Wednesday, March 25, 2009

Don't be taken to the cleaners by unfair dismissal law changes

On Friday 20th March the new unfair dismissal laws were passed in parliament as part of Rudd's Fair Go legislation. Let's hope it really does result in a 'fair go' for Australian small business!

What you need to know about the new unfair dismissal laws:
  • small business will now be defined as those employing under 15 people
  • unfair dismissal claims can be brought against employers with over 15 people
  • unfair dismissal costs can be as much as 6 months worth of salary
  • those businesses with less than 15 staff still need to follow a process to ensure they don't unfairly dismiss and this includes completing a template detailing why they dismissed the person
  • the unfair dismissal legislation will come in to effect from 1st July 2009
  • If you employee more than 15 employees, employees can not take out an unfair dismissal claim until they have worked for more than 6 months with the organisation
  • If you employ less than 15 employees they cannot take out an unfair dismissal claim of any kind until they have worked for 12 months

For more information visit http://www.workplace.gov.au/workplace/Publications/Legislation/FairWorkBill.htm

Tuesday, March 3, 2009

Why the best organisations have position descriptions and Org Charts by Taimi Clinch

Position descriptions (PDs), when written well, should all fit together like a jigsaw puzzle to tell outsiders what the organisation does, what it believes in and what it is aiming for. 'What and how???', you might be saying. Of course they are also required to provide the same information to those within the organisation. A company's PDs should also relate directly to the org chart, showing clear reporting lines.

When I am at my most ardent, I say that no one should ever be interviewed without a current position description having been developed. To Australian small business managers this might seem a triffle extreme. They are often used to shooting from the hip and filling gaps in the organisation with the nearest, easiest option available, with little regard to how the position itself will help the organisation achieve its goals.

PDs and Org charts are a key way to communicate to your people what the organisation expects of them. They are useful when recruiting, assessing current and future workload, undertaking a performance review, creating succession plans and of course when constructing an accurate org chart.

A clear PD will outline the responsibilities of a position, as well as its accountabilities. They should work to empower an employee to do a great job by providing clear boundaries within which to work. The polar opposite of this, is when a General Manager or CEO can't clearly identify where their responsibilities and decision making start and end, and where the employee or manager directly below them starts and ends. Imagine, if a senior manager has trouble determining this, how it must look and feel to those employees who report to him/her?

Typically when employees aren't clear on their boundaries or the boundaries are changed constantly, they will move into a dis-empowered and disgruntled mode. This negative culture will usually be rife within the business unit in question. So, if you think you might be heading in this direction, never fear, there is an easy way to turn things around.

Secret to success as a manager of people:
1. Get clear on your role - decide what you need to make decisions on, and what you can leave others to decide on
2. Write all your key responsibilities in dot points (it can be rough just to get started)
3. Write key responsibilities for your employees (or update their PDs if you already have them) and make them accurate. Set some accountabilities i.e. 'this role is accountable for the hiring, management and termination of employees', or 'this role makes spending decisions within the budget' etc
4. Commit to the accountabilities you have set. Don't write the above and then insist on knowing every decision they make on the hiring, management and termination of employees. Yes, this will mean letting go of your control! If you can't let go, then write the accountability on your PD instead and remove a management layer on your org chart.
5. Breathe deeply each time the employee who now has the clear accountability makes a mistake. Don't take back the task/responsibility, instead spend some time coaching them and help them get better at it. You might want to set a time frame for this, as you may find you have given the position description to the wrong person!
6. Constantly provide encouragement, feedback, guidance, and set clear expectations, then let them soar!

If you follow this six step formula you will see your team transform. It won't happen overnight, but it will happen, guaranteed. You may also find it easier to identify the under performers or those that are in the wrong role for their strengths. Whilst step five and six will seem to be exhausting, time consuming and never ending, you will reap what you sow and with time you will become less stressed, have more time to work on the strategic stuff and know that you can go on holiday and things will run smoothly back at the office - isn't that what we all want! So beware, position descriptions are powerful things and you need to spend the time getting them right in the first place.

