Recruitment Extra August 2013 by Thomson Reuters

August 2013 30172890

recruitmentextra.com.au

Following the letter of the

A look at the latest employment legislation

The leading magazine for recruitment professionals in Australia and New Zealand

RECRUITMENT SUPER HAS CHANGED TO KINETIC SUPER. Kinetic Super is a specialist industry fund built upon 20 years of experience in the recruitment sector. Our name change reﬂects our focus on the needs of the modern mobile worker: we ensure our members stay connected with their super as they move from job to job. Why choose Kinetic Super? We’re the leading industry fund for the recruitment and job services sector We’re a long-standing supporter of the recruitment industry and a principal partner of the RCSA We have more than 20 years experience managing super for over 350,000 members We have a smartphone-friendly website to make it easy to access your account and key information We offer a choice of eight investment options, including a MySuper option We provide access to a range of insurance options, including Income protection, Death and TPD cover We offer access to one-on-one help with a super specialist at no extra charge.

Go to kineticsuper.com.au to see how easy it is to join or to take us with you to your next role. If you have any questions or need help organising your super, call us on 1300 304 000 or email us at info@kineticsuper.com.au

KINETIC SUPER. THE SUPER THAT MOvES WITH yOU. Kinetic Superannuation Ltd (KSL) (ABN 14 056 917 303 AFSL 222590 RSE L0000352) is the Trustee of Kinetic Superannuation Fund (KSF) (ABN 78 984 178 687 RSE R1000429) which includes Kinetic Smart Pension (KSP). Before making a decision about Kinetic Super, you should consider your own requirements and read the relevant Product Disclosure Statement and Incorporated Information. For a copy, call us on 1300 304 000 or visit kineticsuper.com.au. Kinetic Super Management Pty Ltd (ABN 53 000 013 276 AFSL 232501) provides general financial advice, marketing and sales services using its AFSL for Kinetic Superannuation Ltd (KSL). Relationship Managers and Member Education & Advice Consultants are employed by Kinetic Financial Services Pty Ltd (ABN 57 103 181 844) and are Authorised Representatives of Kinetic Super Management Pty Ltd.

News

Industry welcomes mature age employment report Grant Burley

A DEGREE OF INVESTMENT A recent report from NZ-based recruiter Absolute IT has found that the difference in remuneration between an IT worker with a degree and one without is not significant in the first few years. However, once candidates have 10 or more years of experience the difference in pay begins to show with a qualified worker earning as much as 26% more than a colleague without a degree. In real terms this means that an IT professional who has worked in the industry for 15 years and earns a median base salary of $95K could be earning $25K more if they have a degree than a colleague without one. IT professionals with a degree are also significantly more likely to move into executive roles, with 44% of IT professionals with 10 plus years’ experience managing more than five staff, compared with only 30% of those without a degree. Absolute IT’s director Grant Burley says the long term benefits of investing in education is significant: “As the industry continues to evolve and grow, the demand of university educated tech graduates also develops. We have a generation of digital thinkers exiting high school, a tech industry short on talent and a great opportunity to connect the two. “With 75% of ICT employers planning to hire additional staff this year, 38% due to new projects and an industry setting itself up to be number one for GDP contribution by 2017, it is a great industry to align with,” says Burley. “For a few years, it was in a quiet period in terms of innovation. However, today we’re seeing it being viewed for its potential to revolutionise a company.”

The RSCA and AHRI have given strong support to a series of law reform recommendations designed to tackle the barriers preventing the full participation of mature age Australians in the workforce. Following a lengthy period of community consultation, the Australian Law Reform Commission has released its final report, titled Access All Ages - Older Workers and Commonwealth Laws. The report, commissioned by the federal Attorney General, charged the Commission with the responsibility of reviewing obstacles to employment faced by Australians 45 years and older. The Commission was also asked to look at the need to review Commonwealth laws to remove any limitations, disincentives or obstacles to older workers. The Commission has recommended the development of a national mature age employment plan, and added a number of specific recommendations in the areas of work health and safety, social security, superannuation, and recruitment and employment. In relation to the 13 recommendations under the recruitment and employment

heading, the report called upon AHRI and the RCSA to examine their respective codes of conduct with a view to emphasising the merits of workplace diversity and the constructive engagement of mature age job seekers. It also drew the attention of the professional bodies to relevant antidiscrimination and industrial relations laws. The RCSA’s CEO, Steve Granland, said the RCSA had established a Workforce Participation Forum to coordinate an industry wide response and to represent the recruitment industry and RCSA members with an industry voice and perspective with Government. “We see there are a number of opportunities and challenges to increasing participation in the workforce,” he added. AHRI chairman, Peter Wilson AM, said: “AHRI is undertaking a review of its code of conduct in the light of the Commission’s report and will be making amendments accordingly, mindful of the Commission’s recommendations. We are also reviewing our suite of employment awards and our training offerings with a view to ensuring the maximum participation of mature age workers in the Australian workforce.”

TechnologyOne payroll on a roll TechnologyOne has won 30 customers in the last 12 months, beating companies such as Oracle and SAP, according to TechnologyOne HR and Payroll General Manager, Paul MacRae. Commenting on the achievement MacRae said, “Many of our competitors’ systems are based on old and inefficient technologies such as Uniface, COBOL, AS400 and Oracle Forms, which do not offer the flexibility to take an organisation to a stage where employees can access their relevant functions via any device on any browser. “TechnologyOne flies in the face of these systems, providing a sophisticated and date-effective payroll system that is enterprise-ready, with a suite of HR

capability and analytics that focus on what an organisation needs to manage its biggest resource,” he said. “Being able to offer software integration with financials means organisations need far less effort to close out periods, as the system is balanced in real-time,” MacRae said. “Whereas most payroll managers will spend a considerable amount of time processing and massaging financial data to then enter it into non-integrated financial systems, TechnologyOne HRP allows for easy, streamlined information capture.” TechnologyOne Executive Chairman Adrian Di Marco said HRP solutions represented a significant area of potential growth for TechnologyOne.

recruitment extra 2013 August 3

Editor Imogen Tear Tel +61 2 8587 7258 imogen.tear@thomsonreuters.com Submissions imogen.tear@thomsonreuters.com Advertising Australia & New Zealand Helen Sykes Tel +61 2 8587 7462 helen.sykes@thomsonreuters.com Enquiries Emily Ings Tel +61 2 8587 7051 emily.ings@thomsonreuters.com

last hurrah

first hello

This issue marks the end of an era for me personally and professionally as I hang up my editor's hat here at recruitment extra to embark on the next stage of my career. As co-founder of recruitment extra and founder of the Recruitment Excellence Awards I leave with almost 17 years of memories from my time writing, researching and networking within what I still consider to be one of the most exciting professions in the service industry. I’d like to thank everyone who has contributed to recruitment extra over the years, to our advertisers and valued readers, our highly esteemed REA judges and to all the firms that have nominated themselves. It has been an absolute pleasure to work with you all. While I leave the team here at Thomson Reuters, my new role enables me to plant myself firmly into the arms of the recruitment industry and join the very exciting crew at Talent International. I look forward to bumping into many of you at industry events and will continue to avidly read recruitment extra! Please allow me to introduce to you Imogen Tear who has, as many of you will know, held the reins here at recruitment extra for quite some time now. Imogen and the team I know will rise to the challenge of breathing new life into recruitment extra and continuing its established reputation in the ANZ recruitment market. All the best!

By the time this issue hits desks many of you will already be aware that editor and co-founder of recruitment extra, Lesley Horsburgh, has gallivanted off to a glamorous new role at Talent International. As a long term member of the recruitment extra family I am delighted to have the opportunity to carry on Lesley’s good work and it is with great honour I take on the role of editor. For those of you who don’t know me already please don’t hesitate to get in contact at imogen.tear@thomsonreuters.com – I’d love to hear from you. This issue is all about employment law – our contributors from the legal industry tells us what’s new in the workplace and give us a timely reminder that compliance is very much the responsibility of recruiters as well as their clients. With the Recruitment Excellence Awards just around the corner we are busy planning our biggest and best event yet. So if it’s not already in your diary save the date now: 25 OCTOBER. Tickets will be on sale soon. Please join me in wishing Lesley all the best for the future.

4 August 2013 recruitment extra

Graphic design Michelle D’Souza Printing Ligare http://sites www.thomsonreuters.com.au/recruitment-extra/ www.thomsonreuters.com.au www.recruitmentextra.com.au Customer service and subscription inquiries Tel 1300 304 195 Fax 1300 304 196 Email LTA.Service@thomsonreuters.com Publisher Thomson Reuters (Professional) Australia Limited ABN 64 058 914 668 Head office 100 Harris Street Pyrmont NSW 2009 Tel +61 2 8587 7000 Fax +61 2 8587 7100 © Thomson Reuters (Professional) Australia Limited 2010 ISSN 1835-1395 All information in recruitment extra is copyright. Material is not to be used or reproduced without written permission. No responsibility is taken for unsolicited material. Articles reflect the opinion of the author and not necessarily that of the publisher.

Like us on Facebook For the latest REA announcements follow us on twitter @RecExtraMag From time to time we would like to inform you of industry events or offers exclusive to recruitment extra readers. If you would like to join our community please email: recruitmentextra@thomsonreuters.com and in the subject line type “subscribe to email notifications".

News

EXCUSE ME SIR… In 2013 women are still earning only 83.5¢ for every dollar earned by their male counterparts. The gender pay gap, according to ABS data, is around the 17.6% mark based on average weekly fulltime earnings. Somewhat controversially the reason such a discrepancy still exists could be partly explained by the poor negotiation skills of the women themselves, according to a survey conducted by the The Heat Group. Of the women surveyed by The Heat Group in June this year, over half (55.4%) said they believed they weren’t paid the wage they were worth due to poor negotiation skills and a fear of embarking on the confronting task of salary negotiations. “Women need to take a headstrong and professional approach when negotiating their salary,” said Gillian Franklin, Managing Director of The Heat Group. “Rather than underestimating their significance, they must be prepared to

talk about the unique qualities they bring to a company. They should also do their homework and benchmark themselves in the industry.” Almost half of Australian women (47.6%) believe they don’t receive the salary they deserve due to a lack of assertiveness when asking for more money. Their inability to enter into discussions with confidence has caused a negotiation divide. “In order to move forward and close the negotiation divide, women need to consider the many things they can offer an employer and feel empowered to request the salary they deserve. It is also important that women stop feeling they need to compromise to obtain flexibility, but rather focus on their outputs which is the most important KPI,” said Franklin. “It is frustrating when women are apologetic for their requirements and feel they have to sacrifice their salary accordingly. Until we can address this, women will continue to suffer from the negotiation divide.”

WHS on the go A new app has been launched by Systems on a Shoestring (SOAS) that aims to help businesses be compliant with Work Health and Safety legislation. The SOAS Simple Safety application is a step-by-step system that helps Australian SMEs meet Work Health and Safety compliance needs while on the move. According to Emma Bentton, Director of Systems on a Shoestring, business owners have struggled to stay on top of changes to the Work Health and Safety Act, regulations and codes of practice which equate to over 2,000 pages, potentially placing their staff and their business at risk. “Each day in Australia, an average of 360 workers are injured at work. Instead of focusing on actual workplace safety, many business owners are concentrating on meeting the redtape regulatory requirements. “Business owners are deeply aware that even a minor workplace accident can have significant financial and legal

repercussions if they cannot demonstrate their compliance with Work Health and Safety legislation,” said Bentton. The 2013 Key Work Health and Safety Statistics Report found that workplace related injuries are estimated to have cost Australian businesses $60.6 billion. Businesses found to be in breach of the Workplace Health and Safety Act 2011 can face fines of up to $3 million and individuals may be fined up to $600,000. “Business owners must be confident that they have identified the hazards in their workplace and have adequate controls in place to manage these risks. “This is why Systems on a Shoestring has developed a simple three-step application, tailored to assist small business owners and even voluntary organisations, such as sporting associations, to meet their required Work Health and Safety demands,” said Bentton. The app can be downloaded from the Apple Store or through Google Play.

