate of population ageing, a challenge faced not only by the Australian economy but also by the global economy.” Katie Malyon, principal, adds that the upswing in migrant numbers from 2006 was due to a rapid increase in temporary demand-driven migration, including the 457 and international student visa programs. “The recent decline in migrant numbers reflects government’s tightening of immigration policy in response to the GFC and a response to voter sentiments,” she says. While some reform is overdue, particularly in the area of international students, the consensus from our award winners is that the government must consider the negative impact of reduced migrant flow on the quantity and quality of Australia’s skilled labour supply. O’Loughlin continues: “In order for employers in Australia to compete in the international business arena, they need access to skilled labour.” Australia is currently experiencing acute skills shortages in a number of sectors including medical, engineering, resources and IT. The Department of Immigration and Citizenship (DIAC) reports that application rates steadily increased over the second half of 2009–10. The number of primary 457 visa applications lodged in June 2010 was 9% higher than the previous month, and 20% higher than June 2009. The 4,174 applications lodged in June 2010 was the highest

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number lodged in a month since December 2008. However, it should be remembered that since 14 September 2009, visa holders can change employer without lodging a new visa application so comparisons with last year should be treated with some caution.

DIAC changes In order to increase integrity in the program, significant changes to the 457 visa regime came into effect on 14 September 2009, with major consequences for all business sponsors. The 457 program now includes a heightened sanctions regime including civil penalties and infringement notices. Sponsors must have incurred a level of expenditure on training Australian citizens which meets at least one of the following requirements: »» Benchmark A – at least 2% of payroll is allocated to an industry training fund »» Benchmark B – at least 1% of payroll expenditure is on training Australian citizens Teresa Liu, partner at Bronze winner Fragomen, says further obligations include the ongoing requirement to provide terms and conditions at least equivalent to their Australian counterparts at the same workplace, and a range of notification and

Preferred migration & mobility service provider Relocations Australia

Katie Malyon & Associates

Fragomen Global

SIRVA Relocation

Greenberg Australia

COVER STORY Top HR Service Providers

Preferred migration & mobility provider WHO?

Katie Malyon & Associates n “We are honoured to receive the Silver medal in the Migration and Mobility category. Having operated for just five years, this is a proud achievement. I take this opportunity to thank clients and staff for their support: it demonstrates our commitment to TEAM work – Together Everyone Achieves More.” Katie Malyon, principal, Katie Malyon & Associates

WHY? OUR READERS SAY… n “Katie Malyon & Associates provide seminars and newsletters to keep clients up to date and reply to queries promptly. Very professional” n “Katie Malyon are extremely professional and provide an excellent, timely and cost-effective service”

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COVER STORY Top HR Service Providers

Preferred migration & mobility provider WHO?

SIRVA Relocation n “We are delighted to receive this award and recognition as a top HR service provider for Migration and Mobility. Thank you to our clients and everyone who voted for us, and to our passionate Immigration Consultants for their dedication and hard work. This award reinforces SIRVA Relocation’s commitment to being our clients’ trusted advisors and partners and exceeding their expectations through proactive and strategic solutions and corporate compliance.” Nigel Smith, general manager, SIRVA Relocation

WHY? OUR READERS SAY… n “Great service and rates” n “We’ve had great feedback from employees about the services SIRVA provides”

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related record keeping obligations to the department within certain set time frames such as termination of employment (typically 10 days), payment of return travel costs, and changes in job duties. In addition, post 14 September 2009, 457 visa holders are now required to hold private health insurance. “Where a sponsor is found not to have complied with these obligations the department may take enforcement action which includes imposing administrative sanctions such as a bar from using the program for a period of time, issuing infringement notices or applying for a civil penalty order through the federal court,” says Liu. From July 2009 to the end of April 2010, 147 sponsors have been sanctioned. This is 13% lower than the same period last program year and Liu believes this may reflect the heightened awareness, understanding and actions being made by businesses in their recruitment, planning and management of their foreign nationals since changes in the law were introduced in September 2009. Malyon states that the changes have resulted in greater clarity of what now constitutes sponsor obligations, when they start and when they end. Employers must now maintain records and this is placing pressure on HR practitioners to not only do this but also to ensure all stakeholders involved in the recruitment and retention of their expatriate population understand the new regime. O’Loughlin adds: “The clear message from DIAC is that if sponsors wish to continue to access sponsorship and labour agreement arrangements they must be compliant.”

2011 trends Looking ahead to 2011, there are several areas for HR to be aware of. Liu says the government has already indicated that the permanent Employer Nomination (sponsored) program will be undergoing review. While the government continues to favour and afford high priority to this skilled program, Liu expects changes to be made during 2011 as a result of the review. “One major factor that has led to this review has been the expectation that the application rate under this program will continue to increase and will make up a substantial proportion of the skilled migration program overall,” she says. The rise and expected continuing rise in permanent applications under this program has been the result of the stronger demand by employers for permanent labour and the resultant conversion of

COVER STORY Top HR Service Providers

Employers should be aware of the tightening of requirements under the general skilled migration program (expected to further tighten in 2011) 457 visa holders to permanent residence under this avenue. Secondly, employers should be aware of the tightening of requirements under the general skilled migration program (incidentally expected to further tighten in 2011), which is anticipated to also fuel added demand under the Employer Nomination Scheme (ENS) as individuals find it increasingly difficult to meet general skilled migration program requirements and therefore seek to remain in Australia permanently through an Australian employer. DIAC Melbourne has also recently conducted a review of the ENS and Regional Sponsored Migration Scheme (RSMS), which revealed that there has been an increase in lower quality cases and an increase in applications based on exceptional circumstances. Following this review, recommendations have been made to the Minister to increase integrity in the program, with emphasis on a demonstrated commitment to training Australians, the genuine business need for the position to be filled and the sponsored person remaining in the position after visa grant. DIAC has power to cancel permanent residence visas granted under RSMS in limited circumstances. It is possible this may be extended to ENS visas. To date, the power has not been used. “In view of this, we expect increased scrutiny of ENS applications, particularly where an applicant is aged over 45,” says Malyon. DIAC has recently confirmed it is “actively monitoring” sponsors for compliance with the strengthened temporary residence sponsorship obligations. Its inspectors are making site visits to monitor compliance – and sanctioning sponsors where obligations are not met or misleading information has been provided. In FY 2009/10, DIAC made 1,421 site visits, approximately 8% of sponsors. Although migration agents are yet to see the impact of information sharing powers that DIAC has with the ATO, Fair Work Ombudsman and State OH&S agencies, O’Loughlin advises that “employers need to be prepared for a DIAC audit – a pre-audit health check is recommended”. HC www.hcamag.com

