Discrepancy between CEO earnings and average salaries sparks protests
If you discovered your company’s top dog was earning 435 times more than you, you’d probably be barking mad. That scenario is real and happening in Australia. Recent figures from the Australian Bureau of Statistics shows the salary of Domino’s Pizza CEO, Don Meij, was almost 435 times that of the average Australian worker.
Mr Meij rakes in serious dough – $36.84 million to be exact – compared to the average full-time Australian salary of $84,661.20 per year.
Furthermore, research from the Australian Council of Trade Unions (ACTU) found that 8 in 10 Australian workers haven’t had a pay increase that kept up with rising living costs in the last 12 months. In the same period, almost half of all Australian workers received no pay increase at all.
In October, nationwide rallies started with the organisers aiming to highlight “exorbitant CEO pay” and company profits compared to the “very low or non-existent” pay rises of many Australians.
“We’re sick to death of CEOs telling low-paid workers they need a pay cut,” the ACTU posted on Twitter. “It’s time to give working people the tools they need to secure fair pay rises.”
Mr Meij isn’t the only one earning big dollars. The country’s top 100 CEOs have received an average annual pay increase of 12.4%.
“Working people have had enough of businesses taking obscene profits and CEOs making exorbitant salaries at the expense of the pay rises and job security we need to get ahead of the cost of living,” ACTU secretary Sally McManus said at the Melbourne rally.
Thousands of workers have attended rallies, with the
last one being held in Canberra on 20 November.
However, the Australian Chamber of Commerce and Industry (ACCI) has said unions are misinforming their members.
According to a report in the Guardian, ACCI’s chief executive James Pearson, said the “ACTU’s campaign is really about putting power into the hands of big unions, disempowering employees, and removing their choices.”
Negotiating wages that are fair and commensurate with workers’ skills and experience can be tricky. The HR Dept can give you accurate and confidential advice about fair wages and pay increases.
Work-life balance concept outdated in contemporary workplaces
“Work-life balance” has been a buzz phrase for years, but a new report shows the concept is outdated.
Researchers noted that “work” is based on the idea of permanent full-time employment – which is increasingly less common with the rise of part-time, contract and gig work.
“Life” usually relates to childcare responsibilities, but “people may want to balance work with pursuing education or religious responsibilities … or simply other activities or hobbies,” Curtin Business School associate professor Julia Richardson told HR Daily.
She says employers must consider the needs of individual employees if they want a more diverse and inclusive workforce.
“Neglecting the environment may drive away customers, but neglecting people’s lives may drive away key members of the workforce,” wrote management guru Charles Handy.
Ensuring employees have a happy work-life balance will not only protect your workers’ wellbeing – it’s best for business. Contact the HR Dept for help with getting the balance right.
Union push for sexual harassment to come under Fair Work Act
Employers could soon be obligated to prevent sexual harassment in the workplace.
There is talk that Unions NSW plan to call for legislative changes that would see sexual harassment treated as a health and safety issue because companies are currently not obligated to prevent their workers from being harassed.
“The reality is, sexual harassment has a terrible impact on people’s health,” said Unions NSW Assistant Secretary, Emma Maiden. “We’ve seen it with the #MeToo movement, so there’s no doubt there should be an onus on employers to provide a workplace that is free from sexual harassment.”
The call comes in response to the Australian Human Rights Commission’s national workplace sexual harassment survey, which showed that 25% of women and 16% of men have experienced some form of workplace sexual harassment in the past 12 months.
However, fewer than 1 in 5 people who were sexually harassed at work in the past 5 years made a complaint. Of those who did, 19% were labelled as troublemakers, 18% were ostracised or victimised by colleagues and 17% resigned.
Unions NSW want to see changes incorporated into industrial law. Then “unions (or groups of workers) could take complaints of sexual harassment, and failures by employers to address the problem, to the Fair Work Commission – an easy-to-access, no-cost jurisdiction.”
It’s in every employer’s interests to have policies that support their employees and maintain a harassment-free workplace.
Sexual harassment is a complex issue and laws are rapidly changing. Contact the HR Dept for up-to-date advice on developing workplace policies that address the issue and how best to handle any concerns.
Social media proving a snare for some businesses
Don’t be fooled into thinking social media conundrums are reserved for social interactions. Two recent claims to the Fair Work Commission prove otherwise.
