Don't trade candidate experience for recruitment efficiency

Holding your interviews by video may appear to improve the efficiency of the recruitment process, but in fact most candidates prefer more face to face contact.

The majority of candidates would rather have an in person or telephone interview to a video interview, according to research from ManpowerGroup Solutions.

Video interviews may be more efficient and time savvy but employers must be careful to not make the candidate feel uncomfortable. Research has revealed that job applicants interviewed through video conferencing come across as less likable, while those doing the hiring are viewed as less competent.

In the last 12 – 18 months video interviewing has become more common but realistically it should only be used when absolutely necessary and other options are not available, it should not be the means to an end.

Video recruiting can be useful at the beginning of the recruitment process when screening candidates but as the recruitment process progresses you should not underestimate the value of sitting with a person face to face and having a conversation with them.

In some respects, by trying to speed up the hiring process you may actually be reducing the quality of the candidates.

The research carried out by the ManpowerGroup also reveals how much the recruiter’s personality in an in-person interview influences the outcome of the hiring process.

Candidates that cannot relate to an interviewer may look elsewhere or accept an offer from a competing organisation.

A recruiter’s personality should portray the company brand, culture and values. They are the first impression a candidate gets of a company or organisation and this initial contact is absolutely crucial for a candidate to form their own opinion about whether or not they would like to work there.

Employers should utilise recruitment technology that suits their intended talent pool, tailoring their hiring approach to candidate profiles.

It is important not to view the interviewing process as a transaction. At the end of the day you are hiring a person whom you wish to embody your brand, so you must try and engage them and make them feel connected – not part of a transaction.

If your hiring someone to fill a position that may involve interacting remotely with clients or team members a video interview may give you some insight into how well a candidate may perform when they are needed to conduct a video conference.

Tips for Implementing a Performance Management System

The basic theory behind a performance management strategy is that if employees know what is expected of them, they are more likely to excel at their jobs. This is also a vital aspect of employee engagement.

By implementing a system like this you will see improved individual performance, greater employee engagement and overall better organisational performance.

Here are some keys steps to implementing a successful performance management system.

1. Clarify Objectives

An important first step is identifying some major objectives for the program and refining the need for a performance management system. What should be included within the system? You can choose to get input from your employees when trying to define the parameters of your performance management system or you can delegate it to your HR department. A good place to start is to use the definition of improving performance and satisfaction.

Some helpful things to include in a performance management system are:

• A clear company vision
• Documented and communicated core competencies
• Formal and Informal rewards which are seen as consistent and fair

2. Support of Your Managers

Once your objectives have been identified along with your expected business outcomes, you have to ensure that your managers are on board. The agreement of the senior management team is needed before any implementation steps are taken. Many systems fail because they are not seen to be included in a managers basic day to day responsibilities. Senior Managers must be seen to be actively supporting the process.

When training your managers in the implementation of a performance management system it is important that they understand:

• How much time is required to implement the system and maintain it on an ongoing basis?
• How the system works and what it will deliver if its implemented successfully
• And developing the skills necessary to carry our effective performance management often take time – more time than expected.

3. Prepare system and supporting materials and documentation
                            
Develop a process and documentation to support the system. Ensure core competencies are defined with associated behaviours and are communicated to all staff.

Included in the documentation should be:

• Review performance against the key parts of the job
• Review performance against any specific goals or objectives which have been set
• Review performance against the organisation’s core competencies if they have been defined
• Identify any learning and development needs for both short and longer term
• Allow for feedback on progress on an ongoing basis
• Ensure job descriptions are current and in a form that provides clear and measurable results required

What Motivates Employees?

Other than the obvious, money, what motivates your employees to do their best work?

Here are a few non-monetary ideas to motivate your workforce.

• Praise. If someone does a job well, let them know, give praise where it is due. This costs you nothing but it means a lot to your employees. Giving regular praise where it is warranted helps to validate your staff’s hard work and encourage them to do their best all the time.
• Communicate with employees. It may sound very basic but employee communication can often be overlooked in many organisations. If an employee has a concern or some other issue that may prevent them from working productively, they need to know that communication channels are open. Taking the time to converse with employees can make them feel more comfortable in their jobs, more settled and better-motivated to work hard for the organisation
• Ask your staff for their input. Ask for their opinion, it makes staff feel as though their opinion matters. Instead of making a demand, ask them “what do you think about doing it this way?”
• Never point fingers. Being called out for making mistakes destroys your staff’s self-esteem. Instead of blaming or criticizing your employees, have a conversation with them. Discuss the problem with them and work out how it could have been handled differently. This will help them to learn from their mistakes.
• Establish a good work environment. A clean, aesthetically pleasing workplace can go a long way to motivating staff. Make the effort to make your workplace look nice. 
• Award Leadership roles. By rewarding good performance with leadership opportunities you inspire your employees to work hard and aim high.
• Take your team out for a meal every once in a while.  This brings everyone together outside of the office and encourages them to get to know each other and bond. Having a tight knit workforce makes work a more enjoyable place to be.
• Plan some fun activities. Planning something fun for your employees to do together helps them to blow off some steam and see their workplace in a more positive light.
• Organise a friendly competition. It’s astounding what a little competition can do for your employees. Hold a weekly or monthly competition with a small prize for the winner, it can be as simple as some movie tickets. Keep track of the results and display them somewhere in the office where everyone can see them. This is a great way to motivate people to work harder.

Dos and Don’ts of your Work Christmas Party

The work Christmas party is a time to celebrate and let your hair down with your colleagues after a busy year, however it is important to remember that you are at a professional function and you must behave that way.

Your work Christmas party is a great opportunity to build relationships so use this time wisely and don’t do anything that may cause these relationships to be damaged or deteriorate.
Read our tips for enjoying yourself without jeopardising any professional relationships here.
Dos and Don’ts of your Work Christmas Party.

The work Christmas party is a time to celebrate and let your hair down with your colleagues after a busy year, however it is important to remember that you are at a professional function and you must behave that way.

Here are a few tips for enjoying yourself without jeopardising any professional relationships.