Bullying claims set to soar Employment law specialists, Justitia, have warned employers to brace themselves for a stream of new claims to the Fair Work Commission in 2014 following the passing of new antibullying laws. When the laws come into operation from 1 January 2014, it will be the first time in Australia, either at a State or Federal level, that complainants can themselves seek a legal determination concerning their bullying complaint. Justitia caution that whilst “this is an important development for victims, it promises to significantly increase the workload for employers. The Commission has estimated that the changes to workplace bullying laws may result in an additional 3,500 claims per year being made to them. Employers can expect to find themselves in the Commission more often defending a claim of bullying, than a claim of unfair dismissal or adverse action.” The Commission will be able to make any orders it considers appropriate (other than orders for reinstatement or compensation) where it is satisfied that the worker has been bullied at work and there is a risk that this behaviour will continue. According to Sarah Rey, Partner, Justitia, “If the Commission is to discourage vexatious claims, it should require employees to have real and meaningful evidence to support their application for an order. This evidence should show a reasonable basis for believing that bullying has occurred and is likely to continue. “Prudent employers will feel compelled to conduct an extensive review of their workplace policies, procedures and training to ensure that they have effective systems in place to handle complaints in a timely manner. They will also feel obligated to keep detailed evidence that they have taken every complaint seriously, whether genuine or not, and, where the complaint is valid, acted to stop the behaviour and ensure that it does not continue or recommence.”

recruitment extra 2013 August 5

Contents

Inside August

The

Features

issue

Employment Law Round Up 2013

Independent Contractors

Step by Step Guide to 457 Visas

Sex Discrimination

Compliance is Critical

34 Tips for Selecting an Innovative Leader

Regulars

News

HR Report

Online Recruitment

Social Recruiting

The Panel

Head to Head

State Review: ACT

On the Move

Directory

30 6 August 2013 recruitment extra

The latest news, events and announcements

Movers and shakers in the industry

Advertising directory

News

Top titles for business professionals Data released by Dymocks' reveals the best-selling business titles over the last five years includes long term favourites and some new entrants such as Sheryl Sandberg's Lean In. Bestselling business books Last six months: 1. Lean In by Sheryl Sandberg 2. The 7 Habits of Highly Effective People by Stephen R Covey 3. Rich Dad Poor Dad by Robert Kiyosaki 4. Who Moved My Cheese? by Spencer Johnson 5. Strengthsfinder 2.0 by Tom Rath Last five years: 1. Who Moved My Cheese? by Spencer Johnson 2. Freakonomics by Steven Levitt and Stephen J Dubner 3. From 0 To 130 Properties In 3.5 Years by Steve McKnight 4. Outliers by Malcolm Gladwel 5. The 7 Habits of Highly Effective People by Stephen R Covey Bestselling Management Books Last six months: 1. The 7 Habits of Highly Effective People by Stephen R Covey 2. Strengthsfinder 2.0 by Tom Rath 3. The One Minute Manager, by Ken

Blanchard and Spencer Johnson 4. Five Dysfunctions of a Team by Patrick Lencioni 5. Good to Great by Jim Collins Last five years: 1. The 7 Habits of Highly Effective People by Stephen R Covey 2. The One Minute Manager, by Ken Blanchard and Spencer Johnson 3. The 7 Habits of Highly Effective People 15A by Stephen R Covey 4. Good to Great by Jim Collins 5. Strengthsfinder 2.0 by Tom Rath Sophie Higgins, Dymocks’ National Buying Manager, says the new findings re-iterate the timelessness of standout performers like Who Moved My Cheese. “When it comes to career advice, Australians make relatively safe choices – titles such as Who Moved My Cheese, The 7 Habits of Highly Effective People and The 4 Hour Work Week are all classics, which remain bestsellers in the long-term as well as the short-term,” said Higgins.

JOB ADS FALL IN JUNE Job ads declined for the fourth successive month in June according to ANZ data, equating to a fall of 30,000 (or 19% less) than ads in the same period last year. Job advertisements are now close to 30% below their most recent peak at the end of 2010 and just 8% higher than the lowest level reached during the Global Financial Crisis. ANZ’s Australian Chief Economist, Ivan Colhoun, said a weakness was particularly evident in Western Australia and Victoria in recent months but that conditions in NSW were more encouraging. “WA is now recording the sharpest trend decline in newspaper job advertisements of any state, with job advertising nearly 50% lower than a year ago.

“Newspaper job advertising is trending steadily lower in all states and territories except the ACT, though the trend growth in the ACT this month seems to have been influenced by what looks like a suspiciously strong reading,” he said. According to Colhoun downward trends in job advertising have been reliable indicators of lower interest rates and rising unemployment. “ANZ expects a further interest rate cut in November this year and sees the balance of risks being for further interest rate reductions in 2014, notwithstanding the fact that a declining A$ is now also providing useful stimulus to the Australian economy.”

Bauer launches jobs board Bauer Trader Media has expanded its online portfolio with the launch of TradeYourJob.com.au, a specialist jobs portal for transport, skilled trades and industry jobs. By overhauling the company’s Transjobs.com.au jobs website the business hopes the new portal will complement its existing broader employment classifieds business. Bauer Trader Media CEO, Keith Falconer, said, “The new website offers unprecedented opportunities for Australian workers. Our integrated multi-platform publishing model gives employers and workers the right tools to make the right connections across a range of transport, skilled trades and agricultural sectors. “TradeYourJob.com.au represents the natural evolution of specialist job portals to efficiently service markets that are today underserved by generalist job sites.” Supported by a national press, radio and an online campaign, TradeYourJob. com.au will be expanded to include employment sections in 11 (printed) magazine titles within the Trader Group, as well as their associated websites.

The number of employers that believe there is a more positive economic outlook on the horizon, compared to 27% of employers in 2012.

2013 Hays Salary Guide

recruitment extra 2013 August 7

News

Tackling mental health at work The National Mental Health Commission has launched the Mentally Healthy Workplace Alliance – a collaborative partnership between business, the mental health sector and the government that aims to connect the business sector with practical guidance about mental health and developing mentally healthy workplaces. Founding members of the Alliance include the Australian Chamber of Commerce and Industry, the Australian Psychological Society, beyondblue, the Black Dog Institute, the Business Council of Australia, Comcare, the Council of Small Business Organisations of Australia, the Mental Health Council of Australia, Safe Work Australia, SANE Australia and the University of New South Wales. Professor Allan Fels, Chair of the National Mental Health Commission said the Alliance wants all Australian workplaces to take active steps to create mentally healthy workplaces: “Mental illness costs the Australian economy over $20 billion a year, while recent research from SANE Australia highlights that the majority of people feel unsupported when mentally unwell, and less than half of managers (43%) have an understanding of mental illness. “With almost half of Australians likely to experience a mental illness in their lifetime, the importance of having mentally healthy workplaces cannot be overstated. “Mentally healthy workplaces prevent harm to the mental health of their people, make sure people who experience

Average national pay increase over the next 12 months.

mental health difficulties are supported, and have positive cultures that are conducive to mental wellbeing. “Businesses that invest in mental health are also more productive, innovative and likely to recruit and retain the best and brightest people. That’s why the work of the Alliance, and support from the business community is so important.” ACCI Chief Executive, Peter Anderson, said: "I know from both professional and family experience that mental health is not a matter to be brushed aside, nor does it discriminate. By partnering with experts in the field, business organisations can provide practical support as well as showcase good practices and peer-to-peer experiences. "I have long been concerned that workplace health and safety is wrongly seen through the prism of employer obligations to staff, whereas the wellbeing of business owners and their families working long and stressful hours is just as important. The case for self-care, understanding early warning signs and having the confidence to do something about them is a barrier needing to be broken." Statistics from the ABS released in 2013 found that in 2007, 45% of Australians aged 16-85 years (or 7.3 million people) had at some point in their lifetime experienced a mental disorder. In the 12 months prior to the survey women were more likely than men to have had symptoms of mental illness. A higher rate of anxiety disorders among women was the main contributor to the difference.

3.5

Australian Salary Movement Index 2013

8 August 2013 recruitment extra

Rebrand for Recruitment Super Kinetic Super officially launched on 1 July 2013 as the “super fund for the modern and mobile worker”. Kinetic Super was previously known as RecruitmentSuper, Accountants Super, Australian Enterprise Super and SMARTpension, which were all divisions of Professional Associations Super. Kinetic Super, which has strong foundations in the recruitment and employment services sector, will continue to operate as an industry fund. The rebrand includes a focus on mobility and technology and the website will be available on all mobile devices. Dzu Huynh, General Manager of Marketing, said research conducted earlier this year highlighted how mobile and diverse the membership was (40% indicated they would change jobs in the next 12 months) and these findings alerted the business to the importance of exploring “new engagement opportunities, so that [members] can take us with them throughout their career.” New features allow members to join online, tailor their insurance and investment choices, get help and advice and use the online Changing Jobs Tool, which makes it easier for members to stay with the fund as they change jobs. CEO of Kinetic Super, Megan Bolton, added: “It’s been a really exciting time for the fund over the last six months, receiving our MySuper authorisation, getting out on the road revealing the brand and making sure our employers are on track with the upcoming requirements from the Stronger Super reforms. With billions still in lost super and many Australians with multiple accounts, it’s a key focus of the fund to connect our members with their super in a way that promotes action.”

News

Save the date

25 OCTOBER 2013

Our most glamorous location yet!

recruitment extra 2013 August 9

News

IT’S A GOOD TIME TO RECRUIT Recruitment branch managers and team leaders’ salaries have risen “quite sharply” in the last 18 months according to new figures released by Scott Recruitment. However this rise is not felt across the whole industry with most other recruitment roles seeing the median base salary down or the same as it was over a year ago.

POSITION

Founder and Managing Director of Scott Recruitment Services, Rosemary Scott, commented: “The dollars to move are down in all cases, so maybe it’s a good time to start recruiting, rather than holding off. So make some plans whilst you’re preparing your budgets!”

MEDIAN BASE

MEDIAN SALARY PACKAGE

MEDIAN COM/ BONUSES

BENEFITS

$ TO MOVE

Business Development Manager

80,000

98,645

1,000

Mob allowance Car allowance Car park

10,885

Recruitment Consultant (Perm)

57,500

70,850

2,000

Mob allowance Training Flexi hours

12,270

Recruitment Consultant (Temp)

55,000

67,580

2,000

Mob allowance Car park Training

11,070

Resourcer

50,000

59,950

NIL

Mob allowance Car park Training

7,232

Senior Recruitment Consultant

70,000

95,647

12,000

Mob allowance Flexi hours Car park

13,734

Branch Manager

100,000

130,800

5,000

Mob allowance Car park Car allowance

22,405

Executive Search Consultant

97,500

119,900

30,000

Mob allowance Car allow Flexi hours

16,607

Team Leader

80,000

102,187

15,000

Mob allowance Training Car park

13,394

State/Country Manager

133,000

174,400

22,500

Mob allowance Car park Flex hours

31,103

Internal Recruiter

69,250

76,027

NIL

Flexi hours Employee assist program Mob allowance

8,417

10 August 2013 recruitment extra

News

PRODUCTIVITY DEBATE UNABATED On the 15 July the Australian Mines and Metals Association (AMMA) wrote to Australian Prime Minister Kevin Rudd urging an overhaul to Australia's workplace laws in order to lift productivity or risk undermining the $350 billion invested in Australia's resource industry. The letter followed the PM's National Press Club address on July 11, in which he called for a productivity pact between business and government but, according to the AMMA, “did not make reference to the challenges facing business as a result of the Government's Fair Work legislation”. AMMA's letter proposed several nonlegislative measures to lift productivity in Australian workplaces, including across areas of innovation, technology, productivity research and benchmarking, promoting best practice in employee engagement and greater productivity emphasis in education and training. The letter also strongly attacked the unions citing: “Key productivity concerns under the current IR framework include expanded union right of entry…an increase in working days lost to industrial action and the re-emergence of a highly militant unionism.” The Australian Chamber of Commerce and Industry responded to Rudd's productivity plan in a marginally more positive way but called for more action to help small business. Chief Executive Peter Anderson said while, “We welcome the positive language Kevin Rudd has adopted since returning as Prime Minister…fine words are not enough – small business people require concrete action.” Anderson called for political leaders of all parties to sign up to the chamber's "Too Big to Ignore" small business campaign, calling for cuts to red tape, easier business tax and better infrastructure. The Australian Industry Group also threw its weight behind voices calling for a review of industrial relations with the release of their survey that ranked industrial relations as the number one policy priority for the next term of Government. The result is “a message from business to all political parties that sensible changes must be made to the Fair Work Act to support productivity and job growth,” Ai Group Chief Executive Innes Willox said.

Willox called for all political parties to support amendments to ensure that Australia’s workplace relations system was “flexible, productive and fair – to employees and employers.” The Ai Group said the key problems and the changes which need to be made to the Act, include: • More tightly defining the issues which can be the subject of bargaining claims to stop unions organising industrial action over matters which do not pertain to the employment relationship; • Preventing unions holding employers to ransom over greenfields agreements for new projects; • Implementing a more effective framework for individual flexibility arrangements to provide genuine flexibility to individual employees and their employers; • Fixing the general protections laws to redress the current high and increasing number of unwarranted claims from exemployees, and the widespread payment of ‘go away’ money by employers; and • Addressing the transfer of business laws which are currently operating as a barrier to the restructuring of businesses to enable them to remain competitive, and a barrier to employees being offered career opportunities within corporate groups. The debate around whether Australia’s industrial relations laws are helping or hindering productivity continued at the University of Sydney’s annual Labour Law Conference. Whilst the AIG’s workplace relations director Stephen Smith argued that there are serious problems with Australia's workplace relations system, Josh Bornstein, a director of labour law firm Maurice Blackburn, said that the nation had boomed since the introduction of the Fair Work Act in 2009, and that Australia had had ''21 consecutive years of economic growth''. Bromstein argued that the debate in recent years about Australia's productivity only developed into a ''crisis'' after a concerted political campaign by the federal Coalition, industry bodies and ''far-right fringe groups'' following the 2010 federal election.

HOW MANY GOLF BALLS CAN YOU FIT INTO AN AIRPLANE? Job interviews at Google, frequently named one of the best places to work, may be slightly easier now the company has “shifted away” from difficult “brainteaser” questions. An admission by Google’s senior vice president of people operations that the company’s infamous brainteaser interview questions didn’t work and would no longer be part of their interview process[i] has prompted Hays, amongst others, to come out in support of a return to a focus on competency and behavioural based interviews. Nick Deligiannis, Managing Director of Hays in Australia and New Zealand said: “Employers have used these brainteaser questions to make their company stand out, rather than test the suitability of a candidate. Interviews should be as objective as possible and these brainteaser questions introduce too much scope for subjectivity. “Instead we suggest employers use competency or behavioural interview techniques. A behavioural interview attempts to predict future behaviour based on your past behaviour in a similar situation. Behavioural questions often being with, ‘Tell me about a time when …’ or ‘Describe an occasion when …’. “Questions are asked to establish various core competencies relevant to the role, such as teamwork, creativity and innovation, decision making ability, business awareness or conflict resolution. “The interviewer is looking for examples of past behaviour that demonstrate these competencies. This type of interview is fairer, more transparent and can help organisations reduce the chance of making costly hiring mistakes,” Deligiannis said. [i] New York Times, 19 June 2013, ‘In HeadHunting, Big Data May Not Be Such a Big Deal.

recruitment extra 2013 August 11

News

ICT JOB BOARDS IN MERGER iTWire has partnered with jobs board Now Hiring to merge its specialist jobs board, JobsWire, with Now Hiring’s Gurus jobs board to form a new ICT jobs website. The merged site will be known as JobsWireGurus (JWG). iTWire CEO Andrew Matler said, “The growth of the site has been phenomenal. We expected the usage of the site to be the sum of the two sites followed by perhaps some double digit month-onmonth growth. “We have actually recorded a tenfold growth over the last two months. This is largely due to quality recruiters and iTWire’s strong and growing community of readers and subscribers, including hundreds of ICT professionals across

many business and industry sectors, who also visit the JobsWireGurus website.” Matler said the popularity of the site was encouraging and supported their belief that there was room for niche specialist sites alongside LinkedIn and Seek. Matler added that a JobsWireGurus Candidate Charter underpinned the commitment of JWG’s partner recruiters to ensure all job candidates would be kept up to-date with progress during both long and short job search/placement processes. The site also offers a place where candidates can post their resumes, options for education and training, and an ICT

news section. Commenting on the new strategic partnership and the merger of JobsWire and Gurus, Now Hiring Managing Director, Mike Thomas, said: “We are very excited to be partnering with iTWire.com, the leading source for IT&T news, and it’s a perfect fit for our expert job site administration skills.” Thomas said Now Hiring was confident the JobsWireGurus proposition would “be embraced by the recruitment industry as it offers real value and flexibility.” Matler stressed that the JobsWireGurus partnership took advantage of JobsWire’s status as a Gold Partner with ITCRA and links to the association’s members nationally.

