Real Life Case Study - End2end Health Check

In this month’s real life case study, we are talking about how the End2end Health Check can have measurable benefits to your business. I have recently been working with an event company who wanted to ensure that its’ staff are motivated to go above and beyond to deliver large event jobs.    

The first step in the process was to complete an ‘End2end Health Check’ to identify what was currently in place, what was missing and what needed to be done.  

The business has cycles where it is quiet early in the year, with its busy period covering July to December, and has recently had a number of key staff poached by a larger event company at a critical time.   Additionally, through our Health Check, we have discovered that there is a perception within the business that one employee is viewed as a ‘superstar’, however , with closer assessment of this employee’s bottom line, it became evident that the net profit this employee was bringing in to the business certainly did not warrant this status.    

After analysis of the Health Check results, it was evident that the business wasn’t properly calculating and charging for all areas of labour required in planning and delivering an event. So, we began by working with the employer to identify a complete labour cost rate incorporating all facets of planning an event.  Then we consulted each team member, and gathered feedback to accurately determine how they spent their time, and identify any previously unaccounted or incidental expenses that should in future be included in the total event cost.   

Next, we met with each event manager to review their past performance and achievements, and discuss and agree on KPI’s  for the year ahead.   Additionally, incentives were reviewed and slightly modified to reflect the new format.   

In the course of this process, the employer raised the suggestion of creating a team manager position to oversee and run the team, however, our analysis reflected that the cost wouldn’t justify the increased savings and sales.  We then considered if the use of interns could be a cost effective tool to allow the event managers time to not only deliver on their jobs, but also to gain new business. This will be further investigated and trialled, in the coming months.

We have instigated a quarterly review meeting where each event manager meets with the employer to track their performance against budgets and KPI’s,  and to discuss and identify how they can gain more time to do their roles.  Each team member brings to the meeting details of their workflows for the past quarter and in their upcoming pipeline, and additionally is asked to compile a list of the top 5 things they wish to discuss with the management, so that the conversations are two way rather than just one way.  

As a result of our process, the event managers are now able to identify where they need to spend more time and how to use their time, and the new interns, effectively.     The net profit margins are starting to improve, as the staff are more cost conscious of exactly what is involved in delivering an event, and are ensuring that this is appropriately passed on to the clients.     

All of the above has helped the employer gain a great measure of clarity and take back control of the business and staff, rather than the business controlling the employer.   The clearer you are about what is expected from your staff, the better they will understand ‘the big picture’ which will flow on to create an engaged work force who will deliver the profit expectations.

If you would like to find out more about our End2end Health Checks for your business, please contact Annette today on 02 8977 4002

Employee handbooks: what are they and does my business need one?

Employee handbooks: what are they and does my business need one? - See more at: http://www.dynamicbusiness.com.au/small-business-resources/managing/employee-handbooks-what-are-they-and-does-my-business-need-one-18092013.html?utm_source=streamsend&utm_medium=email&utm_content=19466889&utm_campaign=Revolutionary%2520plan%2520to%2520rid%2520Oz%2520of%2520asbestos%2520%257C%2520Fierce%2520competition%2520in%2520taxi%2520apps#sthash.rDAvQS3E.dpuf

Employee handbooks: what are they and does my business need one? - See more at: http://www.dynamicbusiness.com.au/small-business-resources/managing/employee-handbooks-what-are-they-and-does-my-business-need-one-18092013.html?utm_source=streamsend&utm_medium=email&utm_content=19466889&utm_campaign=Revolutionary%2520plan%2520to%2520rid%2520Oz%2520of%2520asbestos%2520%257C%2520Fierce%2520competition%2520in%2520taxi%2520apps#sthash.rDAvQS3E.dpuf

A recent article by Lachlan McKnight at Dynamic Business discusses Employment Handbooks and explains why you should have them!

Every business owner with employees knows they need an employment contract for each employee. Many of the same business owners don’t, however, realise that they also need an employee handbook.

An employee handbook sets out all the standards of behaviour expected of a company’s employees and the policies that apply to the company’s employees. An employer should provide a prospective employee with the employee handbook as part of their induction pack upon commencement of employment.

This article sets out some of the important issues an employee handbook should cover, explain why every business needs one and discusses how an employee handbook interacts with an employment contract.