Monday, February 23, 2009

Periodic Renewal for Greater Business Success

I read this fabulous article that Neil from Frankston Digital sent around and just had to include on this blog (see following) - great information for those wanting to grow their business.

You Personally
It's important to really be specific in detailing what you want to achieve personally this year. If you don't, things will just take their normal course. Nothing will change without you making it happen.I recall a very powerful action tool I learnt some time ago - Think, Say, Do. Think involves thinking deeply and clearly of what you want and very specifically defining it in your mind. Say is either writing it and/or telling people of your goal or idea which creates both internal and external commitment and expectation. It brings the idea to life. Do is the final step that follows a thought and statement. There can be no ACTION without thinking and saying it beforehand. I encourage you to utilise this handy technique. It works.

Strategy for the Year
What is your strategy for the business this year? Have you updated and documented your monthly/quarterly/annual priorities, goals and targets. Review your projected sales figures, gross margins, net profits and key performance indicators. What is your marketing plan and what marketing activities will you conduct each month? Who are your new clients likely to be and where will they come from? Review your current resources - what new staff are needed and how will this be funded? What external resources are needed and how will those additional costs be funded? What is your plan to recruit new staff and how will you source these external service providers required?I recommend you do a detailed review of all areas of your business before the end of January so that you schedule and implement the important changes required effectively and efficiently.

Clients
Think about how you can better serve and communicate with your clients this year. Business is becoming more sophisticated in terms of client relationships. Businesses that build close relationships with clients win more annual share of wallet over a longer time period.Examples include regular phone/in-person contact/site visits, written correspondence, periodic client round table meetings, feedback forums and focus groups. Leading businesses have even included key clients in product/service design meetings with clients providing important input into what they really want from you. Imagine the competitive advantage in working with clients at that level.List down your prospects you wish to target for the year. These can be either specific businesses you already know or could be certain types of businesses possessing a specific set of characteristics. Estimate what revenues and margins these are likely to deliver and how you will service and resource them.Next create a marketing plan which steps out the specific activities and actions required to secure them. Some of these will be very specific targeted activities requiring allocation of your time internally/externally and creation of marketing resources and proposals. Complementing these will be general marketing activities which raise market awareness and product/service offering. Create a budget and action plan to implement this.EmployeesReview yourself honestly on how you led and managed your team last year. Make a commitment now to being a great leader this year. Schedule in your diary your regular internal meetings, regular one-on-one sessions with key staff and periodic performance reviews. These should be locked in your diary now and canceling them made non-negotiable.If you haven't shared your vision and goals for the business in 2008, make sure you outline this openly in your first internal team meeting. Allow time for questions and be patient and courteous in speaking with the team. The team can't all row in the same direction if they don't know where the ship is going.

Your Network
Think about your existing network. How strong is it? What's missing and who do you want to connect with? Specify who and how you want to approach to create partnerships, alliances and long-term relationships. Make a commitment to meeting with at least one existing/new contact each week or fortnight depending upon time available. Of course these relationships are a two-way street so think deeply about what you can offer to do to help them too. Individuals that you like and trust naturally work best but this can't be established unless you actually meet someone in person. Trust until deceived and use that innate intuition that so many business owners possess.

Giving Back
The Law of Reciprocity basically means the more you give the more you get back. If this concept resonates with you, you may want to think about how you can give something back and make a difference. You may want to support a program to employ disadvantaged youth, offer an apprenticeship to a mature age worker, sponsor a charity or community group, donate goods or services to a needy cause, provide volunteer services, start your own cause -- the opportunities are endless.In my humble opinion it is definitely not a cliché that the more you give the more you get back. It's just the way it is. If you are authentic and genuine in your outreach work, you will be so much better off and I'm not just talking in material terms. And you might just change the world!Darren Bourke, Business Influence, 2008.
You are welcome to "reprint" this article online as long as it remains complete (including the "about the author" information at the end).About the Author:Darren Bourke is a Consultant, Business Coach & Mentor who helps small & medium businesses struggling to maximize profitability, productivity, people and performance. His Free Report titled What Successful Owners of Growth Businesses Do That You Don't, newsletter and updates are full of strategies and tips to make your business boom. Go here to sign up now.
Contact us today: Call Neil on +61 404 830 664or email neil@frankstondigital.com

Wednesday, November 19, 2008

The best job description template

As an HR Consultant to Australian small businesses I see alot of job description templates - and I have to say they can be very complicated! The template I use (which has evolved over time) is outlined below. I think it covers all the important areas and have found it really easy to write selection criteria using this template and I would usually include selection criteria at the end of the document.