AUSTRALIA’S MOST WANTED: YOUNG, FREE, SINGLE AND MALE Young, unattached men are perceived as closest to an ‘ideal worker’ profile by Australian employers than any other demographic, research from Kronos has found. The survey, which questioned 500 employers and 2,000 employees within Australian organisations, found that employers believe being male, constantly available for work and with no outside responsibilities or interests were amongst the most desired qualities in an employee. When asked what qualities they looked for in a candidate, the study found: • 76% would like their workers to be willing to work extra hours; • 57% prefer their employees to have had unbroken employment records; and • 73% look for ambition in their employees. Not only did the research discover that employers preferred male rather than female employees (38%), but that 40% also preferred workers who did not have children. With the demography of the workforce changing a disposition towards such a profile is somewhat shortsighted says Peter Harte, vice president, AsiaPacific, Kronos.

12 August 2013 recruitment extra

“While many of the ideal characteristics are perhaps not surprising, we need to question whether these preconceived notions about the ‘ideal worker’ means that they’re missing talent that is right under their noses. Businesses can no longer ignore the huge impact of work-life balance on employee productivity and performance. They must be more agile and flexible in accommodating the life changes of their employees, or risk losing out on

the innovations and increased productivity that comes with the varied perspectives and experiences of a diverse workforce,” said Harte. More than half the surveyed employers (53%) also felt mature age workers leading up to retirement were less appealing as employees because they would expect to want to work less or have more flexible hours. “Many business decision-makers believe that a sense of dedication, commitment to work full-time, and constant ‘face-time’ in the workplace are essential to achieve effective job performance. Moreover, they assume that the best reward for a job well done is promotion to a post that’s even more demanding. Those who seem to not fit those criteria may be labelled as uninterested or unengaged,” added Harte. “Australian businesses can’t afford not to tap into women and mature-age workers and this fixation is potentially creating myopic organisations at risk of missing out on ‘hidden’ local talents, and the opportunities to build loyalty, a diverse culture, and boost productivity,” he concluded.

News

JOBSEEKER CONFIDENCE BUCKS NEGATIVE TREND The latest findings from Randstad’s Workmonitor reveal jobseeker confidence and mobility has risen to its highest level since 2011. Despite ABS reports that the national unemployment rate rose to 5.7% in June 2013 and ANZ reporting a fall in ads for the fourth consecutive month for the same period, it appears workers themselves are increasingly optimistic about their ability to find a new role in the next six months. The Randstad Mobility Index currently sits at 111 in Australia which is on a level with January 2011; the figure is also far higher than many other nations with the UK and the US both registering a 105 rating and New Zealand registering 100. The data shows workers aged between 2534 are the most confident and employees aged over 55 were the least optimistic. Steve Shepherd, Group Director of Randstad, commented, “While the mobility rating may reflect the same figure as early 2011, the factors behind the high score are significantly different than they were two years ago. “The high mobility rating recorded this quarter is fuelled primarily by two main factors, a lessening sense of job security coupled with the continued strength of

the jobs market. While employees don’t necessarily believe they will be with the same employer in the next six months, they remain confident they will be find work elsewhere. “This is slightly different to the high figures seen in 2011, when post GFC, the Australian economy was one of the strongest globally and unemployment was nearing record lows. However, what is clear is Australian workers still hold faith in the local jobs market. While [the latest] ABS Labour Statistics might show a slight softening in employment figures, local workers still appreciate its comparative strength globally,” he said. Despite the seemingly high level of confidence shown in the poll, the Index also finds a growing number of Australians are feeling insecure in their current job. Almost two thirds of Australians (62%) believe job security no longer exists in the current market, a sentiment felt particularly strongly amongst older workers. Younger employees were slightly more optimistic, with 50% believing workplace security is a thing of the past. Within APAC Australians have a greater sense of job security than their counterparts

in the region. Eighty five per cent of workers in Hong Kong believe there is no such thing as job security, followed by 71% of Singaporean workers, 70% of Chinese employees and 68% of Malaysian workers. Shepherd says the strength of the local employment market remains a major distinguishing factor between the Australian market and its neighbours. “It’s clear Australia’s continued low unemployment rate is driving the upward trend in employee mobility. It’s interesting to compare this to our closest neighbours, who are equally as insecure in their current roles but don’t have the confidence in their ability to find an alternative position in the short-term. “It could also be a sign of the increase in passive jobseeking in the local market – people who aren’t actively jobseeking but would be interested in knowing more about a relevant position. This is when executive search and headhunting techniques are used. “When faced with shallow talent pools, employers often look to a range of sourcing techniques which give people more confidence in their prospects in the open market,” Shepherd concluded.

TALENT2 LEADING MPHRO IN APAC Everest Group’s PEAK Matrix published in the Multi-Process Human Resources Outsourcing (MPHRO) — Annual Report 201 : The Sun is Rising in the East places Talent2 as the second largest MPHRO service provider in Asia Pacific with a 16% market share in the emerging APAC region. The report additionally named Talent2 as one of the ‘providers of choice’ in APAC for single-country deals or deals by the Asia Pacific-headquartered multicountry companies. “We are thrilled with this outcome as we strive to grow on the successful working partnerships we have with our clients. This report highlights the

importance of the SMAC (social media, mobile solutions, analytics and cloud/ SaaS) phenomenon to buyers in MPHRO and Talent2 will continue to build our capabilities in these identified areas to optimise our offerings, and ensure strong growth for 2013-14 and beyond,” Mary Sue Rogers, Global Managing Director of HR Managed Services said. Everest Group outlined the emergence of the Asia Pacific region as a growing MPHRO market. Its figures reveal that the global market for 2012 grew at a pace of 2% (reaching US$3.18 billion in revenue), while the APAC region grew at a much higher rate of 8%. This momentum

is expected to continue with nearly a quarter of all new deals signed in 2012 originating from APAC, and the emergence of Australia, India, Japan and Singapore as epicentres of new activity in the region. “As the APAC economy continues to show higher growth compared to the western economies, there is an increasing interest among organisations operating in this market to leverage MPHRO to create a scalable HR service model based on best practices and robust technology access. The appropriate solution, however, will need to take into account the diversity and uniqueness of this market,” said Rajesh Ranjan, Vice President at Everest Group.

recruitment extra 2013 August 13

News

Top talent resides in the global village Australian recruiters are increasingly living in a global village “with access to an endless buffet of scarce skills worldwide, yet many still aren’t filling their plate”, Vanessa Raath will tell attendees at the 2nd Annual Contingent: The Flexible Workforce Conference, in Sydney this month. South African recruiter and General Manager at It’s About People, Vanessa Raath says organisations must be more willing to employ an international, contingent workforce – such as contractors, consultants or temporary workers who reside in another country or time zone to their line managers – in order to meet future skills needs. “I’m yet to find anyone in the recruitment industry who doesn’t face the daily challenge of finding scarce skills. What I’m finding is that many candidates aren’t willing to immigrate to new countries, or even new cities, these days and there is really no need for them to

uproot the whole family for the sake of a new job,” Raath said. “The global village is real. Social media has assisted in making physical distance disappear and has created a global movement of people working from home, and linking people through several online communities – all from the comfort of their couch, whether in Johannesburg, Manilla or even Paris. “By employing a global workforce you dramatically increase the size of your fishing pond and ability to find the perfect candidate. This is something that, as recruiters, we need to get better at,” Raath comntinues. Whilst acknowledging there are pros and cons to hiring international contingent workers Raath says the positives far outweigh the negatives. “It’s a proven fact that people who work from home are more productive and have faster turnaround times on projects,” Raath said.

“The bottom line benefits speak for themselves. One in five people in the US currently work from home, and each person who works from home saves the company on average US$10,000 per annum. "Studies also show those who work from home save approximately 15 working days per annum just by cutting out the commute and day to day interruptions in the office.” Raath stresses that working from home is not for everyone and says there are three traits to look out for when hiring a candidate to work remotely – the candidate should be self-motivated and proactive, aged between 35-50 (because people within this age bracket have the emotional maturity to deal with most challenging situations), and a prior business owner because people who have owned their own business have proven they are self-managed enough to work independently.

G20 LABOUR MINISTERS SIGN DECLARATION Attendees at the G20 Labour Ministers meeting held in Moscow in July stressed their commitment to solving the current unemployment challenges and adopted a Declaration that supports economic growth through job creation, labour market activation and monitoring of progress made by countries in implementing their employment commitments. The international confederation of private employment agencies (Ciett) welcomed the recommendation of the G20 labour ministers to strengthen labour markets by improving matching of labour demand and supply through effective employment services. The labour ministers recognised that cooperation between public and private employment

14 August 2013 recruitment extra

services, along with stronger links between education and work, was key to delivering effective active labour market programmes to tackle unemployment. Ciett also supported the ministers' recommendation to allow multiple forms of work as a way to increase labour market participation and reduce social exclusion and unemployment. In a statement the agency said: “Ciett fully endorses this call and stresses that multiple forms of employment are a gateway into employment. In particular, temporary agency work offers an accessible entry port into the workforce, especially for young people, and helps people remain in employment by facilitating their transitions into other employment

opportunities with the stepping stone function. “This double stepping-stone function of agency work, from unemployment to work and from one employment opportunity to the next, has been recently confirmed in the joint report by Eurociett and UNI Europa on "the role of temporary agency work and labour market transitions in Europe". The report demonstrates that temporary agency work opens the labour market to young people... and offers a stepping-stone for them to stay in employment beyond agency work.” Ciett further called on the G20 labour ministers to build on the positive recognition of the key role of private employment services in enhancing the functioning of labour markets.

News

FAPM: 300,000 jobs at stake The peak industry organisation for the car industry, the Federation of Automotive Products Manufacturers (FAPM), has warned a further 300,000 Australian jobs could be lost in the next five years as a result of the current situation in the industry. FAPM has claimed that for every individual direct job in the car industry a further four to six positions are created in ancillary organisations, including automotive parts and manufacturing, and all these roles could be at risk if major car companies scale back local production. FAPM Chief Executive Officer Richard Reilly said: “Make no mistake - people must realise that there are hundreds of

thousands of further jobs that will be lost in Australia unless critical steps are taken now to alleviate the current crisis,” he warned. “Australia is one of only 13 countries in the world that has the manufacturing capability of taking a vehicle from concept to showroom. Every car we make has 30,000 individual parts. The futures of all the people who make these components, right across the country, are in limbo right now. Moreover, automotive manufacturing has underpinned positions in other industries – including defence and agriculture. All of these roles remain uncertain unless key measures are introduced to support the Australian automotive industry.”

Election undermining hiring confidence The drawn out 2013 Federal election campaign, which unofficially began in January, has damaged employment sentiment among small and medium businesses and is holding back the Australian economy, according to Executive General Manager of Clarius Group, Paul Barbaro. “The beginning of the new financial year is traditionally a time when businesses review their budgets and ramp up their permanent staff numbers. However, this year compared to 2012, we have seen demand fall by about 10%,” Barbaro said. “Based on feedback from our cross section of clients in various business sectors, the election should be held as soon as possible. The other major concern is a belief that more aggressive changes to IR policies in Australia are urgently required. “The timing of Federal elections has a negative impact on the hiring intentions of employers at the best of times, but the

extended duration of this year’s unofficial campaign, and now the uncertainty of a poll date given the recent leadership change, has proved to be particularly damaging.” Barbaro said most of Clarius Group’s clients were feeling vulnerable in terms of the economic outlook and that subdued market conditions would continue because of political uncertainty “and the reluctance of major employment groups to invest in personnel without more detailed policy platforms being offered by either party.” Barbaro said small and medium business clients believed industrial relations policy settings needed to be adjusted at the Federal level to ensure salaries in Australia were fair but reasonable so that employment remained buoyant in all sectors. “It’s clear to us business wants more aggressive changes to IR policies in Australia to really improve confidence and increase hiring decisions,” Barbaro concluded.