Why do I need an employee handbook?

An employment contract sets out the most important terms under which an employee is employed, including pay conditions, leave conditions, non-compete issues and the like. It is, however, impossible to cover absolutely all the policies, rules, regulations, procedures and practices of a company in an employment contract.

You would be using an overly cumbersome contract, and every time you wanted to change your company’s internal policies as they related to employment you’d have to change every employment contract in the company. This would obviously waste a lot of time.

A cost effective solution is to provide your employees with an employee handbook, which sets out all of the above mentioned polices, rules, regulations, procedures and practice of the company.

What should be included in an employee handbook?

There’s a wide range of policies and procedures that should be included in your employee handbook. The most important of these are set out below:

    Dress Code and Personal Appearance Policy
    Attendance and Punctuality Policy
    Annual, Personal/Carer, Parental, Jury (or Community Service) and Long Service Leave Policies
    Email and Internet Use Policies
    Equal Opportunity Policy
    Bullying, Discrimination and Harassment Policy
    Complaint Procedures
    Disputes, Complaints and Grievances Policy
    Workplace Health and Safety Policy
    Alcohol, Drugs and Smoking Policies
    Disciplinary Policy

Each individual business should also include further company or industry specific policies in its employee handbook. A good contract or employment lawyer will be able to advise on the insertion of additional clauses.

How should an employment contract and employee handbook work together?

It’s a relatively simple job to make sure your employee handbook works in conjunction with your employment contracts. Simply ensure that each employment contract contains a clause which requires the employee to agree to obey and comply with all the company’s policies, rules, regulations, procedures and practices as set out in the employee handbook.

Obeying those policies therefore becomes one of the employee’s employment obligations. This obviously works both ways; as an employer it’s also your responsibility to comply with the policies set out in the employee handbook.

- See more at: the Dynamic Business website

Every business owner with employees knows they need an employment contract for each employee. Many of the same business owners don’t, however, realise that they also need an employee handbook.

An employee handbook sets out all the standards of behaviour expected of a company’s employees and the policies that apply to the company’s employees. An employer should provide a prospective employee with the employee handbook as part of their induction pack upon commencement of employment.

This article sets out some of the important issues an employee handbook should cover, explain why every business needs one and discusses how an employee handbook interacts with an employment contract.

Why do I need an employee handbook?

An employment contract sets out the most important terms under which an employee is employed, including pay conditions, leave conditions, non-compete issues and the like. It is, however, impossible to cover absolutely all the policies, rules, regulations, procedures and practices of a company in an employment contract.

You would be using an overly cumbersome contract, and every time you wanted to change your company’s internal policies as they related to employment you’d have to change every employment contract in the company. This would obviously waste a lot of time.

A cost effective solution is to provide your employees with an employee handbook, which sets out all of the above mentioned polices, rules, regulations, procedures and practice of the company.

What should be included in an employee handbook?

There’s a wide range of policies and procedures that should be included in your employee handbook. The most important of these are set out below:

• Dress Code and Personal Appearance Policy
• Attendance and Punctuality Policy
• Annual, Personal/Carer, Parental, Jury (or Community Service) and Long Service Leave Policies
• Email and Internet Use Policies
• Equal Opportunity Policy
• Bullying, Discrimination and Harassment Policy
• Complaint Procedures
• Disputes, Complaints and Grievances Policy
• Workplace Health and Safety Policy
• Alcohol, Drugs and Smoking Policies
• Disciplinary Policy

Each individual business should also include further company or industry specific policies in its employee handbook. A good contract or employment lawyer will be able to advise on the insertion of additional clauses.

How should an employment contract and employee handbook work together?

It’s a relatively simple job to make sure your employee handbook works in conjunction with your employment contracts. Simply ensure that each employment contract contains a clause which requires the employee to agree to obey and comply with all the company’s policies, rules, regulations, procedures and practices as set out in the employee handbook.

Obeying those policies therefore becomes one of the employee’s employment obligations. This obviously works both ways; as an employer it’s also your responsibility to comply with the policies set out in the employee handbook.

