recruitment extra June 2013

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June 2013 30172888

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News

New hiring policy for hospitality group Hospitality industry recruiter, Urban Purveyor Group, has embarked on a new way to recruit staff. Instead of concentrating on a job applicant's experience, knowledge and skills they are now hiring personnel on the basis of non-traditional attributes covering their personality, natural talents, strengths, motivations and aspirations. Director of Organisation Development & Culture, Kellie Chandler, said "We are seeking recruits based on their existing strengths, talents, passions and personalities, as hospitality skills can always be added to the right people who are willing to work in a positive team environment. "Our policy of staff playing to their strengths is a move away from the traditional recruitment practices of hospitality operators, who often just look for experience and skills in the sector. The traditional measures do not necessarily mean the new recruit will thrive in small and large restaurant and bar teams," she added. According to Chandler companies should look at hiring staff on a basis that plays to their strengths and they should not force staff to learn skills “that they may never be comfortable with". Owner of Urban Purveyor Group, Szangolies, said "Kellie and her new approach to recruitment and people management are already achieving strong results for Urban Purveyor Group, with staff and management embracing the concepts she has successfully introduced overseas.”

Professional development key for staff engagement More than three quarters of Australians prefer to gain practical experience on the job, but less than half believe their current employer is providing them with the skills to progress in their careers, according to the latest findings from the Kelly Global Workforce Index (KGWI). The international survey of around 122,000 people, including over 5,500 Australians, examined the ways employees preferred to develop their skills and their motivations for doing so. Kelly Services managing director Australia and New Zealand, Karen Colfer, says the survey underscores how important it is for Australian businesses to continue to invest in training and development for staff. “The latest KGWI survey highlights that training and professional development are not only essential to building workplace productivity, they also play an important role in the retention of employees,” says Colfer. “Almost two-thirds of Australians are focusing on workplace training as a means of advancing in their careers with their existing employer.” According to the survey, 64% of Australian employees are planning to increase their skills, ahead of Canada (60%), the UK (57%) and the US (47%). The key motivation for undertaking additional training is the opportunity for a promotion with their current employer. However, almost half believe additional training or skills development could give them the opportunity for advancement in another company or the chance to enter a new field of work. Thirty-eight percent of Australian employees are currently considering retraining to enter a new field of work. “Training does provide employees with greater opportunity to move roles,” says Karen Colfer. “But when provided as part of a total employment package that focuses on professional development, opportunities for interesting and rewarding work, and a great employment experience, training forms a critical part of an effective retention strategy.”

“The latest KGWI survey highlights that training and professional development are not only essential to building workplace productivity, they also play an important role in the retention of employees." Karen Colfer, Managing Director Australia & New Zealand, Kelly Services The survey found that most Australians like to train on the job, with 78% preferring to develop their skills through practical experience at work. Continued education is also popular, with 56% of employees indicating this is the best way to improve their skills, followed by professional certification (32%) and structured mentoring (23%). Taking on special or rotational assignments is the least popular form of skills development (12%). However, fewer than half of respondents believe that the training provided by their employer allows them to upgrade their skills and progress in their career. Areas Australian employees believe they need to develop include leadership (45%), bilingual skills (43%) and creativity and innovation (40%). Mandarin Chinese, English and French are the preferred choices for employees seeking bilingual skills. “The survey has highlighted a considerable gap between the preferences of Australian employees to learn on the job and their experience of workplace training,” says Karen Colfer. “To get the real benefits of training – both in terms of productivity and staff retention – employers need to focus on how successful the training programmes are in their workplace, and consider providing additional support or bringing in experts to help better engage their staff.”

recruitment extra 2013 June 3


General editor Lesley Horsburgh Tel +61 2 8587 7920 lesley.horsburgh@thomsonreuters.com Production 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 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".

4 June 2013 recruitment extra

from the editor What would you ask over a quick cuppa with the minister for employment? Well, this month we’ve asked our panelists to tell us just that, in fact our issue for June is for the large part all things political. There’s no doubt that some certainty in the government, whichever direction it might swing, will inject some level of reinvestment that will assist businesses to turn what’s felt like a very far-off corner. So, as the election draws closer, many businesses both in and out of recruitment are eyeing off the prospect of some greater level of comfort as we hurtle to yet another year end. To add to the federal glamour, we’ve injected some commentary on the budget from one of our managing editors of our news teams here and also included the first of Lincoln Crawley, Managing Director Manpower Group ANZ, contributions, who gives us his thought in “A Word for Canberra”. On a final note the REA 2013 is soon closing nominations – if you haven’t already entered and feel this just might be your year then visit: www.recruitmentextra.com.au/REA


News

ICT employers “treading water” ICT recruitment activities may be slowing down as Australian ICT industry prepares itself for the looming federal election yet, despite the dip last quarter, the industry is showing signs of being in a better position than it was three years ago. The latest ITCRA Trends Report and SkillsMatch Dashboard (Trends Report) shows a clear pattern of surges and slowdowns in placements generally mirroring election and economic cycles. The most recent quarter analysed in the Trends Report shows that the ratio of permanent and contracting roles remains steady at 30% and 70% respectively; with a small improvement in placements made across most roles over what would be expected after the usual end-of-year lull. The report also shows a small contraction and possible levelling-out in the days required to fill positions and fewer placements being made, suggesting that candidate quality is increasing while ICT employers take a “treading water” approach. Julie Mills, CEO of ITCRA commented that, “The results are not surprising but it

"This report shows that the ICT contract and recruitment sector, and ITCRA Members in particular, are certainly doing their best to ensure Australians are engaged in positive and ongoing employment." - Julie Mills, CEO, ITCRA does beg the question: if ICT is essential to the infrastructure of business and Government, then are businesses and governments taking an overly-cautious approach to business intelligence at this crucial time?” The SkillsMatch data suggests that ICT recruitment is keeping up with the general labour market however: “Particularly for ICT jobseekers

looking for SAP, Infrastructure, Microsoft Windows Desktop and Java roles demand is high with employers competing for good people” said Mills, “But for roles such as Business Analysis, Helpdesk Support and Networking employers have more candidates to choose from.” ITCRA’s business monitoring supports the current Trends Report employment performance gauge, which indicates that the ICT contract and recruitment sector on a twelve month average is performing 4.09% better than the Australian Labour Market statistics (as reported by the Australian Bureau of Statistics). The sector also showed a surge in the First Quarter of 2013 of 18.73 per cent positive performance against the same ABS Labour Market data which reversed and surpassed the end-ofyear drop in the last quarter of 2012. Mills concluded that, “This report shows that the ICT contract and recruitment sector, and ITCRA Members in particular, are certainly doing their best to ensure Australians are engaged in positive and ongoing employment.”

Employee trust remains strong Green employers Employees continue to trust their managers according to the latest L.E.A.D. Survey, and the level of trust displayed by employees in their managers or leaders over the last year has either remained stable or become stronger, said Andrew Henderson, CEO of Leadership Management Australasia (LMA). “It’s a good sign because trust is the cornerstone of productivity and performance. In uncertain times, you could expect employees to lose faith in their leaders, to blame them for cutbacks, loss of sales and jobs and lower profit margins,” he said. The survey, now in its 13th year, found that: 1. Employee trust in immediate managers or leaders • 53% have “a great deal” of trust (47% in 2012, 49% in 2009) • 33% have “moderate” trust (40% in 2012, 33% in 2009) • 9% have “a small amount” of trust (9% in 2012, 12% in 2009)

• 4% have “no trust at all” (9% in 2012, 12% in 2009) • 1% “unsure” in each survey 2. Employee trust in leaders’ ability to achieve organisational goals • 37% have a “a great deal” of trust (32% in 2012, 34% in 2009) • 46% have “moderate” trust (50% in 2012, 46% in 2009) • 12% have “a small amount” of trust (14% in 2012 and 2009) • 4% have “no trust at all” (3% in 2012, 4% in 2009) • 1% “unsure” in each survey 3. Employee levels of trust in what leaders tell them about the organisation’s future • 33% have “a great deal” of trust (28% in 2012, 31% in 2009) • 43% have a “moderate” level of trust (46% in 2012, 43% in 2009) • 16% have a “small” level of trust (20% in 2012 and 2009) • 6% have “no trust at all” (4% in 2012, 5% in 2009).

admired

A survey of Australian workers has revealed that 68% of respondents would feel more satisfied at work if their employer invested in sustainable practices. Greenfleet CEO, Sara Gipton, said: “Employees increasingly expect their workplaces to show leadership through investment in socially responsible initiatives, such as carbon offsetting. Investing in sustainability is not just an investment in the environment; it is an investment in the satisfaction and retention of your workforce.” Further findings revealed respondents in the Northern Territory were the most worried about the future of Australia’s natural environment, whilst those in NSW worried the least. Overall more than 55% of respondents said they would be more likely to choose an employer if they invested in sustainable practices.

recruitment extra 2013 June 5


Contents Inside June

BEYOND THE

BALLOT

BOX

Features

of

nt e u t m fu uit e th ecr r re

20

Office Politics

22

Budget Roundup

24

A Word for Canberra

25

Leadership Insights

29

Employment Restraints

32

Assumed Liability

33

Book Review

Regulars

24 26

25

29 30

32

3

News

11

What’s on

17

Online Recruitment

18

HR Report

26

Head to Head

28

Social Recruiting

30

The Panel

34

State Review: NT

36

On the Move

38

Directory

6 June 2013 recruitment extra

The latest news, events and announcements

Movers and shakers in the industry

Advertising directory


News

Adecco staff reach out to youth Youth unemployment is in crisis with unemployment amongst 15 to 24 year olds in Europe reaching a record high of 24% and globally almost 300 million young people are unemployed or inactive. Such statistics prompted 10,000 Adecco employees to take to the streets in over 500 cities in 50 countries to offer career guidance and free training workshops to school leavers and graduates. The action was estimated to have reached more than half a million people in public places, schools and universities the volunteers helped young people in their job search and ways to improve their employability. In total, over 20,000 coaching sessions were held or scheduled and the Adecco Way to Work website registered a million visitors to its coaching websites. It is hoped that the symbolic act will “inspire concerted action from governments, businesses and individuals alike”. Adecco Group CEO, Patrick de Maeseneire, said: “The positive echo I received from the Adecco Way to Work™ street day here in Brussels and the three other Belgian cities I visited confirmed that we’re doing the right thing. Young people have a clear need for advice, information and support in their job search. I’m happy that we made a contribution to a young generation that is struggling to find work.”

Website aims to “sidestep agencies” A recently launched website www.myshortlist.net is hoping to “revolutionise the hiring experience for businesses across all sectors”. The site, which partners with SEEK and CareerOne, offers tools to post job ads across multiple job sites and social media, shortlist candidates, manage talent pools and access psychometric tests. The start up, created by Daniel Inglese and co-managing director Robert Bertucci, aims to provide services to time-poor employers rather than recruiters. “Our mission is to empower employers to streamline the staff recruitment process and sidestep recruitment agencies so they can save time and money,” said Inglese.

Mining opportunities for women The Australian Human Rights Commission has released a toolkit that aims to help the mining, construction and utilities industries to attract and retain female talent. Sex Discrimination Commissioner, Elizabeth Broderick, said the underrepresentation of women in industries considered to be maledominated – such as mining, utilities and construction – was an issue that is not only undermining gender equality in Australia, but is having negative effects on industry performance and our economy. The toolkit was developed to help address this problem. “This is not merely a report, but an interactive website developed to encourage dialogue, engagement and sharing of approaches about increasing women’s representation in maledominated industries,” Commissioner Broderick said. “It encourages employers, employees, government, community, and unions to think about the contribution women can make and to actively share strategies for attracting, recruiting, retaining and developing women’s skills in traditionally male-dominated fields.”