Both cases revolved around claims of unfair dismissal. One involved a supervisor who posted offensive and threatening messages about a subordinate on Facebook, causing her distress and concern for her safety.
The other involved an OHS representative at a mine who posted on Facebook that “work shifts are off” over the Christmas holidays, without being authorised to do so. This led to significant confusion among employees who had volunteered to work during the break.
In both cases, the FWC ruled that dismissal was justified, but they highlight the importance of companies having social media policies that clarify expectations and explain consequences for failing to observe them.
The HR Dept can help you develop a comprehensive social media policy to protect your business and staff.
Yoga, naps and unlimited leave – workplace perks from top employers
Nap pods, onsite yoga and free cooking classes. It might sound like a health retreat, but it’s actually the perks some companies offer employees.
Google, Netflix, Virgin and others are providing these perks to help secure – and keep – the best talent. It seems to be working!
Businesses offering wellbeing perks and flexibility are topping LinkedIn’s list of companies Australians most want to work for.
Creating a culture where employees can discuss their needs for flexibility, along with prioritising their wellbeing, helps businesses attract great staff and reduce turnover.
Contact The HR Dept for personalised advice.
Senate inquiry says Fair Work Act is unfit for future
Australia’s Fair Work Act is at least ten years behind where it should be, thanks to the rapid rise of “non-standard” workers and technological change, according to a Senate committee report published last month.
The inquiry into the future of work in Australia concluded that significant reform and improved planning is needed to address growing workforce inequality.
A key problem area is “non-standard work” which includes people employed on a casual, temporary, on-call, labour hire and gig basis. The committee found that while these practices are now commonplace, they circumvent the traditional employer/employee relationship that has been the foundation of Australia’s workforce.
Furthermore, this type of work is frequently associated with low wages and limited access to entitlements like sick leave, holiday pay and superannuation, the report says.
Another issue raised was the “suboptimal” consultation by employers on technological change affecting employees. The report noted that under current laws, workers may not be able to negotiate collectively on the impacts of such change in their workplaces.
The committee recommended that Australia:
- Reform the definition of ‘employment’, including broadening the term to capture gig economy workers.
- Improve the superannuation rights of non-standard workers, abolish the $450 minimum threshold for superannuation contributions, improve access to flexible working and implement a portable leave scheme.
- Reform the labour-hire industry with a licensing scheme, a test for owners/directors of labour hire companies, a transparent fee structure, penalties for using unlicensed labour-hire firms and giving labour-hire workers the same wages and conditions as employees.
- Strengthen bargaining power and consultation requirements for workers and unions, including requirements for employers to consult with workers and trade unions before introducing major technological change.
- Introduce a new government body and a plan to address workforce changes.
The committee was largely comprised of Labor senators, with a dissenting report released by Liberal National Senators saying it “turned the inquiry into a union directed Labor election campaign exercise.”
Concerned about how these workplace law changes might affect your business? The HR Dept can help ensure you stay on top of all your legal requirements.
Want to keep your workers happy? Lighten up!
While some workplaces go all out to keep their people happy – think gyms, unlimited caffeine and bring-your-fur-baby-to-work days – the solution may be far simpler. Recent research reported in the Harvard Business Review (HBR) found access to natural light trumped these “modern day” perks.
This might seem a no-brainer if you’ve toiled under harsh flickering fluoros, but the benefits are backed by studies showing a connection between natural light and employee wellbeing.
The HBR reported that 47% of employees admit feeling tired from a lack of natural light, while 43% say it makes them feel gloomy.
This study found optimising natural light improves workers’ wellbeing significantly – those with daylight office environments reported a 51% reduction in eyestrain, 63% lower incidence of headaches and 56% less drowsiness.
Letting some light in could provide the boost your workers need.
The HR Dept are experts on employee satisfaction and productivity. Contact us to discuss ways to enhance the wellness of your workforce.
Why denying flexible work requests may land you in court
Australian employers will soon be forced to justify denying requests for flexible working arrangements, under changes to modern awards to be implemented by the Fair Work Commission.
Under the changes, employers must “genuinely try to reach an agreement on a change in working arrangements”, the Commission said in its decision.
The new rules will require employers to consider an employee’s individual circumstances, the consequences if changes are not made and alternative arrangements if a flexible work request is denied.
Workers will have the right to mount a legal challenge if an employer fails to adequately consider their request and provide a detailed written explanation about the business grounds for refusal.
