News & Resources - Virtual Human Resources

Making the Most of the Probation Period

Wed, 07 Sep 2011 00:00:00 -1100

A probation period or minimum qualifying period exists so that employers can determine if the new employee really is the right person for the job. Many job candidates exaggerate their abilities in order to impress the interviewer and gain an advantage over other applicants. While most people only claim moderate levels of greater ability there are some applicants who just blatantly lie. Even experienced interviewers can get caught out by a highly skilled liar.

It is also true that job applicants rarely include referees who dislike them or have been critical of their performance. How does a person calling referees even know they are speaking to a Production Manager and not a mate from down the road? Referees are only useful for double checking information on a resume to see if the applicant’s claims can be verified. Often people neglect to inform their referees of their exaggerations.

While many job applicants are honest and are able to perform the job well; some are not.
Even those who have worked in the same position in another company may not be able to perform at the level expected in their new position. For example some employees possess the title manager but have never really had the responsibilities of a manager. The title was simply a courtesy title or one incorrectly applied.

For all these reasons it makes sense to view the probation period as an extension of the recruitment process. The job is effectively a temporary position until the qualifying period is completed. Towards the end of the qualifying period management has to determine whether the new employee is capable of doing the job to the standards expected in that company.

To be fair to the new employees, this situation should be clearly stated during the final round of interviews. Even though employees are used to seeing a probation clause in an employment contract, few companies put it into practice. A lack of disclosure prior to them resigning from their previous position, can unnecessary distress the terminated employee.

While a probation period is a useful way to determine if a person is a good fit for a company, it should never be used as a substitute for effective interviewing and assessment methods. It is important not to overuse the opportunity as it can have a negative impact on company morale if people are being regularly dismissed. However if you have a new employee who you suspect is going to be a future nightmare; dismiss them while you still have the opportunity.

It is important to be aware that even though the minimum qualifying period means the dismissed employee cannot make an unfair dismissal claim, they still have some legal recourse through the FairWork adverse action clause as well as unlawful dismissal. This means that even during the qualifying period employers should ensure there are no breaches of anti-discrimination legislations; no victimisation of employees who are seeking to make use of any workplace rights or entitlements, and that all OHS requirements are met.

When is a Key Performance Indicator Counter-Productive?

Fri, 01 Jul 2011 00:00:00 -1100

Key Performance Indicators are used in almost all organisations over a certain size. Generally they are viewed as being a reward for increasing revenue or reducing overheads. However such a system can sometimes result in generating behaviours that undermine other equally important goals within the organisation. Some of these other goals could be: investment in growth and expansion; research and development; delivery of a quality product or service; employee skill levels; customer satisfaction; and even long-term profit.

Over the years we have witnessed a number of organisations rely on rewards programs that were not really serving their overall best interests. Perhaps some of the tales listed below will be familiar to you as well.

A government organisation had set KPI’s based on how quickly various claims could be processed by each claim handler. This then encouraged employees to neglect vital steps in the procedures simply so they could churn the documents through more quickly to meet their performance targets. Correcting these errors resulted in a lot of wasted time.
A large private organisation had published a Code of Conduct which they strongly promoted to new employees. However the KPI’s set for these individuals undermined the effectiveness of this Code. While the directors claimed they valued team-work highly; their reward system in the mean-time stimulated competitive and obstructive behaviours.
A medium sized company set up a generous reward system for their customer service team to encourage retention and reduce absenteeism. Unfortunately the targets were set so high that almost no bonus was ever awarded. This resulted in increased turnover and absenteeism as dissatisfaction with the reward system spread.
A multi-national organisation provided an annual bonus payment to all employees based on company profits. While this proved to be an effective reward system for employees who could directly impact the profitability of the business; it merely served to frustrate employees in lower level positions because it highlighted how little influence they had over the outcomes.
A small company was providing intimate rewards in recognition for loyalty; such as birthday leave, dinner vouchers and additional sick leave during personal crises. These rewards however, gradually became a major burden when the company expanded. Suddenly, a personal gift to a few friends ended up becoming expensive salary extras for forty employees, many of whom were completely unknown to the directors.
The worst case of confused organisational purpose and the reward system applied occurred in an organisation whose primary purpose was to make legal judgements on specific types of cases. The adjudicators were rewarded for processing their cases quickly and for having very few re-hearings. As a consequence applications for rehearing were routinely denied regardless of evidence or logic. The adjudicators exceeded their performance targets but in the process undermined the entire purpose of the organisation.