- See more at: http://www.dynamicbusiness.com.au/small-business-resources/managing/employee-handbooks-what-are-they-and-does-my-business-need-one-18092013.html?utm_source=streamsend&utm_medium=email&utm_content=19466889&utm_campaign=Revolutionary%2520plan%2520to%2520rid%2520Oz%2520of%2520asbestos%2520%257C%2520Fierce%2520competition%2520in%2520taxi%2520apps#sthash.rDAvQS3E.dpuf

Every business owner with employees knows they need an employment contract for each employee. Many of the same business owners don’t, however, realise that they also need an employee handbook.

An employee handbook sets out all the standards of behaviour expected of a company’s employees and the policies that apply to the company’s employees. An employer should provide a prospective employee with the employee handbook as part of their induction pack upon commencement of employment.

This article sets out some of the important issues an employee handbook should cover, explain why every business needs one and discusses how an employee handbook interacts with an employment contract.

Why do I need an employee handbook?

An employment contract sets out the most important terms under which an employee is employed, including pay conditions, leave conditions, non-compete issues and the like. It is, however, impossible to cover absolutely all the policies, rules, regulations, procedures and practices of a company in an employment contract.

You would be using an overly cumbersome contract, and every time you wanted to change your company’s internal policies as they related to employment you’d have to change every employment contract in the company. This would obviously waste a lot of time.

A cost effective solution is to provide your employees with an employee handbook, which sets out all of the above mentioned polices, rules, regulations, procedures and practice of the company.

What should be included in an employee handbook?

There’s a wide range of policies and procedures that should be included in your employee handbook. The most important of these are set out below:

• Dress Code and Personal Appearance Policy
• Attendance and Punctuality Policy
• Annual, Personal/Carer, Parental, Jury (or Community Service) and Long Service Leave Policies
• Email and Internet Use Policies
• Equal Opportunity Policy
• Bullying, Discrimination and Harassment Policy
• Complaint Procedures
• Disputes, Complaints and Grievances Policy
• Workplace Health and Safety Policy
• Alcohol, Drugs and Smoking Policies
• Disciplinary Policy

Each individual business should also include further company or industry specific policies in its employee handbook. A good contract or employment lawyer will be able to advise on the insertion of additional clauses.

How should an employment contract and employee handbook work together?

It’s a relatively simple job to make sure your employee handbook works in conjunction with your employment contracts. Simply ensure that each employment contract contains a clause which requires the employee to agree to obey and comply with all the company’s policies, rules, regulations, procedures and practices as set out in the employee handbook.

Obeying those policies therefore becomes one of the employee’s employment obligations. This obviously works both ways; as an employer it’s also your responsibility to comply with the policies set out in the employee handbook.

- See more at: http://www.dynamicbusiness.com.au/small-business-resources/managing/employee-handbooks-what-are-they-and-does-my-business-need-one-18092013.html?utm_source=streamsend&utm_medium=email&utm_content=19466889&utm_campaign=Revolutionary%2520plan%2520to%2520rid%2520Oz%2520of%2520asbestos%2520%257C%2520Fierce%2520competition%2520in%2520taxi%2520apps#sthash.rDAvQS3E.dpuf

Every business owner with employees knows they need an employment contract for each employee. Many of the same business owners don’t, however, realise that they also need an employee handbook.

An employee handbook sets out all the standards of behaviour expected of a company’s employees and the policies that apply to the company’s employees. An employer should provide a prospective employee with the employee handbook as part of their induction pack upon commencement of employment.

This article sets out some of the important issues an employee handbook should cover, explain why every business needs one and discusses how an employee handbook interacts with an employment contract.

Why do I need an employee handbook?

An employment contract sets out the most important terms under which an employee is employed, including pay conditions, leave conditions, non-compete issues and the like. It is, however, impossible to cover absolutely all the policies, rules, regulations, procedures and practices of a company in an employment contract.

You would be using an overly cumbersome contract, and every time you wanted to change your company’s internal policies as they related to employment you’d have to change every employment contract in the company. This would obviously waste a lot of time.

A cost effective solution is to provide your employees with an employee handbook, which sets out all of the above mentioned polices, rules, regulations, procedures and practice of the company.

What should be included in an employee handbook?