In Australia’s general workforce, women represent almost 46% of employees. However, in the industries of construction, mining, and utilities, women account for only around 12%, 15%, and 23% of employees respectively. Recent figures suggest that increasing women’s employment rates could boost Australia’s GDP by 11%. “Australia ranks fourth in the world in talent shortages and many maledominated industries are suffering a

lack of skilled workers,” Commissioner Broderick said. “Encouraging greater women’s participation in these industries is one solution that could go a long way to addressing these skills shortages.” Helen Conway, Director of the Workplace Gender Equality Agency, said the toolkit is consistent with the advice the WGEA has been providing to maledominated organisations. “It reinforces practical ways these organisations can meet the challenged they face in increasing their female workforce participation. “Organisations that make their workplace attractive to female employees will have access to a broader pool of talent and be better able to tackle skills shortages. Importantly, too, gender diversity also leads to improved organisational performance,” Conway said. At the Australian Women in Resources Alliance conference Conway said the mining industry had clearly demonstrated an acceptance of the business benefits of gender equality and that other industries would be able to learn from some of the gender diversity initiatives coming out of the sector.

recruitment extra 2013 June 7


News

Fairfax forecast remains mixed The May release of Fairfax’s six monthly Employment Forecast has found that the number of jobs continues to grow and that the rate of growth is slowly increasing. Speaking at the launch of the report Michael Emerson from Economic and Market Development Advisors (EMDA) said that a record level of employment for Australia was reached in early 2013. However, despite a forecast of 215,000 jobs being added to the Australian job market, Emerson said this growth would be described as moderate at best. According to Emerson, “the upcoming election has impacted industry sectors, demographic segments, and states in many different ways with some areas of the employment market showing strong growth while others weakening. “Ironically, the Public Sector is one industry that will feel the pinch and face increasing cutbacks as the full impact of the election is felt,” he added. Public Sector staff reductions are down by 3.8% in the year to February 2013 – a reduction of 28,000 staff over the course of the year, with further cutbacks expected. “The main decrease in job numbers comes via the State Governments, where jobs are down 2.1%. In New South Wales job numbers have fallen by a whopping 8.8%. Not even West Australia has been immune, with its government enforcing job reductions of 4.7%. In Queensland the announced cuts are already making an impact with -0.3% growth and more cuts can be expected. Only South Australia is recording growth of 1.9%, but this comes after large reductions in the first half of 2012,” said Emerson. According to the bi-annual report, the construction sector has also suffered the effects of the renewed uncertainty. “Construction is heavily impacted by industry confidence and the looming federal election means there is an unwillingness for companies to commit to large projects. “At the state level, Victoria in particular is feeling the strain with jobs still weakening by 6.1% and the value of building approvals remaining soft. This says to me that the turnaround will be slow and may decline further before it improves,” says Emerson.

8 June 2013 recruitment extra

"Construction is heavily impacted by industry confidence and the looming federal election means there is an unwillingness for companies to commit to large projects." Michael Emerson, Economic and Market Development Advisors

The Forecast details that South Australia is in a mild recession and the decline in jobs is consistent with the softening economy. The other end of the scale is West Australia, which is about to turn around thanks to a huge 29% surge in the value of building approvals in that state. The mining sector continues to be the stand out sector with 15.1% growth in the last 12 months. “Mining sector growth over the last 10 years has been spectacular with an additional 183,000 jobs created. However, growth has slowed in recent times due to an increasing of costs across the board; from commodity pricing fluctuations to an increase in operational costs,” says Emerson. The report also found that the job market for Twilight Careers is at record levels, although Generation Y are experiencing flat conditions. Employment of Indigenous Australians has grown steadily since 2005 and is currently at 4.8%, nearly double the rate of total Australian employment (2.5%). Professionals and Managers have returned to growth after a weak 2011 and salary growth is predicted to follow as the economy picks up. “While a federal election impacts industries, demographics, and states in many different ways; the Fairfax Employment Forecast shows that, across the board, projected growth could have been stronger if it wasn’t for the September 14 vote,” concludes Emerson.

ACCI voices concerns A national survey of 1,700 businesses by the Australian Chamber of Commerce and Industry has found that the number one economic challenge for Australian businesses is the growing cost of doing business. Also ranking as a major concern is complying with employment law and recruiting employees with the right skills. "Faced with rising costs and a high currency outstripping revenues, action on cost pressures rank number one for 72.4% of business, with daylight between that and the next order of priorities on fixing employment regulation (54.1%) and relieving the tax burden (51.1%)." Other key concerns revealed by the survey were: • the increase in the superannuation levy (63.0%) • the current level of government spending (61.0%) • cost of red tape and regulatory compliance (60.4%) • tax system complexity (56.5%) • the level of taxation (53.2%) • complying with employment laws (52.1%) • Australia’s overall international competitiveness (48.6%) • recruiting employees with appropriate skills (48.5%).


News

DAY TO DAY ADMIN STRESS CASH FLOW

would like to quit their regular jobs and 89% say they prefer to work when and where they choose (as opposed to a corporate, 9-5 job) Respondents of all generations surveyed said Generation X is most likely to be best-suited to run today’s businesses, and therefore to lead the future of work. However, two thirds of Millennials believed their own generation is best-suited (versus only 31% of those from other generations who say that Millennials are best-suited). This confidence in their own generation’s abilities is in keeping with well known studies on Millennial attitudes by Dr Jean Twenge, who found that “narcissism is markedly higher among college students in the 2000s compared to those in the 1980s.” Understanding the motivators of Gen Y employees continues to grow in importance as employers are becomes increasingly aware that Gen Y have different expectations of work that do not resemble traditional workplace models. “We believe that the barriers of Industrial Age work simply don’t make sense for businesses that want to get more work done, or for workers who are demanding more freedom,” said Gary Swart, CEO of oDesk. “No one today wants to be confined to a cubicle.”

INVOICING

- Ben Fuller, Sales Manager, Bullhorn Australia

Work, Health & Safety Laws

"Gen Ys want to work for a brand, service or product they truly believe in, and look for flexible, social and collaborative environments that encourage training and development."

COMPLIANCE ISSUES

S

earching for an exciting job in the best companies has made Gen Ys famous for being job hoppers, but this should not defer employers from hiring younger workers, says Ben Fuller, Sales Manager of Bullhorn Australia. “Gen Ys are looking for job fulfilment rather than initial financial gain. If their employer does not offer career progression opportunities or meet their expectations, they are quick to move on and seek opportunities elsewhere,” says Fuller. As a result, Gen Ys are sometimes accused of having little sense of company loyalty, however Fuller says employers shouldn’t overlook them, but instead consider what it will take to hold on to such highly motivated workers. “Although Gen X workers may look like more attractive hires because of their experience and relative stability, Gen Ys are ambitious and want to prove their dedication. They are willing to learn the skills required to rise to the top, even if it means working longer hours,” Fuller continues. “Employers looking to hire inexpensive and inexperienced staff need to ensure they have a workplace that provides a clear career path and are rewarded for learning and applying new skills. “Gen Ys want to work for a brand, service or product they truly believe in, and look for flexible, social and collaborative environments that encourage training and development. “Gen Ys may have developed a reputation of moving from job to job, but it’s up to employers to recognise what it takes to tap into this powerhouse of hard work and creative thinking, and keep them engaged,” concludes Fuller. In a similar vein a survey by oDesk found that Gen Y (or Millennials as they are referred to in the study) want to follow independent career paths that value freedom and flexibility. The survey found: • 72% of those employed in ‘regular’ jobs want to quit to be entirely independent; 61% say they will likely do so within two years. • Freedom is the main reason they

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recruitment extra 2013 June 9


News

Talent shortage 10 WAYS TO BOOST AGILITY

ManpowerGroup Talent Shortage Survey 2013 Australia Now in its eighth year, ManpowerGroup spoke to 2,248 hiring managers across Australia to look at the extent to which they are having difficulty finding the right talent; what jobs are most difficult to fill and why; concern over stakeholder impact; and what strategies employers are pursuing to overcome the talent shortage.

45%

58%

OF EMPLOYERS REPORT DIFFICULTY FILLING JOBS

Decrease of 5 Percentage Point Ranking number 12 globally

OF EMPLOYERS EXPERIENCING A TALENT SHORTAGE SAY THIS HAS A MEDIUM OR HIGH IMPACT ON THEIR ABILITY TO MEET CLIENT NEEDS

10

TOP JOBS EMPLOYERS ARE HAVING DIFFICULTY FILLING

Skilled Trades Workers

2 Engineers

6

7

IT Staff

Technicians

3

4

2

3

4

Japan 85%

Brazil 68%

India 61%

Turkey 58%

6

7

8

9

Bulgaria 54%

Increase of 11 Percentage Points

1

1

5

Management/ Accounting Sales Representatives Executives & Finance Staff

8

9

10

Labourers

Machinist/ Machine Operators

Doctors, NonNursing Health Professionals

Romania 54%

New Zealand 51%

Israel 50%

5 Hong Kong 57%

10 Singapore 47%

STRATEGIES EMPLOYERS USE TO OVERCOME TALENT SHORTAGES People Practices

46%

20% Work Models

ENGAGE

3

NURTURE

4

BE FLEXIBLE

5

ESTABLISH PREFERRED SUPPLIERS

6

INVEST IN EMPLOYER BRAND

7

BE SOCIAL

8

PARTNER WITH SCHOOLS

9

OUT-OF-OFFICE? OKAY!

11%

18%

Azure powers CareerPath

10 June 2013 recruitment extra

2

Talent Sources

Not Pursuing Strategies at Present

PageUp People has announced it will use Microsoft’s Windows Azure as the company’s primary global cloud platform to host its CareerPath application. The company, who has devised a set of algorithms that identify successful career-path attributes from 30 million employment records (‘CareerDNA’), turned to Windows Azure to help commercialise its development. “We needed a highly-scalable but cost-efficient server infrastructure,” said Simon Cariss, CIO, PageUp People. “Given the size of our company database and the speed of response we required we weren’t in a position to even prototype CareerDNA on existing company servers, let alone deploy a reliable service.”

BE NIMBLE

The company also wanted help building the CareerPath application. “Our core competency is HR web applications, not infrastructure. What we required was a no-hassle and reliable development and production platform – plus expertise to host the service,” added Cariss. Windows Azure Cloud Services were chosen because it offered “a variety of support resources, including technical staff to work on-site with our developer team. Microsoft also had a clear development path for Azure, which included being open to emerging application-development technologies.” The deployment of CareerPath on Azure has so far been successful and is said to have saved the company $100,000 a year.

10

Don’t expand or contract workforces in response to every data point. Think customisable workforce solutions to account for continued change in economic conditions.

Listen to your people to retain the brightest and best. What they want (e.g., flexible schemes) may even save money.

Often the most loyal and best company ambassadors are those that have developed through the ranks. Invest in these “high potentials.”

Contract, interns, part-timers, virtual workers are increasingly the norm. Being open makes you more flexible.

Establish close relationships with talent providers that understand your industry, offering, culture and company brand.

Give in-demand talent a reason to work for you over your competitor.

For the youngest worker segment, social commitment can determine the employer of choice. Same goes for the shareholders.

Offer paid or course credit internships. For skilled technical talent, partner up to offer custom training.

Attract the army of talented workers who aren’t keen to be office bound. Save money while you’re at it.

ManpowerGroup Talent Shortage Survey 2013 Survey Results and White Papers available at www.manpowergroup.com.au/research

10

COUNTRIES THAT HAVE DIFFICULTY TOP FILLING JOBS

1

CREATE A CULTURE OF TEACHABLE FIT Emotional intelligence + transferrable skills = potential talent shortage solution. Don’t be limited to a checklist of nonnegotiable attributes and skills.

AHRI National Convention and Exhibition HRIZON, the AHRI National Convention and Exhibition, returns in August with an exhibition aimed at providing delegates with the latest products and services in the HR field. The exhibition showcases the latest innovative ideas to help tackle organisational challenges and gives attendees the opportunity to network with other professionals in the HR industry. Masterclasses, workshops, the technology conference and the public sector conference will run alongside the main conference that will hear from keynote speakers such as Ruby Wax, Fons Trompenaars, John Boudreau, Dr Lois Frankel and Daniel Gilbert. The convention, now in its 14th year, will take place in Sydney from 19-21 August.


