the HR NEWS          

 October 2009 Edition

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A  Note from the CEO

Pre-employment assessments must be relevant

National Code of Practice for the Building and Construction Industry

Worried employees working longer hours

When you can't keep the people, keep their knowledge

Pitfalls for the "uninitiated" using psychometric testing

Latest Tasmanian and National Statistics

 

 

Introduction from the CEO

 

 

 

 

 

 

 

 

 

 

Stephen Porter, CEO

 

 

With the first quarter of the financial year behind us the Recruitment and HR sector is showing signs of strength in terms of increased demand for people and services.

 

 

The 'continuing' shortage of suitable people for job vacancies we are handling is a major issue and we routinely get calls from companies who have tried to recruit for a role without success. 

Local commentators are highlighting the low participation rate as a contributing factor on top of poor education levels producing a limited pool of suitable people to invest training and development into, and demographics that show the rapidly aging profile of our population.  Many of the appointments we are making are with people from outside Tasmania who are looking for the lifestyle we can provide, local people willing to work on contract or shorter hours, or from passive job seekers we have contact with.

 

I said in our last report "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."

 

Wage pressure and modern awards/ enterprise agreements with set requirements are yet to have full impact but we anticipate calendar 2010 will see that happen.

Our Donington branded "career management and outplacement" business has had a very strong 12 months here and we are working with clients across the state.  Interstate reports from Donington suggest companies moved quickly to reduce staff and are now holding or starting to rebuild numbers.  We see a six month lag here but, with the skills shortage, hanging onto your best talent must be a priority as is appropriate development plans for people.  Forward looking clients are engaging with recruitment firms now to plan future needs and secure preferred and priority service arrangements to help ensure they can secure the talent they need as the economy continues to improve.

Following here are a number of articles from our staff and third parties on topics I trust you will find of interest.

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Contact us

 

Searson Buck Pty Ltd

ABN 70 082 744 285

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

info@searsonbuck.com.au

 

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

 

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

burnie@searsonbuck.com.au

 

 

 

 

 

Latest Tasmanian and National Statistics

as of July

 

Population Tas (projection) 2009 - 500542

Workforce - 234300

Participation rate 60.7%

        (Aust 65.3%)

Unemployment rate 4.8%

        (Aust 5.9%)

Avg weekly earnings, May $787.40

        (Aust $923.4)

 

Source: Trends (Tasmanian Labour Market Review April 2009) DCAC

 

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

 

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Pre-employment assessments must be relevant: Tribunal From Recruiter daily 

Diane Rumley, Manager Workforce

 

This article highlights the need to be careful in using any pre-employment assessments and to ensure they are specific to the job.

 

Medical and other assessments carried out during the recruitment process must be relevant to the job, a tribunal has highlighted in compensating an unsuccessful candidate for discrimination.

The candidate at the centre of the case had been driving buses since the 1960s for a SA-based transport company Serco. He, along with about 600 other former Serco employees, applied to work as a bus operator with the new contract-holder, Torrens Transit.

The recruitment process included a functional capacity assessment for all applicants who had previously made a workers' compensation claim or reported an injury, and involved exercises to test the applicants' strength, range of movement and fitness. The occupational therapist conducting the assessment found the driver failed to meet the inherent physical requirements for the position, and Torrens Transit advised him that his application was unsuccessful. Specifically, he had a restricted range of movement, low grip strength and poor back fitness.

But the Tribunal found Torrens Transit had no information or advice that allowed it to make such conclusions.

It noted that the results of the tests were reported in an "ambiguous" manner, and that the assessors didn't take into account that at the time of the assessment the candidate had a knee-sprain injury that caused some of his limitations, but from which he had fully recovered shortly after.

And importantly, the employer had not established a connection between the tests and its conclusion that the driver would not be able to work without endangering people or respond to emergencies.

The Tribunal ordered Torrens Transit to pay the driver compensation for his lost earnings and expenses (amounting to $27,000).
 

For more information contact Diane Rumley on 6223 3055.

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National Code of Practice for the Building and Construction Industry

 

 

 

 

 

 

 

 

 

Dain Cairns, HR Consultant

 

 

For many businesses working in the Building and Construction Industry, the Australian Government’s National Code of Practice (the Code) and Guidelines (the Guidelines) may not have been a big consideration in the past, however with the Economic Stimulus Package injecting a large amount of funds into the Building and Construction Industry, the Code and Guidelines have become a major factor effecting nearly all businesses. 

