People Smartz Blog

People Smartz is proud to have been accredited as an approved consultant for the Jobs Assist Program.

The Queensland State Government is providing grants through approved Consultants for the delivery of advisory and mentoring services to businesses with 10 or more (full time equivalent) employees under the Jobs Assist programme.

The Department of Employment, Economic Development & Innovations (DEEDI) is providing the support intended to help businesses weather the current economic conditions. The financial loss and consequent unemployment caused by business failures is well understood. DEEDI is generously providing funding wherever such assistance is beneficial to sustaining businesses and the retention of employees.

To find out more about eligibility or to apply please contact us for more information today!

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The HR Coach Research Institute has released its latest quarterly research into employment confidence in the business sector.

The research indicates that positive signs are beginning to enter into the minds of business owners and preparations are being made for an economic recovery. Because of this there is a focus on short term business improvement strategies in readiness for the growth. 

The following is quoted from the results of the research:

"The Institute has identified that in anticipation of an economic rebound, businesses are moving into preparation mode.

The top 3 critical issues facing business have remained the same over the past year – Lack of Work or Sales, Cash-Flow and the Economic Climate.

With an improving expectation of growth in sales and profitability, businesses are looking to resource this trend with increased participation of employees as well as the recruitment of new employees. Concern in relation to finding and keeping talent could see an increase in wages bills – both through an increase in hours of part time employees, and rates of pay for full time employees. This may address the labour underutilization rates that have increased in the past year.

With a low expectation of investment in capital expenditure, businesses are maintaining a short term view in relation to return on investment strategies. This will drive business improvement strategies; building on core business rather than innovation.

As internal organisational confidence continues to decline, businesses will need to focus on internal processes. Businesses will most likely be addressing orientations, workplace and legislative policies in the coming months. This may trigger a resurgence of quality management systems in the market."

The full report on this research is available from the People Smartz Members area. To download - click on the link below:

HR Quarterly Index - October 2009

Laws regarding the use of Independent Contractors have been around for quite a few years now.  These laws are designed to provide increased protection against employers who try and avoid their employment obligations by using what are called "Sham" agreements.

Independent contractors run their own business and should be free to negotiate their fees and working arrangements.  They may provide their services to any number of clients.

Employees have set minimum entitlements (payment of wages, annual leave, personal leave etc) and are subject to the control and direction of their employer.

A "sham" agreement occurs when an employer deliberately disguises an employment relationship as an independent contracting arrangement in order to avoid paying an employee his or her entitlements.  It is possible that an employer who makes arrangements in this way could be fined up to $33,000. 

Many businesses I work with enter into independent contractors agreements in order to "benefit" both the business and the person doing the work. There is no intention to deceive or avoid obligations - just an intention to "do the right thing by all" by improving the return to the "employee" and to save the company money.

Unfortunately, this could be opening up a minefield for the business and the independent contractor.  If the arrangement has been made with the intention of avoiding obligations on the businesses part, it can result in fines, back taxes and other costly penalties.  There can also be tax ramifications for the independent contractor.

When reviewing whether the working relationship is one of employment or independent contract, the Fair Work Ombudsman will look at the circumstances.  Things such as how the work is performed, who bears the commercial risk, whether the work is results based or not, who sets the hours of work, whether the individual has a right to delegate work and who provides the equipment used are some of the many factors which can be taken into account.

I strongly recommend to my clients before entering into independent contractors arrangements that they closely review the relationship they are forming.  While the benefits of utilising independent contractors are significant, if not structured properly, they also introduce an element of risk to the business.

People Smartz is able to assist businesses with the process of employing independent contractors.  If you have, or are considering, independent contractors in your business - contact us today.

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The Australian Industrial Relations Commission has been releasing over the last couple of months the new Modern Awards to cover employment within Australia from 1 January 2010 .

The process is continuing and by the time January 1 comes along, all employees under $108,000 per annum will be covered by one of the new modern awards.  This includes professional occupations who previously had not been covered by an award - some of them under a new "catch-all" award created for the purpose of ensuring they are covered.

While not all the awards have been released, a list of the one's released so far (with a copy available for download) is available from http://www.airc.gov.au/awardmod/fullbench/awards.htm

I would strongly recommend that you review this list and download the award applicable to your industry.  From 1 January 2010, when the awards become effective, you will be required to be complying with the award applicable to your business.  The time to start preparing is now not on 31 December!

The businesses I am working with on preparing for the new awards vary in the amount of work they need to do to prepare for the changes.  It really does depend on the individual business.....