There’s a wide range of policies and procedures that should be included in your employee handbook. The most important of these are set out below:

• Dress Code and Personal Appearance Policy
• Attendance and Punctuality Policy
• Annual, Personal/Carer, Parental, Jury (or Community Service) and Long Service Leave Policies
• Email and Internet Use Policies
• Equal Opportunity Policy
• Bullying, Discrimination and Harassment Policy
• Complaint Procedures
• Disputes, Complaints and Grievances Policy
• Workplace Health and Safety Policy
• Alcohol, Drugs and Smoking Policies
• Disciplinary Policy

Each individual business should also include further company or industry specific policies in its employee handbook. A good contract or employment lawyer will be able to advise on the insertion of additional clauses.

How should an employment contract and employee handbook work together?

It’s a relatively simple job to make sure your employee handbook works in conjunction with your employment contracts. Simply ensure that each employment contract contains a clause which requires the employee to agree to obey and comply with all the company’s policies, rules, regulations, procedures and practices as set out in the employee handbook.

Obeying those policies therefore becomes one of the employee’s employment obligations. This obviously works both ways; as an employer it’s also your responsibility to comply with the policies set out in the employee handbook.

- See more at: http://www.dynamicbusiness.com.au/small-business-resources/managing/employee-handbooks-what-are-they-and-does-my-business-need-one-18092013.html?utm_source=streamsend&utm_medium=email&utm_content=19466889&utm_campaign=Revolutionary%2520plan%2520to%2520rid%2520Oz%2520of%2520asbestos%2520%257C%2520Fierce%2520competition%2520in%2520taxi%2520apps#sthash.rDAvQS3E.dpuf

Difficult conversations in the workplace

Do you need to have a difficult conversation with an employee and aren’t sure how?  As an employer or manager, it is likely that you will need to have a difficult conversation with an employee at some stage. The Fair Work Ombudsman has some excellent tips on how to do this well.

Examples of the types of conversation you may need to have are:
•    communicating tough business decisions, such as denying a leave request or a pay rise to your employees
•    giving bad news, such as ending employment or advising unsuccessful job applicants
•    discussing poor performance or behaviour
•    dealing with complaints and grievances.

In the workplace, the best way to handle an issue is not to ignore it or sweep it under the rug, but to deal with it promptly. If this is handled well, this can have the effect of lifting employee performance and engagement, and improving relationships in your workplace.

Generally, workplace issues will not just disappear. If ignored or avoided, you may find the problem can become worse, can potentially damage the productivity and efficiency of the business, can reduce staff engagement and ultimately lead to higher absenteeism and employee turnover.

Here are a few handy tips if you need to have a difficult conversation in your workplace.

1. Prepare for the conversation.

• Write down the key points you need to cover
• Think about your desired outcome and think about whether it is realistic.
• Check your facts and gather any documents you need, have examples/copies to hand.
• Arrange a time and private place to speak with the employee, and let them know what the conversation will be about so they have time to prepare too.
• Let the employee bring a support person if they want to.

 2. The conversation itself

• Start by explaining the situation clearly, based on the facts. State the problem or issue at the beginning of the conversation.
• Avoid unnecessary small talk.
• Stick to the facts, rather than opinions, and give examples where possible.
• Importantly, ensure you explain the impact that the issue or their behaviour is having on the business or team.
• Focus on the issue, not the person. It helps if you use words like 'the behaviour', 'the situation', rather than 'you'.

 3. Ask the Employee for input

• Invite the employee to share their point of view and listen to what they have to say.
• Even if you're convinced that you're right, try to keep an open mind - there may be other issues or facts you don't know.
• Always acknowledge the employee's feelings and be willing to consider an alternate solution.

4. Manage your emotions and remain calm.

• Be rational and objective. Being angry or defensive won't help to resolve the issue.
• Always ensure that you stay calm, talk slowly, at an even tone and volume, be clear and concise and focus on the issue, not your feelings or the person involved.

 5. Help the employee manage their emotions.

• In these situations, the employee often reacts emotionally. It's important not to make a promise you can't fulfil to diffuse the employee's emotional reaction.
• Listen and show genuine interest in what the employee has to say. This may involve expressing support or reassurance where you can (eg. 'I can see this is hard for you' or 'It's ok to be upset about this'), or apologising if appropriate (eg. 'I'm sorry but I can't grant your request').

