RCSA Journal September 2016 by RCSA

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RCSAJournal Australia & New Zealand | September 2016

Next Generation

RECRUITMENT

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RCSA International Conference wrap

IN THIS ISSUE • Looking in the mirror: Defining the industry personality • Diversity, inclusion and infusion • Don’t wait for the transition!

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Contents

REPORTS 4 President’s Report: Robert van Stokrom FRCSA 6 CEO’s Report: Charles Cameron

EVENTS 8 Next Generation Recruitment: RCSA International Conference wrap Integrating yesterday’s experiences with tomorrow’s recruitment opportunities

FOCUS: THE FUTURE OF WORK 14 Looking in the mirror: Defining the industry personality

NEW ZEALAND UPDATE 20 Crystal ball gazing: where is the NZ recruitment industry heading? John Harland comments.

BUSINESS MANAGEMENT

ASSOCIATION NEWS

22 The recruitment industry in a decade – what does it look like?

35 Introducing RCSA Insurance

24 Acquisition trends, worker engagement, the bench model – it’s all in the data 26 Diversity, inclusion and infusion STAY CONNECTED www.youtube.com/rcsatv www.facebook.com/rcsaausnz

RCSA Conference wrap

36 RCSA stands united: Labour supply a shared responsibility 37 RCSA Region Councils 37 Welcome to new Corporate Members

28 Don’t wait for the transition! 30 Work health and safety for labour hire 34 How our industry contributes to the economy

38 ANRA News 39 AMRANZ Update 40 RCSA Partners and Premium Supporters 41 RCSA CPD & Events Calendar 42 RCSA Board, Life Members & Fellows

twitter.com/RCSAevents www.linkedin.com/company/ rcsa-australia-and-new-zealand

RECRUITMENT & CONSULTING SERVICES ASSOCIATION LIMITED The RCSA Journal is published by the Recruitment & Consulting Services Association Limited.

RCSA AUSTRALIA & NEW ZEALAND PO Box 18028 Collins Street East VIC 8003 Australia. T: +61 3 9663 0555 Toll Free NZ: 0800 441 904 F: +61 3 9663 5099 E: info@rcsa.com.au www.rcsa.com.au

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Carly Fordred RCSA Marketing & Communications Manager T: +61 3 9663 0555 E: cfordred@rcsa.com.au

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ADVERTISING & SUPPORTER ENQUIRIES Carly Fordred RCSA Marketing & Communications Manager T: +61 3 9663 0555 E: cfordred@rcsa.com.au

The Recruitment & Consulting Services Association (RCSA) is the leading industry body for talent management and workforce solutions in Australia and New Zealand. With approximately 3,300 members, Corporate and Individual, the Association sets professional standards, conducts research, educates and develops members’ skills, monitors industry developments and lobbies governments on issues directly affecting members.

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NOTE: All material published in the RCSA Journal is subject to copyright and no part may be republished, photocopied or transmitted electronically or in any form without written permission. Opinions expressed by contributors are their own and are not necessarily endorsed by the RCSA or the editor. Advertisers and contributors to the RCSA Journal should be aware of the provisions of the Anti-Discrimination Act 1977 and the Trade Practices Act 1974 in relation to false and misleading advertisements or statements and other unfair practices. The RCSA and the editor accept no responsibility for such breaches. While every effort has been made to ensure the accuracy of the information in this publication, no responsi bility is accepted for errors or omissions.

SEPTEMBER 2016

PRESID E N T’ S RE PO R T Robert van Stokrom FRCSA

hose who have been in our industry for some time would know that we are constantly under close scrutiny. Over the years, there has been many examples of criticism from governments, trade unions, academia, the Greens, human rights activists and many others. You name it, and everyone has something to say. Unfortunately, much of this commentary is coming from a place of ignorance, or is politically motivated, or both. Rarely do we see supporting data to support the opinions, and when we do it’s usually incomplete, inaccurate or in many cases simply fabricated. Currently there are inquiries into the practices of the labour hire industry in three states, and in Victoria the same inquiry is examining ‘insecure work’. This inquiry is directly challenging the right of employers and workers to engage in flexible and responsible arrangements that have been, in most developed countries, accepted ways of work for decades. The proposition that flexible work is not good for our economy or society is out of touch and draconian to say the least. The ‘World of Work’ has and is changing globally: we are the connectors, the irreplaceable human intermediary. Our industry plays a critical part in the success of modern economies as we provide the flexibility and productivity gains all companies strive for in an ever increasing competitive environment. We are also the efficient cost reducing link in assisting job seekers to find work, and employers to find their workers. The theme of this year’s RCSA conference, ‘Next Generation Recruitment: Integrating yesterday’s experiences with tomorrow’s recruitment solutions,’ captured perfectly the crossroads at which our industry finds itself. In the past twelve months, globally there has been a significant 12 per cent increase in the use of on-hired workers, and our industry now enables work for 71.9 million people, and employs 1.6 million consultants, sales, payroll and executive staff. Every day in Australia and New Zealand alone, our industry employs around 500,000 on-hired workers, all provided to organisations needing the flexible and productive workforce that our industry provides. We are also responsible for engaging many thousands of permanent appointments. In finding, assessing, matching and placing people in careers ranging from cleaners to CEOs, from retail staff to board directors.

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Our industry’s contribution to the economy is substantial, directly accounting for some $20 billion per year in Australia and New Zealand, according to IBIS World’s latest forecast. That, however, is just the tip of the iceberg with multi-factor productivity likely to be upwards of $150 billion when we account directly for employment and the contribution to GDP of the goods and services produced by those workers. All of this provides a compelling story that reflects the commitment of professional employment firms to operate to high standards, and to provide employers with a clear choice when they select an employment services firm they can trust. Our challenge now is to differentiate and expose the illegal and dubious practices and habits of labour hire contractors and organisations that avoid their responsibilities. The future is in our own hands, as is our responsibility to be innovative in our demonstration that sustainable and rewarding opportunities in the future world of work will only exist with reputable and professional employment services firms. Now is the time to stand-up and to be extremely proud of the great work that members do in opening employment opportunities and in assisting businesses to grow and prosper. Over the coming months, the RCSA will be speaking with you, our members, about accreditation for the industry that will make it easier for buyers of employment services to identify an ‘accredited provider’ and to make the right decision. We have asked members to provide their stories and testimonials about the great work you do with job seekers and clients. Take a few minutes to participate and share your story to put a ‘human face’ to the industry: we know our ability to connect people with work as human intermediaries cannot be replaced by technology. I want to remind everyone why. Robert van Stokrom FRCSA RCSA President, Australia and New Zealand

The World of Work is changing: we are the connectors.

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CEO ’S RE PO RT Charles Cameron

Welcome to the September issue of the RCSA Journal. I’ve recently returned from the RCSA International Conference: Next Generation Recruitment in Port Douglas. It was fantastic to see so many new faces and catch up with the backbone of professionalism in our industry. In addition to the warm weather, the inspiring speaking program and the social events, there was a new energy noticeable at the Conference this year. This has been commented on by many who attended. The energy I speak of was brought about by new delegates (over 50 per cent of 2016 Conference delegates had not attended an RCSA Conference in the past five years), new ideas from leading speakers and thought leaders, and true vigour from a group of enthusiastic sponsors, partners and exhibitors. As we transition from recruitment to workforce solutions, it’s important to note that Next Generation isn’t just about age; it’s about open-mindedness, it’s about approaching the market in a different way, about approaching clients, about their changing needs and how this can bring new lines of income. To my mind, next generation encircles all of us - young, old, long-term members, new members; and it’s about encouraging others to bring their ideas, thoughts and passions to the table. We all have a responsibility to do this and it is ultimately good for business. We announced at the Conference the establishment of a Next Generation Council. We’re currently in the early stages of development and we’ll soon be inviting those who are interested to become involved. Watch out for the invitation to join the council by submitting a YouTube clip. I’m really keen to shake up how we look at ourselves and how we do business. This Council is about bringing new approaches and fresh ideas to the association and acting as a sounding board for questioning how we’ve done things in the past and how to approach things in the future. It’s also about succession planning. We’re looking for ways to hand over the reins from the current generation to the next generation, where knowledge and wisdom is imparted and carried

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forward with the renewed vigour of the next generation. That succession is being stimulated by a more rapidly evolving market, and with that, comes a need for more rapidly evolving ideas, services and interaction - so look forward to greater engagement from us. Every one of you as a member is part of the Next Generation Council, you may not be an official Council representative, but you’re all a part of it, and if you’re not contributing, you’re not really contributing to the industry. As an association, we must be able to use our public influence and presence a lot more effectively. One of the initiatives we undertook at the Conference was to record your stories about how you transform people’s lives. A playlist of the videos we recorded at the Conference is available on our YouTube channel, RCSATV. We need to tell our stories and be proud of them. You’re certainly going to see RCSA being bolder and louder about how great our industry is. If you didn’t make the Conference or get around to making a recording, don’t fear because we will be giving you more opportunities very shortly. My call to you as a member, and to the wider industry, is to start giving back with your ideas, your thoughts, and with your energy. Now is the time to raise your voice and be part of a new era of the RCSA as we undertake a significant transformation that will see your association be louder, smarter, more agile and customer focused. Now’s the time to get more involved. Charles Cameron RCSA CEO, Australia and New Zealand ccameron@rcsa.com.au

Now is the time to raise your voice and be part of a new era.

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2016 RCSA International Conference wrap More than 300 owners, managers and consultants headed for Port Douglas in far north Queensland in August for this year’s 2016 RCSA International Conference at the newly redecorated Sheraton Mirage. They learned from industry experts about Next Generation Recruitment: Integrating yesterday’s experiences with tomorrow’s recruitment opportunities with thanks to our Platinum Sponsor Kinetic Super.

We need to define our brand. We’re not just recruiters, we’re workforce enablers. Charles Cameron, RCSA CEO

RCSA JOURNAL

EVENTS

There’s a need for greater flexibility in the workforce - but it needs to be flexibility of labour contracts. STEVE SHEPHERD FRCSA (LIFE)

FRCSA announce RCSA President Robert Van Stokrom Council. the launch of the Next Generation

When trust is at risk, eve

elegates enjoyed keynote speakers Andrew and Gaia Grant, Denise Meyerson, Fiona Anson, Kay Clancy, Anne Sabine, Kevin Chandler FRCSA, Steve Shepherd FRCSA (Life), Dr Libby Weaver, David Penglase, Wiremu-Lee Edmonds and Brett Minchington – as well as networking in the popular exhibition area. The social activities included the Poolside Welcome Reception sponsored by ELMO and the spectacular Flames of the Forest Gala Dinner sponsored by Kinetic Super.

rything is at risk. DAVID PENGLASE

Recruitment occurs in three parts: job analysis, candidate sourcing, candidate evaluation. Thinking this way wins clients. KEVIN CHANDLER FRCSA

Denise Meyerson had dele gates thinking outside the box by using and play ing with Lego.

Minchington Take time to create your image. Brett build branding. says it generally takes five years to

It’s what you do ever y day that makes you great, not what you do now and then. DR LIBBY WEAVER

We need to embrace diversity and inclusion, and understand what it can do for our organisations. KAY CLANCY

SEPTEMBER 2016

EV ENT S

Golf Day Sponsored by JobAdder

Welcome Reception Sponsored by ELMO

ELMO

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EVENTS

Philip Seubert and Calvin

Millennials will make up 75% of the workforce by 2025.

Lake from Kinetic Super

FIONA ANSON

Creativity doesn’t occur in the cubicle, you need a place to hang in the office for creative thinking. ANDREW GRANT

The future of work for recruiters is using the forces of change to become talent managers, not talent finders. STEVE SHEPHERD FRCSA (LIFE)

Gala Dinner Sponsored by Kinetic Super

n of being True Leadership carries with it the burde an example. WIREMU-LEE EDMONDS

Wiremu-Lee Edmonds asks, do you have the courage to stand up for yourself, for me or for others. Will you “stand in the gap?