PROFILE Sophie Crawford-Jones

Not just a

numb 3rs game P

rior to joining professional services giant PricewaterhouseCoopers, Sophie CrawfordJones, PwC human capital leader, had already enjoyed a diverse and challenging career. Early in her career she worked as a consultant in the banking sector, focusing mainly on people practice issues, strategy issues and outsourcing arrangements. She also worked in the legal sector across various projects. Originally based in London, she eventually worked on a project in New York, and then moved to Australia where she mainly worked in Asia. Crawford-Jones points to this time in her career as being both challenging and rewarding. Specifically, she notes that several of the projects that she worked on took place in “significant organisations, such as leading global banks”, and she gained immense satisfaction from watching her team’s work result in significant changes to work practices in the client organisations. “We were able to see people adapt and save on costs and really flourish in their relationships through some of the change programs that we were able to put in place. Also the process you go through in terms of winning such big assignments; embedding yourself

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Employing 6,000 people in Australia, operating in 151 countries globally and providing services to 80% of the ASX 200 in FY10 are just a few of PwC’s powerhouse stats. Human Capital profiles the HR leader working tirelessly behind the scenes to make it all happen

PROFILE Sophie Crawford-Jones

into an organisation as part of their team; becoming accepted as part of their team; and becoming really trusted in that consulting capacity,” she says. However, in those early stages of her career, Crawford-Jones admits she had little thought of switching her career focus to HR. “The attraction to HR was not an obvious one,” she says. “I liked being a consultant and thought that the most important issues in the human capital domain were handled by consultants at that time. The human capital role itself was usually highly operational and tactical, not particularly well regarded within a company.” Times and perceptions have changed. CrawfordJones was attracted to PwC as it was about to embark on a transformation, taking the partnership to a place where it was truly engaged with its people rather than being more of a hierarchical structure. As things have progressed the firm has continued to transform itself into a client-facing, client-centric organisation. “This continues to be very attractive to me, as I mostly enjoy the transformational and strategy design aspects of my human capital leadership role at PwC,” she says.

HR at PwC In her current role, Crawford-Jones has responsibility for the Human Capital Division at PwC. As the human capital leader, she has responsibilities on the firm’s executive leadership team from a strategy perspective and also holds responsibility for leading the PwC experience transformation program across the firm. She also leads the steering committee for that particular program. In terms of direct reports, she has a director team of 10 working across the full human capital

structure of talents, development, performance and transformation. “Significant proportions of our team are embedded into the business and work side-byside with the business every day,” she explains. “This includes development relationship managers, business relationship managers, and our recruiters, who also are specifically aligned to the business.” Recruitment processes are a mix of in-house and outsourcing. The PwC in-house team works closely with the business to recruit the best people, yet they very much operate along the lines of an agency. “They have a keep-in-touch program with candidates; they build strong relationships with candidates over a long period of time and continue those conversations until such time that we feel we have the appropriate opportunity for the candidate,” Crawford-Jones says.

An individual approach By all accounts, the PwC team will need all the help it can get. Crawford-Jones admits the war for talent is back on. “We’re finding a ‘war for talent’ is happening in a short-term frame of mind in some industries, where companies at the top end are offering people more money. Our model offers people a very sustainable career where they can grow their earnings and experience over a long period of time. So in some ways, that enables us to combat that type of competitiveness in the marketplace,” she says. So how does PwC differentiate itself from its competitors? What does the firm consider to be its EVP? “I think it’s really the approach that we take to assess people’s strengths and full potential that allows us to better attract the right talent to the firm,” Crawford-Jones says. “We look at individual strengths and help people recognise and identify how

“We look at individual strengths and help people recognise and identify how they’d be able to unleash those strengths within PwC” – Sophie Crawford-Jones

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PROFILE Sophie Crawford-Jones

they’d be able to unleash those strengths within PwC. This also allows them to realise their full potential and how to get the most fulfillment out of the job.” The firm also looks beyond the sometimes dry technical qualifications on someone’s resume to personalise the work experience and tailor development and career choices around the individual. “We try to understand what is motivating and inspiring them and how they would work in a team of diverse strengths so that the team is much stronger as a consequence,” Crawford-Jones adds.

Building careers at PwC

The ‘big four’ accounting firms are notoriously competitive (and generous) with their offerings to fresh graduates, and PwC is no exception

This approach is particularly apparent in the firm’s overall employee professional development program and its graduate program. “Our development structure at PwC follows a 70:20:10 approach,” says Crawford-Jones. “70:20:10 describes a path towards accelerated mastery for the learner and a distinctive development culture for the firm. Expressed from a learner’s perspective, it says: “70% of what I know, I learned from the experience of challenging work; 20% of what I know, I learned from exchange with and exposure to experts and coaches; and 10% of what I know, I learned from formal classes, education and study.” The ‘big four’ accounting firms are notoriously competitive (and generous) with their offerings to fresh graduates, and PwC is no exception. The PwC Graduate Development Program is treated as a development experience for graduates approximately nine months into their tenure with the firm. The program is designed to build critical business skills early on in a graduate’s career, with particular focus on awareness of self and others, working effectively

In her own words… What are your thoughts on the future of HR as a profession? From a PwC perspective, it is how we can help people build, be motivated and really embrace the kind of change that is happening in a dynamic way in the marketplace. So how do we become more adaptive, how do we get people to become accustomed to the fact that things are changing at a fast

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pace and enable them to move and grow with that change? Certainly at PwC, we have people working side-by-side in markets and in human capital: working with the same strategy, helping our people adapt to and understand our clients’ needs. It’s helping them to have a great experience in the way that they develop those relationships and networks in the marketplace. Overall, I don’t think HR is going to have the same demarcation

in teams, self management, communication and networking. The graduate program also harnesses the 70:20:10 approach. The ‘10%’ is a two-day conference where graduates come together in XLOS groups to learn and share together in an open, safe learning environment. The 20% of the program involves coaching conversations and feedback both before and after the conference. The 70% involves self-directed, team-based and individual activities prior to the conference. Following the conference, participants are provided with guidance and support to enable them to effectively implement their learnings back into the workplace.

