csa national conference 2011 mitigating workplace relations risks for smes presented by : david...
TRANSCRIPT
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
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Fair Work Act – Workplace Relations Act Repealed New Unfair Dismissal LawsNew Regulator – Fair Work AustraliaNew Enterprise Bargaining Framework, Rules for Right of Entry (Unions / FWO Inspectors) & Rules for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
Background & Context
What Has Not Changed?
Injury Management & Workers CompensationEqual Employment Opportunity / Anti-Discrimination LawsWorkplace Surveillance LawsLong Service Leave EntitlementsIndependent Contractor Laws
Background & Context
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
Why So?
It’s confusing!Lack of ResourcesIt won’t happen to meCost of Compliance v Risk of Penalty/Loss
Background & Context
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.
Background & Context
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
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
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
Background & Context
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
Presentation Outline
The Workplace Relations Function
Workplace Relations Risks
Implementing Workplace Relations Risk Management
Background & Context
From Shield to Sword – Demonstrating the Benefits
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
Presentation Outline
The Workplace Relations Function
Workplace Relations Risks
Implementing Workplace Relations Risk Management
Background & Context
From Shield to Sword – Demonstrating the Benefits
Legal Risk Management
Termination
Remedies
Modern Awards
Sham Contractin
g
EEO
Work Health & Safety
Employment
Agreements
National Employment Standards
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
Leadership
Organisational Structure
General 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
$?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
Organisational Structure
General 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
Leadership
Organisational Structure
General 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
Leadership
Organisational Structure
General 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
Leadership
Organisational Structure
General 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
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
Organisational Structure
General 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
Leadership
Organisational Structure
General 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
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
Leadership
Organisational Structure
General 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
Leadership
Organisational Structure
General 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
Leadership
Organisational Structure
General 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
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
Organisational Structure
General 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
Leadership
Organisational Structure
General 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
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
Organisational Structure
General 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
OHS
Workplace Safety
Presentation Outline
The Workplace Relations Function
Workplace Relations Risks
Implementing Workplace Relations Risk Management
Background & Context
From Shield to Sword – Demonstrating the Benefits
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
Presentation Outline
The Workplace Relations Function
Workplace Relations Risks
Implementing Workplace Relations Risk Management
Background & Context
From Shield to Sword – Demonstrating the Benefits
Demonstrating the Value
No Meaningful
Data
SHIELD
LegalCompliance
Risks Beyond the
Law
Positive ROI
SWORD
Running Blind
Basic Protection
Good Management
EXPOSED
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
No Data
Leadership
Organisational Structure
General 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
LegalCompliance
Leadership
Organisational Structure
General 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
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
CSA National Conference 2011
Mitigating Workplace Relations Risks for SMEs
David Griffiths
Executive Director
CompliSpace Pty Ltd
© CompliSpace Pty Ltd 2011www.complispace.com.au