Monitoring gender equality becomes law In recent years studies on the business case for encouraging gender diversity within organisations has highlighted evidence that having a diverse team not only allows organisations to access a wider talent pool and attract and retain top performers, but that diverse perspectives lead to better decision making (see recruitment extra June 2013). In a move that will monitor these findings changes to the Workplace Gender Equality Act 2012 will come into force from next year and will include the requirement that non-public sector organisations with 100 or more employees have to report annually against a set of six standardised gender equality indicators. Employers must also notify shareholders or members when they have submitted their reports to WGEA, and provide them with access to these reports. Director of the Workplace Gender Equality Agency (WGEA), Helen Conway, says these changes to corporate reporting frameworks will enable investors to better assess the gender performance of organisations. “The availability of information on gender performance under these new reporting frameworks will facilitate better informed discussions in the investment context. It will mean gender will play an important part in discussions about an organisation’s performance and its management capability,” she said. WGEA will aggregate the data it collects from organisations by industry and organisation size, and develop benchmarks so that investors will be able to determine whether a company’s gender performance compares favourably to its industry peers. “Industry specific benchmarks will make analysis and comparison much easier, and investors will be able to determine whether a company is a leader or a laggard in the gender diversity space,” concluded Conway.

recruitment extra 2013 August 15

HR Report

HR REPORT recruitment extra's monthly update on the latest news, reports and opinions on what’s happening in HR nationally, trends from overseas and briefs on the activities of equal opportunity organisations, employers, EO tribunals and agencies and governments. Reporter: Jane Dillon

Leadership black hole in Australia

Australian leadership has hit the doldrums, according to research released by business consultancy Change2020. A survey of 600 professionals revealed only 2% were able to name a “great Australian leader”. 2020 director Vicki Daniel said the results were alarming as they showed “Australians don’t value leadership and don’t know what good leadership is.” She said the situation was critical and called on business leaders to “open up a dialogue” on what good leadership is and what it should be doing. She said employees from the not-for-profit sector were more likely to identify good leaders than any other employee group, as the “key characteristic of ethical leadership was more visible”.

Leadership dissonance Daniel said Australian leaders were suffering from “dissonance” due to having a workforce comprising up to four generations of workers. “Leadership in the context of the Australian workforce appears to be creating problems,” she said. She said the competing values of each generation were often times at odds with the values of the leaders, which was creating disengagement and dissatisfaction. “Generation Y employees are very, very adept at picking up on people who aren’t genuine,” she said. “So leaders need to be genuine in their communication; they need to lose the ‘spin’.” Daniel said baby boomer leaders may have “trouble relating to Gen Y employees” as a result of their leadership heritage. “If a leader has been raised from a command and control management style, they may find it difficult to adjust to a more collegiate and diverse management style,” she said. Never-the-less, she said it was a “no brainer” a step change was required in leadership styles. “People tend to mix up the concepts of ‘leadership’ and ‘management’. Australian employees think if you are a manager on the organisational chart you are also a leader. But leaders should come from everywhere in the organisation. Leadership is a trait, not a role,” she said. Employees should work with leaders “from all surrounds” she said. “Leadership is not just a top down function.” Daniel said the key functions of good leaders were providing a strong ethical base, high energy, authenticity and having the “right image for the sector”.

16 August 2013 recruitment extra

She said internal communications had a “huge role” to play in creating engaging and inspiring leadership, but that the communication needed to be “authentic and free from spin”. “Leaders need to not be afraid to say ‘we don’t have an answer right now but we are working on it’,” she said. “Too often leaders are afraid to be honest with staff, and that just fuels the rumour mill.”

E-learning a training boost

A Workplace Research Centre (WRC) report has found e-learning boosts workers’ access to training and motivation to learn. The E-learning’s contribution to workforce development report was commissioned by the National VET E-Learning Strategy. It assessed the ways e-learning can help overcome workforce development challenges for individuals, workplaces and industry. The report found e-learning can help improve access to and motivation to engage with training because of flexibility of access. Motivation to engage with training was improved by e-learning’s ability to develop supportive environments, provide greater awareness of training and ensure consistent training across organisations.

Productivity benefits include confidence Workplaces using e-learning showed its benefits to productivity including fewer disruptions of work schedules to conduct training, and deeper learning and application of learning, with “a consequent reduction of mistakes and injuries across the sectors studied”. The report claims e-learning has indirect benefits of greater confidence with technology and faster integration of technology into work processes. The research looked at e-learning’s contribution to workforce development in three case-study sectors. For the aged and community services sector, the report found the main benefits of e-learning were that it allowed multi-site training, enabled use of technology like electronic patient records and encouraged older workers to re-engage with training. The renewable energy sector showed e-learning reduced time away from work and allowed for more flexible options for professional development. In the glass and glazing manufacturing industry, e-learning: helped address skill shortages; was particularly attractive to younger workers, especially apprentices; and used multiple formats and media to overcome literacy difficulties.

HR Report

‘Much work’ needed in third sector

HR managers in the Not-For-Profit sector should ‘play to their strengths’ and create a value proposition for older female workers and part-time workers, according to recent research. A Maxxia Workplace Insights study found nearly 70% of women aged 55 and older were extremely happy with their jobs and 58% were extremely happy with their employers. While job satisfaction across the NFP sector was higher among NFP employees, the study also found more than 30% thought they had poor career progression and were underpaid. Talent shortage and staff retention is not a stranger to NFP HR managers, with 45% recording it as their most significant challenge.

Intrinsic rewards double for NFP employees However, the intrinsic rewards NFP employees feel in their job is more than double that of other sectors. NFP employees feel their contribution at work has a positive impact twice as often as that of other sector employees and 20% of NFP employees feel a sense of belonging in their workplace compared to 11% of other employees. Fewer than 5% of NFP employees said they didn’t see themselves working for their employer in the next 12 months and nearly 10% said their employer was a “great place to work”. Maxxia CEO Michael Kay said the study was the first of its kind and provided comprehensive data to help inform the recruitment and HR practices of a sector worth an estimated $43bn to Australia. While job satisfaction across the board was higher among NFP employees, the study found NFP managers were 14% more likely to jump ship to another sector. NFP management was 14% more likely to perceive it did not have clear performance targets and 12% more likely to perceive it did not get regular feedback.

Opportunities for HR identified The report said the results showed an opportunity for HR managers. “Addressing the disparity between NFP and total workforce managers on these factors could help the sector to increase its retention of managerial talent. Increased retention would also reduce the costs of recruiting replacement staff, and the opportunity cost of losing employees who have acquired a significant amount of sector knowledge and experience,” it said. The Australian Council of Social Service CEO Dr Cassandra Goldie said the report confirmed staff retention and recruitment was a “major issue”. “Clearly we need to work harder to ensure we can attract and retain the right mix of skilled and qualified staff. This is critical for the long-term sustainability of our vital sector, as well as its effectiveness,” she said. The wider Not-For-Profit sector employs nearly one million people, or around 8% of Australia’s total workforce. She said the research revealed there was “much work to be done to improve the systems that will keep good employees, especially in terms of career development and performance review processes, and remuneration.”

Australia’s $5.2bn drugs and alcohol habit

Alcohol and drugs use is costing Australian businesses $5.2 billion a year in lost productivity and absenteeism, according to the Australian Drug Foundation (ADF). Workplace drugs and alcohol experts Dr Ken Pidd and Professor Ann Roche prepared a report for the ADF which found alcohol use is responsible for 5% of all Australian workplace deaths and up to 11% of all non-fatal injuries. ADF head of workplace services Phillip Collins said the annual cost of absenteeism due to alcohol alone was estimated at up to $1.2bn. “The cost of lost productivity or absenteeism due to alcohol and other drugs are well hidden in most businesses,” Collins said. “Employers and HR departments simply don’t have enough information to attribute the days off work their staff are missing as being due to drug and alcohol use.” Collins said it was “misguided” for businesses to respond by targeting individual ‘problem’ employees. The report finds, although heavy drinkers take more days off due to their drinking compared to employees who drink less, “the much larger number of employees who only occasionally drink at high risk levels account for the majority of alcohol related absenteeism”. The report said there has been an increase in workplace drug testing. However, it claimed “reviews of evaluation research consistently find few conclusions can be drawn regarding the efficacy of testing”. It recommends testing be implemented with education and training.

Unions linked to worker health and economic growth

The “will of management to prevent and respond to stressful conditions” and greater union density in an organisation promote worker health and national productivity, a data analysis of 31 European countries has found. Professor Maureen Dollard, who presented the research at the 10th Industrial and Organisational Psychology Conference in Perth last week (July 5), and Daniel Neser from the Centre for Applied Psychological Research at the University of South Australia, said the data revealed national levels of worker health were positively linked to a country’s gross domestic product. Dollard and Neser said workplace factors at the “macro level” were more important for employee health than the quality of individual workplace conditions. Union density was classified as a macro factor for increasing wages and benefits, compensation and workplace protection. “Union density likely influences workplace union activity and increases government labour policy enforcement above the role of health and safety committees,” the authors said. Worker representation could “alter and shape work conditions” that impact the health of the workforce. The study revealed the “psychosocial safety climate” of an organisation, reflecting the “will of management to prevent and respond to stressful conditions”, was as important as union representation in bolstering the health of workers. “A healthy workforce is good for the economy,” the authors said.

HR Report is an independent fortnightly new service published by Thomson Reuters. The service is available in paper and email format. For further details visit: www.thomsonreuters.com.au/hr-report-email.

recruitment extra 2013 August 17

Online Recruitment

Year-on-Year market share for Business and Finance Employment and Training, in All Categories Based on market share of visits to the industry. Monthly rankings for the month of June 2013 This category features online job databases, employment classified websites, employment agencies and human resource management services. It also includes any websites related to job seeking, vocational training and career development. Rank

Website

Domain

Visits

Seek Australia

www.seek.com.au

27.29%

www.linkedin.com

18.84%

jobrapido Australia

au.jobrapido.com

4.40%

CareerOne

www.careerone.com.au

3.78%

MyCareer

www.mycareer.com.au

3.01%

Job Seeker

www.jobseeker.com.au

2.94%

indeed Australia

www.indeed.com.au

2.66%

Australian JobSearch

www.jobsearch.gov.au

2.09%

SimplyHired Australia

www.simplyhired.com.au

1.93%

Indeed Australia

au.indeed.com

1.18%

Woolworths - Careers

www.wowcareers.com.au

1.11%

Hays Personnel Services

www.hays.com.au

0.73%

indeed

www.indeed.com

0.67%

Star Now Australia

www.starnow.com.au

0.67%

Jobs.com.au

www.jobs.com.au

0.64%

Fair Work Online

www.fairwork.gov.au

0.64%

jobsearch.com.au

www.jobsearch.com.au

0.63%

SpotJobs

www.spotjobs.com

0.53%

Jobs.wa.gov.au

www.jobs.wa.gov.au

0.53%

Mining Australia

www.australia-mining.com

0.52%

Date

Market Share

Date

Market Share

Jun-12

0.77%

Jan-13

0.94%

Jul-12

0.78%

Feb-13

0.99%

Aug-12

0.78%

Mar-13

0.95%

Sep-12

0.78%

Apr-13

0.96%

Oct-12

0.84%

May-13

0.99%

Nov-12

0.84%

Jun-13

0.93%

Dec-12

0.69%

18 August 2013 recruitment extra

LAW FEATURE

Employment law roundup 2013 By Andrew Tobin, Partner, HopgoodGanim and Rosalie Cattermole, Senior Associate, HopgoodGanim

ommencement of the new financial year brings with it changes to minimum wages; national unfair dismissal laws and various tax thresholds and rates. The following is a summary of the significant changes about which employers should now be aware.

Increases to minimum wage rates for national system employers (all States/ Territories bar Western Australia (WA)) In accordance with the 2013 annual wage review of the Fair Work Commission, the following changes take effect to minimum wages from the first full pay period on, or after, 1 July 2013: • All modern award rates of pay have increased by 2.6% with flow-through proportionate increases to hourly minimum wages and annual salaries. • The national minimum wage for adults working full time (38 hours per week) increased from $606.40 to $622.20. • The minimum hourly rate for permanent national system employees increased from $15.96 to $16.37 per hour. • The default casual loading for award/ agreement free casual employees increased from 23% to 24%. The minimum hourly rate for casual employees to whom a modern award applies will continue to be subject to the modern award standard casual 25% loading. The changes apply to all workers in the national system including juniors, trainees, differently abled employees and those paid under piecework arrangements. Changes to minimum wage rates for WA system employers For those employers in Western Australia outside the national system, from 1 July 2013 the WA minimum wage increased from $627.70 to $645.90 per week (ie the WA minimum wage is $23.70 per week higher than the national minimum wage). In the WA private sector the change will apply mainly to employers who are not companies, such as sole traders and partnerships of individuals. Changes to federal unfair dismissal jurisdiction The high-income threshold under the Fair

Work Act increased from 1 July 2013 to $129,300 (up from $123,300). Employees not covered by an award or statutory workplace agreement do not have access to the Federal unfair dismissal jurisdiction if their annual rate of earnings exceeds the high income threshold. The change also: • means that the maximum compensation that might be awarded in an unfair dismissal claim has increased to $64,650 (half the threshold and up from $61,650); and • may affect the application of awards and award entitlements to high income employees whose industrial arrangements incorporate a guarantee of annual earnings at a level intended to exceed the threshold. Key tax rate and threshold changes from 1 July 2013: • The employment termination payment cap amount has increased to $180,000 (up from $175,000). • The superannuation charge percentage increased to 9.25% (up from 9%). • The superannuation maximum contribution base will increase to $48,040 per quarter. • The base amount for the tax free part of a genuine redundancy payment and an early retirement scheme payment increased to $9,246, and $4,624 for each completed year of service. • Superannuation contribution caps for the 2013 income year: - Concessional contributions cap: $25,000 - Non concessional contributions cap: $150,000 • The concessional contributions cap increased to $35,000 for older Australians, for the 2013-2014 income year, where the individual is 59 years or over on 30 June 2013. Key employment tax developments 2013 PAYG withholding schedules made The Commissioner of Taxation has released the new withholding schedules to apply from 1 July 2013. The withholding schedules set out the amounts, formulas and procedures to be used for

calculating the amount to be withheld from withholding payments, including, for example, salary and wages and employment termination payments. Medicare levy The Medicare levy will increase from 1.5% to 2% of taxable income for the 2014-2015 income year and later income years. The increase in the Medicare levy will have significant flow on effects including for future PAYG withholding obligations and fringe benefits tax. Reforms for in house fringe benefits On 22 October 2012, as part of the 2012 2013 Mid Year Economic and Fiscal Outlook, the Federal Government announced that the concessional tax treatment of in house fringe benefits would be removed if they are accessed through a salary sacrifice arrangement. UPDATE: The Tax Laws Amendment (2012 Measures No.6) Bill 2012, to implement the proposed changes, has passed both houses and has received Royal Assent. The amendments will apply retrospectively to benefits provided on or after 22 October 2012, being the date the changes were announced. However, for salary packaging arrangements entered into prior to 22 October 2012, the new rules will not apply until the earlier of 1 April 2014, or the first time on or after 22 October 2012 that the existing salary packaging arrangement is varied in a material way. For a complete version of this article please visit: http://www.hopgoodganim.com.au.  Andrew Tobin head of HopgoodGanim’s Industrial and Employment Law practice, advises clients on all aspects of workplace law, equal opportunity and discrimination law, safety and privacy. From front-end bargaining and agreement composition to dispute management, Andrew has extensive experience advising across a broad range of sectors. Rosalie Cattermole advises on a wide range of complex taxation issues including income tax, capital gains tax, GST and stamp duty. She has assisted individual clients, small business owners, large corporations and government owned corporations with a focus on the resources and energy, transport and infrastructure industries.

recruitment extra 2013 August 19

LAW FEATURE

COULD YOUR CONTRACTORS ACTUALLY BE EMPLOYEES? By Joanna Oakey, Director, Aspect Legal

his year the government has continued its crackdown on independent contracting. In this article we cover some recent cases that have been in the spotlight in this area, outline relevant legislation, and discuss the latest activity by the regulators.

