csa national conference 2011 mitigating workplace relations risks for smes presented by : david...

CSA National Conference 2011

Mitigating Workplace Relations Risks for SMEs

Presented by : David Griffiths

Executive Director

CompliSpace Pty Ltd

© CompliSpace Pty Ltd 2011www.complispace.com.au

Presentation Outline

The Workplace Relations Function

Workplace Relations Risks

Implementing Workplace Relations Risk Management

Background & Context

From Shield to Sword – Demonstrating the Benefits

Background & ContextLegislative Change – The Big Picture

In 2010 the Federal Government passed 9042 pages of new lawTax Act doubled when Costello was TreasurerMore law written in 10 years to 2010 than in 100 since federation830 billion pages of new law by turn of century

“…Creating as much information every 2 days as we did from dawn of civilization to 2003…” Eric Schmidt, CEO, Google.

Background & ContextWorkplace Relations – Big Picture

Intro Fair Work Act – 3rd IR System in 4 yearsHarmonisation of Work Health & Safety Laws – Jan 2012Active regulator/s (FWO, WorkCover)Increase in stakeholder expectationsCompetitive employment market

Workplace Relations – The ChangesFrom 1 July 2009

Fair Work Act – Workplace Relations Act Repealed New Unfair Dismissal LawsNew Regulator – Fair Work AustraliaNew Enterprise Bargaining Framework, Rules for Right of Entry (Unions / FWO Inspectors) & Rules for Business Transfers

From 1 January 201010 National Employment Standards (NES)New System of Modern Awards

From 1 July 2010Modern Award Transitional Provisions Commenced

From 1 January 2011Paid Parental Leave CommencesNew Small Business Definition

From 1 January 2012Model Work Health & Safety Laws commence


What Has Not Changed?

Injury Management & Workers CompensationEqual Employment Opportunity / Anti-Discrimination LawsWorkplace Surveillance LawsLong Service Leave EntitlementsIndependent Contractor Laws


Fair Work – Successful Introduction?

December 2009 – Less than 50% of SME companies aware of or prepared for Modern Awards & NES Source: CompliSpace “The Road Ahead: HR Risk Survey”

June 2010 – More than 65% of SMEs are confused about Modern Awards & NES Source: EI Group.

November 2010 – More than 53% of HR managers see Fair Work Act having a negative impact on productivity over next 3 years Source: AHRI.


Why So?

It’s confusing!Lack of ResourcesIt won’t happen to meCost of Compliance v Risk of Penalty/Loss


Will it happen to me?

$60,000 back-pay for Newcastle workers17 Oct 2011A number of workers at Newcastle in regional NSW have been back-paid more

than $60,700 following intervention by the Fair Work Ombudsman.

$679,000 back-pay for 180 underpaid Japanese restaurant staff5 Oct 2011A restaurant operator in Sydney is reimbursing 180 employees a total of

$679,000 after it was discovered they were being underpaid.

Fair Work Ombudsman releases findings of investigation into Church of Scientology 16 Sep 2011The Fair Work Ombudsman today released the findings of a lengthy

investigation into allegations levelled publicly at the Church of Scientology (CoS) over its employment practices.


http://www.fairwork.gov.au/media-centre/media-releases/2011/10/pages/20111017-recovery-newcastle.aspx

http://www.fairwork.gov.au/media-centre/media-releases/2011/10/pages/20111005-sadamatsu-eu.aspx

http://www.fairwork.gov.au/media-centre/media-releases/2011/10/pages/20111005-sadamatsu-eu.aspx

http://www.fairwork.gov.au/media-centre/media-releases/2011/09/pages/20110916-church-of-scientology.aspx

http://www.fairwork.gov.au/media-centre/media-releases/2011/09/pages/20110916-church-of-scientology.aspx

Fair Work Ombudsman

In the 12 months to 30 June 2011:

22,523 complaint investigations, 6770 audits.

Recovered $26 million for 17,360 workers

Achieved penalty orders of $2.1million in 40 litigation matters

Doubled size to 52 offices nationally in previous year.


Work Health & Safety Harmonisation – Introduction Issues

What is it?

What has Changed?- PCBUs, Officers & Workers- Officers’ Due Diligence Duty – to ensure PCBU fulfills WHS

obligations- HSR Powers- Expansion of Consultation Obligations- Increase in Penalties


Work Health & Safety Harmonisation – Introduction Issues

Transition:– NSW, QLD, ACT, NT, Cth – 1st January 2012– SA, TAS, VIC & WA – varying times in 2012?

Other Key Issues:- Self Assessment Survey: www.complispace.com.au/are-you-ready-for-whs- Overlap with HR


http://www.complispace.com.au/are-you-ready-for-whs

Workplace Safety & HR

Smorgasbord of rights and actions– Unfair Dismissal– Unlawful Dismissal– Wrongful Dismissal & Breach of Contract– Anti-Discrimination– General Protections– Complaints to FWO & Workcover Authority

Protection lies in combination of HR AND Workplace Safety

Workplace Relations Reference Points

Your Organisation

Fair Work ActModern Awards

NES

ERMISO:31000

E.G. WHS Codes of Practice, Regulator Guidelines, Financial Services Industry, ASX Listed Companies, Telecommunications

Industry, Healthcare, Media etc.

