Human Capital Australia by Key Media

human capital

HC issue 7.7

PROFILE:

teambuilder:

BDO Kendalls

St.George Bank

Now is the time: Flexible work More than luck of the draw: Cultural fit

Watch your Step 5 downturn mistakes you must avoid

Emotional engagement: Gender, tenure and career stage

EDITORIAL Let’s do that again… F

rank Sinatra once crooned “regrets, I’ve had a few”, and no doubt plenty of Human Capital ’s readers can relate one or two ‘errors of judgment’ from the (perhaps recent) past. I’m not talking about the tales that are amusing in hindsight: the man who threatened to sue his wife’s employer for ‘enabling’ her affair with a co-worker; or the employees at one company who had been asked on to clean up their desks because a ‘special guest’ was coming (turns out it was HR to tell them they were fired). Or perhaps this story from the US: after working at a bank for 23 years, an employee was called to a team meeting with HR in attendance. The supervisor unveiled an updated org chart — which didn’t include the employee’s name. Not surprisingly, the employee was let go shortly after. As this month’s cover story demonstrates, the mistakes that HR can make in a downturn are nothing to laugh about. They can have serious long-term repercussions – not least drops in productivity, irreparable brand damage, and reducing chances of ‘bounce back’ once the economy improves. The list becomes even more damaging if the scope is widened to include ‘missed opportunities’. Yes, there will be mitigating circumstances where HR cannot – and should not – take the blame for some of these errors. In some organisations HR remains the unfortunate meat in the sandwich, pressured from both ends to ‘make things work’ – as impossible as that might be. David Burrell, regular contributor to Human Capital and experienced HR practitioner, sums up the essential role HR should be playing in this downturn: “HR needs to be at the table when the big decisions are made in order to be able to fight for fair treatment of itself generally, fight for fair treatment of all employees, link business strategy to people consequences, ensure ethical behaviour and ensure appropriate governance is maintained. Who else will do this?” Who else indeed?

In the first person… “Finding good people is still hard – some have suggested it’s harder than ever. Haystacks are getting bigger but the number of needles is not increasing” – Mike Beeley, director, ReAgent Employer Marketing, on the mythical demise of the war for talent (page 14)

“There is generational change coming to the fore, as well as the vast amounts of information and research that points to it being a bottom line, service delivery issue” – Barbara Holmes, director, Managing Work|Life Balance International, on workplace flexibility (page 22)

“I proposed that the firm should bring in a COO and before I knew it I was doing it” – Ben Deverson, COO, BDO Kendalls, on the

editor’s letter issue 7.7

managing director chief operating officer editor journalist production editor contributors marketing manager marketing coordinator traffic manager design manager designers photographer senior web developers it/is manager sales director

Mike Shipley George Walmsley Iain Hopkins Daniela Aroche Tim Stewart MatthewsFolbigg Frontier Software Chifley Business School The Next Step Chandler Macleod Group Danielle Tan Jessica Lee Stacey Rudd Jacqui Alexander Ben Ng Lucila Lamas Thilo Pulch Kevin Kim Colin Chan Justin Kennedy

Editorial enquiries

Iain Hopkins tel: +61 2 8437 4703 iain.hopkins@keymedia.com.au

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surprise twists his career has taken (page 52)

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this issue

inside

HUMAN CAPITAL

HC ISSUE 7.7

PROFILE:

TEAMBUILDER:

BDO KENDALLS

ST.GEORGE BANK

14 Cover story:

Now is the time: Flexible work More than luck of the draw: Cultural fit

WATCH YOUR STEP 5 downturn mistakes you must avoid

Big mistakes â&#x20AC;&#x201C; HRâ&#x20AC;&#x2122;s costliest downturn mistakes

Some mistakes can be learning experiences, but when it comes to HR, the most fatal errors are often realised long after the learning opportunity has passed. We look at the five costliest mistakes HR can make in the current downturn

Emotional engagement: Gender, tenure and career stage OFC_SPINE.indd 2

23/07/2009 3:06:11 PM

22 Flexing (not breaking)

With changes to workplace legislation looming, Human Capital asks how well prepared organisations are to handle flexible work options

contents features 30 It’s learning, but not as we

know it

With the usage of e-learning increasing, the level of user satisfaction still low, and budgets more restricted then ever, where should attention be placed? Philippa Arnold explores the options

A generation of connected business people

Social media technology is not just for the young and the tech-savvy – users of all ages have adopted the internet and mobile technology to get connected. Iggy Pintado reviews his five connector profiles and outlines the challenges businesses face

Emotional engagement on a shoestring Leaders can build emotional engagement among employees depending in their career stage, gender and tenure. James Garriock explains how

regulars 4 In Step 6 Legal 8H R Insight 10 HR Technology

Letters to the editor Do you have a burning HR or people management issue you would like to share with others? Would you like to share your thoughts on the challenges you’ve faced and how you’ve overcome them? Want to kick off some debate about your industry? If so, Human Capital would like to hear from you. Send through your comments to editor@hcamag.com.

instep InStep

Page 04

HR Career Experts

Glass Floor or Glass Ceiling?

n this month’s Instep, we look at the gender balance (or imbalance) that exists in most HR teams and look at the implications for HR professionals and the profession. The HR profession is charged with the major responsibility of influencing organisations in the areas of diversity, gender and inclusion strategies. The fact is, the HR profession may benefit from a look in its own backyard. There is a long-held view, satisfactorily backed up by compelling evidence, that HR is a female-dominated profession. However, take a slightly more in-depth glance and you could draw the conclusion that the profession is both female and male dominated, albeit in very different ways. (Diagram 1 which is a sample of Australian HR roles would seem to support this premise).

Gender and levels of work 100 90 80

84.4%

72%

53%

47%

40 30

28%

20 10

32%

15.6%

0 Early / Intermediate HR Career Market

Diagram 1

Intermediate

HRM Australian HR roles, (all states) Notes: • Total sample – 1565 • 1032 female/533 male • HRD sample – 376

HRD Male

Female

So then, two questions. Firstly, where are all the men? At the top it would seem. The profession is female dominated at the entry to HRM levels. Males barely feature as being attracted to the profession as a first career option. Secondly, where have all the females disappeared to between the HRM and HRD end of the profession? As per the challenge with other professionals’ fields of endeavour, just at the point where their careers are usually the most rewarding, they are faced with balancing family responsibilities.

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The glass floor

Due to the gender imbalance in most HR teams, HR leaders often ask, (off the record of course), “have you interviewed any males who might be a good fit for this role?”. There is a healthy demand for males at the entry to intermediate levels of the HR profession to provide often needed balance to female-dominated HR teams. As the saying goes, one way of thinking equals one way of doing… Given the origin of the profession and its evolution from personnel to the more business critical and knowledge based HR function, many would say that the dominance of females is still a hangover of the profession’s grounding in the more social science based, ‘people’ and even welfare field. Others would argue that traits required in HR predispose females to the profession just as males have been predisposed to science and engineering. As the HR profession has evolved, ‘outsider’ perceptions of what HR does just hasn’t caught up. For many males at the entry level, there is a perception that the HR profession is somewhat soft and fluffy and lacking a well-defined career path. Top that off with the fact that for many HR graduates, there is a distinct lack of graduate programs. This is combined with the best point of entry being at an administrative or call centre level and you have well and truly lost the boys. Hence, HR still misses out to the more traditional, technical degrees traditionally favoured by men.

The glass ceiling

68%

Times are, of course, changing and organisations are doing their best to attract women back to, not only the HRM jobs they left but to more senior roles, based on talent and potential. Fortunately, we have some very strong female role models in HRD roles today.

According to Diagram 1, the HR profession is making some progress, having truly chipped away at the glass ceiling. For what is a largely female-dominated profession, you would hope that this would be the case. Having said that, there still needs to be a continued emphasis on developing the HRDs of the future and in ensuring that talented female HR Managers are encouraged.

Problem halved, problem solved?

Until the profession is much closer to a 50:50 split at all levels, there is definite room for improvement. Its improvement will be linked to the consistency of HR models and how the profession develops emerging professionals at earlier stages of their careers. HR’s own backyard needs some attention if equality is to be improved and it’s not your typical equality problem. Who’s up for the challenge? Melanie Barrett is an Associate Director with The Next Step, a specialist consulting practice in the human resources market. For information call (03) 9664 0900 or e-mail mbarrett@thenextstep.com.au website: www.thenextstep.com.au

Recent HR Market Moves supplied by The Next Step

Wilson HTM Investment Group have appointed Andrew Blakemore as Head of Human Resources. Andrew was previously with Macquarie Group where he held the role of Head of Regional HR (Australia/NZ) & Global Head of Remuneration.

Peter Kerr has recently been appointed Head of Learning with

Neil Cockroft has accepted the role of Head of Group Diversity

Belinda Castine recently joined AIG as Regional Manager,

and Inclusion with National Australia Bank. Neil has a wealth of experience gained within Australia and abroad. Most recently Neil was with Babcock & Brown as Global Head of Learning and Development.

Robert Blisset has been appointed Group GM Human

Resources with Staging Connections. Previously Robert was with Coates Operations as General Manager, Transformation Safety & Culture.

Annette Hang has joined Jones Lang La Salle as Compensation

ANZ Institutional Banking. Most recently Peter held the role of Senior Manager, Organisational Development & Learning with Ernst & Young.

HR Australasia. Belinda’s most recent role was with Allco Finance Group as Head of HR, previously she held senior HR roles with Qantas & BT Financial Group.

Karin Blomquist has accepted a contract role with ANZ as

a Senior HR Manager. Karin was most recently with Media Networks Europe and Media Networks, London & Studio Asia, Hong Kong as HR Director.

Anna Caple has commenced as the HR Manager for Printsoft

& Benefits Manager. Prior to this appointment Annette was with Hewitt Associates as Performance & Rewards Consultant.

(a division of Australia Post). Prior to this Anna was in the role of Vice President – Human Resources with Trident International Holdings, Dubai.

Malcolm Grant has joined United Group as Learning &

Amanda Moore has been appointed HR Manager with George

Rachel Day has accepted a new role with CBA as HR Manager –

Natasha Bakker has commenced with ANZ as HR Business

Development Manager. Prior to this appointment Malcolm was with CMC Markets Asia Pacific in a similar role. Premium Banking Services. Previously Rachel was Human Capital National Relationship Manager, PricewaterhouseCoopers Services.

Weston Foods. Amanda brings to this role experience gained within organisations such as Bluescope Steel and Safeway.

Partner. Natasha has worked within organisations such as Cadbury Schweppes, Vodafone Australia and Ansett Australia.

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

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issue 5.10

news

Page Legal Experts

Think Before You Transfer

he Fair Work Act 2009 (Cth) (FWA) commenced on 1 July 2009 and replaces the Workplace Relations Act 1996 (Cth) provisions that relate to the transferring of business. The new transfer of business laws are significant changes in the legislation with potentially far reaching implications for employers. There will be an increase in the number of circumstances which result in the transfer of industrial instruments including outsourcing and insourcing of work and an indefinite period during which the transferred instruments will apply. Further, in quite a radical reform, the coverage of the transferred industrial instruments (TIIs) may even reach to new non-transferring employees of the new employer, who is engaged to perform the transferred work in circumstances when no other industrial instrument applies to those employees. This is expected to present employers with considerable challenges.

The new test

The FWA provides an industrial instrument will transfer to a new employee in circumstances where: yy the work the transferred employee performs with the new employer is “substantially the same” as the work he or she performed with the old employer; and yy one of the following apply: (a) the transfer is between associated entities; or (b) the new employer (or associated entity) owns or has a beneficial use of assets which were owned or used by the old employer (or an associated entity of the old employer) in connection with the work; or (c) an outsourcing or insourcing of work has occurred between the old employer (or an associated entity of the old employer) to the new employer (or an associated entity of the new employer). The notion of work being “substantially the same” is one of the more unclear aspects of the new legislation. The new test appears to focus on a similarity in the work done by employees as opposed to the business activities of the employer. Specifically, the FWA stipulates that all outsourcing or insourcing of work will result in industrial instruments which applied to the old employer transferring to the new employer.

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What are Transferred Industrial Instruments (TIIs) and how long do they apply for?

TIIs include enterprise agreements, workplace determinations, named employer awards and National Agreements Preserving State Awards (NAPSAs) which continue to apply during the legislation’s transition period. TIIs do not however include Modern Awards as these will apply to employees based on the industry they work in or the work they do regardless of the identity of the employer. TIIs will apply to transferred employees indefinitely until terminated or replaced by another instrument and will prevail over any other industrial instrument which applies to the new employer in respect of work performed by the transferring employee. This is a significant departure from the pre-July 2009 position in which the “transmission period” for transitional instruments ceased after twelve months. Further, the circumstances where a TII can cease to operate are also more limited.

Can we avoid TIIs?

In order to minimise inconsistencies which may arise as a result of the new legislation, employers can apply to Fair Work Australia for orders to discontinue old agreements. Transferring employees, employers and unions will be able to apply to Fair Work Australia if it is believed the continuation of the TII places them at an economic or other disadvantage. Additionally, Fair Work Australia will have the power to make orders varying TIIs where: 1. The terms of the TII fail to allow for their genuine operation because of the nature of the transfer of the business. For example, where the employee no longer has access to product discount privileges or an old employer’s share portfolio; 2. Where an ambiguity exists about how a particular term of the TII is to operate; or 3. The TII should be modified to better suit the new working arrangements of the employee, including pay and/or working hours.

Lessons for employers

The FWA makes incoming employers bound by TIIs in a wider variety of circumstances and for longer, perhaps even indefinite, periods. It is therefore essential for employers to carefully conduct due diligence in relation to all commercial transactions or other circumstances which may trigger the application of the transfer of business provisions (including outsourcing and insourcing of work) and to systematically review and consider the TIIs they inherit.

Fay Calderone is a Senior Associate with MatthewsFolbigg Lawyers. For more information call: (02) 9806 7412 or e-mail: fayc@matthewsfolbigg.com.au

Training & Development

Page 8 Professional Development Experts

EASING INTO eLEARNING

he current state of eLearning shows the availability of an increasing range of tools, from the most basic electronic documents – now available as mobile books and accessible on mobile phones and handhelds – to fully supported virtual worlds such as Second Life, which brings social networking and living into a whole new realm. Some of the more common eLearning programs use authoring tools like Articulate, Lectora or Adobe Captivate to build a content site. Online classrooms such as Elluminate with chat forums, interactive whiteboards, slideshows, audio and video capabilities are also utilised. As social networking and the use of Web 2.0 tools such as Facebook, LinkedIn and Twitter become more commonplace, they creep into the formal side of eLearning – to our benefit.

How eLearning is being used presently

Interactive eLearning programs now deliver a wide range of vocational training, especially in the retail, hospitality and tourism fields. Many courses also offer blended learning, which is a mixture of learning delivery methods and often incorporates an eLearning element. Organisations commonly use eLearning to deliver induction and safety programs.

Integrating eLearning into your business

eLearning has its pros and cons and as a business, it is important to evaluate how relevant eLearning platforms are and how best to take advantage of them. For businesses that have integrated eLearning, it is important to bear in mind that instructional design is critical to success. The principles of instructional design should be applied in the same manner as in any traditional learning method. Instructional design considers learner characteristics. These include learning style, age and learning capability. So, before you implement eLearning initiatives for your business, keep these tips in mind: »» Which tools and resources does the learner have access to? »» Who is available to support the learner? »» Are there opportunities for the learner to practice the new skill or to apply new knowledge in their daily environment? »» Who will your instructional design team be? »» Will you outsource and use others products? »» How will you manage to refresh your materials or add new content?