The risks Just because you call someone working for you a “contractor” doesn’t mean that they are a true contractor in the eyes of the law. This can have implications on your obligations for workers compensation insurance, superannuation payments and your potential liability to have to back pay other employee entitlements such as annual and long service leave – in addition to the “contracting” fees already paid. The recent case of On Calli demonstrates some of the risks for businesses and how costly it can potentially be if you get it wrong. It also serves as a reminder that the courts don’t necessarily care what you or your “contractor” call the relationship. On Call operated an interpreting and translating business. They engaged interpreters and translators as independent contractors, and applied for and received a ruling from the ATO confirming that their workers were independent contractors. On this basis, On Call didn’t make superannuation contributions.

20 August 2013 recruitment extra

Several years later, the Tax Commissioner reconsidered the position and came to the new view that the interpreters were actually employees within the meaning of the superannuation legislation. Consequently the Tax Commissioner assessed that On Call was required to pay superannuation contributions for the previous five year period for their workers (more than 2,500 people). On Call challenged the finding, and the matter ended up before the Federal Court. The court didn’t care that the interpreters were called independent contractors on paper, or that the workers viewed themselves as independent contractors. Instead, the court looked at the real substance of their working relationship, and whether it “smelled” like an employee: “the parties cannot create something which has every feature of a rooster, but call it a duck and insist that everybody else recognise it as a duck”.ii After reviewing a number of elements of the relationship between the workers and On Call, the court decided that even though the interpreters treated themselves as contractors, liased with the ATO as if they were contractors, and had their own ABNs, on the basis of all the evidence of the actual relationship - the interpreters weren’t independent contractors. As a result, On Call was liable to backpay the superannuation guarantee charge

– on top of the payments that had already been made to the staff, together with additional fees. Ace Insurance The view of the courts in On Call has been demonstrated again in the more recent case of Ace Insurance Limited v Trifunovski.iii In this case, the Full Federal Court ruled that the company’s insurance sales representatives were employees, despite signing detailed contracts that said that they were independent contractors. On close examination, it was determined that the sales representatives had no real independence or control in the conduct of their work. The company had an ongoing and intensive training program the sales representatives were required to participate in, the company was significantly involved in the daily activities of the sales representatives, and they were required to perform their services personally, that is, they were not entitled to engage someone else to perform their duties. Interestingly, the fact that two of the representatives were contracted through a company was not a barrier to finding that the relationship was in fact one of employment. The ruling cost the company more than $500,000 in accrued annual and long service leave payments for the relevant staff.

LAW FEATURE

What makes a worker an independent contractor? So what sorts of factors point to a relationship being that of an independent contractor, or that of an employee? The difficulty with this area of the law is that it can all be a bit grey. There isn’t one single factor that will definitively indicate what the nature of the relationship is, because every contractual relationship is unique. The courts tend to take into account all the circumstances of the relationship, placing emphasis on different factors depending on the circumstances. Some areas that the courts will likely look at are as follows: • Control – whether the worker decides how the work will be performed and what expertise is required, or whether the principal controls these areas • Liability and risk – whether the worker is responsible for the risk involved in the work, eg the cost of rectifying substandard work • Location and hours of work – whether the worker decides the time and place of work, or whether this is imposed • Leave entitlements – whether the worker receives paid leave • Tax and Super – whether the worker pays their own superannuation and tax, including GST • Payment – whether the worker receives a regular payment (for example hourly, weekly or monthly) or alternatively whether they are paid only when set tasks or stages of work are completed and on submission by the contractor of an invoice • Equipment and expenses – whether the worker provides their own equipment, tools or other necessities required to complete the work and is responsible for their own expenses • Scheduling – whether the worker is engaged for a set task, and whether there is any guarantee of ongoing work • Ability to work for others – whether the worker can work for more than one payer • Ability to refuse work – whether the worker is only required to perform the tasks that have been contractually agreed upon • Appointment – whether the worker finds work by promoting and

advertising their own services • Delegation – whether the worker engages or employs others to perform their duties, or is able to delegate tasks • Business expenses – whether the worker is responsible for business expenses such as advertising • Goodwill – whether goodwill is generated by the worker for their own benefit And according to Justice Buchanan in Ace Insurance, the tests that are used by the courts are becoming more complex, with the shift in emphasis on the factors listed above reflecting the “changing way work, and society in general, are organised”.iv The Full Court in this case, consistent with the trend of recent decisions, considered that there is an important distinction between contracts of service, where the personal service of an employee is required, and contracts for services, where services can be provided in a variety of ways and by a variety of different people, ie contractors. And this decision confirmed once again, that there is no one single test that can be applied to determine if an employment relationship exists, but rather, all the factors listed above are required to be weighed and considered. The Australian Government has an online tool that can help you decide if your worker is an employee or contractor. Implications It’s important that employers get this right. The consequences can be costly, including exposing not only the business, but also its directors, and its managers to penalties and liability for breaches in this area (in another recent case, the director and the HR manager of a company were both found personally liable for breaches of workplace laws by wrongly categorising workers as independent contractors). Consequences for wrongly dealing with a worker as an independent contractor rather than an employee can include: • Actions by the workers • Actions by the regulators • Penalties that can be imposed in relation to each breach • Being ordered to back pay employee entitlements (for example superannuation, annual leave, sick leave etc)

• Being ordered to pay entitlements above and beyond those that you may have thought were rolled up in the “higher” rate you were paying your contractors, and • Difficulty in things like selling a business, particularly when it comes to transferring these contractors to someone else. The courts have clearly shown that the label that you give a worker won’t have much bearing, so don’t worry so much about what you are calling it, make sure you are examining the totality of the relationship in light of the many tests set out above, setting out the important matters in a carefully drafted contract, and then reflecting that in the reality of the day to day operation of the business - because the consequences of getting the label wrong can be massive.

FOOTNOTES On Call Interpreters and Translators Agency Pty Ltd v Commissioner of Taxation (No. 3) [2011] FCA 366 (13 April 2011) ii Re Porter and Transport Workers Union of Australia (1989) 34 IR 179 iii Ace Insurance Limited v Trifunovski [2013] FCAFC3 (25 January 2013) iv Ace Insurance Limited v Trifunovski [2013] FCAFC3 at 38 i

Joanna Oakey is the director of Aspect Legal, and works with organisations ranging from SMEs through to corporates in the areas of commercial law, mergers and acquisitions, procurement, and branding. Aspect Legal provides a range of proactive and commercially driven services to assist recruitment businesses in all facets of legal business risk and growth.

recruitment extra 2013 August 21

LAW FEATURE

A STEP BY STEP GUIDE TO 457 VISAS & ILLEGAL WORKERS By Emma Mackey Director, Mackey Lawyers

VISA ISSUES Accessing the global labour market when skills shortages exist in Australia is a privilege that requires forward planning by employers and comes with sponsorship obligations. The 457 visa program is the mechanism employers must use to employ non-Australian workers. Use of the 457 program is strictly regulated by the Department of Immigration & Citizenship (DIAC), with access to the 457 program restricted to approved employers known as “sponsors”. To gain approval and comply with the 457 program requirements involves management planning and revision of standard human resources policies and procedures. It is difficult for smaller employers – especially those without dedicated human resources personnel – to meet the requirements of the 457 program easily. Recruitment consultants play an important part in helping employers access international labour markets but to save time, expense and frustration, consultants need to know that: • Size matters – In general, the larger and more sophisticated the employer, the more likely the employer is to be able to meet the requirements to become an approved sponsor. • Start-ups can experience difficulties – DIAC looks at a company’s trading history in determining whether to grant sponsorship status. Additional

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financial information is required for a start-up company to obtain sponsorship approval. As a start-up, your client should take advice about its prospects of success in the sponsorship application before commencing an international recruitment campaign. • Training – Sponsors must demonstrate that they have a commitment to training Australian workers before sponsorship approval is granted. Commitment is demonstrated by either spending one percent of their gross payroll on training Australian workers or make a contribution to a relevant industry-training fund to the value of two percent of gross payroll in the 12 months before applying for sponsorship status. Meeting one of the two training benchmark is an ongoing obligation once sponsorship status is obtained. Resources must be devoted to documenting training undertaken and expenditure on training. Small to medium sized businesses may struggle to meet this requirement. Some contractors can also be included in the assessment of gross payroll which can make it unviable for some employers to meet a training benchmark. • The position must be “skilled” – Only some positions are considered skilled under the 457 program. If the position the employer seeks to nominate is not considered “skilled”, the employer will

LAW FEATURE

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have to negotiate a Labour Agreement with DIAC - which is a long and expensive process. Your client should take advice about whether the position to be filled falls within the 457 program before instructing you to undertake overseas recruiting. Salary benchmarking – Since 2009, employers have had to show that 457 visa holders are receiving the same terms and conditions of employment that an Australian worker would receive in the same position and based in the same location before the position can be approved. A 457 position can be benchmarked by comparison with Australian workers in equivalent positions in the company. If your client does not employ Australians in equivalent positions, then your employer client may ask for your advice on this issue. Ensure that salary benchmarking is considered when the recruitment brief is put together. Benchmarking is not required for positions earning $250,000 or more annually. Salary threshold – There is a minimum salary threshold that a 457 position must exceed, in addition to salary benchmarking. This is called the Temporary Skilled Migration Income Threshold or “TSMIT”. TSMIT is indexed annually on 1 July. The current TSMIT is $53,900. This is a crucial factor in the recruitment brief. Labour market testing – A new requirement, employers must now show at the nomination stage that they have attempted to fill the position with an Australian worker before applying for a 457 visa for a nonAustralian worker. This is commonly done by advertising the position in Australia. Obviously local advertising and candidate identification should be undertaken and documented before considering international candidates. Health and character of visa applicant and dependent family – Often health conditions or criminal convictions will not be relevant or important to an employer, but they will be critical to the success of a visa application. The health and character requirements apply not only to the direct employee but also to dependent family members included in the 457

recruitment extra 2013 August 23

LAW FEATURE

visa application. It is important to canvass health and character issues with candidates before an offer of employment is made to avoid delay, the distress of visa refusal or the imposition of a health undertaking on the employer. There are countless examples of candidates who have resigned from their position to take up an offer of employment in Australia, only to find that their visa application fails on health or character grounds. • Skills & English language assessment – Some visa applicants will require a skills and/or English language assessment. These can take some time, depending on where the candidate is located. Forward planning in this regard is important.

ILLEGAL WORKERS DIAC figures show that there are more than 500,000 non-citizens in Australia each year holding a temporary visa with permission to work. All of these temporary visas carry conditional permission to work. For example: • Most student visa holders may work no more than 40 hours in any fortnight during the academic term • Working Holiday visas holders can work for one employer for no more than six months; and • Primary 457 visa holders can only

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work for their sponsor in a position nominated at the time of application (there is no such restriction on secondary 457 visa holders). If temporary visa holders work beyond the scope of their permission to work, they are in breach of their work-related visa condition. Working in breach of visa conditions makes workers and their employers liable to penalties. In addition, it is estimated that there are presently about 100,000 people working in Australia who hold no visa at all. Without a visa, these workers have no permission to be in Australia or to work. Again, both the work and employer are liable to penalties if detected. For the purposes of this article “illegal worker” is the term used to describe both workers working in breach of their permission to work conditions on a valid visa and those non-Australians who work while holding no visa at all. With more than 600,000 nonAustralian workers in the workforce with conditional or no permission to work, the issue of checking visa holders’ permission to work should be foremost in employers and recruiters’ minds. The Howells Review on illegal workers reported to the Federal Government in 2011 and concluded that the employer sanctions legislation in place at that time was not effective and further amendments to the legislation should be made. The most recent amendment made in response to the Howell Review recommendations came into effect on 1 June 2013. The amendment introduces new provisions that apply to executive officers of companies that employ illegal workers and impose civil and, in some cases, criminal liability on executive officers. Executive officers are defined to include company directors, chief executive officers, chief financial officers and company secretaries. The other group targeted in the amendment is recruiters, who can now be personally liable for referring an illegal worker. The provisions provide a statutory defence for recruiters who can show that they undertook reasonable steps at reasonable times before the referral. Recruiters need to address this issue immediately by reviewing their permission-to-work checking procedures for

all candidates. All recruiters should be registered to use DIAC’s free 24-hour online visa checking service known as “VEVO”, as a VEVO search is specifically mentioned as being a reasonable step for the purposes of the statutory defence. It is important that recruiters have sufficient understanding of the Australian immigration system to interpret the VEVO search results and training should be provided to recruiters without this knowledge. There will also be contractual ramifications for recruiters as a result of the legislative change. Executive officers of companies, in a bid to protect themselves by relying on the statutory defences available to them in the new legislation, will want to place responsibility on recruiters for ensuring that candidates referred to their companies have appropriate permission to work. DIAC is recommending to employers that they include a provision in their service contracts with recruiters placing responsibility on recruiters to check candidates’ permission to work. You should expect to be approached about this issue by your clients in the near future. If you have any concerns about the new provision affecting recruiters you should seek advice from a professional. Only registered migration agents are able to give advice in relation to immigration issues in Australia. A complete list of registered migration agents can be found on the website of the Office of the Migration Agents Registration Authority at www.mara.gov.au.  Emma Mackey is the Director of Mackey Lawyers Pty Ltd, an immigration law practice located in Melbourne, with clients around Australia and overseas. She is a registered migration agent (MARN 1169802). Her practice focuses on advising and representing employers in the temporary and permanent employer-sponsored visa categories and assisting sponsors to understand and meet their sponsorship obligations.