HR challenges The most pressing HR challenges at PwC come in two forms: balancing the expectations of multiple generations in the workplace; and keeping track of employees who want fast-paced and agile careers. The key, Crawford-Jones notes, is to offer broad service offerings and experiences to keep people engaged. “We can also mobilise our people, ensure that we encourage an agile mindset and enable people to move from one capability set to another so they are able to try a variety of different careers all within a PwC context,” she says. In terms of the generational gap and the kind of leadership and meaning that people are looking for in the workplace today, Crawford-Jones notes the firm has a leadership development program that commences with the firm’s partners. “This program helps them to really understand the kind of lateral mindsets that younger generations of people coming into the workplace are expecting to see in their leaders.

around it and I think it needs to become much more changeoriented. What has been your greatest career challenge and how did you overcome that? That would be going to Japan for the first time and trying to do two things. Firstly, connecting with clients from a totally different cultural background and understanding their needs and what we might

be able to work with them on. And secondly, it was the assignments themselves. It was understanding the cultural nuances, the way that people share information, so that when you go to deliver on a project, you are being sensitive to the way that you need to run forums, the way that you glean information, the way that you ask permission to get your hands on the data that you need to complete an assignment.

PROFILE Sophie Crawford-Jones

“We enable people to move from one capability set to another so they are able to try a variety of different careers at PwC” – Sophie Crawford-Jones “It’s about helping our leaders to understand that the kinds of relationships that clients want to have with us are as much about understanding the client’s personal challenges as it is about understanding the objectives of the organisation,” she says. From a regional standpoint, Crawford-Jones says the key people-related challenge is how the firm integrates into the Asian marketplace. “Cultural background is a significant area of focus in our strategy,” she says. “We’ve got everything from cultural integration, on boarding programs, to language skilling, and confidence-building development programs to help us better understand the kind of unconscious bias that we each carry. Our goal is to be much more understanding as leaders and to create a culture of inclusiveness.”

Full circle Reflecting on what aspect of her current work provides her with the most satisfaction, CrawfordJones harks back to the same elements that provided satisfaction in her early career. “It’s about building a team of change agents who are embedded in the business, really thinking about clients’ needs and staying true to an agenda that’s taking the business to its next natural place. “And to have a team of directors that is aligned and collaborative and love working together in what can be a tough and challenging environment at times,” she concludes. HC www.hcamag.com

FEATURE best employers

Popularity blues There is no downside to being popular – or is there? Clare Costigan investigates the hidden implications of ‘best employer’ status 42

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eing branded as an ‘employer of choice’ is no easy feat, but for those that achieve this recognition the spoils of the title can be immense. Undoubtedly, they become more attractive to job seekers and instead of knocking on the doors of recruitment agencies to find staff, suddenly it’s their doors receiving all the attention.And with the GFC no longer striking fear into the hearts of employees, unsatisfied workers are searching for greener pastures once more. Where will they head to? Countless candidates will see a company with attractive workplace branding as a lifeguard in rough surf and flock to the fun, rewarding and exciting culture, and therein lays the problem; they see the company and not the job role itself.

Popularity, as it turns out, is not as perfect as it seems and for some best employers the spoils of recognition can be overshadowed by unforeseen HR challenges. This was exactly the case for Sydneybased financial services firm, Ezypay. In 2010 they ranked 23rd on BRW’s ‘Best Places To Work’ list, which was based on a comprehensive survey of employees by The Great Places to Work Institute.

Reality bites For Ezypay’s CEO, Trent Brown, there was a moment when he realised that with positively-charged employer branding comes some unexpected negatives. “You don’t entirely understand when you go for these things [employer branding] that

FEATURE best employers

there is actually going to be a downside.” For Brown, challenges came when he noticed a pattern emerging within the recruitment process. A large number of candidates that were applying for roles at Ezypay were doing so based on the company’s fun, youthful and rewarding culture and not because they were attracted to the job role. Having studied both accounting and HR at university, Brown quickly identified that if Ezypay did not change its hiring strategy then the company would end up with a heavy string of bad hires and the escalating costs associated with them. Brown was able to implement a 4-step recruitment process, one that ultimately saw Ezypay capitalise on their Best Employer status and serves as ‘best practice’ for other employers to follow.

Step 1: Let them do all the talking Instead of asking more questions, HR is better off listening to what the candidate is talking about; is the interview time consumed with talk about the company and its fun culture or is the candidate more focused on talking about the job role itself? This was exactly the approach Brown used with potential candidates vying for a job at Ezypay. Brown says that hiring a person based on their cultural fit alone is a bad strategy. Instead, HR managers should choose a candidate who is a good fit for the job role. Brown believes that if an employee loves what they do then they will feel internally satisfied and more likely to enjoy their external environment. “We don’t want people to come in and say ‘I don’t really mind what I do just as long as it is fun’, as they don’t recognise that their happiness is determined by what they do.”

Step 2: Trials not tribulations How do HR managers differentiate the thrill seekers from those genuinely seeking the specific role? Brown implemented another strategy: trial periods. Because of the nature of career roles at Ezypay (eg, customer service roles require empathy as Ezypay deals with people’s personal financial details), trial periods are undertaken by all new candidates before management makes the decision as to whether to offer the candidate a job or not. Brown says these mini trial periods, which are usually 2–4 hours long, help the candidate experience the role without rose-coloured glasses. “We needed these trial periods because people are attracted to the exciting parts [of the company] and not necessarily the role. People sometimes come in with this illusion in their mind and it does not always fit the reality,” says Brown.

Step 3: Ezy does it

“We don’t want people to come in and say ‘I don’t really mind what I do just as long as it is fun’, as they don’t recognise that their happiness is determined by what they do” – Trent Brown

Ezypay never rushes the hiring process. Brown accepts that some roles – such as those in customer service – have high turnover rates and highly skilled IT and senior level managerial roles can take 3–6 months or longer to fill. Because Brown does not rush the recruitment process, he has protected the company from bad hire costs. These costs can quickly escalate, with advertising and sourcing costs turning into ruthless figures. According to 2010 results published by recruitment firm Futurestep, a manager with an annual salary of $100,000 will cost the company $60,000 if the hire goes bad within three months.