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»» How will you know you are getting value for money? »» How will you host your eLearning materials? »» Do you need to have a learning management system to record who has completed courses and to manage enrolments, assessments and communications? »» When you deliver your eLearning product to your learners, who will manage their IT access issues? »» How will you know if the learning delivery is effective? »» How can you ensure that the delivery platform is stable and accessible for the end users? »» How would your organisation feel about using social networking tools to deliver eLearning? The range of eLearning tools available allow the message to be carried to an ever broadening audience. The art of the instructional designer allows the message to be carried effectively.

Ready, get set, change!

When it is time to transform your strategies into tangible results, remember to think about the process of change. As is often the case, the weakest link in this chain of change is not the technology being introduced or the process of implementing it, but the people who make it happen. Involving staff at every stage of the process – particularly before it begins – is critical to implementations like this. It is not enough to provide instruction on the technical merits of the new system. Staff need to know how the system is going to improve their work. Moreover, those who are aware of the deficiencies of an old system are much more likely to embrace the introduction of a new system – including their role in migrating data. Contributed by Catherine Stephensen Catherine is Principal, Education Management Systems for Chifley Business School.

Phone 1300 CHIFLEY | 1300 244 353 Visit www.chifley.edu.au

Corporate Culture Column Evolving your Workforce

Page 09

Tread carefully during restructuring – your employee brand reputation could be at stake

edundancies, restructuring and rebuilding are unfortunate realities continuing to be faced by businesses today. Albeit understandable that a prominent level of attention is given to employees who are leaving the organisation, due attention must also be given to the employees that remain, and their role in maintaining and building relationships with customers. Unique changes and transitions within the business landscape face us daily. These realities make finding the answers to two key questions more imperative for business success today than ever before: 1. Would you recommend our brand, product or service to a friend or colleague? 2. Would you recommend working for this company to a friend or colleague? The crux of the challenge for business leaders is establishing a tangible connection between the degree of customer loyalty on an external level, and the degree of employee engagement on an internal level. Now more than ever brand loyalty from both customers and employees is critical. In a time when a majority of businesses are reducing their workforces, maintaining deliverable value and internal standards of quality and satisfaction are instrumental in shaping and delivering on revised business strategies. There is mounting quantitative evidence that the link between employee engagement and customer loyalty is significant. For example, Fortune 100 clients report “there was a 1,000% increase in errors among disengaged versus engaged employee populations; and 75% of high-performing companies hold managers accountable for engaging their employees”. Businesses can no longer create and disseminate messages in a vacuum and expect to maintain strong reputations and relationships with their employees or clients. But what can senior managers do to regain some of this lost control to rebuild ailing relationships that will come to par following the increasing numbers of redundancies and loss of ‘loyal’ clients across the industry? The answer lies in the ability to quantify two key business drivers – customer loyalty and employee engagement; and then to shape the strategies and culture based upon this data. Talent management and leadership have taken on renewed importance as competition to

attract and retain high performing loyal employees becomes increasingly fierce. Thus, the employee experience becomes just as important as the customer’s. As the competitive playing field has levelled in that every company has access to the same technology, companies have begun to realise that differentiation is related to their ability to attract and retain quality human capital. Whilst companies are reducing, restructuring and rebuilding their workforces and organisations, it is imperative that they partner with experienced advisors who sit outside the organisation to provide a learned perspective on their sourcing, assessment and development needs. Optimisation of human capital is virtually every company’s goal with the price being a level of discretionary effort that results in loyal employees and customers. Delivering superior customer experiences boils down to making an extra effort internally, one that is consistently better than the competition. The employee experience is based on a 360-degree outlook: culture, values, beliefs, flexibility and balance are integral to the decision to become an employee. Then, desires, expectations, growth, development and participation contribute to the overall contentment in a position. However, there is more to it than just the individual employee’s perspective. The workplace, environment, leadership and brand all interact to shape the corporate culture. Finally, compensation, benefits, recognition and promotions determine the employee’s decision to stay with a particular company, or to look for a better opportunity. Research confirms that these ‘bread and butter’ issues are seldom what drive commitment or discretional effort. It is the less tangible dimensions of employee engagement that virtually all companies are after, but few recognise or understand how to achieve it. The companies with the greatest reputations have rigorous employee sourcing, assessment and development programs that set the organisation up to cope with, for example, change both internally and externally – especially in the context of economic stress or high risk situations – and ensures an overarching practice of delivering on a positive reputation in all that the company does. Reputation, from a simplistic perspective, requires a focus on the talent that remains in the organisation during a restructure, the attraction of experienced and suitably qualified talent and robust development and retention strategies to build employee loyalty, and, in the end, customer attraction and loyalty. Albeit the attention for today is on minimising costs to survive, leaders also need to look to the future and ensure their workforce is prepared for the next economic chapter.

Craig McCallum

www.chandlermacleod.com

General Manager Marketing: Specialist Recruitment & Consulting Services Tel: 02 9269 8879 Craig.McCallum@chandlermacleod.com

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issue 5.10

international part of the initial implementation of the solution in order to ensure this level of self sufficiency can be attained.

Data Migration

HR TECHNOLOGY

Page 10

Systems selection and data migration Question:

We are about to go to market for a new HR Information System. Currently, we use a variety of databases and spreadsheets, supported by hardcopy files to hold our personnel information. We want to record and manage all this data in one integrated system. What should we take into account in looking for a new system that will do this and what can we do to make data input and migration to the new system as easy as possible?

Answer: System Selection

Firstly, one of the most important aspects to take into account is the level of integration offered within the solution being reviewed. In other words, is there the ability to record the data once and for this information then be immediately available to other related modules within the solution? For example, once an applicant record is generated within the Recruitment Module, can this information be directly available for HR to conduct a skills match analysis across both applicant and existing employee data as part of a workforce profiling exercise? Secondly, the solution should have available, as a standard, user defined fields and/or the tools to allow the organisation to customise the database for the purposes of capturing specific data over and above the standard core master file data. This will allow the solution to cater for existing and future data requirements. How easy are these tools to use? Are the customisations maintained and supported following any future upgrades? Thirdly, does the solution offer built-in reporting capabilities that allow for the extraction of real time data in a variety of easily accessible formats? This is where the value of one integrated solution is realised â&#x20AC;&#x201C; the ease of analysing cross module data in a consistent and controlled manner. Finally, and most importantly, particularly if your organisation is set to expand in the future, is the solution scalable? Can the solution be easily configured to cater for additional employees, changes in organisation structure, new employment conditions (eg, awards, pay rates, allowance variances)? If so, can these changes be easily implemented without the need for extensive vendor involvement (potentially at a considerable cost)? The organisation should ensure that the vendor provides training as

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There are a number of things an organisation can do to ensure the data input and migration process to the new system is achieved as smoothly as possible. These include: yy Assigning someone the task of centrally co-ordinating the data migration process. This is to ensure a consistent approach to the data migration process, as well as acting as a conduit for the investigation and rectification of data integrity issues. yy Data cleansing exercise. Data held in existing systems may need to be audited to ensure it is complete and accurate. This may involve the organisation conducting a formal request to all of its employees to review and supply updated personal information. When it comes to data and systems, remember the saying â&#x20AC;&#x2DC;garbage in: garbage outâ&#x20AC;&#x2122;! yy Grouping similar data sets together (eg, salary, position) and migrate these data sets one at a time. This ensures errors can be rectified in isolation. By segmenting the migration in this manner this will help ensure there are no flow-on consequences as incorrect data in one module could potentially infect related data in another module. yy Careful consideration also needs to be given to the timing of the data migration. The vendor can assist the organisation in determining the appropriate time to conduct the migration. The number of migrations to occur also needs to be considered and agreed to. It is important to consider the potential risks when deciding on the timing and number of migrations to occur. The migration activity should ideally be conducted in a manner which will result in minimal impact on the implementation resources. yy The organisation may also need to ascertain whether there is a requirement to migrate historical data in addition to the current data. This decision can be determined by a number of factors: o The integrity of this data ie, accuracy, missing values etc. o The complexity of the mapping task to convert old codes to new. o The volume of data to be migrated and its impact on server performance. o Future availability of the legacy system for historical enquiry/ reporting purposes. yy Finally, all records converted into the new solution need to undergo a final audit to ensure there are no discrepancies in data between the legacy and new solutions. In addition, communication to all users of both the legacy and new systems needs to take place to ensure any future data: o is maintained in both systems during the course of any parallel testing or o is no longer maintained in the legacy system in the event the new solution is now operating in a live environment. Justin Corcoran Business Development Manager Frontier Software Pty Ltd (02) 9956 7598 www.frontiersoftware.com

news issue 7.7

NEWS ‘Upwards bullying’ on the rise O

ffice gossip, withholding information, and intentionally missing deadlines are among tactics used to bully one in four Australian bosses, according to a new study. The study into staff who target and harass their managers – a behaviour coined ‘upwards bullying’ – found other common bullying tactics included spreading

workplace rumours, skipping meetings, and ignoring the views and opinions of managers. “Upwards bullying, like other forms of workplace bullying, is often more subtle and less obvious to other staff,” said Dr Sara Branch, psychologist and study author from Griffith University. “However, it can also include more aggressive

behaviours such as yelling, verbal threats, and confrontational phone conversations.” Branch found that many managers felt uncomfortable about reporting the bullying for fear of not being taken seriously or being expected to deal with the situation on their own. “… bullying can occur at any level in an organisation. Although managers clearly have formal authority, they … need just as much support as other staff,” she said. Branch noted that one of the main triggers for upwards bullying was organisational change. “If an employee is disgruntled by change, such as new working conditions, management or processes, they may blame their manager and respond by bullying them,” she said. She recommended that workplaces adopt grievance management processes that employees can trust, and to encourage managers to report bullying and bring employees together to discuss issues openly.

Workforce diversity: A double-edged sword? Employers urged

orkforce diversity and the gap between its theory and practice is the focus of a new research project at the University of South Australia’s Centre for Human Resource Management. Centre co-director Professor Carol Kulik said while the business case for workforce diversity predicted that diversity would improve organisational performance, organisations are rarely able to leverage diversity to deliver the benefits touted. “Companies around the world have invested millions in workforce diversity in a bid to improve organisational performance – but they are rarely achieving the anticipated benefits of high morale and high productivity,” she said. “Left unmanaged, workforce diversity can actually do the opposite of what it promises, creating internal conflict and even reducing organisational performance.” Recognising the gap between theory and practice, and considering the expanding diversity of Australian workforces, Kulik has joined with Dr Isabel Metz, senior lecturer from the Melbourne Business School, to identify the most effective diversity management practices. The three-year project is funded by an Australian Research Council Linkage grant and is being supported by industry partners,

the Australian Senior Human Resources Roundtable and Diversity@Work. Kulik said the project would identify diversity management practices that maximised organisational effectiveness and created positive working environments in Australia. “We’ll use the concept of ‘diversity practice configurations’ to understand how management activities affect the organisational outcomes that result from a diverse workforce,” she said. “Diversity practice configurations are interrelated management practices that may resolve one diversity problem, such as underrepresentation of a demographic group, but simultaneously create new problems, for example, conflict between groups.” The project will involve several surveys of Australian employers and employees. The Employer Survey can be completed by a senior manager familiar with the organisation’s diversity practices. Participating organisations will receive a customised feedback report after each data collection, benchmarking their diversity practices and outcomes against the rest of the sample. Contact Professor Kulik on (08) 8302 7378 or e-mail the research team at DiversityResearch@ unisa.edu.au

to ‘tell all’ in recruitment

ccording to Harmers Workplace Lawyers, companies that withhold important information regarding the future plans and direction of the company from prospective employees, in particular any potential restructuring that may occur in the future, or the difficult financial circumstances of the company, could be leaving themselves vulnerable to legal action later on by misled employees. “For example, if a candidate is offered a role overseeing a team of 15 … yet three months into the role they discover that their team will be reduced or redeployed elsewhere … then they’ll understandably feel disappointed and angered that the role has changed so dramatically from what had been originally presented to them,” said Shana Schreier-Joffe, partner at Harmers. While employers might be reluctant to openly discuss changes that may occur in their business, or the financial position of the company, they must recognise that most candidates are giving up secure jobs on the basis of the role and workplace as described during the recruitment process. www.hcamag.com

issue 7.7

ask the experts

Need advice?

Ask the experts! We would all like to have experts on hand when we need information. This month, John Williams responds to a taxation question about expatriate employees

How much can I pay my expat staff in Living Away From Home Allowance before incurring a Fringe Benefits Tax liability?

Living away from home allowance (LAFHA) is defined as allowance that is in the nature of compensation for additional expenses incurred, or additional expenses incurred and other disadvantages suffered because an employee is required to live away from his or her usual place of residence in order to perform the duties of that employment. The LAFHA is commonly paid in two parts: the accommodation component and the food component. Fringe Benefits Tax (FBT) is payable on a LAFHA for the amount that exceeds the exempt accommodation component and the exempt food component.

Accommodation component The exempt accommodation component is as much of the allowance as it is reasonable to conclude is in the nature of compensation for additional expenses on accommodation that the employee

could reasonably be expected to incur.1 The ATO2 guide for employers states that there are no strict guidelines for this. Factors to take into account include: »» whether the employee will be accompanied by family members »» the position held by the employee in the workplace, and the location where the employee will be living »» whether or not the accommodation will be furnished »» the employee’s current living standards An allowance that is equal to the cost of accommodation that the employee incurs is generally seen as to be reasonable, as it would reflect the employee’s position, location where the employee is living, and their current living standards.

Food component

The exempt food component as so much of the allowance as is reasonable compensation for additional expenses above what the employee would normally spend on food if he or she is not living away from home. The normal home food costs is referred to as the “statutory food component”, which is currently $42 per week for each adult and

Example LAFHA calculations using rates published for the FBT year commencing 1 April 2009 LAFHA amounts Per Week Exempt accommodation component (example only, should be based on actual accommodation expenses) Reasonable food component Reduce by statutory food component to reflect only additional costs Exempt food component Annual (based on weekly calculation) Exempt accommodation component Exempt food component * (Two adults and two children)

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Single person

Couple

Family of 4*

$400

$600

$1,500

$221

$354

$397

($42)

($84)

($126)

$179

$270

$271

$20,800 $ 9,308

$31,200 $14,040

$21 per week for each child who is under 12 at the beginning of the relevant year of tax. If the food component of the allowance has been set to reflect only additional costs by reducing the allowance for home food costs, and the amount of the reduction on this account equals or exceeds the statutory food amounts, the amount of the net food component is the exempt food component. 3 The reasonable food component of a LAFHA for expatriate employees is published every year by the ATO. This is $221 per week for one adult. So the amount that can therefore be paid as an exempt food component is $179 ($221 – $42). An amount of LAFHA that could be paid before incurring an FBT liability would include an accommodation component equal to the accommodation cost that is being incurred by the employee, and a food component based on published amounts from the ATO (less an adjustment for the statutory food component). HC

Sources 1. According to Miscellaneous Tax Ruling MT 2030, issued by the ATO 2. *The ATO publication NAT 1054 Fringe benefits tax 3. Miscellaneous Tax Ruling 2030 discusses how the exempt food component can be calculated.