LAW FEATURE

The Sex Discrimination Act By Sarah Rey, Partner, and Mehnaz Yoosuf, Lawyer, at Justitia

ome important new changes to Federal Sex Discrimination Law have been passed by the Federal Parliament which will affect employers and employment agencies. The Sex Discrimination Amendment (Sexual Orientation, Gender Identity and Intersex Status) Bill 2013 (the Bill) amends the Sex Discrimination Act 1984 (Cth) (SDA) by introducing ‘sexual orientation’, ‘gender identity’ and ‘intersex status’, as new grounds upon which discrimination will be prohibited under the Act. The Bill also extends the existing ground of ‘marital status’ to ‘marital or relationship status’ in order to provide same sex de facto couples with protection from discrimination. Importantly, these changes mean that gay, lesbian, bisexual, transgender, intersex persons and same-sex de facto couples (LGBTI persons) will now be protected from discrimination in all areas of public life regulated by the SDA. The legal protection with respect to employment under the SDA applies to the entire employment cycle, from recruitment through to termination of employment, as well as the provision of training opportunities and promotions during employment. This means that if a job applicant or employee believes they have not been employed or have been denied an employment opportunity (and effectively receives less favourable treatment than other applicants or employees), they may have a claim of unlawful discrimination under the SDA. In Court, the employment agency or employer bears the onus of demonstrating that the alleged discriminatory ground was not a reason for the less favourable treatment. Examples are provided by the Explanatory Memorandum to the Bill as to how these laws may apply. For example, it would be unlawful for an employer to ask an applicant of female appearance with a masculine sounding voice for her medical history, but not to ask the same question of other applicants, in order to avoid hiring a transgender person.

Although anti-discrimination legislation in Australian States and Territories provide similar protections against discrimination on the basis of a person’s ‘sexual orientation’ and ‘gender identity’, this is the first piece of legislation which contains a separate definition for ‘intersex status’. These grounds are defined as follows. Sexual Orientation is defined as a ‘person’s sexual orientation towards (a) persons of the same sex; or (b) persons of a different sex; or (c) persons of the same sex or persons of a different sex’. The definition is intended to apply to people who are homosexual, lesbian, bisexual or heterosexual, without using these labels which, according to the Explanatory Memorandum, some people find offensive and can be inaccurate. Gender identity is defined as the ‘genderrelated identity, appearance or mannerisms or other gender-related characteristics of a person (whether by way of medical intervention or not), with or without regard to the person’s designated sex at birth’. This definition includes people who ‘identify’ with a gender that may not be the one they were either partially or wholly born with. Intersex status is defined as the ‘status of having physical, hormonal or genetic features that are: (a) neither wholly female nor wholly male; or (b) a combination of female and male; or (c) neither female nor male’. This amendment recognises ‘intersex status’ as a biological condition as opposed to how a person may present to, or identify within society. Employment agencies and employers will be required to have a more sophisticated knowledge of these definitions. They should not fall into the trap of making judgements about a person in terms of the way they look and present, instead of determining whether the person can carry out the inherent requirements of the role. Additionally, employers should note that the exemption from discrimination complaints for religious bodies insofar as concerns employment decisions, will not extend to intersex persons, as religious

organisations did not raise any doctrinal concerns about intersex persons during consultation on the amendments. In light of these changes, employers and employment agencies will want to take reasonable measures to prevent their staff from acting in a discriminatory way. It will be important to update policies with the additional grounds and to train employees in relation to these amendments. Employers and employment agencies may also want to consider: • whether the ‘intersex status’ option needs to be included in forms and record-keeping mechanisms where it is necessary to keep this type of information • training staff to speak confidently and appropriately with LBGTI job applicants and employees • whether the correct pronoun is being used when communicating with transgender and intersex status persons. The Victorian Equal Opportunity and Human Rights Commission has also issued guidelines on the recruitment process and the employment of transgender employees in order to provide assistance to employers to ensure best practice in compliance with their obligations. 

Sarah Rey and Mehnaz Yoosuf are employment lawyers who advise employers and recruiters on their policies and training, as well as assisting with the defence of claims relating to dismissal, discrimination, bullying and adverse action. Justitia is a leading employment, discrimination and labour relations law firm based in Melbourne which works with companies, government and not for profits throughout Australia. The firm provides a full range of advisory and litigation services, including handling employee complaints and responding to regulators.

recruitment extra 2013 August 25

LAW FEATURE

COMPLIANCE IS CRITICAL TO BUSINESS SUCCESS By Lincoln Crawley, Managing Director, ManpowerGroup Australia & New Zealand and RCSA President

here are so many factors that go into a successful recruitment business: strong sales skills, candidate care and talented people. And as dull as it may sound, a culture of good legal compliance is just as important to success. The recruitment profession sits at the intersection of many areas of law. From the moment a candidate walks into our office and until the time they are onboarded, we need to comply with a raft of laws, from privacy through to antidiscrimination rules. On the client side, we have to consider everything from coldcalling rules through to complex contract negotiations and workplace safety. For a recruitment professional who simply wants to get on with the job of recruiting, this can seem like a big distraction. And if it seems like it gets harder all the time – well, it actually does. The current Labor Federal Government has brought in around 2,100 additional regulations. So it’s not surprising that keeping up with the law can seem like a full-time job in itself. Compliance is essential – no excuses I have great confidence in the honesty and integrity of people in general. As a result, breaches of the law that we see in the recruitment industry are, by and large, caused by a lack of knowledge, rather than something more sinister. This is not to say we should let people off the hook, simply because they have good intentions. Recruitment industry leaders have a responsibility to educate their consultants properly, and to create processes and frameworks that make it easy for everyone to do to the right thing. But there’s no doubt that in today’s challenging market, this is an ongoing challenge. The downturn in our industry, precipitated by the GFC and more recently the downturn in mining, has made it harder than ever to grow revenue, let alone get to grips with reams of new legislation. There is real risk that things may slip through the cracks.

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So how do we keep up with compliance, when we are so focused on the main game of delivering value to clients and candidates profitably? I would argue that they are not mutually exclusive. The key is to get the fundamentals right – for example, by building good compliance into the culture of your business. This means creating an environment where it’s ok to ask questions about compliance, or it’s quite normal to spend time reading a contract properly. Hot spots for compliance Regulations to limit recruitment companies’ use of 457 visas were brought in several years ago, despite a lack of evidence that there was widespread abuse. A small minority of rogue operators, labelled as ‘labour hire’ companies, acted illegally. But the on-hire sector as a whole was curtailed, and subjected to the need for labour agreements to bring in on-hire employees. Knowing that this is the kind of response to any hint of poor business practices, we must ensure our standards are above reproach. We must not only act ethically and professionally – we must be seen to be acting this way. How we access government funding is another important area. Subsidised training programs do a great deal of good for candidates who are keen to build their skills, and for clients who want access to those skills. If recruitment professionals can play a role in facilitating this process, it’s a value-add for all parties. But we need to ensure it’s done with compliance in mind. As with any taxpayer funding, there is a high level of transparency expected, and the onus is on recruiters to ensure they have ticked all the boxes. Get it wrong, and the penalties are significant – not to mention the cost of brand damage. When it comes to protecting your own business, it’s essential to pay attention to client contracts. It’s surprising that any business would agree to terms such as the ‘hold harmless’ clause – yet we still see agencies taking on liability for their

on-hired staff, even when a loss is due to the direct instruction of their host manager. Good contract management is essential to avoiding unfair terms like this. Getting it right While there’s no silver bullet for managing compliance, there are resources available to help you. The first place to start is with the RCSA Code for Professional Practice. All Members are bound by the Code, and training in the Code is a membership requirement. Any Members who breach the Code are subject to sanctions and penalties. You can also stay up to date with the information from the RCSA, as well as professional bodies such as the Australian Human Resources Institute and the Australian Industry Group. It pays to keep an eye on these sources, and to follow the major issues covered in the recruitment industry and business media. At an organisational level, there should be at least one person responsible for keeping abreast of regulatory changes and compliance, and sharing this internally. Internal and external audit processes should cover how compliance is managed and communicated, and the senior leadership team needs to ensure that it’s a priority. Ultimately, compliance is everyone’s job, and an important part of being a true professional.  Lincoln Crawley joined ManpowerGroup in 1997. He established Manpower’s IT practice in New Zealand and was promoted to Country Manager. In 2001, Lincoln moved to Australia and set up Manpower’s Managed Services & RPO business and was subsequently appointed as the Director of Sales. Following a two year assignment with Manpower Asia Pacific Lincoln returned to Australia in 2008 as Managing Director, ManpowerGroup Australia & New Zealand. Lincoln is President of the RCSA and publishes Mining for Skills.

Social LAW Recruiting FEATURE

Privacy you say? By Richard Spencer, Director, TWOSocial

ne man’s terrorist is another man’s freedom fighter. That phrase, written in 1975 by Gerald Seymour in his book Harry’s Game, is one of those that we know to be true, but when push comes to shove, we find very hard to get to grips with. That phrase intelligently puts you on the side of right and justice regardless of your point of view. Arguably the same position that many people find themselves on with regards privacy – certainly at a macro level. Ask yourself where you stand on the moral and ethical positions of Bradley Manning, Julian Assange and now Edward Snowden and indeed whether in your opinion, the end justifies the means? Is their release of private, nationally sensitive information acceptable to you? Invasion of privacy may well be much more closely akin to terrorism than we would first credit. It can have macro societal impact as in the examples mentioned earlier, but often the most important and less well reported effects are at a micro level, with unauthorised access to private information often having a profound effect on people’s lives. Digital platforms are enabling the capture of more and more personal data more easily, and the extraordinary amounts of information many people now post about themselves, their friends and their family through social networks is incredible. Most of us would probably indicate if asked, that we are very worried about digital privacy, but interestingly, how much of us actually do anything about our concerns? A recent study by the Centre for Internet Safety indicated that 86% of Australians nominated identity theft as their biggest concern with regards digital privacy, closely followed by loss of financial information (83%). Reassuringly those surveyed rated the financial sector as the most secure online, although with only

a 42% approval rating. However, social media was clearly the least trusted sector online with a score of 1%, and 61% of respondents nominated the social media industry as having the worst privacy practices. The report doesn’t specifically mention the recruitment industry but, as a sector, through initiatives like the Recruitment Industry Privacy Code which applies to the collection, use, security and disclosure of personal information, recruitment has always been sensitive to privacy. And it’s really the need to be seen to be sensitive as much as anything else which is critical in this issue, as the individuals with the most to lose are often the ones who are actually posting the sensitive information online about themselves. In February of this year, the Guardian in London reported on a new piece of software developed by Raytheon, named Riot (Rapid Information Overlay Technology). The Riot software appears to be Big Brother incarnate driven by big data analysis. By mining data from social networks like Facebook and Twitter, the software tracks individual’s movement and aims to predict future behaviours. And in demo alone, based on tracking one of their own employees, Raytheon seemed able to demonstrate how easy it is to track someone’s physical movements and interests through digital, specifically social media, data mining. Whilst it is the ‘Google for Spies’ issue that concerned the Guardian, it is a fairly short step to instigating the tracking of employees and contractors through similar software and further, a deeper vetting of potential hires based not only on the information they post on social media channels but also their travel habits, social life and vulnerabilities. There are any number of potential reasons to legitimately track an employee’s social media usage,

particularly in the workplace, productivity, reputation management and the protection of sensitive information to name but a few, but screening social media sites before making an offer to hire is a legal grey area. Under the Privacy Act a potential employer and a recruiter must: inform a candidate that they have collected personal information about them; explain the purpose of gathering the information; and tell the candidate who else will see the information. Therefore, potential employers and recruiters who access social networks without divulging this information to an applicant could be in breach of the Act. It is fair to assume that thousands of hiring managers and recruiters would be unaware of their responsibilities, but to date the Office of the Privacy Commissioner is yet to receive a single complaint from a job seeker. We are living in a digital age and the sheer volume of user generated content online is only going to increase. What we do with that information and how we use it, will help define how well we adapt to this brave new world in both business and a societal context. 

Richard Spencer is a Director of TWO Social, a specialist Social Media agency. As well as being a regular media commentator, Richard advises organisations on how to maximise their opportunities across Social channels. Prior to founding TWO Social, Richard was Senior Vice President, Global Marketing and Interactive with TMP Worldwide, Global Head of Marketing for Michael Page and has been working in digital communications since 1996.

recruitment extra 2013 August 27

The Panel

Damien Ross Director and General Manager ITCOM Australia

Much has been touted about the mature-age workforce being the way of the future but the reality seems far different. What issues do you believe prevent companies from seeing mature-age workers as an attractive hiring proposition?