• Drink responsibly. Don’t forget that you are at a work function so treat the party as an extension of your work day. The more you drink the bigger the chance that you may do something you regret.
• Eat before you start drinking. Drinking on an empty stomach is asking for trouble. Alternate alcoholic drinks with water and more food.
• Find out the dress code and dress accordingly.
• Arrive on time. This will give you the opportunity to mingle with everyone and still leave early without appearing rude.
• Mingle. Do the rounds and make sure to acknowledge all of your colleagues. The Christmas party is a good opportunity to talk to everyone in a relaxed and happy atmosphere and find out a little bit more about them, their hobbies, family, etc.
• Even if it’s someone you don’t particularly like or get along with, make an effort to have a brief chat with them.
• Although it’s important to relax and chat with people at a Christmas party, try not to let your guard down too much and reveal things about yourself that you may not necessarily want your co-workers to know.
• Be mindful of your body language and how you speak to people. Do not touch people in a way that could be misinterpreted or say things that are provocative or demeaning. Dirty or off-colour jokes may be offensive to others so avoid telling them.
• If you see a co-worker that has obviously drunk too much or is behaving inappropriately, step in and bail them out. Explain to them how their behaviour appears to other people and if this doesn’t work, discreetly call them a taxi and send them home.
• Make arrangements to get home after the event in advance, pre order a taxi or organise a spouse or friend to come and get you at a designated time.

Your work Christmas party is a great opportunity to build relationships so use this time wisely and don’t do anything that may cause these relationships to be damaged or deteriorate

One on One with the Boss

Most management conversations happen during group meetings, emails. Over the phone or when a problem arises.

However, it is good practice to meet with your boss one on one more frequently to get a little advice, support and motivation.

The main goal of a one on one meeting with your boss is communicating with them about the work you are carrying out for them.

• Before you go into a meeting with your boss ask yourself the following: 
• Are there problems that haven’t been spotted yet? 
• Problems that need to be solved? 
• Resources that need to be obtained? 
• Are any instructions or goals not clear? 
• Has anything happened since we last talked that the boss should know about? 
• Are there questions the boss needs to answer? 

Here are a few tips for making the most of a one on one session with your boss.

• Be prepared – make notes about what you would like to discuss with your boss ahead of time. If you have a problem to discuss bring your recommended solution, likewise if you have a decision to be made, make your recommended decision known.
• Keep your boss informed of all the key things you have been working on. This is a good opportunity to highlight your accomplishments and get some guidance and coaching from your boss.
• Own up to your mistakes. If you are having a meeting due to a mistake you have made, don’t be afraid to own up to it and make yourself accountable. Do not try and pass the blame or point the finger at your colleagues. 
• Always try to have a positive attitude in meetings with management. It is not productive or helpful to go into a meeting with a negative state of mind and you will cover more ground in your meeting if you stay upbeat.
• Include career development as a regular agenda item in your meetings. This will help you determine and achieve your goals as well as demonstrate to your boss that you are ambitious and have a desire to improve.
• Ask for feedback. Many bosses find giving feedback uncomfortable but by asking for it you are opening the lines of communication and making them feel more comfortable. 
• Let your boss know what you need in order to be successful. If you let your boss know in a constructive way how they can support you, most will do what they can to help.

Staff Retention Strategies

If you are not doing all you can to keep your staff happy and engaged, you may be at risk of losing your most productive workers to your competition.

You do not need to spend a lot of money to put a staff retention strategy in place. Here are a few things that can help you keep your staff happy.

• A well-defined career path – Most employees want to progress in their careers and like to know that there are opportunities available within their workplace to do so. Have discussions with your team about their professional goals and aspirations and how they can achieve them within your organisation. Offer mentoring and training programmes.
• Acknowledgement - Make an effort to acknowledge staff achievements and hard work. Most staff are more engaged and have a stronger feeling of satisfaction in their work if they feel that managers appreciate their contribution to the workplace.
• Trust – It can be difficult to be productive when someone is breathing down your neck while you are trying to go about your duties. Most employees like to feel that they can be trusted and relied upon to complete their work efficiently without being micro managed.
• Flexible work environment – Flexible work agreements are one of the most desirable elements of a work environment for staff. Giving your staff the opportunity to attend their children’s school activities or medical emergencies can make a big difference to an employee’s happiness within their job. Helping your staff maintain a healthy work and personal life balance can really increase loyalty to your company.
• Ethics – Most people would prefer to work for a company that they believe is good. It can be beneficial to promote ethics when interacting with customers and employees. Ensure your workplace encourages fairness and diversity.
• Communication – Well defined communication is one of the most important factors of retaining staff. Most staff liked to know what is expected of them and to have clear a clear job description or role within the company. Keep employees up to date when it comes to developments within the organisation. People feel more involved and part of the organisation when they are kept in the loop. Encourage employee feedback and ideas. When staff are involved with projects from the beginning they are more likely to feel connected to the outcome. Make sure to address interpersonal problems among staff members as soon as possible.

By using some of these strategies you can help encourage employee motivation and loyalty and lower the likelihood of losing staff to your competition.

The Benefits of Implementing a Performance Management Strategy

A performance management strategy is important for the improvement of the overall structural performance of a company by managing the performance of both teams and individuals to ensure the achievement of organizational ambitions and goals.

A successful performance management strategy can play a vital role in managing the performance in an organisation by:

• Making sure that the employees understand the importance of their contributions to the company’s goal.
• Ensuring that each employee understands their role within the organisation and what is expected from them.
• Identifies if employees have the specific skills needed to fulfil the expectations of their job.
• Facilitating effective communication throughout the organisation.
• Encouraging a pleasant and harmonious relationship between managers and employees.

Performance management strategies can have a positive influence on employee engagement and job satisfaction by

• Providing honest and open job feedback to employees
• Establishing a connection between performance and compensation.
• Providing learning and developmental opportunities when they are needed.
• Establishing clear performance objectives.
• Providing opportunities for career growth.

Establishing defined goals and regularly assessing individual performances can help you to establish any major skill gaps, therefore helping you understand where extra training may be needed. A performance management strategy can help you evaluate the willingness of an employee to take on higher responsibilities and provide feedback to employees on their current competencies and where they might need to improve.

A common misunderstanding among managers is that behaviour and activities are the same as results. An employee may give the impression of being very busy but may not be actually contributing at all towards company goals. They may not, for example, be fulfilling their job using the latest or most time efficient procedures.

A performance management strategy helps to identify organisational goals and the measures that need to be taken to achieve those goals. It also helps to gage the effectiveness or efficiency and means of attaining these goals.

