the HR HUB           June 2009 Edition

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A  Note from the CEO || Tough Times: Shifting From Management to Leadership

Hospitality Brewing Benefits for Tas Businesses

Tasmanian Labour Market Update || Industrial Relations Update

Staff News || Events || Social Environmental and Community Action (SECA) Update

Latest Tasmanian Market Trends || Star Candidates

 

 

A Note from the CEO

As end of financial year approaches we are seeing different mindsets in our clients.

Almost all owners and senior executives I talk with have been challenged over the past year by having to reduce expenditure, maintain business revenues and restructure workforces to match business activity levels.  All face an unknown market ahead, will it remain flat, drop further or are we seeing some signs of activity picking up?

 

Stephen Porter, CEO

From a HR perspective, while things in most organisations we deal with are tough now, many see an opportunity for a leaner and tighter/tougher business going forward.  A few common themes have emerged:

Hanging onto your best talent is a priority, let them know you need them, and use them to plan and action the current and future strategy.

Do you have the right people, and numbers, in the right jobs?  It’s a good time to look at functions and performance, where are you making money, where are there costs that can be moved or removed?

Maintain your organisation’s integrity/values (and ultimately brand), communicate directly and often about how you are going, explain change options and outcomes, get staff input, and professionally support any downsizing needed. 

Explore reducing people costs for 6 months through shorter hours, can some jobs be done part-time, review salaries and incentives, unpaid leave, will people work from home for less money?

Many of us have been through a few tough times before and know things will pick up.  Organisations need to keep that perspective and expect and position themselves for the upside to this economic downturn. And when it does pick up I can see in the HR area we will soon be back to a world of skill shortages in many industries, wage pressure, and less flexibility around employment arrangements as new IR changes come into effect July and Jan 1st.

Our better managed clients are taking action now and preparing for the recovery and challenges it will bring. Waiting until the recovery happens they say will be too late. 

When good talent appears they are working out a way to engage with them (contract or 3rd party hire), using temporary staff to keep productivity up without locking in permanency, they are spending on organisation development activities such as team work and leadership (less layers and more accountability), reviewing performance management systems (less paper work and more focus on personal performance matching business outcomes), making reward systems fit with organisation objectives (less me and more us), and shaping ECA’s under existing Awards now (it may not get easier).

At Searson Buck our business is no exception to others and we have the same challenges.  In fact probably more as we need to practice what we preach!  We appreciate your support and use of our services across the whole HR range, and in allowing us to be part of your answer to the GFC (Getting Financial Continuity?).

Article by Stephen Porter, Searson Buck Chief Executive Officer

For more information contact Stephen on 6223 3055.

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Tough Times: Shifting From Management to Leadership


Despite being removed from ‘mainland’ Australia, Tasmanians are still feeling the consequences of the economic recession. Companies are cost cutting by downsizing and redundancies have flooded the employment market with job seeking candidates. Many companies are experiencing recruitment freezes; only recruiting due to natural attrition. It’s a time when the right leadership is needed to push the company through the recession and back into prosperous times.

 

Rebecca Badcock,

Psychometrics Consultant

 

Often confusion surrounds the concept of leadership, with people believing management status will automatically lead to good leadership. However, this is not necessarily the case. According to leading leadership and change expert John Kotter (1990), management is more about coping with complexity. Good managers provide order and consistency by formal planning, designing organisational structures and monitoring results against original plans. Whereas, leadership is about coping with the changing environment by developing a vision and inspiring employees to overcome obstacles.


Currently, many organisations are working to business plans which were designed when economic times were prosperous, with little indication the economy would decline. Now, members of management teams are realising the need to take a step back and re-assess the vision for the future. This meaning it’s time for senior managers to adopt a leadership approach to inspire employees to overcome recession obstacles.

What Makes a Good Leader?