News

Private employment services support 46 million into work Ciett has announced that one year in to its five year commitment to global labour markets, significant progress has been made to hit the targets set in 2012. Ciett reports that in a 12 month period, the private employment services industry has: • Supported 46 million people in their job life (93% of year one target)* • Helped 12 million young people (93% of year one target) • Upskilled 11.6 million people (93% of year one target) • Created 3.1 million new jobs (97% of year one target) • Served 4.5 million companies (100% of year one target). One year ago Ciett outlined its ambition to build better-functioning labour markets around the world. To support this drive, Ciett made a series of pledges on behalf of the industry. Its members committed to achieving the following, worldwide, before 2017: • Support 280 million people in their job life • Help 75 million young people enter the labour market • Upskill 65 million people, giving them more work choices • Create 18 million more jobs • Serve 13 million companies with the right talents to succeed. The progress made towards these pledges in the first year is encouraging according to Denis Pennel, Ciett Managing Director, who adds: “This first set of results indicates both change and promise for the global labour market. More progress might have been made had an appropriate regulatory framework been established in more countries. For instance, if you look at Tunisia, a national trade union (UGTT) is holding back any discussion regarding the adoption of industry regulation, while in Russia or Turkey, private employment agencies are still waiting for proper regulation based on ILO Convention n°181 to be adopted on the sector." *Data supplied by Ciett members over the past year has provided Ciett with a more accurate reflection of the total number of individuals working in the industry each year. It suggests that the base figure used to calculate the global pledges should be revised from 45.9 million to 43 million individuals. Based on the revised baseline estimate, the total number of agency workers who will be supported in their job life will reach 265 million after five years (taking into account the CAGR of 7%) rather than the 280 million initially pledged.

LinkedIn launches CheckIn The latest offering from LinkedIn is CheckIn, a mobile app that “radically simplifies how recruiters collect and manage candidate information at events”. Built with campus recruitment in mind the app aims to assist recruiters to gather student information at campus events in a more streamlined and efficient manner. “CheckIn lets us interact with students on their terms. We can easily collect their professional information and instantaneously send them a customized email with links to our websites, career portal and cool videos showcasing our culture and products. CheckIn also helps us calculate our ROI on events – and wouldn’t every University Recruiting Program Manager like to quote that number at budget time?” said Maureen Buehler, Autodesk’s senior manager of Global University Programs. CheckIn will be available in July.

What’s on training & events calendar 2013

january • february • march • april • may • june • july • august • september • october • november • december

aug HRIZON2013 – AHRI National Convention and Exhibition HRIZON2013 is Australian Human Resources Institute’s (AHRI) yearly convention presenting a variety of inspiring speakers for business today. HR professionals and business leaders will be motivated with big ideas and innovative practices from both national and global thinkers. HRIZON2013 offers an ideal opportunity to network with Australia's HR community. Speakers include: Dr Lois Frankel – executive coach and author John Boudreu - professor and research director, University of Southern California Layne Beachley – seven-time women’s world champion surfer and entrepreneur Ruby Wax – leadership communication specialist And many more. Visit the website for the latest program updates. When: 19 – 21 August 2013 Where: Sydney Convention and Exhibition Centre Price: Prices vary for members and nonmembers and there are discounts for groups of three of more. For more information and to register visit www.hrizon.com.au

recruitment recruitmentextra extra2013 2013March June 11


The 2013 categories are: • The Deloitte Recruitment Excellence Award • The IMS People Best Business Innovation Award • The astutepayroll.com Excellence in the Application of New Technologies • Best Start-Up • Best Boutique Agency • Best National Agency • Best Candidate Care Program • Best Learning and Development plan • Best use of Print Advertising • Best use of Digital Media • Best Graduate Campaign • Best Employer Brand • Best Work Health & Safety Program

GET IN QUICK!

Nominations CLOSE soon www.recruitmentextra.com.au


News

Harnessing the talents of older women Diversity Council Australia (DCA) research has found that older women (defined as 45 years plus) represent a sizeable and growing segment of the labour force but Australian organisations are failing to fully harness their skills and talents. The research shows: • Older women now constitute 17% of Australia’s workforce with 45% of women aged 45 and over now in the labour force compared to less than a quarter (24%) in 1978. • Older women’s participation in the labour market is substantially lower than men’s in all age groups − as much as 17 points lower for women aged 55-64. The underemployment rate for women aged 45 and over is 6.5% compared to 4.7% for men of the same age. • The most recent comparable data shows participation rates for Australian women aged 55-64 of 54.9% compared to 72% in Sweden, 69.8% in New Zealand, 59.5% in the US and 57.4% in Canada. Iceland, Norway, Estonia, Switzerland, Germany, Denmark and Finland also all have greater participation of this group of women. If Australia had the same participation of people aged 55+ as New Zealand, GDP in 2012 would have been 4% higher. • Employers can reap significant benefits if they review their attraction, retention, transition and flexible working strategies with older women in mind. DCA recommends seven key actions employers can take. The research, Older Women Matter: Harnessing the Talents of Australia’s Older Female Workforce, produced in partnership with the Australian Human Rights Commission with Sageco, investigates how underutilised older women at work really are and what employers can do to address this. Nareen Young, DCA’s CEO said the research outlines a strong business case for harnessing older female talent. “Despite growing government

"The most recent comparable data shows participation rates for Australian women aged 5564 of 54.9% compared to 72% in Sweden, 69.8% in New Zealand, 59.5% in the US and 57.4% in Canada. Iceland, Norway, Estonia, Switzerland, Germany, Denmark and Finland also all have greater participation of this group of women. If Australia had the same participation of people aged 55+ as New Zealand, GDP in 2012 would have been 4% higher." - Diversity Council Australia and private sector attention on the employment challenges and opportunities presented by ‘older workers’ or ‘women’, we have yet to see concerted attention directed to both. The benefits that could accrue to organisations that do this – such as improved retention, performance, innovation and market share as well as lowered legal and reputational risks – represent a huge opportunity. In addition, the benefits for

the wider economy and to older women themselves makes this a very compelling case. “Australia’s future workforce will depend heavily on the employment of older women so this is not about special treatment for another group. Organisations focusing on older women’s employment are future-proofing their workforce and positioning their organisation for success,” said Young.

recruitment extra 2013 June 13


News

Talent mismatch is rife Almost one in two employers in Australia are experiencing difficulty in finding staff with the right skills according to ManpowerGroup Australia’s 8th Annual Talent Shortage Survey. Globally the survey found 35% of employers worldwide are reporting shortages, the highest level since prior to the global economic crisis. The most difficult jobs to fill are Skilled Trades, Engineers and Sales Representatives – the same top three as last year. Many of the top 10 hardto-find roles are also the same as 2012, however, the category 'Doctors and other Health Professionals' is a new entry to the list. Jobs most in demand in 2013 in Australia 1. Skilled Trades 2. Engineers 3. Sales Representatives 4. Management / Executive (Management/Corporate) 5. Accounting & Finance Staff 6. IT Staff 7. Technicians 8. Labourers 9. Machinist/Machine Operators 10. Doctors and other non-nursing health professionals

Jobs most in demand in 2012 in Australia 1. Skilled Trades 2. Engineers 3. Sales Representatives 4. Accounting & Finance Staff 5. IT Staff 6. Management / Executive (Management/Corporate) 7. Technicians 8. Drivers 9. Mechanics 10. Chefs/Cooks Lincoln Crawley, Managing Director, ManpowerGroup Australia & New Zealand,said: "The fact that almost one in two employers are struggling to fill roles may seem surprising, given the negative news we're hearing about the economy. "Yet these results tell us that beyond the headlines, the picture is more complex: many employers simply can't find the specialist talent they need. It reflects the complexity of the employment landscape, and what we call the ‘talent mismatch’, where the skills available aren't the same as the ones needed by employers". Crawley says the issue of talent shortages is endemic in the modern jobs market. "Year after year, ManpowerGroup’s Talent Shortage Survey reveals employers struggle to fill vacancies. No matter how

The number of workers on fly-in, fly-out rosters in WA

50,000 Rania Spooner, WA Today.com.au

prosperous or perilous the environment, the right talent is always difficult to find." A closer look at the global survey results reveals the talent shortage is present across the world - but most acute in Japan (85%), Brazil (68%) India (61%), Turkey (58%) and Hong Kong (58%). Employers in Ireland (3%), Spain (3%), South Africa (6%), the Netherlands (9%) and Czech Republic (9%) are the least likely to face shortages. ManpowerGroup also launched a new insight paper, The Great Talent Shortage Awakening: Actions to Take for a Sustainable Workforce, which examines several strategies leaders can use such as identifying and attracting untapped talent, creating a culture of talent development, implementing a teachable fit framework to “manufacture” talent aligned with business needs, and improving collaboration with education institutions to ensure graduates are work-ready.

Professionals prefer conventional job search tools Despite the push to use social media in recruitment, job seekers still favour traditional avenues to seek new opportunities, according to the latest whitepaper from specialist recruitment consultancy Robert Walters. The whitepaper, Understanding the role of social media to complement attraction strategies, aims to assess how much of a role social media plays in the recruitment process. The whitepaper found that 79% prefer to use a job board or register with a recruitment consultancy to find a new role, 11% use their existing professional networks, and 5% apply direct through an organisation’s website. Only 4% will look at adverts

14 June 2013 recruitment extra

on LinkedIn, and only 1% will look at job adverts on Facebook. The whitepaper also found professionals mostly use an organisation’s social media profiles to discover information on the company and insights into company culture. Peter Bateson, Associate Director of Robert Walters in Sydney explains, “There is a lot of commentary in the marketplace suggesting recruiting via social media is the way forward. However, organisations need to strike a balance between trying new things, and using proven methods to maximise their return on investment. With research indicating social media still isn’t a common job hunting method, a measured

approach must be taken to prevent an excess of time and money being invested to push career opportunities in a place where no one is job seeking.” Other key findings include: • 62% of hiring managers use social media as part of their screening process to check on prospective employees before hiring them. • 24% of professionals would apply for roles that appeared in their Facebook and Twitter newsfeeds. • Only 9% of hiring managers would directly approach or headhunt a potential candidate through their personal social media profiles.


News

Talent unleashed at MCA Talent International presented industry event ‘Unleashed’ at the Museum of Contemporary Art in Sydney in May. The event, hosted by Sonia Kruger and attended by over 200 delegates, focused on how behaviours, innovation and inspirational leadership “can unleash the potential of employers and employees alike to transform the business landscape”. Sir Richard Branson was the guest of honour and spoke candidly about his experiences and insights during a Q&A session. Other key speakers included Steve Sargeant, CEO of GE and industry trainer David Carman alongside Talent’s recently appointed Executive General Manager for Australia and New Zealand, Chris Riley. Richard Earl, Managing Director of Talent International, spoke of relinquishing fear and pushing boundaries and stressed the importance of nurturing an entrepreneurial spirit within Australia’s technology sector. Talent International unveiled three new initiatives at the event: • Shareit - a database of over 10,000 vetted candidates who have contracted through Talent in the last five years that will be made available to clients. • Benefit - a program that will reward the loyalty of contractors by focusing on areas of personal development such as skills training and general well being. • The Transit Lounge - a service within Talent International’s global network

Australia’s ranking as the world’s happiest industrialised nation.

1

#

Organisation for Economic Cooperation and Development's (OECD) Better Life Index

Duncan Ward (centre), Winner of the Big Impact Award

of offices that will offer a full departure and arrival service for technology professionals travelling globally. Also at the event was the presentation of Talent’s inaugural Big Impact Award. The award was created to recognise the contractor who had made the biggest impact on their surroundings either through a technological innovation, inspirational leadership or service to their community. Of the six finalists flown in for the announcement Duncan Ward from WA was named the winner. Ward is

the founder of Classroom of Hope, a non profit organisation working to provide disadvantaged children in Cambodia with access to quality education. Since Classroom of Hope’s founding in October 2012 and the launch of its Schools of Excellence Program, Ward has recruited 10 volunteers to help him and has raised $45,000. The judging panel said his submission, as well as the pictures, video and testimonials included with his submission, was what made him stand out from the others.

Employees who have been with their current employer for one year or more.

Annual turnover rate of those employed in accommodation and food services sector.

7.3 40

%

MILLION ABS Labour Mobility, Australia, February 2012

2008 AHRI/TalentDrain HRpulse sur vey

recruitment extra 2013 June 15


Hiring plans on hold The key findings from the 49th AIM National Survey are signs of a weakening demand for labour (and constrained business activity), a downward trend in average pay increases and skills shortages. According to the survey, a notably smaller proportion of organisations reported that they anticipate increasing permanent staff numbers in the next 12 months. However almost half of Australian organisations are still experiencing difficulties in recruiting (some) staff due to skills shortfalls and over two thirds of organisations would consider hiring staff from overseas to fill skills gaps. The survey found a significant upward trend in the proportion of organisations that report they currently employ workers

from overseas, with over one half (55.2%) of large companies indicating that they already employ overseas workers, up from 51.3% in last year’s survey, 48.7% in the 2011 survey and 42.1% in 2010 – most commonly to fill roles within the Construction & Engineering, Marketing & Sales and Manufacturing/Supply & Distribution job families. While the vast majority (94.8%) of large companies reported passing on pay increases to at least some employees over the past 12 months, the overall average increase, of 3.9%, was lower than the previous year (4.1%). The overall average pay increase passed on by organisations in W.A. (at 5.2%) continued to be significantly higher than in other states.