 

All businesses who have applied, tendered, contracted, or sub-contracted for a Government project in the Industry are required to be compliant with the Code and Guidelines. 

What are the Code and Guidelines?

 

The Code and Guidelines outline the responsibilities of Australian Government agencies as clients, and the responsibilities of project managers, contractors, subcontractors, consultants, related entities, industrial associations and employers in the construction industry.

The Guidelines have recently been revised to reflect the introduction of the Fair Work Act 2009 and suggestions made by the Honourable Murray Wilcox QC in his recent report, Transition to Fair Work Australia for the Building and Construction Industry.  Extensive consultations have also been undertaken by the Government with all major stakeholders including employee and employer associations, major contractors as well as state and territory governments.

The Government believes the Guidelines will assist in encouraging lawful behaviour in the industry for the benefit of all participants and will support productivity in the sector. 

What does this mean for me?

If you don’t want to miss out on your share of the Economic Stimulus Package through sub-contracting to any Federal Government project, then you need to be compliant.  Searson Buck,  through our Workforce division, is able to on-hire staff to your workplace for these types of projects as we are Code Compliant. 

For more information contact Dain Cairns on 6223 3055.


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Worried employees working longer hours

 By: Rhiannon Elston - June 24, 2009

Job insecurity is driving workers in Australia to clock up extra hours to stay employed according to new research.

A survey of 436 people by recruitment firm Robert Walters found 53 per cent of those polled in Australia were coming in earlier and working back later than they were before the economic downturn.

Of those who said they were now working more hours 40 per cent claimed to be putting in an extra eight to ten hours per week.

The global study included results from 18 countries and found Australian employees were putting in an average amount of overtime compared to worldwide results.

Australian workers are better off than US workers, with 69 per cent of those surveyed in the United States working overtime thanks to the recession.

Workers in France and Switzerland were less affected by the downturn, with more than 65 per cent of each workforce claiming to work the same hours as usual, the survey shows.

James Nicholson, managing director of Robert Walters Australia, says some of the respondents were working longer hours because they had taken on the workloads of former co-workers who had left through redundancies or resignations from roles they were not replaced.

“Many people feel that by putting in more hours, they will be less likely to lose their jobs should further cost cutting prove necessary,” says Mr Nicholson.

For workers, the long term impact of too much overtime could lead to stress, illness or relationship breakdowns. 

“It most definitely can have a negative effect, especially because the last six-12 months people haven’t really been in the mindset to enjoy their work,” says Mr Nicholson. “It has every possibility to lead to stress and other health factors.”

Overworked staff also a poses a risk for employers in that a workplace full of unhappy staff could be bad for business, warns Mr Nicholson. 

“Employers do need to be a bit cautious to the fact that during a downturn the way they manage that process could come back to them later on.”

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When you can't keep the people, keep their knowledge Print ArticleLisa Halloran, Retention Partners  www.retentionpartners.com.au.

 

Anna Gledhill, Manager HR Services

 

 

I thought this article by Lisa was a timely reminder to ensure you protect your company's knowledge.

 

Every employee will ultimately leave their organisation, but there's no reason why their knowledge has to walk out the door with them, says retention expert Lisa Halloran.
 

Although HR practitioners are primarily concerned with keeping people in an organisation, it's important to remember that each one will leave eventually - "whether they resign, retire or the bus hits them" - and to take steps beforehand to reduce the risk of losing their knowledge, she says.
 

HR should particularly focus on keeping the knowledge of high-value employees, who Halloran refers to as "bombs" (because "when they go off, they cause a lot of damage"), as these are the workers whose unplanned departure can have the worst impact on an organisation.

"It's about risk reduction, and risk management."

Halloran, the director of
Retention Partners, says there are a number of initiatives that help employers store the knowledge of their workforce while they are still employed so it can be used after they've left, including:

  • Documentation - where a job is primarily process-related - that is, it involves "steps" - the steps should be documented where possible in a way that new employees will find easy to follow. "To document things or have process manuals is brilliant if the same thing happens over and over again."

    Halloran cautions that "not many people like documenting what they do", so employers should consider engaging someone to follow the worker around and record their activities. That job is specifically suited to science-based people and linear thinkers who understand the value of processes, she says.
  • Shadowing - in many cases, an employee's value to an organisation lies not in the process they use but their innate skills and the strength of relationships that they build up over time.