The results from the information collected from a personal management system have a wide variety of uses. They can help with setting standards for comparison with best practices in other organisations. They can provide you with a consistent basis for comparison during internal changes or restructures. It can also help you to establish results during improvement efforts such as employee training or management development. They help to encourage fair and equal treatment to employees based on their performances.

The Importance of Staff Retention

Many companies are now beginning to view employee retention as a critical issue. High Employee turnover increases expenses and can also have negative effects on company morale.

Implementing strategies devised to retain good workers can help counterbalance replacement costs and reduce the indirect costs associated with high staff turnover such as lost clients and loss of morale.

Employee retention has become an important topic for many reasons.

These include:

• Social media networking tools such as LinkedIn make it easy to observe new job opportunities or get poached by another company
• Costs associated with hiring new staff, advertising, interviewing and hiring etc.
• Training new staff
• Loss of productivity. It can take up to 2 years for a new staff member to reach the same productivity levels as existing staff members
• Loss of engagement. Retained employees who see a high turnover often get disheartened and lose engagement

The longer staff stay with an organisation, the more productive they get .They get to know the systems, products and learn how to work together as a team.

Many high performing companies have loyal employees and each company has its own strategies for retaining their employees.

Some of the interesting things to consider:

• Compensation is a factor but does not play as big a role as you would think. Over-compensation will not offset a poor work environment
• Job fit is significantly important. Hiring the right people for the right positions by realistically advertising job positions will save you a lot of trouble in the long run. If you oversell a job you can suffer from high staff turnover. Effective retention strategies often begin during the employee recruitment process. Employees are more inclined to remain with a company that fulfils the promises made when their employment offer was extended. Companies that provide a realistic view of their corporate environment, advancement opportunities and job expectations to new hires can positively influence employee retention
• The work environment and culture matter. Staff want to feel appreciated, comfortable and included in their place of work. Employees that enjoy what they do and the atmosphere in which they work are more likely to remain employed with their company

Implementing an employee retention program is an effective way of making sure key workers remain employed while maintaining job performance and productivity.


In the end the most prosperous organisations are those that respect their employees and invest in building an engaged work place environment.

How much notice must you give before Dismissing an Employee?

When an employee is being dismissed, notice must be given. The notice starts when the employer tells the employee that they want to terminate the employment. Notice ends on the last day of employment.

The length of notice an employee must be given is determined by how long they have worked for you and their type of employment. If someone has worked for you continuously for over one year but less than three you must provide a minimum of two weeks’ notice.

An employer must give the following notice periods when terminating an employee;

• Less than 1 year’s employment - 1 weeks’ notice.
• 1-3 years employment - 2 weeks’ notice
• 3-5 years employment - 3 weeks’ notice
• Over 5 year’s employment – 4 weeks’ notice.

An employee is entitled to receive an extra week of notice if they are over 45 years old and have worked for the employer for a minimum of 2 years.

Sometimes an award, registered agreement or employment contract can specify longer minimum notice periods.

If a registered agreement has been put in place, check the terms of the agreement for the correct amount of due notice.

The minimum amount of notice an employer must provide is determined by the length of the employees continued service with them. Continuous service is the length of time an employee is employed by a business. Service does not include unpaid leave, with the exception of unpaid parental leave which does count as service towards notice of termination.

An employer may provide more notice than they are obligated to in the award, registered agreement or contract. The employee is only required to work out the minimum notice period although they are able to work out the extra notice if they choose to do so.

An employee is entitled to take annual leave during a notice period if the employer consents to the leave.

An employee may also take sick leave during a notice period if they provide notice of the leave as soon as possible and evidence (medical certificate ) if required.

If an employee has used up all of their sick leave they may take unpaid sick leave. They will still have to provide notice and evidence if required.

An employee cannot be forced to take leave as part of their notice period.

An employer can also provide payment as a replacement for notice, which can be equal to or exceed the total amount the individual would have been paid for the required amount of notice.

Redundancy Entitlements Exceptions

There are some circumstances where an employee whose job may have been made redundant will not be entitled to redundancy pay.

These circumstances are:

• The employee hands in their resignation without having an agreement in place with the employer to make a redundancy payment on termination.
• An employee is terminated due to misconduct or other reasons associated with the employees own performance or ability to do the job.
• The employer acquires other adequate employment for the employee.
• The employee has been employed for a period less than 12 months.
• The employee works for a small business. A business is considered to be a small business if the employer has less than 15 staff members.
• The employee had a contract or was employed for a fixed period of time that has come to an end.
• The employee was employed for an identified task or project.
• The employee is a trainee engaged only for the length of the training agreement.
• The employee is an apprentice.
• The employee was employed for a particular season.
• An employee was hired as a casual employee whose casual service is no longer needed.
• In a transfer of employment circumstance where it is proposed to transfer the employee to employment with a new employer.
• The employer is unable to pay the employee. This exception can only apply where Fair Work Australia relieves the employer from their redundancy pay obligations.

It is important to state that in a situation where an employee may not be entitled to redundancy pay, the employer will still be obligated to give notice, unless the employee has resigned or has been terminated due to serious misconduct.

Minimum notice periods.
An employer is obligated to give the following minimum notice periods when dismissing an employee:

Period of continuous service	Minimum notice period
Less than 1 year	1 week
1-3 years	2 weeks
3-5 years	3 weeks
over 5 years	4 weeks

An employee is entitled to an extra week of notice if they are over 45 years old and have worked for the employer for at least 2 years.

An award, registered agreement or employment contract can set out longer minimum notice periods, for example, 1 month as opposed to 1 week.

Employers of Choice

In the past, employers looking to hire the best staff would offer higher salaries than their competitors. Now they are thinking out of the box in a bid to lure staff away from the competition with a range of perks. Some of these perks include paid parental leave and a day off for parents on their child’s first day of school.

A high salary is no longer the most important factor for many workers, many are now desiring a better work/life balance.

An employer who can offer an appealing workplace culture is more likely to attract and retain superior employees. The features of the atmosphere available at an employer of choice support the interests of employees and customers.

