People Smartz Blog

The HR Coach Research Institute has released its latest quarterly index.

According to the research:

"The last quarter has shown a marked change in business sentiment in Australia with an increase of 6% in overall business confidence.  The last half of 2011 saw a 15% drop in business confidence so the increase offers welcome respite.  There is, however, a lot of ground to make up from the highs of 2007 and early 2008.

For the first time since 2008 wage pressure looks to be back on the agenda with an 18% increase in wage expectations by employers"

To download the latest Quarterly Index Dashboard -  Click Here

During a presentation to a group of business people last month I was asked a question about the importance of long term planning in a business.

The person asking the question phrased the question to reflect his own situation where his time on a day to day basis was totally involved in the here and now - “How can I find time to think long term?”

This is a great question!

And the simple answer is…….

There is no simple answer!

One thing to do is to acknowledge is that we do not manage time.  What we manage is our use of time.  If you really think it through, the distinction between the two is important.  The first implies that we can manage a scarce resource and somehow manipulate the number of hours in the day.

Well, if you can find a way to put more than 24 hours into a day let me know – between the two of us, I think we can make a lot of money!

However, if we use the second definition – managing our use of time, we begin to open up a whole different set of possibilities.

Once you accept that it is your use of time that is manageable, this allows you to begin setting in place a simple principle which can really define your ability to “find time”.

You need to begin to differentiate between those things you do which are important, those that are urgent and those that are neither urgent nor important.

Once you begin to understand the difference, you can begin to ask yourself a question – “What is the most important thing I should be doing now?’

In the environment in which we work, often items arise which appear urgent or important but in reality are not.  For example, if your long term goal is to develop your business and you receive an email with a great YouTube clip on it – what would be the most important thing for you could do?  Watch the video or make those phone calls to develop your business?

Now as I said at the start of this article – there is no simple answer!  This is because even if you do ask yourself the question, it takes discipline to do the important when the urgent continues to beckon so enticingly.  Also, there are times when urgent things are important – meeting a customer’s reasonable needs for example.

It is because of this that knowing your goals/values and committing to them is important.  They provide you with direction and can assist you in your use of time. 

So my answer to the business person when he asked his question? 

“Identify what is important to you, identify what is urgent and identify what is neither urgent or important – when you’ve done that, start working out how to ensure you have the time to achieve your goals”

As I said, not a simple answer, but a good start!

How well are you managing your time?  How good is your goal setting?  Why not contact us for a Complementary Coaching Session to assist you!

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Yes it nearing the end of the year.  We are entering party season - a great time to unwind, rub shoulders with workmates etc.  This can be a fun time!

But end of year parties have a very serious side as many of these antics lead to "regrets" after.

Recent research in Australia found that 70% of people believed that hitting the booze led to a more "personal" feeling amongst staff.  Nearly a quarter of females interviewed admitted that their boss had made a pass at them at an office party. 

Such behaviours can present many problems for businesses, particularly if the "antics" involved lead to a complaint from a member of staff regarding the behaviour of another.

It would be easy to say "no office party" or "its too risky", but sometimes the advantages of holding the party far outweigh the negatives.  The decision to have or not have one is one for the business alone. 

I would recommend a level headed approach to this years Xmas party - making sure the party is well planned and your staff are aware of the required behaviours before hand.  This way you can have the fun while managing the risk!

To help you plan for your businesses party, download our Christmas Checklist today.

Recent research has identified the challenges businesses are facing in managing people in 2011.

This is quite a list!  

• Uncertainty in times of change impacts on confidence of employers and clarity of their strategic direction.

• Fatigue of key employees and additional workload due to shrinking workplaces leads to disengaged workers or management turnover.

• Labour is on average the largest cost to business. The statistics show that it is escalating due to employee expectations for pay increases, the growing anxiety of individual debt and increased competition between employers for talent.

• Over 50% of employees will be looking for new jobs in the next year.

• Employers are ramping up employee numbers but not planning on wage increases.

• Small business is struggling with the fact that they cannot attract quality applicants.

• It is estimated that it can cost more than $48,000 to replace an average employee on $45,000 a year.

• The Red Tape Commission estimates 75% of businesses struggle with paperwork and compliance.

• According to the published National Accountant, 65% of employees have experienced harassment.

• Changes in legislation causes confusion and mistrust. Businesses are at risk externally and it cannot be ignored. Changes in the health and safety and parental leave in Australia are major changes in compliance.

• Internationally, labour laws are becoming more stringent and complex, adding a cost and compliance burden that did not exist before.

• The aging workforce, generational shift, technology adaptation and social media impact are issues that will take hold in the coming year.

If you identify with any of these and are wondering how you can meet the challenge - then give People Smartz a call!  Contact Us

Ever wondered what successful businesses do differently?  We may have some answers for you in a new white paper!