SEPTEMBER 2016

EV ENT S

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EVENTS

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Scottish Pacific

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THE FUTUR E O F WO R K

Looking in the mirror:

Defining the industry personality What does the recruitment industry look like? How would you define it? And what will it look like in the future? The RCSA Journal digs deep to uncover the industry psyche. In this article, we speak with two experts who share their views on what defines the recruitment industry personality: Rick Kane, CEO, Disability Employment Australia and the Hon. Nick Wakeling MP, Shadow Minister for Education, a former recruiter who spent some years with Adecco.

ynamic, engaging, curious and – something that might sound contrary – conservative and resourceful. These are the words Rick Kane uses to describe the recruitment industry personality. Dynamic also tops Nick Wakeling’s list, along with the descriptors well-grounded, business-savvy, with great sales ability. He also adds: ‘For me, it’s about understanding the needs of business and offering a solution that some businesses don’t realise they need’. So what do they believe makes the recruitment profession different from other professions? In Rick’s view, the main point of differentiation is that the recruitment profession works to a faster deadline. But perhaps more importantly, he adds, while there’s always a sense of what today’s labour market requires through the very nature of how the profession operates, there isn’t always a sense of what the future of the labour market looks like. ‘And so sometimes the profession might not be as switched-on to the movement between today and tomorrow as it could be. ‘It’s different in the sense that recruitment is at the front line of the national economy,’ Nick says. ‘So when industry is doing well, the recruitment profession is doing well. When industry or the economy is doing poorly, the recruitment profession is seriously affected because those additional funds for casual employment dry up. ‘We saw this about eight years ago with the GFC: businesses tried to retain permanent staff, but what they did in effect was remove numerous casual staff, many of whom were recruitment profession employees. So recruitment is really at the front line in terms of what happens with the economy: I liken it to the canary in the coal mine.’ Nick continues: ‘The recruitment professional – particularly the on-hire sector – not only needs to be good at sales, they

also need a clear understanding of business and how business is evolving in terms of its operation and its long-term needs.’ Companies in the past, he explains, would manufacture and store, whereas now they import and distribute. ‘So it’s understanding supply chains, it’s understanding the way in which business operates and interacts with other businesses. A good recruitment company, a good recruitment salesperson, knows this and understands where their clients sit in the broader industry.’

Different from other professionals Recruitment professionals differ from other professionals in that they need to understand people, the changing nature of business, the layers of bureaucracy within organisations, who makes decisions and who implements decisions,’ Nick says. ‘They also need to understand employment. One of the challenges I always found was that while many recruiters were good at sales, they failed to understand that the product we sell is people. Occasionally those people were not being paid properly and I would have to come in from an IR perspective and fix that. Good recruiters know this and understand how you can evaluate and handle many IR issues for companies. It’s more than just understanding how to sell; you have to understand the product you’re selling. And you have to understand the raft of issues that come across your desk and basically you have to understand how your client operates within their business. ‘The point of difference with recruitment professionals is that they’re go-getters,’ Rick says. ‘They move at a pace that sometimes seems like they’re ignoring other things, but if you get into sync with a recruiter’s pace, they’re quite exciting to be around. ‘This goes back to the dichotomy mentioned earlier about the today and the tomorrow, because they’re moving at a pace

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T HE F UT UR E OF WORK

What it means to be a recruiter

Recruitment is really at the front line in terms of what happens with the economy: I liken it to the canary in the coal mine.

‘Someone who is integral to the operations of a good business,’ is Nick’s take on what it means to be a recruiter. ‘During the last decade, the business focus has very much been on outsourcing any non-core operations. This is where a good recruiter would come in and partner with them and manage this aspect. And for me, a good recruiter is someone who is a good partner with the business, someone the business relies on to provide the staff it needs – and not just in terms of good workers, but also in managing the day-to-day issues that arise, as well as the long-term projection issues such as fluctuations in staffing requirements. A good recruiter knows when the business is going to ramp up and when it’s going to ramp down.’

The Hon Nick Wakeling MP, Shadow Minister for Education

Tomorrow’s recruiter and the future of the profession

to achieve the task for today. But this is what makes it exciting: they’re stripping away some of the questions and concerns that might take an employment consultant in our sector longer to work through, but a recruiter doesn’t have the time and therefore if they’re good at what they do, they make really sound judgments about what to leave behind and what to follow through. ‘It’s a delicate balance and if they get it right – and plenty do – they’ll probably do really well because people really value the work they do, their ability to quickly read situations and read people and make connections, and at the same time care for the other people involved – the employer and the candidate. I reflect on the marketers in our sector who are regarded as either too aloof/too arrogant, or as dynamic – and this dynamism works well in the workplace as it lifts other people.’

Recruiter skills In terms of the skills today’s recruiter needs, Nick points out that while he hasn’t worked directly with the profession for a decade, industries fundamentally haven’t changed – even in this era of technology and social media. ‘They still want workers who can fulfil the needs of their business. They need employees who are job-ready, with the requisite skills. It’s important that a good recruiter has the ability to assess the applicant’s skills to ensure they match the client’s needs, because clients will soon let you know if the workers aren’t meeting their needs and may well move to a competitor.’

And what will the recruiter of the future look like? ‘The skills today’s recruiter possesses are the skills that will enhance their capability tomorrow,’ Rick says. ‘Our sector is moving to a much more person-centred approach, whereas for a long time the intermediary has appeared to be the most important as they join the dots. With the candidate now at the centre, the intermediary needs the ability to be more person-focused.’ Rick points out that when employers say they’re looking for a set of skills, they are in fact looking for someone who will fit in – and this applies whether that hire is for a two-month tenure or an ongoing long-term tenure. ‘So the recruiter becomes vitally important in being able to make this scan for the employer. This goes back to the recruiter today being the recruiter tomorrow: their skills extend beyond just reading the information and joining the dots of what jobs are out there, to engaging with the person in a more holistic way.’ Looking at what’s ahead for the profession, Rick predicts soft skills – such as empathy – will become even more important. ‘Digitalisation, individualisation1, and marketisation2 will form a web, and marketisation will mean that to obtain business, the recruitment organisation will have to understand the individual – and that’s both the candidate and the client. They’ll also have to understand this relationship at a deeper level than operates today. ‘We’re already well and truly in a market model, and this will only increase,’ Rick continues. ‘Governments over the next five years will gradually move out of the contracting role and increasingly into oversight, meaning

Rick Kane, CEO, Disability Employment Australia

Continued page 16

THE FUTUR E O F WO R K Continued from page 15

Our insane optimism! Ross Clennett FRCSA comments Describe the industry personality and what makes it different? Entrepreneurial, optimistic, passionate, fun, committed. What makes it different? No two jobs to fill are ever the same no matter how similar they may look on the surface. The skill and challenge of understanding the changing circumstances of both our clients and candidates and then being able to shape the process to deliver a great result does not have an equivalent in other professions.

What makes recruiters different?

the market will grow because as we know, governments basically hold a percentage of the business that operates every day, but that business isn’t an open market.’ Both the aged care and NDIS sectors are already market models, sourcing staff through the recruitment sector. Rick notes that the NDIS alone is expected to create between 40,000 and 70,000 jobs in the next three years. ‘The bottom line is that skills need to be identified and enhanced and the proactive recruiters are already thinking about this,’ says Rick. ‘When you enter a new space, do you understand it? The only way to make the relationship connections is with this understanding. From there, you need front line staff with the ability to show empathy. ‘It’s about doing business in a world where individualisation, marketisation and digitalisation are interconnected as a web.’ With the advent of technology, businesses are more willing to look further afield for the delivery of product, not just interstate but also internationally. ‘Fifteen years ago businesses would have looked at a recruitment company to meet, for example, their call centre needs,’ Nick says. ‘Today – whether from a cost perspective or an efficiency perspective – businesses are more willing to look at that function being performed overseas. While opportunities

exist for an internationally focused recruiter when companies look overseas, there’s obviously a threat for locally based recruiters.’ The other challenge for the profession, Nick adds, is to identify the emerging industries. ‘The closure of the automotive manufacturing sector here has provided a whole range of alternative opportunities, something I was dealing with as a former minister in the state government. So while it’s important to serve the client of today, recruiters should be asking ‘Where is our client of the future, and where are our clients transitioning to? ‘It’s ensuring you adapt to the future skills needs and employment needs of the client so you’re there for the long-term as opposed to moving on when the company’s status changes.’ 1 I ndividualisation is defined as the consequence of social changes in late modernity, in which individuals are increasingly required to construct their own lives in recent sociology (Ulrich Beck and Elisabeth Beck-Gernsheim, Zygmunt Bauman). 2 M arketisation is defined as a restructuring process that enables government bodies to operate as market-oriented firms by changing the legal environment in which they operate. Rolph van der Hoeven, György Sziráczki. Lessons from Privatization. (1997). International Labour Organization. ISBN 92-2-109452-9 p.101.

Nick Wakeling and Rick Kane were interviewed for the RCSA Journal by Rosemary Ogilvie.

Our insane optimism that has us believe that we can fill any job or place any candidate no matter the circumstances.

What skills does today’s recruiter have and what does being a recruiter mean? Drive, networking, influencing, negotiating, judgement, learning ability/coachability. What does it mean? It means having the most important job! What company can thrive without suitable employees being recruited? We solve the problem that most companies are ineffective at solving for themselves in a timely and cost-effective manner: capability acquisition.

What does the recruiter of the future look like and where is the industry headed? Much the same as today but she/he will have a greater capability to use technology for the assessment of both job requirements and candidate competencies. I am very optimistic about the future for our industry. In 2026 I believe our industry will be thriving and even more important to the healthy and effective functioning of the nation’s economy than it is today (and I plan to be just as involved and passionate about the industry as I am now!) Ross Clennett, recruitment coach, www.rossclennett.com

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Complex, convoluted and challenging and the human in the middle Jonathan Rice comments

luid, dynamic, exhilarating, maddening, life-changing (you didn’t say no double barrelled words!) What makes it different? There are no barriers to entry but at the same time it requires a rare mixture of personality traits and experiences to be truly successful at recruitment. Everyone thinks they can do it, without ever fully understanding how complex, convoluted and challenging it can be to bring two moving targets together in a consultative and successful way. It is also probably the most misunderstood industry out there. On the agency side it is a sales job, with recruiters working on behalf of clients with the focus being on earning commission. Yet the emotiveness of the recruitment process and the recruiter’s integral part in it, plus the fact everyone has experienced being a candidate at one point or other, means most people think recruitment is actually about the candidate and judge recruiter behaviour on this activity instead.

What makes recruiters different?

Everyone thinks they can do it, without ever fully understanding how complex, convoluted and challenging it can be to bring two moving targets together in a consultative and successful way.

There are no formal qualifications for recruitment. Some firms used to require a university degree but this is phasing away somewhat in preference for proven B2B sales experience, not always for the better for the industry’s reputation either. So often, it is the recruiter’s personality, character, and emotional intelligence more than qualifications that dictates the success of their careers. Recruiters are also often more agile and adaptable than other professionals. A recruitment career will often be a lot more varied, unstructured and unpredictable than in other professions and this is often manifested in the recruiter’s natural ability to roll with the punches, handle highs and lows, and develop tenacity to cope.

What skills does today’s recruiter have and what does it mean to be a recruiter? At a surface level you can look at a recruiter and assess their level of skill in standard recruitment process. The ability to consult with a client, take a job brief, conduct behavioural interviews and negotiate and influence at offer stage. However, in recent

years, more skills have become expected of the top recruiters. Greater commercial nous and specialist industry insight, an ability to network and generate business opportunities, a creative flair for marketing, and an ability to analyse and interpret data are now equally important skills. The underlying behaviours that sit beneath these surface level skills are the same as ever though: tenacity, competitiveness, drive, work ethic, ambition, a high EQ and a fragile ego are the norm, to varying degrees. Being a recruiter means immersing yourself into a world of extreme and erratic human behaviour with an unfaltering mission to bring order and control to the process. It means providing your clients with access to levels of talent that would otherwise lie outside their reach, and the by-product being that, if the recruiters do their jobs properly, they are also positively changing the careers, and even lives, of the candidates they place. Ultimately, recruiters enable companies to grow and succeed.

