Speaking Up Without Fear

Elizabeth Ticehurst and Hoda Nahlous investigate what part a ‘speaking up’ and ‘whistleblowing’ culture plays in rebuilding corporate trust.

 

In this current era where trust in corporations is low, there is demand for organisations to develop an ethical corporate culture to control and minimise, to the extent possible, corporate misconduct. As a result, organisations are focusing on better understanding and improving their internal culture and practices. As part of this process, an effective ‘speak up’ and ‘whistleblower’ culture is becoming a prominent benchmark in measuring whether an organisation has a good corporate culture.

The benefits of ‘speaking up’

An effective ‘speak up’ culture is one where employees are encouraged to raise concerns and feel comfortable in doing so without fear of persecution. This requires the board and senior executives of the organisation to clearly articulate to staff what is ‘good’ corporate behaviour, so that ‘bad’ corporate behaviour can be easily identified. In addition, it also requires an organisation’s leaders to encourage a culture of dialogue and openness so that employees feel that management is trustworthy, accessible and well-equipped to handle their concerns.

If ‘speaking up’ is embedded into an organisation’s corporate culture and is effectively managed, then it provides opportunity for the organisation to deal with employee concerns in advance of these concerns escalating into any form of crisis.

What is a ‘whistleblower’?

‘Speaking up’ is sometimes fused with the term ‘whistleblowing’. Although a ‘speak up’ culture must also be a culture that encourages whistleblowing, ‘whistleblowing’ has specific meaning under law. In particular, ‘speaking up’ often involves an employee raising concerns with respect to their own personal circumstances within the organisation. By contrast, a ‘whistleblower’ is an insider within an organisation, who reports misconduct or dishonest or illegal activity that has occurred within that same organisation.

Whistleblowing has often been associated with negative connotations, most prominently that it is used as a tool by aggrieved employees to make a ‘nasty’ complaint against particular individuals, or that it is an act of disloyalty to the organisations (or ‘backstabbing’ of any relevant individuals involved in the whistleblower disclosure).  However, effective whistleblowing is key to eliciting trust among employees as it demonstrates that the organisation actually wants to know and cares about any misconduct or dishonest or illegal activity occurring within the organisation.

In any case, the proposed amendments to the whistleblower laws look to enforce the implementation by certain organisations of internal whistleblower policies, and to further strengthen whistleblower protections.

The law

Currently, a whistleblower is protected under law if they:

  • are a current officer, employee, contractor (or employee of a contractor) of the company that they are making the disclosure about;
  • disclose the information to any of: the company’s auditor (or a member of the audit team); a director, secretary or senior manager of the company, or a person authorised by the company to receive whistleblower disclosure; or ASIC;
  • provide their name to the person or authority that they have made the disclosure to;
  • have reasonable grounds to suspect a breach by the subject of their disclosure; and
  • make the disclosure in good faith.

Certain protections are afforded to whistleblowers under law, including protection of information provided by the whistleblower and protection for whistleblowers against litigation and from victimisation.

Proposed changes to whistleblower laws

Late last year, the federal government introduced a Bill aimed at improving protection for whistleblowers in the corporate, financial, credit and tax sectors. The Bill proposes various changes to the current whistleblower protection laws, including a requirement that public companies and large private companies implement internal whistleblower policies. Notably, it also proposes extending protection to a whistleblower who makes a report to a journalist or politician in circumstances where they reasonably believe there is an imminent risk of serious harm or danger to public health or safety, or to the ‘financial system’, if the information is not acted upon immediately, and a “reasonable period” has passed since the whistleblower first made a protected disclosure.

The whisleblower’s right to confidentiality is a key feature of the Bill. If enacted, these rules would potentially lead to significant civil penalties, and even criminal charges, for individuals and entities who breach the confidentiality of a whistleblower, or who engage in detrimental conduct towards an individual because that person has been, or is suspected of being, a whistleblower.

The changes were to take effect from 1 July 2018, however, the Bill is still pending in Parliament at the time of writing this article (August 2018). In any case, there is an expectation that most (if not all) of the proposed changes will be passed.

 

Hoda Nahlous is Director and Elizabeth Ticehurst is special counsel – Employment at KPMG Law.

 

The courage to lead

IN 2007, LORNA WORTHINGTON PUT HER HAND UP TO BE A CANDIDATE FOR ELECTION TO THE CITY OF BUNBURY COUNCIL IN WESTERN AUSTRALIA. THAT WAS WHEN SHE REALISED INVESTING IN HERSELF — AND HER LEADERSHIP SKILLS — WAS A LOGICAL STEP IN SELF-DEVELOPMENT.

STORY NICOLA FIELD | PHOTOGRAPHY CAMERON RAMSAY

Lorna Worthington CMgr FIML is Managing Director and Principal Strategist of management consultancy Baker Worthington. Her interest in developing management and leadership skills began many years ago when she was elected to the City of Bunbury Council in Western Australia. At that point Worthington enrolled in a Master of Leadership and Management because “I felt I owed it to the community to be the best leader I could be”.

Worthington admits the investment in herself paid off. And her leadership journey has continued to this day. She recently become a Chartered Manager (CMgr) through IML, a process Worthington describes as “amazing”. She takes up the story saying, “Despite having a number of other professional qualifications I’m sure I didn’t get off any more lightly than others in relation to the questions the assessors asked and the thought I had to put into answering each question.”