Establishing a totally effective reward system requires all organisational goals, missions, purpose and policies be factored into the plan. This takes a great deal of planning and consultation which can be very time-consuming.

What type of Management Training is Suitable for our Organisation?

Mon, 21 Mar 2011 00:00:00 -1100

Providing training opportunities can be difficult for many smaller organisations. They often do not have large training budgets and rarely their own training department. Many managers and owners in smaller companies learn about managing employees on the job. The trouble with this method is that it often leaves gaps in a person’s knowledge level or they could be learning information that has become outdated and is no longer relevant.

One of the biggest obstacles to providing management training in smaller organisations is the difficulty in provided the manager with sufficient time-off to attend training sessions. Frequently the individual will be the only person in the organisation who can perform their job, so when they attend training there is no-one who can fill in for them. Even when they do manage to attend a training program they are frequently interrupted by phone calls or their mind is pre-occupied with work concerns. This then prevents them from fully participating in the training sessions.
For this reason many small to medium sized companies are more interested in short management courses rather than committing to long term certified management courses such as frontline management. If managers do obtain certified training they are usually expected to do the study in their own time, even when the company pays for the course.

There are many short courses in management available but the content in such courses may not provide what the individual is really seeking. Some management courses focus heavily on leadership skills and assume that the practical business of management is already known. It pays to check the actual content of a course to ensure it will contain material that is relevant to your situation.

Since most small companies have to seek an external provider to conduct their training, they will end up with a trainer who will have little knowledge of that specific company. They will not know the various personalities, the culture of the organisation or any difficulties that the company may be facing. This makes the training provided very generic. However if the training is provided by the same consultant who is already working with the company then the training can be tailored to the company’s specific requirements. It also means that the varying skill levels of different managers can be taken into account.

Pre-Employment Medical Checks

Mon, 21 Mar 2011 00:00:00 -1100

The main purpose for conducting a pre-employment medical check is to find out if an applicant has a pre-existing injury. Having an injury does not necessarily mean the applicant should be rejected. This only needs to occur if the injury would prevent the applicant performing the job safely to the required standard. A medical may also specify work limitations that need to be applied to ensure the injury does not worsen over time.

If the injury is not directly relevant to the position, a medical should still occur so the extent of the damage can be documented before the applicant begins work with the new company. This record of the extent of the injury has the potential to protect the employer from workers compensation claims as they will be able to demonstrate that the injury occurred elsewhere. If it can be shown that the injury is no worse than it was when the applicant began work, then the new employer will have a reasonable objection to the claim. The worker however will still be eligible for benefits but the new company would not be held responsible for the injury.

A common question with pre-employment medicals is ‘should they apply to all employees or only to applicants applying for certain types of work?’ Medical examinations can be intrusive as well as time-consuming. Many organisations only require that medicals be conducted for positions where the employee will be: working at heights, in confined spaces, on heavy machinery, doing repetitive tasks, frequently driving or working in a high stress position. However, other companies insist that all final applicants have a pre-employment medical regardless of the work to be performed.

Another way to reduce the need for medicals is to include a question on the employment application form requesting information about any pre-existing injury or illness. In this case only those who admit this situation will be sent for a medical. If the applicant should withhold information requested on the application form then this fact could be used at a later date as grounds for dismissal. The same would occur if the applicant minimised the extent of the injury or denied they had any specific limitations that would prevent them from safely performing the necessary tasks.

Anti-Bullying Strategies

Fri, 10 Dec 2010 00:00:00 -1100

Workplace bullying can occur even in the most progressive of companies. This is because most negative behaviours occur in secret. This makes it difficult for managers and business owners to feel confident that they have eliminated the risk completely.

Despite this difficulty there are a number of preventative strategies that can be adopted to help reduce the frequency and severity of the problem. These are listed below:

Ensure all employees are aware of the company’s anti-bully policy.
Provide compliance training to all employees, especially supervisors and managers. This training should teach people how to recognise typical signs that bullying may be occurring in their workplace.
Promote a climate that encourages open communication at all levels of the company.
Have a discipline and grievance procedure in place where all managers and employees have ready access.
Document all incidents of even a minor nature so a pattern of behaviour can be demonstrated.
Ensure that complainants are protected from further victimisation both during and after the complaint process.
Always ensure all parties are treated fairly and are given the opportunity to tell their side of the story.
Discipline offending employees immediately regardless of the seniority of the person holds within the firm.