About the author

$78,000 $14,092

John Williams is the managing director of Lumina Accountants. Lumina provides companies with a specialist outsourced accountancy and finance department.

ask the experts

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issue 7.7

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5 14

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issue 7.7

HR Mistakes

How to avoid downturn pitfalls Some mistakes can be learning experiences. However, when it comes to HR, the most fatal errors are often realised long after the learning opportunity has passed. Those consequences can stunt an organisation’s long-term prospects forever. Human Capital looks at the five costliest mistakes HR can make in the current downturn

ith the economic downturn now in full steam, most HR departments already have their damage limitation strategies in play. These will differ according to a number of factors, particularly cash reserves, industry type and overseas directives (as in the case of multinationals). However, even organisations with rich cash reserves have been forced to rationalise – and invariably cut back on – spending. HR experts warn there are both good and bad ways to go about this. Successful implementations will see productivity and employee engagement suffer very little as a result of the cutbacks. But mistakes can prove very costly, at a time when any additional costs – whether they are measured in terms of dollars or lost opportunities – can have a much heavier impact on the overall organisation. David Burrell, director of LDKS Consulting, has held senior HR director roles in Australasia, Europe, Latin America and Asia, and has seen firsthand some of these grievous errors. “In a previous recessionary environment, I knew of an HR manager who used the economic situation as a cover to cull the

HR department of potential succession threats to their role. The company culture allowed this to happen because the CEO wanted a 10% cut in head count ASAP. No one asked ‘why?’,” he says. Burrell believes that inexperience with handling a recession, not knowing what it takes to survive one, and not seeking advice from those who have ‘been there and done that’, will be costly mistakes for some HR departments. Putting on blinkers and believing the war for talent has finished is another costly mistake. “It hasn’t finished,” warns Burrell. “It just got harder to entice talented people to your organisation because who wants to chance their career by changing jobs in a recession?” Unfortunately, the experts that Human Capital contacted believe that many organisations have already proceeded down the wrong track. Their advice? HR needs to think carefully about its current cost-saving strategies in order to survive. That is particularly important when it comes to the following five errors of judgment – they are far more common than many businesses would like to believe. www.hcamag.com

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1. Poor communication

With every downturn comes a tightening of belts – especially when it comes to human resources. Perhaps more importantly, every downturn creates the anxiety of expected staff cuts, even within financially sound organisations. If HR is not able to calm those fears, they can spill over into more tangible areas. Job insecurity often leads to reduced morale, which can be seen through reduced enthusiasm and engagement levels. And that means lower productivity, more mistakes, and more pressure in what is already a tough business environment. In a downturn, there is no such thing as too much communication – even if there is nothing new to communicate. This communication can take the form of face-to-face sharing meetings and training sessions, online forums and regular newsletters. Involving employees in open communication can also create an inclusive environment, where feedback is sought around cost-containment approaches such as salary and bonus reviews. As the employer brand has several ‘touchpoints’ within the organisation, stretching from the job interview to the onboarding process to how visitors are welcomed at reception, it also plays a crucial role in corporate communications. Mike Beeley, director, ReAgent Employer Marketing, has been disheartened but not surprised at the priority downgrade for employer brand initiatives.

“There are so many barriers at the moment, it’s not surprising we’re not seeing much activity. Firstly, local operations of large multinational organisations are often dictated by what’s happening overseas. Secondly, it’s the duality of what’s happening. In some cases, businesses are downsizing but in other areas it’s business as usual. Internally, people are saying it’s insensitive to concentrate on brands while staff are being laid off. Instead they tend to not deal with it and run blind ads or find other ways to recruit,” he says. “Then you have other companies that are doing well but don’t want to be seen to be gloating. It’s a sense of, ‘we’re not having to try too hard to get [candidate] responses’. But finding good people is still hard – some have suggested it’s harder than ever. Haystacks are getting bigger but the number of needles is not increasing. You have to shift more hay now to get to the needles. The quality and quantity isn’t being supplied at the same rate,” Beeley adds. There are other factors. Beeley cites the mining industry where a company may have paid $25,000 through a consultant for a mining manager last year. It could cost a further $25,000 to pay out that manager in the event of downsizing; and then 12 months down the track when the market bounces back, there could be a further $25,000 outlay to get that same role filled again. “That’s what’s on companies’ minds. When there are such difficult decisions to be made, an employer brand submission doesn’t get the airing that it may deserve,” he says.

Your thoughts Human Capital asked readers for their thoughts on HR’s costliest mistakes during a downturn. Not surprisingly, poor downsizing strategies were the number one issue. Here are some anonymous quotes from www.hcamag.com “Not only was it the poor execution and planning of redundancies that sent ripples of dismay and hostility through the business, but the refusal of the decision-makers to look at the analysis on what the actual dollar cost would be; instead it was just a knee-jerk reaction to bad times. Result: demoralised, distrusting and hostile remaining workforce, and a business left reeling from the cost of the redundancies which took more than 12 months’ work to recover. Even if I had fought harder than I did at the time, I could not have stopped or changed the process and would have joined the others out on the street, but it still haunts me.” “Not fighting hard enough to prevent an ill-conceived redundancy plan that was rolled out extremely quickly over all my objections. I negotiated, persuaded and ultimately fought against what I knew would be a disaster, but didn’t win.”

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“Money worries = engagement issues. Employees at all levels can be affected by financial stress or worry during a downturn. This is often brought to work and can negatively impact on employee engagement and productivity. HR can help by providing financial assistance such as through their EAP, or workplace sessions on budgeting and behaviour to money.” “It’s not really an HR mistake but often redundancies are driven by CEOs anxious to show their boards that the business is reducing costs in the name of overheads! HR is a mere puppet in this type of organisation.” “Poorly communicated and poorly planned redundancies would have to be the most costly mistake made by HR during a downturn. Poor communication damages the psychological contract and can create problems with survivor syndrome with those that are left. Poorly planned redundancies see good people leave organisations – they’re the type of people that will be sorely missed when things turn around.”

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So what’s the answer for brand communication in a downturn? Beeley believes that internally, business leaders must communicate what is happening within the business with sensitivity and discretion or else employees will make up their own minds and disappear, “or at the very least they’ll build up resentment and disengage from you,” he suggests. Beeley believes it is important to be as open and honest as possible with ‘survivors’ of redundancy because the modern era – with the internet and freely available information – means that lies are instantly seen through. “The only disarming form of communication these days is open and honest branding: give people the truth and let them make up their own mind about it. Silence doesn’t resolve people’s fears and cynicism. In fact, by remaining silent you’re being complicit with what you’re accused of,” he says. Companies doing it well are those whose market competitiveness relies on it – ie, they rely on the quality of their staff. Beeley praises Woolworths. Earlier this year, when countless companies were cutting staff, Woolworths announced the creation of 7,000 jobs. “It was a masterstroke. You must have guts to say it’s not all gloom and doom,” he says. Countering negative media coverage is also a significant challenge, and one that many companies fail to do effectively (see box for tips). “Companies often don’t have a right of reply. If you run a story from the other side saying ‘Company X had no choice but to lay off staff’, none of the media channels will run with it because it’s not newsworthy. But it’s critical to counter negative press, otherwise the media can be voracious with it. Pacific Brands was the prime example – they tried to sneak that decision in under the guise of a downturn and it backfired. Companies must realise that at times like this, with accountants running rampant through the business pulling the brakes everywhere, in weeks or months they can undo years of patient brand development and communication,” Beeley says.

2. Cutting back on L&D

There is a well-known adage that HR students are taught in their earliest semesters. Two managers are discussing the learning options for their staff when one asks – ‘what happens if I spend money on training my people and they then leave?’ The wiser leader comes back just as quickly with ‘what happens if you don’t train them – and they stay?’ Learning and development is often top of the list to be lopped off, as it can be difficult to measure the impact of it on the bottom line. “External facilitators are generally the first to go,” says Tiffany Quinlan, national HR manager, LINK Recruitment. “However, L&D programs show employees that their organisation is still willing to invest in their development and provides a sense of a future with their employer.” Peter Neilson, principal, UNSW Global Workplace Training, maintains that staff skills form a major part of competitive

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“A recession is a time when the same or more output must be achieved with fewer resources and fewer inputs. This is a time when HR ought to be leading the organisation in how this can be done, in thought and actions” – David Burrell advantage and believes that scrapping L&D completely is not an option. “L&D becomes a vital investment. All it takes is for one competitor to continue L&D and you fall behind. It’s a buyer’s market and organisations should also take advantage of government support,” he says. Neilson adds that L&D should be looked at not just from an individual perspective but also from an organisational perspective. He suggests studying client needs and how they make decisions, and then applying L&D to cover those needs. These sentiments are echoed by Tim Powell, head of talent and organisation performance at Accenture. “Most organisations are savvy enough to know the core training needed for their strategically important workforces. If they must reduce it, they will look at reducing the discretionary training or the training to the non-strategic parts of the organisation,” he says. Quinlan suggests engaging senior leadership with short, practical sessions on topics such as leading in tough times and managing difficult clients. “Use plenty of real examples and get the leaders to share experiences, which helps build rapport and opens lines of communication in an informal setting,” she says. Powell views dropping the L&D ball not so much a mistake but as a ‘missed opportunity’ for HR, and also a key component of a bigger picture: workforce planning. He notes that organisations must be asking what the future requirements are for their strategically important workforces. “What sort of workforce is required to deliver the mission and the objectives you have over the next four or five years? Without that, it becomes difficult to www.hcamag.com

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understand what competencies and skills are required to deliver it. Often these decisions are based on gut feel or other measures; it should be tied to a workforce plan that will take advantage of the upturn,” he says.

3. Not stepping up

There is a definite cost to any organisation when staff with the right ideas and knowledge are not heard or able to voice their ideas. This is often where HR can help. It provides a bridge between managers and their workers and is often the function with the most complete understanding of both sides. When times get tough and leaders look to get the most out of every asset, HR needs to be front and centre. “Whenever emotions are involved and tough decisions need to be made, HR’s role is to guide the management team through the process,” says Quinlan. “Provide strong processes, outline communication plans and most importantly, equip your leadership team with the tools required to ensure processes are conducted professionally and every possible issue is considered.” Burrell believes HR’s failure to be part of any recessionbusting strategy group in an organisation is a costly mistake. “HR needs to be at the table where the big decisions are made in order to be able to fight for fair treatment of itself generally, fight for fair treatment of all employees, link business strategy to people consequences, ensure ethical behaviour, and ensure appropriate governance is maintained. Who else will do this?” he asks. It is not just HR’s knowledge that should be driving it toward the C-Suite at this time. The function also has important skills in change management and strategic execution that organisations will need to rely on. Burrell believes that rather than shrinking from the challenge, now is the time for HR to expand its influence and impact. “A recession is a time when the same or more output must be achieved with fewer resources and fewer inputs. This is a time when HR ought to be leading the organisation in how this can be done, in thought and actions.” Burrell provides two examples of how this can be achieved. In an organisation that relies heavily on L&D via external programs, the opportunity exists for HR to transform the organisation to an on-the-job development model, where everyone is a coach of someone else. “Costly programs are replaced by more effective face-to-face learning experiences, and coaching of others is rewarded,” he suggests. Another area for HR to make an impact on is knowledge management (KM) – “plain old sharing of information,” says Burrell. “There’s so much about KM on the internet that it’s very simple to implement KM into an organisation at zero cost, and yet the gains are immediate, visible and valuable.” Powell recommends that HR builds solid relationships with other business units and line management to develop cohesive responses to the pressures of a downturn. “Talent management,

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Media fallout Countering negative media exposure from downsizing can be difficult and costly. Mike Beeley of ReAgent Employer Marketing suggests the following tips: »» Develop a small dedicated website, or microsite, with an easy-to-enter web address and a few basic pages. »» It must be easy to access by staff and the external population. »» It must include a personal address by the CEO, preferably video – this is the most impactful and persuasive form of message delivery. »» It must include accurate information on workforce reductions including outplacement activity and employee support offered. »» It must have links to other information sites which may be of assistance to dislocated employees. »» Conduct a small media campaign to direct people to this site, both within the affected company and externally to the media and other stakeholders. »» 98% of web visits start with a search engine. Sponsor search terms such as ‘Company X redundancies’ or ‘Company X lay-offs’ and then point browsers through to the microsite to get the real story.

the hot topic 18 months ago, is no longer on the agenda for many organisations. It’s like HR has missed their place in this. My observation is a lot of HR professionals have gone back into the administrative mindset: this is our policy on redundancy; this is our policy on outplacement – almost acting like policemen. What I haven’t seen is HR engaging comfortably with line management. How do we adjust our learning programs to suit those workforces? What is going to be our recruitment profile? What is our engagement profile? What’s our hook into the business that makes us relevant now?”

4. Knee-jerks

Whatever happens in the downturn, it is likely that labour costs will need to be reduced – somewhere, somehow. Even comparatively wealthy organisations will be looking to fine-tune their wage spends. In past recessions, corporate leaders have called on HR to initiate blanket workforce-wide measures. Ideas like

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automatic retrenchments, across-the-board salary cuts or rigid hiring freezes were the norm as recently as 2003. These knee-jerk reactions appeared to be the painful but necessary solutions to bad economic news. While Powell notes that many organisations have learnt from previous slumps and are thinking carefully before mandatory across-the-board staff reductions are made, it is still being done recklessly in some organisations. He also believes broad-based salary freezes are a mistake. “In a downturn, you need to rely more on high performance and you need to be further differentiating and rewarding high performers – not treating them the same as the rest of the pack. By working those salary freezes, it’s actually a disincentive to high performers. I can understand you must reduce costs, but when we’re talking to clients we try to find other measures to do so,” he says. Unless the receivers are already knocking on the door, organisations do have time to think creatively about where and how any cuts are applied. HR can save much money, productivity and heartache if it considers a strategic mix of options, then carefully implement the game plan. It needs to work with a view towards not just present-day savings, but also future productivity.

issue 7.7

“Finding good people is still hard – some have suggested it’s harder than ever. Haystacks are getting bigger but the number of needles is not increasing” – Mike Beeley

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performance management infrastructure to do that properly then that gets translated into decisions that are either incorrect, or correct but perceived as wrong.” “The point is, many organisations do not have a strong understanding of their workforce requirements moving forward,” Powell adds. As a final warning, Beeley notes it may well take a generation or more for some of these companies to rebuild their brands, and says, “Gen Y – who is very cynical and has instant access to information – has been burnt by this. These 20-year-old kids went from having two or three job offers to suddenly having no one talk to them. What’s the result of that? Resentment.”

5. Forgetting retention

Cutting salaries or introducing retrenchments are not necessarily mistakes, but experts warn they should be done on a case-by-case basis, rather than across-the-board. Good quality performance management systems are essential when it comes to making such decisions. Michael Drawhorn, managing principal – Malaysia & Singapore, at international researcher Towers Perrin, says accurate measures help to justify those unpleasant decisions. “Organisations that get [performance management] wrong at any time are going to have a problem,” he says. “But it’s worse during an economic down cycle when you’ve got to make choices about how you reward and engage people. If you don’t have the

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It is true that HR is all about the people. But sometimes those values can get set aside in the rush to complete some of the necessary transformations that are taking place in the downturn. The unemployment lines may be lengthening, but HR needs to remember that real talents are still prized. Beeley notes that HR professionals should not be fooled into thinking they have won people’s hearts just because voluntary staff turnover has dipped. He likens it to a state of paralysis: people are too afraid to move so they stick with the same company until the storm ends. “There has been a state of paralysis since Christmas. People are saying that – however long this recession will last – now is not the time to move. Companies are seeing a lot of false retention at the moment, being sucked into a position of complacency. This notion of false retention is also affecting people’s decisions: ‘if we have low vacancy rates, why do we need to invest in the employer brand’?” “I don’t believe the talent pool that apparently we’ve built up over the last 12 months is quite as deep as everyone thinks it is; it’s more like a talent puddle, a bit of standing water,” he adds. Stephen Tjoa, executive director of HR at KPMG, says any costs saved from ignoring retention will bite back over the longer term. “It is short-sighted to take one’s focus away from retention,” he tells Human Capital. “Organisations must continue to invest and develop their key talents. It is even more important to do so during such challenging times as we need our best people to help us through the turbulence.” Once that storm has ended, organisations will need staff that are ready, willing and able to take advantage of the new business opportunities. And if retention efforts have lapsed during the downturn, staff could instead be looking for the first available exit. “Our goal is to be equipped and prepared for the upturn as we believe that having the best talents is critical to effectively ride the waves during these difficult times,” Tjoa says. “More importantly, it gives us the advantage of having a committed and high performing workforce when the environment is once again positioned for aggressive growth.”