What does the recruiter of the future look like? And where is the industry headed? A marketer, a data analyst, a specialist knowledge expert, a networker all combined into one package: A connecter. In 10 years’ time more recruiters will have ditched their suits and compendiums (if not already) and moved out of the high-rise skyscrapers to work remotely, flexibly and across broader geographies. They will become even more specialised in their sector but will have networks and connections spread further and wider, with the ability to connect clients across a wider area with new types of talent. The larger recruitment businesses will still retain core groups of recruiters within their organisations but will hire in specialised recruiters for particular projects as and when they occur. In 10 years’ time the development of artificial intelligence will continue to advance, but the ‘human’ in the middle, connecting clients and candidates, will still be essential. Jonathan Rice, Rice Consulting, www.rice.co.nz

THE FUTUR E O F WO R K

An essential part of the corporate ecosystem Rob Davidson APRCSA comments

Describe the recruitment industry personality and what makes it different? In five words: we find jobs for humans. I believe that very few practitioners within this profession actually treat it as one. If you consider the way a genuine professional operates, with formal qualifications, compulsory membership of a governing body, compulsory continuing education and hopefully, a sense of vocation and purpose, very few members of the recruitment industry operate as though they are in a genuine profession. Those who do will have long-lasting careers. Those for whom recruitment is a transactional way to make good money until they can think of something else to do the future, is not so assured. Many at this end of the spectrum will be replaced by digital platforms in years to come.

What makes recruiters different from other professionals? There are few other professions which place such a high emphasis on the sales

aspect of their role. Unfortunately, this often overshadows the more technical aspects of what is really a complex job. Too often recruitment is reduced to a sales function and when this happens the recruiter is not operating as a professional. A genuine recruitment consultant masters both the consulting and the sales components of the role.

What skills does today’s recruiter have and what does it mean to be a recruiter? We are part career counsellors and coaches, part sales people, part business advisers and strategist. It’s a complex mix of skills to find in one person. At its most basic level, recruiters find talent for organisations and jobs for people. In reality, the answer is much more profound. Without the people they need to meet their strategic objectives, many organisations would fail. Without work, most people’s lives would fall apart. When done well, recruiters are an essential part of the corporate ecosystem and an important advisor for individuals seeking work and all that that entails.

What does the recruiter of the future look like? And where is the industry headed? They will be part management consultant, part HR consultant and part career coach. The recruitment industry is under threat and undervalued, but it needn’t be so. In 10 years’ time the traditional recruitment industry will be smaller, more effective and even more essential than it is today. Many of the transactional recruiters will have been replaced by platforms. Those who remain will be genuine professionals who act as trusted advisors to clients and candidates alike. Rob Davidson is the Founder and Director of Growth of Davidson.

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T HE F UT UR E OF WORK

Looking in the mirror with … Robert Blanche FRCSA (Life), Bayside Group

‘I define the recruitment industry as a facilitator. It enables individuals to reach their potential and businesses to achieve their goals. Our external world is divided into employers, who we partner in solving complex problems, and candidates, for whom we act as a guide through what is often a diverse and dynamic

career path. Those working within recruitment face ongoing challenges as a result of shifting markets, disruptive technologies and the changing needs and expectations of both candidates and clients. Ultimately, it’s about facilitating growth and development, which can be incredibly rewarding.’

Erin Devlin MRCSA, Managing Director, people2people Recruitment ‘The global recruitment industry contributes over $400 billion each year and employs millions of people around the world. The industry’s purpose is to attract and retain top quality talent and to successfully and sustainably grow businesses and candidate careers. With a raft of online open databases, finding talent is easy. It’s engaging with candidates in a professional and skilled manner, and bringing them to the hiring table that is hard, and this is where recruitment companies really add value. The more avenues available to candidates in regards to applying for jobs, the more we are seeing candidates sit tight and wait for approaches from recruiters for quality jobs. ‘The recruitment industry, for those external to it, can be a vehicle for career growth and business acceleration, particularly for those with clear career direction. Working with a skilled recruiter can open up many more opportunities than on the open market. For employers, partnering with the right recruitment company can mean having access to the very best exclusive talent available. The recruitment industry has merged with marketing even more so in recent years. The rise of social media, video job adverts, big data and gamification, are just a few of the trends that have changed the face of recruitment in the past ten years. The recruitment industry is a highly innovative, proactive industry, where quality and speed go hand in hand. Solving client problems and adding value inside and outside the recruitment process are also characteristic of our industry. In the future, the quality operators in our industry will continue to thrive for one simple fact –people like to engage with people. ‘

Andrew Sullivan FRCSA, Hender Consulting ‘The recruitment industry is a dynamic and rewarding industry for so many people who work within it. In my experience, it is one of the only industries in which you can work across a variety of industries, bodies, and sectors and add value as a trusted advisor. There have been significant changes and ‘disruption’ to the recruitment industry over the past 10 years, given the introduction of new technologies. Core outcomes, however, such as personalised service, client interaction and expected candidate placements and results still remain integral to our service offering and existence! To the external world, the industry is a thorough, considered and highly-tuned approach to sourcing the very best candidates for your workplace. It’s an industry that has adapted to the constant demands and market challenges and still adds value. Employers are often time-poor and some lack the HR resources to assist with their critical recruitment needs, creating an opportunity for recruitment firms to partner with employers as their HR/recruitment service provider.’

Phil Isard FRCSA, Managing Director, Consultive and Matt Sampson MRCSA, Managing Director, Aspect ‘The mentality in the industry is shifting from competing for talent (active and passive candidates), to online engagement. It is now about building communities within recruiter databases and social media, creating focused talent pools and campaigns e.g. project Phil Isard FRCSA management campaigns driven either from their own website and pushed out to social media or driven by a blog or LinkedIn/FB group. All with the aim of marketing for and creating top-ofmind awareness, to being there on the day they look to move, or even provide the seed that influences them to explore moving (like the old sales saying ‘in their space, face, case, place’). At the same time, talent are shifting in their thinking: ‘It’s my career, not my tax return. I want to know Matt Sampson MRCSA my career is in safe hands, someone I can trust’. The competition for talent from job boards is extraordinarily competitive, which may be the reason for some to behave a certain way, e.g. the release of a candidate’s resume without their consent (possibly not even spoken to at all) - breaches RCSA Code of Professional Conduct, and the Privacy Act. Rising above this allows recruiters to compete in a new sphere, find great talent for their clients, and great career opportunities for talent, along with the service level we all aspire to. So, social media has provided access to talent on a grand scale with ‘everyone a candidate’, allowing all recruiters the ability to start engagement early, build trust, credibility and rapport. As a wise man said years ago: ‘He who owns the candidate market, owns the market.’

NEW ZE A LA N D UPDAT E

Crystal ball gazing: where is the NZ recruitment industry heading?

John Harland FRCSA, ERG Workforce Ltd.

he market continues to show that skill shortages in New Zealand will be an on-going problem despite historically high immigration levels and accordingly, I have not seen any changes in trends in the market from my last comments in the last journal. Most recruiters appear to be doing well and labour hire due to the skill shortages is also solid. However, I was recently asked where I see the recruitment industry in 10 years’ time and this question caused me to reflect on current trends and the ‘future of work’ as it impacts on what we do as recruiters. Firstly, much has been said about the global statistic indicating that 40 per cent of the workforce does not have a permanent contract with a specific employer. They are classified as contractors. If 40 per cent are contractors then obviously 60 per cent can be regarded as permanent employees. But the definition of permanence is rapidly changing. Therefore, rather than using the term ‘permanent employees’ let’s categorise those 60 per cent as people with a permanent employment contract with a specific employer. There are a number of issues that will impact these statistics in the next 10 years. 1. The ageing workforce. Life expectancy in New Zealand and Australia is around 82 years and increasing. With people living longer, baby boomers are remaining in the workforce to a much older age. No longer is retirement at age 60-65 a common occurrence. In New Zealand where there is a high proportion of SMEs (perhaps as high as 90 per cent of all businesses)

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many of these businesses are owned and operated by baby boomers who have no succession plan for their business. Accordingly, if they are unable to sell their business when deciding to retire the result will be loss of jobs. Sure many of these jobs will be recreated in a different place and in a different form but further pressure on permanency of employment will result. 2. Imbalanced demographics. There is a large movement of labour out of the developing and less developed countries and into the emerging and more developed countries as those unable to find jobs in their own country migrate to more prosperous economies. This trend is also placing pressure on the prospects of youth. 3. Increasing new entrants. The number of new entrants to the workforce is expanding at an alarming rate in emerging and developing economies while growth in advanced economies is relatively flat. The 2015 World Employment and Social Outlook Report highlights the scale of the problem. They forecast that 212 million people will be unemployed by 2019 and 280 million jobs will need to be created to restore employment for those who had lost their jobs since the 2009 GFC as well as for new market entrants. It is widely considered that failure to create new jobs for these people will potentially lead to damaging economic, social and political implications. In May 2016, there were only 33,000 new jobs created in the US which is alarmingly low and cast a shadow over a recovering US economy. 4. Need for adaptability. The GFC has shown that some types of jobs can be permanently destroyed by economic shock. The decline in medium skilled and routine jobs globally meant that those at the middle level of employment are facing a challenge in ensuring they are not squeezed out by the lower skilled workers who are able and willing to accept the 3D (dirty, difficult and dangerous) jobs than the higher skilled workers. 5. Technical skills. Technology is massively changing the face of the global jobs

market. It could be argued that in industrialised countries every company is now a technology company. Why? Because according to research, only 25 per cent of software engineers actually work in software companies. The labour market is rapidly splitting in two: one for high-skilled workers and one for everyone else. 6. Changing viewpoints. There are also significant changes in the way the new generations look at employment. As highlighted above there is a global movement to ‘contracting’ as full time jobs are increasingly replaced by more flexible alternatives. Job seekers are more active than ever before with younger, more educated workers appearing to be the most active. Interestingly 65 per cent of candidates who have secured a new job return to the internet within 91 days to look for another job. Generation X (those largely in their 30s and 40s) are generally more ethnically diverse and better educated than Boomers with more than 60 per cent attending tertiary level education. Gen Xers are individualistic, resourceful and self-sufficient coming from an era of two income families rising divorce rates and weak economies. In the workplace, they value freedom and responsibility. Many display a casual disdain for authority and structured work hours. They are technologically adept reflecting a shift from a manufacturing to a service economy. They grew up with computers and technology is woven into their lives. They are flexible, having lived through the tough economic times of the 80s when they saw their workaholic parents lose their hard earned jobs. Hence they are less committed to one employer and more willing to change jobs than previous generations. Their mindset is ‘work to live rather than live to work’. Flexible working arrangements and the arrival of the ‘Millenials’ (18-38 year olds) places another contingency for the future of work. Tech–savvy Millennials are true digital natives living in the modern world of digitalisation. They are plugged-in 24 hours a day, seven days a week. They have an

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intuitive sense in understanding technology because of the environment in which they have grown up in and they bring a much more creative and innovative approach to solving problems than any previous generation. Millennials are willing to trade higher pay for flexible schedules and a better work/life balance.

What does all this mean to the ‘future of work’ and to recruitment in particular? I think it will have a massive impact on the way we do business – but in many ways, if we adapt to the new environment, it will secure our future. I think the future for the Industry is bright if we adapt and evolve. Taking into account the trends identified above, I think that the move to ‘contracting’ is now embedded in our future workforce and over the next 10 years we can expect the percentage of contractors to increase to 60 per cent. Many of these people will be the entrepreneurial Millenials creating their own futures and careers in yet-to-bethought-of businesses and roles. Businesses will have to change their employment expectations with probably only 5-10 per cent of their workforce being on traditional permanent employment contracts and where there is an expectation of staying with the same company for 10 years or more. Largely, this group will comprise business owners and middle to upper management, and may include a small percentage of line workers particularly in trades or the manufacturing sector where technology has not yet or will not affect production. It will not include CEOs or the very senior managers who I think will stay with the same employer for no more than 5-8 years. These people are the strategic leaders who will restructure, re-enliven, and re-direct large businesses then move on to new challenges. Twenty per cent of the workforce will be on traditional contracts with one employer but will have short term expectations of their career with that employer of between 2-5 years. These are the Gen Xers and Gen Ys committed to their own career development and not aligned to the values of the company they are working for. They are doing a specific job and learning or honing their skills before moving on. There will be five per cent who I will describe as ‘floaters’. These are people with no vision or expectation for future career development and highly susceptible to retrenchment and periods of unemployment.