Here are some tips for becoming an Employer of Choice;

• Employ people with diverse backgrounds including indigenous and people from other cultures, women, gay and youth.
• Include all staff in management and leadership opportunities.
• Encourage high levels of satisfaction among staff.
• Strive to have a good reputation in the business and the wider community.
• Utilise reward and recognition programs.
• Flexible work practices.
• Career development programs.
• Involve employees in decision making.
• Family-friendly policies.
• Job Security. Employees are better able to concentrate on their goals and work if they are not concerned about losing their job.
• Respect: Your employees should always feel they are respected by their bosses and co-workers.
• Access to Information: Share information about the business with your employees, it will help to make them feel more involved and motivated.
• Work-Life Balance: work-life balance initiatives such as flexible scheduling choices, allow employees to work undistracted by family and life events occurring outside of the workplace.
• A recognisable brand – One which is associated with values that are supported by your company and employees. If a potential employee has not heard of you, they are less likely to consider you  their first choice for work. Ideally you want to attract employees with similar values to your business.
• Honesty and integrity - Treat everyone with the appropriate respect and professionalism that you would expect in return. Employers need to fairly develop and apply policies, treat all employees with the same regard and consideration, and make workplace guidelines clear and enforceable across the board.
• Create a community. Establishing a strong community in your workplace, which is positive and supportive, will provide a sense of belonging that will attract and retain the right people long term.

Unique Recruitment Ideas

If you’re trying to attract your ideal candidates, who already have a job elsewhere, you may have to think outside the box when it comes to your recruitment strategies.

That’s why many companies are embracing creative recruiting.

These recruitment methods can help your business stand out from the crowd and put you in touch with your ideal hires;

•    Handout Recruitment cards: Print out business size cards for your employees with the company name, phone number and website on them and the words “now hiring”.  Ask your employees to keep a stash of these cards on them wherever they go. Whenever they come across someone doing an exceptional job, whether it’s at a café or the cashier at the grocery store, they can hand them a “now hiring “card. Once you have found someone with the right personality or mind set you can teach them the other essential skills that may be needed. You will be bowled over at the great employees you will be able to find from very diverse backgrounds using this approach.

•    Employee Referral Rewards Program: It can be very beneficial to hire someone that has been referred by a current employee. A current employee knows the culture of your company and can sense if a person will be a good fit with your organization and team. Offer incentives to employees to refer others.

•    Billboards: Renting a billboard on a busy road near your location is a great way to inform people that you are currently hiring. Make the imagery fun and memorable to catch people’s attention. Keep the wording to a minimum and make the web address easy to remember so that once people are back at their computer they are able to look up the website.

•    Look for talent in an unlikely places: The Director of Talent Acquisition at Quicken Loans (which is regularly listed in Fortune’s 100 best places to work) believes that the secret to their recruiting success is by looking for great people in unexpected places. For example , the company once organised a ‘blitz’ on local businesses , retail stores and restaurants , asking employees to go out and interact with workers and offer interviews to any that were exceptional or stood out from the crowd. Quicken believes that 'Too many companies focus on industry experience when they recruit... We can teach people about finance. We can't teach passion, urgency and a willingness to go the extra mile.’

Hiring the Best Candidates

Hiring the right candidate is vital for any organisation if they are to thrive. Here are some important tips to help you attract and select the best candidates.

•    Select an appropriate interviewing team.

Senior managers and experienced employers should be involved in the interviewing and hiring process, however it is also good practice to involve the people who will be working alongside the selected candidate .Present employees who are engaged in similar roles within the company will be able to relate to the candidate and encourage them to feel more compatible and involved with the organisation.

•    Prepare fully for the interview.

Relevant questions and criteria should be prepared ahead of time. It is also helpful to determine the interview structure and style before you begin interviewing candidates. You should try to ensure that the candidate talks 70% of the interview and the interviewer only talks for 30% of the time. The interview questions should be based on the job requirements and should not discriminate on grounds of sex or race.

•     Develop an accurate job description.

It is easy to overlook the job description, however in many cases, an applicant can be attracted to a job exclusively because of how the position is communicated. If the job description is not clear enough, it can fail to attract candidates with the right qualifications and abilities.

•    Fully explain the job.

It is important to fully explain the job to the candidate and make sure that they understand what is expected of them. If a candidate is hired into a position they don’t fully understand and their expectations do not match the job, it is likely they will leave soon after being hired. This will mean that you will have to begin the whole recruitment process again.

•     Communicate often.

Make sure to communicate with all applicants frequently throughout the recruitment process. Inform the candidates who are selected, as well as the ones who aren’t, as soon as possible.
When someone applies for a job within your company they are also forming their first impression of you and your organisation and what it may be like to work there.

•      Select a broad range of candidates.

If you shortlist too severely you can end up with only one or two candidates left to interview. You should always have a minimum of three to four candidates left for the final interview. This will ensure that if you do not get your top candidate you will still be left with a few good choices.

•    Follow up.

Once the successful applicant has accepted the position, follow up straight away with the necessary paperwork. Make sure that the salary, probation periods and benefits have been discussed throughout the recruitment process so there are no unexpected surprises for the candidate.

•    Start with a probation period.

Starting a candidate’s position with a probation period allows the manager a chance to test the employee’s skills and talents and gives both parties a way out if the employee is not performing or the job is not what they had expected. Probation periods vary in length but are commonly around 6 months .You may choose to start the employee on a slightly lower pay rate or withhold giving full employee benefits until they have fulfilled their probation period.

Redundancy and Unfair Dismissal

Employees who have been made redundant may still be able to make an unfair dismissal claim against their former employer if the correct procedure has not been followed during the termination process.

Under the Fair Work Act 2009, an employee is unable to make a claim for unfair dismissal in the case of a ‘genuine redundancy’, however what is the difference between a ‘redundancy’ and a ‘genuine redundancy’?

Redundancy occurs when an employer no longer wants a job being done by a specific employee to be carried out by anyone, meaning that the job would no longer exist, or if the employer becomes bankrupt or insolvent.

In order for it to be considered a ‘genuine redundancy’, the employer must follow any consultation requirements in the award or registered agreement before the redundancy takes place. Failure to perform any of these steps may end up in a terminated employee claiming that the redundancy was not genuine and filing an unfair dismissal claim.

If an employer has decided to implement major changes or restructuring that is going to affect employees significantly, the employer must take these steps

1. Notify the affected employee(s) of the proposed changes
2. Discuss the proposed changes with the affected employee(s), including possible measures to reduce the adverse effect on employee(s)
3. Give proper consideration to matters raised by affected employee(s)
4. Provide the affected employee(s) in writing with relevant information about the proposed changes, including the nature of the changes proposed and the expected effect on employees.

Discussions must be held as soon as possible after a decision has been made by the employer to make the intended changes.  Employees are entitled to have trade union representatives present at all discussions and the employers must also confer with the representative.