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Powell suggests the issue is not so much about retention but engagement with the current workforce, which he acknowledges is a factor in retention. “How do you engage with your workforce when you don’t have salary increases, or you’re not offering new ways of learning? What are the key elements you need to ensure the workforce remains enthusiastic and high performing?” Quinlan suggests demonstrating a commitment to each employee by ensuring key people are engaged, communicated with and reassured that they are needed moving forward. “It’s important to acknowledge that the last year has been challenging and to thank employees for their efforts. Simple thank-yous and public recognition go a long way when financial restrictions prevent bonuses and other monetary incentives being awarded to top performers,” she says. Quinlan adds that 12 months ago, money was thrown at employees to retain them, but now there has been a shift back to what people really want. “They want to be valued in the workplace and enjoy what they do. We all go to work to be empowered in some way, and good leaders and HR professionals need to have strategies to ensure their organisation manages this better than their competitors,” she concludes. HC

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“In a downturn you need to rely more on high performance and you need to be further differentiating and rewarding high performers – not treating them the same as the rest of the pack” – Tim Powell

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issue 7.7

Corporate health – work-life balance

Juggling act With changes to workplace legislation looming, Iain Hopkins asks how well prepared organisations are to handle flexible work options

t is a sad reality: we are all working longer hours. In an online web poll conducted by Robert Walters, professional candidates from 17 different countries were asked whether they were working harder as a result of the downturn. Of 2,600 respondents, more than half (55%) said they were working more hours per week. Firty-five percent of respondents said they were putting in at least three hours extra per week, and one fifth (21%) of all respondents said they were staying in the office for eight to 10 hours longer per week. It would be nice to think all organisations long ago realised the benefits of work-life initiatives to cope with work pressure, but sadly this is not the case. Barbara Holmes, director of Managing Work|Life Balance International, believes organisations fall into two camps. The first group has a well established strategy where flexibility and work-life programs have been integrated into the culture of the organisation. These companies understand and have witnessed the benefits of offering a range of work-life strategies. Far from dropping these initiatives at the first sign of economic trouble, many wish to push their strategies to the next level. The second camp consists of organisations that have dipped their toe halfway in the water but now maintain there are more important things to deal with. “They don’t recognise that if they don’t help people manage those work-life issues – particularly in a highly stressed situation where perhaps people are being asked to work longer hours with fewer people – that you will have burnout and stress. The moment the economic environment changes, those people will be writing their résumé,” says Holmes. “If it’s not entrenched, if it’s not OK to access the gym at lunchtime or change working hours, there’s going to be an element

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of fear. And if you haven’t changed the behaviour of your leaders – which is a critical component – then it’s going to be difficult for an employee to say: ‘I’d like to take that option of working fewer hours, and I can see there’s a way of contributing to the ongoing financial viability of the business’,” she adds.

Changing attitudes and behaviours

Holmes and other industry experts continue to find that unless leaders are educated and understand the business benefit of worklife initiatives, there will not be a culture within the workplace that makes it OK to ask for help with work-life issues. “The leaders will make or break your strategy,” Holmes says. Fortunately, the situation is changing. Holmes cites examples in the legal sector. Seven or eight years ago, she says, talking to a partner about flexible work arrangements would have been extremely difficult. Today, Holmes sees a younger group of partners and managers in the workplace, many of whom – particularly men – are being asked to contribute more to the family responsibilities of care for children and elders. “They get it,” says Holmes. “There is a generational change coming to the fore, as well as vast amounts of information and research that points to flexible work being a bottom line, service delivery issue.” While changing attitude is one major hurdle, the other is changing behaviour. Employees who work flexible hours may start work early and leave early to pick kids up from school, and receive snide remarks and accusing looks from co-workers. Just as damaging are situations where team meetings are held at 9am, but some employees start work at 10am so they miss out.

Corporate health â&#x20AC;&#x201C; work-life balance

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Corporate health – work-life balance

Inevitable changes

It is not just a shift in mindset and expectation. Post-GFC, there will be other ‘push’ factors driving organisations to take up flexible work arrangements. From 1 January 2010, legislative changes via the Fair Work Bill will introduce the right to request flexible work arrangements into many organisations. Many organisations are unprepared, and there is an underlying fear about how they should deal with the issue of the right to request flexible work arrangements. “There is concern about how one says ‘yes’ or ‘no’ to such a request, and there are issues with organisations simply not knowing enough about how the implementation process should be carried out. I ask clients: ‘where is your policy?’ And it’s a document, which is inadequate. Then I ask: ‘where are your decision-making criteria?’ And I get a blank look,” says Holmes. The right to request flexible work arrangements will only apply to carers of school aged and disabled children. But Holmes warns that HR professionals and direct line managers should prepare themselves for more requests from other employees who will not necessarily understand the criteria. “The whole thing has to be managed. There needs to be formal process of application and decision making. If you don’t have that in place it makes the ‘yes’ or ‘no’ responses difficult to justify. Someone who doesn’t have a child may well request flexible working hours and they may meet the criteria you set down. In that case, shouldn’t they be able to work flexibly?” says Holmes. “You must have a very clear business case if you have to say no because it can get complicated. If you say no and the person has dependent care responsibilities, it may have the potential to be regarded as an issue of discrimination,” Holmes adds. A glance at overseas practices reveals that these local legislative changes may simply be a starting point for broader changes in the future. In New Zealand, for example, a recent amendment to the Employment Relations Act allows workers who care for others to ask for flexibility in their hours, days or places of work. This could include working from home, compressed

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The right to request flexible work arrangements will only apply to carers of school aged or disabled children hours, or different start and finish times. This will surely need to be a consideration in Australia as the number of elder carers increases. In the UK, the right to request flexible work was introduced in 2003. It provides employees who have parental responsibility for children under the age of six (or 18 if the child has a disability) with a right to request a change in their hours and their place of work, and to have such a request seriously considered. In 2006, the coverage was extended to employees caring for a dependent adult. A second extension (introduced in 2009) further broadened coverage to parents of children under 16. Looking overseas for best practice tips can be helpful, but Holmes does not believe Australia should play follow the leader. “We need to be specific about what’s right for our businesses, our IR scenarios, and the culture within Australia,” she says. “The legislation may well broaden out in the future but as a starting point it’s still a massive change for employers,” says Holmes.

Benefits

For those organisations that still don’t ‘get it’, offering flexible work practices is a positive way to attract and maintain employees. It can be a strong motivator, and there are clear links between flexibility and engagement. In New Zealand, the EEO Trust produced research in 2007 that clearly demonstrated the link between work-life strategies and discretionary effort* (that is, employees going ‘above and beyond’). There can also be a significant drop in unplanned absences. “One of the benefits of providing a flexible environment for the existing workforce is engagement,” says Mark Heaysman, group CEO, Diversity@Work. “It’s tying personal priorities and needs to the business’ needs, which just means you’re extending the amount of input you’re going to get from different people.” Offering flexible work will also attract a wider talent pool to the organisation, including older workers, return-to-work parents, and people with a disability. “You will attract many more people who have commitments at home that they need to balance while working for you,” Heaysman adds. Does the 9–5 Monday to Friday job need to be relegated to the past? Holmes believes so. She has worked with clients who

Corporate health – work-life balance

have promoted flexible work options, including start/finish times outside of the norm and work from home options, as ways to reduce road traffic congestion and commute times. Flexibility may also involve the facility for employees to choose their own breaks and when they work (such as compressed weeks, term-time working and annualised hours), and the ability to buy additional leave for reduced pay. Other organisations are setting up satellite offices and hotdesking. The environmental impact of such initiatives is a welcome by-product. Heaysman takes this further: “It’s creating an inclusive environment, so however you script the job or create the job it’s open to a more diverse range of people. It’s opening it up beyond the traditional 9–5 office dwellers,” he says. As a bare minimum, Holmes recommends organisations provide a suite of options. “It’s about flexible hours, job sharing, offering less than full time, working from home or telecommuting even part of each week,” she says. “It means there needs to be a huge switch in how we assess work and value work. Primarily it’s about trust.”

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Top tips

Lack of trust is a significant hindrance to implementing worklife initiatives. Holmes warns that an ‘if I can’t see you, how do I know that you are working?’ attitude can be tough to change. “We’re promoting education programs to focus on implementing flexibility in a constructive and fair way and concentrating on the performance management component. There is a tendency for managers to confuse performance issues with flexibility. Someone may be a poor performer; that issue is not addressed, and the employee opts to work flexibly. The situation is exacerbated and the flexibility is blamed rather than the poor performance. It ultimately means we need to be more focused on managing results and deliverables.” She does not recommend people take 100% of their time out of the office. Regular appearances in the office keep the employee in the loop, and being visible ensures they are considered for interesting projects and can participate in training sessions. There is also the social aspect to consider. As a final tip, Holmes recommends leaders re-examine the way in which work is done. It is all very well asking people to work four days instead of five, but invariably something will give if work

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Corporate health – work-life balance

allocation remains the same. “Maybe you need to look at the way work is allocated. Does work redesign need to be considered? It’s actually a good time – often as part of a team – to examine what the priorities will be, especially if you cannot do everything you’ve done in the past. Certain tasks that you’ve been doing simply because they were nice to have can be dropped. It’s about working smarter,” she says. Regardless of how flexibility is achieved, Heaysman believes organisations that ignore it will be left behind once the economy picks up. “People will always be selective about where they work

and that’s not going to change. In another 12 months we’ll be back to where we were, with companies saying they can’t attract good people. You’re not talking about an outlay of money; you’re talking about a mindset change. It’s about being open to this culturally and remaining productive,” he says. HC *Work-Life Balance, Employee Engagement and Discretionary Effort: A Review of the Evidence, March 2007, Equal Employment Opportunities Trust, Auckland, New Zealand

The following pages contain further insights about flexible working.

Dos and Don’ts for workplace health during the recession While workplace flexibility is a start, organisations should be looking to a wider suite of corporate health initiatives to help employees deal with current work stresses. Gabrielle Lis of Return To Work Matters (www.rtwmatters.org) explains A short guide to surviving the recession for busy RTW and OHS professionals. Do continue to be an advocate for best practice OHS and RTW. There are proven business benefits that come from prioritising disability management in the workplace. It’s your job to keep the organisation focused! Do promote the cost savings of a healthier lifestyle. Make sure employees realise that riding or walking to work, bringing a packed lunch and cutting back on alcohol and cigarettes will save them money and give them a better quality of living. Having to tighten the ol’ metaphorical belt can be a great incentive to lose a bit of weight – literally. Do keep thinking about workplace culture, especially about how increased demands for productivity might affect relationships and morale. It’s all very well to ask employees to be more productive, but remember that such changes almost always cause tension. Unnecessary stress is the last thing the workplace needs mid-recession. Do encourage a ‘we’re in this together’ attitude, rather than an ‘it’s him or me’ approach among staff. Competition can be healthy, but history has shown that when difficult times bring communities closer together, mental health improves. Do communicate honestly and sensitively with employees about potential downsizing/cuts to hours. The news for employees won’t always be good, but being upfront and thoughtful will minimise gossip and increase employee trust and goodwill. Do be prepared for a spike in claims if mass lay-offs are planned.

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Don’t allow an ‘us versus them’ sentiment to develop between management and other staff. If recession stress, fears about job security and productivity pressures cause the workplace to fragment rather than come together, employees’ mental health will suffer, affecting their performance and long-term health outcomes. Don’t set yourself up for a post-recession claims avalanche. Claims numbers usually decrease during recessions, but this doesn’t mean that injury and illness aren’t occurring. Staff may put off claiming until job security improves. Keep your eye on the ball of disability management. Don’t underestimate the ill-health effects of fears about job security. Studies have shown that job insecurity is as bad for your health as unemployment. Retained employees in recession-exposed industries will feel the heat. Help them cope with it. Don’t forget that stress affects mental and physical health. Stress also contributes to anxiety, depression, workplace accidents and chronic physical problems like heart disease. If stress becomes a huge problem in your workplace, consider offering staff stress management training. Don’t fall for the recession health hysteria. Recessions present OHS and RTW staff with opportunities as well as challenges. Seize them!

Opinion

issue 7.7

Changing mindsets The latest research from Australia, the UK and the US indicates that women and part-time workers are the first groups to be retrenched in tough economic environments. Isabel Metz explores why

hy are women the first victims of downsizing? Women make up the vast majority – more than 85% – of part-time employees. Often, part-timers are considered ‘non-core’ employees and as organisations grow or contract, so too do the number of part-timers. In an economic downturn, noncore employees (many of whom are parttimers) are the first group to be targeted for retrenchment. As women make up the bulk of part-time workers, they bear the brunt of downsizing. Women working full-time are also more likely to lose their jobs than their white, male colleagues. This is because individuals in positions of power – who are more likely to be male than female – will

tend to ‘look after’ people who are like themselves (the in-group) in competitive environments. Tough economic conditions exacerbate competition, as workers vie for fewer work and promotion opportunities. My research also shows that good diversity practices are a third victim of tough economic conditions. With demands for improved financial outcomes and diversity practices seemingly incompatible, many organisations reduce their commitment to diversity programs in times of economic uncertainty – allowing old discriminatory practices to resurface. For example, an analysis of women’s representation in management in Australia shows that women benefit more than men when the management pool expands, but are more affected than men when the

management pool downsizes. In other words, men are not really threatened with losing their jobs to women when opportunities abound, but fewer jobs and resources tend to make men more protective of other ‘like’ men and treat women as outsiders. To be able to succeed in tough economic environments, organisations more than ever need their best and brightest employees. Therefore, organisations need to be vigilant that retrenchment decisions are not influenced by stereotypes or perceptions, but by robust assessments of the match between the individual’s capabilities and of the organisation’s needs. HC

About the author Isabel Metz is an organisational behaviour senior lecturer at Melbourne Business School. For more information phone: (03) 9349 8226

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issue 7.7

expert insight – workplace flexibility

Making flexibility

work

Human Capital talks to Fay Calderone, senior associate at MatthewsFolbigg, about how organisations should be preparing for flexible work practices 28

