Inspire Success

Rewarding and recognising your staff can be as simple as a pat on the back to a more structured salary review process. What is important is that your employees feel valued and know they are recognised for the contribution they make to your business.  While it is true that people often do not move jobs for money alone, the remuneration on offer can play a significant role, both in attracting a candidate to join your firm, or leading a current employee to “look around”. Here we look at the salary review process.....

Why do a salary review
You can keep your salary review and performance review separate but it does make sense to bring the two together and allows you to reward your high performing staff. If you are managing both processes it is best practice for the salary review to happen immediately after the performance appraisals. For those who manage these processes they believe that being paid appropriately is a form of recognition and sends a message to staff regarding how much they are valued. Whilst money is by no means the sole motivating factor at work, if you underpay, it is a definite de-motivator, and in this employment market this is likely to lead to staff moving to firms who will pay them the recognition they feel they deserve.

In general, salary reviews are about two things:

1. How the employee performs their job.
2. Where that employee fits relative to the external job market.

Getting the right information for your salary review
It’s important when managing a salary review to look at what the market is paying. You can get information from contacts in your network, from industry information gained through salary surveys from various organisations and from Human Resource and recruitment professionals. Finding out what it would cost to replace an employee in the current market is revealing and valuable information.

Salary reviews are an important process and require care and preparation in order to meet your employees’ expectations and ensure that the review is a valuable process. It is also important that full explanations are offered as to the reasons and criteria behind why salaries are reviewed. Not everyone may receive a salary increase or at least an increase at the level they were expecting, so it is important that their expectations are managed correctly by fully justifying and preparing prior to undertaking the review. Likewise, you may be in a position to offer someone a pay increase at a higher level than they were expecting. Here, it is important that you fully utilise this situation by praising and congratulating on excellent performance or contribution.
Although companies have different approaches to reviewing and remunerating employees, simple considerations can help you make the process become more effective:

Tips for your salary review process

• Have a good understanding of the objectives of your performance and salary review processes prior to beginning e.g. to align your business and employee goals, to recognise and reward well performing employees etc
• The process should be carefully planned and documented from beginning to end
• Ensure all your Managers are trained in the process being used and understand how the review should be conducted. Have template documents that are used so that employees are all treated in the same way and so fairly
• Ensure feedback and decisions are objective and based on your benchmarking criteria and that they are clear and easily understood by your Managers and employees
• Make sure your rating system is fair and easy for employees to understand. Have each rating translate into what the raise in salary will be (if performance unsatisfactory then there would not be a raise)
• Ensure pay is reviewed in line with the Modern Award rates of pay

Is this something that could be an issue at your place? Inspire Success is all about implementing practical solutions that help create high performing workplaces which are customer focussed and free of conflict - no matter what size your business is. Contact Rae Phillips at Inspire Success for further information raephillips@inspire-success.com

In recent newsletters we have discussed the importance of finding and employing the right employees, their induction and their probationary period. Hiring employees is just a start to creating a strong work force. Next, you have to keep them. High employee turnover costs you in time and productivity. Here we discuss ways to reward and retain those employees, the importance of showing employees why they should stay working for you and also how it can improve your reputation with future employees. Salary increases and bonuses are ways to reward and retain employees but in this article we will focus on non monetary ways for retaining that key talent in your business......

Why put so much effort into keeping them?

Retaining employees is a good measure of how healthy your business is. If you are losing key employees chances are that other employees are looking also.

There are a lot of benefits to retaining your employees and these include:-

• Cost savings – the cost of staff turnover is very expensive as well as time consuming
• Improved productivity – continued work efficiency and customer service. It also ensures a reliable knowledge base about your business processes, policies and procedures
• Positive staff morale
• Happy clients – clients have continued relationship with same staff members
• Allows employees to build on their knowledge base and make career development
• Positive culture for your business which is good for current employees and new recruits

Ways to reward and retain employees
It is important for your business to keep your employees motivated and engaged and in return retain them. As the saying goes; “A happy worker is a productive worker”.