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The Australian workplace culture and current demographic profile has created some definite challenges for mature-aged workers. This is evidenced by the fact that this segment is unemployed longer than their younger counterparts. Many mature-aged, long term unemployed people end up dropping out of the workforce altogether, and prematurely retiring, because rejection from numerous jobs shatters their confidence in their abilities. According to the Australian Bureau of Statistics, the percentage of Australians between the age of 55 and 65 is 13.5%. This percentage continues to increase, as the Baby Boomer generation moves into their sixties and beyond. With ever increasing life expectancy, and volatile markets impacting on superannuation saving, we expect a propensity for older workers to put off retirement and the number of mature workers in the workforce to be rising in the future. Companies who donâ&#x20AC;&#x2122;t have a plan to embrace and leverage their skills are missing out on the benefits from this experienced and loyal segment of the workforce. Mature-age workers in the IT world are often looking for flexible project based assignments. Rather than asking for two to three day a week assignment I often advise that they may have more success by offering their services in three to nine month assignments followed by extended breaks of 2-3 months. Due to the budget and time restrictions of many IT projects it is more often than not difficult to place people into part-time positions. Another reason why mature workers find it hard to gain employment is because managers have difficulty perceiving a work culture where they are managing a team member who is older and more experienced than they are. It is important for managers to overcome this perception; finding the best candidate is about matching the right competencies, values and attitude, irrespective of age. While the average retirement age continues to lift, there are a number of government initiatives and specialist agencies targeting the mature age demographic. Mature workers are often more loyal, have higher levels of customer service and combined with their vast experience can be an excellent asset to any organisations. At Itcom we have a great spread of Gen Xers and Gen Yers as well as a number of mature aged workers. These individuals have proven invaluable in their ability to steady the ship and provide excellent mentoring and training to their younger colleagues. Damien is a Human Resource professional with a 15 year career in recruitment to various business sectors including IT, retail, banking, insurance, telecommunications, transport and distribution. Damien has performed the role of Director and General Manager for national IT recruitment firm Itcom Australia for the past seven years in which time it has grown turnover to $50 million. Itcom has developed an excellent reputation with its national client base and has been the winner the SEEK Sara Legend award (three years in a row), Recruitment Excellence Award and a BRW Fast 100 (two years in a row). Damien is a board member of ITCRA.

The Panel

Ben Fuller Sales Director Bullhorn Australia While there are benefits to hiring mature-age workers due to their extensive experience, there are a number of reasons why companies are hesitant to employ them. Many mature workers have an excellent track record in their work, but promoting their ability to adapt remains a key issue as modern workplaces have become a fast-paced setting of constant change. New technologies and devices in particular are being introduced regularly to increase productivity and replace timeconsuming and manual processes. Being able to adapt quickly to these new developments is second nature to younger generations which makes them attractive candidates for hiring managers. Mature-aged workers on the other hand are often accused of being creatures of habit that follow certain processes and lack the ambition to learn new ways to complete a task. Similarly, where Gen Ys are mobile and happy to work longer hours, older professionals are stereotypically understood to be reluctant to the idea of working late or relocating to pursue a career opportunity. The financial aspect of employing a mature worker is also a key consideration for hiring managers as salary expectations tend to be much higher for experienced mature-age workers in comparison to younger generations. In order to change these misconceptions about their abilities and prove their value to a company, mature workers need to change the way they present themselves to organisations and show that they too have the dynamic game-changing and risktaking capabilities that Gen Ys are famous for. To shift the external perception of their ability, older professionals need to rethink their job hunting approach. Rather than relying on their existing skillset, mature workers need to demonstrate the ability to adapt easily and embrace new technologies such as social networking. This can be as simple as having a complete LinkedIn account. In addition, rather than priding themselves on a long work history and experience, mature-aged workers need to have a willingness to learn from younger generations when it comes to technology and innovation in order to keep up in an ever-changing environment. Ben is a global expert in online recruiting software systems, and is responsible for launching and growing the companyâ&#x20AC;&#x2122;s operations in Australia. Working with Bullhorn for over 10 years,Ben has gained specialist knowledge in online recruitment software, social recruiting and an indepth understanding of challenges faced by recruiters in Australia. Ben completed a Bachelor of Science in Business Administration at University of Vermont in Burlington, USA.

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recruitment extra 2013 August 29

Head to Head

COMPLIANCE REQUIREMENTS - no escape for business owners

My head-to-head partner this month is Dianne Gibert, founder and Managing Director of Certex International, which recruitment organisations will know as the provider of the RCSA’s Service Delivery Standard and ITCRA’s iDiagnostic. Rod: Dianne, your organisation must be at the leading edge of how increased legislation and compliance is impacting recruitment organisations. Dianne: Very much so, Rod. There is quite a significant shift in the level and impact of compliance requirements today than when I first started in this industry around 10 years ago. Back then, recruitment agencies had little awareness about their legal obligations, and their practices and protocols did not place a great emphasis on complying with legislative demands. It was more about networking than procedures. This has certainly changed in recent times and generally I see very different behaviour across the recruitment culture today; the industry has clamped down on legal requirements across a range of different areas including safety, privacy, immigration and superannuation, and recruitment agencies face much more severe penalties for non-compliance. The agencies themselves therefore, have had to become more astute and thorough in reviewing their procedures for compliance, and auditors have had to be even more comprehensive when conducting their audits. Rod: The consequence of all of these compliance requirements is that the barriers to entry to the recruitment industry have risen. There are two ways of looking at this change. The most immediate view is that it is

30 August 2013 recruitment extra

a continuing source of frustration that every part of every business is subject to increasing red tape. And often the new compliance requirement is to satisfy minority interests and is a knee-jerk reaction to some recent event. It wears down owners and managers and stifles innovation because so much energy is devoted to these “internal” issues. The other view is that, at a macro level, increasing barriers to entry is great for the long-term health and viability of the recruitment industry. Even without direct regulation the industry is becoming far more structured and highly regulated. Clients know it is a regulated environment and it will be harder for fly-by-night organisations to gain credibility when the economic conditions become positive, as they will do. Other industries have shown that increased barriers to entry have led to a more professional industry that can brand, promote and lobby effectively. Dianne: Unfortunately one of the pressure points is on small businesses. Unless they have the business expertise and resources that they can dedicate to properly structuring and managing a business with the proper systems in place, it can be difficult for them. That is not to say that all small businesses suffer, though. Some I have seen perform remarkably well, and know exactly what needs to be done to remain sustainable. Rod: What are the changes that are

having the most impact on recruitment agencies? Dianne: Recruitment agencies are now expected to thoroughly understand the impact of legal compliance and non compliance in the face of increased risk and harsher penalties. Equally, they are required to demonstrate this compliance and good service both in tenders with new clients as well as in services to existing ones. Also, clients themselves are more savvy. Whereas in the past they often assumed or were ignorant as to whether an agency was adhering to legislative principles, these days they are more knowledgeable about industry requirements and appraise an agency's compliance with necessary procedures. Often too client and agencies share responsibilities. For example, in the case of safety, the recruitment agency's responsibility of ensuring on-hire worker safety is extended to the host employer who manages these workers on site. In another example, clients often ask for more information about the candidates than privacy permits, such as age and details of criminal records. This "sharing" process requires recruitment agents to be able to negotiate a delicate balance: they must work cooperatively and openly with their clients, but also carefully and firmly draw the line between accountability and information that the client needs to know and that which is unnecessary or prohibited on privacy grounds.

Head to Head

Rod: We all hear stories of the penalties associated with some areas of compliance. Are they really that onerous? Are they really structured to be “guilty until proven innocent”? Dianne: If a client (or an auditing body) finds the recruitment agency in breach of these requirements, there is far more at stake than just the agency's reputation: they can be prevented from hiring further staff, can be fined upwards of $100,000 and even risk jail time. In areas like immigration and safety, ignorance about the law is inexcusable so it is imperative that an agency is well acquainted with any and all the changes to relevant legislative obligations. There are examples where agencies have been caught and penalised, but until now this is less common that one would expect. I think the change in the compliance climate is going to make a difference in the future, though. It will no longer be acceptable to assume that no one will find out because no one really cares anyway. The risks and the consequences are much higher than they ever were. Rod: Thankfully, there is help available. One of the biggest reasons why we can discern such an improvement in agency compliance is due to the laudable support that the RCSA and ITCRA provide for agencies. Globally, the industry associations (APSCo, REC, ASA etc) are taking a leading role in ensuring the industry keeps up in each region. Dianne: They regularly host training programs and deliver information bulletins to improve an agency's skills and understanding about their duties in law – the most recent activity is around the change to immigration law, and more training is planned in relation to the Privacy amendments. There are “health checks” and certification programs which support agencies in meeting their obligations. This chain of regulation is a risk management strategy that limits the likelihood that a regulated agency will be found in breach of legislative requirements. Does all of this activity have an impact on the “saleability” of a business? Rod: Absolutely. There is a dramatic change in how business quality is

perceived. The corporate reputation of an organisation is more transparent than ever before. It is relatively easy to see if an organisation has kept its house in order over the preceding years of operation. A few years ago certification to the recruitment delivery standard or the achievement of an appropriate quality standard was all that was available. Today when an organisation is being reviewed there is so much more. There continues to be a need to “do the right thing” but there is also an absolute need to prove that you are doing the right thing. That is a major change – the procedural systems that need to be in place will impact your organisation’s ability to survive external review. Dianne: Completely agree with you here Rod. I often say that you need appropriate procedures in place and the records to show that you do what you say you do. The procedures need to be documented, the records need to be accessible, and you need to check this regularly. It is not enough to say that you told your staff once during induction that this is what you expect of them; that is not sufficient to show compliance. It certainly begs the question whether, at the very least, good compliance processes increase the value of your business? Rod: No, not today. It just becomes an area that you need to have in place to enable your business to gain a potential buyer’s interest and then pass due diligence requirements. In the longer term, the multiple paid for recruitment organisations are likely to rise because of this increased barrier to entry. So what am I saying here: in the future, as the barriers to entry continue to rise, and legislative requirements become more onerous, fewer organisations will be able to abide by the necessary requirements to keep their business compliant with the law, and the cost of establishing a new business and investing to the required level of sophistication rises. On the other hand, agencies that diligently review and update their processes, ensuring that they tick all the right boxes with all the right people, become more and more valuable to potential buyers. The recruitment industry is at an interesting point in its evolution.

Dianne Gibert Dianne Gibert is the founder of Certex International Pty Ltd (previously Fathom Business Architects). Certex is an accredited certification body providing certification services in the RCSA SDS and other recruitment industry standards, as well as the well known 9001 Quality Management, 4801 Occupational Health and Safety and 14001 Environmental Management standards. If you have any question about the RCSA Service Delivery Standard or certification standards relevant to the recruitment industry, please contact Dianne on (03) 9585 8241 or email info@certex.com.au

Rod Hore, Executive Director, HHMC Australia Rod was born and educated in Western Australia and works with organisations throughout Australia and New Zealand from his base in Sydney. Rod has 20 years, experience in the Information Technology industry undertaking a range of sales management and leadership roles. Since 1999 Rod has been the Executive Director of HHMC Australia Pty Ltd providing advisory and M&A services to global, locally listed and private organisations in Australia and New Zealand. Much of Rod’s work is with emerging private companies, providing advisory services to owners who are seeking to define and achieve their growth ambitions. Rod is an enthusiastic supporter of the Recruitment Industry and is an accomplished presenter on topics related to small business.

recruitment extra 2013 August 31

ACT State Review

STATE OF THE STATES: Australian Capital Territory Hiring in the ACT weak

The Government is the largest employer in the nation’s capital and, with an election looming, there is uncertainty around longer-term prospects for those working in the public sector. This uncertainty inevitably leaks into other parts of the local economy, with many organisations pushing commitments to workforce hiring back to the end of 2013. The latest Manpower Employment Outlook Survey results show hiring optimism in the Australian Capital Territory will weaken in the third quarter of this year, with 13% of employers in the ACT saying they will decrease their hiring, while 17% said they will increase hiring. The resulting Net Employment Outlook of +5% is down two percentage points from last quarter and down eight percentage points from last year. As with most of the country, the ACT job market is in a slow patch and is not likely to pick up until after the election. In the public sector, the Government’s focus on increasing efficiency within their departments is leading to many employees taking on multiple responsibilities. This ‘double-hatting’ can lead to workers being overstretched, and with this in mind we are working with clients to ensure their talent strategy is able to improve efficiency in the workforce they have in order to maximise productivity. The hiring intentions in the ACT’s private sector haven’t fallen as drastically as the public sector, however, the outlook is still flat. We are not seeing many new roles come on and many contracts have been put on hold. We are seeing more job seekers competing for fewer jobs, making it hard for people trying to break into the job market. Employers are still being competitive when it comes to finding specialised talent, and there are sectors like IT, health and trades where niche roles are still needed. The economy is undergoing change, so our advice to job seekers is to focus on the areas that are growing and be willing to adapt. That may mean moving locations, retraining or updating their skills. The key is to go where the work is and develop the skills that are in demand. Manpower 2013

32 August 2013 recruitment extra

Public sector hiring strengthens

Australian Capital Territory has the strongest intentions to hire, and has seen the most significant lift in hiring expectations, up 6.1pp to 26.3%. Government sector intentions to increase headcount rose 9.1pp to 24.3%. Hudson Employment Trends, June 2013