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Human Capital: Your survey in Human Capital earlier this year indicated there was still a lot of concern regarding flexible work arrangements and parental leave entitlements. Have things improved? Fay Calderone: Employees currently have significant protection and entitlements in relation to their family/carers’ responsibilities, safeguarded through state and federal anti-discrimination and unlawful termination laws that were also in place (albeit in a more limited framework) in the Federal Workplace Relations Act. According to our survey results published in Human Capital issue 7.2, 87% of employers already have some type of flexible work strategy in place. Employees are currently requesting and being granted carer’s leave (22%), flexible start and finish times (21%), working offsite (18%), part-time (23%) and job share arrangements (16%). The National Employment Standards (NES), to be implemented on 1 January 2010, formalises this system and will create awareness amongst employees of the workplace flexibility options available to them. In the UK, following the introduction of similar flexibility provisions, employees were found to be more aware of their right to request flexible working conditions than they were prior to the introduction of the laws. HC: What exactly do employers have to do to ensure they adhere to these legislative changes? FC: Firstly, ‘Compliance with National Employment Standards from 1 January 2010’. Section 13(4) of the Fair Work Act 2009 (Cth) (the Act) states that the employer must give an employee a written response to a request for flexible working arrangements within 21 days, stating whether the employer grants or refuses the request. There is no definition of ‘flexible working arrangements’ in the new NES and therefore the scope of arrangements reached by employers and employees to

expert insight – workplace flexibility

assist in balancing workplace and family responsibilities is broad. Under s.13(5), the employer may refuse the request only on ‘reasonable business grounds’. This term is not defined within the NES, however it is noted that relevant factors may include costs of accommodating the employee’s request, the employer’s ability to reorganise work arrangements and the business needs of the employer. Also, if the employer refuses the request, any written response must include reasons for the refusal, as stipulated in s.13(6). Secondly, ‘Protection from Adverse Action from 1 July 2009’. In addition to the procedures required by the NES, the provisions in the Act which commenced on 1 July 1009 provide: a) An employer must not dismiss, injure or alter an employer’s position or discriminate against current employees; and

the employee to care for the child (see s.13(1) of the Act). The employee is not entitled to make the request unless the employee has completed at least 12 months of continuous service with the employer immediately before making the request. For a casual employee, the employer must have been engaged by the employer on a regular basis for a sequence of periods of employment during a period of at least 12 months immediately before making the request. Additionally, they must have a reasonable expectation of continuing engagement by the employer on a regular and systematic basis (see s.13(2) of the Act). HC: Why have these legislative changes been made? FC: Advancements in technology have spurred changes in the way business is conducted. Business developments including Blackberrys, remote access to

Blackberrys, remote access to work e-mails and teleconferences allow work to be completed both outside the office and outside regular office hours b) A prospective employer must not refuse to employ a prospective employee or discriminate on the terms and conditions on which a prospective employee is offered employment, because of an employee’s carer’s responsibilities (among other discriminatory grounds). Employers/prospective employers may be subject to penalties for breaching these provisions and Court Orders may be made for reinstatement, compensation or injunctions. HC: It doesn’t impact on all employers or employees does it? FC: The NES applies to any employee who is a parent, or has a responsibility for the care of a child under school age or a disabled child under the age of 18. Such a person may submit a request to an employer for a change in working arrangements for the purpose of assisting

work e-mails and teleconferences allow work to be completed both outside the office and outside regular office hours, providing for greater variability in business practice. The changes in legislation allow Australia to be proactive rather than reactive to technological as well as ideological shifts. Additionally, in terms of international trends, countries such as Sweden which are relatively supportive of workplace mobility, have higher productivity compared to countries such as France, which are far more rigid in their approach to workplace mobility and have lower workplace productivity levels. Changes in workplace laws with regard to workplace flexibility may therefore be an opportunity to change ‘old school’ attitudes whilst increasing productivity and attracting talent through untapped labour sources.

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HC: What are the potential hurdles for companies looking to implement flexible work arrangements? FC: Potential impediments to the implementation of the flexibility provisions of the NES are both technological and cultural. Some workplaces do not have the resources to facilitate working from home. According to our survey there is resistance to workplace flexibility and fear of the consequences of the new legislation for a number of reasons. In particular, some 53% of respondents were concerned about workers’ productivity outside of the office and some smaller companies are worried about the ability to implement a system providing for greater flexibility and the diversion of resources in doing so (48%). Other companies feared (whether rightly or wrongly) a detrimental effect on workplace culture (46%) and the potential for negative impacts on the morale of employees unable to access the new flexibility provisions. HC: What should employers be doing prior to 1 January 2010? FC: We recommend employers establish procedures and management guidelines and train all levels of management to ensure a more seamless and consistent approach to compliance with the flexibility provisions. As stated, the NES does not provide a precise definition of ‘flexible working arrangements’ or ‘reasonable business grounds’ so the parameters need to be set both procedurally and conceptually for the consideration of the requests to ensure compliance with the new regime. HC

For further information Fay Calderone is a Senior Associate with MatthewsFolbigg Lawyers. For more information call: (02) 9806 7412 or e-mail: fayc@matthewsfolbigg.com.au

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issue 7.7

e-learning

Itâ&#x20AC;&#x2122;s learning, but not as we know it 30

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e-learning

issue 7.7

With the usage of e-learning increasing, the level of user satisfaction still low, and budgets more restricted then ever, where should the attention and financial resources be placed? Philippa Arnold explores the options

ver the past decade, as technology continued to integrate itself across all aspects of the workplace, e-learning has grown in leaps and bounds, moving from a disjointed uploaded PowerPoint presentation towards providing dynamic and engaging interactive online web content. At the start of the e-learning boom, companies ran to purchase the latest Learning Management System offering thousands of ready-made online courses, and sat back to watch the great return on investment that it promised. It was ‘the next big thing’, but has it worked?

e-lessons learnt

Unsurprisingly, employees were not interested in trawling through static courses libraries provided by Learning Management Systems (LMS), clicking on multiple choice questions to ‘learn’ or passively watch a pre-recorded presentation of someone talking to them about OH&S compliance. The novelty quickly wears off and it becomes, frankly, boring. More often than not, employees stop using the programs unless required, the learning content is seen as irrelevant, and the passive format on offer becomes an administrative chore. This results in the LMS sitting online, ignored, and gathering virtual dust. Now, more so than ever, organisations need to justify the cost of every cent spent and although it was easy to fall into the trap of seeing a LMS as a cheap (cost effective) option for learning, the reality is that truly successful e-learning solutions require significant investment. This does not mean throwing money into a burning fire, but investing wisely and providing the right technology and content in the right format at the right time. This is still a work in progress – for example, the 2009 UK

CIPD Annual Learning and Development Survey found that only 7% of respondents believed that e-learning is the most effective learning tool in their workplace, yet there was still an increase in usage over the last two years by 42% of respondents.

Where next?

So with the usage of e-learning increasing, the level of satisfaction still painfully low, and budgets more restricted than ever, where should attention and financial resources be placed? Over the next decade, the bottom line focus of e-learning needs to shift from solely focusing on cost effectiveness and enhancing productivity, to considering how intellectual capital within the business is managed. The way employees want to share, learn, communicate and consume knowledge and information is becoming a shorter and sharper process, resulting in a focus needed in three areas of e-learning design: personalisation, interaction and accessibility.

Let’s get personal

Key to increasing engagement and uptake of e-learning initiatives will be the successful development of personalised learning environments (PLEs) that provide employees with a wide range of holistic self management learning tools and applications. Although PLEs have been acknowledged as an important part of the e-learning evolution for some time now, it is still early days in its widespread implementation. Effective PLEs provide employees with the ability to decide on what learning content and design they see on their screens, enable them to contribute towards the material itself, and provide the employee with multiple choices of learning formats most suited to them (eg, visual, text and audio).

Implementing a PLE to an organisation’s learning and development framework does not necessarily mean discarding the LMS that was so heavily invested in 10 years ago. The key is in creating a harmonious balance between the process driven and organisation centric style of LMS alongside the more fluid and learner centric style of a PLE. There is great opportunity to incorporate both tools to provide one integrated and effective learning solution that meets the needs of all employees.

Interaction not isolation

In addition to the increased focus on personalising e-learning environments, organisations need to transcend the e-learning experience beyond isolated individual learning environments and move towards designing interactive and immersive learning content, communities and knowledge pools to encourage peer group and ‘just in time’ learning. Indicative of the trend towards interaction and e-learning is the new addition of ‘Online Communities’ to the 2009 Bain Global Management Tools and Trends Survey. The aim of the annual survey is to provide executives with global trend information on management tools that impact bottom line results, and to build an understanding of the strategic challenges and priorities of global executives. With 1,400 participants this year, the results showed that whilst the use of Online Communities is beginning to make an impact in business, only 30% of Established and 22% of Emerging Markets utilised the tool. However, by 2010, Bain predicts a 25% increase in take up in the usage of online communities as a management tool. So where do you start on this path? www.hcamag.com

issue 7.7

e-learning

The next generation entering the workplace will be the first born into and educated within a world of online collaboration and interaction A relatively cost effective and simple first step towards online interaction and collaboration would be delivering training programs via online virtual events using web conferencing and webinars. Through the provision of such applications as online Q&A, video content and communication forums for participants, employers can use this technology as a bridge from the traditional presentation style format of training towards an interactive and visually engaging learning platform. A step beyond this would be to move learning into a simulated virtual world. A recent case study by the IBM Academy of Technology discussed its decision and the benefits of holding its virtual world conference and annual meeting within the online program ‘Second Life’. With over 200 participants, IBM provided interactive environments that included virtual breakout sessions, a learning library and community gathering space. It was not only deemed by all as a great success with a high participation rate, it also provided an ROI of US$320,000.

Learning outside of the box

Finally, as the workplace becomes more flexible and fluid, the provision of e-learning needs to move beyond signing into the LMS in silence whilst sitting at an allocated office desk. Organisations need to start thinking about how the e-learning environment can be accessed through multiple forms of technology - from mobile phone applications to participating in virtual social networks and events online, the boundaries of accessible e-learning opportunities are continuing to be removed.

What this means for HR

In this current climate, HR does need to focus on the detail and ‘get the basics

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right’ as well as continue developing strong business acumen. However, just as importantly, it is now time for all HR professionals to come out of the dark, switch on to technology, and start connecting with the future of e-learning. This isn’t as dull as it seems, and it isn’t another fad; the next generation entering the workplace will be the first born into and educated within a world of online collaboration and interaction. By 2020, this will account for over 40% of the workforce. In order to survive and maintain credibility within this new business landscape, HR professionals need to start developing robust technical skills now, to not be afraid of giving employees more ownership over their e-learning, and to start thinking about what the advancement of technology means for future employee expectations, engagement and productivity. Fully integrating technology with employee engagement and e-learning initiatives means more than creating podcasts and video clips of your favourite employees talking about how great the company is to work for, or setting up a company profile on Facebook for current employees to network through. It is about identifying opportunities to apply these technologies into one unified communication platform within the business, and incorporating them into the DNA of everyday work life and learning. In summary, here are a few simple starting points to consider when thinking about your next e-learning steps; »» Start to integrate: If you haven’t already begun the process, start thinking about how social networking tools can be integrated into your business and be used as part of the learning experience. What is your organisation’s current policy and

attitude towards Facebook or Twitter? If it’s negative, how can that change? Where are the opportunities to actively increase the usage of these tools? »» Letting go: Stop assessing the effectiveness of e-learning systems based on the level of control that it gives the organisation, and start asking to what extent does it give employees greater control over their own learning experience? What opportunities are there to increase employee participation in the design and content of learning programs? »» Move it online: Identify what learning initiatives can easily be moved to interactive online environments such as webinars and web conferences. Start with the basics like induction training and standard compliance training, and continue from there. »» Design vs content: How much time is spent focusing on the delivery and design of learning versus the content? The two are equally as important, and often not enough attention is paid to the former, which ultimately results in the content being ignored and not used. Get direct input and feedback from employees. »» Tech talk: Actively start looking into how technology can be more effectively applied to your learning framework. Talk more to your IT department, and not just about your computer crashing! Do you know what the current IT systems would be able to support when it comes to e-learning? What would the challenges be and how can this be addressed? HC

About the author Philippa Arnold is senior HR consultant at Premiere Global Services, a leading provider of applied communication technologies to businesses worldwide. Check out www.premiereglobal.com.au

Opinion – L&D

How to develop a compelling learning culture

How does L&D become second nature and an integral part of the culture in some organisations? Ricky Nowak provides some clues

ompelling learning cultures do not happen by accident. They are nurtured in environments rich in quality care, quality people and quality values and work together in a way that is seamless. And while the sweet spot where they intersect is the foundation for a compelling learning culture, it takes tenacity, commitment, continuous engagement and rigorous feedback to ensure the culture is strong and dynamic. Some organisations have tried to create a learning culture by initiating and scheduling learning events, workshops, lunch ‘n’ learn or even three-day conferences. But they are often weak and unstable despite the dollars and time invested. Without the passion and commitment to learn, programs interrupt the pattern of learning with snapshots of possibility and opportunity, but this in itself has little to do with culture. Dynamic learning cultures are not products of a 10-step formula. They are formed and shaped by personalities, robust and open conversations, commitment to a set of values and behaviours that are owned by all and most significantly bypass the ego and the obsolete. They are geared up to be drivers of change, innovation and diversity and prepared to change the predictable patterns of behaviour to create a highly efficient processes and procedures. Creating a compelling learning culture depends on active planning, intuitive and immediate response and continuous adjustments, with focus on three levels, namely: 1. How to prepare the learning culture transfer to stimulate inquiry and enthusiasm. 2. How to support the learning culture transfer during the learning phase to heighten the learning experience. 3. How to ensure implementation and support post training and ensure there is evidence of learning and results.

issue 7.7

In order to get the culture right, it is imperative to involve the participant in the planning stage. Here are several examples from high performance teams who have identified their results came from spending time in the preparation and commitment stage. a) Have staff create a Professional Action Plan with date and expected outcomes and signed agreement to commit to the process or not go ahead. b) Have the manager of the team review the Action plan immediately and then again at 30/60/90 days, with an option of HR being cc’d if required. c) Give staff the right signals that demonstrate commitment to learning from the top down. d) Schedule time in between training sessions to review what’s working, what’s not, what has resulted from the program to date and what still needs to be implemented. e) Don’t wait for training programs to be completed before HR reviews commitment to implement. f) As a manager, join your team in the learning. g) Identify the four core areas to avoid problems with implementation: 1. Identify the main issue. 2. Identify the problem or concern. 3. Look at the obstacle. 4. Provide options for a solution (with a deadline in place).

Learning culture transfer Preparation Trainer Pre-session Confirm interest Contact before session

Participant Skills wanted How skills are utilised Responsibility

Manager No interruptions Employee selection Provide opportunities for new skill use

Attention

Transfer workloads

Feedback Journal learning & outcomes

Schedule review Support to consolidate

Outline results & challenges Responsibility to trainer

Debrief

During Diverse learning styles Involve all Monitor engagement & contribution Post training Outline results Observe new skills

Ongoing support

Document & share knowledge

Create opportunities to use new skills & teach others Network staff internally & externally

About the author Ricky Nowak is director of Confident Communications, Strategic Leadership Strategies. For more information visit www.rickynowak.com

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Emotional engagement on a shoestring Leaders can build emotional engagement among employees depending in their career stage, gender and tenure. James Garriock explains

s the economy slows and cutbacks affect staff, organisations are threatened with a downturn in employee engagement and performance. On top of this, buying loyalty with perks such as lavish retreats, rather than earning it with trust is a luxury few of us can afford. Now, more than ever, leadership styles and qualities play an important role in building trust and engaging people. Although we know a lot about the things that influence general levels of employee engagement, we have less information about differences between specific groups of employees. To help, Insync Surveys’ latest research shows that organisations can increase employee engagement with targeted initiatives that match the demographic mix of their workforce.

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Our emotional engagement study was based on 14,000 employee survey responses from more than 70 organisations and examines differences in emotional engagement by career stage, gender and tenure.

