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CSA National Conference 2011 Mitigating Workplace Relations Risks for SMEs Presented by : David Griffiths Executive Director CompliSpace Pty Ltd © CompliSpace.

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Presentation on theme: "CSA National Conference 2011 Mitigating Workplace Relations Risks for SMEs Presented by : David Griffiths Executive Director CompliSpace Pty Ltd © CompliSpace."— Presentation transcript:

1 CSA National Conference 2011 Mitigating Workplace Relations Risks for SMEs Presented by : David Griffiths Executive Director CompliSpace Pty Ltd © CompliSpace Pty Ltd 2011 www.complispace.com.au

2 Presentation Outline The Workplace Relations Function Workplace Relations Risks Implementing Workplace Relations Risk Management Background & Context From Shield to Sword – Demonstrating the Benefits

3 Presentation Outline The Workplace Relations Function Workplace Relations Risks Implementing Workplace Relations Risk Management Background & Context From Shield to Sword – Demonstrating the Benefits

4 Background & Context Legislative Change – The Big Picture In 2010 the Federal Government passed 9042 pages of new law Tax Act doubled when Costello was Treasurer More law written in 10 years to 2010 than in 100 since federation 830 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.

5 Background & Context Workplace Relations – Big Picture Intro Fair Work Act – 3rd IR System in 4 years Harmonisation of Work Health & Safety Laws – Jan 2012 Active regulator/s (FWO, WorkCover) Increase in stakeholder expectations Competitive employment market

6 Workplace Relations – The Changes From 1 July 2009 Fair Work Act – Workplace Relations Act Repealed New Unfair Dismissal Laws New Regulator – Fair Work Australia New Enterprise Bargaining Framework, Rules for Right of Entry (Unions / FWO Inspectors) & Rules for Business Transfers From 1 January 2010 10 National Employment Standards (NES) New System of Modern Awards From 1 July 2010 Modern Award Transitional Provisions Commenced From 1 January 2011 Paid Parental Leave Commences New Small Business Definition From 1 January 2012 Model Work Health & Safety Laws commence Background & Context

7 What Has Not Changed? Injury Management & Workers Compensation Equal Employment Opportunity / Anti-Discrimination Laws Workplace Surveillance Laws Long Service Leave Entitlements Independent Contractor Laws Background & Context

8 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. Background & Context

9 Why So? It’s confusing! Lack of Resources It won’t happen to me Cost of Compliance v Risk of Penalty/Loss Background & Context

10 Will it happen to me? $60,000 back-pay for Newcastle workers 17 Oct 2011 A 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 staff 5 Oct 2011 A 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 2011 The 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. Background & Context

11 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. Background & Context

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13 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 Background & Context

14 Work Health & Safety Harmonisation – Introduction Issues Transition: –NSW, QLD, ACT, NT, Cth – 1 st 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 Background & Context

15 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

16 Workplace Relations Reference Points Your Organisation Fair Work Act Modern Awards NES Fair Work Act Modern Awards NES ERM ISO:31000 ERM ISO: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 OHS /OSH Act WHS Act Workers Comp Acts Compliance AS:3806 Compliance AS:3806 OHS AS/NZS 4801 OHS AS/NZS 4801 Law & Regulations Industry Codes + Guidance Standards

17 The Challenge

18 Presentation Outline The Workplace Relations Function Workplace Relations Risks Implementing Workplace Relations Risk Management Background & Context From Shield to Sword – Demonstrating the Benefits

19 Leadership Organisational Structure HR Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

20 Presentation Outline The Workplace Relations Function Workplace Relations Risks Implementing Workplace Relations Risk Management Background & Context From Shield to Sword – Demonstrating the Benefits

21 Legal Risk Management Termination Remedies Modern Awards Sham Contracting EEO Work Health & Safety Employment Agreements National Employment Standards

22 Leadership Organisational Structure HR Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

23 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

24 $?00,000 New Generation Employees Workplace Productivity Corporate Culture The Working Family Risks Beyond the Law

25 Work Lifestyle Trends The 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

26 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

27 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

28 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

29 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

30 Work Lifestyle Trends The 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

31 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

32 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

33 Work Place Trends Workplace 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

34 Building A High Performance Team Superstars Good Workers Under Performers

35 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

36 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

37 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

38 Work Place Trends Workplace 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

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40 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

41 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety

42 New Generation Employees Workplace Productivity Corporate Culture The Working Family HR Risk Management Termination Remedies Modern Awards Sham Contracting EEO Workplace Safety Employment Agreements National Employment Standards

43 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring OHS Workplace Safety

44 Presentation Outline The Workplace Relations Function Workplace Relations Risks Implementing Workplace Relations Risk Management Background & Context From Shield to Sword – Demonstrating the Benefits

45 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)

46 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

47 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

48 Throw People at the Problem??

49 Organisational Content Integration

50 Presentation Outline The Workplace Relations Function Workplace Relations Risks Implementing Workplace Relations Risk Management Background & Context From Shield to Sword – Demonstrating the Benefits

51 Demonstrating the Value No Meaningful Data SHIELD Legal Compliance Risks Beyond the Law Positive ROI SWORD Running Blind Basic Protection Good Management EXPOSED

52 Demonstrating ROI Managing Your Human Capital

53 Leadership Organisational Structure HR Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety No Data

54 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety Legal Compliance

55 Leadership Organisational Structure General Policies Communication Record Keeping HRIS Leave General Conditions BenefitsEEO 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 Transition Recruitment & Selection Development Training & Mentoring Workplace Safety Risk Management

56 Example of Return on Investment HR Return On Investment No. Employees30 Avg Salary $ 62,000 Payroll $ 1,860,000 Total Revenue $ 3,720,000 Productivity Increase20% Increase in Revenue $ 744,000 OR Expense Decrease20% Reduction in Payroll $ 372,000 Positive ROI

57 Making the Change

58 CSA National Conference 2011 Mitigating Workplace Relations Risks for SMEs David Griffiths Executive Director CompliSpace Pty Ltd david.griffiths@complispace.com.au © CompliSpace Pty Ltd 2011 www.complispace.com.au


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