Salary is not the only way to motivate staff. There are a number of non monetary ways to  help your staff feel important and rewarded and keep them motivated and happy. These include:-

• Incentivise your employees – there are low and no-cost incentives you can use to make your staff feel valued e.g. an afternoon off, cinema tickets, breakfast morning etc
• Meet your employees regularly to talk about their work, what motivates them, their professional development and discussing the long term vision for them with your business
• Good quality supervision of employees – supervisors have an important role in the retention of employees. Its very important the supervisor does not make the employee feel undervalued. Examples of good supervision include providing feedback about performance, having regular meetings and being clear about work expectations.
• Allow employees to offer ideas, have open communication and give feedback – let employees feel comfortable doing this and encourage their involvement
• Having a fair and equitable company – treating employees equally is very important in retaining them
• Giving employees the opportunities to learn and grow in their knowledge, skills and career -   coaching employees by Managers, attending seminars, training, conferences etc
• Promoting from within whenever possible, having clear paths of advancement for employees

To retain staff you must make them feel rewarded, recognised and appreciated. It is good to be creative in (non monetary) ways of keeping employees happy and choose whatever works best for your business, even the simple act of saying “thank you” can go a long way…….

Is this something that could be an issue at your place? Inspire Success is all about implementing practical solutions that help create high performing workplaces which are customer focussed and free of conflict - no matter what size your business is. Contact Rae Phillips at Inspire Success for further information raephillips@inspire-success.com

It seems that absenteeism is causing a lot of stress for many of us – not only because employees who are consistently absent or late to work cause headaches, but they also impact on our bottom line!

Here are our top 5 tips for reducing absenteeism at your place:

1. Set standards of attendance
Start right at the start –your induction and your leave policy should outline what you expect if they are going to be late or are not able to get to work. For example employees should;

• tell their manager they will be absent;
• phone their manager within a certain time-frame to advise why they are unable to make it to work, the nature of their illness and when they expect to return;
• know that they will be contacted if you haven’t heard from them about why they are absent; and
• provide certain evidence that they are unfit for work i.e. a medical certificate or statutory declaration, in a certain way and within a certain time-frame.
  

2. Keep an eye on why people are absent
Collect information on patterns of absence, regardless of how many employees you have. Only with these statistics are you going to know if you have an issue in your workplace. Keeping an eye on these trends can assist you to:

• identify if you have a problem with absence at your workplace;
• determine what type of absence usually occurs in your workplace i.e. is it mainly Monday morning ’sickies’ or cases of longer-term sickness?; and
• highlight patterns in absence levels. For example, are absence levels higher in one particular team or at a specific time of year?

3. Conduct return to work interviews
For longer term absences, a return to work interview allows you to determine whether the employee is able to return to their duties and if modifications to their duties are required. It also assists you to determine if there is enough reason for disciplinary action. The focus on their absence gives notice to the employee that it hasn’t been noticed. Of course this will depend on the employee’s absence record, and any patterns.

4. Promote opportunities for flexible work
We know it is a legislated requirement, but why not be a trail blazer and help employees achieve a balance between their work, family and lifestyle commitments? There are lots of statistics that show that work-life balance reduces absenteeism. Just looking at your workplace and the roles differently might unearth a few opportunities to work flexibly that you didn’t know existed.

5. Make the job as good as it can be
Research suggests our people spend only 20%, or one day each week, doing tasks for which they have a genuine aptitude. Of course they are busy all the time. You can add real value and unearth strategies to engage and fulfil your staff by identifying roadblocks and helping remove them. In your informal discussions ask, "How can I help make your job more fulfilling, engaging and productive?"

These conversations with your people have economic benefits. All investments yield a return. How can you get your staff to work?

You need proof you did it!