If you want to know more, as well as a suggested list of activities you can undertake to help yourself prepare for the changes - visit out website by clicking below and downloading our information sheet.

Australia's New IR Laws - Information Sheet

If you have any questions about the changes, please feel free to contact us or post a question on our forum page!  Our forum is also hosting a discussion on what effects you believe the new laws are going to have on your business - why not give us your thoughts today!

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The People Smartz Forum

It should come as no surprise that the latest research is indicating that Australian businesses are "under threat due to the increasing complex economic and labour market".

The latest white paper released by the HR Coach Research Institute talks to the maturation in professional services to Australian businesses in most professional areas (for example legal, accounting, sales and IT).  Titled "The Business of the HR Crisis", it discusses the effect a lack of effective people management practices is having over an estimated 651,000 businesses.

Some of the conclusions in the white paper include:

• The effects of uncertainty on the confidence of employers and strategic direction;
• The increasing management fatigue beginning to be seen due to down-sizing of workplaces
• The effect on small businesses of not being able to attract or retain employees
• The effect of struggling with paperwork and compliance
• The compounding effect of industrial relations and Health and Safety legislation changes.

The cost of labour is the biggest cost on most businesses.  This cost is exacerbated by the inability for business to have access to effect people management advice and solutions.  This white paper discusses this in detail and delivers a conclusion which is not only interesting but in line with our People Smartz philosophy that "People Drive Results".

I highly recommend downloading the full white paper and would be interested in hearing your comments through our forum. If you don't have a membership (it's free), please register.

> Download the White Paper

> The People Smartz Forum

Is recruiting simply a matter of picking the a person and filling a number in your business?

I have been working with a number of clients over the last couple of weeks helping them recruit for a new team member.  On each occasion, their initial request has been "we need to recruit a admin person (or sales person, or account manager or whatever).

When working with these businesses my first question is a simple one - "what opportunities does this vacancy present for you?".

A vacancy in a business is an opportunity to improve your business.  You have the opportunity:
 

• to look at your current practices to see if you can improve them,
• to look at your team and correct any weaknesses that may exist,
• to look at your structure and perhaps redefine the role to improve business development; and
• to revitalise your business through the introduction of new and different experience and attitudes.

One client I have been working with has a number of sales people in his team.  Over time the sales team has been performing well but there has been a drop off in lead generation.  My clients initial thought was to replace the sales person who is leaving with another sales person.  After I had worked with him for a period, he realised that he could replace the sales person with a person (or person's) who could concentrate on the marketing and lead generation aspects of the sales process.  The opportunity was there to correct what could have been a serious concern going forward and provide an avenue for further growth.

The above situation doesn't apply to every business.  In businesses with high turnover (such as hospitality) we are basically looking at a numbers game, but this doesn't mean an opportunity does not exist to improve your business!   Another client took advantage of the opportunity created by a vacancy to upskill her existing team and improve their overall ability to service the customer.  The overall effect was cost neutral but had a significant effect on return customers - a win for the business, the team members and the customer!

So next time you are looking at filling a vacancy in your business, turn the question around from one about numbers to one about opportunity - it could have some very positive effects.

As always if People Smartz can help you - let us know!

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Sometimes the fundamentals of business are the same whether you are looking internally or externally. Unfortunately sometimes we don't realise it!

We work hard on making sure our customers know what they can expect of us, when we will do things, when we will do it by, who will do it etc.  We put this information into writing and ensure that their expectations of us are clear.  If we have expectations of them, we make them clear as well - for example, when we expect them to pay the invoice by!  It makes sense and makes for good and happy customers!

The same can be said for our own team members.  Often when dealing with performance issues in business, what I see is a mis-understanding in regards to what is expected of the team member with a differing expectations on both sides of the equation.

So like with our customers we need to work on expectations with our team.  So how do we do this?

First, there is the basic aspects of establishing the expectations of their behaviours and performance.  These are the sort of things that are covered in employment agreements, position descriptions, policies and procedures. Not only do they cover the idea of what the job is, they also lay out the your expectations of what is acceptable in regards to dealing with other team members, management, customers and others.  To have these documents in place puts you one step ahead in the expectation management game.

The next step is ensuring you have good strong two-way communications structures in your business.  Regular meetings with your team and feedback sessions (formal or informal) are good ways to begin this process.  Having a regular, proactive and systematic performance management and development systems also aids your aims in this area by putting in place forward looking goals and targets for your team.

