Important information for employers paying minimum wage and award rates

Do you pay some or all of your employees the minimum wage or award rates?

The Fair Work Commission are introducing a 2.5% increase to minimum wages from 1 July, 2015.

The new national minimum wage will be $656.90 per week or $17.29 per hour. The minimum wage applies to employees who aren't covered by an award.

MOST employees are covered by an award! Award rates will increase by 2.5%

What do you need to do?

  • You will need to review wages of all employees who are paid award rates or even currently paid slightly above the award
  • You will need to check your award(s), determine the new minimum rates for the applicable employees and ensure they are paid their new rate as of 1 July, 2015. If you have already processed a pay run covering from 1 July with the old minimum rates, you will need to make an adjustment in the next pay run to reflect the new rate being paid from 1 July 2015.

Not sure which award(s) apply to you?

If you have queries or need help, please contact me on 0499 119 294 or sarah@hrsavvyconsulting.com.au


Save thousands of dollars and increase employee performance by doing this!

Did you know research tells us that 70 % of effective learning in the work place comes from practical, 'on the job' exposure and experience, yet we spend thousands of dollars sending our employees on expensive courses!

Courses certainly have their place, however to consolidate and make use of the information we've learned in the course, we need to be able to apply the skills on a regular basis... Without doing this, your business has thrown hard earned money out the door!

Next time you identify an area where an employee could develop their skills, before you jump to the old 'Let's send you on a course' solution, think about what practical activities you might be able to get that person involved in to increase their knowledge and skills. For example, can they take on some different responsibilities which give them exposure to the new learning area? Can they spend time working with someone who is experienced in the area? Could you second them into a different role for a period of time? Could the person spend some time observing someone else using the skill they are needing to learn?

There are so many practical, highly effective ways employees can increase their knowledge, understanding and experience without having to spend thousands!

For further tips on how to effectively increase performance and development in the work place, without having to spend an arm and a leg, please contact Sarah Low on 0499 119 294 or email sarah@hrsavvyconsulting.com.au

UNDERSTAND THE CAUSE AND CURE TO THE “PEOPLE” PAIN IN YOUR BUSINESS!

Most businesses experience challenges with the people aspect of their operation during various critical lifecycle milestones – start-up, growth, transformation and even down-sizing. Many claim that people are their most important asset, but rarely dedicate the same level of time to people issues, until sometimes too late.

Often, the managers and business owners are so busy working ‘in’ the business, or perhaps too close to it, to clearly and objectively identify what the real issues are.

 HR Savvy Consulting offers an HR ‘Audit' service that involves an independent review of the current HR activities in your business by an experienced HR Specialist, which aims to identify people-related opportunities that will assist you in achieving increased productivity in your business and really focus on maximising your investment in your people.

 Working on the same approach as a gap analysis, this solution provides the opportunity to compare the current state of HR activities to that desired for your business, and then set an agreed and prioritised HR program with you.  We work with you to develop practical, sustainable solutions that specifically fit your business. 

 

The HR Audit is valuable when you are:

  • Experiencing “HR pain” throughout your business, but are not certain where the pain comes from, or what the right sequence of HR solutions or priorities should be.

  • Buying a business and as part of your due diligence activities you need to quickly understand the status of HR activities and programs in a vendor organisation, with a strong focus on non-compliance HR matters.

  • Selling a business and as part of your pre-sale activities you want to ensure your business is HR due diligence ready, with a strong focus on meeting all HR compliance requirements as a minimum.

    To find out more about our independent HR Audit service, please contact us on 0499 119 294 or sarah@hrsavvyconsulting.com.au.

Do I need to formally performance manage someone who is on probation?

Oh no.... You hired them and you thought they would do a great job. Now it's not working out. I frequently hear the question- 'Do I need to formally manage a 'non- performer' during the probation period?'

The fast answer is 'It's a grey area.'

The probation period is almost like a trial period for the business to assess performance of the employee. It's also an opportunity for the new employee to determine whether the role, the team and the environment are right for them.

If it's not working out during the probation period, employers simply need to provide the employee with the required notice period and a formal letter, confirming the necessary details.

Employers have minimal risk of an unfair dismissal claim when terminating employment under the probation period. However, it's important to be aware that adverse action claims can still take place if employment is terminated for unlawful reasons such as having young kids, a religion you don't like, or a hair cut you wouldn't have chosen yourself.

When employment is terminated under the probation period, it's a great opportunity for the employer to have some self reflection. Here are a few things to think about:

  • Does our recruitment process need to be tighter? What could we do to be more thorough in selecting the right candidate next time?
  • Was there an adequate induction and on-boarding process, equipping the new employee with all the tools and information they needed to be successful and effective in the their role?
  • Did the employee have reasonable access to their manager to ask questions?
  • Did the employee's manager meet with them to provide open and constructive feedback on the performance or actions that that were unsatisfactory?
  • What do we need to do differently, next time, to ensure we are successfully bringing the right people on board?

If it's looking like an employee isn't going to pass probation, it's important that the process is managed professionally and lawfully. If you have a situation where employment needs to be terminated under the probation period, and you want to make sure all bases are covered, it's best to consult with an experienced human resources professional or an employment lawyer.