They float through one job to the next with no ability to determine their own direction. Their ‘career’ with one employer will likely be between 2-10 years. The remaining five per cent will be self-employed tradespeople whose skills cannot be replaced by technology and they will largely be working for themselves in small businesses.

What this means What I think this means for the recruitment industry is that recruiters will need to evolve into ‘Talent Managers’, managing large communities of talent in a similar way to how sports or actors managers’ manage their clients. Traditional recruitment will continue to exist to cater for the small businesses who will need workers and do not have the capacity to find the people with the right skills themselves, and do not have the brand presence to attract applicants, but this will be insufficient for recruiters to be financially viable. The advent of social media and whatever replaces this phenomenon will be the vehicle by which talent communities are compiled and maintained and regular communication and contact with each individual within a community will be essential due to the mobility of the individuals in that community. Recruiters will be the conduit between the individual and the employer and will effectively manage the careers of their community. They will know the specific talent within their community and will align this talent with the requirements of their employer clients. Why I think recruiters have the opportunity to create a bright future is that technology will not be able to manage the expectations of the people and human interaction will remain an overarching requirement. Technology will be necessary to maintain contact and manage the communications within a community but can never replace the human element. This is highlighted by the fact that currently salespeople are at the top of the short skills list. For large businesses, the impact of the move to contracting is significant. Very few if any will have the capacity to effectively manage talent communities due to the fact that they have little control over what and when vacancies occur. In addition, very few have the brand attraction for people to wait on a list for an opportunity to arrive. When they have a vacancy it is likely they will not have a person readily available with the right skills to immediately fill a role and will not have access to the general skills market

where it is more likely they would find the right candidate. Directly approaching a person with skills already employed in another business has some major ethical as well as logistical hurdles to overcome. A ‘Talent Manager’ will have a greater reach and will not have the restrictions which a business would have when conducting search activity when the talent required is likely to exist in a competitor’s business.

LinkedIn professed to ultimately replace the recruitment industry, however I think they represent proof that technology can create a forum but cannot replace the need for constant management and communication with its participants. Its sheer size has become difficult to manage and has been plagued with problems which discouraged its use to connect individuals with businesses. It is an interesting aside that Microsoft has bought the financially struggling business not for the service it offers but for the data it has accumulated. I am sure that Microsoft has no intention of replacing the recruitment industry.

UPDATE: CANTERBURY Ian McPherson FRCSA, RCSA Director, comments: The Canterbury rebuild continues to be a big factor in the south island market with high labour market participation and low unemployment figures. Job vacancies in the construction industry in Canterbury are declining from recent highs, which is consistent with the rebuild levelling out. The difficulty faced by businesses in sourcing unskilled workers is easing, while skilled workers remain hard to find. Currently, migrants are the main source of increased labour with the Canterbury Labour Hire accreditation that Immigration NZ put in place in late 2015 yet to affect the push to bring in migrant workers. There are still strong indications that the Labour Hire accreditation could be extended nationally by Immigration NZ. Generally, the local labour supply is tight and is expected to remain so for the next three years as work continues on the rebuild.

SEPTEMBER 2016

THE FUTUR E O F WO R K

The recruitment industry in a decade – what does it look like? SEEK asked four key players in the Australian recruitment market to gaze into their crystal balls and predict what’s ahead for recruitment firms over the next decade.

The role of tech All our interviewees agreed that developments in technology, and the growing sophistication of people data, is making it easier for companies to recruit to general roles, without the need for recruiters. ‘Companies now see limited value in recruitment firms for generalist roles, because “tools of the trade”, like SEEK, are available,’ says Dean Davidson, Hudson’s Executive General Manger for Australia and New Zealand. ‘But clients are less effective at filling specialist role families, in areas such as technology, project services and development applications. It’s here where recruiters can continue to add value into the future.’ ‘The more a job requires unique capabilities, the harder they are to define and identify,’ says Florian Dehne, Head of Strategy at SEEK Employment. ‘In the future, the proportion of roles in the workforce requiring unique capabilities will further increase, and recruiters play a role in unpicking the nuanced information used in these situations.’

Tech and the candidate Lindsey Ruth, the Adecco Group’s Head of Marketing for Australia and New Zealand, believes that the next wave of tech will involve applications that change the way candidates look for a job, and ultimately change the candidate experience for the positive. ‘The recruitment industry is currently shifting from being more client-focused to being heavily candidate-focused, due to market conditions, and the fact that candidates have many employment options. Now, our challenge is to attract quality candidates, whereas five years ago, we were much more focused on attracting new clients.’

Science and art While companies may find it increasingly easy to source their own recruitment data, there will always be a place for respected opinions on candidates. ‘Companies make a hiring decision based on “science” – skills and experience – and “art” – behaviours, traits, interpersonal skills, ‘ says David Jones, Senior Managing Director

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at Robert Half. ‘As yet, the “art” hasn’t been digitised.’ ‘The more specific you get, the smaller the candidate pool becomes,’ says Dean. ‘This is where the value of recruitment firms come in, as this is what clients are prepared to invest and pay for.’

Changing skill sets The speed at which skill sets are changing in any job involving technology will always present an opportunity for the savvy recruiter. ‘We see a continued growth of skill shortages in areas that involve creativity and problem solving, and skills involving bringing people together,’ says Florian. ‘While high level people data will make it easier to identify “highly plausible” candidates, recruiters will continue to play a role in creating the connection for this kind of placement.’

A candidate-centred approach With quality candidates for specialist roles being in high demand into the future, recruiters – and employers – will have to adjust to the idea that candidates will be much more in the driving seat. With buzzwords like “cultural fit”, “soft skills”, and “meta-qualifications”, the pressure will be on companies to prove they’re a good fit for the candidate, rather than the other way around. ‘A quality candidate is all about the right fit,’ says Lindsey. ‘Someone who can execute in the role, but will approach the role with a degree of “passion” – not a word you would have seen in job ads until recently – and “independence” – they want to be like an entrepreneur within a company.’

What recruiters won’t do A current trend that Dean sees extending into the future is that of clients placing a high value on recruiters being very clear about what they’re NOT doing. ‘The key is giving clients advice on cost and time-effective ways of filling generalist roles, and getting clarity on what they see as their niche specialist roles. Therefore, agencies need to align their resources with businesses’ specialist roles.’

T HE F UT UR E OF WORK

Repositioning what recruiters do One way that Robert Half is ensuring its continued relevance into the future is by positioning itself in the space traditionally occupied by the global consulting groups. ‘For example, a company involved in a transformation project would typically engage a consulting company to provide resources,’ says David. ‘However, unlike the consulting groups, the talent that Robert Half can provide is not restricted to our permanent employee group alone. We have access to a wider range of consultants and candidates known to us in the market, representing a significant advantage to our clients.’ Importantly, recruiters have to ask themselves if they intend swimming ‘upstream’ or ‘downstream’ in their value

proposition. ‘Today, we are able to provide consulting resources with oversight and a level of quality assurance that offers clients an alternative to the established consulting firms, whether they be global or regionalised.’

This article originally published on SEEK Insights & Resources, where you can stay up to date with the latest in employment trends, candidate behaviour and talent acquisition news. Authored by industry experts, tailored for you. insightsresources.seek.com.au insightsresources.seek.co.nz

The future’s bright… ‘In my experience, recruiters are good at reinventing themselves,’ says Florian. ‘They have demonstrated in the past that they are flexible, and have an ability to adapt their business models when the external environment changes. For those who operate with that nous and attitude, the future clearly is bright!’

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SEPTEMBER 2016

INTERNATI O NA L

Acquisition trends, worker engagement, the bench model – it’s all in the data How many staffing organisations are making acquisitions? What are staffing organisations doing to find out if their workers are engaged? These are just two of the questions that Staffing Industry Analysts looked into this year for its annual survey of staffing firms. The surveys include firms in North America, Europe and, of course Australia and New Zealand. This year’s survey included 59 Australian and New Zealand staffing firms. John Nurthen reports on some of the early findings the data has revealed.

Mergers & acquisitions accelerating When it comes to mergers and acquisitions (M&As), staffing firms are very active. The survey found that almost a quarter (23 per cent) of Australian and New Zealand staffing firms either closed an acquisition this year or last year (or plan to close an acquisition later this year). This is up slightly from a similar survey question in 2014 when 21 per cent of firms said they had closed or plan to close an acquisition. The level of activity in Australia and New Zealand during 2015 and 2016 was higher than in North America, where 19 per cent of firms said they either closed or planned to close an acquisition this year or last year. Of course, M&A has significantly impacted the structure of the Australian staffing market over the past 18 months with a shake up among market leaders – the most notable being Programmed’s acquisition of the Skilled Group and Recruit’s acquisition of Chandler

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Macleod and Peoplebank. It seems that more consolidation of the market is quite likely. Our survey of Australian and New Zealand firms also asked what type of staffing firms a company would be interested in acquiring if they did plan to make acquisitions over the next two years? For Australian and New Zealand companies, healthcare staffing firms and recruitment process outsourcing firms were considered the top acquisition targets. Fifteen percent of surveyed firms said they were interested in acquiring a healthcare staffing provider, and another 15 per cent said they were interested in buying a recruitment process outsourcing provider. Overall, the top five acquisition targets by Australian and New Zealand firms included: • Healthcare staffing firm: 15 per cent • Recruitment process outsourcing firm: 15 per cent • Engineering/design staffing firm: 12 per cent • Office/clerical staffing firm: 12 per cent • Retained search firm: nine per cent. Interestingly, firms in North America had different acquisition targets, although healthcare remained a top acquisition target in the US as well. The North American survey found the top five acquisition targets were: • IT staffing firm: 39 per cent • Healthcare staffing firm: 20 per cent • Industrial/logistics staffing firm: 10 per cent • Clinical/scientific staffing firm: six per cent • Office/clerical staffing firm, five per cent.

Employee satisfaction unmonitored The survey also found 45 per cent of staffing firms don’t formally survey their internal staff to measure worker satisfaction. In addition, 39 per cent did not formally survey external staff. It seems obvious, employees who are happy and enthusiastic will perform better than employees who drag themselves to

John Nurthen

work and live in dread of Mondays. US-based Gallup opinion polls claims companies with highly engaged workforces outperform their peers by 147 per cent in earnings per share*. When Staffing Industry Analysts compiles its annual list of the fastest-growing staffing firms in North America, culture is commonly cited as a key reason for fueling growth. However, to know whether employees are satisfied and engaged, it must be measured.

Bench model gaining traction In addition, the survey found 32 per cent of Australian and New Zealand staffing firms use the “bench model,” and 56 per cent expect to use it within the next 10 years. A bench model involves keeping workers on payroll even when they are not on assignment. Such levels of use of the bench model could be a symptom of a skilled labor shortage. The survey also found that for 16 per cent of firms, more than a tenth of their workforce was on the bench model today. We are still combing through the survey data and plan to release more findings soon. John Nurthen is executive director, global research, for Staffing Industry Analysts, the global advisor on contingent work. For more information, visit www.staffingindustry.com. *www.gallup.com/services/190118/engagedworkplace.aspx?g_source=position1&g_ medium=related&g_campaign=tiles

www.elmotalent.com.au

INTEGRATED TALENT MANAGEMENT SOFTWARE

BUSINE S S M A N AGE M EN T

Diversity, inclusion An inclusive workplace is one where all employees are encouraged to contribute and all contributions are valued. But, to create this, we first need to understand why we should embrace an inclusive culture and adapt our practices to make it happen. Kay Clancy, Executive of Corporate Services at Kinetic Super looks at diversity and recruitment’s role in achieving a balanced outcome.