The Commission said its decision was a response to “significant unmet employee needs for flexible working arrangements” in Australia, where about 25% of workers were unhappy with their working arrangements.
An exact date for the implementation of the change has not been set.
While the decision might seem like another burden for business owners, a report by Smart Company suggests seeing it as an opportunity to “future-proof” your business. Millennials are predicted to represent 75% of the workforce by 2025 and a Deloitte study shows 75% of them consider a “work from home” policy important. So this could be the catalyst to make some changes that will benefit your workers and your business.
Many businesses don’t have an HR department to manage these employee issues. But The HR Dept is dedicated to understanding them for you. Contact us to discuss how to use changes like these to build a better business.
Asleep on the job? Problem affecting 40% of Australians
If you’re yawning while reading this, you could be one of almost 40% of Australians getting inadequate sleep, as reported in a Sleep Health Foundation study.
For many, anxiety over sleeplessness is compounding the problem – adding to their difficulty in drifting off.
Another study explored the sleeping habits of almost 400 business leaders and found this “generally sleep-deprived population” were experiencing sleeping problems due to their inability to switch off from work.
This study also found evidence that respondents associated sleep loss with productivity and success, a “common yet faulty” notion in which sleep deprivation is expected in ambitious leaders.
If drowsy leaders aren’t enough, the implications of having exhausted staff driving or operating machinery could bring new meaning to the adage “you snooze, you lose.”
Efficiency and productivity don’t have to come at the sacrifice of sleep. Talk to The HR Dept about better ways of doing it.
Angry panda helping stressed Japanese workers
The Japanese have come up with a novel approach to dealing with the daily difficulties at work – Retsuko, a 25-year-old cartoon panda.
It is hoped Japanese viewers will identify with Retsuko as she vents her workplace frustrations. It’s another step in helping with Japan’s problem of karoshi – death from overwork.
Recently, a Japanese chairman resigned to take responsibility for the death of Matsuri Takahashi, a 24-year-old employee who took her own life after complaining about excessive working hours.
You don’t need to become a cartoonist to look after your employees. Contact The HR Dept for advice.
Pizza chain cheats 20 workers out of hard-earned dough
Domino’s have broken a new record, but it’s not a record good businesses will want to emulate. The Fair Work Ombudsman has issued Australia’s largest pizza chain with 17 formal cautions, following an audit of 33 stores over a one-month period.
Breaches of workplace law were found in 19 stores after inspectors interviewed 144 Domino’s workers and analysed 874 employee records. They discovered 20 workers had been underpaid a total of $1,978 in that month, along with other breaches such as non-payment for:
- Hours worked
- Delivery allowances
- Leave entitlements
- Unauthorised deductions and
- Record keeping breaches
The findings have prompted the Fair Work Ombudsman to call upon Domino’s head office to take action as the results indicate systemic issues in the franchise. “It’s in head office’s best interests to set clear expectations with their stores, provide them with comprehensive training, support and regularly check that workplace laws are complied with,” Fair Work Ombudsman, Sandra Parker said.
Ms Parker explained that recent law changes mean franchisors can now be held liable for workplace breaches by businesses within their networks.
Investigations are ongoing with only four stores found to be fully compliant with workplace laws, while ten non-compliant stores are owned by one franchisee.
It’s not the first time this has happened. “The Fair Work Ombudsman has worked with Domino’s head office for several years to try to promote a culture of workplace compliance,” Ms Parker said. “While Domino’s have made some improvements to their processes, they should be closely monitoring their stores to ensure employees are being paid correctly.”
Receiving a formal caution puts a business on notice that future non-compliance could result in fines.
Ms Parker said the Fair Work Commission will “continue to closely monitor Domino’s across its network by responding to requests for assistance and assessing any intelligence we receive.”
Fair Work will undertake further compliance assessments of Domino’s within 12 months, including unannounced site visits.
Are you completely confident your business is compliant with Fair Work regulations?
Don’t take the risk! Your local HR Dept professional can help ensure you stay on the right side of workplace law. Contact them today.
The new Japanese cure for Monday-itis
The Japanese are known for inventions – think robots, reliable cars and karaoke – but their latest is a pearler. In a novel approach to improving work-life balance, Japanese workers could soon be taking Monday mornings off.
Named “Shining Mondays”, the proposal from the ministry of economy forms part of a broader plan to reduce employees’ overtime and deal with karoshi – death by overwork.