POSITION DESCRIPTION

Position Title: Group HR Manager
Company: Smith Co

Location: Melbourne, with some travel to Sydney
Employment Type: Part-time
Tenure: Ongoing


Reporting structure
Reports to: CEO

Supervises: HR Officer

Internal Relationships: Administration staff
All company employees

External Relationships: Recruitment agencies & other suppliers

Position Objective
§ Develop and implement Smith Cos Human Resources Strategy to attract, retain, develop and reward employees

Key Responsibilities
HUMAN RESOURCE MANAGEMENT
Strategic HR management including;
§ Develop HR strategy to align with business objectives
§ Develop and implement performance management system to reward high performance
§ Develop and implement OH&S Management System to ensure a safe & healthy workplace
§ Develop comprehensive policies and procedures manual
§ Develop and implement training and development program to grow organizational capabilities
§ Strengthen SmithCo's brand to market to potential applicants

Operational HR requirements include;
§ HR Administration
§ Maintain HR information system
§ Distribute employment paperwork including Employment Contracts
§ Assist managers with Induction of new employees
§ Develop comprehensive set of policies and procedures
§ Ensure policies and procedures are disseminated and understood
§ Drive performance development program; coach managers on effective staff development
§ Provide HR advice to managers and employees
§ Manage administration of OH&S program


CLIENT SERVICE
§ Demonstrate optimal client service in all circumstances i.e clients- internal and external, staff and external links


Accountability and Extent of Authority
The position is accountable for delivering on Key Responsibilities and Position Objectives

Note: Statements included in this position description are intended to reflect in general, the duties and responsibilities of this position and are not be interpreted as being all inclusive.

I understand and will undertake my duties as outlined by this position description

Name: _________________________________

Signed: _________________________________ Date: _____________________

The best policy template

I often get asked what the best template is for a policy or procedure in small business and I always reply - keep it simple! I have included a sample template here that I have modified over time and have come to love. Odd, I know, that I love a template - but hey, I love policies and procedures - it's an illness I think.


Policy – NAME OF POLICY
Document ID: Approved By: Date of Approval: Revision:


Purpose: (why does this policy exist?)

Scope: (who does it apply to?)

Responsibilities: (who is responsible for the various aspects of this policy. This would typically be: managers are responsible for enforcing this policy and employees are responsible for abiding by this policy)

Definitions: (define any concepts/words used or put N/A if not applicable)

Policy Details
(Write your policy here)

Related Documents:
(List any documents and forms that relate to this policy. You can hyperlink them which makes it easier to find the correct documents)

Typically a small business should have the following policies in place:
OHS policy and various procedures
Performance management policy
Performance development policy
Harrassment and bullying policy
Annual leave policy
Sick leave policy
Bereavement leave policy
Company vehicles policy
Mobile phone and telephone calls policy
Internet and email policy
Code of conduct policy
Confidentiality policy
Travel policy
Expenses policy
Personal presentation policy
Uniform policy
Termination policy
Training policy

Friday, November 7, 2008

What use is HR in Australian Small Business Anyway?