The business world is littered with stories of technically brilliant senior managers who experience difficulties relating to people, or handle stress poorly, often at the detriment of their careers (Goleman, 1999). Such managers climbed the ladder due to promotion criteria of technical knowledge and years of service; negating softer skills. However, research shows this to disadvantage organisations.


Psychologists have been studying the impact of soft skills in management positions for decades. For example in the 1940s, research found leaders who were able to establish “mutual trust, respect and a certain warmth and rapport” with their team members were more effective (Fleishman & Harris, 1962 cited in Cherniss 2000). In the 1990s, the soft skills concept was made-over, fleshed-out and re-coined "Emotional Intelligence". Defined as “a form of social intelligence that involves the ability to monitor one’s own and others’ feelings and emotions, to discriminate amongst them, and to use this information guide one’s thinking and action” (Salovey & Mayer, 1990. cited in Cherniss, 2000).


Its surge in popularity occurred when Daniel Golemen launched his first book, Emotional Intelligence, in 1995. Since this time corporate culture has been shaped by the concept emotions play a significant role in the workplace. Proven to be twice as important as technical skills or IQ in determining leadership success, Goleman (2004) believes “Without it, a person can have the best training in the world, an incisive, analytical mind and an endless supply of smart ideas, but still won’t make a great leader.” p 5.


Consequential research into high performing leaders conducted by global company Johnson & Johnson Consumer and Personal Care Group found a strong relationship between high performing leaders and emotional intelligence. Higher performing leaders were differentiated from average performers by achieving high scores on Self-Confidence, Achievement Drive, Initiative, Leadership, Influence and Change Catalyst (Cavallo & Brienza, 2001). The Johnson & Johnson leadership study findings were also supported by an analysis of more than 300 top-level executives from 15 global companies where emotional competencies of Influence, Team Leadership, Organisational Awareness, Self-Confidence, Achievement Drive and Leadership also differentiated high performers from average (Spencer 1997 cited in Cherniss, 1999).


Research into the primary cause for failure at executive level found links to deficiencies in emotional competence. The three main causes were: difficulty in handling change, inability to work well in teams and poor interpersonal relations (Cherniss, 1999).


Perhaps the most important foundation for an emotionally intelligent leader is Self-Awareness. Self-Aware individuals know their own strengths and limitations, understand the effect of their emotions (especially in stressful times) whilst possessing confidence to make sound decisions despite uncertainties and pressures. For example, a manager who knows stress brings out the worst in him can organise his time better to prevent others from feeling uncomfortable by his behaviour (Goleman, 2004). People with lower levels of self-awareness tend not to understand their own shortcomings let alone how they are perceived or their impact on others. If perceived poorly by employees, the likelihood of inspiring employees to take on a new vision of the future is limited.


The good news is Emotional Intelligence can be learnt. The learning process differs from that of acquiring technical skills as emotional competencies are engrained early in life and reinforced over several years (Cherniss, Goleman, Emmerling, Cowan and Adler, 1998). Although, by raising awareness through measuring emotional competence levels, discussing with an accredited facilitator, and focused attention over time individuals have encountered changes in behaviour.

How is Emotional Intelligence Measured?
 

Various tools have been used to measure emotional intelligence, however, the predictive validity has been unknown. This prompted the creation of the Emotional and Social Competence Report by Kendall Want Associates and SHL in 2004. Linked to Daniel Goleman’s original research, the report measures 20 competencies associated with Emotional Intelligence. Predictive validity is increased due to a forced choice format which is less prone to impression management. Kendall Want Associates (2004) purports that Emotional and Social Competence is embedded in personality, and consequently can be predicted through the administration of the occupational personality questionnaire, OPQ32.

Recommended reading: Best of Harvard Business Review on Emotionally Intelligent Leadership 2nd Edition.