With the introduction of the Fair Work Act 2009, from 1 January 2010 it became mandatory for an employer to provide an employee with a copy of the Fair Work Information Statement. The statement needs to be provided to the employee before employment or as soon as practicable after commencement of employment. Provision of the Fair Work Information Statement is one the 10 National Employment Standards (NES), which are outlined in the Fair Work Information Statement. Additional information in this document includes modern awards, agreement making, individual flexibility arrangements, freedom of association and workplace rights, termination of employment, right of entry, and the Fair Work Ombudsman and Fair Work Australia.

In recent audits conducted by the Fair Work Ombudsman, businesses have been asked to provide proof that an employee has received a copy of the Fair Work Information Statement from their employer. Additionally, as provision of the Fair Work Information Statement is one of the NES, employees are able to make a claim against their employer for a breach of the NES if they have not received the Fair Work Information Statement.

Keep this in mind when you are inducting your new employees. It may also be worthwhile reviewing your standard induction processes to ensure you have a system in place to record the provision of the Fair Work Information Statement to your employees when they join your business. Here is an induction checklist we prepared earlier!

Contact Inspire Success on 1300 620 100 or terri@inspire-success.com if you would like to discuss how this affects your business.

Significant dates for new employees:-
Now you have completed your interview process and selected your new employee it is important to manage some critical dates. These include induction, probation and confirmation of the new employee. A very important step is to set a probation period for the new employee and for that length of time and the process to be clear to them. 

Length of probation period:- 
The length of the probation period and the terms around it should be set out in the terms and conditions of your employment and then be managed carefully.  A ‘probation period’ is usually a three month period (based on calendar months) from the date of commencement of employment where you assess the suitability of the employee for the role and the employee has the opportunity to settle in and to determine if the role meets their needs. A key thing to remember is the probationary period must be set in advance and must be reasonable. Three months can be suitable for some roles but for a more senior role you could have a probationary period of six months (as long as there are reasonable grounds for this). For a ‘small business’, i.e. less than 15 employees by head count and including associated entities (see s.383 of the Fair Work Act), the period can be increased to twelve months.  

Why have a probation period:-                                                                            
The probation period is a time when you can validate your selection and ensure there is a good fit between the new employee and the job. It is a time when there should be communication between you and the new employee and some assistance given to them to settle in.  In essence, an employee on probation has been appointed but not yet confirmed in a permanent role. The purpose of a probationary period is to provide:

• Time for induction / onboarding and training
  
• An opportunity to assess the employee and their ability to perform in the job
  
• Time to assess fit into your business
  

Regular feedback to the new employee is important and should be provided throughout the probationary period.

What are the benefits of a well managed probation period:-

• allows the new employee settle into the workplace
  
• provides a focus for you and the new employee on what knowledge and skills are required to be developed during probation for them to succeed in the job
  
• provides some structure for the new employee on the key aspects of their job and the key people they will be interacting with
  
• allows you to give and receive feedback on a new employee’s progress during probation.
  

If you are generally happy with the performance of your new employee but continue to have a few concerns at the end of their probationary period, then you can extend the probation via a review on or before the end of it. You will also need to provide information in writing, detailing the period of the extension and the areas which require improvement. Provided you act sensibly, you can let the person go if they are not working out without having to carry out the usual disciplinary procedures once an employee is confirmed.  

Review the new employee’s progress regularly and provide them with feedback so they know how they are progressing – either with praise or with explanations as to where improvement is required.  We think it is a good idea to do a Probation Review at the mid point of the probation period.

Overall, the probationary period is an excellent tool to ensure that the new employee is performing in the way you want and is motivated, committed and happy working with you and your organisation. It allows you to be fair and highlight areas which require improvement, and it provides time and scope for the new employee to improve in those areas. The result should be that at the end of the period, the decision to continue or not is easy and clear for both parties.

Confirmation of appointment:-
As the probationary period nears its conclusion, you need to decide whether you wish to retain the new employee or not. If you do, then confirmation of appointment is the process used to end a probation period and appoint an employee permanently. Ideally, a letter is given to the employee confirming the date their probation period ended and affirming the details / conditions previously agreed upon of their employment. The letter states that the employee's performance has been satisfactory and it confirms the employee's appointment to the job. It is good practice to give your new employees a confirmation letter when they successfully complete their probation but it also provides affirmation to the employee that they are doing well in their role and have peace of mind that their job is now confirmed.