Kay Clancy and the Kinetic Super Team. Top row: Chau Ngo - Member Education & Advice Consultant, George Tannourji Head of Operations & Administration, Kay Clancy - Executive Officer Corporate Services, Sujana Hazari - Member Education & Advice Consultant and Douglas Clements - Investment Operations Specialist. Bottom row: Michael Schultz - Employer Administration Advisor, Chong-Lan Ku - Research, Data & Insight Specialist, John De Melo - Customer Relationship Associate and Lilly Nicholls - Business Analyst Intern.

hen embraced by all employees, from the most senior to the most junior, an inclusive culture can generate creative thinking and leaps in innovation. It enables a thriving workplace that is able to attract and retain top talent1. Making a cultural change towards inclusiveness requires a concerted effort. And the recruitment industry is well positioned to drive these initiatives. Together, we can achieve outstanding results through diversity initiatives that engage our workforces, enable crossfunctional teams and break down silos.

A changing definition Over time, our definition of diversity has changed. When we talked about diversity in the workplace in days gone by, we meant having employees from a wide range of backgrounds – race, gender, religious beliefs,

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sexual orientation, age, and so on. We hired people representing each of these groups, sometimes to meet quotas or to appease stakeholder groups. But, we made little or no changes to the way we ran our organisation. We essentially had a diverse workforce without a diverse workplace. We had the diversity without the inclusion or the infusion. Now is the time to re-examine our diversity policies and ask what diversity means in 2016. Today, we’ve moved on from the simplistic view of affirming diversity. We’ve gained a greater understanding of why diversity in the workplace matters. We should not be embracing diversity because we have to, or even because it’s the morally right thing to do. We should be embracing diversity because it’s the best thing to do.

BUS I N ES S M A N AGEMENT

and infusion Driving profits and innovation There is considerable research proving the link between diversity, innovation and profitability. In simple terms, a diverse workforce produces distinct thought and practice, leading to innovation, which drives profitability. A diverse workforce is: • more successful at attracting and retaining talent • able to engage with its customers and • better at serving those customers.

The role of recruitment in diversity Recruiters are at the front line for diversity. They have the ability to design jobs that meet a business need and encourage applications from a wide and varied pool. But how can we encourage applications from a diverse labour force? For recruitment professionals, this means first understanding why diversity matters and why inclusion makes sense at both an economic and social level. Then, we can infuse this understanding into our hiring practices and into our workplace design. We can start with job descriptions that not only look at the technical competencies required for the role but also core competencies. We can also establish an interview process that elicits the information needed to build a diverse workforce. Interviews are a key opportunity to draw out the unique talents of individuals and to assess how a person will add richness to their workplace. Often, employees, particularly young talent, judge companies on their willingness to create an inclusive culture. They are interviewing the company as much as we’re interviewing them. So, we must be able to clearly articulate how and why we’re inclusive.

Inclusive leaders As advocates for diversity, inclusive leaders champion initiatives that make inclusion an organisational priority. These leaders recognise that change takes place over time and are willing to persevere in their ambitions to harness the entire spectrum of talents and capabilities.

Thriving workplaces are full of people that are satisfied in their jobs. Engaged employees work harder and stay longer2. If we know our people – their talents, aspirations, pressures and interests – we can harness those attributes and help them to become great.

Crowdsourcing to achieve diversity in thinking Scientists have been experimenting with crowdsourcing to solve challenging problems. They have found that people with no background in the specific field often produce the best outcome. This is because they bring broader and less subject-specific skills, such as reasoning and collaboration, to a problem. In the workplace, a team of diverse thinkers can broaden a company’s ability to tackle problems and innovate products or services. It can also encourage greater depth of discussion, lively debate and a fun atmosphere. At Kinetic Super, we are investing in innovation by bringing together diverse teams in what we call the ‘Ideas Hack’. Team members from all departments can join an ideas hack session where the unique combination of cross-functional skills and talents is used to brainstorm, spur insight and explore new ideas for the business. This is why we hire people with and without superannuation experience – we believe we can learn from ideas in other industries and bring new thinking to the table.

We should not be embracing diversity because we have to, or even because it’s the morally right thing to do. We should be embracing diversity because it’s the best thing to do.

The new frontier Successfully moving forward will require all of us to think and act differently. Today, it isn’t enough to promote a ‘tolerant environment’ because these tag lines represent old-school diversity policies. The new frontier is an inclusive culture that cultivates diversity and infuses it into organisational policies for hiring, training and promoting its employees. And let’s face it, a diverse workforce delivers a more creative and colourful environment for any organisation to operate within. 1 http://images.forbes.com/forbesinsights/StudyPDFs/ Innovation_Through_Diversity.pdf 2 https://www.aim.com.au/sites/default/files/downloads/AIMResearch-Engaged-Employees.pdf or https://www.hays.com. au/blogs/HAYS_1308515 SEPTEMBER 2016

BUSINE S S M A N AGE M EN T

Don’t wait for the transition! Andrew Wood comments: RCSA CEO, Charles Cameron, has suggested that for this issue of the RCSA Journal, I might like to write on the topic, ‘Ways to protect your investment during transition’. There’s a reason for that.

ecently, Charles asked me to speak with a certain industry magazine that shall remain nameless and brief one of its journalists on ‘problem issues’ that are frequently encountered with employment services terms of business. From my perspective, the journalist who sought the briefing turned out not to be interested in anything much other than getting some salacious quotes; and I’m afraid that my ‘frank and colourful’ lay explanations met her objective rather too well! In a series of articles, I was portrayed as some kind of industry antagonist which caused some members to object that ‘the RCSA Lawyer’ shouldn’t be saying such things! This time I get to write the article that should have been written; and to do it on my own terms. There are only two messages – and they are both related.

The #1 message has got to be - if you want to protect your investment, don’t wait for the Transition.

Andrew Wood Hon FRCSA (Life)

If you wait until the Transition is underway, it’s already too late. Too often, I see cases where agencies, faced with the devastating market reality of a supplier transition, have nothing to fall back on apart from a misplaced hope that the RCSA Code is there to protect their investment for them. It isn’t! The RCSA Code neither compels nor prohibits a transition. The Code balances and holds in creative tension two apparently competing principles. They’re articulated in the opening stanzas of the Code’s Transition Schedule. The first requires that members acknowledge the market reality that clients might want to choose another services supplier. It says quite simply: Members should be aware and acknowledge that in an open and competitive market place, circumstances may arise when a Client wishes to change Employment Service suppliers. That’s the truth of it. We all know transitions happen. We might have a personal view about whether it’s a good idea to transition and whether it’s really in the interests of the client to seek a transition. And while we all recognise that it’s the client’s decision to make, we ought also to recognise that it’s a decision which may affect

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many interest holders – of whom some are more vulnerable than others. There is therefore no virtue in denying the commercial reality of transitions; or in remaining silent and never speaking of them. That’s why the Code deals with them. So, if we are going to speak of them, what might we say? The second stanza of the RCSA Transition Schedule sets the framework. It says: Members should also be aware and acknowledge that Members invest a significant amount of work, money, time and intellectual resources in establishing relationships with Clients, developing critical understandings of Clients’ and Workseekers’ needs, training Workseekers in systems of work for Clients, and inducting Workseekers in preparation to undertake work for Clients’. Those investments contribute to Members’ goodwill and support significant business capital, which is of value to Members and which Members are entitled to protect by lawful means. Now that’s a topic about which you might have a productive conversation with your lawyers, when you are crafting your terms of business; and also with your clients, when you are seeking their acceptance of them. So really, the work of protecting your investment ought to start months, and in some cases years, before the transition hits the inbox. The steps you might take to protect your investments probably fall presently into one or more of the following categories: • your lawful and fair client retention strategies • your lawful and fair staff retention strategies • lawful and fair protection of your proprietary interests. I have emphasised the qualifiers, lawful and fair because the law does impose some constraints on what you can and cannot do; and for some of you, measures that you include in your terms of business, candidate registration agreements, and agreements made with on-hire (independent) contractors will be brought into the new unfair terms in standard small business contracts reform regime, which commences on 12 November 2016. If you don’t know about that, you should make sure that you ask or check out one of the Australian Competition & Consumer Commission’s short YouTube videos.

BUS I N ES S M A N AGEMENT

Here are a few ideas that might help you to think about how you could better protect your investment in a Transition scenario:

Client retention strategies

• Notice periods – should be commercially realistic, reasonable and certain. It’s going to be hard for your competitor to replace you by a pre-emptive strike if your client has to give you notice of the termination of your supply arrangement. • Run off provisions – might provide against unconscientious reduction in purchase quantities during notice or transition periods. • Disintermediation provisions – need to be reasonable in the protection of legitimate interests. These take a variety of forms including agency switching fees or restraints, in-housing fees or restraints or early termination fees. Remember – these are subject to restraint of trade doctrine, to unconscionable conduct laws and may become subject to the unfair terms in standard small business contracts reform regime previously mentioned.

Staff retention strategies

• Notice periods – should be lawful (e.g. consistent with fair work laws). As much as your workers might want to leave you, and your competitor wants to employ them, a notice period can be regarded as contractual obligation that exists to preserve your investment. Perhaps you can negotiate to release it – for a fee – but you can’t do much if it isn’t there, or if it is so extravagant that it is unenforceable. • Restraints – upon direct engagement or agency switching or abandonment of assignments. The last is useful if you have corresponding notice and run-off provisions in your client agreements. These are likely to be subject to the restraint of trade doctrine. If your temps are independent contractors they may also be subject to fairness requirements of both the Independent Contractors Act 2006 and the unfair terms in standard small business contracts reform regime previously mentioned. The tests for enforceability are likely to focus on the proportionality of the measure in relation to the interest you are protecting. It is important to make sure that restraints you impose on workers are suitably aligned to interests that you have actually created in respect of your clients. It may be difficult to enforce a 6-month restraint against an on-hire worker engaged on an assignment that your client can terminate at any time.

Proprietary interest protections

• Confidentiality protections (client) – might limit the scope of disclosures and uses that your client can make of your clearly defined ‘workforce/candidate information’ to uses that are consistent with your supply of services. • IP protection (client) – provisions in your client and contractor agreements might describe and follow the pathway by which IP is generated and passed (or licensed) to the client rather than simply imagining that everything ‘magically’ ends up in the client’s exclusive ownership. Have you thought about who owns the IP in the resumes you send to your clients? Do you own it? How did you get it? How do you protect it? • Confidentiality protection (worker) - might limit the scope of disclosures and uses that your worker can make of your clearly defined intellectual property and confidential information (including current remuneration arrangements in some circumstances) to uses associated with work performed in your service. • Contractual rights – Your contractual rights are actually a form of property that you can protect, by court action, from unlawful interference by others. But this is only good if you have taken the trouble to clearly define them and establish them soundly in your contracts.

The #2 message is - if you want to protect your investment, understand what your investment really is and develop your protective strategies accordingly. While I fully recognise that there are other framings, we need to place this discussion in something of a hard-edged legal context because most usually we focus on the protection of legal rights and the enforcement of legal obligations that are enlivened in a Transition. That is why the RCSA Code recommends that, in a Transition: … Members ought to give consideration to and make suitable arrangements to identify and give effect to any relevant contractual or other legal obligations. You should be able to see immediately that, if you haven’t already created those rights and obligations in your contracts, or if you can’t identify where they come from, you’re going to be in some difficulty when the transition hits. You are likely to focus your efforts on the wrong targets – either your fleeing workforce, or your fleeing clients. You end up ‘playing the person, rather than the ball’ and your defensive strategies become ineffective.