Under the proposal, employers will let staff clock on after lunch on Monday once a month. It will complement Premium Fridays, where staff finish early on the last Friday of each month.
Australians might not be suffering death by overwork just yet, but statistics from a 2017 report by the Australian Institute of Health and Welfare show we are struggling to achieve work-life balance. In fact we rank in the bottom third of OECD countries for working longer hours.
To find practical solutions for better work-life balance for you and your staff, contact The HR Dept.
Get more motion in your meetings (minus the risk)
Meetings may not be renowned for generating momentum, but a Sydney shared workspace is getting theirs on the move.
As part of “Step-tember” – an initiative encouraging people to take 10,000 steps every day in September – WeWork in George Street, Sydney ditched boardroom chairs in favour of treadmills.
Instead of sitting for meetings, staff walked or jogged in an approach aimed at getting people more active and increasing workplace productivity.
This seems to make perfect sense, given the strong evidence that good employee health and wellbeing boosts overall organisational health.
But…. what if someone sprained their ankle, or had a heart attack?
Workplace wellness programs need to be developed in light of Workplace Health and Safety regulations.
Contact the HR Dept to discuss ways to help your staff stay well while maintaining compliance with risk management and workplace safety.
How does investing in lifelong learning make smart business sense?
Just because your employees have the qualifications they need to do the work doesn’t mean they should stop learning.
Lifelong learning has proven to be the key to not just a sustainable workforce, but a profitable business. Research has found that companies offering structured training have an average 218% lower staff turnover rate and 24% higher profit margin.
While getting outside experts to run training is great, many companies already have an inbuilt multi-generational pool of knowledge waiting to be utilised.
Tim Reed, CEO of MYOB, says age is no barrier to learning. Rather, he sees incredible potential in his older workforce. In speaking with HRM, he says, “Knowledge is key in our business, and it’s built over time, so people who’ve been with us for a long period are some of our most precious resources.”
He even has a great grandmother on his team who has continued to thrive because she has never stopped learning.
Thinking ahead is vital when developing training. Reed recommends business leaders use foresight to figure out where skills-gaps might occur five years down the track so they can start training their existing people for those gaps now.
Future-proofing staff can reduce the risk of having major workforce challenges. And given that 7 out of 10 employees say that opportunities for training influences their decision to stay in the job, investing in training is a cost-effective way to keep your people.
The HR Dept offers training courses on a range of topics all designed to help your business thrive. The lessons learned will be invaluable to your staff. Contact us to find out what we offer and how you can benefit.
Can you dismiss staff for out-of-hours conduct?
An ex-Qantas employee has paid dearly for an alleged boozy binge with the Fair Work Commission backing the airline’s decision to fire him.
Flight attendant, Luke Urso, recently lost his unfair dismissal claim. He apparently consumed excessive alcohol while on what is called “slip time” – the time between flights.
Problems started when he collapsed, was hospitalised and recorded a blood-alcohol reading of .205. Urso was unable to work the following day and was suspended on pay during an investigation before Qantas dismissed him.
Because Urso’s employment was considered a “safety critical role”, his actions out-of-hours impaired his ability to safely conduct his job, legitimising his dismissal. Therefore the Fair Work Commission concluded his dismissal was not disproportionate to the gravity of the misconduct.
Unfair dismissal rules are complex – especially with staff out-of-hours behaviour. For reliable advice and assistance, contact The HR Dept.
NT auditor-general uncovers raft of expensive errors
A Northern Territory public servant has been overpaid nearly $500,000 thanks to a misplaced dot. Instead of $4,921.76, they were paid $492,176. This was one of over 700 overpayments made by NT government departments which were highlighted in a report by the auditor-general.
Further checks revealed one worker had accrued 4,775 hours (about $400,000 worth) of paid leave.
These findings emphasise the necessity of monitoring wages, leave entitlements and the need to deal swiftly with any issue.
The HR Dept can help you put strategies in place to make sure you avoid any expensive wage or entitlement errors. Contact them for professional advice.
New family and domestic violence leave entitlements – all you need to know
In recognising the serious and widespread problem of family and domestic violence in Australia, the Fair Work Commission has updated awards to include a new leave entitlement.
Family, domestic and sexual violence are a major welfare issue. Recent statistics from the Australian Institute of Health and Welfare have shown that violence by an intimate partner causes more illness, disability and deaths than any other risk factor for women aged 25–44.