One unfair dismissal claim involves three employees of BananaCoast credit union Ltd. Their roles were made redundant, but they learned a few months later that their employers had hired workers in very similar positions.

All though they were out of the fourteen day lodgement period, the Fair Work Commission found the employees entitled to make unfair dismissal claims as they were unaware that at the time that their redundancy wasn’t genuine.

Another case in Victoria, Nitro Gym made an employee redundant without following the correct procedures and the employee filed an unfair dismissal claim. Fair Work Act Australia found that the redundancy was not a ‘genuine redundancy ‘and awarded the employee close to $8000 in compensation.

Redundancy and Small Businesses

Redundancy can occur when an employer either:

•    No longer needs an employee’s job done by anyone
•    Becomes bankrupt or insolvent
•    Introduces new technology and an employee’s job is no longer needed (can be done by a machine)
•    Slows down to lower production or sales
•    Relocates either overseas or interstate
•    Restructures or reorganises due to a takeover or merger

A small business is treated differently to other organizations. Defining whether or not your business is categorized as a ‘small business’ is indispensable when figuring out which options are available to you.

The Small Business Fair Dismissal Code came into operation on 1 July 2009 and is a very useful tool for small businesses dealing with redundancy.

A Small Business is defined as having fewer than 15 employees, including casual employees who are employed on a regular basis. Employees of a small business cannot make a claim for unfair dismissal within the first year of their employment. If an employee is dismissed after this initial period and the employer has followed the Small Business Fair Dismissal Code then the dismissal will be deemed to be fair.

Employees who have been dismissed due to business downturn or their position is no longer required cannot bring a claim for unfair dismissal. The redundancy must be genuine though. Hiring a new employee for the position is not a genuine redundancy.

If an employer believes on reasonable grounds that an employee’s behaviour is severe enough to justify immediate dismissal, they can do so without notice or warning. Serious misconduct includes theft, fraud, violence and serious breaches of occupational health and safety procedures. For a dismissal to be deemed fair an allegation of theft, fraud or violence should be reported to the police. The employer must have reasonable grounds for making the report.

In other instances, the small business employer must give an employee a reason why they are at risk of being dismissed. The explanation must be a valid reason based on the employee’s ability to conduct the job. The employee must be warned verbally or ideally in writing, that they are at risk of being dismissed if there is no improvement.

The small business employer must offer the employee an opportunity to respond to the warning and a reasonable chance to rectify the problem. This may involve the employer providing supplementary training and ensuring the employee knows their job description and what is expected of them.
In consultations with an employee where dismissal is possible, the employee can have another person present to assist, the other person however cannot be acting in a professional capacity.


A small business employer will be obligated to provide evidence of compliance with the Code if the employee makes a claim for unfair dismissal, including evidence that a warning has been given (except in cases where the employee has been dismissed due to serious misconduct).

This may include copies of written warnings, a statement of termination or signed witness statements.

Staff cuts don't have to lower engagement levels‏

Maintaining staff engagement when your business is doing well and expanding is one thing but maintaining it during a significant business slowdown is another. Evidence shows that just the suggestion of workforce reductions and changes to work organisation amongst colleagues can be detrimental to an employee’s experience of work.  When there is the opportunity to grow and succeed, engaged employees are ready to take hold of the opportunity and strive to achieve it. Throughout recovery periods, engagement becomes even more vital, as organizations ask fewer people to do more.

Downsizing your work force, when done right, can have a positive effect on productivity and growth... However, when done inadequately, reducing your staff can result in prolonged and sustained damage to your business Staff reductions is something managers must do right.

Communication is a major key to maintaining staff engagement after downsizing. Managers should talk individually with remaining staff to let them know they are valued.

Employees need reassurance about their security. They need reassurance about why the people who were let go in the downsizing were chosen. They need reassurance about their future.  Provide support and encouragement, and help them see that downsizing opens new opportunities and channels for promotion.

Take time to listen to your employees, give them an opportunity to speak up by holding a meeting where they can discuss their anxiety or negative feelings about the restructure. Ask them to suggest ways to improve costs, boost customer service, acquire new customers, or in creating advances to help the company survive the difficult period ahead.

Tell your employees the truth about layoffs. This will give the opportunity to gain some control over their future. Share with them some information that you have not previously shared. This will help to make employees feel like part of the business and help them to understand the big picture.
Cultivate a vision for the future. It is vital that people have a goal in their minds. Build team work and the mentality that everyone is in this together. Encourage group discussions where people can offer suggestions.

The morale and culture of your business will be negatively affected during layoffs. You will need to reinvent the work environment. You can do this by highlighting the vision of your business and talking about the culture and work environment you want to create post layoffs. Outline what needs to be done as a group to move towards this.

Changes to Discrimination Laws

Changes to the Racial Discrimination Act propose to replace multiple sections of the act with a single section that makes it unlawful to do an act “otherwise than in private “ that is reasonably likely to “vilify” or “intimidate” another person’s race or colour.


Whether an act is reasonably likely to vilify or intimidate someone is to be determined “by the standards of a reasonable member of the Australian community”, for example, whether Aboriginal people had been vilified or intimidated would be determined not by whether members of that community believed they had been, but whether the overall Australian community judged that they had been.


Currently it is unlawful to “offend, insult, humiliate or intimidate” another person or group of people. So “offend”, “insult” and “humiliate” will be replaced by “vilify”.



It seems that someone will be able to insult or offend someone else based on the other person’s ethnicity, but if a “reasonable member of the Australian community” would not regard that conduct as severe enough to be considered vilification, the provisions in the Exposure Draft will not be breached.



Despite of the outcome of the Exposure Draft, all workplaces and employers will be covered by other conditions of the Racial Discrimination Act and other anti-discrimination laws.



Exploitation of an employee for a reason that included their race would be unlawful discrimination in employment on the ground of race, but would be dealt with under other sections of the Racial Discrimination Act.
 


The Proposed changes to the Racial Discrimination Act may lead to workers to seeking out more complicated and expensive legal routes to address prejudice in the workplace the Diversity Council of Australia believes.


The proposal to weaken sections of The Racial Discrimination act regarding “hurt feelings” could lead to more complaints under defamation laws.


 Research indicates that non – Australian born residents are far more likely to experience racial discrimination in the workplace. Indigenous Australians are also more at risk to experience improper behaviour.