Is this something that could be an issue at your place? Inspire Success is all about implementing practical solutions that help create high performing workplaces which are customer focussed and free of conflict - no matter what size your business is. Contact Inspire Success for further information - kate@inspire-success.com

Selecting the people

The first step is to select the best candidate for the job – that can’t be too hard right? The Key Recruiting Criteria (KRC) are critical here. In selecting the candidate make sure you have a detailed interview process, testing if required and conduct reference checks. In the interview process your company’s missions, values and goals should be at the forefront and a positive image of the company presented at all times. It is also essential to offer a competitive remuneration package if you want to attract the best talent and retain them once they join.

While offering excellent benefits and competitive salaries is part of the recruitment process, delivering a great working environment is hugely important also.  Employees want to work in a positive environment, and showing them that you have that can go a long way towards gaining their interest in working for you.  Word spreads quickly, and if your company has a reputation as being a great place to work, you'll find that qualified applicants will want to work for your company. 

Work environment:

A positive work environment is important for employees’ mental and emotional health and can mean that employees take pride in their job activities and have loyalty to their work. Employees who are happy in the workplace will be more effective than those who are not. Aim to make yours a workplace where there is fun - (casual Fridays, work-life balance, having a social committee, celebration of birthdays and special events in employees’ lives etc) How will you recognize and celebrate your employees' accomplishments?  

Think about how you can engage your employees and make them feel that they are a vital part of the business, that their hard work is appreciated? Engaged employees usually express greater job satisfaction, are more productive, stay with the company longer, and are committed to the overall success of the business. Managers should also allow their employees to be involved in any decisions that directly affect their jobs.

Onboarding and ongoing training/development:

"The direction in which education starts a man, will determine his future life" - Plato, Greek Philosopher

when an employee joins your business, Onboarding (induction training) is very important and it should start in their first week and continue over the first month. Onboarding should include information on your company’s history, goals and values, health and safety and the company policies and procedures. If it is done well, the Onboarding process can engage and motivate new employees from day one.  Including a number of employees at different levels in the business will get good results with your people. Your people need to feel they are part of a team and that there is room for them to grow.

Once you have an established team, it is important to recognise that capabilities change and jobs evolve so getting the best from your team requires constant vigilance. keeping a focus on training is the key.  Not only will it help provide your people with better skills and abilities, but it will also help them feel as though you're invested in their interests.  By providing them with training and continued learning, you help your people feel as though they are advancing in their chosen careers.  Knowing that they'll receive this attention can help them feel a sense of pride in their work and a loyalty to your company.  You'll get more skilled workers who are more motivated to remain with you and contribute.  They will become your ‘raving fans

This month, Terri attended an employment law update and has provided useful information on the application of the Fair Work Act. Here, we cover some of the National Employment Standards (NES) and some important things to keep in mind. Terri also provides us with information on two changes to the Occupational Health and Safety Act..........

NES - Maximum hours:

                             Full time Contracts should state a maximum of 38 hours (‘plus reasonable additional hours’, if required). All existing contracts should be updated to reflect this figure (from the previous 40) in order to be deemed as compliant with the Fair Work Act.   

                             Remember you can change the maximum hours if you can show that the employee is better off overall

NES - Flexible Working Arrangements:     

                             Employees who apply for a flexible working arrangement must receive a written response to their application within 21 days from the employer. Employers must demonstrate that they have given proper and reasonable consideration to the request or they may be in breach of the Fair Work Act.

                             Providing flexibility for your people not only addresses compliance, you are likely to get it back too!

NES - Annual Leave Payout on Termination:        

                             Under the NES, 4 weeks annual leave is accrued at the base rate of pay, however a contract/award/industrial instrument may provide additional benefits to this. As a result, annual leave that is paid out on termination should be paid at the rate the employee would have received had they taken the leave (ie with the additional benefits that are included in their contract/award/industrial instrument).