Career stage

The research found that ‘age’ has a stronger effect on the things associated with engagement than the other groups which are ‘job tenure’ and ‘gender’. The things that encourage emotional engagement of employees who are closer to retirement are different to those that make a difference for career starters. Our study shows that younger employees’ emotional engagement is driven more by guidance and structure whereas older employees’ emotional engagement is driven more by

relationships and sharing in success. The level of emotional engagement for career starters is likely to be higher when: »» there are strong levels of organisational communication, which helps the employees support the organisation’s long-term strategies and chosen values »» front line managers display professional behaviour »» the organisation provides effective IT and communication systems »» there is a push for high performance, productivity and growth »» the employees are held accountable through a strong organisation focus on the employee’s work group in terms of measuring and improving performance »» systems and processes help customers »» there are processes to respond to employee concerns

employee engagement

»» the organisation displays a community contribution Projects related to any of the above points are likely to have a bigger effect on the emotional engagement of younger employees than older employees. Fortunately, none of these points involve burning cash on expensive team lunches. Baby Boomers are a little different in terms of what makes them emotionally engaged. Right now they are holding on to their jobs while super balances recover, but it is still worth noting what keeps them engaged and contributing to organisational performance. The emotional engagement for employees closer to retirement is more closely related to: »» the employee’s understanding of how the organisation’s long-term strategies will be met »» a belief by the employee that long-term organisational goals and customer strategies help achieve the organisation’s growth plans »» high performance standards within the organisation »» the organisation’s sharing of information and its facilitating collaboration »» how organisational change is handled »» the employees’ trust and respect for their immediate managers »» appropriate HR policies and practices »» the organisation’s committment to reducing risk and acting responsibly

Gender

The second demographic group explored in our study was gender. If your workforce is strongly dominated by one gender, some of these findings may be useful to guide new emotional engagement initiatives that are not costly or superficial. Women’s levels of emotional engagement are more related to processes and procedures that support their dayto-day working life, while men are more affected by long-term strategies and goals providing direction and when targets are positively received. Men are more emotionally engaged by: »» the organisation’s long-term strategies and goals supporting their performance

»» strong work group ethics »» strong leadership and management capability within the organisation This means that the level of engagement for male employees overall is influenced by the organisation’s strategies and the extent to which they believe they fit in with stated goals. Females are emotionally engaged by: »» effective processes and procedures that support and secure the workplace »» successful change management that helps their work group cope with change »» effective communication systems »» the organisation’s effective communication of its brand to customers »» effective systems to serve customers well The above points indicate that women’s level of emotional engagement is more closely related to the processes and procedures in place for HR, information technology, occupational health and safety and the support these areas provide to their working lives.

Tenure

Our study also looked at tenure. For new starters, their relationship with their immediate manager is important for engagement. Similar to the finding for men, longer term employees show a stronger connection to the organisation’s long-term strategies and plans. For new starters, the standout things related to emotional engagement come with an organisation that: »» communicates its value proposition clearly (internally and externally) »» reduces risk of all types »» behaves environmentally responsibly »» has a customer centric culture »» monitors performance towards targets »» brings innovative products to the market The main things that make longer serving employees within the organisation more engaged than new starters are around the organisation having: »» long-term strategies and goals »» appropriate HR policies such as selecting, promoting and retaining the right people – and rewards and appraisals

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»» a strong focus on legislation, regulation and risk »» effective IT systems

Implications for organisation performance

In times of economic doom and gloom, employee engagement can drop off because employees lose confidence and become fearful about the organisation’s future. If there have been redundancies within your organisation or targets are not being met, there can be a downward spiral effect on employee productivity which can further eat into organisational performance. Enough said – we need employees on board. Emotional engagement is an intangible asset and this article has suggested practical areas that can be acted on for different workforce groups. As a first step, ask yourself if your workforce is dominated by one of the groups explored above. For example, if you have a disproportionately young workforce, then the points unique to career starters will have most impact. A diverse strategy addressing the specific needs of the different demographic groups within your organisation will maximise emotional engagement. Without any doubt, managers using knowledge about variations between groups of employees when implementing change will help their people be more successful in achieving overall organisational goals. Our research shows that leading with clarity and consistency results in engagement and sustainable high performance. This builds resilient organisations regardless of budgets, industries or economic downturns, and calls for more self-aware and authentic leaders. HC

About the author James Garriock is CEO of Insync Surveys, an Asia Pacific provider of benchmarked stakeholder surveys.

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issue 7.7

pre-employment screening

Luck of the draw?

There are many methods available to organisations to define and assess their culture, and even more ways to assess job candidates’ potential to fit that culture. Dr Elizabeth Allworth provides a comprehensive guide to screening for cultural fit

job applicant’s suitability for a role relies on more than them having the necessary skill and experience to do the job. Employers are recognising the importance of selecting candidates who also fit the ‘culture’ of the organisation. Considering that the estimated cost of a wrong selection decision can be as much as 150% of an employee’s annual salary (depending on the level of the role), most employers cannot afford to get it wrong. But assessing cultural fit is considerably more difficult than determining the relevance of skills and experience. Not only does the employer need to have an accurate understanding of the culture of the organisation into which the new employee needs to fit, but they also need ways to obtain accurate insights into the candidate’s personality and motivational needs – the attributes that most likely underpin cultural fit. It is the interaction between the two that will enable the employer to make accurate predictions about the candidate’s suitability for the job and their likely tenure. Fortunately, there are many tools and techniques available to employers to assist with the complex tasks of defining and analysing the organisational culture and assessing candidates for cultural fit. The challenge for managers and employers is to select the approach that is not only scientifically rigorous (and therefore defensible and fair to candidates) but that also reflects the unique qualities of the organisation, the work that it does and its budget constraints.

What is organisational culture?

Organisational culture is something that people can sense and talk about, but it is somewhat more difficult to accurately define and measure. In common language, organisational culture is often

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referred to as ‘the way we do things around here’. It reflects the underlying values that are defined by management or, alternatively, that simply grow and exist by virtue of the kind of people that the organisation attracts and the expectations the organisation has of their performance. For example, if the core value is ‘quality customer service’, the behaviours that will be expected and rewarded may include going out of one’s way to rectify a customer problem or attending promptly to customer needs. These behaviours define the service aspect of the culture. Other values that define the culture may be ruthless competitiveness, leading innovation, team collaboration or environmental sustainability. The list goes on. Values underpin the organisational culture and provide the basis on which policies are developed, people are managed and rewarded, and services are structured.

Cultural fit and employee selection

There is no doubt that cultural fit is certainly very important in pre-employment screening and selection. Employees whose needs and values are rewarded by the organisation are more likely to be satisfied, and will likely stay longer than those whose needs and values are not adequately rewarded (Edwards & Cable, 2009). Although there is a threshold beyond which poor fit with the culture could affect job satisfaction and tenure, employees and employers adapt and accommodate to a degree of mismatch (Theory of Work Adjustment, Dawis & Lofquist, 1984). So long as some of the employee’s values are met, they may be willing to tolerate the failure of the organisation to reward or reinforce other values and needs. Conversely, some employers will tolerate unacceptable behaviours to a certain point, provided the employee is satisfying other needs of the organisation. For example, they may

pre-employment screening

issue 7.7

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pre-employment screening

tolerate a disruptive employee if the employee also generates good income for the business. There is give and take in both directions, but there is also a threshold beyond which organisations and employees will decide to sever the relationship.

accuracy. For these reasons, a combination of selection methods are required in most instances. Three selection methods that are very frequently used in selection in Australia are psychometric tests, behavioural interviews or assessment centres.

Assessing cultural fit

Psychometric tests

The assessment of cultural fit is two pronged. On the one hand, the values of the organisation need to be defined. Cultural values may be explicit in the vision and strategic direction of the organisation. The extent to which the organisation reflects the desired culture can be assessed using surveys that ask people about their experiences and observations. Culture, climate or staff surveys may be relevant – depending on what is important and the focus of measurement. These surveys may be designed to measure the specific behaviours that the organisation wishes to develop and promote to reflect its values, or they may be available ‘off the shelf ’. Having defined the behaviours that the organisation wishes to see in its people, an analysis of the behaviours that are relevant to the work group and the job is required. Most job analysis focuses on the tasks and competencies that are required in the job. There are also, however, personality-based job analyses which enable a close matching of the individual’s personal preferences and style with the requirement for those preferences and personality features in the role. Having defined the organisational culture and the job-specific behaviours, the recruiting manager then needs to choose the selection methods that will be used to identify the person who will best ‘fit’ the culture and the job requirements. But not all selection methods assess all cultural attributes or job requirements equally. For example, analytical and problem-solving abilities are best measured using cognitive ability tests, while the interview or behavioural simulations such as role-plays may give deeper insights into interpersonal behaviours. Furthermore, no combination of assessments will ever predict performance on the job with 100%

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The term ‘psychometric’ simply means measurement of a psychological construct or attribute. Psychometric tests have been subjected to a process of rigorous scientific development, and they enable the test user to show precisely how much or how little of the attribute a job applicant has compared with a relevant comparison group (eg, other graduates, other managers or other senior executives). A psychometric test can measure any psychological attribute such as cognitive skills, intelligence, aptitude, motivational needs, personality or values. The psychometric tests that are most commonly used in selection are cognitive ability tests, personality tests and motivational questionnaires. a) Cognitive ability testing: Cognitive ability tests are considered to be one of the best single predictors of overall job performance (Schmidt & Hunter, 1998). These are problem-solving tests and typically cover verbal, numerical and abstract (spatial) abilities. Candidates are usually required to complete the test within a time limit. The results of cognitive testing provide insights into a job applicants likely speed of thinking and learning, efficiency of problem-solving, accuracy in complex decision-making, and ability to transfer knowledge from one problem to the next. b) Personality profiling: There is now a vast body of research supporting the use of personality testing in selection. We know, for example, that there are some key personality attributes, namely conscientiousness and emotional stability, that predict effective performance across most jobs (Ones, Dilchert, Viswesvaran, & Judge, 2007). Furthermore, there is good evidence to support the use of measures of specific personality attributes that are required in the specific role (Barrick, Mount & Judge, 2001). For example, if the role requires someone who is outgoing and communicative, a good measure of these attributes can help an employer make a more accurate selection decision. Personality profiles are typically self-report assessments – that is, the candidate completes a questionnaire that asks them about their preferences or likely behaviours. The results of the assessment are compared with those of a relevant comparison group. The interpretation of a personality test needs to be guided by the requirements of the role. There is not one personality that fits all situations.

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A good match between the needs of the individual and the extent to which these are rewarded on the job can result in higher job satisfaction c) Motivational profiling: Critical to the prediction of cultural fit is the assessment of the job applicantâ&#x20AC;&#x2122;s motivational needs. A good match between the needs of the individual and the extent to which these are rewarded on the job can result in higher job satisfaction and tenure. Like personality profiling, motivational assessment is by self-report or completion of a questionnaire that asks the candidate to state what motivates them. Values and motivational needs can change with experience and the circumstances in which people are placed. People may not necessarily be aware of their values and motivational needs until they are threatened. For example, most will act to protect their freedom or their personal property if freedom and personal property are valued. Similarly, in the work context, employees who value autonomy and independence may prefer to work with a manager who allows them the freedom to do things in their own way rather one who than micro-manages. People are, however, very adaptable and can either tolerate environments which do not completely match their values or do not entirely satisfy their motivational needs. We all have a threshold of tolerance, beyond which dissatisfaction sets in and leaving the workplace is considered. For example, those with a high need for autonomy may put up with a micromanaging boss if other needs are well met (eg, good pay, interesting work tasks). Motivational needs can also vary across different age groups and for men and women. There has been a lot of research examining values and needs at different life stages and, while there is a need for longitudinal research that tracks these changes, it does appear that different things are important to us at different stages in life. For example, younger Australian workers seem to value personal growth and career progression more than older workers, while older workers tend to have a greater need for autonomy and power (Stead, 2009). So while there are some values and motivational needs that may be enduring throughout our lives, people are constantly re-evaluating their priorities and adapting themselves or their circumstances to ensure they fit within their tolerance threshold.

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Behavioural interviewing

There is considerable research evidence supporting the notion that the best predictor of future behaviour is past behaviour, and this is the premise on which the behavioural interview is based (Moscoso, 2000). The behavioural interview asks for examples of the candidateâ&#x20AC;&#x2122;s past experience to demonstrate competence in those areas that are important in the target job. For example, if it is important for future employees to be able to manage difficult clients, the interviewer would ask the candidate to describe a time in which they had to manage a difficult situation with a client, what they did, and what the outcome was. Structured behavioural interviews are commonplace in many organisations and are supported by the considerable research evidence that show that this kind of interview is more likely to predict effective job performance than less structured interviews (a free ranging conversation with applicants) or hypothetical

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pre-employment screening

interviews (that ask “what would you do?” rather than “what have you done?”). In addition to structuring the interview and using behavioural questioning, the skill of the interviewer also makes a difference. Because structured behavioural interviewing ensures that all applicants are treated in a consistent manner with the same questions and rating procedure, those who are not naturally good interviewers can very easily become good interviewers. It is only fair to candidates, and critical to the quality of the selection decision that interviewers have the required expertise.

The assessment centre uses multiple methods and trained observers to assess the attributes that are required on the job. They are typically used where there are many candidates for a number of roles, such as in the recruitment of graduates, call centre employees, or putting together a sales team. The kinds of assessment methods used in an assessment centre will vary according to the attributes required in the role, but may include a combination of interviews, cognitive testing, personality profiling, and a variety of job simulations (eg, team meetings, customer calls,

Never more important

References

Now is not the time to be cutting corners in the recruitment process. Matt Hewitson, lead talent manager, Harrier, outlines why

Personality and performance at the beginning of the new millennium: What do we know and where do we go next? Barrick, M.R., Mount, M.K. & Judge, T.A. (2001).

With the slowing of the market, organisations now have more time to recruit and the luxury of being selective when hiring. Although the market is now in a downturn, prosperity will inevitably improve – so it is all the more important that the people that you bring into the business now are going to help you grow now and in the future. Cultural screening in any market environment should always be of the utmost importance, not just in a downturn. To the uninitiated, a downturning market might suggest that recruitment is easier as there are more people available. But for a recruiter it means there are more people applying, more people to evaluate, and more people to interact with. Due to the exponential growth of organisations and the war for talent, there has been on occasion a habit of ‘over-promoting’, whereby more junior professionals are promoted into very senior roles without the skills or experience. This has resulted in a large component of the workforce being simply uncompetitive in a very competitive market. An added complication is that as jobs become scarce, more people apply for roles that they are not suited for – hence, the quality of applications is lower. This means that there is more work to do and it is harder to find the right people. After going through a change process, bringing people on that are going to support the new vision and the new way of operating is absolutely key to the success of the new organisation.

Assessment centres

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International Journal of Selection and Assessment. 9, 9-13.

Psychological Theory of Work Adjustment: An Individual Differences Model and Its Application. Dawis, R. V., & Lofquist, L. H. (1984). Minneapolis: Uni. of Minnesota Press.

The value of value congruence. Edwards, J. R. & Cable, D. M. (2009). Journal of Applied Psychology, 94 (3), 654-677.

Selection interview: A review of validity evidence, adverse impact and applicant reactions. Moscoso, S. (2000). International Journal of Selection and Assessment, 8 (4), 237-247.

In support of personality assessment in organisational settings. Ones, D.S., Dilchert, S., Viswesvaran, C., & Judge, T.A. (2007). Personnel Psychology, 60, 995-1027

The Validity and Utility of Selection Methods in Personal Psychology: Practical and Theoretical Implications of 85 Years of Research Findings. Schmidt, F.L. & Hunter, J.E. (1998). Psychological Bulletin. 124 (2), 262-274.

The effect of age and gender on motivation to work. Stead, N. (2009). Paper presented at the 8th Industrial and Organisational Psychology Conference, Manly, Australia.