 6. Reach an agreement on how to move forward and close the conversation.

• Close the conversation by agreeing on action points and next steps.
• Gain the employee's commitment to the agreed actions. You can do this by asking questions like 'how do you feel about that?' or 'What do you think about this way forward?'
• Set a follow up date. This will allow you to check if the agreed steps have been taken and see whether the employee needs any further support or assistance.
• Thank the employee for listening and openly discussing the issue.

7. Follow up.

• Ensure you fully document the discussion and any agreements you have made.
• Maintain a professional relationship and keep communication lines open with the employee.
• Follow through with the agreed actions and follow up with the employee to make sure the issue has been resolved.

If you or your employees could benefit from coaching on how to successfully hold ‘difficult conversations’ contact Annette at End2End Business Solutions on (02) 8977 4002 or by email. We can structure a program specifically for your workplace to give you and your employees the skills to successfully communicate the difficult conversations.

Exit interviews

Businesses and HR departments typically conduct exit interviews to gather information from departing employees to help the company improve working conditions, retain existing employees and identify problem areas within the business.

One of the most useful aspects of exit interviews is that the departing employee often feels less worried about making a career limiting remark or offending a superior, and therefore is generally willing to provide open and honest feedback about their reasons for leaving and their thoughts about what the company could do to improve. Employers who are able to ascertain why staff leave may be able to retain their best staff in future by making subsequent changes within their business.

Understanding the actual motivations behind resignations and departures from a business is a vital first step in addressing staff turnover issues, yet statistically, figures show the process is regularly overlooked.

So, how should you conduct a face to face exit interview?

• Firstly, make sure that departing staff member understands the purpose of the interview and that you plan to ask questions to ultimately make improvements within your workplace.

• Give the employee advance notice of the meeting so that they have time to prepare, and schedule the meeting well before the employee's last day.

• Ensure the employee is treated with respect and dignity throughout the interview process and reassure them that issues raised will be used effectively for the benefit of the employee's colleagues.

• Provide a setting that will allow the employee to feel relaxed and comfortable, they should feel completely free to express their opinion without any fear of recrimination or bridge burning.

• Reassure the employee of the confidential nature of the exit interview process. Make it clear that their feedback, however positive or negative, is valuable and highly appreciated.

Employers can use the exit interview process to determine:

•The two main reasons why the employee is leaving.
•Steps the organisation could have taken, in hindsight, to keep the employee.
•Their opinion on workplace morale.
•What the employee liked about the company.
•What the employee would change about the company if they could.
•Information on how to maintain a good relationship with a departing employee.

Whilst most businesses and organisations still use the tried and tested approach of a face-to-face meeting between the Manager/HR person and the departing employee, these days there are other options that may better suit your business. Many managers are uncomfortable and untrained in conducting exit interviews, and other methods may provide your business with valuable feedback. You might consider an online survey, phone interview or a paper questionnaire.

For information on how your business can minimize talent drain, and establish an effective employee exit process, contact Annette at End2End Business Solutions on (02) 8977 4002.

1 July 2013 - Legal changes for Small Business

It's the new financial year and there are a raft of legal changes taking effect today for the business community to adhere to.  

In summary:

Minimum wage increase

Effective July 1, Australia's 1.5 million minimum wage workers are set to receive an additional pay raise of $15.80 per week, a 2.6 % increase over their existing wages.

The effect of this increase will see the National Minimum Wage increase from 1 July 2013 to $622.20 per week, or $16.37 per hour. The new rates will need to be paid from the first full pay period on or following July 1, 2013.

Increase in High Income Threshold/Unfair Dismissal

The high income threshold increases from 1 July 2013,

• the high income threshold increases to $129,300
• the compensation limit under unfair dismissal increases to $64,650.

The high income threshold is indexed annually on 1 July.

The high income threshold affects how modern awards apply to employees. It also affects employees’ ability to access unfair dismissal. Higher income employees are generally not allowed to apply for unfair dismissal since the terms of employment can be different above this threshold. As well as affecting unfair dismissal rights, the threshold impacts the maximum amount payable for an unfair dismissal case. This amount is capped at either half of the high income threshold or six months of the dismissed employee's wage.