ICT recruitment profitability down The latest RIB Report on ICT recruitment commercial indices show that Q3 (January to March 2013) have turned out to be the weakest since the GFC recovery reported in Q4 2008-09 with profitability across the industry falling 53% on the same quarter last year. The negative trend for contributing recruitment industry players has been ongoing with five of the last six quarters having a fall in profit as a percentage of Gross Profit (NDR). The RIB average for the financial year-to-date (YTD) has fallen to produce a 16% return, a significant 31% decline from last year’s return while the ICT sector has fallen from 23% last year to 21% this year-to-date. The two key underlying measures of current market activity appear to be the number of contractor hours and the number of permanent placements. The RIB average has fallen 9% and the ICT sector has fallen 5% on last year on hours processed through the payroll; however there has been a more significant decline for the ICT sector over the past two years from its peak in 2010/11. RIB average productivity in terms of permanent placements has fallen over the last six quarters. Year-to-date placements

16 June 2013 recruitment extra

The RIB average for the financial year-todate (YTD) has fallen to produce a 16% return, a significant 31% decline from last year’s return while the ICT sector has fallen from 23% last year to 21% this year-to-date RIB Report on ICT recruitment

for ICT are less volatile, falling 9% compared with 28% for the RIB average. The RIB Report for Q3 also suggests that the required expenditure tightening has not occurred as quickly as it should have, and both the RIB average and the ICT sector have shown little change, which with declining income has resulted in a blowout in the percentage of expenditure against Gross Profit (NDR).

The number of Australians who work from home

1.4 MILLION Senator Hon Jacinta Collins, Parliamentary Secretary for School Education and Workplace Relations

GI Group partner with Microdec GI Group, the largest Italianowned staffing agency, is rolling out new recruitment software across the group’s global network. The roll-out has already started and will take in countries such as Brazil, Spain, Czech, India, China, Russia, Serbia, Montenegro, Bulgaria, Lithuania, Croatia and of course all of Italy, approximately 500 branches. Mark Bowyer, Microdec, commented: "GI Group plans to be a top global player over the coming years and wanted a system that had scalability and could be configured to their needs now and the future, also taking into account their multiple branches & country requirements as they grow. We are working with GI Group as they expand and rollout Profile RPM to new countries and are enjoying a good working relationship."


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 April 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

1

Seek Australia

www.seek.com.au

27.22%

2

Linkedin

www.linkedin.com

16.51%

3

CareerOne

www.careerone.com.au

4.48%

4

indeed Australia

www.indeed.com.au

4.11%

5

MyCareer

www.mycareer.com.au

4.11%

6

jobrapido Australia

au.jobrapido.com

4.01%

7

Job Seeker

www.jobseeker.com.au

2.53%

8

Australian JobSearch

www.jobsearch.gov.au

2.36%

9

SimplyHired Australia

www.simplyhired.com.au

2.14%

10

Woolworths - Careers

www.wowcareers.com.au

1.07%

11

Hays Personnel Services

www.hays.com.au

0.76%

12

Wiley Job Network

www.wileyjobnetwork.com

0.71%

13

Star Now Australia

www.starnow.com.au

0.62%

14

jobsearch.com.au

www.jobsearch.com.au

0.62%

15

Jobs.com.au

www.jobs.com.au

0.61%

16

Fair Work Online

www.fairwork.gov.au

0.60%

17

Defence Jobs - Australian Government Department of Defence

www.defencejobs.gov.au

0.50%

18

Jobs.wa.gov.au

www.jobs.wa.gov.au

0.49%

19

Coles Group Careers

www.careers.colesgroup.com.au

0.48%

20

ninemsn Seek

ninemsn.seek.com.au

0.47%

Date

Market Share

Date

Market Share

Apr-12

0.76%

Nov-12

0.84%

May-12

0.82%

Dec-12

0.69%

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

0.92%

Oct-12

0.84%

recruitment extra 2013 June 17


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

Talent unleashes Virgin benefits

In a first for the contractor recruitment industry, Talent International (TI) has introduced a benefits package for contingent employees. Unveiled by Sir Richard Branson in Sydney on May 10 the collaboration will give TI contractors a complimentary induction membership to Virgin Active’s network of health clubs. TI managing director Richard Earl told the invite-only audience despite an increasingly mobile and global workforce, contractors were not well catered for by either recruiters or employers. He said a “massive contingent workforce was becoming increasingly disconnected and remote” which would only further add to reduced productivity and talent shortages. As a result, TI introduced a concept designed to “revolutionise” the recruitment. Earl said TI was “determined to be the ones who make the difference” to contractors as he unveiled its “transit lounge” and benefits package. Earl said the transit lounge was a “virtual concierge” service for all IT consultants. It offered not only recruitment services, but also peer networking and logistics help for relocating candidates. He said it would “connect the disconnected” and help ensure a stocked talent pipeline. “We will know exactly who the contractors are, where they are and when they are ready to move,” he said. He said it would facilitate global job opportunities and create a “global IT army”. Earl said the concept was the first for the recruitment market, and would dramatically change the “transaction approach” to recruitment, providing rewards for contractor longevity and repeat business. In launching the initiative, Branson commended Earl’s vision to do things differently. “A lot of individuals spend too much time flapping about not making decisions – sometimes you have to say ‘screw it, let’s do it’,” he said.

Social media disconnect

Social media recruitment strategies appeal to only 5% of the job seeking market, Robert Walters research has revealed. Drawing a line in the sand for social media tools, 85% of employers identified LinkedIn as a “professional” tool, whereas Facebook, Twitter and Instagram still bear the stigma of being “personal”. The report said while all social media channels are “about the people in them” identifying who is in a channel’s

18 June 2013 recruitment extra

“professional footprint” is essential before using it to recruit. Robert Walters MD James Nicholson told HRR social media had “clearly proven its worth in building brands and fostering communication” but the research showed it wasn’t “the answer for everything. It must complement your other attraction strategies”, he said. Some 74% of job seeking respondents reported they had an active LinkedIn account. However, only 4% actually looked at job referrals from LinkedIn.

Traditional tools preferred by job seekers Job boards and recruitment agents are still jobseekers’ preferred recruitment tools. Only 11% of respondents will use their professional network to seek out opportunities, just 5% will apply for a job through a website and only 1% will apply for a job advertised on Facebook. The research showed the recruiting potential of social media. Half of jobseekers reported they “felt comfortable” being approached directly by employers through LinkedIn, yet only 6% of employers do it. The report said there was “a lot of commentary in the marketplace suggesting recruiting via social media is the way forward”. However, the research showed only 5% of workers would use social media as their preferred recruitment tool. This “suggests a measured approach is essential to guarantee return on investment, with organizations needing to prevent an excess of time and money being invested to push career opportunities in a place where no one is job seeking”.

NBN to address talent shortage but at what cost for HR?

Research by Colmar Brunton Research and Deloitte Access Economics has revealed talent shortages could be eliminated by the telework opportunities enabled by the national broadband network (NBN). The research shows labour participation and geographic boundaries will be an issue of the past as the NBN delivers opportunities for employers to save billions through teleworking. However, HR professionals HRR has talked to warn the very nature of telework raises other problems for the profession.

60% of older workers would stay on The research found 60% of older workers would delay their retirement by an average of 6.6 years if they could access


HR Report

teleworking. Some 70% of unemployed residents in rural and remote areas said they would re-enter the workforce if they could work remotely. Around three-quarters of people with family or carer responsibilities who were not working reported they would take up a telework job opportunity if one was available. The report said there was a “growing awareness among employers that telework presents an opportunity to allow greater numbers of people nearing retirement to remain in the labour force longer than they originally intended”. The study estimated NBN-enabled teleworking will increase GDP by $8.3bn by 2021. It estimated if 10% of the workforce teleworked $1.3bn could be saved in travel time, and $210 to $690m saved in office real estate.

HR ‘shaking in fear’ HR professionals may be “shaking in fear” about what changes the NBN (above) will mean for HR according to Ambition Recruitment CEO Andy Cross. Cross told HRR HR professionals were “going to be tested in the new world”. He said as yet “no amount of technology [had] come close to understanding the complexities of personality and psyche”. However, if “technology develops appropriately to allow for meaningful, immersive interaction on a remote basis, then there is no reason that anyone should lose out”. “Consider a super Skype type technology woven into other workplace applications and you’re getting close to what will be possible. In that scenario, who cares where you’re connecting from?” he said. Gerry Forsythe, Australia and NZ manager of high definition video collaboration firm Life Size Communications, told HRR the NBN would present opportunities for employers to engage remote workers and increase productivity and collaboration with minimal disruption. “Mobility is the future,” Forsythe said.

Teleworking can lead to disengagement However, Clarius Group CEO, Kym Quick said the HR challenges of managing a workforce remotely (above) would make it “almost impossible” for productivity to be unaffected. Quick told HRR “companies will definitely have to entertain the thought” of introducing remote working, but said it was “not a valid solution” for all work functions as the “camaraderie and energy of a team can’t be recreated online”. She said in her personal experience “some people are just not suited” to working remotely as they were too easily distracted and their productivity plummeted. She said in addition to potential productivity drop off, remote working can contribute to disengagement and heightened stress levels. “Some people who have felt it was a good idea to work remotely have found it was very stressful, as they don’t feel they are part of the work community”. She said the by-product communication when working in a physical office was an essential component in employee engagement. “HR programs can help, but they won’t ever ‘fix’ the need to feel connected”, she said. She said remote working “might work for some sectors and some employees” but disputed it would be the “office of the future”.

“I don’t think we are going to get to the level of remoteness where the ‘office’ will cease to exist as our daily lives,” she said.

Virtual engagement possible Newsgator Director, Cunyet Uysal said the NBN (above) was essential infrastructure for increasing employee participation. He said virtual employee and customer engagement could be enhanced cost effectively. Newsgator is a centralised enterprise social networking software service tying into SharePoint and existing Microsoft business and workflow systems. Uysal said the tool is a time and cost saver for HR as onboarding can be conducted remotely and internal communications enhanced. “Social tools are essential for engaging the employees’ heart and mind,” he said. He said devolving content management across the organisation enabled higher engagement from staff, and created “short cuts” for information flow which increased productivity and participation. “Newsgator helps create a culture of sharing and trust by information sharing,” Uysal said. Some 73% of executives Newsgator surveyed said the social software “more than paid for itself through greater collaboration among employees”.

HR salaries up but jobs scarce

Senior HR professionals are moving to Singapore and Hong Kong for career advancement, due to a dearth of opportunities in Australia, research has found. However HR salary rises in 2012 were double that of other professions. The Ambition Recruitment survey of more than 2,300 employees and 450 employers revealed candidates at the $140+ salary level were “finding it tough to find opportunities”. The report said some HR candidates were applying for positions below their pay grade to find employment or a “route back into the commercial realm”. On average, HR professionals saw a base salary increase of 6% last year and average bonuses of 5.75%, with expectations pay increases will rise to 6.25% in 2013. This places HR professionals well above salary rises in finance and IT, which recorded average increases of 3% and 2.6% respectively. HR is working an average of 45.5 hours a week, second only to finance working an average 46 hours a week. Sydney-based HR generalists willing to work outside the CBD found “ample opportunities” for work, creating strengthened opportunities for employers based in the western suburbs to attract talent. Across all IT, finance and HR respondents lack of career progression topped the list of reasons respondents would leave their employer. The study said “HR professionals now put more of an emphasis on career development than remuneration”. The results said there was a “reluctant acceptance” the economy was not conducive to “huge pay rises” and regular high bonuses were “not the norm” in the HR industry. Nearly half of all respondents expected overall conditions to improve somewhat in 2013, with growth anticipated. However, the number of HR roles is predicted to remain low and steady.