Step 4: Staff referrals It is no secret that the most successful hires in a company are sourced from staff referrals. Brown recognised this strategy and went one step further at Ezypay by offering generous financial incentives to those who referred a successful candidate. Brown says that employees are often the best judges of character as to who would suit the workplace well. “It gives them a sense of responsibility towards that person, so you know they’re going to refer someone of quality.”

Is it really worth the effort? According to Kevin W Grossman, a principal at The Glowan Consulting Group, the time employers put into making their organisations a great place to work is definitely worth the effort. Research findings by the Glowan Institute state that money invested in companies making up Fortune’s annual ‘100 Best Companies to Work For’ list would have returned nearly three times more than the same amount invested in S&P companies over a six-year period. Apart from the financial benefits, best employers enjoy a range of positive side effects that include: »» economic resilience »» high profitability and productivity »» loyalty »» greater creativity »» less voluntary turnover »» stress reduction »» positive public perception »» greater financial performance Brown agrees with this and when asked if he would participate in another branding survey he replies, “absolutely. In our last survey we scored 92%; our staff said they related directly to our company values. It shows what we’re capable of doing. Because we do them regularly, [staff and organisation surveys] we get to see regular improvement.” HC www.hcamag.com

FEATURE office relocation

The two biggest company expenses are typically facilities and staff. Whilst a relocation project initially appears to be about the space itself, Gab Aghion warns companies on the perils of ignoring change management

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FEATURE office relocation

elocation projects are demanding and stressful. They are a black hole for company time and money. Companies are expected to navigate the minefield of site selection and negotiation, oversee the design, meet budget and timeline requirements, deliver the fitout, manage the move including IT systems and deal with the existing premises… all whilst those charged with the task hold down full-time positions. So where does change management fit into the process? How important are staff considerations, compared with the risks of relocation downtime, missed deadlines and budget blowouts? The answer is crystal clear. A project that flawlessly executes the logistics but fails to consider the human element is destined for disaster. The repercussions are far reaching yet sometimes delayed – like an earthquake, the shockwaves spread out from the epicentre and through the organisation with catastrophic effects. Companies often create work environments that drain productivity, demotivate staff and increase turnover. And on the flip-side there is a further complication – running a project with excessive staff involvement risks delays from indecision, information overload, choice fatigue, exposing the decision process to personal agendas, departmental squabbling and your project being held hostage to minority opinions. The key to a successful project lies in finding the right balance between project demands and good

change management practice. There are six crucial stages of a relocation project.

Stage one: project setup The project setup stage is arguably the most crucial, with the direction and key goals of the project established, which will guide the decision process. »» Establish the level of staff involvement, and engagement upfront – change management and information flow should be included in the project deliverables. »» Consult and engage staff appropriately throughout the project, and communicate clearly that management holds the final decision on all matters. Access to senior management for input and project endorsement is also essential. »» Consider environmental initiatives – environmental impact is consistently listed as a top five priority for staff. Incorporate green initiatives through the entire project. »» Gather internal information as well as external – most project leaders seek external information (estate agents, designers, project managers) but overlook the internal information gathering. Survey the staff at the outset of the project to better understand their needs and preferences. Ensure information and suggestions are responded to and if needed explain why some feedback was not incorporated. »» Provide information and project updates – set up a resource centre in the lunch area, on the intranet or www.hcamag.com

FEATURE office relocation

»»

circulate a regular newsletter update. Ensure staff have the opportunity to contribute their thoughts. Anticipate the hot topics and areas of debate – staff regularly list the following in their top 10 priorities: acoustics and open plan, internal temperature, building location and access (public transport, road and bikes), parking, quality workspace, interesting work environment, local facilities such as coffee shops, quiet zones and breakout areas, environmental initiatives, natural light and local storage requirements. Keep a positive attitude and lead from the front but also understand many people are anxious about change and relocating. Don’t start involving staff late in the project when the major decisions are already finalised – token gestures in the final stages leave staff feeling patronised and under-appreciated. If setting up a steering committee, ensure even representation across all company departments. Smaller teams can also be set up for secondary tasks such as selecting furniture. Start the project early; allow enough time to search and secure the premises, design and construct, relocate and hand over the existing office.

Stage two: selecting the premises

Gab Aghion is the founder of Business Relocation Management. BRM provides companies with high quality project management advice spanning the search, fitout and relocation stages. Companies relocating premises should visit www. businessrelocation.com.au for free project checklists, further top 10 hints and to download the project pack

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Many organisations fail to include staff early enough in the process, so ensure staff needs are considered in the search phase. »» How far can a company relocate? Consider pinpointing where staff live on a map – we often find a concentration of employees close to the office and an even spread across the remainder of the city. Moving the company large distances away from the current premises often carries staff retention issues. »» Public transport, access and parking are all front-of-mind requirements for staff, together with shower facilities and secure storage for bike riders. »» Consider the environment during the search – the majority of resource consumption is caused by base building operations (indoor air environment, lighting, water usage, etc). »» Visit the new premises after it is confirmed – use senior management to inspect prospective offices during the sensitive negotiation stage, and know in advance what staff preferences are. Once premises are confirmed, a staff visit can be arranged.

A project that flawlessly executes the logistics but fails to consider the human element is destined for disaster Stage three: designing the space With some balanced staff input, the following tips will help you tread the tightrope between design needs and change management processes. »» Consider open plan density, workstation screen heights, desk orientation and level of noise. First and foremost, match the layout, design and furniture to the job requirements. »» Form a thorough fitout brief which incorporates all the company needs. »» Create a top level guiding requirement in the fitout brief and let the designers handle the detail. »» Present the layout and designs to the whole organisation – some companies run formal presentations in the new office.

Stage four: fitting out the space While the fitout builder and designer will steer the construction, keep up momentum and excitement at your existing offices. »» Information flow – show fitout progress including photos and count down the weeks. »» Tour the construction site if safe and convenient. »» Set up a trial area in your current office of the workstations, chairs and storage furniture. »» This is a good opportunity to re-group and prepare for the physical relocation.