So it’s important to understand that, in this context, your investment is not your workforce; nor is it your client base. You only have your workforce and your client base because you have invested something (think about what that might be) in them. They are the result of your investment. You do not ‘own’ them; but you do own the goodwill that you have in them – and you own the intellectual property, confidential information and legal contractual rights that support them. So that is what you protect. And it’s easy enough to do. So these are just a few ideas. It should be fairly clear from what I have being saying that you need to act early and get these matters agreed with your clients and your workforce. The opening stanzas of the RCSA Transition Schedule ought to provide the perfect framework for you to advance conversations around all of these measures. And now some words of caution and reflection. Firstly, more is not necessarily better. The key to the enforceability of most of these measures is that they should be reasonable and proportional to the interest you are protecting. If the interest doesn’t exist or is exaggerated; or if the measure Continued page 30 SEPTEMBER 2016

BUSINE S S M A N AGE M EN T Continued from page 29

is excessive (greedy if you like) you are going to weaken your position. I have heard it said in some quarters that it is clever to put defensive provisions in your agreements even if they are not going to be enforceable – because at least they will give you something to argue about. I don’t buy that. There is no point in having an argument that you are likely to lose; that may end up in a costs order being made against you; and which, if you have it, is going to damage the very relationship you say you are trying to protect. It’s much better to have reached agreement with your client; to have recorded the basis of it in your contracts; and to have agreed on how you will both provide for things that go wrong – as they may inevitably do even in the best of relationships. Secondly, it’s important to remember that what you put into your contracts says a lot about the type of relationship you are going to get out of them. I have been focusing on defensive strategies in this article because that is the orthodox approach most often expected and understood. As a collaborative practitioner1, I think we are only now beginning to move away from defensive contracts towards more constructive charters of the business relationships that we are seeking - relationships that really do build productive and resilient collaborations. Business development, client relationship, procurement, and human resources managers will have as much to say in the chartering of those relationships as lawyers. Ultimately, those charters may prove to be far more effective in protecting and capitalising on your investments than the exclusively legalistic and defensive approaches that have been adopted to date – but that is a topic for a later journal!

1 The author is a Member of the International Academy of Collaborative Practitioners and is working on developing the field of collaborative practice in employment and business applications.

RCSA JOURNAL

Work health and safety for labour hire Are on-hire workers at higher risk of exposure to workplace illness and injury? Tania Evans looks at the results of a recent survey which indicates positive results for the on-hire industry – with some provisos for improvement.

at a greater risk of a workplace injury when compared to those who are permanently employed. To support this response, WorkPro undertook a brief analysis of recent work health and safety prosecutions nationally that indicated the following as the common failures contributing to on-hire workers sustaining significant injury:

• • • •

onventional wisdom says that nontraditional work is unsafe work. Nontraditional work is defined by temporary or transitory experience. Casual workers, self-employed contractors, fixed-term employees and on-hire workers all fall into the category of non-traditional work. The number of people engaged in this type of work is growing at a rapid rate. Therefore, acquiescing to the notion that non-traditional work is unsafe would suggest there is a significant and increasing number of workers who are in unsafe work. This view was the basis for WorkPro to conduct research through a survey with the aim of identifying trends in non-traditional work, specifically, in on-hire work arrangements. WorkPro’s approach to the research included engaging with a total of 11,485 on-hire workers in the combined periods of 2011 and 2015. The crux of the survey: to seek on-hire workers’ opinions on a range of matters extending from their motivations to work in non-traditional work to awareness of health and safety responsibilities. The first survey was undertaken in 2011 to obtain initial raw data. In 2015, WorkPro again hosted another survey with the objective of identifying changes, if any, in: • on-hire worker attitudes towards onboarding and safety • age of participants, and • breadth of industry over time. Overall, the outcomes of the WorkPro survey displayed positive results for the on-hire industry. To bust the myth that non-traditional work is unsafe work, WorkPro requested respondents to identify whether they felt at a greater risk of workplace injury. Comfortingly, the majority of respondents (75 per cent) did not feel they were

inadequate systems of work • hazard identification and risk assessment • safe operating procedures.

inadequate information, instruction, training and supervision induction safe operating procedure instruction training task supervision.

There is no question that on-hire firms are deemed to be a Person Conducting a Business or Undertaking (PCBU) under modern work health and safety law. As a PCBU, on-hire firms have a primary duty of care. In its simplest form, this duty requires the on-hire firm to ensure the health and safety of on-hire workers while they are on assignment at the host organisation’s workplace. While the Work Health and Safety Act does not specifically prescribe the activities the on-hire firm must carry out to meet their duty of care, Safe Work Australia’s Legislative Fact Sheet Series-Labour Hire: duties of persons conducting a business or undertaking provides such guidance. The fact sheet suggests that in some circumstances, such as where the on-hire firm believes there is risk to an on-hire worker’s health and safety that is not adequately controlled, the on-hire firm may need to make a decision not to supply the on-hire worker. It describes the activities the on-hire firm is expected to execute before and during placement of an on-hire worker. It includes but is not limited to: • gathering information on the work host’s work environment and safe systems of work, • provision of the on-hire firm WHS induction, and • verification of a host induction, information, instruction, training and supervision. When we compare the on-hire work health and safety case law to case law where workers engaged in traditional work are injured, the

BUS I N ES S M A N AGEMENT

failures are comparable. There is consistency in the duty-holder’s failures across both structures of employment. This implies that on-hire workers are not at higher risk of exposure to workplace illness and injury. If popular wisdom says that non-traditional work is unsafe work, the question must be raised: Why would a worker want to be engaged in non-traditional work if the perceived risk of illness and injury is much higher? The WorkPro survey provides some insight. A large proportion of respondents, 65 per cent, identified that lifestyle choice was their primary reason for contracting/temping; expressing their appreciation for the flexibility and variety this type of work offered them. Pay was identified as another incentive for respondents to engage in this type of work arrangement. No longer are we restrained to a 9-to-5 job; it is now our culture to have a ‘work/life balance’, so it makes sense that a large proportion of respondents are attracted to on-hire work as it offers that flexibility. The survey results indicated that employers are effective in conveying the health and safety rights and obligations message to those in contracting/temp roles. An impressive 90 per cent of respondents indicated they felt satisfied in receiving this information. This was consistent across both surveys. Interestingly, 92 per cent of respondents in the 2015 survey identified that as a contractor/temp worker, they were aware that multiple parties are involved in managing health and safety in the workplace. This outcome is encouraging as it indicates workers are abreast of the modern work health and safety framework and they understand they are owed a duty care of care by multiple parties. So, why might this be a surprising survey finding? If we turn back the clock to the time of traditional work, health and safety law imposed a duty on the employer to the employee. For direct employment, you can understand why the law was structured this way. The employer employed a person to carry out work for an unfixed period of time – relatively straightforward. However, as we embarked on the new millennium, it became quite obvious how out of date this law was. It no longer reflected modern work. It was the subject of confusion for non-traditional work arrangements such as on-hire. Who was the employer? The on-hire firm or host organisation? While both were deemed the employer, the law was inarticulate. In 2012, Australia welcomed the introduction of model work health and safety laws. These new laws now offer a structure that is reflective of modern work and workplaces. The model

work health and safety laws have introduced the term person conducting a business or undertaking (PCBU) replacing the traditional term employer. The term worker is used in place of employee. The law recognises that there may be multiple parties to a work arrangement. It imposes a primary duty of care on each party who is involved in an on-hire placement. The diagram below offers a visual of the traditional v modern work health and safety laws.

Traditional work health and safety duty of care structure

Employer

Employee

Modern work health and safety duty of care structure The current model work health and safety framework recognises each party to the on-hire arrangement owe a primary duty of care. Each party maintains their duty and must do everything that is reasonably practicable to ensure the health and safety of the on-hire worker. The PCBUs must consult, co-operate and co-ordinate health and safety activities with each other to ensure the on-hire worker is not exposed to illness and injury at the workplace.

A large proportion of respondents, 65 per cent, identified that lifestyle choice was their primary reason for contracting/temping; expressing their appreciation for the flexibility and variety this type of work offered them.

Host PCBU Contract management company PCBU On-hire firm 3 party placement arrangment PCBU

On-hire worker Worker

On-hire firm PCBU

SEPTEMBER 2016

BUSINE S S M A N AGE M EN T

Tania Evans, WorkPro

Unlike traditional work health and safety laws, the model laws require consultation, cooperation, and co-ordination between duty holders i.e. the host, on-hire firm and other parties to the arrangement e.g. other on-hire firms and contract management companies. It states: If more than one person has a duty in relation to the same matter under this Act, each person with the duty, must, so far as is reasonably practicable, consult, co-operate and co-ordinate activities with all other persons who have a duty in relation to the same matter. (Section 46, Model Work Health and Safety Act 2011). The duty to consult with workers is not a new obligation. Both the on-hire firm and the host organisation must consult with on-hire workers regarding matters that affect or may affect their health and safety. Consultation was the only pitfall of the WorkPro 2015 survey with 11 per cent of respondents acknowledging that they were rarely or never consulted on work matters that may impact on work health and safety. When we consider this, plus the fact that 35 per cent of respondents disagreed or were not sure they

were well-prepared by the on-hire firm before commencing work in a new location/work site, it suggests this is an area for improvement for on-hire firms. Overall, the WorkPro survey showcases positive results for the on-hire industry, indicating there is no detrimental change in respondent’s perceptions regarding health and safety. The survey does indicate however that on-hire firms should place a greater emphasis on preparing on-hire workers before commencing work in a new location/site; specifically, the provision of: • induction • role expectations • information regarding the likely WHS hazards of the workplace and procedures, and • consultation throughout the duration of the worker’s placement.

Tania Evans is the Founder of WorkPro, a web based background screening and induction solution that aims to get candidates ‘work-ready’ quickly, easily and compliantly, workpro.com.au

DECISION MAKERS TRUST RCSA MEMBERSHIP Organisations increasingly insist on working with members of a professional industry association. Demonstrate your company’s commitment to your professional association and its Code for Professional Conduct by becoming a RCSA Corporate Member. And if you’re already a RCSA Corporate Member, display your RCSA logo on business cards, email footers and online. Contact us at info@rcsa.com.au or call +61 3 9663 0555.

RCSA Corporate Membership sets you apart. 32

RCSA JOURNAL

rcsa.com.au

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BUSINE S S M A N AGE M EN T

How our industry contributes to the economy

S Kurt Gillam, WA & SA State Manager, Kelly Services

The staffing, recruiting, and workforce solutions industry makes a vital contribution to the Australian economy, provides outstanding job and career opportunities for hundreds of thousands of employees per year and generates more than 10 billion dollars in revenue per year. Kurt Gillam MRCSA, the RCSA’s WA Region Chair, comments on the important contribution our industry makes.

RCSA JOURNAL

ome of the work I have witnessed and heard about within our industry this year has been extraordinary. This includes recruitment organisations providing a variety of innovative recruitment solutions to both private and public sectors – often large scale solutions that go underrated by the general population. We know that many client projects or deals requiring a workforce would simply not be possible without our industry. While the industry’s competitive nature does not always allow us to publicly share the many success stories and contributions we deliver to Australian employers and employees, in my opinion it’s becoming more relevant that these examples are shared, either by ourselves or directly by our customers, so that we can promote and enhance the value that recruitment organisations bring to Australia. In Western Australia for example, we have seen a dramatic decline within the mining and resources sector which has been the key economic driver for some time. However, this situation, like the constant evolution of all sectors and regions in which we all operate, tends to have a flow-on effect where we see employees and employers relying on the recruitment industry even more in today’s environment. This includes the constant need for greater levels of innovation, the use of technology, varied service offerings and flexibility in order for them to thrive in any conditions. I believe that what we do on a daily basis ensures that operating conditions for employers and employees are much better than they would be without our industry. We are all well aware of the fierce competition we face from one another through the many recruitment organisations as well as competition from internal recruitment teams. In saying that, I was recently interested to hear senior executives of leading job boards talking about Australia’s leading internal recruitment teams from some of the most recognised employers. They stated that these organisations are not utilising the

candidate search tools available online with research suggesting that this is because of a lack of time, expertise and resources. That this uptake is slow, and possibly declining further, demonstrates that by being experts in what we do there is always going to be a strong need for our specialist skills and tools to support leading employers, especially when it comes to being the frontrunners utilising technology. No different to most industries, recruitment is being disrupted by technology. This is nothing new: the same could have been said 13 years ago when I starting working in recruitment with a box of candidate and client cards tucked under my arm everywhere I went – and the same will be said in another 13 years. Just as my candidate cards were disrupted by CRMs, and job boards disrupted newspaper advertising, and now social media is disrupting the way we engage with our customers, our highly adaptable industry and that ‘can do’ attitude from recruitment professionals will see us continue to contribute strongly. Recruiting is number one when it comes to business impact: research has shown that recruiting ranks top of the list, with the greatest bottom-line business impact on revenue and profit of any talent management function. As in elite sports, it is obvious to almost everyone that you are making a difference when you successfully recruit top talent into an organisation. I often bring our contribution back to that fact that we literally change people’s lives — other than getting married, having children or buying a house, few things in life have a bigger impact on individuals and their families than missing out on or landing a great job. Kurt Gillam MRCSA is the WA & SA State Manager for Kelly Services.