I don't think anyone will disagree that we are operating our businesses in a very complex environment at the moment.  Uncertainty regarding overseas economies, uncertainty regarding new taxes and charges, a relatively unstable political environment (for Australia) and many other facts are contributing to a down turn in business confidence.

A new white paper is now available from our website titled "Managing Back To Certainty".  Developed by the HR Coach Research Institute, the white paper discusses the current external and internal factors effecting businesses and identifies the "Top 5 Attributes of High Performing Businesses".

Based on research conducted over 6 years and 5000 businesses, the paper identifies the factors that allow a business to be "agile and move with the times".  The research shows that employers who are thriving are focusing on key differentiators as opposed to organisations that are at risk.

The important factor in regards to the research is that it has been conducted in the "business" rather than the "corporate" environment. As a result, we get a very good idea about some of the issues that are effecting small and medium sized businesses.

The paper identifies that small to medium sized businesses have "clear advantage" over the corporate world in responding to the challenges that face us and can create long term opportunities leading to sustained growth - despite the external environment.

To download the white paper - Click Here

Last financial year, the Fair Work Ombudsman commenced prosecutions against in excess of 50 companies for underpayment of wages and entitlements to their employees.

The simple fact is that this number is just the tip of the iceberg.  Many other employers have had to backpay employees as a result of underpayment.  Just check out the Ombudsman's media release page (Fair Work Ombudsman - Media Releases) and you will see the number of press releases on the subject.

Late last year, we worked with a business that had been underpaying their employees over a long period. By the end of the process, they had back paid their employees nearly $100,000 - quite a hit on a small business!

Now, this situation was one where they had innocently made an error in calculating a 40 hour week. The Ombudsman recognised this and no further action was taken.  However, there have been fines handed out to businesses and Directors where the Ombudsman found that taking further action was appropriate.

One example of a company based fine was where a franchisee from a major franchise group was fined $150,000 for underpaying staff.  Directors have also been targeted, with a recent prosecution fining individual directors a total of in excess of $130,000 for underpaying 47 staff.

Under the current system of Modern Awards and Transitional Arrangements, calculating how much you need to pay your employees can be confusing.  However, it is important to recognise that confusion, or not understanding your commitments is not an excuse for underpaying staff.  In the end, at best, you will be required to back pay them any entitlements they may have not received.

So what can you do to protect your business?  Well here are our recommended 5 Steps to Protect Your Business:

1. Understand and be compliant with the National Employment Standards.
2. Identify the modern awards and classifications that apply to your employees;
3. Make sure your employees receive compensation for actual hours worked, paying particular attention to ordinary hours of work, overtime and penalty rates, and shift allowances. 
4. Do you work a 40 hour week in your business?  Do you roll leave loading into a salary or hourly rate?  These type of arrangements (and others) come under the heading of "Award Flexibility" and you are required to ensure your employees are "Better Off Overall".   If you do not understand the requirements around Award Flexibility - seek advice. 
5. Make sure you keep the right records!  If you are investigated, you will need to demonstrate compliance.  To do that your record keeping will need to be accurate and in accordance with the requirements.  

If you need assistance in any of the above areas - then give us a call!  At People Smartz, we are more than happy to assist you!

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Did you know that 89% of employees in Australian Businesses were employed by companies employing 20 employees or less? (Australian Bureau of Statistics 8165.0 2010)

When you consider this statistic, you need to wonder why our industrial relations system is designed for 11% of the workforce!

It all comes down to some very important factors (in our opinion):

1. The employers of 11% of the workforce are bigger contributors to the political parties
2. The 11% of the workforce are the primary targets of our union movement; and,
3. The employers of 11% of the workforce are the major drivers of industry bodies supposedly in place to support business.

This morning I posted a quote on Facebook from John C Maxwell - 

‎"Life is 10% what happens to me and 90% of how I react to it."

Posting this particular quote was not an accident.  It is because I believe that in life, and in business, you have the ability to choose the way you react to a particular situation.

The current situation in regards to the World's and Australia's economy is creating a mindset within many business owners - one which says "here we go again" and "things are tough at the moment".

On the most part, I have to say that I agree with them!  Things are tough at the moment - but all that means is that now is the time to actively seek opportunity.

I would like to give you two examples of clients of mine who are reacting positively to the current environment and actively seeking opportunity.

One of them is operating a single person business. She has had a rough year with her home flooded in the January floods and many other things happening around her.  Yet, despite having to move home and her workplace 3-4 times, she has worked hard at grasping opportunities as they have been presented to her.  Despite working in an industry that is flat lining, she is one of the few of her peers who is able to predict a positive cash flow over the next 6 months.

The second client is a team of two young professionals who have looked at the economy, identified potential markets for themselves and actively worked those markets hard.  Where other companies in their industry are laying off staff, they are hiring.  Where other companies in their industry are lowering their rates, they are raising theirs. Where other companies are loosing customers, they are gaining them.  