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negotiations, presentations, role plays or in-basket exercises). An assessment centre last from a few hours to a few days. Assessment centres are very resource intensive, as they require a team of assessors who are trained to observe and rate the performance of applicants. They can, however, be cost effective if there is adequate volume â&#x20AC;&#x201C; and very useful in high stakes selection contexts where it is particularly important that applicants feel that they have had the best opportunity to demonstrate their capabilities and the impact of making a wrong selection decision is grave.

Conclusions

There is no reason why cultural fit should be something at which recruiting managers guess. There are many methods available to organisations to define and assess their culture and many more methods available to assess job candidatesâ&#x20AC;&#x2122; potential to fit the

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culture. The challenge for recruiting managers is to implement an approach to pre-employment screening and selection that is fair, rigorous, valid and cost effective. HC

About the author Dr Elizabeth Allworth is director of Allworth Juniper Organisational Psychologists and a Member of the College of Organisational Psychologists, a college of the Australian Psychological Society

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business communication

A generation of

connected business people 42

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Social media technology is not just for the young and the tech-savvy – users of all ages have adopted the internet and mobile technology to get connected. Based on research in his recent book, Connection Generation, Iggy Pintado reviews his five connector profiles and outlines the challenges businesses face with an increasingly connected workforce

“O

nly through our connectedness to others can we really know and enhance the self. And only through working on the self can we begin to enhance our connectedness to others.” – Harriet Goldhor Lerner According to online business networking site LinkedIn, the average age of its 40 million (almost 900,000 in Australia) senior professional member base is 41. It is no wonder that 12% of the member base are in recruitment. In the US, Facebook’s statistics state that in the last six months, the fastest growing age segments were 35–54 (up 190%) and 55+ (up 513%). In fact, analysis by iStrategyLabs state that at this point in time, there are more Facebook users 55 years and older than there are high school students. Regardless of age, we are all getting connected – and fast. Since the sending of the first e-mail to the rapid adoption of social networking as tools of engagement, communication technologies have made people of all ages more connected. It is now over 15 years since the birth of the web browser, and business people with devices that are connected to the internet can now locate, interact and transact with other people – whether they be colleagues, business partners, suppliers and customers – anywhere in the world, 24/7. Communication platforms such as Google, blogs, YouTube, Linkedin, Facebook, Twitter and smartphones such as Blackberrys and iPhones have given users access to a wealth of information, experiences and ideas. Individuals, groups and networks have progressed beyond their intent to communicate. There is now a tangible interaction between people, information, experiences and ideas. Today, we can connect to people and information how we want, when we want and anywhere we want. Consequently, due to technology’s pervasiveness, this dynamic also transcends traditional thinking about societal generations. These technologies are not just for the young and the tech-savvy. Users of all ages and capabilities have adopted the internet and mobile technology to get connected. The world now has a generation of people who live in an era of great connectivity that are not defined by their year of birth. I call it the Connection Generation. It is a generation that is defined by the way people and groups interact and how attitude, behavior and capability affect their place in society and business. The challenge is how to engage and extract value from this generation of

connected business people. A good starting point is to understand connector profiles – profiling that relates to a user’s attitude, behaviour and capability to connect.

Connector profiles

My research revealed that there were five distinctive profiles that define an individual’s degree of connectedness. These groups comprised of Basic, Passive, Selective, Active and Super Connectors. BASIC connectors have a classical view of the word ‘connection’, seeing it in terms of nature, love and the universe. They are slow to take up new technologies and often need an agent, usually a friend or family member to help them manage technology such as e-mail and mobile phones. Basic connectors risk being out of work or out of business and may become social outcasts due to their lack of connectedness. PASSIVE connectors often have a good understanding of technology but choose not to use it to its full potential. They have a ‘conceptual’ view of connection, associating it with puzzles or building blocks. They prefer to watch, listen and absorb before engaging with a person or idea. Being laid back, they risk missing social and business opportunities. SELECTIVE connectors have a ‘relational’ view of connection, seeing it as a handshake, kiss or lightning bolt. Selectives might be members of two or three online business or social groups and prefer minimal but rich interactions. They tend to be among the early majority of technology adopters but too picky about who they connect with – something which could hold them back. ACTIVE connectors have a deep understanding of the usefulness of technologies and tend to think of connection in physical terms: bridges and power points. They are assertive in maintaining contacts, participate in online conversations and tend to seek input and feedback. They embrace most media and are usually early adopters. They need to consider what they value and how to make the most of their contacts. www.hcamag.com

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business communication

SUPER connectors are the most savvy and best connected. They tend to be technology experts, innovators and efficient managers of their connections. They have a structural view of connection, seeing it in terms of networks, processes and maps. They have a strong sense of how it can help them achieve goals while being aggressive and intrusive in trying to increase the number of connections they have.

Challenges and opportunities

The Connection Generation is a collection of diverse connection profiles, groups and networks from various generations and perspectives. The question arises as to how best to manage and leverage the mix of individual profiles to extract the best value from them. To answer this question, it is important to understand the threats and opportunities that underpin each connection profile. Basics possess an overwhelming denial of their ability to learn and adopt connection technology. This limits their propensity to consider technologies which may enable them to become more connected to the rest of society and business. This limitation has the potential for them to be ‘left behind’ from online social communications and events, which could lead to the real threat of

Tips on Twitter Social media has become a communications staple over the past couple of years, as a way to connect with long lost friends, community groups, special interest networks and workplaces. Facebook, LinkedIn, MySpace and now Twitter have abolished borders and boundaries to unite groups with common goals, opinions and, of course, skills. For organisations that are thinking of sending out ‘tweets’ in the hope of sourcing candidates, there are some important things to keep in mind. Kevin O’Neill, CIO of Randstad, recommends the following: »» Represent yourself honestly. Be clear about who you are and who you work for, and mark Tweets in a way that distinguish your professional posts from personal ones. »» Be cautious – on Twitter you represent your employer brand. What you say can, and will, eventually be used against you in the court of public opinion. »» Engage, don’t just observe. Become part of the discussion and your network will grow organically and you can build your Twitter reputation. »» Post interesting links, RT (Re-Tweet) and credit other Tweets, use #tags to mark topics or events, post from your mobile, upload pictures… the possibilities are endless.

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Super connectors are the most savvy and best connected. They tend to be technology experts, innovators and efficient managers of their connections. They have a structural view of connection this group not only being uninformed but of missing opportunities that may benefit them altogether. Due to their attitudinal unwillingness to consider connection technologies to better connect themselves, they could be considered social lepers in an increasingly connected world. Their reliance on connection agents to act on their behalf will be short-lived as these agents come to the realisation that they have less time to spend on tutoring people who are perfectly capable of familiarising themselves and utilising connection technologies. It may ultimately test friendships and relationships. On the opportunity side, Basics’ same dependence on the connected behaviour of others may bring out their willingness to consider the practical benefits of the more applicable connection technologies as it relates to their day-to-day activities and relationships. They may even get ‘dragged into’ the online world if specific connection applications become the standard method for interacting and sharing relevant information among their circles of influence. The pervasiveness of mobile device technology and its applications may be the vehicle for greater connectivity for Basics and they may potentially ‘upgrade’ themselves to more connected profiles. Passives have a tendency to underestimate – and even deprioritise – connection activities. Although they understand the technology and are proficient in its use and application, they limit it to a single, logical application or process. Even if they have taken the plunge to adopt a particular technology, they may not persist with it if they do not see the value. If Passives cannot see the value of connectivity, they may be left behind in business – potentially even missing out on job opportunities. On the plus side, Passives have a propensity to test and trial new applications and they understand the importance of staying connected to close colleagues and friends. Like Basics, if more of their social and business circles used connection technologies as standard modes of connection operation, they would be more inclined to try them out and increase the rate of permanent adoption. By definition, Selectives prefer to keep ‘closed’ networks of connections. They are very specific about who is in – and out – of their social circles, which limits their ability to obtain and understand other points-of-view on issues and challenges. The Selective business professional would have very deep relationships

business communication

with their existing customers but would struggle with prospecting for new business. This perspective, if not managed by their inherent disciplined approach to connecting, could see them regress to a less connected profile. The opportunity for Selectives is that although their networks are closed, their minds are open to new technologies and ideas. They link the logic between application and technology quickly and have a tendency to be more productive due to their focus on specific connection activities. In the case of Actives, management is required to ensure they become productive contributors. They tend to drive connection activity at alarming speeds without stopping to assess the quality of their efforts, leading to unproductive time and activity. It is essential that a management system that incorporates specific controls is implemented by managers of this group to ensure focus is directed in the optimal areas of connection. They are also impatient about job situations that do not take advantage of their connection abilities, which would potentially demotivate and disincentivise them. The opportunity for Actives is that they make for great sales and marketing personnel. Their capability to initiate interactions and proactively connect for commercial benefit should be leveraged by any business. Supers tend to be intrusive and distracted easily. Their addiction to connecting to anything and everything may seem intrusive and offensive to other profiles, which should be managed via their own disciplined system. They can be distracted by the thrill of hunting down multiple contacts without reviewing each connections specific value to their stated purpose. This could also lead to a loss of productivity and commercial output if left unmanaged. The opportunity is that Supers can act as connection mentors to other profiles to boost effective and efficient connectivity for value. They have an intuitive and instinctive sense of how to best leverage connections and their high degree of expertise and experience should be openly shared.

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management. If you want to manage individuals effectively, you need to find out and understand their preferences.

Managing to a PLAN and being OPEN

Activate. For some connection profiles, it is a challenge to establish a connection. To better manage these individuals, regardless of their capacity levels, it is important to activate a connection or relationship. The success or failure of activating a connection is reliant on connection management. If not planned and executed well, it may fail the purpose and intent.

Personalise. Each of the individual profiles, regardless of their degree of connectedness, relishes the importance of a personalised connection to others. Understanding the role of personalisation is an important factor in better managing connected individuals.

Nurture. Once you have understood the importance of personalisation, leveraged their connection preferences and activated connections with stakeholders successfully, nurturing established relationships is key to managing connectors in the longer term.

With the mix of diverse profiles, there are a set of guidelines recommended for how to manage individual profiles for personal and commercial benefit. I summarise these four factors as Personalise, Listen, Activate and Nurture, or more easily remembered as PLAN.

Listen. Listening to what individual profiles are doing, commenting and providing feedback is essential for managing connection profiles. A case in point is in identifying the most relevant connection preference for effective connection

It is acknowledged that connected individuals are part of connected groups and networks. An additional set of initiatives are recommended to best manage these, which comprises www.hcamag.com

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Opportunity, Participation, Engagement and Navigation, or in summary, OPEN. Opportunity. This one is about understanding and working with the precise goal of the group, team or network and taking full advantage of its collective purpose. Participation. It is often difficult in a time-poor, easily-distracted and information overloaded world to get people to be part of something unless they see the value. It is possible to transcend these potential barriers by establishing compelling propositions and communicating the rationale of being part of a greater group. Engagement. Once people are willing to play and have bought in, the connected group, community or network needs to be engaged to realise the full extent of the opportunity at hand. Network. The power of connecting individual and groups together to form networks should never be underestimated, both for good and for evil. Networks can be created in a very short space of time, be powerful and need to be planned and regulated to deliver benefits.

A few words about being ‘Inline’

When it comes to planning and managing expectations of human interaction, the question of the effectiveness of online interplay versus traditional physical – or offline – interaction is often raised. The reality is that it is not a question of one or the other – it is a question of preference management and applicability to the situation. There are some connectors like Basics and Passives who take a backseat when it comes to connection technology and have a preference for face-to-face or phone interaction. Selectives see online as a supplemental connection tool in their daily lives and use a mix of real and virtual interactions to stay connected while Actives and Supers live comfortably in both worlds. The key here is not about online replacing offline. The most effective connection methodology is the one that works and preferred by the parties concerned relative to what needs to be achieved. I call this concept inline, which means to establish the most relevant and effective connection methodology, as the name suggests, ‘in line’ with what needs to get done. Inline is a critical consideration for business, especially in the case of relationship management. Telephone and video conferencing is being widely used by organisations to save time and expense of international and interstate travel, but there is no replacement for establishing and maintaining individual relationships and group dynamics via regular face-to-face social and business interaction. In my corporate experience, most of the value from team meetings, workshops and conferences was done outside of the formal agenda sessions, usually during preevent breakfast meetings, coffee breaks and post-event drinks

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at the local bar. Some of these interactions have developed into friendships and associations that transcended corporate life and that are being maintained through connection technologies like online networking, inline with the current and applicable circumstances. It is a challenge to manage individuals and groups well and extract the best value out of them. Just ask any CEO, manager or sporting coach in the world. In a connected world, understanding connector profiles, managing to a PLAN with individuals, having an OPEN mindset with groups and connecting INLINE with desired outcomes, provides the framework to more effective management of this generation of connected people called the Connection Generation. HC

Online attraction Online attraction techniques have declined over the last 12 months, with 5% of organisations having used online social networks (6% in 2008) and even less making use of SMS technology for sourcing people (1%). These findings indicate that although the technology is readily available, the employment industry as a whole has been slow to tap into its potential – suggesting the priorities and resources of HR practitioners are shifting in favour of tried and tested methods. For those organisations that have entered the digital realm via online social networks, it appears to have paid off with a third (38%) of respondents (who use social networking sites) having successfully employed someone as a result. Information sourced from the 2009 Randstad Employment Trends Survey Report.

About the author Connection Generation, Iggy Pintado’s recently released book, is a fascinating study of how connectedness affects our place in society and business, and the challenges and opportunities this compelling development presents us with. For more information, visit www.connection generation.com.

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HR Service Provider the credit THEY deserve! We are now collecting submissions for the 2009 Top 5 HR Service Providers. If you know of a service provider that has delivered outstanding professional service we want to hear from you. You can nominate your chosen service provider online now at www.hcamag.com The categories include:

Recruitment HR technology and software Career development & training Online job board Teambuilding organisation or incentive provider Migration and mobility organisation Get in quick, entries close Monday 5th October

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issue 7.7

teambuilder

Photo: Thilo Pulch, www.pulchphotography.com

The sameâ&#x20AC;Ś but different

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While the largest merger in Australia’s history continues to be bedded down, Human Capital talks to the head of St.George Bank’s HR team

estpac CEO Gail Kelly has been very clear in her approach and strategy regarding the St.George/ Westpac merger. In short, she has stated that more brands equal more customers. However, she has also emphasised that it is important the brands do not become vanilla: a certain type of customer is attracted to St.George, as they are to BankSA, and to Westpac. These thoughts are echoed by Ross Miller, general manager, human resources at St.George. “Part of our strategy has been ‘big enough but small enough’ in the eyes of our customers. Backed by the Westpac Group we are big enough to have the confidence and benefits of being the largest financial institution in Australia. At the same time, we will keep the unique St.George brand and culture so we’re small enough to feel part of the community. Customers identify strongly with that,” he says. Not surprisingly, the HR team at St.George is following the lead set by the corporate strategy – that is, integrating two entities that will essentially share the same DNA. “We’re very proud to be part of the Westpac Group and we’re now big enough to draw on great resources – via shared services across the group – but at the same time the team is focusing on what the key, unique components are at St.George and how we can influence them,” says Miller.