Stage five: physical relocation Moving can carry high stress loads for many staff. These practices will help staff through the process. »» Clear out excess material well before the move to alleviate the pressure and workload on the day of packing. A clean-out day can be made more entertaining with incentives (eg, prizes for the oldest item; most unusual item) and a bbq. »» View the newly fitted premises – visiting just prior to the relocation helps staff acclimatise, visualise the goal and alleviate the anxiety of the move. »» Present relocation instructions – keep it simple and

clear, and have printed copies on the day of the move. Provide strong leadership on the day. »» Communal storage areas and packing – allocate all the communal areas (eg, filing, fridges, utilities areas) to teams to spread the workload fairly across the company. Allow plenty of time to pack. »» Once the workplace is packed up, keep staff away from the office for safety and to allow the removalists to start the relocation.

Stage six: post-relocation Use the list below to ensure change management is included through to the project’s completion. »» Unpack and settle in as soon as possible – boxes and office chaos can be demoralising. »» Create a welcome pack – preparing welcome packs for staff on arrival to their new offices can help with first impressions, and is a great task for a committee to work on during the project. »» Celebrate the new premises – most companies relocate for positive reasons. Arrange an event to toast the success of the company and the project. »» Schedule debrief and training sessions – organise presentations on the new facilities and training on any new equipment. »» Deal with the issues – there are often issues in the new premises such as indoor air quality or workstation seating positions. Genuinely listen to staff and ensure issues are addressed. »» Ongoing environmental practices – keep the environment front of mind throughout your occupation of the premises. Three change management styles could be likened to the ostrich, the bull and the eagle. The ostrich approach relies on a head-in-the-sand philosophy – ‘If I ignore it, it will go away’. The bull approach is favoured by project owners who charge into the project, powering through the demands of timelines, budgets, designs, construction and the move – ‘Get out of the way and let me get the job done’. These approaches carry the potential for relocation nightmares, often not realised until the move is over and the negatives start to surface. In contrast, eagles soar high to take the top level view together with their keen eye for detail, balance majestically on the prevailing winds, track towards targets making constant adjustments and swoop into action with precision timing. Will you run your next relocation project as an ostrich, a bull or an eagle? HC

Short on time? 10 SURE-FIRE WAYS TO… Demotivate your staff 1. Treat employees like mushrooms – kept in the dark with no information provided 2. Crowbar workers into cramped, noisy, uninspiring open plan areas with minimal storage facilities 3. Ignore environmental opportunities throughout the project 4. Waste money in the formal areas, with minimal budget allocated to staff zones 5. Select an ordinary building with difficult road and public transport access and no parking 6. Seek information and feedback from staff and then ignore the issues raised 7. Move offices a large distance away without legitimate reasons 8. Select a building with poor base building air-conditioning, and ignore during the fitout 9. Provide minimal natural light to staff or the open plan area, with executive offices taking the best views and hogging the light 10. Not listening or dealing with genuine concerns raised after the relocation

Motivate your staff 1. Facilitate structured involvement, information flow and project feedback 2. Allow staff involvement without excessive demands on their time or company resources 3. Arrange staff to view the premises early (eg, before the fitout commences) 4. Provide a welcome pack to introduce employees to the new area and work environment 5. Present designs before being signed off, with the ability to incorporate feedback 6. Include break-out facilities and quiet zones to complement the open plan areas 7. Endorsement and contribution from top level management, with staff needs valued as a priority 8. Establish a steering committee with representation across the organisation and focus groups for secondary tasks 9. Provide strong guidance and information leading up to and through the physical relocation 10. Celebrate the new premises and company success www.hcamag.com

TEAMBUILDER belinda hansen

f popularity can be judged by the number of ‘hellos’ and smiles received while walking through a place of work, then Margaret Lockett, unofficially dubbed ‘the voice of Dymocks’, is one popular lady. She greets all passers-by with a smile or a nod of the head, before sitting down with Belinda Hansen, Dymocks Group of Companies general manager, HR, to chat to Human Capital about her 55 years at Dymocks. Yes, that’s 55 years. At age 75, Lockett is preparing for retirement, but still speaks passionately about Dymocks, her employer for over half a century. When she talks, she slips into talking about ‘we’ – herself and Dymocks – as an inseparable team. “It’s hard to say how I’m feeling right now; I’m kind of in limbo,” she says. “When I actually move to the country it will hit me.” Lockett came to Sydney to become a nurse but she spent only a couple of days at Royal Prince Alfred Hospital before deciding that nursing wasn’t the life for her. She had, of course, purchased books from Dymocks before, and liked the feel of the company. She met with the staff manager about the possibility of working for the bookstore. The rest, as they say, is history. She has worked across many facets of the book retailer in her time, and she recalls current chairman

John Forsyth visiting the Dymocks offices in his school shorts as a boy (his father was one of the original Dymocks family and ran the company). In recent years she has developed a strong working and personal relationship with the current CEO, Don Grover. Asked about the notoriously short tenures of younger workers in the 2000s, Lockett says it’s a new era, where new behaviours should be expected. “In the past it was quite different,” she says. “If someone moved on very quickly you wouldn’t touch them [as an employer]. Now, it’s changed. People move on and they look for more experience or other opportunities elsewhere. It’s not an issue now.” Lockett has met a number of famous authors during her time at Dymocks, including David Attenborough, Sir Joh Bjelke Peterson, Jeffrey Archer, Joan Collins and Sir Edmund Hillary. She has great memories of her time at the family-run business. “I think it’s been the Forsyth family and the company culture they created,” she responds when asked about her loyalty. “I’ve seen five generations of Forsyths, so it’s like an extended family for me.”