As an HR Consultant to Australian small business I often get the sense, when I introduce myself at a party, and the inevitable question is asked - "what do you do for work?", that people can’t quite understand the need for HR in the small business environment, or what it is I actually do. For many years I have taken umbrage at this and many times I have groaned to friends "small business managers don't even know what HR is, let alone how it can help them." However, I recently realized that by getting annoyed, I had set myself up for disappointment, as I had in fact made a c conscious decision to help this market with their HR issues. At the time of choosing, I did not realise the extent to which I would have to educate the market and convince them of need. Over time, I have sat in many small business offices where they have told me they don’t really have any HR issues, only to hear in the background constant enquiries about pay changes, complaints about excessive sick leave, another employee has resigned. “We do have a lot of staff turnover on our sites” one Financial Controller told me as a matter of fact as if there is nothing that can be done for it, after I had finally been given the HR contract after two years of meetings and proposals – I am a patient gal!

Being born and bred in small business and having a natural passion for HR I set off to bridge the HR gap for Australian small businesses. As with many good ideas I may have been ahead of my time, although I am not totally convinced of this. As I set out to promote HR to small business I was at the forefront (internet wise in 2004) of small business HR consultancy. However, I noticed the other players were busy positioning their websites to appeal to big business, rather than talking to the small business owner. I thought, “gee these guys must be good at marketing to be able to sell corporate HR to the small business man” and I started to wonder what I was doing wrong (because the conversations I was having at a grass roots level, continuously showed me that small business didn't know what HR was, let alone that they needed it). I pushed on, but ended up pulling my HR website and instead developed this blog. I was continuously employed in varying industries, largely on a contract basis, from word of mouth referrals. Once in the small business as a consultant, the great affect of HR can often be overwhelming to the business owner/manager and I thrived on delivering outcomes. Yet I still had a longing to bring small business HR to the masses and my hope with this blog is that small business owners and managers can gain practical, actionable solutions, to move their business into high performance mode, through good people management strategies. My purpose for this site is to use my small business experience, my HR skills and my out-of-the-box approach to solve people problems and provide quality free content on HR management tips.

I was really disappointed in the HR industry today as I googled ‘HR+Blog’ in Australia and was presented with a wide array of HR blogs speaking to HR professionals. No one was talking to the small business owner, yet again. However, approximately 90% of Australian businesses are small businesses! HR people can be very narrow, and I'll probably annoy a lot of my fellow industry people by saying so. Taking what the big business guys know and benefit from daily and morphing it into something useable and practical within a small business environment is what I love and passionately believe should be done.

My approach seems to be quite different to most HR consultants, due to my hands on small business management experience. I know what it is like to manage a staff of 10 across two sites, I know the constant pressures that small business managers face and the long hours they work. I know the disappointment at not having your staff appreciate all that you do for them! It is quite bizarre the passion that a small business owner can have for their business - the type of passion that wakes them up at 2am and has them creating colourful mindmaps on the kitchen table using the children’s textas, tip toeing around so as not to wake the house. This all encompassing passion can set you up for staff disappointments and I have had my fare share of them. Only last year at our work Christmas function I ended up in tears when the staff gave the Managing Director a Christmas present but didn't have one to give me (due to an innocent mistake by the staff member who had been charged with the duty, forgetting to bring it to the function). I had laboured over the staff's presents and stupidly spent a day of my bereavement leave (when my sister-in-law passed away) carefully selecting their christmas gifts. I wrapped them with my children’s help and carted them all the way in to the city venue. I had booked the venue, ensured the menu would be suitable for all tastes.. For all my care and attention, I received a big fat nothing! (this was a particularly emotional time for me with my sister-in-laws passing, but still!) I think a lot of small business owners can relate to this terrible feeling of receiving nothing back, when seemingly giving everything.

There are simple things that small businesses can do to retain their staff, keep them happy, motivate them (although they may never have the same passion as you do – unfortunate, but true!), recruit the good ones, create and develop high performers and move from a fire fighting approach to a high performing team. You just may not end up with a Christmas present at the end of the year!

What underpins great HR is a clear vision and values that staff can align with and buy in too. These two items, whilst being the concrete slab of good HR, are also really good business practice and something that few small business owners ever stop to consider. So, my number one tip is to create your vision and communicate it to your staff, all the time.