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 June 19


Office Politics

Office

POLITICS recruitment extra’s Imogen Tear looks at the case for embracing diversity in the workplace

T

here is a growing understanding that workplace diversity is something all businesses should aspire to not just to be politically correct but because research continues to show diversity makes good business sense. McKinsey & Co’s 2012 survey Is there a payoff from top-team diversity and research from Credit Suisse, Gender Diversity and Corporate Performance, both suggest strong links between the number of women at a senior level in a company and increased business performance. A US study by Dezso and Ross examined performance in 1,500 companies over 15 years and concluded that: “a given firm generates on average one percent (or over $40 million) more economic value with at least one woman on its top management team than without any women on its top management team and also enjoys superior accounting performance.” In AsiaPac the representation of women at the higher levels of organisations continues to lag behind the rest of the Western world with a 2012 report from Women on Boards finding that in ASX1200 companies only 13.9% of directorship positions were held by women. And this is despite the fact that women have been graduating from university at higher rates than men since 1985. According to studies conducted by Chief Executive Women and Bain and Company, men still have a nine times better chance of making it to senior executive ranks than women in large Australian corporations So why is such a huge pool of potential talent being passed over? A Goldman Sachs report recently calculated that closing the gap between the ratio of

20 June 2013 recruitment extra

“Many businesses suffer from a lack of diverse thinking in the workplace without being aware of it. Encouraging diverse thinking has shown better results than always recruiting a team of like-minded individuals.” - Andrew Cross, Managing Director at Ambition IT men to women at senior levels has the capability to raise the Australian GDP by 11% – a business case that surely can’t be ignored. Or can it? A 2011 Dun and Bradstreet survey found that more than two-thirds of Australian CEOs had no plans to ensure women were included in any shortlist to fill senior management positions and 75% did not intend to appoint a female to a senior management position in the next three months. Whilst few would argue against the idea of having women in senior management there still remains a huge disconnect between the theory and the practise. It seems indisputable that something is amiss at some stage that stops women moving beyond middle management. Of course it is not just gender that is under examination here; diversity encompasses cultural background,

ethnicity, age, sexual orientation, faith and disability amongst others. Perhaps we need to go right back to the beginning of the recruitment process and ask whether some level of discrimination exists that hinders a certain group from making the shortlist or whether there is simply an unconscious bias so ingrained in our psyche that recruiters and managers are compromised when it comes to viewing a candidate objectively. Andrew Cross, Managing Director at Ambition IT, says that employers need to create awareness of the unconscious bias that their managers are taking into interviews with candidates. “All hiring managers have a personal bias towards certain types of candidates, and have a clear idea of who would be right for the job. “However, the candidate profile managers are looking for might not be the answer to the current business problem. HR managers need to raise awareness of unconscious bias and encourage diverse thinking in the recruitment process as well as among teams.”


Office Politics

However if bias is unconscious surely it would be paradoxical to suggest that it can be acknowledged. Not so says Cross, he believes that there is a way to counteract unconscious bias and that it is possible to if not unlearn ingrained bias, then to at least recognise it and work to ensure an interviewer does not succumb to it. Narreen Young, CEO Diversity Council Australia, says that “bias is bias, whether conscious or not” and that it is essential for us to highlight our unconscious bias so we understand where and how we may be missing out on talent. A quick search on the internet uncovers plenty of programs, workshops and training available to help raise awareness of bias from the unconscious to the conscious level. Such programs allow attitudes and behaviours to be addressed, challenged and ultimately impact results positively by improving the quality of decisions made during the candidate sourcing and interview stage. However in this period of unsettled business confidence many companies have cut back on training and development as they look to save costs. So where does this

leave the campaign to encourage diversity in the workforce? In Europe there have been some sustained attempts to eradicate discrimination by introducing anonymous resumes. The programs have had varied degrees of success. In France a plan for them to be made compulsory at firms that employed over 50 people was abandoned after the Pole Emploi (the agency that assists unemployed jobseekers) found them to be counterproductive. Research suggested that people of foreign origin and those who lived in underprivileged areas were less likely to be invited to an interview if their resume was anonymous, possibly because allowances could not be made for poor qualifications or faults due to disadvantaged backgrounds – positive discrimination was impossible to implement. However, the City of Helsinki has recently begun a pilot scheme using anonymous CVs when recruiting staff and a 2012 German study found that anonymous applications helped to level the playing field for job applicants. In the UK more than 100 major businesses have signed up to a government initiative that proposes asking for CVs without the name or the school details of candidates in order to remove the risk of discrimination during the application process. Early reactions to the plan have been favourable but some have also noted that whilst removing an applicant’s name may prevent discrimination it wouldn’t be hard for an employer to assume certain things from a look at the candidates’ employment history. Plus if the aim of the proposal is to remove bias it will only really work at the application stage. Once a candidate has been called to interview potential discrimination may arise. However, it has to be seen as a step in the right direction and it will be interesting to see if it does bring a more diverse pool of candidates to interview stage. The recruitment process is fraught with opportunities for discrimination and removing all potential risks seems pretty much unattainable in the short term. But what is possible is to raise awareness of unconscious bias, discrimination law, professional development and emotional intelligence. A further school of thought is pushing for recognition from business that a

diverse workforce encourages diverse thought. Heather Price, CEO of Symmetra, speaking at the Women in Ambition seminar in May, said diversity in thought created high performing teams, as “diverse teams have a greater capacity to build and improve ideas.” She argued that it is not just about bringing in more women or diverse people because of equity targets, but because diversity is at least as important as individual ability and to ignore it would be counterproductive. Cross concurs and says what is perhaps most important is the ability to embrace the fact that a diverse team is a way to promote creative thinking and open up a team to better ways of doing things. “Many businesses suffer from a lack of diverse thinking in the workplace without being aware of it,” says Cross. “Encouraging diverse thinking has shown better results than always recruiting a team of likeminded individuals.” The theory of developing positive workplaces with a diverse group of individuals at senior level offers a compelling business case yet sadly it is an uncomfortable fact that recruiters are often asked by their clients “off the record” to source a particular demographic of applicants. Young acknowledges this is still a problem and urges recruiters to tell the client that such a request is “a blatant, out and out breach of discrimination laws.” How a recruiter deals with such a request is a legal issue rather than an ethical choice and it would be good to think recruiters had the knowledge and resources available to deal with such situations. Thankfully, there are also reports that clients are increasingly asking recruiters to find them a shortlist of diverse candidates. If the business community has been slow to embrace programs aimed at eliminating sexism and racism, or perhaps hesitant to insist on training that makes a company compliant to laws of discrimination because of a disregard for ‘political correctness’ it may just be the espousal of the business case that wins them over. Embracing diversity isn’t just the right thing to do, there’s a strong business case for it too both at a financial level and in terms of creativity and innovation. 

recruitment extra 2013 June 21


Budget Analysis

Budget: actions By Peter Schwab, Managing Editor, Thomson Reuters News Services

Workplace bullying The Federal Government announced a $21.4 million funding boost to the Fair Work Commission to handle workplace bullying complaints from July 1 as one of the few spending initiatives in the 20132014 Federal Budget. Workplace Relations Minister Bill Shorten said last year's Senate inquiry into workplace bullying found "existing legal options for people who have been bullied are too complex and there is a need for a new process that allows individuals to take faster and more affordable action to end bullying." He said the reform, which the Coalition supported in its industrial relations policy released last week, would be subject to the passage of the Fair Work Amendment Bill.

22 June 2013 recruitment extra

promises

Maurice Blackburn industrial and employment law principal Josh Bornstein said the extra funding was a "welcome development" but questioned whether it would adequately cover the FWC's costs. "Whether such additional funding is sufficient remains to be seen; but it's a good start," he said. Bornstein cautioned the new laws were not a "panacea". "They don't absolve employers and employees from the hard work required to ensure workplace culture doesn't tolerate or ignore bullying," he said. "Education about workplace bullying will remain as important as ever."

Pay equity’s place confirmed The budget confirms the government


Budget Analysis

“The NDIS will facilitate some people with disability returning to employment with the help of companies including Coles, Woolworths and Westpac.” Graeme Innes, Disability Discrimination Commissioner

will establish a Pay Equity Unit in the Fair Work Commission at a cost of $6.2 million over four years to assist with data and research collection, and specialist pay equity information. The Unit will initially focus on the early childhood education and care sector. It will provide up to $300 million over two years to supplement childcare workers pay increases by up to $3 per hour from July 1, 2013. It will create an Early Years Quality Fund to support eligible Long Day Care centres for the attraction and retention measure. A further $8.2 million over three years will enable the education, employment and workplace relations department administer the fund, and establish an Early Years Quality Fund Advisory Board to oversee the fund. It will have employer and employee reps. The government will provide $800,000 over three years to the Queensland Working Women's Service “to allow the centre to continue to deliver workplace relations advisory services to disadvantaged and vulnerable workers”, the cost to come from DEEWR’s existing resources. The Workplace Gender Equality Agency budget will be cut by more than $1 million, down from $6.908 million in 2012-13 to $5.574 million in 2013-14. In a move lauded by Age Discrimination Commissioner Susan Ryan, the government will provide $4.6 million to establish the Andrew Fisher Applied Policy Institute for Ageing. It

will provide advice on issues such as demographic change, infrastructure and support for an ageing world.

DisabilityCare Prime Minister Julia Gillard introduced the DisabilityCare Australia funding bills to Parliament on March 15 to enable the Medicare levy increase from 1.5% to 2% from July 1, 2014. The May 14 Budget Papers confirmed the Medicare levy increase rate and how the government planned for it to be funded over the next 10 years. Disability Discrimination Commissioner Graeme Innes said "the levy is the right mechanism to fund the scheme, because it puts funds aside for a discrete purpose which mean by 2019, up to 460,000 Australians with disability will receive the help they need". The NDIS will facilitate some people with disability returning to employment with the help of companies including Coles, Woolworths and Westpac, he said.

Other employment-related developments The Fair Work Ombudsman (FWO) is to get an extra $25.7 million a year to tackle private sector labour law compliance. The FWO will get an extra $3.4 million over four years for it to help the Department of Citizenship and Immigration deal with 457 visa compliance. The government flagged a FWO 457 visa-related budget increase in March.

Coalition delays super increase Opposition leader Tony Abbott has announced a Coalition Government will postpone increases to compulsory superannuation contributions by two years if it is elected in September. In his Budget Reply speech, Abbott said he would delay "the ramp up in compulsory super because this money comes largely from business – not from government – and our economy needs encouragement as mining investment starts to wane and new sources of growth are needed". The Labor Government's staged super increases are set to begin this year, with a rise of a 0.25 percentage point from July 1, 2013. A further 0.25 increase would occur in 2014, with the aim to reach a total 12% super guarantee by 2019. State governments in Victoria and NSW have already factored in this year's super increase into their 2.5% public sector wages caps. The NSW Industrial Relations Commission is set to consider a dispute over whether the super increases count as an "employee related expense" towards the wages cap. The 2013 minimum wage panel is also taking into account any impact from super increases. Meanwhile, opposition finance spokesperson Matthias Cormann said the Government should seek to implement the Cooper Review's recommendation that "independent directors" form a third of industry super boards along with employer and union representatives.

recruitment extra 2013 June 23


Government and business

A word for Canberra By Lincoln Crawley, Managing Director, ManpowerGroup Australia and New Zealand

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ver since the Federal Government named an election date for September this year, we have been in the thick of debates about the issues facing our country. From immigration to tax policy, each side of politics has its own view of how to move Australia forward. But at the heart of it all is one big, underlying issue: the economy. Without a balanced budget, without the right balance between spending and saving, we won't have the economic climate required to fuel business growth, employment opportunities, social security and wealth creation. So, what does recruitment have to do with economics? A lot. Of course, we all feel the pain when market conditions aren't favourable to our industry. Employers choose to hire – or not to hire – based largely on their confidence in business conditions. But as recruitment professionals, we also get a unique insight into the pain points of business leaders. We understand the challenges they have in planning for growth or contraction, and finding the right level of flexibility to build their workforce around those expectations. We also see the difficulties that result when they simply cannot find the right people to deliver on their business strategy. Indeed, business leaders often turn to us when they have exhausted other sourcing options. (It's not our ideal way of working, but it does demonstrate that we have a skill set that's valued and recognised). Our unique view from within the hiring process has made one thing crystal clear: Australia does not have the skills it needs to grow. Our productivity on a national level, and on the level of individual businesses – is being hampered by the talent mismatch. In other words, we have people who want to work, but who lack the skills demanded by a rapidly changing world of work. This mismatch is reflected in the fact that around one in two employers have trouble filling positions, as ManpowerGroup's last Talent Shortage Survey showed. And this is despite unemployment hovering at around 5.5%, and there being around 784,000