NES - Notice of Termination:         

                             The scale for notice in the NES is 1-5 weeks. It is important to ensure that employees have a clause in their contract that requires them to give the period of notice or else they can resign without having to give any notice.

                             You can contract and provide for a greater period of notice, and it could benefit your business if a departing employee needs to stay a little longer!

Link to the Fair Work Act website for information on NES:-

http://www.fairwork.gov.au/leave/national-employment-standards/Pages/what-are-the-10-nes-entitlements.aspx

 

Work Health & Safety – Ignore this at your peril!

From 7 June 2011 there have been changes to two points in the NSW Act.

1. The employer must now ensure the safety of employees and others as far as is reasonably practicable.
2. Directors and managers were deemed guilty of breaching the OH&S Act if an employee was injured. Now the responsibility for these breaches stands with an officer of the company, as defined in the Corporations Act.

Managers must have knowledge of the risks within the business.

From 1 January 2012 the Model Work Health & Safety Act will take effect. This sees a move away from the employer/employee relationship to a more inclusive definition of those covered such as sole traders, and commercial associations. The former employer term is now referred to as a person conducting a business or undertaking. An employee can be an employee, apprentice, volunteer or anyone on site. There is an obligation to consult with all stakeholders on site. There is now the safety equivalent of a union delegate that can be appointed and this person can also be the union delegate so this can create some challenges for businesses.

There is now a statutory requirement for workers to take reasonable care for their own health and safety.

Link to website :-

http://www.legislation.nsw.gov.au/xref/inforce/?xref=Type%3Dact%20AND%20Year%3D2011%20AND%20no%3D11&nohits=y

The Small Business Fair Dismissal Code came into operation on 1 July 2009. It applies to small business employers with fewer than 15 full time equivalent employees. Small business employees cannot make a claim for unfair dismissal in the first 12 months following their engagement. If an employee is dismissed after this period and the employer has followed the Code then the dismissal will be deemed to be fair. Employees who have been dismissed because of a business downturn or their position is no longer needed cannot bring a claim for unfair dismissal. However, the redundancy needs to be genuine. Re-filling the position with a new employee is not a genuine redundancy. It is fair for an employer to dismiss an employee without notice or warning when the employer believes on reasonable grounds that the employee’s conduct is sufficiently serious to justify immediate dismissal. Serious misconduct includes theft, fraud, violence and serious breaches of occupational health and safety procedures. For a dismissal to be deemed fair it is sufficient, though not essential, that an allegation of theft, fraud or violence be reported to the police. Of course, the employer must have reasonable grounds for making the report

Other Dismissal

• In other cases, the small business employer must give the employee a reason why he or she is at risk of being dismissed. The reason must be a valid reason based on the employee’s conduct or capacity to do the job.
• The employee must be warned verbally or preferably in writing, that he or she risks being dismissed if there is no improvement.
• The small business employer must provide the employee with an opportunity to respond to the warning and give the employee a reasonable chance to rectify the problem, having regard to the employee’s response.
• Rectifying the problem might involve the employer providing additional training and ensuring the employee knows the employer’s job expectations.

16 July 2010

Small Business Fair Dismissal Code Checklist:-

The Checklist is a tool to help small business employers comply with the Small Business Fair Dismissal  Code. ...link to the Fair Dismissal Code Checklist can be reviewed here:-
http://www.fwa.gov.au/documents/dismissals/Small_Business_Fair_Dismissal_Code.pdf

More than one million Australians experience depression each year, with depression currently the leading cause of non-fatal disability. Despite this, depression is not always well managed by organisations and stigma and a lack of awareness can be barriers to seeking help. Did you know that each year undiagnosed depression in the workplace costs $4.3 billion in lost productivity and this excludes work cover / insurance claims, part-time or casual employees, retrenchment, recruitment and training. Workplace stress is a significant risk factor for developing depression

On average, every full-time employee with untreated depression costs an organisation $9,665 per year.  In addition to absenteeism, depression accounts for more than 12 million days of reduced productivity each year.  Around 50 per cent of people with depression don't get help for it  but research shows that implementation of early diagnosis and intervention programs can result in a five-fold return on investment as a result of increased employee productivity.  Increased awareness about depression and understanding the relationship between mental health and the workplace is more important than ever.  The momentum in Australia to address these issues is growing.