A S S OCI AT ION NEW S

Relax, we’ve got your firm covered

INSURANCE

Introducing RCSA Insurance RCSA recently announced the formation of a new business partnership with Ardrossan Insurance Brokers. Together, RCSA and Ardrossan have formed RCSA Insurance, an offering that will fight to negotiate the best premiums and policy coverage for RCSA Corporate Members. RCSA Insurance is exclusively offering Corporate members a guaranteed 15 per cent premium reduction (conditions apply*) on insurance cover including Public Liability, Professional Indemnity and Property and Business Interruption, as well as for rapidly growing areas of risk such as cyber event protection. ‘RCSA Insurance will assist both members and their clients, as we can now provide expert advice about individual insurance arrangements, along with a guaranteed 15 per cent premium reduction for insurance cover that meets the unique needs of our industry,’ says RCSA CEO Charles Cameron. With over 10 years’ experience working with the recruitment and workforce services industry, Director of Ardrossan Insurance Brokers, Mark Laudrum, is considered an industry insider. Mark believes that Ardrossan has a responsibility to provide cover that is designed correctly to protect RCSA members and the businesses and workers they deal with every day. ‘This partnership is very pleasing as it enables us to provide cover that values the years of experience, and the extensive quality and safety accreditations as well as the other risk mitigation measures that RCSA members put in place,’ he says.

‘We look forward to working with RCSA members to address their often complex requirements for cover. Increasingly, members of RCSA are seeking advice in formulating their responses to tenders and proposals that overlook the real costs that members actually have in supplying a service.’ Mark and RCSA also believe a lack of understanding by insurance providers about the unique nature of the industry is resulting in a large number of firms paying for insurance cover that doesn’t fit. Many insurance providers do not fully understand the recruitment and workforce services industry when calculating premiums. ‘We operate in a unique and complex industry in which the risk reduction strategies of clients are increasingly complex and this spells trouble for firms with the wrong cover’ Charles Cameron adds. The team at RCSA Insurance can provide your firm with a no obligation, expert and detailed, review of your client service agreements and contracts. Contact RCSA Insurance on Tel: 61 3 9233 8505. Email: rcsa@ardrossaninsurance.com.au or visit www.rcsa.com.au

(Conditions apply: Australian Corporate Member of RCSA, appointing RCSA Insurance as your broker, no significant business changes in the last 12 months (i.e. turnover growth less than 15%, no claims, no new activities), total gross turnover less than $100million (premium reductions will be negotiated on a case by case basis for members with gross turnover greater than $100million), 15% premium reduction does not apply to workers compensation premiums.) RCSA Insurance is currently being offered to Australian Corporate Members. Discussions are ongoing to extend the offer to New Zealand Corporate Members.

We are the industry experts Director of Ardrossan, Mark Laudrum, has been working with RCSA members for over ten years across all general insurance (from compensation, public liability and professional indemnity to employment disputes, management liability and cyber event protection, plus everything in between). Mark has been a trusted advisor to many members, as well as the association for many years, and welcomes the opportunity to return to the fold and continue supporting the industry ‘RCSA Insurance has long standing and well-respected relationships with a large number of insurance providers who specialise in the recruitment industry and are willing to support RCSA and its members,’ he says.

SEPTEMBER 2016

ASSOCIATION NEWS

RCSA stands united: Labour supply a shared responsibility ‘Do we treat workers as slave labour? I would have to say yes. Do we abuse them? I would say, yes, we do so simply because the only cost we can control is the cost of labour.’ Employer witness at the Queensland Labour Hire Inquiry.

ver the past twelve months the professional labour services sector has been under scrutiny, as three inquiries into practices of the labour hire industry have been held in Queensland, South Australia and Victoria. In Victoria, the inquiry also included within its scope a look at insecure work. A number of RCSA members stepped forward and presented evidence about the practices of professional and ethical on-hire firms during the three inquiries. As you read through the many pages of transcript, it becomes evident there is a clear difference between acceptable and ethical practice, and the illegal and criminal activity evident in the stories of exploited workers. All three inquiries have shone a much needed light on the practices of dodgy labour hire contractors, and highlighted further instances of employers avoiding their responsibilities and mistreating workers. The RCSA remains opposed to any proposal for state-based licensing schemes. We believe they will fail to place any responsibility with employers, and will only further decrease the cost of dodgy labour hire contractors and create an environment that encourages the exploitation of workers,

RCSA JOURNAL

as professional providers must meet the costs of increased red tape. RCSA told all three inquiries that our members stand united in their call for professionalism and integrity. So, while the vast majority of labour hire operators operate to high professional standards, a small number of illegal labour hire contractors have no intention of being licensed, nor do they have any intention of changing their poor practices. The quote at the beginning of this article is from a North Queensland farmer who presented evidence to the Queensland Inquiry. It provides an insight into the belief among some employers that the wages and conditions of workers may be traded away. It is also providing an insight into the false belief that their responsibilities may also be passed off to dodgy labour hire contractors. However, RCSA is most concerned that no amount of new law or additional workplace inspectors will address the problem of exploitation of workers. We need to eliminate the problem at the source as for every dodgy labour hire firm, there is generally an irresponsible buyer. The Queensland Inquiry was unable to reach a joint conclusion and made a single recommendation, to refer the problem to COAG, which adopts RCSA’s view from April last year, that a single national response was required to stamp out dodgy labour hire contractors. Accompanying statements of reservation from both sides of the house reflect the divide that still exists about this issue within government, a worrying sign in the context of a changing workplace environment as the future of work and the ‘Gig’ economy take shape in Australia and around the world. There is a growing will, and need, for accreditation in the labour services industry

as the means to establish a minimum benchmark for good practice, and to provide a clear and reliable choice for employers in their decisions to use ethical and accredited labour suppliers. The onus must be upon the buyers of the services as much as it must be upon the labour suppliers, and an accreditation scheme will illustrate the differences for all. The increasing focus of the Fair Work Ombudsman in investigating and prosecuting dodgy labour hire contractors and employers has brought to light further cases of exploitation. It has also highlighted the complex nature of employment relationships and the accessorial liability that exists for both. To this end, the RCSA has joined forces with the Fair Work Ombudsman to help improve compliance with federal workplace laws. Both organisations have agreed to share information on issues relating to the labour-hire sector in a joint bid to promote and achieve workplace compliance. RCSA anticipates it will enter into further such agreements in order to more directly address the poor and unethical practices of dodgy labour-hire contractors. Money talks in the labour supply industry and it’s time we turned off the tap for dodgy labour suppliers. The criminal element only exists because these companies continue to turn a blind eye and don’t engage ethical labour suppliers.

A S S OCI AT ION NEW S

Region Councils Update SA (Andrew Sullivan FRCSA, Chair) In early August, the SA Council welcomed CEO Charles Cameron to Adelaide to meet with key South Australian Government officials and other recognised industry bodies. It was also an opportunity for the SA Council to meet with Charles and discuss at length the issues and challenges facing the SA business landscape and recruitment sector. The SA Council are currently working on some exciting new and innovative events in the next few months, so make sure you are connected on our LinkedIn page to keep abreast of events.

NSW and ACT (Nina Mapson Bone FRCSA, Chair) NSW and ACT Council has been busy with the PEARL Program most recently. With most members of the council and a lot of our members volunteering as mentors it has been a great opportunity for our region to experience the benefits of the program first hand. In full swing now, the mentees have really had a chance to develop their leadership capability in a personalised and practical setting, while the mentors have also had the opportunity to hear feedback from their mentees that they may never hear directly from their own teams. The structured, facilitated sessions, led by Altus Q, are proving invaluable for networking as well as helping both mentees and mentors develop and grow in their own careers and capabilities.

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SEPTEMBER 2016

ASSOCIATION NEWS

ANR A NEWS ANRA EBA supported by growing number of members The growing shortage of trained and experienced Alan Bell FRCSA healthcare workers continues to provide challenges for members in meeting the demand for capable staff. ANRA members participated in a roundtable with the Department of Employment in September to discuss the opportunities to open more pathways in unemployed jobs seekers to enter or re-enter the health care workforce. This roundtable provided an

opportunity for the Department to discuss first-hand the unique requirements of workers in the health care sector and possible ways to increase the job readiness of new entrants referred from employment services to the sector. ANRA Council is developing information materials to better explain the role of ANRA members in the supply chain for health care workforce, and to explain the different terms and responsibilities applicable to each party in the engagement of health care workers. These will be available to members at the next ANRA member forum. The ANRA Members Forum was held in Sydney in July. Members heard from the Director of Contingent

anra

Association of Nursing Recruitment Agencies

Workforce for NSW Procurement, Gabi Bywater, about implementation of the procurement transformation project by the NSW Government, as well as AHPRA and RCSA legal advisor Andrew Wood about what to look for before signing agreements and contracts. A reminder for all members that the next ANRA members meeting will be held in November.

RCSA IN-HOUSE TRAINING RCSA offers cost effective training solutions for your team throughout Australia and New Zealand. The Learning Centre team and your dedicated specialist facilitator will work with you to determine your strategic and corporate needs for professional development and align these to your organisationâ&#x20AC;&#x2122;s business objectives. Customised targeted group training can be run at your own business facilities, at an external training venue or at RCSA Corporate Meeting Rooms. Talk to us about your CPD requirements â&#x20AC;&#x201C; we have a facilitator and a course that will meet your needs!

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RCSA Customised Training when and where you want! 38

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A S S OCI AT ION NEW S

AMR ANZ UPDATE AMRANZ meets with procurement leaders AMRANZ has met with procurement leaders in New South Wales, Victoria and Queensland as it continues to seek flexible and responsible terms and conditions in procurement programs and agreements. AMRANZ Council formed a Working Group comprising representatives from AMRANZ Council and members to engage directly with HPV (Health Purchasing Victoria) around the specification and terms of HPV’s recent tender for medical locum services in Victoria. This resulted in a subsequent briefing and further revisions being made available to AMRANZ members. AMRANZ/RCSA met with the CEO, Director, Procurement and Risk and

Governance Manager to highlight the need and benefits for the procurement process of actively engaging with industry in the design and structure of procurement arrangements. AMRANZ representatives also met with the Category Director - Medical Services Strategic Procurement & Supply at Health Support Queensland on 14 September as part of a review of the B45 policy and agreement for the supply of medical locums in Queensland. The B45 agreement has been an issue for AMRANZ since it was first introduced, with ‘hold harmless’ clauses and no reference or terms to address the ownership or transfer of candidates being of continuing concern to members.

Please email AMRANZ at amranz@rcsa.com.au for further information, or to discuss AMRANZ’s engagement with procurement teams around Australia. A reminder for all members that the next AMRANZ members meeting will be held on 25 October in Melbourne. Stay tuned for details about registration.

SEPTEMBER 2016

ASSOCIATION NEWS

RCSA PREMIUM SUPPORTER PROFILES

Astute Payroll automates the management of your temps and contractors – including compliance, induction, TFN submissions, online timesheets, expenses, award interpretation, invoicing and payroll. Purpose built for the recruitment industry, our unique workflow tools improve your cash flow, probity, reliability, and seamlessly integrate the front and back end of your business. Choose one or more of the modules that you need to manage an effort free workforce, accurate payroll, or select our outsourced payroll service and we will handle everything for you. Request a free no obligation demo today. Call us on 1300 794 070.