The current Racial Discrimination Act Framework relies on conciliation to resolve problems. The current proposals may encourage complaints under defamation laws instead which is far more costly and time consuming as well as being bad for business and staff morale.


To save your business any possible litigation you should make sure that your policies on racial discrimination are clear and your employees are well trained in them.


3 Common Employment Law Questions Answered

Sometimes employment law can be difficult to comprehend. Here are three common work place situations and their legal ramifications.
 
1: DISMISSAL DUE TO ILLNESS

There are three potential areas of legal exposure:

•    unfair dismissal;
•    unlawful termination; and
•    discrimination

From time to time an employee will have to leave your employment due to long term health issues. They may decide to resign or you may have to eventually consider dismissing them. It is beneficial to consider as many ways possible to help them back to work – dismissal should be a last resort and could be deemed unfair if not managed properly.

If continued employment is no longer achievable because there are no reasonable adjustments that can be made, it may be fair for you to dismiss them.

The Fair Work Act 2009 states that an employer must not dismiss an employee because the employee is temporarily absent from work due to illness or injury.

The Fair Work Regulation 2009 provides that it is not a “temporary absence” if the employees absence from work extends for more than 3 months , or the total absences of the employee , within a 12 month period , have been more than 3 months. The employer still requires a valid reason to dismiss the employee, even if the employee has been absent on unpaid leave for three months or over.

We suggest you ask the employee to provide medical information on his capacity for work and what support he might need to return to work.

2: EVIDENCE OF ILLNESS

You can insist on employees providing evidence that would satisfy a reasonable person that they are entitled to sick leave, for example, a medical certificate or statutory declaration. That being said there is no specific timeframe as the timeframe required is “as soon as practicable”.

For this reason you should devise a written policy that stipulates that your employees provide such information within a specific timeframe. Your policy should also specify that your employees inform their manager directly of their absence (when possible), or phone their manager within a certain timeframe to explain why they cannot make it to work and when they expect to return.

3: NOTICE OF REDUNDANCY

When dismissing an employee it is necessary to give them notice. The notice commences when the employer tells the employee that they want to end the employment. If you notify them of their redundancy just before leave, the time spent on annual leave will count towards their notice period.

Engagement the key to improving business results

An employee who is engaged works with their colleagues to improve performance within their job for the benefit of the organisation. An organisation should work to develop engagement to achieve a symbiotic relationship between employee and employer.

By nurturing an engaged workforce your company can receive many benefits, including:

•    60% reduction in quality defects
•    16% increased profits
•    37% less absenteeism
•    18% productivity increase
•    12% customer satisfaction improvement
•    25% reduction in staff turnover

Research confirms that engagement leads to higher financial performance, higher customer satisfaction and higher employee retention.

Senior leader participation is a critical factor for employee engagement. Good leaders create an environment of engagement .If senior leaders do not understand the importance of an engaged workforce your business can suffer because of it.

Higher levels of employee engagement in an organisation can unmistakably help improve business performance. To encourage a sense of engagement in a workforce it’s vital to have leaders that motivate employees and win their respect.

Leaders should act as role models and inspire employees.

There is a powerful connection between the level of employee engagement and organisational performance.

Consider using customer satisfaction surveys to assess the levels of staff engagement in your organisation. If customer satisfaction is high, it is likely that employee engagement is too. If customer satisfaction is poor, so is employee engagement. The results can help to prove to your management team the effects of employee engagement and encourage them to foster it in the workplace.

Disengaged workers can be the most harmful employees in the workplace. They are discontented and let that unhappiness show in words, attitudes and actions. They can undermine the performance of others by dragging down the morale and drive of the team. Improving employee engagement does not necessarily need to be expensive or time consuming.

Here are 3 effective ways of boosting staff engagement in your workplace:

•    Praise from supervisors
•    Attention from leaders
•    Opportunity to lead projects

Many companies are beginning to understand that engaged employees are a formidable source of competitive advantage.

An engaged employee is more enthusiastic to expend more effort into their work, put in more hours, brainpower and energy. They have more commitment to do the best job they can and take on roles with more enthusiasm and energy.

They bring original concepts and ideas and infuse their team with enthusiasm and are less likely to seek employment elsewhere.

2014 WAGE DECISION: FWC orders 3% increase in minimum wages

1.5 Million Of Australia’s lowest paid workers will have a pay increase of 3% by July of this year. For a full-time employee working a 38-hour week the increase is $18.70 per week (50 cents per hour) to $640.90 per week, or $16.87 per hour.
 FWC President Justice Iain Ross announced the decision, noting that the increase in super guarantee from 1 July had a moderating impact.

The ACTU had originally asked for a $27 per week, or 4.3% increase but the Federal Government warned that increases that high would lead to a loss of jobs as some businesses would not find this affordable.

Ai Group had proposed a 1.6% or $10 per week increase, with ACCI's proposal even more conservative at 1.3%.
The panel suggested that it would not be as low if the superannuation guarantee rate was not also due to rise in July.

The Fair Work Commission last month ruled to limit Sunday penalty rates for some restaurant and cafe staff from July, expected to save businesses up to $112 million a year.

What this means for you

Modern Awards
Businesses that apply Modern Award rates will have to increase them to comply with the FWC decision. From 1 July 2014 all wage rates and penalties will need to match the applicable Modern Award.

Annualised Salaries and Individual Flexibility Agreements
if your business has utilised Individual Flexibility Agreements, you will have to review those agreements to guarantee employees are still “better off overall” when compared to the increased modern Awards rates.
 Employers who use annualised salary arrangements under Modern Awards should also check the Award requirements.

Enterprise Agreements
if you are currently negotiating an Enterprise Agreement or if you already have one, you should consider the increase to ensure that the rates that are negotiated are enough to pass the Better off Overall Test.
If you have an Enterprise Agreement, you will need to ensure the minimum base rates in the EA remain at least equal to the new Modern Award rates.

Allowances

The Fair Work Commission’s decision will impact allowances as well as base rates. A number of Modern Award allowances are expressed as a percentage of the "standard rate", which is the rate applicable to the trade’s equivalent classification in the award. These allowances will therefore increase in line with the increase in the standard rate. Expense related allowances will increase in line with the relevant CPI index.

High Income Guarantee
the High Income Threshold will also increase from 1 July.  Any employers who avoid Award conditions by using High Income Guarantees to will need to examine their agreed terms to remain compliant and above the new threshold. If guarantee levels fall below the threshold minimum entitlements will revert to those in the Award (including, for example, overtime and penalty rates).