Nor are men immune, with one man each month being killed by a current or former partner in the two years from 2012–14.
The new clause will allow most employees to take five days of unpaid leave to deal with family and domestic violence. It’s aimed to empower victims to seek the help they need, without threatening their work situation. It took effect on 1 August 2018.
Employees can use the leave to deal with the impact of family and domestic violence, including things like making arrangements for their own (or a loved one’s) safety and attending court hearings.
Some of the key things you need to know about the leave include:
- It will apply to all employees, including casuals
- The full five days will be available to all employees, regardless of whether they work full-time, part-time or casual (in other words, it is not pro rata for part-time or casual employees)
- It will be available in full at the start of each 12-month period – rather than accruing over a year of service
- It will not accrue from one year to the next
There are some exceptions to the entitlements, such as enterprise awards. If an employment contract or workplace policy provides less than the minimum entitlement in the applicable award, the award entitlement still applies.
The HR Dept can help you understand the implications of the new leave entitlements for your business and work with you to ensure you comply with implementing them.
For further advice on ensuring victims of family and domestic violence in your workplace can receive their entitlements without unnecessary business disruption, contact The HR Dept today.
Essential tips for a happy and healthy workforce
It’s no secret that mentally healthy workers are more productive. Promoting good mental health is not just a nice thing to do – it’s a smart business decision.
The Mentally Healthy Workplace Alliance was established in 2013 to encourage – and provide resources for – mentally healthy workplaces.
Their suggestions for managers include:
- Using online resources to educate your employees about mental health
- Speak openly about mental health in the workplace and encourage others to do the same
- Communicate your commitment to privacy and equal opportunity
- Develop a mental health and wellbeing policy
- Minimise workplace risks to mental health, such as job stress
- If you are concerned about an employee, have a conversation with them
Contact The HR Dept for advice on making your business a mentally healthy one.
Manager’s email goes viral (for all the wrong reasons)
Ever dreamed of having your emails to employees go viral? It happened to one Sydney boss, for all the wrong reasons.
The outrageous outburst by Marcus Wood, the director of Mars Recruiting, was reported in The Guardian.
Wood’s email to staff included a rant about under performing staff “getting on my tits” and threatening they would have their “sorry asses fired and slung out the door in under 3 months”.
After confessing he was the author of the self-described “Gordon Ramsay meets Donald Trump-style email rant”, Woods claims to have learned from the experience after the leaked email went viral.
Moral of this story – if you want to avoid making a public apology (or winding up in court), think before you press send.
When staff performance issues get you down, don’t deal with it yourself. Contact The HR Dept for help.
What to do when an employee doesn’t return from holidays?
Everybody looks forward to their annual holiday. So much so that some find it a struggle to return to work and the routine of everyday life afterwards. But if an employee heads off on holiday never to be seen, or heard from again, this could be abandonment of employment at the employee’s initiative.
As an employer, how will you know that an employee has abandoned their employment?
It can be hard to prove as there could be many viable reasons as to why they have not returned to work. Abandonment of employment can usually be concluded when an employee’s actions (or inactions) indicate that they do not wish to return to work.
A lack of communication on the employee’s part can make this a cloudy situation. So you will want to make sure you have followed all the necessary steps before concluding the employee has no intention of ever returning to work.
Before you choose the dismissal route, it’s worth noting that all employees are protected against unfair termination under the Fair Work Act. So, to cover yourself, you’ll want to be sure that you made every effort to clarify the situation before making any risky assumptions.
There are a series of steps that you must follow before concluding abandonment of employment:
- Consider the circumstances of the absence, including its length and the reasons surrounding it. Has the employee tried to make contact?
- Attempt to make contact with the employee. Try calling or emailing the employee and keep a record of attempted contact.
- Send a letter. Explain via letter that the employee is taking unauthorised absence and that an explanation of absence is required. Set a date for the employee to respond or report to work by, otherwise employment abandonment may be accepted.
- Repeat the previous steps to show every effort has been made to communicate with the absent employee.
- Send a final letter. If no contact has been made by the employee after following the above steps, send a signed for letter which clearly determines that after several attempts to contact the employee, you have accepted they have abandoned their employment.
For advice on what to do if the employee responds, or to check the process against a specific award, call your local expert at The HR Dept.
Is your Fair Work statement up to date?