References


Cavallo, K & Brienza, D. (2001) Emotional Competence and Leadership Excellence at Johnson & Johnson: The Emotional Intelligence and Leadership Study. Taken from the Consortium for Reasearch on Emotional Intelligence in Organizations (www. eiconsortium.org).
Cherniss, C. (2000). Emotional Intelligence: What it is and Why it Matters. Taken from the Consortium for Reasearch on Emotional Intelligence in Organizations (www. eiconsortium.org).
Cherniss, C. (1999). The Business Case for Emotional Intelligence. Taken from the Consortium for Reasearch on Emotional Intelligence in Organizations (www. eiconsortium.org).
Cherniss, C., Goleman, D., Emmerling, R, Cowan, K. & Adler, M. (1998). Bringing Emotional Intelligence to the Workplace. Taken from the Consortium for Research on Emotional Intelligence in Organizations (www. eiconsortium.org).
Goelman, D. & Boyatzis, R. (2008) Social Intelligence and the Biology of Leadership. Best of HBR on Emotionally Intelligent Leadership, 2nd edition.
Goleman, D. (2004). What makes a Leader? Best of HBR on Emotionally Intelligent Leadership, 2nd edition.
Kendall, I., & Want, R. (2004). Emotional and Social Competency Report: Manual and User’s Guide. North Sydney, NSW: SHL Australia Pty Ltd.
Kotter, J.P. (1990). What Leaders Really Do. Harvard Business Review, May-June 1990, pp 103-11.

 

Article by Rebecca Badcock, Searson Buck Psychometrics Consultant

 

For more information about how emotional intelligence is measured and the application in your workplace contact Rebecca on 6223 3055.

 

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Hospitality Brewing Benefits for Tas Businesses

 

Recession can’t beat the hospitality industry as discretionary spending on luxuries, like take away coffee, are showing they not only survive in recession, but thrive - and the benefits are being passed on to other sectors as well.

 

Banjo’s, the Tasmanian owned, national bakehouse/café franchise continues to experience strong growth across its 36 Tasmanian and mainland stores.

 

Rhiannon Carr,

Senior Recruitment Consultant

 

Jon Lister, CEO of Banjo’s says “Despite the current economic climate, Banjo’s Corporation continues to grow both in Tasmania and in the mainland states. We believe the quality of our products (all handmade daily on premises) together with our well priced value proposition resonates with our customers.”

“Banjo’s is anticipating continued future growth, despite the current downturn. We hold a niche place in the marketplace. Our unique bakery products, together with our relaxed dine in or takeaway service is provided at affordable prices. With our range and value we are confident that our customers will keep returning to our stores.”

“Businesses in hospitality like Banjo’s are also contributing to the well being of other service providers. For example, they are continuing to hire temporary staff.” says Searson Buck Senior Recruitment Consultant Rhiannon Carr. “Employment generally across the hospitality sector hasn’t seen much negative impact as most employees were already in temporary roles. What we have seen from an internal perspective is that staff are working harder to fill key operational roles because they have to look through many more resumes - there are still the same amount of candidates with the skills required as there were before, just more resumes to look through.”

For more information about the hospitality industry contact Steve Old, General Manager Australian Hotels Association on 03 62247033.

 

For more information about the job market contact Rhiannon on 6223 3055.

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Tasmanian Labour Market Update

 

A new $100,000 program, managed by Skills Tasmania, will help job seekers, retrenched workers and their partners in the Dorset Municipality to gain employment.

 

Premier and Minister for Education and Skills, David Bartlett, said the Dorset Skills Initiative aimed to help people in the region to up-skill, re-skill and gain employment.

 

 

 

Rob Howes,

Recruitment Manager


“We recognise that workers in the Dorset region have been hard-hit in the past few years and this program is a way of providing some assistance,” Mr Bartlett said.

“Eligible participants will be entitled to part or fully subsidised training that improves their potential for employment.

“Other costs such as travel, equipment, licence fees and incidentals will also be met.

“The funding is open to residents of the Dorset municipality and surrounding areas including retrenched workers and their partners, job seekers and their partners and workers looking for career change opportunities.

“It is also available to contractors who are no longer working because of business closure or downsizing and casual, seasonal and contract workers.