    "Obviously this doesn't lend itself to any form of documentation at all, but the organisation is heavily exposed if they lose that person - they could lose a major client," Halloran says.

    Organisations that rely heavily on relationships should have a shadowing arrangement, she says, where "if someone's going to a major meeting with a client, they have to take another person with them". Employers should ensure clients regularly interact with more than one representative and "get to know some of the faces" of the organisation, if not through business meetings then less formal lunches.
  • Video - this idea came from a Retention Partners employee whose immigrant grandmother wanted to pass on recipes that had never been written down. As she didn't know the exact amount of ingredients required (it was more "a pinch of this, a dash of that"), she used video to record her putting the recipes together.

    Halloran says a large open-cut mining company used this technique on a rare occasion when a massive, multi-million-dollar piece of equipment fell into a pit. The organisation set up at least 30 cameras at the site to record various attempts to retrieve the machinery over a period of weeks so that the techniques used could be viewed again in the event of a repeat incident.

    It also uses video to record tasks performed by people with specific knowledge so that when the need arises, other employees know what to do, she adds.

    "Where a person owns a particular piece of knowledge that can be filmed, [employers should] create a store of knowledge relating to that process."
  • Promotion criteria - some organisations ensure they retain knowledge and reduce their recruitment costs by requiring managers to develop their subordinates.

    "The deal is you will never get promoted unless at least two people behind you could stand up into your job. It changes the dynamics dramatically so that rather than saying 'I'm not going to help these people because they're my future competitors', they say 'I'm never going to be freed from this job unless I can put up a couple of people up to the recruitment process who stand a pretty good chance'," Halloran says.

    It might be that the replacement will need six months' more development and training to step into the role of an exiting manager, but this reduces the impact to their organisation of losing their knowledge in its entirety, she says.

    "Get people coming up through the organisation to add more value as they're coming through. Replacements might need more development, more training, and more time, but you're in a better position to fill that gap than if you just let managers go without grooming the people behind them. Nobody's got enough 'fat' to have a little 2IC, but it makes managers deliberately aware of how they manage their assets so that they've got people to fill their shoes."
  • Post-employment employment - when high-value employees leave to work for another organisation, employers should strike a rate to "buy them back", Halloran says, for example for five hours a month over a six-month period.

    "Whatever that rate is, the benefit is going to be a lot better. Get them to have lunch with their replacement and talk to them about 'XYZ'. It extends access to that person's knowledge if you haven't taken steps to secure it before they go."
  • "Council of elders" - employers facing high retirement rates in the coming years should consider forming a "council of elders" - "retirees who, for instance, know what happened in 1974 and have really great depth of knowledge", Halloran says.

    "Bring them back in formally, once a month, or get them to help out on a phone call, or have an ad hoc lunch with up and coming youngsters, all on very strict criteria," she recommends.

    "You might have to pay for fantastic lunch once a month or whatever it may be, but it's a low cost to keep that information."
  • Elite cohorts - where the value of retiring employees' knowledge is great, employers can recognise them in other ways that foster its retention, Halloran says.

    She cites the example of a shipping company that was desperate to retain the skills of its skippers and masters - people who knew their knowledge was powerful and earned through years of very hard work, and were reluctant to pass it on - who were approaching retirement.

    The global organisation invented the "master mentor" program, which at any point in time has just five "masters" who must each take two people under their wing. There are strict criteria around the skills that must be passed on and the timeframe for doing it, and the masters are recognised in return with photos in the foyers of all the company's offices; first-class flights to Scandinavia for the annual board meeting; and trips to New York for lunch with the chairman.

    "Effectively the organisation is bowing down before the immense skill that these men have, and in return they're saying 'pay back now'. It's quite a wonderful way of saying to these people, 'your skills are so important and we're going to celebrate and recognise that, and this is the way we're going to do it', rather than saying, 'write down everything you know, or else'.

    "It's not low-cost, but certainly compared to loss of that enormous depth of knowledge, it's essential."
Halloran says it's "risk management 101" that if employees are highly valued for their contribution they should be retained, but failing that, it is their knowledge that must be kept.

"In HR everyone is so swamped with the immediacies of life that it sometimes takes a little bit of a shake-up to stand back and have a look at some of these bigger picture ideas," she says, but adds that initiatives can be implemented "virtually instantly to protect your organisation and lower your recruitment costs".