Miller came to St.George following 10 years as general manager of people for Westpac Retail & Business Banking. Prior to joining Westpac Group in 1997, Miller spent time in the UK as a commercial manager in retail at Marks & Spencer and Somerfield. Throughout his time in the UK, he also had stints in HR, which despite some initial trepidation, he says he thoroughly enjoyed. “I didn’t expect to enjoy a career in HR. I loved managing a P&L and the immediacy of when you saw results as a P&L manager – particularly in retail where you can influence sales so easily. What I learnt quickly in HR is that as a strong and business-focused practitioner, you can similarly influence business outcomes. I really got hooked when I saw how I could help the business by driving business results through its people. Working in both retail and, for the last 12 years, in banking and finance, I know that we are fundamentally ‘people’ businesses. The biggest way we can influence outcomes is through our people. HR is a great medium to do that,” he says. Miller now reports to Greg Bartlett, CEO of St.George. He is responsible for “all things people related”, extending from before the employee joins the company at attraction and employer brand stage, through to their experience with the company, and even when they leave via employee advocacy – ie, continuing the relationship perhaps as a customer.

A new role

Steady as she goes

Miller, who moved across to St.George in May, has big shoes to fill. His predecessor Brett Wright (profiled in HC5.7) did a remarkable job positioning the St.George brand and building the esteem of the HR team as industry leaders in Australia.

Understandably, the merger remains high on Miller’s agenda, as integration between the two entities continues. By all accounts, progress is tracking well. Job losses so far under the merger have been in the low hundreds, in sharp

contrast to the thousands predicted at the start of the process. According to media reports, while the number of direct St.George staff has fallen, many have been redeployed throughout Westpac, primarily to the central operations area under Westpac group executive Peter Clare and also to Westpac’s BT Funds. On the people front, Miller is quick to acknowledge the efforts of the St.George HR team and his predecessor. “Our employee turnover during that time has actually reduced. The market conditions are probably favourable to that, but throughout such a large merger we’ve continued to be ahead of any benchmark on turnover for the finance industry – not just for our core banking function but also for our call centre. At the same time we participated in an employee engagement survey and St.George employees have a level of engagement above global benchmarks. The HR team has certainly played a key role in bedding down the merger,” he says. Not surprisingly, Miller believes part of the success can be attributed to solid communication (the St.George communications team is also part of Miller’s unit). “We’ve tried to ensure our communications are consistent right across the Westpac Group, providing employees with good up-to-date information about what’s going on,” he says. Another important factor has been the notion of ‘business as usual’ for employees and customers. “We gave our employees the confidence to be able to talk to their customers but at the same time not get distracted by the merger,” he adds.

Graduate recruitment

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program, which has continued despite the financial turbulence that has forced other players in the financial services sector to scrap their programs. St.George welcomed 22 new graduates into the organisation this year. Graduates will

balance between making the graduates feel special and welcome, and also introducing them to the working world. “There’s a balance between working in teams and training on the job. It’s role specific so they begin to understand that for the first

“The opportunity presented by our small enough/ big enough strategy allows us to be unique. We can continue to do fantastic work as part of a broader group but at the same time really pull out what’s unique at St.George” – Ross Miller spend six months in the retail distribution division and six months in the corporate and business bank division, giving them a broad range of banking experience and the opportunity to discover what area they are most interested in. Graduates are also guaranteed a full-time job at the end of the 12-month program. “I think it’s always important to be investing in future talent, even in times such as this. It would be incredibly short sighted for us not to sign up any graduates now and then in three years’ time realise we don’t have the talent in the pipeline. Equally important is getting graduates on board to gain the experience of working in an environment such as this. This sort of experience is very important,” Miller says. Although St.George is well and truly in the market for graduates, attracting them online and via university careers expos, Miller says the focus is on the distribution arm of St.George. “The HR team is targeting graduates that are looking for careers predominantly in our distribution area. We’re being clear about our value proposition so graduates know we’re keen to get people interested in working in this field,” he explains. For many graduates, this is their first experience of corporate life, and Miller says it is important to strike the right

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year, they get the opportunity to learn, but there’s also a requirement for them to contribute to the organisation. They are not counted as FTEs – there is no productivity expectation out of graduates and we’re very open with them about that – but at the same time we encourage them to contribute to the business and feel part of the team.”

The future

At a broader level, Miller and his team will continue to leverage the benefits of innovative policies such as grandparent’s leave and extended leave. Miller also buzzes about the state-of-the-art HRIS (titled HR Express) that enables line managers to collate and analyse key HR metrics. These systems will be used throughout the Westpac Group as best practice initiatives. Miller is also pleased with the current state of St.George’s employer branding. “It doesn’t matter where I go in the organisation – to a branch or to a corporate centre – it’s great to see an organisation through the eyes of the HR team, taking the time and effort around internal branding as well as external branding. From that we have a very clear EVP that is aligned to our corporate brand,” he says.

The top priority for Miller and his team is to complete the merger and maintain the unique St.George cultural elements, but the next 12 months has other challenges, as Miller explains. “We’ll be continuing to understand what our recruitment strategy is and how we can attract great people to St.George. It’s also about passing on the right capability to our employees, so it’s being part of the team that provides L&D solutions. “We’re in one of the most challenging times we’ve ever had – the HR team plays a role in equipping our sales force to have different types of conversations with our customers. At the same time, there’s a great opportunity to contemplate the next generation of HR initiatives and how we can start thinking about things differently,” he says. Miller believes the HR profession of the future will need to take a commercial approach to supporting businesses, including the ability to forecast and solve any capability issues that an organisation may face. “There will be a much greater need for HR to think about capability as an end-to-end process, rather than silos of function such as remuneration & benefits and training. Australian businesses will look to a much broader definition of capability and HR will play a role in helping the business determine that.” As he talks about the future, Miller’s enthusiasm is contagious – he claims that St.George’s long-term icon Happy Dragon is already his best friend. “I’ve never felt more welcome in a job. From my colleagues in HR to the executive team, it’s been remarkable. I was thrilled when Greg Bartlett asked me to come across. The opportunity presented by our small enough/big enough strategy allows us to be unique. “We can continue to do fantastic work as part of a broader group but at the same time really pull out what’s unique at St.George and continue the great recognition that the HR team has had in the market,” he says. HC

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Transitions This month’s profile subject has undertaken a COO role after several years in HR. Iain Hopkins asks how the transition was handled

s a 20-year-old Army Lieutenant with direct reports twice his age, Ben Deverson learnt a thing or two about people management early in his career. While these challenges are common practice for all young army officers, Deverson believes it was his baptism of fire. “The leadership skills you develop in such a position stand you in good stead for your career, whatever that may be,” he says. At that young age, it’s doubtful that even Deverson himself had any idea what direction his career would take. He started his career in the army at the Royal Military College at Duntroon in Canberra. While completing a degree and majoring in HR, Deverson undertook roles in personnel management within the army, where he remained for eight years. In late 2002, Deverson was offered a job as an HR consultant with Ernst & Young, where he stayed for six years. In that time he moved up through the HR ranks to be the HR manager for Queensland. During his last few years at Ernst & Young his responsibilities evolved into two roles: HR manager and COO. “It came about because I identified a gap in the management team that I felt was creating some challenges to our business. I proposed that the firm should

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bring in a COO and before I knew it I was doing it. That led to the opportunity to come over to BDO Kendalls as a full COO, and I’ve been with them for the past 12 months,” Deverson explains. Deverson believes there is crucial overlap between the roles of HR manager and COO, especially in professional services. “The product you offer clients is the knowledge and experience of your people. As a result, the effective management, development and leadership of those people is an operational issue. It’s the cornerstone of the operations of the firm. A lot of what I do focuses on ensuring the efficiency of 300 clientfacing staff, ensuring that our people are appropriately trained and that we have the right people servicing the right clients,” he says.

Crossing over

Deverson’s personal transition between HR and COO seems, in hindsight, remarkably straightforward. He believes it was a combination of circumstance and personal interest in how a business operates that made the move inevitable. “The HR environment at Ernst & Young and in many professional services firms is quite cyclical. You come back from Christmas break; you do graduate

recruitment program; you have a performance review season; then salary review time; then a bit of project work. I was keen for something else, and keen to broaden my experience,” he says. Deverson formed a solid relationship with the financial controller at Ernst & Young and proceeded to ask “countless questions”. He also engaged the managing partner in an open dialogue regarding what he could contribute. “I asked if I could help with the business plan for the coming year. From all accounts I didn’t stuff it up, and it flowed from there. In an accounting firm, the managing partner is almost all on their own – they don’t have a professional corporate structure of a COO, CFO, and so on. As a result, there’s often a huge backlog of work which, in their defence, they just can’t get to. From the HR manager’s perspective, I saw we had a big gap and I believed we could address it by creating this role.” The ‘stretch’ aspect of the newlyformed role also piqued Deverson’s interest. “I didn’t like sitting in executive meetings and only being asked questions relating to HR. I wanted to play a broader role, to be sought for advice on other areas of the business,” he explains. Deverson threw himself into onthe-job learning. He would go to client

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engagements with staff to get a feel for what they were doing, and also moved closer to the finance and marketing teams. He even became involved in office administration. “It was traditional general management. Before I knew it, I was getting involved in space planning and looking at avenues of growth for the firm,” he says. “I was like a sponge soaking up knowledge for a good couple of years. At the start, I literally had no idea of the

difference between a P&L and a balance sheet. To this day, I wouldn’t call myself anywhere near a chartered accountant but I certainly have a broader understanding of the financial management of the firm and the effect of decisions on the bottom line,” he adds.

HR at BDO Kendalls

It’s no surprise that Deverson still has close ties to the HR function at BDO. HR report to him and the team is situated

In his own words… What do you consider to be your biggest career achievement so far? The transition from the army to the corporate sector was probably my greatest achievement and also a challenge. I literally went from a uniform on Friday, to a suit and tie in one of the largest professional services firms in the world on Monday. The military is very structured and hierarchical. I went into a corporate world and it was vastly different so it took some time to adjust. I was fortunate to receive fantastic feedback early on. Those people who know me know I like to talk straight and I live by a rule: if I’ve got parsley in my teeth you need to tell me. That is, if there’s anything wrong with what I’m doing you need to tell me straight away. My immediate supervisor in HR at Ernst & Young told me to loosen the grip a bit. I was very formal in my approach. I’d come to meetings and it would be like I was briefing a General. My e-mails were also very formal. Taking on this role was also an achievement. For a firm of accountants to offer a non-accountant a COO role was an accomplishment. My boss tells me I wasn’t hired for my accounting skills – we’ve got enough of those here already. What has been the biggest challenge you have faced in your career? When I came to BDO Kendalls, we incorporated – went from a partnership to an incorporated entity or group of companies. So BDO Brisbane is no longer a partnership structure. That incorporation was led by the managing partner and myself. It was an enormous challenge, creating several new companies, with all the financial and legal elements and governance around that. The change management in taking the firm from a partnership with one operating entity and 8,000 clients and serving those clients through several companies was a huge challenge and one I admit I loved doing. Where do you see HR as a profession heading? The economic crisis has brought out the different skills in HR. A lot of people in my network have had to transition from rapid growth/resourcing strategies to rightsizing and downsizing. They are now involved in outplacement, redundancy discussions and the risks around that. It’s a huge change. To take that further, the HR profession needs to be broadly skilled. The demographic reality of the ageing population and maintaining innovative work practices for the working population will require those skills. We’ll be coping with new entrants to the workforce and ensuring that older workers are empowered to successfully contribute up to their retirement, and making sure that culturally it works well.

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directly outside his office. “I do maintain a close relationship with them – they all know I’m of their blood, so to speak,” he notes. “They are a strong team and highly regarded here.” With 1,400 employees nationwide and a Brisbane contingent of around 320 staff, BDO Kendalls falls just outside the ‘big four’ accountancy firms and is the largest of the ‘mid tier’ firms. The key difference with some of the larger firms is that BDO is a federated network of firms, so all the firms are independent of each other. “Whilst we do share IP, brand and marketing, and broader IT and HR initiatives, the financial and other operational decisions are ours and ours alone. Consequently, I see the HR team at BDO as quite significant players in the business. They are intimately involved in the development of the people strategy and executing that. Most importantly, they have fantastic trusted advisor relationships with the partners,” he explains.

Challenges and initiatives

The trusted advisor status has seen the BDO team through some challenging times. The accounting profession in Australia continues to face serious skills shortages, a fact made more acute by the well documented ‘brain drain’ to London. “In my early days here at BDO there was still that drain of talent offshore. The HR team didn’t have a dedicated recruitment resource so a lot of their time and energy was spent on recruitment and resourcing. In one year alone the HR team recruited 130 staff, and only 30 of those were graduates. Getting 100 experienced hires a year suggests they truly had their hands full. They did a great job,” says Deverson. Given the global economic crisis, the firm has seen a significant reduction in turnover of staff, and a reduction in recruitment activity. Although international movements have also dropped, BDO has a global network and reciprocal arrangements with overseas operations for short- and long-term secondments. Staff from the northern

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hemisphere will come out to Australia for the busy audit season from July to September, and vice versa. Locally, the HR team have established some innovative HR initiatives. Taking cues from the company name, several initiatives revolve around the letter B: BWell (corporate health and CSR); BSafe (OHS); and BInformed (staff communications). “The BWell committee comes up with great initiatives: yoga, fitness classes, sporting teams, employee assistance programs, and other activities such as presentations delivered by psychologists and other corporate trainers. We have an annual award for the staff member who we believe is the strongest contributor to “being well”. We’ve also got the Boscars, based on the Oscars, which are annual awards that recognise the people we believe to be the strongest contributors to our values. One of our values is to innovate, so this award has staff nominating whichever of their peers they believe is the best contributor to innovation. It’s a great night to show off the culture of the firm,” Deverson says.

Capability gap

As any HR professional knows, unfortunately it’s not all roses and bouquets. If Deverson’s experiences in people management have taught him one thing, it’s that people will do everything they can to avoid having ‘tough conversations’ at work. He believes it is a significant capability gap. “Companies and even HR teams need to do more to ensure that authentic discussions take place. Performance reviews are tough to do, especially if you have to manage underperformance, but it’s a gap we need to fill as part of our leadership and succession planning. I often find people will not address the issue: they will come to the annual review and sweep it under the carpet; then give the person a solid review; and then continue to be concerned about their performance when they could have addressed it,” he explains.

Deverson does not believe it should be left to the HR manager to tidy up the mess, and he has been heartened to discover that at BDO the HR team has very little involvement in managing underperformance. Managers deal with it directly. “It’s great that they can identify and address it and get on with managing performance towards a positive outcome. It creates an entirely new dimension when HR gets involved. People often ask me to come to the discussion with them but I believe it’s more credible for them if they do it themselves. I can help with key messages and delivery and feedback, but I believe it’s critical they do it themselves,” he says. Deverson advises that the June/ December performance appraisal should never come as a surprise. It is far more effective, he says, to have regular conversations with staff to address the important issues, praise great results and assess performance. “When it comes to review time, you literally summarise those comments, formalise it however you need to, and then it should be a relatively accurate reflection of the last six months.

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It’s a disservice if you don’t address performance issues straight away,” he says. In some instances, Deverson believes the manager is not to blame if these conversations are being avoided. “Technically gifted people are often put into leadership roles. Then they’re responsible for a team of 10 people – and all of a sudden those 10 people are looking to the leader for coaching, guidance – and the manager hasn’t got a clue as to what to do, as they’ve never been shown how to do it properly. BDO has L&D programs that address leadership and management skills early, before employees commence managing and handling performance appraisals,” he says. Again, there is that link to strategy and long-term planning that Deverson has witnessed – and participated in – since his army days. “One of the things you learn as an army officer is the ability to articulate team strategies based on a strategic agenda above you. And one of the things I hope I’ve been able to bring to this role and prior roles is the ability to articulate strategy for both an HR team and the broader firm,” he says. HC www.hcamag.com