Both these clients have one thing in common.  They have chosen to take a positive approach and grasp opportunities as they present themselves.  Importantly, they have worked hard at establishing relationships with other businesses to encourage a flow of work between the different businesses.  In short - their efforts are not only ensuring the success of their own business but also assisting others.

Over the past two or three weeks, I have met with many business owners who are "doing it tough" and I have shared these stories with them.  It is interesting to hear their feedback.  Many were continuing to do things they had done previously because they had worked previously, others were looking for the silver lining - one retailer told me that things would turn around over the coming months because "people will start getting their tax cheques".

Well, I'm sorry, people have been getting their tax cheques now for nearly 2 months!  And what happens if they decide to bank their cheque rather than spend it?

Waiting for a silver lining or continuing to do the same things does not change something.  Taking a positive approach and seeking a new way is - in other words choose to respond rather than choose to do nothing!

This is what we are encouraging our business coaching clients to do and everyone of them is achieving their targets. In the case of the two I have described above, we are re-writing the targets - they are not high enough!  On average over the last six months our clients have achieved an average increase of 62% in revenue during a period where "things are tough".

So if you own a small business, think about how you are reacting to the economic environment - are you taking advantage of the opportunities that are out there and taking a positive approach?

People Smartz is a Business and HR Coaching company specialising in assisting small to medium sized business owners.  Our aim is to assist Business Owners to achieve both their personal and business goals in a balanced and sustainable manner.  If you would like to discuss business coaching - Contact Us

Today I was almost involved in an accident in my car.

I was driving along the road, the last of three cars travelling along a suburban street.  Up ahead was a side street with one car waiting to turn out and another waiting to turn into it.

Unexpectantly, the first of the two cars ahead of me suddenly stopped to let these two cars exit and enter the side street.

Taken by surprise, both I and the driver of the second car braked hard.  Unfortunately, the second car was unable to stop in time and drove straight into the rear of the first car, which then crashed into both the cars turning.  Luckily, I was travelling far enough behind to avoid being physically involved and my car was undamaged - something I can not say for the other 4 cars involved.  

More importantly, no one was injured in the accident.

Now what has this got to do with a blog about business you might ask?

Well, it teaches us a lesson in why it is important to manage expectations in your business - when you don't, the unexpected happens!

We have road laws that control how traffic behaves, signs that indicate who is required to give way or stop, speed limits and many other things that are provided to ensure we are safe and consistent on the road.  Today's accident occurred (in my opinion), because someone decided that they would do the "unexpected".

Simply, he stopped to allow traffic that legally did not have the right of way to turn.  As he stated after, he thought he was "doing the right thing" and that "they could be waiting for ages".  

The problem was that this was not a behaviour those travelling behind were expecting - we were expecting him to follow the rules.  He hadn't even thought that others would be expecting him to do something different!

Now we have said before in this blog that the number one thing we see when asked to assist businesses with issues that develop with people is that there is an inconsistent approach to expectation management.  

When expectations aren't clear or not understood, then problems occur.  In the case of the car accident, the expectations were clear, but the understanding was not - the driver did not understand the need to stick to rules, he did not understand the effect that his actions may have (I am sure he does now!)

So there is a lesson to be learnt from today's event - how you deliver and ensure understanding of your and your businesses expectations is important in ensuring your business remains on track - without any "accidents".

This is were tools such as position descriptions, employment agreements, codes of conduct, processes and procedures become very important.  They lay out the basic "expectations" of the business in regards to behaviours, customer and peer interaction, business development etc.  If these are clear and easily understood, you are a long way along the track to ensuring a smooth running business.

In line with this is ensuring that you have strong systems to communicate formally and informally with your team.  This includes performance management systems and the way you pass on important information.  Regardless of the size of the business, these systems in themselves can be designed to improve both individual and business performance.

Equally important is the demonstrated behaviour of owners and managers of your business. By ensuring your own actions are line with these expectations, you are providing an example to your team.

If you would like to improve the performance of your team, first look to how you manage your expectations - For many years, we at People Smartz, have been assisting in ensuring that businesses run smoothly through the strong development of these expectation management tools and behaviours. Call us today to assist you!

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The HR Coach Research Institute has released its latest quarterly index.

The latest information coming out of the business sector indicates a significant drop in business confidence and a unique situation developing in terms of a two speed economy.  

The following summary is provided courtesy of the Institute:

"Alarmingly, this data was compiled before any firm Carbon Tax plan was released by the federal government, thus does not account for the affects of the proposed tax. In light of this, confidence and sentiment in the business sector will most probably not improve in the coming quarter.

Furthermore, job advertisements fell, as did job creation in the past quarter.

The multi-speed economy in Australia is presenting the business sector with the unique situation that has the economy growing whilst at the same time making business owners retreat into survival mode. As a result long term planning and strategy are suffering.

Interestingly employee satisfaction levels within the business sector are higher than those of business owner's satisfaction with their own business. This could exacerbate already strained relationships."

You can download a copy of this latest research from our website - HR Quarterly Index