The second thing good HR does is create clear policies and procedures that guide employees and management in decision making. Whilst employees actually really like policies and procedures, because it makes things clear, small business owners find them hard work to construct and often have difficulty setting aside the time to do them. An HR consultant will guide you in the underlying issues to consider when creating policies and procedures. For instance, a simple company car policy is likely to arise out of an issue of someone using excessive fuel in the company car. The usual small business response would be to quickly construct a company car policy and distribute it via email. The employee in question would then feel victimized and unhappy and would share their hurt with others, thereby damaging many other employee perceptions within the company. The policy which is a re-bound policy probably will not address all the other potential issues and the next time an issue arises the manager will say “we have a company car policy, it should be in there”, so the next issue gets added into the policy and it gets distributed to the staff and the employee in question feels victimized… you get the picture. The tip here is that all HR policies and procedures are linked to each other and need to be assessed prior to distribution for their potential to inflame issues, loop holes that employees might use against you, contradictory messages between policies (ie the company is committed to a healthy and safe workplace in one policy and then they require you to work extremely long hours in another policy). What you write in one will relate in some way to what you write in another and you want to make sure your message is consistent and that it helps to mitigate your risk, not increase it!

As HR professionals are usually pretty good at writing HR policies and procedures, they are often systems people as well, and in small business, procedures that map a business system are invaluable! They make a business saleable, ensure new staff get up and running as quickly as possible and highlight inefficiencies in production/service systems. Personally, I love policies and procedures, which my husband finds quite disturbing, and I have mapped many production/service processes for businesses, extracted problems, workshopped and resolved issues that have been frustrating staff for years and then delighted in the increase in productivity. So HR and small business are a natural fit, when you think outside the box; and I haven’t even touched on staff performance yet! Next time….

Thursday, November 6, 2008

What does the looming recession in Australia mean for staff retention?

Will Australia experience a recession or not? That's the question on everyone's lips; especially small business owners. The uncertainty, which is largely being fed by the media, is excruiciating. As a planner and an HR Consultant who is interested in people retention and high performance, I am curious as to the future for Australian small business.

Reading business news items from the UK and USA it would appear that the impact of their recessions is still largely to hit businesses. It is certainly being discussed, but no one is saying they have actually felt the tightening as yet.

All this talk and hype will be impacting negatively on your employees; making them feel insecure and unstable. This is a risky time for employers who have high performers. If high performers get a sniff of uncertainty from you, they might pack up their desk and look for more stable pastures. Recruitment is a costly and difficult exercise at any time, but it is more frustrating when it interrupts your business flow during already difficult times. We should all be aiming for strong staff retention.

Tips on keeping your staff during a recession:
  • Offer flexible work arrangements - this is a good non-financial motivator and quite attractive to many employees. With compensation tipped to decrease by 20-30% in the UK in coming months, employers may be looking for non-financial rewards to entice high performers
  • Invest in training - training your staff will significantly impact on productivity. It is much cheaper to invest time and money into training your existing staff, than to recruit new ones. You will also have a great workforce, ready to achieve fabulous outcomes when the economy gets better
  • Maintain good quality service - set high expectations of your staff to deliver quality service and let them know if they aren't meeting your expectations; give them guidance on how to do it better. During these times you want to make sure the service at your front end is keeping every possible customer loyal to your business. You simply can't afford for poor services to loose you a paying customer.
  • Adopt some creative marketing strategies. Marketing during a recession is really different to marketing during good times. If you have some spare staff due to a slow down in business, get them working on a marketing project for you. After all they probably know what your customer wants more than you do! Look at it as a professional development project for your staff. There is heaps of free information on the web these days for them to research and you might be pleasantly surprised at what they come up with. Besides employees hate being bored and this will keep them active. Also, use this opportunity to phone or visit past clients and catch up on their lives. Maintaining a rapport with customers is key to maintaining your client list. Often this gets over looked during busy times.

More than ever it is important to make your staff feel secure within your business. Keep them informed of the state of play. Don't be worried about scaring them with your reality, as not communicating might lead them to worrying more, which will inturn lead to ineffective performance - this could make the situation even worse!