Another career road to Dymocks Keeping that family feeling alive is Belinda Hansen, who has worked at Dymocks for over six years. She

Only booklovers need apply 48

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TEAMBUILDER belinda hansen

HR at Dymocks

Margaret Lockett and Belinda Hansen

Taking time out from a final month of farewells, the longest serving employee of Dymocks, and their head of HR, sits down to talk to Iain Hopkins about changes in the workplace, and of course, employee retention

commenced a career in HR after spending time working for a recruitment firm. She found she liked the recruitment side of business but disliked the selling – “I’d have to be the worst salesperson in the world,” she laughs. A shift to corporate HR proved to be a better fit. She moved to Big W in the role of personnel administrator. After two years she was promoted to personnel manager for stores, which primarily involved providing IR advice to each store. The 17 different awards that Big W’s employees worked and were paid under meant she had her hands full. After a further seven years, there was another promotion – this time to manage the whole department (support office and stores), with a team of five. After 10 years she felt she needed a change from retail and moved into HR at News Ltd’s corporate company. “It was about introducing policies and procedures, and at that stage introducing major change projects. They were looking at amalgamating their call centres so I worked on the project team that took from two of their businesses and merged them into a call centre for both of those businesses. It was an exciting, brilliant business to be part of, but the call of retail was hard to shake off,” she says. She arrived at Dymocks where she has “an extensive team – it’s just me,” she laughs.

Dymocks is predominantly a franchise business. Hansen is a resource that franchise owners can use if and when they want to. Some franchise owners call her weekly, others monthly, others very rarely. “Some never call because they’ve got such small teams, so it’s really an advice and service function for when they need a hand,” she says. However, Hansen does set policies and procedures that all franchise owners should follow, which are checked for compliance by the company’s regional business managers. “For legislative issues, they have a franchise agreement that says they will follow all legislation, and usually if they don’t know what they’re doing they will actually call me. The franchise owners are genuinely really good at developing their own teams,” she notes. There are also several other businesses under Dymocks’ stewardship, including Healthy Habits, a 35-store franchise sandwich shop that Dymocks holds an 80% share in. A chocolate manufacturing business in Victoria and a macadamia nut farm on the mid-north coast of NSW (they produce the macadamia chocolates that many travellers buy duty free) is a recent addition. Again, HR operates in a support function, serving franchise owners on an ‘as needed’ basis. Hansen found her talents were heavily in demand when the new modern awards came out. “Everyone wanted advice,” she says. “It can be difficult for the franchise owners as they often don’t have the time to read up on the issues. That’s where my services are most in demand.”

HR challenges As in any franchise operation, Hansen has several unique but pressing HR issues. Teambuilding is critically important, yet Hansen says this can be troublesome at store level where teams are small – sometimes only six people. “It’s difficult when you’re a franchise owner and you’re actually working with these people day in, day out. Franchise owners tend to get quite close to their employees. That can be a bit dangerous when you have to develop staff members or you have to coach them on something. Sometimes when you have that close personal relationship it’s in one ear and out the other.” Hansen aims to limit these problems by having all franchise owners go through intensive two-week induction training, where time is spent on revealing how to build a high performance team. Hansen has www.hcamag.com

TEAMBUILDER belinda hansen also found that if regular coaching and appraisals are carried out it keeps the relationship on the professional side rather than personal. “Clearly there will be that personal bond, but if there are some procedures in there that are quite professional it makes a difference. For a six-person store it sounds a bit odd to be doing appraisals, but it does bring that professionalism into the relationship. I also draft offer letters for them, so it’s not just ‘come and work with Deb and Richard’; you’re coming to work for a business that has policies and procedures to follow.” Dymocks’ 71 franchise owners attend a twoand-a-half-day annual conference every year to mix networking with business strategy. As Hansen says, bookselling is a hugely competitive market, especially with online buying and newer international competitors like Borders on the local scene. “We try to make it fun so it’s a bit of a break for the franchise owners but still very comprehensive throughout the day to get through our main messages. We talk about what our differentiators are and what we should concentrate on. It’s our [book] range, our customer service and the fact we’re the only bookseller that takes special orders – we’ll get a book in if it’s not in stock – where other retailers don’t do that anymore,” Hansen explains. Although staff turnover in the 55-strong corporate office is clearly not a problem (as Lockett proves), Hansen admits that career development and talent management can be tough at store level and corporate level. “Being able to provide people with opportunities can be hard. When you’re in an expanding business like Big W, there are always opportunities available. News Ltd was the same – always an opportunity to move someone around to give them exposure to different areas of the business or different jobs. Because we’re a relatively small head office it’s difficult to do that.” Hence the corporate team aims to work on projects so people can move around and have exposure to other parts of the business. For example, finance understands what operations do, etc. “Because we’re a small team we can do that, and we all do understand what each other is doing the majority of the time,” she says. The store equation is a different matter. Hansen says Dymocks has lost good people from the company because someone stays with a franchise owner for a period of time and then asks ‘where now?’. A newly launched program called ‘Breed Your Own’ aims to address this. Under this program, if there is someone in a store who is interested in taking on a franchise themselves, but perhaps does not have the funds to pursue that, they can commit to a training program with Dymocks for a period of time. At the end of that program, and

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if the participant is assessed as competent to be a franchise owner, Dymocks will work with them to open a store. “It would be a partnership store where Dymocks would have a stake, but it would give someone an opportunity that they otherwise wouldn’t have had. Buying a bookstore is quite expensive – imagine how many books you need to put into the store! This is a way for us to say, ‘there is a career path with us’.” While some franchise owners are thrilled about the initiative, others have been more cautious, wary that they will train someone up and then 12 months later they leave and set up their own franchise. “I say they wouldn’t have been able to keep that person for 12 months anyway, they would have moved before that was up. This is a good way for them to retain that talent for 12 months at least,” Hansen says. Another new initiative is an online learning centre. Although still in “embryonic stage”, this will see induction programs, customer service programs and OHS programs offered online, so that each store can access it 24/7. “Whenever I get additional funds I will add to those programs,” Hansen says. “I think giving the franchise owners tools like this makes me the most proud – things they would never be able to do by themselves, but with the skills we’ve got in our office we can offer this.”