Beyond Blue recently reported key results of a training needs analysis conducted in order to identify the learning needs of organisational leaders in relation to managing mental health, particularly depression, in the workplace. Their respondents were Managers/Leaders, Learning and Development and Human Resource Professionals from a variety of industries within public, private and not-for-profit sectors. Experience with depression in the workplace was common amongst their respondents, with 68 percent reporting that they had worked with, or managed, someone who was experiencing depression. Some respondents indicated the situation was related to relationship problems, with the major workplace issue being work performance.  Only 14 percent of the Managers/Leaders reported participating in specific training related to managing mental health in the workplace. They reported that the most useful part of this training was information about identifying mental illnesses, information about services and resources and workplace strategies for responding to mental illness at work.

What is clear from this information is that the following is now essential for businesses:-  

• Leaders must promote and support good mental health in the workplace, have preventative strategies in place and develop policies and procedures around how to address mental health issues with their staff
• There must be an understanding of the impact of working conditions on mental health
• They must be able to identify signs and symptoms of mental health problems and
• Have the training / knowledge to be able manage workplace mental health problems and have effective treatment approaches to common mental health problems

Is this something that could be an issue at your place? Inspire Success is all about implementing practical solutions that help create high performing workplaces which are customer focussed and free of conflict - no matter what size your business is. Contact Rae Phillips at Inspire Success for further information raephillips@inspire-success.com

Exit interviews can provide you with some difficult feedback to read but can help you to improve areas of your business and are not an opportunity to be missed. A well constructed exit interview process can provide invaluable insight, improve employee retention levels and help to improve employee satisfaction levels.

What is involved in exit interviews, what are the benefits are and what is important in the process.

What are exit interviews and what are the benefits of conducting them:-

An exit interview is an interview that is conducted with an employee when he or she leaves the company. They are used to gather information from departing employees to help the company improve working conditions, retain existing employees and identify problem areas within the organisation. One of the great aspects of exit interviews is that the departing employee often feels less concerned about the consequences of what they discuss and usually are willing to provide open and honest feedback about their reasons for leaving and their thoughts about what the company could do to improve.

The information from each interview can provide you with feedback on why employees are leaving, what they liked about their employment and what areas of the company need improvement. They can also help the company to improve working conditions and retain existing employees. Exit interviews are most effective when the data is compiled and tracked over time. Exit interviews are an excellent source of information for organization improvement. They are commonly performed in person with the departing employee.  Usually it will be the manager, the HR representative or a third party who conducts the exit interview when in person. Other s use written or online questionnaires to conduct exit interviews.

How to conduct an effective exit interview process:-

1. Ensure the person asking the questions is 100% impartial about the departing employee and that the employee feels comfortable with the interviewer
2. Create an environment in which the exiting employee is comfortable providing honest feedback. Assure the exiting employee that the feedback he or she provides will be combined with other employee feedback and presented to management in an aggregated format. This helps the employee comfortably participate in the exit interview
3. Record the information in a centralized system and track it over time so it can be reported unifying results quarterly / bi-annually
4. Have a standard exit interview questionnaire form so the same information is collected from each person and this ensures comparability throughout the company and across time
5. Analyse the findings to identify consistent trends, patterns and themes and use the results to implement strategies to increase staff retention and increase employee satisfaction and commitment
6. Have a well timed interview process so that the interview is not overlooked when employees resign suddenly or have short notice periods
7. End the exit interview meeting on a positive note. Commit to using the information provided to improve your workplace. Wish your employee success in his or her new endeavor.