OHS /OSH Act WHS Act

Workers Comp Acts

PRESSURE

ComplianceAS:3806

OHSAS/NZS 4801

Law & Regulation

s

Industry Codes + Guidance

Standards

The Challenge

Leadership

Organisational Structure

HR Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction

Training & Education

Probation

Reward and Recognition

Remuneration & Benefits

Promotion & Demotion

Discipline & Dispute

Resolution

Succession Planning

Exits

Performance Review Systems

Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management

TransitionRecruitment &

Selection

Development

Training & Mentoring

Workplace Safety

Legal Risk Management

Termination

Remedies

Modern Awards

Sham Contractin

g

EEO

Work Health & Safety

Employment

Agreements

National Employment Standards

Leadership


HR Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation





Resolution

Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


Workplace Safety

Leadership


General Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation





Resolution

Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


Workplace Safety

$?00,000

New Generatio

n Employee

s

Workplace

Productivity

Corporate Culture

The Working Family

Risks Beyond the Law

Work Lifestyle TrendsThe New Age Employee

Average Gen Y will have 19 jobs in their life time

Self Contained Worker - Lifestyle Strategy

Its not about Staff Retention Strategies

Leadership


General Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation





Resolution

Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


Workplace Safety

Work Lifestyle TrendsThe Working Family

60% of Families + Children U15 - Both Parent Working

92% of Working Parents Say Family Friendly Policies / Culture Important in Their Decision as to Where to Work Families at Work Survey

3.3 / 11 Million Australian Workers are Part Time

89% of respondents wanted/needed to work while fulfilling work and family responsibilities. Families at Work Survey

Leadership


General Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation





Resolution

Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


Workplace Safety

Work Place TrendsWorkplace Productivity

On avg 35% time spent in the workplace is unproductive

9% of GDP ($77 B) lost to inefficient work practices

Major Causes:Inadequate supervision 31%Poor management planning & control of work 30%Poor communication 18%

High performance teams require high performance HR infrastructure

Building A High Performance Team

Superstars

Good Workers

Under Performers

Leadership


General Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation





Resolution

Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


Workplace Safety

Work Place TrendsWorkplace Culture

2.5 million Australians have experienced workplace bullying.

Bullying costs workplaces between $10 - 36 Billion per year

Absenteeism, staff turnover, productivity, legal costs, loss of opportunity

Positive Energy V Negative Energy

Leadership


General Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation





Resolution

Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


Workplace Safety

New Generatio

n Employee

s

Workplace Productivit

y

Corporate Culture

The Working Family

HR Risk Management

Termination

Remedies

Modern Awards

Sham Contractin

gEEO

Workplace Safety

Employment

Agreements

National Employment Standards

Leadership


General Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation





Resolution

Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


OHS

Workplace Safety

Fundamental Processes for Implementation

Laws & Regulations

Organisational

Requirements

-WH&S Program- IM & RTW

Program- Work Safe

Policies, Safe Work Method Statements & Treatment Plans

- Short Form Policy Statements

- Safety Docs and Signage

-Consultation mechanisms (workers and PCBUs)- Paper v Intranet

v Structured Meeting

- Officers due diligence

-Structured Training (wokers / managers / officers)- HSR accreditation training

- Maintain records of every step- survey / feedback

mechanisms for continuous improvement (e.g. Incident reporting, suggestion box, internal grievance reporting, eeo reporting, toolbox feedback sessions)

Compliance Tasks

Risks

Obtaining Assurance

Identify and capture key risks & compliance obligations

Assign them to key task owners

Monitor performance of risks & tasks.

Control through escalation

Report and measure

Continuous improvement

Good Governance Framework

OHS & Injury Management

Programs

Communicate Effectively

Paper V Intranet ?

Training & testing critical for ensuring policies are understood and adopted.

Records maintained of all training & testing. Surveys conducted to assess effectiveness.

Identify and capture key risks & compliance obligations

Monitor performance of risks & tasks.

Control through escalation

Continuous improvement

Assign them to key task owners

Report and measure

Throw People at the Problem??

Organisational Content Integration

Demonstrating the Value

No Meaningful

Data

SHIELD

LegalCompliance

Risks Beyond the

Law

Positive ROI

SWORD

Running Blind

Basic Protection

Good Management

EXPOSED

Demonstrating ROIManaging Your Human Capital

Leadership


HR Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation




Discipline & Dispute Resolution

Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


Workplace Safety

No Data

Leadership


General Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation





Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


Workplace Safety

LegalCompliance

Leadership


General Policies

Communication

Record Keeping

HRIS

Leave

General Conditions

Benefits EEO

Internal Grievance

Recruitment

Contracts

Induction


Probation





Succession Planning

Exits


Termination

Cultural Values

Corporate Vision

Reporting

INFRASTRUCTURE

Change Management


Selection

Development


Workplace Safety

Risk Manageme

nt

Example of Return on Investment

HR Return On InvestmentNo. Employees 30

Avg Salary $ 62,000 Payroll $ 1,860,000 Total Revenue $ 3,720,000

Productivity Increase 20%

Increase in Revenue $ 744,000 ORExpense Decrease 20%

Reduction in Payroll $ 372,000

Positive ROI

Making the Change

CSA National Conference 2011

Mitigating Workplace Relations Risks for SMEs

David Griffiths

Executive Director

CompliSpace Pty Ltd

[email protected]

© CompliSpace Pty Ltd 2011www.complispace.com.au

csa national conference 2011 mitigating workplace relations risks for smes presented by : david...

Documents

background context legislative

model work health safety

pages of new law tax

modern awards nes source

years source

new small business definition

newcastle workers

hr risk survey