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workers who are underemployed and would like more work (ABS, Sept 2012). Clearly, there is a disconnect somewhere here. Government and Business: a partnership needed There are no easy solutions to solve the talent mismatch. But that doesn't mean we can just put it in the too-hard basket either! We need all stakeholders – government, business, jobseekers and educators – to work together towards a solution. Government needs to take the lead by providing funding for programs that organisations can tap into, and encourage their employees to take part in. It isn't solely the responsibility of the government, we need collaboration for such programs to work. However, the government must take the first step in committing to funding programs and adopting an open and innovative mindset. Last year, ManpowerGroup released a research study that found 45% of Australian companies don’t offer formal training or apprenticeships. In the context of a skillsshort workforce, this just isn't good enough. Employers can be doing more to advance the skill development of their workforce. As recruiters, we need to do two things. The first is to 'walk the talk', by investing in learning and development (L&D) for own workforces. An L&D strategy must be a core part of the way we run our businesses, not an afterthought or a nice-to-have if we meet budget. The second task is to encourage our clients to develop training strategies that can build on the talent they already have. Training helps to grow a sustainable supply of talent and allows organisations to focus on developing candidates relevant ‘hard skills’ and fields of specialisation. We need to be getting this message across to clients, who often lament their difficulty in finding talent but don't often think about their own role in filling the talent pool. There have been large funding cuts to vocational training in recent years, much of which is being borne by TAFE institutions

across the states. This is adding to the need for new training models and collaborative partnerships between industry and educational institutions. In our research, we found that the major barriers for organisations to offer internal training programs were a lack of resources to develop and run programs, and the perceived costs of doing so. Collaborating with government can help organisations overcome some of these issues. ManpowerGroup has developed customised training programs across multiple disciplines, tapping into programs that are available through government and educational institutions. These programs are usually a blend of nationally accredited training and full time employment. They result in skills development, increased productivity and improved retention. The employees who undertake the program have a clear signal of the company’s commitment to their future, while the organisations who have undertaken these programs see reduced turnover, increased morale, improved productivity and significant savings. The Government can't solve every problem we face in business. However, smart companies will look for ways to make the most of what is available. If there are resources out there that can deliver benefits to your company, your candidates and your clients, then it's worth the effort to seek them out and put them into action. 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.


Leadership

Leadership Insights from Big Data: Do you have the right executives ready to drive your business? By Bruce Watt, PhD, Managing Director, DDI Australia

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DI has produced the Leadership Insights series looking at the behaviours and personality traits of executives. This data comes from over 10 years of observing how executives respond in our day-in-the-life simulation. In the final part of this series, the readiness of executives is explored in terms of the business context. Our research highlights that there are two key themes executives are facing in business today. The first is around operational efficiency/profitability and customer service and the second is around growth. The changing landscape for the mining industry, the continued decline of the retail industry, sky rocketing house prices and many more trends in our Australian market mean stability and growth are all the more important to stay ahead of our competitors. Unfortunately, it seems our executives are not ready for growth. The top seven business drivers that today’s executives are not ready to execute on are all related to growth. Whether it is transforming the organisation internally to grow the business; or developing the business externally to grow – there is certainly a shortage of executives ready to drive organisations where they need to be. Today’s Executives are NOT READY to 1. Enter global markets 2. Enter domestic markets 3. Turn around performance of culture 4. Shape organisational strategy 5. Build organisational talent 6. Build high-performance culture 7. Integrate new organisational structures

It is encouraging to see executives are ready to lead the business into familiar areas such as building relationships and company culture and driving success through operational enhancements. But if organisations are to grow, we need to ask ourselves do we have the right people in place? Can these executives develop the skills, and in the time they need to take on the challenges of the business? What personality and behaviours do they have that might be a barrier to develop? Today’s Executives are READY to 1. Build strategic partnerships and relationships 2. Cultivate a customer-focused culture 3. Drive efficiency 4. Increase revenue production 5. Drive process innovation 6. Drive profitability When we hire or promote leaders to tackle the challenges of our complex global, technology infused business marketplace – are they ready? How do we prepare them? What support do we provide to drive the business to succeed? Whether you are hiring externally or identifying your next potential leadership pool there are key steps to identifying, selecting and developing leaders to ensure their strength and development needs align with what the organisation needs them to do. 1. Analytics: Use data from tests, simulations and assessments to better understand the personality, behaviours, potential and readiness of executives. 2. Self-awareness: Through analytics and feedback, executives who understand their own strengths and development areas are able to impact their own success and drive opportunities to

strengthen their strengths and improve areas for development. 3. Align business drivers: Executive success profiles should clearly be aligned to the organisation’s business drivers to clearly articulate who you are looking for and what personalities, behaviours, skills and motivations they need to be successful in their role to drive organisational strategies. 4. Integrate selection and development: Development based on individual strengths and development from analytics sets clear and structured goals. 5. Identify potential: By identifying individuals in the organisation who might not be ready but have potential, you can prepare them for future leadership roles. The power of insights from research like this is hugely beneficial for HR professionals. Especially in the case of executives and senior leadership roles, organisations that are able to identify their own key business drivers for success and make sense of data through insights are able to make better decisions about current and future leaders to drive stability and organisational growth.  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.

recruitment extra 2013 June 25


Head to Head

The staffing industry and government regulation

– a global discussion Rod Hore, HHMC talks to Joost Kruelen, CEO of Empresaria Group Plc in the UK. Rod: My head to head partner this month is Joost Kruelen, CEO of Empresaria Group Plc in the UK. Empresaria operates 20 brands across 18 countries. Joost travels extensively with his work and has a specific interest in the Asia Pacific region. Joost, you have operated in the staffing industry in developing countries as well as in more mature markets. There is sometimes a philosophical as well as a practical debate about the role of government in employment and also the role of the staffing industry. It seems to me that in most of the developed markets the government of the day tends to appreciate the role of the staffing industry as the “middleman” for employment. At the same time, our experience in Australia is that the staffing industry is continually facing an increase in regulation and a tighter definition of employment responsibilities. Joost: Yes, in most instances government does support the staffing industry but I don’t think they universally appreciate the front line role the industry plays. For example, data from the American Staffing Association showed that US staffing firms lost nearly 1.2 million jobs (out of 3.6 million jobs lost) — 36% of their temporary and contract work force —over the course of the 18-month recession. In the three years since June 2009 added 786,000 jobs. Yet staffing companies account for less than 2% of

26 June 2013 recruitment extra

US jobs. In other countries, the staffing industry would have experienced similar fluctuations. All the developed markets we work in have an increase in regulation and sometimes that can be retrospective and catch the staffing industry unawares. There is an increasing focus on safety, privacy, training, immigration, and the tax implication of contingent workforces everywhere. Sometimes local political and union pressure can influence regulations as well. There is never less bureaucracy resulting from that focus and the way regulations are implemented can be inefficient and stressful for the industry. However, that is the nature of the industry and we all adapt and get on with business. Rod: The best companies do treat change as an opportunity and generate a positive attitude towards it. Would a Government’s employment regulation environment cause you to abandon a country? Joost: Well that has not happened yet and I do not expect it to happen in the future. Complying with government regulation and laws are a “given”. The more pressing issues for the management of a staffing company, like staff, sales and profitability are more relevant to the decision of where we operate. At the macro level, the benefit is that the global staffing industry is becoming

more robust, more sophisticated, and more professional because of the increased complexity of providing services. That is good for the industry in the medium to long term. Rod: I have been following the activity of some of the staffing associations and also CIETT (the International Confederation of Private Employment Agencies). CIETT, especially, provides a voice for the staffing industry globally and seem to be working strongly in the developing markets. For example, David Arkless, Vice President of CIETT, recently spoke at an event in India and very strongly linked flexible employment regulation to future economic success. “Success can be achieved by building understanding of the future economy; identifying talent requirement – right talent at the right time and right place; and providing flexibility with fundamental understanding of global markets. “If the Indian government creates an inclusive and conducive regulatory framework ... private staffing companies will assist India’s humongous labour market transition from the informal to the formal sector, by providing the youth of India a platform that enables them to become more employable and secure a decent job” Empresaria businesses operate in a number of developing markets like India, Indonesia, Philippines and


Head to Head

"Success can be achieved by building understanding of the future economy; identifying talent requirement – right talent at the right time and right place; and providing flexibility with fundamental understanding of global markets." - David Arkless, Vice President of CIETT

Thailand. Are the government regulatory environments a major issue for you in those countries? Joost: The government employment regulations are no more of an issue than the other aspects of setting up a business in an emerging market. While the licensing and employment regulations need to be understood and adhered to, they are not usually more onerous than what will be found in countries where we have good experience. There are other issues for international companies, such as the ability to set up a business, open bank accounts, employ staff, sign contracts and understand some of the local cultural ways of doing business. Once you get through that you still have to grow a business and everyone knows that is not an easy job to do consistently well. Rod: So you are positive for the future? Joost: I am happy with the businesses we operate and the countries where we have presence. The local and global economies will always have my attention, and we are constantly evaluating where it might be sensible for us to expand into new emerging markets. Rod: Finally, I liked some recent comments from Staffing Industry Analysts in the US when discussing staffing trends. Subadhra R Sriram: “What we have been witnessing over the last decade is a general disaggregation of the labor force. The traditional employee role has evolved to different worker

classifications: freelancers, temporary workers, independent contractors, statement of work consultants, etc. There has been a gradual loosening of people’s attachment to individual employers. Contingent workers have become the norm with little stigma attached to utilizing them.” Jon Osborne: “Staffing firms are more than just middlemen. I would say they are real business partners.” We can only hope that government’s everywhere continue to appreciate the role the staffing industry plays in providing both the rigour and the flexibility needed to ensure labour is being used efficiently. Some key figures on the industry for 2012 from www.ciett.org • Private employment services supported 46 million people into work • There are 140,000 private employment agencies and 179,000 branches worldwide, employing 863,000 internal staff • The total annual sales revenues of the top 10 private employment agencies worldwide accounted for 30% of the total agency work market • The global total annual sales revenues amounted to 259 billion Euro • The USA has the largest market share of the industry, with 23% of total annual sales. Japan represents 17% of the global agency work market, followed by the UK at 11% • Europe is the leading regional entity by total annual sales revenues, accounting for 41% of global total annual sales revenues.

Joost Kreulen was appointed Chief Executive Officer of Empresaria Group Plc in January 2012 Joost has been with Empresaria since 2009. He was initially responsible for its Asian operations and more recently also for a number of its UK based businesses. He was appointed Chief Operating Officer and Chief Executive designate on 7 September 2011. Prior to joining Empresaria, Joost had spent 20 years working in various roles for businesses which now form part of Randstad N.V., most recently as head of specialist staffing operations in the Netherlands.

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 June 27


Social Recruiting

Don’t dip your toe in the cookie jar By Richard Spencer, Director, TWOSocial

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he last Australia at Work survey indicated that about 18% of workers change their job each year. There were 11.6 million people employed in Australia in May of this year, so that means that just over two million of us will change employment and/ or employer in the next 12 months. With unemployment remaining at 5.5% again in May, Australia has effectively experienced its longest period of employment stability since the 1970s. However, employment confidence remains lower and market conditions for recruitment businesses remain tough. Corporate employers seem to be hesitant to recruit staff and when they do, the continuing shift to internal or on-premise recruitment team’s mean that competition remains high for both media owners and agencies alike. In this trading environment, this brave new world, recruiters are still hesitant to fully embrace new forms of communication and engagement and if anything, it is the corporate recruiters who are driving the transition to more effective use of digital media. Recruiters were quick to shift advertising expenditure to job boards when, following the move in the market, jobseekers switched their searches from press to web. That transition is all but complete, with 84% of job adverting volume now appearing online rather than in print. But at the same time, job advertising on ‘traditional’ job boards is also now showing signs of not just slowing down but contracting. According to Seek in their results presentation for the first half of 2013, job advertising was 33%

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lower than its peak in December 2007 and the volume of adverts placed in the 2012 calendar year was 18% down on the previous year. And according to the same report, volumes of jobs on CareerOne and My Career were also down 44% and 11% respectively over the same time period. Some cooling in the economy could certainly be a consideration in these numbers, but Australia’s abundant natural resources and the boom economy in China kept economic activity high for much of 2012. Indeed, as late as October 2012, the IMF (International Monetary Fund) showed Australia as the 12th Largest Economy in the World, its highest position ever, and the Treasurer was still predicting a budget surplus for FY13. In effect, the real reason that volumes in job advertising have dropped are that other channels are having a big impact on the advertising market as a whole. According to PwC and the IAB in their quarterly internet advertising revenue report, the online market as a whole grew by over $500 million to $3.3 billion in 2012 and increased another 15% in the first quarter of calendar 2013. More and more advertising money is being spent online – just not on the traditional job boards – which leave us with the other online channels as potential winners, which inescapably has to lead to greater use of social channels by recruiters. One of the biggest organisational risks when it comes to the use of social media for recruitment is a lack of commitment – essentially getting involved but not staying engaged – and/or expecting a quick return. There will inherently be an

element of risk in developing a social media or social recruiting channel, not least because the return on investment is not as well categorised as traditional forms of advertising. But one of the biggest potential risks is not taking a longer term view of the medium and either dipping a toe in the cookie jar or not getting involved at all. Yes it’s a mixed metaphor, but few recruiters seem to have a well versed and argued social media strategy and those who are active only seem to be because they want to be seen to be. The ‘traditional’ recruitment business model has remained unchanged over decades and one of its great mysteries has been how to maintain contact with candidates during the periods in their careers when they are happy with their current lot. Social media channels if they do nothing else (which is clearly not the case in my view) are the closest the industry has to a magic bullet for this particular problem and even in this area, social media, arguably remains underutilised. 