For further information, please contact Sarah Low on the details below.

Recruitment tips to save your business time and money!

Assisting a client with their recruitment process last week was a great reminder of just how significant having a robust recruitment process can be!

On the other hand, getting it wrong can be a real time waster, extremely irritating for the team, and, not to mention costing your business thousands of dollars! In fact, getting recruitment wrong can cost a business up to, and beyond, 2.5 times the salary of the person you are replacing! Think about advertising costs, external recruiter’s fees, a decrease in operational efficiencies, loss of productive time for everyone involved in ‘re-recruiting’ as well as on- boarding and training someone new….for the second time! Investing some initial time and effort into a quality recruitment process pays dividends!

Here are some simple tips for attracting and selecting the right people for your business:

  • Revisit your business’s strategy: Is this role really an integral part of your structure or can it be remodelled to be more effective in meeting the business’ needs? Is this role needed at all? Can the responsibilities be reallocated to other roles? Can the responsibilities be outsourced?
     
  • Position descriptions and reporting lines: Do you have an up to date, and concise position description? This helps everyone involved in the recruitment process to be clear about the skills, experience and capability required. Is the position reporting into someone who can proactively manage and support the incumbent or does this need to be changed?
     
  • A thorough job brief: Make a specific list of the absolute ‘must have’ skills, experience and capabilities of the candidate. Also make a list of the attributes that would be great to have for the candidate to be considered a good team ‘fit’.
     
  • Effective advertising: Write an ad that will excite the candidates you are seeking! Be clear about what the role involves and describe what people can expect to experience working in your team. Don’t just advertise on SEEK. Think about your network of friends and colleagues, who might they know who would be a fantastic fit for your role? Is there a professional network or group that needs to know about your opportunity? Was there someone you interviewed previously that may be interested in your opportunity? Think outside the square!
     
  • Do a phone screen: Call each candidate you have short listed for the role. Probe them on important criteria to check they are suitable for an interview. For example, if your role is part time, check they are seeking a part time role and how many hours they can commit to working. This is also a great opportunity to assess their verbal communication skills, how genuine they are in applying for your opportunity, as well as their personality and motivation.
     
  • Interviews: Prepare structured interview questions that will extract as much information from the candidate and give you a good indication of their suitability. Questions should be a mixture of behavioural, technical and general. Make sure all people interviewing are well prepared and able to make a fair assessment of the candidate. When interviewing, be frank about what the role is and what it isn’t. Be frank about the culture of your business. Candidates need transparency and honesty so they can assess whether the role and the company are a good fit for them. Discuss a candidate’s potential suitability objectively with the interview panel. If the panel has any concerns, these are great to note down and form as part of the questions in your reference checks.
     
  • Psychometric testing: Can be a great tool to assess behaviour and personality. The results give the hiring manager an indication of how this person might be most effectively managed.
     
  • Reference checks: Do not skip these! Make sure you speak with at least two recent reporting managers of the candidate. These are the people who are most equipped to give balanced feedback.
     
  • Job Offer: Make a verbal offer to the candidate and follow up quickly with a written employment agreement. Notify unsuccessful applicants: It is courteous and professional to follow up with all applicants who have applied for the position and advise them of being unsuccessful. Remember, these people could be potential future employees or potential future clients of your business.
     
  • Tell your team: After you receive written confirmation that the candidate has accepted your offer, sit down with your team and communicate when they will commence as well as any other important information.

The above may seem like a lot to consider. However, I guarantee you are far more likely to employ the right person for your role, and retain them, if you invest the initial time and effort into being thorough. Think about the extra time and money your business will save by getting the recruitment process right first go!

Managing & Coaching for Performance

·    Are your people leaders equipped to manage under-performing staff?

·    Do you know how to effectively and lawfully deal with performance issues?

·    Want those ‘difficult chats’ to be more comfortable and effective?

Employees who are committed to learning and growing have a competitive edge. Underperforming employees are costly to your business both in time and in loss of productivity!

Managers need to invest time towards effective performance management discussions. Focus on both the behavioural targets and the performance metrics involves regular discussions to truly understand what can provide a ‘handbrake’ to success. It’s much easier to say that “we need to improve your team’s revenue levels” as opposed to “we really need to change some of your team’s behaviours”.

Performance management involves the creation of an open and interactive work environment that supports the development of skills in employees. It involves building rapport, giving feedback and motivating people using various techniques. It also involves dealing with those employees who are letting the team down!

You will find businesses that have a competitive edge in the market place have effective performance structures in place. Here are some of the things they do to get the business results they need:

  • Connect employees to the business’ goals and help them understand their role in achieving overall business results
  • Set appropriate performance expectations
  • Develop effective communication skills that can be applied in a wide variety of contexts and situations
  • Communicate openly and concisely with people who are under-performing
  • Plan and structure a performance management discussion
  • Provide regular and effective feedback
  • Use effective communication techniques to have those ‘difficult conversations’
  • Identify the reasons and the triggers for poor performance
  • Provide effective coaching and feedback to engage people and drive high performance
  • Lawfully address poor performance before it spirals (or after it has spiralled!)

If your business needs to implement a more structured performance management framework and needs support to be able to do so effectively, please contact Sarah Low on the details below.