ACT: Restrained and uncertain

Strength of economy The CommSec State of the States report 2013 lists the ACT as the second-strongest performing economy in Australia, thanks to the highest population growth rate in 21 years and an improving job market. CommSec’s chief economist Craig James comments that the ACT has seen a steady drop in its unemployment rate. He highlights the strength in terms of the jobs market and rising population growth as key factors. This has translated into a continued confidence amongst employees in their ability to find alternative employment, according to Randstad. The latest Randstad Workmonitor shows just under three quarters (74%) of ACT employees believe they could find a comparable job within the next six months, placing them amongst the most confident employees in the nation for the fourth straight quarter. Uncertainty from election Fiona Taylor, Public Sector Director at Randstad says, “The pending election and recent change of leadership has brought a period of restraint and some uncertainty to the ACT employment market particularly in longer term and permanent opportunities. Despite this, the ACT is still experiencing reasonable demand in this sector and a significant lift in short-term employment opportunities across the public and private sectors. There continues to be demand for longer-term employment in some parts of government particularly in areas affected by headline

ACT State Review

NORTHERN TERRITORY QUEENSLAND WESTERN AUSTRALIA

SOUTH AUSTRALIA

NEW SOUTH WALES

VICTORIA

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TASMANIA

legislative changes. Skills currently in high demand in the ACT include Executive Assistants, Data Operators and those with current Security Clearances. The Randstad Workmonitor shows the number of people actively looking for a new job in the ACT has spiked this quarter, with 21% of respondents now actively looking for a new position. The percentage of ACT employees who now feel uncertain in their role has also risen, with 28% holding a reasonable fear of losing their job. Experience counts More than any other state in Australia, ACT employees believe experience is a more important factor than education in finding a suitable job. Over three quarters (79%) believe experience outweighs education, while 72% also believe this holds true for young employees entering the workforce. However this is not to suggest young workers based in ACT are unable to find employment; 87% of employees believe it is good for their organisation to actively employ workers aged under 25. High demand for skilled and child care educators Housing and commercial development has been strong for the past few years and while this growth has slowed in recent months we continue to see a demand for skilled labour across this sector. The demand for quality early childhood educators in Canberra is still very high. The changes in the industry for 2014 are going to prove challenging in the short-term however the long term outlook will see a significant requirement in this sector reflecting the growth in population in the ACT. Fiona Taylor, Public Sector Director, Randstad

“Skills currently in high demand in the ACT include Executive Assistants, Data Operators and those with current Security Clearances.”

- Fiona Taylor, Public Sector Director, Randstad

ACT on the up Western Australia remains the top-performing economy in the nation with little slippage in the ranking over the past three months. However the big change has been the lift in the ranking of the ACT to second while the Northern Territory economy has slipped to third strongest. The switching in the rankings of the Northern Territory and the ACT is largely due to weakening in the performance of the job market in the Northern Territory and improvement in the job market in the ACT In the ACT, trend unemployment has fallen from 4.5% to 3.7% over the past four months but this is 9.3% above its decade average rate of 3.4%. The Commonwealth Securities quarterly ‘State of the States’ report: July 22 2013 

recruitment extra 2013 August 33

Leadership

Will Your Next Innovation Be Your Leadership Team? TIPS FOR SELECTING YOUR NEXT LEADER TO DRIVE ORGANISATIONAL INNOVATION By Bruce Watt, PhD, Managing Director, DDI Australia

n the Conference Board’s 2012 CEO Challenge study, innovation was cited by CEOs around the world as the No 1 challenge facing their organisations. Further, DDI’s 2011 Global Leadership Forecast found that fostering creativity and innovation was one of the top five critical skills leaders needed for the next three to five years – and one that they are least effective in. In a time when having a competitive advantage has never been more vital, and building a culture of innovation can fuel that competitive advantage, you not only need the right people in place to make that happen but it’s vital you have the right leader driving innovation to drive business performance. When selecting leaders whose success will depend on their effectiveness in creating an environment in which innovation thrives, a Success Profile® will incorporate competencies and other attributes that help identify those who can: • Inspire curiosity • Challenge current perspectives • Provide freedom and • Drive discipline. While the right Success Profile will help you identify those who are the right fit with your innovation strategy, it will also be important to promote diversity of thought by hiring individuals with different perspectives, backgrounds and leadership styles. The tendency to hire those too much like ourselves is a sure-fire way to kill innovation. When selecting leaders to drive innovation, it is important to look for prospective candidates who can not only take on a number of roles but also know when the right time to play a specific role might be, and to be able to effectively communicate that role to others. Look for people that can be an Innovation Sponsor – not only as an advocate or champion for an idea or project but a model of curiosity

34 August 2013 recruitment extra

DDI research has found the following executive competencies are strongly linked to the behaviours that drive innovation: • Building Organisational Talent • Business Savvy • Coaching and Developing Others • Compelling Communication • Cultivating Networks • Driving Execution • Entrepreneurship • Establishing Strategic Direction • Influence • Operational Decision Making • Selling the Vision and open-mindedness. A leader will also be a provider of resources, budget and freedom – so a leader who is able to make effective decisions, take risks, can communicate vision and develop others will be effective in this role. A leader who contributes to innovation, removes obstacles and builds systems and guidelines is an Innovation Enabler. Leaders who have entrepreneurial flair, are business savvy or are effective operational decision makers would could fit this role. Like a spider weaving a web, a leader who can break down silos and cross boundaries to have departments, functions and business units working together is an Innovation Connector. Leaders who have the ability to influence others and cultivate networks hold great power enabling innovation on an individual, team and organisational level. An Innovation Doer, as the title suggests, doesn’t just wait for others to come up with ideas, they make their own contribution and act. Those with entrepreneurship and the ability to drive execution would make effective action orientated role models when it comes to taking risks and making change happen.

What any leader should do, but especially pertinent in senior level leader roles, is to have the ability to understand what their own strengths, enabling and derailing tendencies are to assist them in their role – are they stifling the innovation of others? Do they give others the chance to have a go, to take a risk or are they approachable for others to communicate an improvement? Recruiters and hiring managers who want to hire their next Innovation Sponsor, Enabler, Connector or Doer should: • Build a Leader Success Profile linked to the organisations business drivers • Use selection tools such as behavioural interviewing, assessments and tests to simulate behaviours required of a specific role to identify leader competencies • Use data captured from selection tools to provide ongoing development of strength and gap areas Innovation can be the creation of the next big thing or a process improvement that saves 10,000 people one minute of work time. No matter how big or small, for the biggest gain to your innovation strategy is to put the smallest input upfront to select the right leader to drive innovation. 

Bruce Watt, PhD, is Managing Director of DDI Australia. He consults with clients to design and implement integrated talent systems, drawing on his expertise in designing selection systems, executive assessment and development, succession management, and driving organisational change. Bruce also maintains a number of executive coaching relationships with senior executives in a variety of industries, including banking and finance, manufacturing and mining.

On the move



ON THE

MOVE

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ASTUTE PAYROLL MAKES FIRST OF THIRTY APPOINTMENTS Astute Payroll has appointed Nicole Poulton as Key Account Manager. The appointment comes at the start of the company’s aggressive plan to appoint 30 new staff this financial year. Poulton joins Astute Payroll following over eight years in operations and payroll at IPA Personnel. Astute Payroll CEO, Nicholas Beames, said: “Nicole brings a wealth of talent to the Astute Payroll team. Her in-depth knowledge and experiences with complex payrolls, CRM’s, business analysis, and software integrations all make her a very valuable hire for us.” Recording an average growth rate of 150% over the past four years Astute Payroll recently moved into new accommodation in Melbourne’s Flinders Lane and is planning to hire an additional 29 new staff over the next 12 months.



ALL CHANGE AT BLUESTONE Bluestone Global Limited has reported yet another resignation – managing director Rabieh Krayem. Krayem had been managing director of the company since his appointment in 2011. Bluestone said Baljit Singh, chairman, and deputy chairman, Tony Leibowitz, will assume executive roles on an interim basis until the Board identifies a suitable replacement. Krayem will continue in his capacity as a director of the company in the short-term. “Rabieh informed the Board that his intention to step back from the position of managing director to rationalise his workload and travel commitments to spend more time with his family,” said Singh. The company also announced the appointment of Andrew Plympton as a new Non-Executive Director. Plympton replaces Dr Prins Ralston who announced his resignation in early June. “Andrew’s extensive experience in strategy, business, government, and stake holder relations gained from many years as Director and Executive in various industries will strengthen our Board as we plan to capitalise on the significant restructure of the business over the past two years,” said Singh.

Nicole Poulton

recruitment extra 2013 August 35

On the move

RECON RECRUITS Queensland-based Recon Solutions, who launched in Brisbane in January this year, have announced a series of appointments and the opening of a new office in Sydney. Steve Scanlan, co founder and director of Recon, told recruitment extra that the company broke even in March this year allowing them to expand and reinvest in more staff and new premises. He said the

success of the business was “all about the right people” and the appointments were “a great addition to the team.” In Queensland Dan Smith, formerly with Eden Trigg for four years, has been appointed General Manager. Steve Reynolds, previously at Optus, and Emma Candy from Interpro, have taken up positions as senior consultants; Skye Logan,

NEW ASIA PACIFIC DIRECTOR AT NES NES Global Talent has appointed Matt Underhill to the new role of Regional Director for Asia Pacific, as part of plans to become a £100 million net profit business by the year 2020. Prior to his move, Underhill spent 20 years at Hays, where his roles included Managing Director for Hays Asia and Global Managing Director for Hays Oil & Gas. Leading NES Global Talent’s 13 offices in nine countries across Asia and Australasia, Underhill will focus on growing the company’s contract and permanent staffing solutions business across core sectors including oil and gas, power and infrastructure, as well as diversifying into new markets. “NES Global Talent has an unrivalled reputation in the market and a professional, forward-looking outlook, always striving to provide the innovative solutions needed to fill the engineering skills gap,”said Underhill. “While Australia is home to some of the best engineering talent in the world, with so many projects on the go and many more in the pipeline, demand has been outstripping supply and the country is suffering from numerous skills shortages. In Asia, there are different challenges, while there are plenty of appropriately trained graduates entering the market, experienced expertise within technically demanding projects is still in short supply.

36 August 2013 recruitment extra

“I look forward to working across the Asia Pacific region, building our existing business partnerships and developing new revenue streams,” he said. Simon Coton, Managing Director at NES Global Talent, said: “We are delighted that Matt has joined us in this new strategic position. We are excited by the prospect of our Asia and Australasia operations working more closely together and believe it will help us towards our goal of achieving £100 million net profit by 2020.”

MICRODEC ADDS TO SALES TEAM Brett Cole has joined the Microdec Sales team following many years in the recruitment software industry. “I am incredibly excited to be joining the Microdec Team,” said Cole. “As one of the leading providers in the recruitment software market, it is a fantastic opportunity to sell the services of a provider that has over 30 years of experience in the market place and is a company that continues to produce a great product and maintain a sharp focus on its customers' needs and wants.”

 previously with Manpower, and Tina Walsh, ex Paxus and Finite, have been appointed as consultants in the Brisbane office. The NSW office will be managed by Ben Trigg who has previous experience as a senior manager at Hays, Clicks IT and as an associate director at Kelly Executive. Steve Scanlan will also be based in the Sydney office.

FASTTRACK EXPANDS SALES TEAM Finance and recruitment executive, Gil Sebbag has joined the FastTrack sales team to lead sales in NSW and Queensland. Sebbag will be responsible for both customer relationship management and business development. Leonie Hill, Chief Sales Officer at FastTrack said, “We are absolutely thrilled to welcome Gil into the FastTrack sales team. His extensive industry experience and reputation built with Recruitment Super is well renowned and his professional and customer centric approach absolutely aligns with our core values and brand.” Sebbag’s appointment follows the recruitment of Leonie Griffin who recently joined the sales team from Randstad with over 11 years of recruitment industry experience. “I am really enjoying being a part of the FastTrack sales team where every member embraces a customer first culture and is committed to delivering outstanding client service & candidate support,” said Griffin.



On the move

WYNN TO HEAD MICHAEL PAGE DIGITAL Michael Page Australia has launched a new national specialist offering – Michael Page Digital. The new Digital team will be managed by Richard Wynn who has worked with Michael Page Australia for over 10 years. “Over the past two to three years there has been a significant shift in demand for professionals with digital expertise across many organisations – in particular the media, retail and professional services industries. We see many companies expanding their digital budgets to grow their in-house digital teams or to work

with agencies. As many agencies have managed end-to-end digital tasks, candidates move fairly easily between agency and in-house roles,” said Wynn, Regional Director of Michael Page in Australia. “While we have recruited digital professionals for a number of years, the growing importance of digital within businesses means we now offer a dedicated specialist team that is focused exclusively on servicing the needs of both candidates and employers within this sector,” he added. The Michael Page Digital team will

Richard Wynn

operate across New South Wales and Victoria and service businesses Australiawide through their national network.

Hudson appoint General Manager, Sydney Following a comprehensive selection process Nicholas Tuckfield has been appointed as General Manager, Sydney. Tuckfield has 18 years of experience in a range of senior roles, most recently as Talent2 Managing Director South Asia responsible for Singapore and Malaysia operations. Prior to this he was Talent2 General Manager - Corporate Development, General Manager Recruitment, NSW, also with Talent2

and a Director of Margot Davis and Company in Sydney, which was acquired by Talent2. "Nicholas has an exceptional track record within the Asia Pacific recruitment industry and possesses a wealth of knowledge about the Sydney market,” said Mark Steyn, Chief Executive officer – Asia Pacific CEO. "I am personally excited about the value that Nicholas will bring to the Hudson business. He is an

exceptional leader with a proven ability to deliver results and a deep knowledge of the Sydney and key Asia Pacific markets. His expertise and experience will be a tremendous asset as we build our position as a market leader and take the Sydney business forward to its next stage of development." Tuckfield will replace Amy Yates who will return to the role of Hudson's Chief People Officer - Asia Pacific.

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editor@recruitmentextra.com.au recruitment extra 2013 August 37

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