Money can’t buy it The real ace up Hansen’s sleeve is something no amount of learning opportunities or employee benefits can buy: passion. She notes that everyone who works for Dymocks has a passion not just for the products on offer (books) but also for the brand. It’s something that goes hand-in-hand with being one of Australia’s most respected retailers for over 130 years. “All franchise owners love the product; they just love books. With that, they know they’re working with a respected brand, and they have a passion for upholding that brand as well,” Hansen says. Asked about Lockett’s amazing run and what it means for the company, Hansen admits she gets quite emotional discussing it. “I haven’t worked at Dymocks without Margaret being there,” she says. “I think all of us are exceptionally proud that the brand could keep someone of Margaret’s professionalism for so long. Margaret has been so passionate about who we were and what we are, and she has passed that onto us. I think the professionalism that Margaret carried out her duties with set a standard for all of us. It makes you so proud to be part of a team like that.” The final word, as it should, goes to Lockett. “I think it’s all in your mind. Some people at 50 can be older than someone at 70. As for retirement I don’t like the word at all. I’m taking a break – that’s a better way of looking at it.” HC

“As for retirement I don’t like the word at all. I’m taking a break – that’s a better way of looking at it” – Margaret Lockett

TEAMBUILDER belinda hansen

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IN BRIEF australian news

Staff blame employers for bad work-life balance

Almost half of all Australians believe flexible employers hold the golden key to a quality work-life balance. In a survey from Hays of over 1,400 people, a further 36.6% said work-life balance is attainable, but that it is up to them to make it work. Just under 18% felt work-life balance is not attainable. “As this survey shows, most Australians now believe work-life balance is achievable, provided they either find the right employer or they take matters into their own hands,” said Susan Drew, regional director of Hays Human Resources. “This is great for job seekers because the recent conversations we’ve had with them shows that work-life balance has shot up their priority list. It has replaced job security now that we’re seeing such strong jobs numbers.” Drew added that the most common work-life balance approaches she has seen are compressed working weeks and part-time work. Job sharing and working from home are also becoming more common.

Inappropriate workplace behaviour an OHS risk

In the wake of several high-profile cases, law firm Minter Ellison has highlighted the importance of properly managing allegations of inappropriate workplace behaviour. Human resources and industrial relations partner, Samantha Betzien, pointed out that the cost to a company can be substantial, and not just in terms of the amount of damages awarded. “The public attention that claims can receive can have a significant impact on a company’s reputation and can even adversely affect a company’s share price. “A company’s liability is not limited to incidents at the workplace. If there is a connection between the inappropriate behaviour and the workplace, companies can be held accountable for harassment or discrimination that occurs outside the workplace. This could include activities using social media sites, such as Facebook.” Effective training on harassment and discrimination, including dealing with grievances, is essential for all staff.

China pinches talent from Aussie multinationals

Australian multinationals working in China need to develop holistic talent management systems if they are to win a ‘war for talent’ in the country, according to a university researcher. International business expert Dr Jane Menzies, from the Deakin Business School, said her investigation into 20 multinational corporations’ talent management problems had supported concerns about a so-called war for talent in China. “In China the supply of talent is lacking in all facets of business – for every 10 management positions advertised, there is only one qualified Chinese applicant; and for every 88 blue collar jobs advertised there is only one skilled and qualified applicant.” Menzies said her investigation had shown Australian-based multinationals had difficulty finding employees with the right skills at both managerial and non-managerial levels. “Australian multinationals prefer to use western managers, but they need to have 5–10 years’ China experience,” she said.

Dream on: seven out of 10 employees dream of working somewhere else

The inaugural RedBalloon-Insync Surveys report has revealed that the top 10 Dream Employers as voted by the public are Google, Virgin Group/Richard Branson, Self, Apple, Qantas, The Walt Disney Company, OMD, Sydney Water, Channel 9’s Getaway and Coca-Cola. “Around 10% of Australians and New Zealanders dream of working for Google. At the current job vacancy rate, it is going to take about 11,000 years for them all to get a job at Google. But the bigger question is, how did Google achieve its desirability when it doesn’t advertise, doesn’t offer glamorous holidays like Qantas, Virgin or Getaway, and doesn’t have sexy products like Apple,” said James Garriock, CEO, Insync Surveys. According to the survey, the top drivers that make a Dream Employer are: brand reputation (41%) and culture (39%), followed by work-life balance (28%). Generous pay or kitsch products and services are not enough to lure employees today, with reward and recognition (27%) considered equally as important to workers.

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Fast fact: It’s not only job applicants fudging their credentials; employers are also guilty of misdirection in the recruitment process. A whopping 80% of applicants experience difficulty once they start a new job, according to research from psychometric consulting firm, SHL – and ‘misdirection’ by prospective employers is largely to blame

IN BRIEF australian news

Australian employers in talent sweet spot – for now

Fast fact:

AAP has reported that up to 50 MI6 spies have responded to a recruitment drive by the Australian Secret Intelligence Service (ASIS). The British MI6 agents are reportedly keen to flock to Australian shores, following a pay freeze in Whitehall in line with the savage budget cuts set to be handed down by David Cameron’s government.

New index to rate gay-friendly workplaces

A new service has been set up to help Australian employers measure how supportive their workplaces are of lesbian, gay, bisexual and transgender (LGBT) people. The Australian Workplace Equality Index is the latest initiative from Pride In Diversity, Australia’s first and only employer support program for the inclusion of LGBT people in the workplace. Launched in November, the Australian Workplace Equality Index is a new, free service that evaluates and benchmarks LGBT inclusiveness in Australian workplaces. Drawing on similar initiatives operating in the UK, US and Canada, participating organisations are required to complete a simple survey and supply evidence of relevant workplace policies. High-profile members of the program include the Australian Federal Police, KPMG, ING, IBM, PwC, Lend Lease, Goldman Sachs, and Telstra.

‘Golden handshakes’ lose their shine

With the first anniversary of the Corporations Amendment Act (2009) just around the corner, employers are being encouraged to review their executive employment contracts to ascertain if potential termination payments may be over the legal threshold and where shareholder approval is required, according to Harmers Workplace Lawyers. The legislation, which was introduced on 24 November 2009 and served as an amendment to the Corporations Act 2001, sought to address the quantum of termination benefits that can be provided to certain executives without shareholder approval. Under the so-called ‘golden handshake’ legislation, termination payments and benefits for key managerial personnel for both publicly-listed companies and office holders of

Australian employers are sitting pretty, with 87% reporting they have the talent they need to execute their business strategy, according to figures released in the latest Manpower survey. The survey of over 2,200 Australian employers found that Australia is ahead of the Asia-Pacific region (76%), but Lincoln Crawley, managing director of Manpower Australia & New Zealand, has raised questions over the sustainability of these positive figures. “Australian employers are still thinking in the short term. Yes, they have the talent they need now, but we’re coming off the back of a downturn and there are still displaced candidates looking for work, so it’s not a stretch to say that hiring in the present environment is relatively easy. “However, employers are mistaken if they think this ‘sweet spot’ is going to last. The booming resources sector, tightening immigration policies and rapidly returning skills shortages are all going to take their toll on the employment market, and employers can’t afford to be complacent with their talent management strategy,” said Crawley.

private companies require shareholder approval, should the value of the total benefit exceed one year’s base salary, with very limited exceptions. Harmers said it was up to employers to ensure their individual contracts have been updated to reflect the changes for large payouts to employees, and said that despite what many think, this legislation does not just affect highprofile CEOs, but also managerial and senior executive employees.

