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.