Employers will have to identify and implement any changes promptly to ensure compliance to the Fair Work Commission’s decision.

2 Ways the Budget Affects You

The 2014 budget may affect many different aspects of your business. Here are 2 changes that may affect both staff and employers.

1. Superannuation Guarantee increase delayed

Effective from 1 July 2014, the Superannuation Guarantee percentage has increased to 9.5% from the current 9.25%.

The Superannuation Guarantee percentage will gradually rise to 12 % by July 2022,

Superannuation Guarantee is the official term for compulsory superannuation contributions made by employers on behalf of their employees. An employer, whether they are a small or large business, must at this time, contribute the equivalent of 9% of an employee’s salary.

The new increases are laid out in the table below:

Financial year	Superannuation guarantee
July 2014-June 2015	9.5%
July 2015-June 2016	9.5%
July 2016-June 2017	9.5%
July 2017-June 2018	9.5%
July 2018-June 2019	10.0%
July 2019-June 2020	10.5%
July 2020-June 2021	11.0%
July 2021-June 2022	11.5%
July 2022-June 2023	12.0%

The Superannuation Guarantee has financial implications for anyone planning to remain in the workforce for more than 7 years as the increase of 3% will take full effect in just over 6 years’ time. According to the Federal Government, the 33% increase will give a 30 year old on average full time wages an extra 108, 000 in retirement savings.

2. Changes to the Fair Entitlement Guarantee

One of the other important changes the 2014 federal budget delivered was alterations to the fair Entitlements Guarantee, which guarantees several unpaid employee entitlements in the event of insolvency or bankruptcy.

From January 1 2015 the maximum payment for redundancy pay will be 16 weeks. Previously redundancy pay was capped at 4 weeks’ pay per full year of service. From 1 July 2014, indexation of the maximum weekly wage used in calculating entitlements for claimants earning above the maximum weekly wage of $2,451 will be paused until 30 June 2018.

The changes will apply only to liquidations and bankruptcies that occur on or after the commencement date of 1 January 2015.

Employees seeking to claim an entitlement above the maximum will maintain rights as unsecured creditors to recover any outstanding entitlements through the winding up of their employer’s business.

The Government will achieve savings of $87.7 million over four years by aligning redundancy payments under the Fair Entitlements Guarantee scheme to the National Employment Standards contained in the Fair Work Act 2009.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Superannuation Guarantee

From July 1 2014, the Superannuation Guarantee percentage will increase from 9.25 to 9.5 and will eventually rise to 12% by July 2022.

Superannuation Guarantee is the official term for compulsory superannuation contributions made by employers on behalf of their employees. An employer, whether they are a small or large business, must at this time, contribute the equivalent of 9.25% of an employee’s salary.

The new increases are laid out in the table below:


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Financial year	Current rate increase	Proposed rate increase
2013/14	9.25%	9.25%
2014/15	9.50%	9.25%
2015/16	10.0%	9.25%
2016/17	10.5%	9.5%
2017/18	11.0%	10.0%
2018/19	11.5%	10.5%
2019/20	12.0%	11.0%
2020/21	12.0%	11.5%
2021/22	12.0%	12.0%

Save Costs by Perfecting your Recruiting Processes

Perfecting your recruiting process can save you money in many different ways. As the adage goes, time equals money, by streamlining your recruitment process you can save yourself a lot of wasted time and therefore money. Getting your hiring right will save money on training staff that are not going to work out in the long run.

By perfecting your recruitment process, you will get the right person for the job in a shorter amount of time so you’ll stop losing money as a result of having an unfilled position.
Here are some tips for perfecting the recruitment process;

• Develop and prioritize the main requirements needed from the position and the special qualifications and experience you seek in a candidate.
• Develop the job description for the position you are seeking and determine job interview questions in advance.
• Spread word of mouth information within your industry about the position you are looking to fill.
• Screen resumes and applications against the established criteria and qualifications.
• Give candidates a copy of the job requirements to review
• Plan a meeting with the individuals involved in the recruitment process .Have everyone agree on the qualities you are looking for in a candidate.
• Check references. Perform appropriate background checks that include employment references, employment history, education, criminal records, credit history and drug testing.
• Create a documented, systematic hiring process.
• Develop the largest pool of qualified candidates possible. Do this by utilising every tool available to you, Facebook, Twitter etc.
• Train supervisors to give clear direction and expectations, provide feedback and show commitment to staff success.
• Once you have defined the qualities and skills you would most like in a candidate, devise interview questions that allow your applicant to demonstrate that they have the desired skills.
• The use of behaviourally based interview questions can be useful to pinpoint the people you want in your organisation.
• Identify characteristics of your best employees and then develop interview questions to identify these qualities.
• When replacing an position it can be useful to review the role and decide if there are any changes required or certain tasks or roles that were performed by the previous employee that do not need to be performed by the new one.

The people who work in your organisation are, after all, key to its success - so investing in the process is also an investment in the business

How to help those who keep their jobs following redundancies

Often those who remain in an organisation after their colleagues have been laid off experience feelings that can be compared to bereavement. This can have a huge impact on motivation, staff morale and stress levels, which in turn affects productivity and customer service.

Unless the change process is handled appropriately, reduced organisational effectiveness may result. Well planned and supported change processes will counter these consequences.

Staff that have kept their jobs often have feelings of resentment that they have to take on the workload of those who left. This can lead to an increase in stress levels. They also fear that if they fail to keep up with their increased workloads that they may be made redundant also.

Redundancies can lead to a loss of loyalty and trust in an organisation from remaining staff and leave them seeking the first opportunity to leave as they have lost faith in their bosses.

It is important for managers to ensure that staff who survive keep motivated as the company tries to move forward.