“The assistance is available regardless of the location of future employment.

“Training needs and the preferred provider of the training will be determined by potential employers and the applicant with support from Skills Tasmania where required.

“All training must begin before December 31 and will run until June 2010.

“Retrenched workers and job seekers can already access support through the Australia Government’s targeted initiatives and new employment services – Job Services Australia.

“The Dorset Skills Initiative will complement these programs to gain the best possible employment outcomes for the people of the region,” Mr Bartlett said.

For further details individuals should contact:

David Olden
Ph 6336 2372

Steve Cosgrove
Ph: 6336 2864

Employers with vacancies or potential retrenched workers can contact:

Tom Black
Ph: 6336 2891

Source: Tasmanian Government Media Releases Thursday, 9 April 2009

http://www.media.tas.gov.au/release.php?id=26811

 

For more information on the Tasmanian Labour Market contact Rob on 6223 3055.
 

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Industrial Relations Update

 

Of the 10 National Employment Standards (NES) the Federal Government aims to have commence 1st of January 2010, there have been indications that employers are most concerned by those covering the changes to workplace flexibility and family responsibilities.
 

What a year it has been in the workplace relations arena!  The Federal Parliament has now passed the Fair Work Bill and the Minister for Workplace Relations, the Honourable Julia Gillard, has declared Work Choices “finally buried”. 

Dain Cairns

IR Consultant

From 1 July 2009, the workplace relations system will change. The Australian Government argues that by implementing a new workplace relations system it will ensure fair workplaces around Australia, and that the new workplace relations system balances the needs of employees, the unions and employers.  Evidently, this is not the case and there are several industries that will suffer significantly because of the changes.  Arguably, with the economy in its current state, this is not the time to be placing such large burdens on employers. 

Protections from Unfair Dismissal for all Employees

The new system will establish laws regarding unfair dismissal that are fair to small business owners and their employees.  Employees of a small business will not be able to claim for unfair dismissal until after they have served a minimum employment period of 12 months, while for larger businesses, the minimum employment period is six months.  Until 31 December 2010, ‘small business employers’ are defined as employers with fewer than 15 full time equivalent employees.  After 1 January 2011, the fewer than 15-employee exemption will be applied by a straight head count of all employees.  

In addition, ‘operational reasons’ will no longer be a defence to a claim of unfair dismissal.  

Greenfields Agreements

The new system includes provisions for making Greenfields agreements. Specifically, it details that before a Greenfields agreement is approved, Fair Work Australia must be satisfied that the employee organisation(s) that will be covered by the agreement are entitled to represent the industrial interests of a majority of the prospective employees for that agreement.  Fair Work Australia must also be satisfied that it is in the public interest that the agreement be approved. 

Agreement-Making under the Fair Work Act

The transitional legislation indicates that the new bargaining framework will include the requirement that bargaining representatives comply with the good faith bargaining requirements (e.g. to attend and participate in meetings; to disclose relevant information in a timely manner; and to give genuine consideration to each other’s proposals).  An enterprise agreement that is submitted to Fair Work Australia within the transitional period (before 1 January 2010) will continue to be the subject to the “No-Disadvantage Test” compared against the current applicable and “un-modernised” relevant award.  This approval process will apply until the National Employment Standard and Modern Awards become effective on 1 January 2010.

Another notable new arrangement is that it will be possible for employees on ITEAs and AWAs to enter what is termed a “conditional termination agreement” with their employer.  This will allow them to participate in collective bargaining processes, including voting on the new collective agreement. If these processes are utilised and the new enterprise agreement is approved, the existing individual statutory agreement will automatically terminate.

Other Workplace News

In other news, the Tasmanian Government has given, in-principle, support to referring its Industrial Relations powers to the Federal Government, soon after South Australia announced similar plans.