Virtual Human Resources have a full range of policies and procedures available for companies to implement. VHR can also provide training, advice, mediation services to assist managers and owners navigate this difficult area of employee relations.

For more information visit our website: www.virtualhumanresources.com.au or email enquiries@virtualhumanresources.com.au or phone: 02 99802974.

Paid Parental Leave 2011

Fri, 10 Dec 2010 00:00:00 -1100

The government funded paid maternity leave program begins in January. It is intended to be in addition to any current paid maternity leave that a company may currently be offering to employees; it is not a substitute. Recipients of this payment will no longer be entitled to receive the government baby bonus or claim family tax benefit B.

The payment is paid at the minimum wage level which is currently $543.78 per week and it continues for 18 weeks. This is a total payment of $9,792. At present the employer is not expected to contribute to the scheme but they may need to administer the payments through their payroll system.

Employers need to update their maternity leave policies to include information on this government support. Virtual Human Resources clients will receive their updated documentation in Mid December 2010. If you or an employee would like further information about this payment then details are available from the following website www.fahcsia.gov.au

Increased WorkCover Fines for Managers

Fri, 10 Dec 2010 00:00:00 -1100

The new national OHS system is due to become effective in January 2012. Among the changes are significant increases in fines that can be issued to individual employees and company directors. This means that the requirement to provide a safe workplace becomes extremely important, not just for the company, but for individual Supervisors and Managers.

At present in NSW the maximum penalty for an individual for a first offense is $55,000. A second offence can be as high as $82,000 or up to 2 years in gaol. Under the new systems the maximum penalties have increased dramatically for individuals. A category 1 offense has a maximum penalty for company officers of $600,000 and/or 5 years imprisonment. Employees can attract a penalty as $300,000 and /or 5 years imprisonment. Categories 2 and 3 have lower maximum penalties but all are much higher than those specified in the current NSW Act.

This makes WorkCover claims that occur as a consequence of bullying or harassment behaviours very concerning, especially if the director or manager was aware of the situation and did not take action to remove or contain the problem. Individual managers may have to begin insisting that the companies they work for deal with these issues properly as a way to protect themselves from potential liability.

Even though these laws do not come into effect until January 2012 managers and owners should not wait until then to put appropriate OHS strategies into places. It would be ideal that all documentation, safety audits and employee training was completed during 2011 so that when the new penalties come into effect your company will be fully prepared.

Virtual Human Resources is able to assist you with this implementation process. For more information visit our website: www.virtualhumanresources.com.au or email enquiries@virtualhumanresources.com.au or phone: 02 99802974.

Bullying in the workplace - OHS issue!

Mon, 29 Nov 2010 00:00:00 -1100

Bullying in the workplace It is the responsibility of the employer to provide employees with a safe work environment. Employers have a duty of care and failure to do so could have a negative impact on the business, namely legal consequences as well as an impact on the reputation and image of the company . In addition to these, bullying could lower productivity, employee morale and could harm individuals on a personal level, affecting their family, health and general well being. It could also impact the entire team or department as it lowers cooperation and communication affecting teamwork. There are many actions that can be taken to avoid and address bullying in the workplace if it is happening. These include: • Code of conduct to establish appropriate behaviour. • Policies and procedures to address bullying. • Effective communication and raising awareness about what constitutes unacceptable or bullying behaviour. • Monitoring the workplace for signs of bullying and investigating all complaints. These include grievances, complaints, resignations, absenteeism. • Training managers and supervisors on policies and procedures and empowering them to tackle the issues. VHR can assist you with by: • Auditing your policies and procedures to ensure that they in line with the current legislation. • Advice and support in handling all workplace bullying • Ensure that your policies and procedures are effective. • Drawing up the necessary policies and procedures in support of a safe workplace.

Paid Parental Leave

Wed, 22 Sep 2010 00:00:00 -1100

Paid Parental Leave: What is it, Who can Apply and as an Employer what are my obligations and how will it impact my business

The new law allows eligible parents to take up to 12 months unpaid leave. The eligible parent will get 18 weeks leave paid at the federal minimum wage rate. Either parent can take the unpaid leave; this depends on who is the primary carer of the child.