Ensure your team are aware of your goals for the business.  Unless it is commercially sensitive, don't leave them in the dark about where you are taking the business and make sure they know how they can help you achieve this. Think about how you can bring them into the game.

Finally - do you know their expectations of you??  What is it they want out of work?  What gets them to work every day?  By finding out about these expectations, you can find ways to encourage them to achieve their own goals - its not only about your success, its about their's as well....  

So think about how you can become an expectation manager with your team!

Contact us if you would like any information on how People Smartz can assist you and your team achieve your expectations!

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Over the last couple of days I have been assisting a business owner with a problem that had happened with one of his team members.

Now I will not be going into detail about the situation, that would be breaking confidentiality - but I will share one thing that occurred to me while I was with them.

Many years ago, I read (and attended a course on)  Stephen Covey's Seven Habits of Highly Effective People.  One of the seven habits was "First seek to understand and then be understood". 

Well, this situation would probably have been helped if both sides had taken the time to follow this habit!  I am not saying that either side was at fault, the truth is that if they had taken the time to understand what the other was saying, they would have found they were saying basically the same thing!  In other words they were disagreeing over something they agreed on!

Some sort of conflict can arise in any relationship - we all know that.  In business, when they occur and the business owner is involved they can take a momentum of their own if not handled promptly.  This was an example of one such occasion.

The first rule I explain to business owners in these situations is to keep their mouth shut and "listen".  This is followed by asking questions to ensure they understand what is going on in the mind of the team member and then act to correct the misunderstanding or incorrect performance.

This approach has the advantage of defusing situations, opening dialogue and giving team members the opportunity to feel they have been listened to.  It also gives the business owner (or manager) the ability to get their side understood in a more effective manner by helping them clear away the "noise".

It is an approach which is, in essence - "Seek first to understand and then be understood".  From my experience, I can tell you - it works!

People Smartz can assist you with your team, helping productivity and efficiency and introducing good "habits" to your organisation.  Contact us today to find out how we can help you and your team.

You will have seen me write before that the two things business owners need more than any thing else is cash flow and time.

Today's blog is all about the later - time.  Now in researching today's blog, I found many documents, reviews, white papers about time management - making lists or setting goals.  While it was tempting, this is not what this blog is about!

From my experience, business owners are always on the move, busy working on this part of the business or that, making everything work on a day to day basis.  This is how it was when he or she first started the business on their own and what they have become used to.

But in order to grow a business, the owner needs to move out of the day to day - if they do not devote some time to the future, then they will be forever stuck in today. 

Time is often the first area a coach needs to begin with a business owner.  For it is the creation of time that creates opportunities for business growth and increasing cash flow...

So how does a busy person find more time?  Well simply it is not possible to find more time!  It is a scarce resource with only a certain amount of it available - and the time you do have has many conflicting priorities pulling on it!

If time is scarce, then it is time to start looking for ways to make your use of time more efficient.  For many business owners, identifying the work they do which could be done by others (or not done at all) is often the first step in this process.  It is all about looking for the way your business can run more effectively, whether by using others, automating a process or just changing the way you do things.

This is not a hard process to begin yourself - if you can find the time to do it!  Bit of a Catch 22 isn't?

So if you want to grow and develop your business, start thinking about time - not in terms of lists but in terms of outcomes, effectiveness and how you can devote some of it to the future.  People Smartz Coaches can assist you in the process by providing you with an experienced perspective of your and your peoples activities. Contact us

This will be a short blog entry but probably the most important you will read!

Australia's new IR Laws come with a kick.  If you are non compliant you can be fined and forced to pay back pay, credit accruals, pay additional superannuation guarantee payments and additional pay roll tax - and that is only the start of the list!

Here are some examples of the ramifications if your business is found to be non-compliant:

• Non Compliance with Modern Award Conditions - a fine of $33,000 for a company for each breach plus the cost of back wages etc to the employee.
• Non Compliance with National Employment Standards - a fine of $33,000 for a company for each breach plus the cost of making up the breach to the employee.
• Avoidance of Employment Obligations (Sham Contracting) a fine of $33,000 for a company for each breach plus back taxes plus superannuation guarantee payments plus possible implications for payroll tax.
• Unfair Dismissal - back wages if found to be an unfair dismissal plus possible superannuation to the employee.  in addition, legal costs and lost opportunity costs in regards to time and effort to defend the claim.  Cost = many 000's of $$$.

The cost of being compliant is minimal compared to the costs of being caught out! 

Contact us today to arrange for a Free Compliance Assessment for your business.