With updates to the Fair Work Statement every year, keeping on top of yours can be a hassle.
The Statement forms part of the National Employment Standards (NES) and gives employees a clear framework for understanding their employment.
A vital part of the Fair Work Statement is the National Employment Standards. These outline ten mandatory employment standards that must be given to every employee, regardless of their award, contract type or contract length.
WorkPro – an online platform for managing workforce compliance – enables you to deliver the Fair Work Statement as a mandatory online task for your worker to read and accept. It also records their response.
WorkPro also automatically updates the Statement each year, making it a quick and easy way of ensuring compliance.
The HR Dept offers WorkPro so speak to us about how it can streamline the key aspects of your workplace compliance.
More work in less time? Lessons from the four-day week
While most employees dream of working less without sacrificing income, one New Zealand company made this a reality. The company’s founder had the idea for the trial after reading that workplace productivity could be as low as one-and-a-half hours per day.
The results were surprising. Not only was job performance maintained (even increased) over four days, stress was reduced by 7% and work/life balance improved by 24%. Job engagement and satisfaction also increased.
The four-day week may not be for everyone but offering flexible work arrangements can be a great start towards achieving the same outcomes.
Why SMEs should act on workplace sexual harassment
Celebrity sexual harassment allegations in the entertainment industry have dominated the news since October 2017 and triggered an unprecedented global reaction. The worldwide #metoo movement has evolved as women, in particular, feel empowered to speak out on social media about their experiences of workplace sexual harassment.
Now attention will be on Australia as the Australian Human Rights Commission (AHRC) has announced a ‘world first’ enquiry into sexual harassment in the workplace. Kate Jenkins, the sex discrimination commissioner, will lead the enquiry. In comments to the ABC she said:
“The timing was right, the appetite for change is there and we have all the functions to make sure we can help Australia lead the globe in finding new solutions for sexual harassment.”
The enquiry will explore the reasons behind the growing number of incidents of workplace sexual harassment. It will investigate what businesses are doing to address them and the impact of existing Australian laws. Special attention will be given to women who are affected financially when workplace sexual harassment causes them to change employers or miss out on promotion.
The Federal Government supports the 12-month AHRC enquiry and is funding half the estimated $1m cost.
Every Australian will have the chance to lodge a submission with the enquiry and public consultations will be held in major cities as well as regional centres. Workplace sexual harassment policies and procedures used by businesses around the country will be under scrutiny, as well as the outcomes of complaints.
The HR Dept can help you understand workplace sexual harassment laws and review your policies and procedures, so your employees and your business are protected. Read on for some top tips on stamping out sexual harassment in the workplace.
– Set the tone. Make it undeniably clear to all of your employees that sexual harassment will not be tolerated and will be dealt with severely.
– Lead by example. Ensure your company culture is inclusive and fair to all.
– Communicate. Provide training with clear instructions on behavioural expectations and how to report harassment.
For further advice on how to address sexual harassment in your workplace contact your local HR Dept professional today.
July 2018 brings minimum wage increases
With the new financial year underway, have you updated your payroll to comply with the increase in the national minimum wage?
At the beginning of June, Fair Work Commission (FWC) President, Justice Iain Ross announced the following changes to the minimum wage, effective from 1 July 2018:
- 3.5% increase
- New hourly rate – $18.93 per hour
- New weekly rate – $719.20 for a 38-hour week
- Weekly increase – $24.30 per week
The weekly increase was nearly double the Australian Industry Group’s preferred amount of $12.50. But the figure fell well short of the $50 per week sought by the Australian Council of Trade Unions (ACTU).
Union secretary, Sally McManus, conceded the rise was “a step in the right direction” but felt it didn’t go far enough.
Justice Ross said the commission had delivered an increase in real wages for minimum wage employees, without adversely affecting employment or putting pressure on inflation. Workplace Minister Craig Laundy agreed, describing the FWC’s decision as “carefully considered and balanced”.
The HR Dept recognises the financial impact that this will have on small businesses and can advise on ways to staff your business in the most effective and cost-efficient way whilst not getting the wage rates wrong and falling foul of the Fair Work Ombudsman. Not only could you face huge wage back payment bills you could face hefty fines and small businesses are not excused or out of the line of fire from the FWO!
If you have employees who are receiving the minimum wage, you must make sure you implement the new hourly or weekly rates.