Superannuation

From July 1, employers will contribute 9.25% to superannuation for each of their eligible employees, an increase of 0.25% from the current rate of 9%.
Also from July 1, businesses will be required to pay elderly people aged 70 and above superannuation entitlements, as the existing upper age limit for employee super guarantee eligibility will be removed.

If you were making super payments at the minimum 9% rate, you need to adjust payments to the new rate from 1 July 2013.

Superannuation is paid on top of the minimum entitlements in the award or agreement that applies.

Loss carry-back measures

Small businesses are now able to carry back their losses to offset past profits and receive a tax refund. Businesses can carry back up to $1 million in deductions against profits made in the previous year to receive a refund of up to $300,000 each year from tax previously paid – representing the company tax rate of 30 cents in the dollar.

Why you should outsource your HR

While most large companies have an in-house HR team, this isn’t always viable for SMBs, so outsourcing your HR might be the ideal solution.

It can free up your time, and help you to protect your business into the future – without breaking the bank.

For more important reasons to consider outsourcing your HR read this interesting article from Lisa Spiden at Dynamic Business:

"As a business owner, dealing with your business’ HR needs can be time consuming, and not having the right knowledge and understanding of HR issues can lead to potential legal problems and penalties for your business.

While most large companies have an in-house HR team, this strategy isn’t always viable for many SMBs, even though they face the same issues when it comes to recruiting employees, dealing with disputes, and developing, recognising and rewarding employees.

If you don’t have the scope to employ a HR person, outsourcing your HR might be the ideal solution. It can free up your time, and help you to protect your business and your employees into the future – without breaking the bank.

HR outsourcing companies can take on a wide range of HR-related tasks for your business, including recruitment, dispute resolution, and compliance.

Here are some of the reasons why you might want to consider outsourcing your HR:

Ensure compliance with employment legislation
The law surrounding employees is complex and often subject to change. It is difficult to keep up with the current legislation, while also focusing on running your business.

Professional consultants at HR outsourcing companies understand best practice, and can help make sure you avoid non-compliance, and the resultant disputes and penalties.

Save time
Recruiting, managing staff issues, ongoing development and rewarding of staff members can be extremely time consuming, and many business owners don’t have the time to devote to these tasks.

If you are better spending your time working on your core business, outsourcing your HR is a sensible decision that can allow you to focus more on the things that you do best.

Save money
By improving the efficiency of your HR practices, you can streamline processes and help reduce your costs. Recruiting new employees can be costly, particularly if the employees you hire aren’t the right fit for your business, or the role.

Using the services of an HR outsourcing company means that you have a better chance of getting the right employee first time.

Build a competitive advantage
Many HR companies are capable of developing training programs for employees, and are available to help with performance management and feedback.

Effectively managing employee performance can build loyalty, and help keep your employees motivated, engaged and working more efficiently. This can in turn help your business build a competitive advantage, and can give your employees access to skills and knowledge that they would not otherwise have.

HR is a complex area, and while you might not need a full team of HR professionals, you can get valuable assistance when you need it by outsourcing."

Link to original article.

1 July 2013 - Changes to superannuation

From 1 July 2013, the super guarantee rate is going up from 9% to 9.25%. This will increase to 9.5% from 1 July 2014 and continue to rise each year gradually over 7 years until it reaches 12% from 1 July 2019.

If you were making super payments at the minimum 9% rate, you need to adjust payments to the new rate from 1 July 2013.

Superannuation is paid on top of the minimum entitlements in the award or agreement that applies.

Can an employee’s pay be reduced to cover the superannuation increase?
Employees can’t be paid less than the minimum wages that apply to them.
If an employee is paid more than their minimum entitlements and if their employer wants to reduce their wages to compensate for the increased super rate or for any other reason, the employer should seek independent advice from a lawyer or their employer association.

Changes to pay slip requirements
There are also changes to the information that needs to be included on pay slips. From 1 July 2013, employers will be required to give additional information about the superannuation contributions they have made or will make for the benefit of their employees.

Start date	Super guarantee rate
1 July 2013	9.25%
1 July 2014	9.50%
1 July 2015	10%
1 July 2016	10.50%
1 July 2017	11%
1 July 2018	11.50%
1 July 2019	12%