Adoptive parents are also eligible for this if the child is under18 years of age.

Same sex couples now have access to parental leave entitlements.

To be eligible the employee must have at least 12 months of service before the birth or adoption of the child.

Casual employees who have been employed on a regular and systematic basis during a 12 month period with a reasonable expectation of continuing employment is also entitled to paid parental leave.

Employees can request a further 12 months of leave (up to two years). Four weeks of written notice is required and the reason for this needs to be clearly spelled out. Employers are expected to respond within 21 days, and may refuse on “reasonable business grounds.” Should employers refuse they need to state their reasons for refusal. (Virtual HR can assist you with the process and provide you with the necessary templates and letters)

Fathers are allowed the same leave entitlements where they have the responsibility for the care of the child. This must not overlap with partner’s parental leave

Disputes

Should employees feel discriminated against in relation with parental leave or flexible working arrangements they can make a complaint to the Fair Work Ombudsman or start court proceedings using the “adverse action” under the fair work act.

There are checklists available as to what the employee needs to do for example an employee is required to give at least 10 weeks written notice of start and end dates. Should there be any changes to these dates the employee is required to give at least 4 weeks prior written notice.

There are checklists available as to what the employer needs to do in terms of notice periods etc.

Virtual HR can assist you with the necessary documents and the process

Impact on your business

It is wise to communicate with your staff as to the amount of prior notice that needs to be given. In certain positions which will be difficult to fill it is good to let staff know that a longer notice period would allow a smoother operation for the business and would be greatly appreciated

As employers it is good to consider in advance the likely impact this would have on the business. How many of your employees are likely to take leave and how are you going to fill their role for maybe a two year period. How will the employee be reintegrated back to work and what flexible work arrangements may be requested and how can the company be supportive to the employee?

Should you have any questions or require any assistance Virtual HR can assist you. This articles deals very broadly with this topic. Individual circumstances and needs differ so for advice on a specific situation or need please contact us

Individual Flexibility Agreements

Wed, 18 Aug 2010 00:00:00 -1100

Individual Flexibility Agreements

The Fair Work Act 2009 , allows certain terms to be varied in order to meet the needs of individual employers and employees. This allows the company to increase it's flexibility in achieving it's goals as well as the specific needs of individual employees allowing them to achieve greater work life balance.

What are the employer's responsibility?

The employer is required to ensure that the employee covered by the individual Flexibility Agreement (IFA) is better off overall on the IFA than the award or enterprise agreement entered into.

It is the employer's responsibilty to ensure that an employee has genuinely agreed to the IFA.

IF the IFA is not made in accordance with the Fair Work Act the company may incur penalties of up to $6,600 for individuals or $3,300 for body corporate.

An employee can terminate an IFA if they believe that they are disadvantaged and can take action for compensation if that is the case.

What matters may be varied in the awards?

Arrangements for when work is performed such as working hours
Overtime rates
Penalty rates
Allowances
Leave Loading

Employers need to have a process in place that allows for consultation regarding flexible work practices. Virtual HR can assist you by providing the necessary contracts (templates) which include the relevant flexibility terms, and ensures that you are compliant. We also provide the necessary appendages to accompany the contracts.

News & Resources - Virtual Human Resources

Making the Most of the Probation Period

When is a Key Performance Indicator Counter-Productive?

What type of Management Training is Suitable for our Organisation?

Pre-Employment Medical Checks

Anti-Bullying Strategies

Paid Parental Leave 2011

Increased WorkCover Fines for Managers

Bullying in the workplace - OHS issue!

Paid Parental Leave

Paid Parental Leave: What is it, Who can Apply and as an Employer what are my obligations and how will it impact my business

Disputes

Impact on your business

It is wise to communicate with your staff as to the amount of prior notice that needs to be given. In certain positions which will be difficult to fill it is good to let staff know that a longer notice period would allow a smoother operation for the business and would be greatly appreciated

Individual Flexibility Agreements

Individual Flexibility Agreements

What are the employer's responsibility?

What matters may be varied in the awards?

Virtual HR can assist you to ensure that your contracts are always updated and fully compliant.