Robots find a new way to take your job
Imagine discovering a robot had terminated one of your staff and you were helpless to intervene. If this sounds like a scene from a sci-fi action movie – it’s not. This actually occurred recently at a company in California.
Software developer, Ibrahim Diallo was mistakenly sacked by a seemingly malicious robot that gradually shut him out of every online system at his workplace.
So, while the management team wanted him to keep working, it became impossible. Even the company director was unable to roll back or override the system.
An investigation eventually revealed the glitch was caused by an ex-employee who had failed to update Ibrahim’s details prior to a system upgrade.
Ultimately, human error was to blame. But, if you want to stop the robots from running riot in your workplace, make sure any automated HR systems are reversible
Changes to Disability Employment Services have arrived
Have you created a workplace that supports employees living with disabilities? Did you know Disability Employment Services (DES) help Australians with a disability prepare for work and find a job? They can also assist employers with implementing practices that improve workplace conditions.
Now, after consulting with people living with disability, disability peak organisations, disability service providers and employers, the DES program is changing. From July 2018, DES participants have more choice about the services they use and how they’re delivered.
The changes will help people living with disability, injury or a health condition get work and stay employed. They include:
- Improving participant choice and control
- Engendering competition and contestability in service delivery
- Improving incentives for providers to place job seekers in employment
- Introducing indexation of provider payments and
- A trial of expanded DES eligibility for students in the last year of school
Contact us if you are seeking advice regarding support for a disabled employee.
How to win over employees with workplace wellness
It’s not a cliché! Your employees genuinely are your most valuable asset. But looking after their wellbeing at work by introducing wellness benefits delivers a win for you, and them. It’s no wonder wellness benefits are becoming increasingly more common in Australian workplaces.
In the US, wellness benefits are more frequently offered as a means to improve employee recruitment and encourage retention. But there are many other advantages to keeping your staff healthy and happy at work, such as:
- Productivity increases
- Less work-related ill-health and fewer injuries
- Reduced workers compensation costs
- Less absenteeism and staff turnover
- Employee relations improvements
- Healthier workplace environments
- Developing your reputation as an employer of choice
Would you like to boost the wellbeing of your team and increase workplace productivity? Ask us how we can help you introduce wellness benefits for your employees.
Avoid an expensive case of mistaken identity
Did you know that mistaking an employee for a contractor can cost you up to $63,000 per person in fines? And that’s just with the Fair Work Ombudsman (FWO). The Australian Tax Office (ATO) can bring other penalties for unpaid tax and/or superannuation.
Many businesses may never recover from such high fines!
The problem is, it can seem difficult to know who is a genuine contractor and who isn’t.
If you feel unsure, we can help. Contact your local HR Dept professional today for advice.
Culture is king – how to win millennial loyalty
It’s official. The days when jobs were for life are long gone. But it’s not employers driving this change in attitude. The modern millennial workforce is proving increasingly hard to retain.
Results from the 2018 Deloitte Millennial Survey of over 10,000 millennials, across 36 countries, revealed millennials are feeling disillusioned with self-serving businesses.
In Australia, monetary rewards are important but they aren’t the top priority for millennial job seekers. The survey indicated their most highly-rated job considerations were:
- Work environment
- Financial rewards/benefits
Millennials – anyone born between 1983 and 1994 – will soon make up the majority of our Australian workforce. Their concerns are not only relevant but also an indication of what employers must do to attract and retain them.
The cost and disruption of high staff turnover have a bigger impact on small to medium enterprises as they have fewer employees and smaller budgets.
Almost half (44%) of millennials surveyed anticipated changing their employer in under two years, with only 22% considering tenure of over 5 years.
According to Deloitte Australia’s chief operating officer, David Hill:
“While pay and culture attract this cohort to employers, it’s diversity, inclusion and flexibility that keep them there… Those working for employers perceived to have diverse workforces and senior management teams are more likely to want to stay five or more years.”
Millennials are also aware of what’s sometimes referred to as Industry 4.0 – more digital technologies including Artificial Intelligence introduced to the workplace. They feel employers should provide training opportunities, particularly in more human-centric soft skills such as critical thinking, creativity or innovation.
So how can you make your workplace more appealing to millennials so they want to work for you, and more importantly, are happy to stay?