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.


Legal Eye

How valid are employment restraints? By Joanna Oakey, Director, Aspect Legal

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number of recent cases have examined the enforceability of various clauses of employment contracts. If you read our previous article in Recruitment Extra, you may recall that knowing that a candidate is breaching, or is likely to breach the terms of their agreement with an employer they are leaving, might land you (and potentially also the new employer) in the line of fire as a party that has induced a breach of contract. So on that note, we thought it relevant to update you on two specific kinds of obligations that are often found in employment agreements, that could possibly be breached in the recruitment process.

to set up a competing entity, employees are still bound by a duty to not allow their personal interests to conflict with those of their employer. Making preparations to leave a current employer should be done outside of work hours, in a way that doesn’t interfere with their duties to the current employer, and in a way that does not take advantage of opportunities or knowledge they have obtained from their position as an employee for their own gain, or for the gain of someone they know who is in competition with their employer. The judges also mentioned in this case that these duties will be more demanding on employees holding senior positions.

Confidentiality restraints Most employment agreements will contain a clause restraining misuse of the employer’s confidential information, but are these clauses really enforceable? This issue was examined in a recent case involving a senior manager, who decided to leave his employment to become involved in a competing business. The employee used his last months of employment to actively assist the new employer, in direct competition to the old employer, by providing confidential customer and supplier information, sensitive financial information concerning a future bid, and copyright proprietary financial models and document templates. The court found against the employee, and awarded $100,000 in general damages to the wronged employer. Whilst an employer may find it difficult to prevent an employee from making some preparation to leave their employment

Non-compete restraints Many employment agreements will contain clauses restraining an employee from competing with the former employer for a set period of time. It is often times viewed that these restraints are not enforceable, however in one recent case, the court ordered that a non-compete restraint be upheld in relation to 2 former executives, even though the restraint period in their contract was due to expire the following month. The decision shows that the courts are still prepared at times to uphold noncompete clauses, even if this may cause inconvenience to the former employee. The case related to very senior employees who had been paid significant remuneration under their contracts, and the court was clear that both of these facts were significant factors in their decision to uphold the restraints. In another case, however, the court ordered only partial enforcement of post-

termination clauses – the consequence being that a former manager was able to continue to work for a competitor of the former employer, though not work on new business development for the new employer until the restraint period was completed. Both of these cases highlight that post employment restraints might be enforceable, depending on the seniority of the positions, the remuneration and the court’s assessment of the relative fairness of the position. The take-away The take away for you is that confidentiality and non-compete restraints may both be highly enforceable, and therefore if you suspect a candidate might be in breach of their contractual obligations in their dealings with you, or in accepting a position with a new employer, tread very carefully.

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 June 29


The Panel

Damien Ross Director and General Manager ITCOM Australia

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A with Damien Ross and Ben Fuller

If you had 10 minutes with the minister for employment and workplace relations what questions would you ask?

30 June 2013 recruitment extra

If I had 10 minutes with the Minister for Employment and Workplace Relations I would ask what policies they had in place to aid industry growth and encourage employers to hire. Both the current government and the opposition are too focused on how they can buy votes through making employees more welfare dependant on their employer. We need to create a growth-stimulated economy and a competitive, sustainable workforce framework for the future. Australia in 2013 is a long way removed from the isolated and protectionist commercial world that existed prior to the new millennium. Today we are part of a global economy and Australian businesses have to be smarter and more flexible to compete within this global economy. I believe the government needs to offer greater support for start up companies, the granting of 457 visas and investing in training and tertiary education in areas of future demand. With a genuine global economy demand exists in certain industry sectors for skill sets that simply do not exist in Australia. Unfortunately the government has created limitations on the possibility of sourcing talent from abroad due to the stringent tests that are administered up front and unmanageable costs. It is difficult to understand why we continue to prop up our manufacturing sector with $billions per annum when we are clearly too expensive as a nation to compete in this industry. Why not use this money to help create new leading industries that will improve our balance of trade and ultimately provide long term sustainable employment. We need to show more vision and look to what the global economies will need in the future and aim to meet that demand with well equipped and well educated minds coupled with a strong Aussie work ethic and can do attitude. We have been very lucky in this country to be blessed with so many natural resources. However once we dig the last hole what will then drive our economy? We need to be thinking about this question now and have a national vision and strategy for the post mining boom. The Australian people are looking for a government with a vision and the ability to implement a legacy that makes this great nation even greater. Even a glimpse of this in September might offer the right hope and stimulate the economy.

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 Technology has fundamentally changed the face of business in Australia and around the world. In particular, the introduction of mobile computing, cloud software and the bring-your-owndevice trend has seen companies gradually move towards a work from anywhere, anytime approach. The completion of the NBN will further accelerate opportunities and developments deriving from technology. The ability to access high-speed internet from anywhere in the country has the potential to further decentralise the workforce and transform traditional workplaces into virtual collaboration spaces. Although the tools to revolutionise the way we work now within reach, the traditional 9-5 work hours mentality is potentially holding Australians back from being competitive in the global arena. This is not about having employees working 24/7, but about working in a way that is smarter and more productive. I would be interested in hearing the Minister’s approach to adapting to this significant workplace transformation, particularly looking at: • How can Australian businesses overcome the 9-5 mentality? • Will the government lead by example and encourage flexible hours and more teleworking? • Will the government truly tap into the cloud and introduce devices that allow for more mobility for employees? Using the technology and tools we have at our fingertips effectively in the current workplace environment is a conversation I have daily with my clients. Without guidance from the top, it will be difficult to implement these changes.

Ben is a global expert in online recruiting software systems, and is responsible for launching and growing the company’s operations in Australia. Working with Bullhorn for over 10 years,Ben has gained specialist knowledge in online recruitment software, social recruiting and an in-depth understanding of challenges faced by recruiters in Australia. Ben completed a Bachelor of Science in Business Administration at University of Vermont in Burlington, USA.

recruitmentextra.com.au

Be part of...

THE PANEL We are always looking for people to join our expert panel of professionals. It’s a three month commitment responding to one question each issue. Interested in having your thoughts heard? Drop us a line to: imogentear@ thomsonreuters.com

recruitment extra 2013 June 31


Insurance

Assumed Liability

- The Loaded Gun By Carwyn Llewelyn, Principal, Australian Reliance

W

hat do we mean by Contractual or Assumed Liability when relating it to an insurance policy or risk management measures? How can your contractual relationship with your customer affect your insurance programme? These are common questions that need to be addressed when entering into contracts with customers. As a business it is imperative to establish a process for managing contractual risk. Not only should this entail robust negotiation of the indemnity terms but should also include engaging your insurance broker to look at the options available for transferring the exposure to an insurance policy. All Public Liability and Professional Indemnity policies have an exclusion that removes any insurance coverage should legal liability arise by virtue of you assuming the liabilities of another party through a contract. The wording can be something like this: “The Underwriters will not be liable for legal liability assumed by the Insured by agreement (other than the liability arising out of a condition or warranty of goods applied by law) and which would not have attached in the absence of such agreement.” As most companies will be seeking to offload as much of their risk as possible to another party, sometimes unreasonably so, they include clauses within their “standard terms and conditions” requiring the other party to the contract to indemnify them despite the fact they may be at fault themselves. This issue is one your insurer will not want to cover under their policy as standard as they have no control over, or opportunity to analyse, the other company’s policies, procedures,

32 June 2013 recruitment extra

management processes or claims history. The following example from a real life situation demonstrates the impact an assumed liability can have: A recruitment company whose main focus is blue collar labour hire (predominantly tradesmen and manual labour) had a contract with a local government department for the provision of labour hire into their waste management operations. A few months into the contract, one of their on-hired workers injured themselves when working in a waste removal position severely damaging their arm and back. Workcover Queensland sought to recover their costs ($600,000) for the workers compensation claim from the department who were clearly at fault due to poor training, supervision and hazard management processes. The department produced the contract with the recruitment company requiring them to indemnify the department for any bodily injury or property damage claims by third parties irrespective of fault; formally requested indemnity to be provided for the recovery action being bought against them by Workcover Queensland. The recruiter had not discussed the contract with their insurance broker or insurance company. Following a lengthy and expensive court case the recruiter was able to have their liability reduced to 30% or $180,000 of the initial settlement request plus their defence costs however this cost to the bottom line could have been avoided if they had paid attention to the liability they were assuming under their contract. This issue could have been covered under their Public Liability policy or removed entirely with some effective negotiation on the contract terms and conditions. When reviewing the indemnity terms

and insurance provisions of contracts you are asked to sign you can mitigate the contractual exposures by looking out for the following components and having them amended or removed: • No fault indemnification requirements – always ensure the requirement for you to indemnify the other party is linked to negligence as a minimum • Negligence triggers are not applicable to all parts of the clause • There is no contributory write back for the other party’s actions • The other party is asking to be insured under your programme • The other party asks for a waiver of subrogation which removes your ability to recover off them (or for your insurer to do the same) • Your policy is to act as the primary coverage i.e. the limit is to be exhausted before contribution can be sought from the other party’s insurance Aside from amending the contract terms you can still seek insurance coverage which will be available for an appropriate premium. We recommend you engage in discussion with your insurance broker to seek their advice in amending the contract terms and also the options available to transfer the risk through an insurance mechanism. 

Carwyn Llewelyn has 15 years’ experience in insurance broking and underwriting including over six years with a specialist focus on the recruitment industry. He has particular expertise in policy interpretation, contract review provisions, claims advocacy, programme structuring and risk management.


Book Review

Light reading...

THE NEW RULES OF MANAGEMENT

HOW TO DEAL WITH FINANCIAL DI$TRACTION

THE ULTIMATE BOOK OF INFLUENCE

By Peter Cook Wiley

By Dr Steven J Enticott End2End Books

By Chris Helder Wiley

Full of practical advice this book demonstrates the need for a shake-up in management, claiming the ‘old style’ is dead. Business coach Peter Cook puts forward a case that says innovative ideas are not reaching fruition because organisations don’t understand how to implement innovative projects. Cook offers a framework and advice on how to transform a team into ‘implementation ninjas’ that can reach goals and achieve success. “Innovative ideas aren’t enough; successful organisations in the 21st century need to be masters at implementation as well as executing good ideas and creating profit. Implementing projects that matter is the key to optimising organisational productivity, creating a culture of innovation, and to building high performing and engaged teams,” says Cook. Anyone looking to transform their organisation will learn some new skills, tips and tools to effectively change their organisation into one that successfully manages the creation and execution of projects that matter.

Dr Steven J Enticott opens his book with the statement that “one of life’s greatest challenges comes from financial distraction” and argues that it is possible to take action to overcome the day to day barriers that cause such distractions in order to become financially secure. He says it’s too easy to defer, ignore, stall or mess up any or all of the strategies that can take us to our greatest financial goals and uses this book to show readers how to avoid the most common costly mistakes. Based on 16 years of real case studies he covers topics such as the cost of having children, good and bad debt, investing in shares and property, handling finances after divorce, self-employment, restructuring debt, farming with superannuation, utilising selfmanaged super funds, family budgeting, tax office problems and creating wills. For those looking for straightforward, workable advice on common finance issues, this book explains complex financial concepts in a clear and practical way that could help you align your vision and goals with your financial circumstances and potentially reach “a life free of financial distraction”.