The move, announced yesterday by State Workplace Relations Minister Lisa Singh following a Cabinet meeting, will make Tasmania the third state to refer its private sector Industrial Relations powers to the Federal Government.  Workers would benefit from access to modern awards with simpler, nationally-consistent wages, loadings and penalty rates that would be regularly updated, while the federal collective bargaining arrangements would be advantageous for low-paid employees.

Article by Dain Cairns, Searson Buck Industrial Relations Consultant

If you would like to ensure your business is meeting legislative requirements contact Dain on 6223 3055.

 

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Staff News

 

Sam Baker and Bree Mitchell from the University of Tasmania finished their time with us.

 

Amber Cooper, Para Consultant for our Recruitment team has taken on a new challenge to manage our Reception area.

 

For more information about staff contact Searson Buck on 6223 3055.

 

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Events

 

On Tuesday 12th May at 7.45am in Hobart His Excellency, the Honourable Peter Underwood attended Searson Buck’s unique and industry leading HR forum, A Seat at the Table, to share the career journey that led him to his current role as the Governor of Tasmania.

To ensure the foot stays on the People and Culture pedal in order for businesses to, not only survive, but thrive, during these difficult times, Searson Buck launched a series of HR forums aimed at assisting senior HR professionals in Tasmania with their own career development. The HR sessions, aptly named ‘A Seat at the Table’ aim to provide an education and information forum for HR professionals at senior level across Tasmania, and demonstrates the real value of HR and that it belongs at the table right alongside Finance and Marketing.

The participants get together each month to hear relevant and interesting speakers talk on a range of subjects. Speakers so far have included Graham Winter from Graham Winter Consulting, he was the head psychologist for the last 3 Australian Olympic teams and spoke about high performance leadership; and Geoff Officer, CEO the Donington Group who discussed career management for HR professionals.

Searson Buck believes that those businesses that thrive and survive will do four things:

1. Keep cashed up
2. Strategically acquire market share and successfully leverage this acquisition
3. Stay focused on providing the best possible customer experience
4. Nourish, support and look after their people.

No organisation can do, 1,2 and 3 above without 4.

 

For more information about events Searson Buck is involved with contact 6223 3055.

 

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Social Environmental and Community Action Update

 

 

Although SECA is officially in Winter hibernation for the next few months, staff were still able to raise money for the Cancer Council by donating to Searson Buck's regular End of Month drinks and holding an unofficial Biggest Morning Tea.

 

For more information about SECA initiatives contact Searson Buck on 6223 3055.

 

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Contact us

 

Searson Buck Pty Ltd

ABN 70 082 744 285

info@searsonbuck.com.au

www.searsonbuck.com.au

 

Hobart Office

183 Macquarie Street

GPO Box 1559, Hobart 7001
Ph: 6223 3055, Fax: 6223 3099, Workforce Fax: 6224 7833

Freecall: 1800 151 331

 

Launceston Office
30 Brisbane Street

PO Box 2020, Launceston 7250
Ph: 6333 3888 Fax: 6333 3899
launceston@searsonbuck.com.au

 

Burnie Office
Level 1 10 Wilson Street

GPO Box 1499, Burnie 7320
Ph: 6431 5155 Fax: 6431 5166
burnie@searsonbuck.com.au

 

Devonport Office
1st Floor, Bass House

21 Best Street, Devonport 7310
Ph: 6423 1311 Fax: 6423 1844
devonport@searsonbuck.com.au

 

Zeehan Office
129 Main Street, Zeehan 7469
Ph: 6471 6477 Fax: 6471 5089

 

 

 

 

Latest Tasmanian Market Trends

 

April

  • Employment fell to 236,600

  • Unemployment rate rose to 5.3%

  • Participation rate fell to 61.8%

Source: Trends (Tasmanian Labour Market Review April 2009)

 

For more information on the latest market trends contact Searson Buck on 6223 3055.

 

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Star Candidates

 

All our Star Candidates have been snapped up this month!



For more information about our Star Candidates contact Searson Buck on

6223 3055.

 

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