For more information contact Anna Gledhill on 6223 3055.                                                                                                      Back to top


Pitfalls for the "uninitiated" using psychometric testing By Christopher St Clair of PsychWorks Partnership

 

Rob Howes, Recruitment Manager

 

Rob Howes agrees Psychometric tests are the best predictor of a potential employee's performance, but they are often misused in the recruitment process.

 

When used properly, says Christopher St Clair of PsychWorks Partnership, cognitive tests predict around 30-to-35 per cent of individual difference in an employee's performance, "making them simply the best predictive differentiator for performance".

(The next-best predictor of performance is behavioural interviewing, ahead of personality profiling, reference checks and "intuition, which is about the lowest predictor of getting the right candidate", he says.)

Print Article

 

But for the "uninitiated" in psychometric testing, St Clair says, "there's lots of pitfalls".

First, he says, employers often interpret percentile scores by simply comparing them between candidates, so they might favour a candidate who scores in the sixtieth percentile for numeric reasoning - one of the typical measures, along with verbal and abstract reasoning - over one who scores in the fortieth percentile.

This is actually "quite a fine-grain distinction", St Clair says, "because it's all about relevance rather than saying 'that's a bad score for someone to have'.

"For example, someone might score in the thirtieth percentile for numerical reasoning... and that may not be a real concern unless they're doing a significant amount of budgets and numerical-type activities."

Employers can also misinterpret - or too narrowly interpret - the weaknesses or developmental areas highlighted in psychometric reports. "They might see these results and... isolate statements without seeing the broader context of the report, and focus on one or two things that might exclude a candidate when in fact those things might not be relevant, or they could be placing undue emphasis on those things."

Employers that use "off-the-shelf, one-size-fits-all" assessments risk deterring candidates who perceive that the tests don't directly relate to the job they're applying for, or that the tests are pitched too high or too low for their job level. St Clair notes: "For an apprentice you might use a numerical test, but for a financial controller you'd want a different one. It's about getting the right level of testing as well as the test itself for that particular construct."

Get better results

The first step to conducting effective psychometric testing is to "get the test battery right", St Clair says. An organisational psychologist can recommend which test to use once they understand the job description and competencies that underly the particular job.

He warns that although some testing providers require administrators to become accredited, others are less strict, allowing "anyone in the HR field" to use them. He says that "unless an organisation has an organisational psychologist on board, then using internal people to interpret the test or to give really good feedback to the line is probably not a very wise thing to do."

HR should take a broad-based view of the test report, he says, and incorporate the results with their observations of the candidate during interviews as well as any findings from their reference checks, so they are "not placing undue influence on the psychometrics but certainly using them as part of, rather than
the, determining factor in the selection process".

When a test finding contradicts an interviewer's own observations and perceptions of a candidate, they should delve deeper into the issue using behavioural interviewing, he says, and reference checks. "Sometimes a candidate appears 'on the ball', and says all the right things [during interviews]... but a lot of candidates can be very well rehearsed in impression-managing an interview, and other candidates may be perhaps a little bit nervous or not as forward in [promoting] their abilities. Therefore if it's not a behaviour or targeted selection interview, the interviewer may not be gleaning the information they need to make a fair decision. The interviewer will walk away with the wrong impression if it's not a well-constructed competency interview."

For example, he says, an interviewer might not get a true picture of a candidate's emotional functioning in an interview, but a test might reveal that they work best in a structured environment, while in an unstructured or highly fluid environment they can be susceptible to high levels of stress, worry or frustration. "So the questions would be around the types of situations they've faced, and how they've responded to those types of environments that might elicit those stress reactions."

HR should consider whether some of the candidate's identified weaknesses can be turned into developmental areas, or managed, St Clair says. "Sometimes people feel 'gosh, that's a really bad thing to have in our organisation', when it's simply something that a competent manager might be able to work through with the individual."

Finally, St Clair says candidates should receive quality feedback about their test results, but it should
never come from a recruiter. "The employer shouldn't make any comments related to the report, but I think all psychologists should offer verbal feedback to candidates regardless of if they've been successful or not in obtaining the position."

Feedback to successful candidates should not be provided until
after they've started in the job, he warns, "because that can really change the negotiation stakes. If a candidate's done really well, then they might use that as leverage [to negotiate a higher salary]".

For more information contact Rob Howes on 6223 3055.

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