The ability to persuade and influence others is one of the most valuable skills a business owner can have but in an age dominated by digital communication people are forgetting that face to face communication is the best way to influence decision makers, says Chris Helder. In his book Helder, a certified practitioner of Neuro-Linguistic Programming, provides 10 essential tools to give a boost to face to face communication skills in order to “win the sale or seal the deal”. The book offers insight into the right kind of communication techniques for any situation. It demonstrates how to read body language, make stronger connections with customers and staff and engage and motivate employees. This is an essential read for business people who need to regularly convince others to take action.

recruitment extra 2013 June 33


NT State Review

STATE OF THE STATES: WESTERN AUSTRALIA

NORTHERN TERRITORY QUEENSLAND

SOUTH AUSTRALIA

NEW SOUTH WALES

VICTORIA

ACT

TASMANIA

Northern Territory

Employment Strategy 20122015

Department of Business, Northern Territory Governement Northern Territory labour market Compared with other Australian jurisdictions, the Northern Territory labour market is buoyant. It has a relatively young and skilled workforce, high participation and low unemployment. The distribution of jobs is highly skewed towards the major population centres and the issues facing urban and remote workforces are markedly different. Employment is concentrated in a few industries, particularly in public administration, safety, construction, health care and social support. Major projects attract considerable investment to the Northern Territory and generate significant employment opportunities across industries and the skills spectrum. These projects tend to have short lead times and generate high demand for skilled labour. The demand for workers in the Territory can be competitive as businesses respond to external conditions and strive to meet their workforce needs. The US$34 billion Ichthys liquefied natural gas project is expected to provide a significant boost to the Territory economy and generate an unprecedented demand for skilled workers. Growth factors have contributed to widespread labour and skills shortages. This can be seen in the steady increase in demand for workers including seasonal and short-term workers, from outside the Northern Territory. The Territory has a larger and under-utilised Indigenous working age population when compared with other jurisdictions. The tendency for jobs to be close to major centres makes it difficult for Indigenous Territorians living in remote areas. Differences between employment outcomes for Indigenous and nonIndigenous Territorians are also significant, especially in remote areas, where little or no private employment exists. Approximately 25% of the Territory’s resident population lives outside major regional centres. Of this, about 80% are Indigenous.

34 June 2013 recruitment extra

Current performance In the five years to 2010-11, the Northern Territory economy grew by an average of 4% each year.1 Over the same period, the Northern Territory’s workforce has grown by almost 22,000 people or an average of 4% each year.2 Nationally, employment grew by an average of 2.4% over the same period.3 Employment growth in the Northern Territory was particularly strong in the following industries: • construction • mining • education and training.4 The drivers behind this increase in employment were a combination of strong population growth (averaging 2% each year7) and the increasing demand for workers associated with a number of major projects. May 2012 statistics indicate that the Northern Territory labour market is performing well. The Northern Territory’s unemployment rate is 4% and the participation rate is 74.1%, the highest rate of all jurisdictions.5

The Territory has a larger and under-utilised Indigenous working age population when compared with other jurisdictions. The tendency for jobs to be close to major centres makes it difficult for Indigenous Territorians living in remote areas.

- Northern Territory Government


Labour force outlook

Solid employment growth is expected to continue in the Northern Territory over the five years to 2017. Deloitte Access Economics forecasts an additional 16 000 people employed in the Northern Territory between 2012 and 2017, equating to an average annual increase of 2.5%.6 The Centre of Policy Studies at Monash University forecasts employment in the Northern Territory will increase by almost 20,000 jobs or an average of 2.6% in each of the five years to 2016-17. Over the same period, national employment is forecast to WESTERN grow by 1.4%.7 AUSTRALIA Over the five years to 2016-17, the major industry drivers of growth in the Northern Territory are expected to be: • health • construction • education and training.8 Growth is forecast to be strongest in the following occupations: • professionals such as registered nurses, teachers and community services professionals • clerical and administrative workers such as contract, project and program administrators and general clerks • technicians and trades workers such as electricians, carpenters, joiners, chefs, plumbers and mechanics.9 Major projects, such as the Ichthys project, are expected to place high demands on the construction and connected industries. Pit Crew Management Consulting Services forecast that construction jobs in the Northern Territory will peak in mid-2013, with an increase of 5500 jobs.10 ABS Cat No 5220.0 ABS Cat No 6202.0 3 ABS Cat No 6202.0 4 ABS Cat No 6291.0.55.003 5 ABS Cat No 3101.06 6 Deloitte Access Economics Employment Forecasts, December quarter 2011 7 Centre of Policy Studies (Monash University) Monash Employment Forecasts, 2011 8 Centre of Policy Studies (Monash University) Monash Employment Forecasts, 2011 9 Centre of Policy Studies (Monash University) Monash Employment Forecasts, 2011 10 Report commissioned by Department of Business and Employment from Pit Crew Management Consulting Services, 2011

NORTHERN TERRITORY QUEENSLAND

SOUTH AUSTRALIA

One of the largest gas projects SOUTH ever undertaken in the NT, theNEWWALES INPEX Gas plant, is yet to start its construction phase. Once this ACT VICTORIA project gets underway, there will be a huge impact on employment in the immediate Darwin region. - Northern Territory: State of the Market TASMANIA

1

2

Northern Territory – State of the market

By Lincoln Crawley, Managing Director, ManpowerGroup Australia and New Zealand. The most recent Manpower Employment Outlook Survey found that employers in the Northern Territory predicted a minimal drop in hiring confidence for the second quarter of 2013. The Net Employment Outlook for the Territory fell by one percentage point to +% 13 well above the national NEO of +4%. The May Budget announcements in the Territory will lead to some change and energy in the market. The Territory Government announced increased spending for local businesses, tourism and land for residential development, all of which will lead to activity in

those areas. As with most of Australia, the Northern Territory is waiting for the Federal election outcome before new plans and projects are implemented. Overall, the sentiment in the Territory is cautious, however, there are Oil and Gas developments on the horizon, as well as the pick-up in seasonal work, which will see hiring increase. The Darwin employment market is linked to the seasonal weather changes affecting tourism, and construction and mining projects. Quarter 2 and 3 are the ‘dry’ seasons, where most projects are planned and executed. To service these projects the number of seasonal workers in the area dramatically increases. This year the ‘wet’ season was virtually non-existent and whilst tourism remained subdued, some construction was able to continue as the traditional monsoon rains were minimal. One of the largest gas projects ever undertaken in the NT, the INPEX Gas plant, is yet to start its construction phase. Once this project gets underway, there will be a huge impact on employment in the immediate Darwin region. Currently, there are a large number of workers from other regions in the country, in Darwin, in anticipation of this project, creating an oversupply of workers in the local market. Transport and Utilities in the region is strong, servicing the continued resource and construction projects, and hospitality will ramp up as the tourism season begins. 

recruitment extra 2013 June 35


On the Move

ON THE M   MitchelLake grow digital talent MitchelLake Group's ambitious growth plans to recruit 18 new team members in six months sees the latest senior appointment made - Denis Duka, State Manager for Victoria. Duka started his career in digital in the late 90s as a Business Strategy Consultant with the Eclipse Group, now Deloitte Digital, before moving into recruitment. He has worked in the digital industry for over 14 years with the last five based in London as Director of Strategic Accounts at Aquent. Duka subsequently took on the position of Regional Director for Aquent and launched their new brand in the UK – Vitamin T. MitchelLake Group has also appointed Tina Neale to head up the contracting division in the digital and technology space. Prior to joining, Neale spent three years managing the contracting recruitment

36 June 2013 recruitment extra

Denis Duka

division for Michael Page Technology across both infrastructure, applications and project space. In addition to these appointments MitchelLake has made three further appointments to Lake Republic, the executive search division, and Rebecca Geyer as Senior Consultant for Melbourne.

Hudson appoints McLean

Hudson has announced the appointment of its new General Manager for Queensland, Rona McLean. McLean brings 20 years of recruitment industry experience having worked in key senior management roles with organisations such as Talent2, WorkPac (White Collar Divisions), Davidson Recruitment and LINK Recruitment. Dean Davidson, Executive General Manager, Regional Australia, Hudson commented, “Rona’s appointment further cements our market leadership position in Queensland. Our Brisbane business will benefit from the extensive experience she brings to the organisation, which is well aligned with our business strategy.” McLean will take up the position from Dean Davidson, who was interim Queensland General Manager.


On the Move

MOVE Oxford Funding rebrands to Bendigo Debtor Finance

Bendigo Bank has rebranded its whollyowned debtor finance subsidiary Oxford Funding, integrating it with its equipment finance and trade finance teams. Bendigo Bank’s Head of Business Finance Sales, Chris Charleson, said that this alignment would assist new and existing customers across the Bendigo and Adelaide Bank Group to better understand and benefit from the three complementary business finance solutions. "Debtor finance is a mainstream tool in established overseas markets such as in the USA and the UK. “In the UK, approximately 43,000 businesses currently use debtor finance,

as compared to about 4,500 businesses in Australia. The opportunities for us are massive as the product’s level of operational sophistication continues to improve. “This message is reinforced by an over 300% increase in uptake by Australian businesses in the last decade. “Just looking at our labour hire customer base, it has grown considerably in the last few years as employers realise the benefits of hiring contract or temporary staff to satisfy their need for a more flexible staff force. You could almost say that debtor finance was created to support this very purpose.”

Futurestep appoints new MD Futurestep, a Korn/Ferry company, has announced the appointment of Nick Simcock as Managing Director, Australia and New Zealand. Expanding on his current role as Managing Director in New Zealand, Simcock will be responsible for the continued growth and development of Futurestep’s service offerings across Australia and New Zealand. “This appointment is a reflection of Nick’s high performance and outstanding client and people skills as well as our commitment to growing and promoting our talent around the world,” said Tim Nelson, President, Asia Pacific at Futurestep. “Nick has demonstrated his ability to develop and lead successful Futurestep businesses and major client

initiatives across ANZ and the Asia region for the Korn/Ferry group for more than 10 years.” Simcock said “With an increasing demand for talent and recruiting solutions in ANZ, Futurestep has a unique opportunity to grow and build on our business presence and reputation. I am delighted to be working with our high calibre teams in both Australia and New Zealand to support our clients’ recruitment and talent management needs.” Prior to joining Futurestep Simcock spent five years in HR consulting in Tokyo leading engagements for global emerging growth and Fortune 500 companies. Simcock holds an MBA and a Bachelor of Arts from Victoria University.

New CEO at Adaps IT recruiter Adaps has announced the appointment of Rod Butterss as Chief Executive Officer. Butterss is a founder and major shareholder of Icon Recruitment, which was sold to Adecco in 1997, and subsequent co-owner of technology recruitment firm Ises, which was sold to Peoplebank for $100 million in 2007. Butterss was also President of the St Kilda Football Club (AFL) between 2000 and 2007. Based in the Melbourne office, Butterss will be responsible for the overall management of Adaps and the achievement of the organisation’s objectives, in particular to mentor and grow the IT recruitment division. “I am extremely excited about Rod joining the team,” said Managing Director Paul Halstead. “Rod is above all else a leader, and brings a wealth of experience and energy to our organisation. I am confident that his appointment will ensure we continue to innovate and grow our business to ensure quality services to our customers.” Butterss said, “it’s great to be back in the industry I love and spent the majority of my professional career in. Adaps has a great pedigree and a talented team of IT recruitment professionals. Adaps have developed some unique points of difference which deliver real value to our clients. My goal is to steer Adaps through to its next phase of growth”.

u&u expands into IT u&u has launched its new IT division with the appointment of two new members to their team. Leah Moule (Partner) and Sharene Webster (Senior Assoicate) have joined from Experis where Moule was the Regional Manager for Queensland and NT, and Webster was the top performing IT recruiter nationally.

recruitment extra 2013 June 37


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1300 287 678 Debtor Finance Services Convert your unpaid invoices into cash in 24 hours with Bendigo Debtor Finance. Call 1800 850 509 or visit www.bendigodebtorfinance.com.au

Have you... . Released a new product, . Produced an industry paper, or . Made a new appointment? Let us know at

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