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IN BRIEF international news

Global: workers more mobile now

International mobility remains resilient as companies predict increases in the number of international assignments. According to the latest Managing Mobility Survey conducted by ECA International, international assignee numbers are to increase, despite the recent global economic slowdown and concerns about the sustainability of the recovery in key economies. 54% predict increases in their assignee workforce over the next few years, and only 9% expect a reduction in their international assignee workforce. The survey shows that companies headquartered in Asia most commonly send their assignees into China, followed by Hong Kong and India. For companies headquartered outside Asia, China also comes up in the top three, along with the US and UK. Short-term assignments make up one-third of all international assignments, reflecting the need to manage shorter term project-based work, to use assignments for training and to overcome barriers to international mobility, namely family issues.

SINGAPORE has the largest proportion of expatriate high earners compared to 24 countries around the world. According to the Expat Explorer study by HSBC, 45% of the expats in Singapore earn an annual income of US$200,000 or more. The worldwide average is 21%.

FRANCE: Pay gap penalties

INDIA: A nation of job hoppers?

CHINA: Government sued

TAIWAN: Aiming for 5% unemployment rate

French companies that pay female employees lower salaries than their male peers may be penalised, if a planned pension reform becomes law. Labour Minister Eric Woerth, who is orchestrating the reform, says companies that differentiate between the salaries of men and women could be fined up to 1% of their total payroll. The gender equality move is just one of a number of reform plans currently being promoted by Prime Minister Nicholas Sarkozy’s government. The overall package – which includes raising the minimum retirement age from 60 to 62, and increasing the age at which workers can retire with a full pension – has come under fire from workers, with millions taking to the streets to protest. The French government says it would lose €45bn (US$57.1bn) a year by 2020 if it does not increase the retirement age.

The job hopping rate is the highest in India, according to the Ma Foi Randstad Workmonitor survey. India continues to have the highest Global Mobility Index score of 141 – which means there is maximum employee churn in India, followed by China and then Mexico. The Ma Foi Randstad Workmonitor is a quarterly review of the ‘mental mobility status’ of employees – ie, their readiness to change jobs. Eight out of 10 Indian employees surveyed said that they would move to another organisation that promises faster and better development, with the majority being in the 25–34 age group. Hence, sustained and increased developmental initiatives will directly help in staff retention. The findings of the survey are corroborated by the findings of factual job change in the past six months, where again, Indian scores are the highest, followed by China.

In what will be a precedence-setting discrimination case, a HIV-positive Chinese man has sued the education department of Anqing city in the eastern province of Anhui for denying him a job due to his medical condition. State media said it is the country’s first such discrimination case. “I know my case may take a relatively long time, since it is believed to be the first case in China about discrimination against HIV carriers in the job market. But I will try to remain positive about my chances of winning,” the plaintiff, alias Wu Xiao, said. Wu, a recent college graduate, had already passed written tests and a series of interviews but was not offered a teaching job after medical screening revealed he had HIV, a virus that causes AIDS. The case was filed on 30 August and has to conclude by 30 November.

Taiwan’s unemployment rate stood at 5.05% in September, a decline of 0.12% from August this year. According to the Directorate General of Budget, Accounting and Statistics (DGBAS), after seasonal adjustment, Taiwan’s jobless rate has declined for 13 consecutive months. However, a decline of 39,000 employed people was recorded last month from a total of 10.531 million, due to the withdrawal of summer interns from the jobs market and a reduction of temporary jobs for summer. From January to September, the average unemployment rate was 5.36%, a decline of 0.49% from the same period last year. Premier Wu Den-yih has vowed to quit if unemployment does not fall below 5% by the end of the year.

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THE LAST WORD compiled by James Adonis

5 minutes with... Lesley Adams – Woodside Energy

Acting VP, Human Resources What’s the greatest HR lesson you’ve learned so far? I was told very early on in my career to always be fair and consistent and to treat everyone with the same level of respect that you would expect from others. This has stayed with me throughout my career and has proven to be sound advice. What’s your favourite people-management tip? People management isn’t hard, but it takes time. Take the time to know your team members, provide them with clarity of purpose and help them to see how their individual and collective deliverables assist the business in delivering its strategic goals. What career advice do you have for ambitious HR professionals? The way to bring value as a HR professional is to understand the business you work within.

Not only your immediate employer, but the market you work within both locally and internationally, and to understand your company’s key stakeholders. This way you are well informed and can have business conversations rather than HR conversations and can work with the business in making decisions and delivering outcomes. What’s the main challenge facing the HR industry right now? There appears to be a lot of energy placed in the short term or immediate needs of industry. HR needs to ensure we are delivering business outcomes that support businesses over the long term. How should HR professionals overcome that challenge? HR professionals should work with the businesses that they support to understand their strategic business drivers. The HR team should then design their plans and activities to deliver outcomes that are sustainable and that will assist the business in delivering against its organisational goals over the mid to long term.

n 49% of Australian white-collar workers are overwhelmed with the amount of information they get at work, with less than two-and-a-half days per week spent actually doing their job Source: LexisNexis

n Job-related stress: it‘s estimated that pressure at work accounts for 17% of depression in working women Source: University of Melbourne and VicHealth

Quote of the month “Three Rules of Work: Out of clutter find simplicity; from discord find harmony; in the middle of difficulty lies opportunity” – Albert Einstein

Can you believe it? Two bus drivers in England have been suspended. The reason? They were deemed by their employer to be “too fat”. Ordered to lose three kilograms in a month or else face severe consequences, the issue has created a big debate about obese employees and the impact on their effectiveness at work.

n A survey of hay fever sufferers found more than 80% say it affects work performance Source: Amcal