- Build a diverse workplace and a culture that offers meaning beyond financial gain
- Offer attractive financial rewards
- Include flexibility in your work practices
- Provide more professional development opportunities
The HR Dept can help you with these and other initiatives to grow a loyal millennial workforce. Call us on 1800 473 378 or email firstname.lastname@example.org
Process fail delivers unfair dismissal win
When is a resignation not a resignation? It sounds like a trick question, but for the Fair Work Commission (FWC), the answer is very simple.
In March 2018, a nail technician working at a Melbourne beauty salon lodged an unfair dismissal claim, despite having resigned from her job. The FWC found in her favour and the business was ordered to pay over $20,000 in wages and superannuation.
So, how did a resignation lead to a successful unfair dismissal claim? Two hours after receiving her resignation, the business fired the employee via email, stating she’d altered a medical certificate, giving them grounds to terminate her. Fair Work Commissioner Michelle Bissett ruled this email invalidated the resignation and opened the door to an unfair dismissal claim.
At the hearing, the FWC accepted the technician resigned because she felt bullied by her employer after making enquiries about her wages. There was evidence she had previously contacted the ATO and the Fair Work Ombudsman about pay and superannuation she believed she was owed.
The employer offered little proof the technician had backdated her medical certificate and the dismissal was found to be harsh and unjust.
If you want to avoid a similar situation in your business, it’s important to remember you can accept a resignation but still reject the reasons given. However, you should avoid countering a resignation with a dismissal.
For help with termination questions contact The HR Dept.
We can develop thorough processes to ensure your employee-related activities – from performance management to suspicions of fraudulent behaviour – are always documented.
Should candidates keep mum about their pregnancy?
For women, when it comes to revealing pregnancy or even marital status, it can feel like the recruitment playing field is far from even. Credit report specialists, Credit Angel, recently revealed that around one in three female job applicants don’t wear wedding rings when attending job interviews.
And a woman on a parenting website ignited debate when she asked forum members whether she should reveal her pregnancy during a job interview. She was concerned she might not be offered the job if her potential employer knew she was seven months pregnant. Responses were split between people urging her to be honest, while others believed the employer would discriminate.
Despite the concerns, Australian employment law is clear – neither an applicant nor an employee can be discriminated against because of their gender.
For employers, negotiating employment law and ensuring you’re protected against discrimination claims can be tricky. To be sure, contact The HR Dept today.
Is your business affected by Single Touch Payroll?
From July 2018, Single Touch Payroll (STP) will be mandatory for ‘substantial employers’ (defined as businesses that employ 20 or more people).
New processes can bring new challenges, so how should you prepare for STP? Here are 7 tips:
- Establish whether you’re a substantial employer. (No need to submit your headcount to the ATO.)
- Speak to The HR Dept and/or your payroll software provider about STP help and reporting.
- Subscribe to ATO updates about STP and make sure your contact details are current.
- Review your payroll processes, to ensure payroll staff understand and are prepared for STP implementation from 1 July.
- If you won’t be ready in time for rollout, contact the ATO and ask for an extension.
- Once your software and systems are set up, begin reporting to the ATO.
- If you encounter problems, get in touch with The HR Dept who will be able to help.
Strategy essentials for remote working success
Has your business embraced the idea of employees working remotely? In recent years, working from home has become a well-established practice in many companies. A study by Remote.co revealed working remotely has grown by 115% since 2005.
There are some challenges such as isolation and accountability. But remote working also delivers benefits for businesses and employees alike, from improved productivity to cost savings, greater job satisfaction and healthier employees.
Founder and CEO of Remote.co, Sara Sutton Fell acknowledges that the success or failure of remote work depends on how it’s executed.
“There are critical strategies and management techniques necessary to make remote work a success, whether it’s applied to one worker, a team, or an entire business.”
Are you interested in developing a remote work policy for your workplace? Avoid the challenges – speak to us.
Embracing sport to build winning workplace teams
Australia has a worldwide reputation as a sports-mad nation. From Test cricket to football – sport consistently outranks other entertainment in the TV ratings and around the water cooler.
When major events like this year’s football World Cup draw near, it’s an excellent opportunity to boost employee engagement.
Start by injecting some fun into your workplace:
- Install a TV in the breakout room
- Organise a World Cup sweepstakes
- Hold a ‘wear your team shirt’ day
Introduce some flexible work options. You’ll reduce the likelihood of employees arriving bleary-eyed and distracted and you’ll demonstrate your commitment to work-life balance.