ELMO, leading talent management software company in Australia and New Zealand, provides innovative HR cloud technology to two million+ users across the Asia Pacific region. ELMO offers a suite of integrated talent management solutions and a comprehensive, editable course library. Our flexible suite of products can be used together, or stand alone and is configurable to your organisation’s processes and workflows. The ELMO solution automates and streamlines all HR processes: Recruitment, onboarding, learning management, performance management, course library (330+ compliance and professional development courses and course builder. Visit our website at www.elmotalent.com.au

WorkDESK software, providing recruitment professionals with information management solutions for more than 30 years. A complete, fully integrated, front office/back office system for candidates, clients, job orders, payroll, billing, financials, CRM, search, rostering and outlook integration. For a free evaluation kit contact WorkDESK today. Phone 1800 777 004 or visit www.workdesk.com.au

RCSA PARTNERS & PREMIUM SUPPORTERS RCSA Premium Supporter & Principal Partner Kinetic Super

RCSA Premium Supporters 2cloudnine APositive Cashflow Astute Payroll ELMO Fairfax Media Indeed Scottish Pacific Business Finance SEEK Limited Voyager Software (Australia) Pty Ltd WorkDESK Recruitment Software

RCSA Supporters 180 Capital Funding Advertiser Newspapers Pty Limited Adzuna AHRI – Australian Human Resources Institute AltusQ Appoint Me Arkadin Australia

RCSA JOURNAL

Auditor Training Centre Ayers Management Pty Ltd Bendigo and Adelaide Bank Ltd Broadbean Technology Book Builders Pty Ltd BULLHORN Certex CoverCard Contract Careers CXC Global Head Office Data Savvy Pty Ltd Disability Employment Australia Ebit Services Pty Ltd Entire Software Etz Technologies FastTrack Pty Ltd FCB Group First Choice Software Asia Pacific Found U Holdings Pty Ltd GE Capital GreenBizCheck Gumtree HHMC Australia Pty Limited HIRABL IProfile

JobAdder JobFlare JXT Consulting Lander & Rogers Lipman James Lombardi Partners Melbourne Polytechnic (formerly NMIT) MemberBenefits Pty Ltd Mindset Group MyInterview.com Next Telecom Pty Ltd NPA Worldwide PAJE Business Solutions Pty Ltd Payroll Metrics Pendragon Management Quinntessential Marketing Consulting Pty Ltd Rec Tech Solutions Recruitment Juice Revelian Rocketseed Rural Health Workforce Australia SDP Contingent Workforce Solutions Pty Ltd

Secured Signing Ltd Selectus Pty Ltd Snappy Recruit Sovereign Private SpotJobs The RIB Report Verify Holdings Australia Pty Ltd Trade Me Jobs WorkPro Year13 Jobs

NZ RCSA Supporters Equal Employment Opportunities Trust Human Resources Institute of New Zealand Ministry of Business Innovation and Employment Ministry of Social Development NZ, Work & Income Pathways to New Zealand Ltd Secured Signing Ltd The Dominion Post Trade Me Jobs

A S S OCI AT ION NEW S

RCSA CPD & EVENTS CALENDAR 2016/17 CERTIFICATE WORKSHOPS SYDNEY & MELBOURNE September Introduction to Recruitment: Friday 23 September

October Introduction to Recruitment: Friday 7 October Interviewing Essentials: Friday 14 October Sales and Marketing from the Desk: Friday 21 October

November Introduction to Recruitment: Friday 11 November Interviewing Essentials: Friday 18 November Sales and Marketing from the Desk: Friday 25 November

December Introduction to Recruitment: Friday 9 December

PERTH November Introduction to Recruitment: Friday 11 November Interviewing Essentials: Friday 18 November 2017 RCSA Sales and Marketing from the Desk: ACUMEN SPEAKER Friday 25 November

BRISBANE October Introduction to Recruitment: Wednesday 5 October Interviewing Essentials: Wednesday 12 October Sales and Marketing from the Desk: Wednesday 19 October

November Introduction to Recruitment: Wednesday 9 November Interviewing Essentials: Wednesday 16 November Sales and Marketing from the Desk: Wednesday 23 November

December Introduction to Recruitment: Wednesday 7 December

AUCKLAND November Introduction to Recruitment: Thursday 3 November Interviewing Essentials: Thursday 10 November Sales and Marketing from the Desk: Thursday 17 November

SERIES

2017 RCSA ACUMEN SPEAKER SERIES

2017 GREG RCSA ACUMEN SPEAKER SERIES

TEMP DESK MASTERCLASS SERIES: SOPHIE ROBERTSON FRCSA Temp Desk Masterclass Tuesday 15 November: Sydney, Temp Desk Masterclass Thursday 17 November: Melbourne, Temp Desk Masterclass Tuesday 22 November: Brisbane, Temp Desk Masterclass Tuesday 29 November: Auckland,

NZ RCSA NETWORKING EVENTS Thursday 27 October: Auckland Wednesday 23 November: Wellington Wednesday 30 November: Christchurch

RCSA NETWORKING EVENTS Wednesday 16 November: Brisbane Thursday 17 November: Canberra Thursday 24 November: Melbourne Wednesday 30 November: Sydney Thursday 1 December: Adelaide Wednesday 7 December: Darwin Wednesday 7 December: Hobart Thursday 8 December: Perth

AND CHRIS SAVAGE PRESENT

THE SIX PILLARS OF THE FUTURE-FIT RECRUITER

2017 AUSTRALIAN DATES Adelaide - Wed 1 March Perth - Thurs 2 March Melbourne - Tues 7 March Canberra - Wed 8 March Brisbane - Thurs 9 March Sydney - Fri 10 March 2017 NEW ZEALAND DATES Christchurch - Wed 15 March Wellington - Thurs 16 March Auckland - Fri 17 March

SEPTEMBER 2016

ASSOCIATION NEWS

RCSA BOARD, LIFE MEMBERS & FELLOWS * RCSA Board President Robert van Stokrom FRCSA

Vice Presidents Peter Langford FRCSA Sinead Hourigan FRCSA

Directors Robert Olivier FRCSA Lincoln Crawley FRCSA Steve Heather FRCSA Alan Bell FRCSA Nina Mapson Bone FRCSA Ian McPherson FRCSA Penny O’Reilly MRCSA Andrew Sullivan FRCSA

RCSA Life Fellows Pauline Ashleigh-Marum FRCSA (Life) Jim Bailey FRCSA (Life) Robert Blanche FRCSA (Life) Dorothy Caldicott FRCSA (Life) Nanette Carroll FRCSA (Life) Jane Fanselow FRCSA (Life) Ross Fisher FRCSA (Life) Peter Gleeson FRCSA (Life) Larry Grima FRCSA (Life) Michael Hall FRCSA (Life) Sue Healy FRCSA (Life) Kris Hope-Cross FRCSA (Life) Malcolm Jackman FRCSA (Life) Graham Jenkins FRCSA (Life) Dawne Kelleher FRCSA (Life) Barry T Knight FRCSA (Life) Roger Lampen FRCSA (Life) Ruth Levinsohn FRCSA (Life) Debra Loveridge FRCSA (Life) Reg Maxwell FRCSA (Life) John McArthur FRCSA (Life) Matthew McArthur FRCSA (Life) Sylvia Moreno FRCSA (Life)

Helen Olivier FRCSA (Life) E. Leigh Olson FRCSA (Life) V John Plummer FRCSA (Life) John Plummer FRCSA (Life) Wendy Rae FRCSA (Life) Beryl Rowan FRCSA (Life) Julie Sattler OAM FRCSA (Life) Greg Savage FRCSA (Life) Rosemary Scott FRCSA (Life) David Shave FRCSA (Life) Kim Shearn FRCSA (Life) Stephen Shepherd FRCSA (Life) Geoff Slade FRCSA (Life) Jan Spriggs FRCSA (Life) Kaye Strain FRCSA (Life) Jean Tait FRCSA (Life) Rodney Troian FRCSA (Life) Janet Vallino FRCSA (Life) Paul Veith FRCSA (Life) Hugh Whan FRCSA (Life) John K Williams FRCSA (Life) George Zammit FRCSA (Life)

RCSA Fellows Julian Azzopardi FRCSA Jacqui Barratt FRCSA Nicholas Beames FRCSA Nikki Beaumont FRCSA Alan Bell FRCSA Kevin Blogg FRCSA Stephen Bott FRCSA Lisa Bousfield FRCSA Graham Bower FRCSA Nicky Brunning FRCSA Kevin Chandler FRCSA Sandra Chiles FRCSA Ross Clennett FRCSA Karen Colfer FRCSA John Cooper FRCSA Ron Crause FRCSA

RCSA Principal Partner

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Tracy Morgan FRCSA Gillian Mullins FRCSA Stephen Noble FRCSA Robert Olivier FRCSA Penny Perkins FRCSA Stephen Porter FRCSA Bruce Ranken FRCSA Scott Roberts FRCSA Sophie Robertson FRCSA Deborah Ross FRCSA Alan Sherlock FRCSA Linda Simonsen FRCSA Paul Slezak FRCSA Ian R Stacy FRCSA David Stewart FRCSA Andrew Sullivan FRCSA Lyn Tanner FRCSA Corrine Taylor FRCSA Vibeke Thomsen FRCSA Gayleen Toll FRCSA Nicole Underwood FRCSA Rosemary Urbon FRCSA Scott Van Heurck FRCSA Robert van Stokrom FRCSA Craig Watson FRCSA Paula Watts FRCSA John Wilson FRCSA

RCSA Honorary Fellows Julie Mills Hon FRCSA (Life) Joan Page Hon FRCSA (Life) Malcolm Riddell Hon FRCSA (Life) Reg Shields Hon FRCSA (Life) Jill Skafer Hon FRCSA (Life) Andrew Wood Hon FRCSA (Life) * Correct at time of printing.

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Australia & New Zealand | June 2014

& New Australia

Lincoln Crawley FRCSA Christine Crowe FRCSA Denis Dadds FRCSA Bill Dalby FRCSA Pam Dew FRCSA Rhonda Dunn FRCSA Jason Elias FRCSA Diane Epps FRCSA Ken Fowler FRCSA Stuart Freeman FRCSA Norm Geist FRCSA Angela Giacoumis FRCSA Tony Greaves FRCSA Mark Griffiths FRCSA Ian Hamilton FRCSA Michael Hannaford FRCSA Andrea Hardy FRSCA John Harland FRCSA Nigel Harse FRCSA Nick Hays FRCSA Sam Hazledine FRCSA Steve Heather FRCSA Jennifer Hobbs FRCSA Matthew Hobby FRCSA Alison Hucks FRCSA Phil Isard FRCSA Leigh Johnson FRCSA Tania Kapell FRCSA Giles Keay FRCSA Linda Kemp FRCSA Maria Kourtesis FRCSA Peter Langford FRCSA Colin Levander FRCSA Gaynor Lowndes FRCSA Nina Mapson Bone FRCSA Andrew McComish FRCSA Fraser McKechnie FRCSA Ian McPherson FRCSA Annie Milne FRCSA

Advertise in the RCSA Journal You can reach owners, managers and consultants in the recruitment industry across Australia and New Zealand through the RCSA Journal. Contact Carly Fordred, RCSA Marketing and Communications Manager for information: cfordred@rcsa.com.au or call +61 3 9663 0555

Relax, we’ve got your firm covered.

The RCSA is pleased to announce the formation of a new business partnership with Ardrossan Insurance Brokers.

INSURANCE

✓ We guarantee a premium reduction of 15%* (Exclusive to RCSA Corporate Members ONLY) ✓ We will negotiate the best premiums and policy coverage based on the combination of Premium and risk ✓ We will establish what you are, and are not covered for, as well as recommend commercial improvements.

RCSA Insurance delivers customised cover to meet For all enquiries regarding RCSA Insurance for your recruitment business, please call Ardrossan on +61 3 9233 8505. rcsa@ardrossaninsurance.com.au or visit www.rcsa.com.au *Conditions apply, refer to www.rcsa.com.au

your

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SUP

A ars ars S T RU S T R ALIA ALIA

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Email sales@workdesk.com.au