Some tips for doing this include –

• Give staff an opportunity to vent, this includes getting them to voice their hopes and fears for the future and acknowledge their worries. It helps to identify practical steps to help them achieve their goals. One of the most common complaints from staff in this situation is that they don’t feel they have been listened to
  
• Keep the lines of communication open throughout the redundancy process. This should help to alleviate some of their fears and reduce workplace gossip
  
• Train managers to look for signs of stress within their staff
  
• Monitor absenteeism and take action promptly if needed
  
• Retrain employees who will be taking on new roles
  
• It is helpful if those who remain in their jobs see that the staff who were made redundant are looked after. Give staff an opportunity to say goodbye, let them know that you appreciate the people leaving and recognise their achievements
  
• Identify one person to act as a change agent to work with staff and other supervisors during the implementation period. Throughout the process it is important that senior management in the organisation are available and present to talk to staff
  
• Staff reductions and restructure present a difficult task for all involved. It can be helpful to use symbols to mark key dates and successful transitions. For example, the creation of a change agent role mark the commencement of the process and the elimination of the same role would mark completion

Tips for boosting staff engagement/happiness

A good way to boost your staff’s engagement or happiness at work is to get an understanding of how your staff feel about their jobs by asking some simple questions, for example, “would you recommend working here to your friends and family? Why or why not? Do you feel valued as an employee?” The responses will give you an indication of the area’s that may need improvement.

Listen to your employees, talk about their issues and make adjustments to address them. Ask them about ideas and suggestions to improve the company.

Be creative when trying to engage your staff. Team building activities promote closeness with employees and can be fun and drive results at the same time. By encouraging employees to work together and help each other you get a closer, more cohesive team.

Recognize the signs of low morale, these include:

• A rise in absenteeism
• Customer service complaints
• Increased conflict between staff members

It can be beneficial to do an exit interview with people leaving the company, they tend to be more honest than those who are still on the job.

To be happy at work most employees benefit from feeling as if they have a meaningful role within the company.

Give staff a clear explanation as to why their job responsibilities are important to the team.
It is also not productive to have your employees stressed from having to large a workload.

Reward staff who work hard and behave ethically at work. These do not need to be financial or material rewards, simple acknowledgement of a job well done can go a long way towards job satisfaction. One of the most neglected acts done by bosses or business owners is the failure to acknowledge the job well done by employees. Positive feedback can motivate staff and make them feel like a valuable member of the company.

Do not tolerate any gossiping, bullying or politics within the workplace .Encourage everyone to support each other and by doing that support the team.

Provide a space where people want to work. Staff will feel more eager to come to work if their work environment is clean and comfortable and provides all the tools they need to do their job efficiently.

Happy workers make a happy workplace. By boosting your workers morale and keeping them loyal to the company you will enjoy increased productivity and profits for years to come.

Proposed changes to the Fair Work Act

The proposed changes to the fair work act the federal government has introduced to parliament could have a significant impact on the existing fair work act if implemented.

To outline how these changes could affect your business, here are some of the main points within the bill and how they could affect your business.

• Extending a period of unpaid parental leave – An employee taking unpaid parental leave under the fair work act, may request to increase their leave for a period up until 12 months. The amendment would require the employer to give the employee the opportunity to discuss the request in person or over the phone before refusing it. The discussion cannot be had by email or sms.

• Payment for unused annual leave – under the Government’s proposed amendment, payment for unused annual leave is to be made at the employee‘s base rate of pay for ordinary hours as applicable immediately before dismissal (unless an applicable modern award, enterprise agreement or employment contract expressly provides for a more beneficial entitlement).  Base rate of pay does not include penalties, loadings, allowances or any other separately identifiable amounts.

• Taking or accruing leave while receiving workers’ compensation - An employee who is absent from work due to workers compensation is unable to take or accrue leave under FW act during the compensation period.

• Transfer of Business -The transfer of business provisions will not apply to the transfer of an employee between associated entities where the employee sought the transfer at their own initiative. The proposed amendments would “switch off” the FW act transfer of business rules when an employee becomes employed by an associated entity of his or her former employer if the employment was sought on the workers own initiative before termination of employment with the old employer.
  
  For example if an employee is looking to progress their career or change their lifestyle and pursues a career opportunity within their own company or affiliated company this would be considered seeking his or her own initiative. If an employee who was made redundant accepted alternative employment this would not be considered his or her own initiative.
  
  Note that this change would only apply to transfer of enterprise agreements and not to continuity of service-based entitlements. The automatic continuity (subject to exceptions) provided in the FW Act when employees transfer between associated entities would continue to apply.

• Fair Work Commission (FWC) hearings and conferences - The proposed amendment would allow the FWD to dismiss an unfair dismissal claim on certain grounds without a hearing. The FWC will be able to do this if the applicant has failed to attend a conference or hearing, comply with a FWC order or discontinue an application after a settlement agreement.
  
  This would also apply where the FWC found the application to be frivolous or had no reasonable chance of being successful. The FWC must invite all parties to provide further information to the FWC to show its use is warranted before exercising this power.

• Individual Flexibility Arrangements - All employees party to an IFA made under a modern award flexibility term would need to sign a 'genuine needs' statement.
  
  Employees entering an independent flexibility arrangement are required to give a written statement indicating why they believe an independent flexibility agreement under a modern award or enterprise agreement meets their needs and leaves them better off.
  
  Individual flexibility arrangements allow for unilateral termination only upon 13 weeks of notice, as opposed to the current 28 days of notice.
  
  The proposed amendments improve the utility of individual flexibility arrangements by requiring enterprise flexibility terms to permit individual flexibility about all five minimum matters listed in the model flexibility term; namely arrangements about when work is performed, overtime rates, penalty rates, allowances and leave loading.

• Greenfields Agreements –The FWA amendment proposes many changes to the Greenfields agreement process intended to avoid employers being convinced to agree to inflated wages and conditions and employment preference to avoid delays in a project. Under the proposed changes, an agreement would provide for pay and conditions consistent with the prevailing standards and conditions within the relevant industry for equivalent work. The FWC may take into account the prevailing pay and conditions in the relevant geographical area.  These changes include the extension of good faith bargaining requirements to single enterprise Greenfields agreements. They also include provisions for an employer to apply to the FWC for an agreement to be approved where the parties are unable to reach agreement in a reasonable period following a three month negotiation period notified by the employer.

• Protected action ballot orders - The Amendment Bill proposes that an application for a protected action ballot order will not be able to made until the employer is obliged to give employees notice of representational rights in bargaining.

• Right of Entry - The amendment bill introduced changes to the right of entry rules regarding the rights of union officials who hold entry permits. The employer will no longer be required to organise transport and accommodation arrangements for permit holders in remote areas.
  
  Interviews with employees by union officials or permit holders must be held in an area agreed between the business and the permit holder or in the place the business employees take lunch breaks. The FWC will also be able to deal with disputes regarding the frequency of visits by permit holders.