“That process enabled me to reflect quite considerably on the business and on the people that work with me – and what it is I really do.”

Along with the global recognition and portability of the qualification, Worthington says a key benefit of becoming a Chartered Manager through IML was reflecting on pivotal issues such as “am I saying or am I doing? And if I am doing, what impact is it having?” She explains, “This was very much the essence of the questions that were put forward.”

For Worthington, gaining formal recognition of her skills as a manager and leader was a critical driver. “Management and leadership is not recognised as a profession in its own right,” she notes. “I think the Chartered Manager designation is at least an attempt to rectify that. The landscape is changing and it’s important that individuals can validate their experience, so the designation is definitely helping to carve out a profession in its own right.”

From here, Worthington is focused on continuing her professional development as a Chartered Manager. She says, “Professional development is about using, developing and expanding on what it is that we are learning. That’s a real shift; not just doing it, but holding each other to account for doing it.”

Recently, Margot Smith, IML’s General Manager Membership — Strategy & Engagement, caught up with Lorna Worthington to discuss her views about leading, managing and inspiring both her team and her clients.

Margot Smith:   Lorna, in business you’re effectively selling the talents of your team. How do you get your people to buy into the values of the organisation?

Lorna Worthington:   I built the organisation based on what I have learnt over many years. Selling your organisation is easy if you really believe in your values, and people can see the values transpiring. Qualities such as honesty, integrity, courage, valuing people and creativity – these are all things that people will readily buy into. As long as you espouse these values, people can see that you operate by them.

My team, the people who work with me, are fabulous and they’re all unique with lots to contribute. They absolutely live and breathe our values. It’s pretty easy to get engaged with us, because you feel it, you don’t just see it.

MS:   Do you recruit based on these values or do you believe top talent can be encouraged to take on an organisation’s values?

LW:   I have a unique way of having people come and work with us. I like to understand what really motivates a person, what they’re passionate about, and what it is they think that they have to offer. Based on that I dare to ask, “what is it you think that Worthington could offer if you came on board?” Job candidates get quite excited about that. So, I often recruit people based on what it is that they’re passionate about and what it is the “Bank of Worthington” can sell to them.

MS:   How do you live up to valuing the individual on a practical level?

LW:   Everybody has their own way of working; everyone has their own habits and idiosyncrasies. We encourage each other to be who we are and to be valued for that. When you get to know people you end up in a great place because people are a lot more giving and it creates some resilience.

The other aspect around valuing individuals is in relation to how you operate. It doesn’t matter what level a person is if we’re labelling people, what matters is that they have the freedom to speak and to create and to have a voice. We try to flatten the organisation in relation to brainstorming because it doesn’t matter who you are, you can contribute to making the organisation successful.

MS:   It sounds like you create an environment where everyone can bounce off each other and thrive on each other’s individuality, thoughts and ideas. Could you describe how it feels to walk into that culture and environment?

LW:   The feeling is one of ease. When you come into the organisation you see people engaging with each other, people are spontaneous, they are respectful, and they encourage each other. The atmosphere is quite energetic, electric and there’s passion around. You can feel the camaraderie, the creativity and you can feel the willingness and the want to be there.

I’m privileged having people like that around me. They go above and beyond on a regular basis. It’s just amazing, that essence, that sense of engagement.

MS:   Not everyone is comfortable with change, yet you encourage individuals to contribute to the future. How do you develop and encourage the spirit of innovation among your team, and also among your clients?

LW:   We don’t talk about “change”. There’s a western way of talking about change and it’s very linear, with a beginning and an end. But most people feel that the end never actually comes, so don’t worry about it because someone else will change their mind shortly, and so on.

I’m very cautious about this notion of change. We talk about the evolution whereby, in fact, as things evolve they grow into whatever that new end point might be. People aren’t then pressured with the stress of change, they embrace it. They embrace the feeling of continually contributing to whatever the end point is.

MS:   I like that because there’s often a negative connotation with change. People talk about change fatigue. What about that spirit of innovation in general? How do you foster an environment of innovation?

LW:   First of all by valuing your staff. Valuing people at all levels, all walks of life. Grand innovations come from conversation, from an environment of safety, an environment of non-competitiveness and certainly non-ego.

MS:   The pitfall of being a micro-manager can be hard to avoid for those coming up through leadership ranks. How can leaders break away from this and take a big picture view?

LW:   It’s important for leaders and managers to know themselves really well and to be accountable for how people develop around them. Micro managing tends to come from a personality trait – and sometimes, insecurities. I find it particularly useful when you know you have a particular trait to call it out. That way, if you’re micro managing then your staff would know it, and secondly, someone would have the courage to say “Could you give me a little bit of extra leeway on this”, or “I don’t need quite that much supervision”.

I think it’s important for leaders and managers to be reflective and to understand their impact on others.

MS:   Negotiation is obviously a key skill. What do you believe are some of the key aspects of being a good negotiator?

LW:   Honesty, integrity, respect, don’t win at all costs. Negotiation is an art. There’s a fine line between negotiation and selling. If you’re genuinely negotiating, then you’re looking for a good outcome for all parties.

MS:   For emerging leaders thinking about moving into strategy or management consultancy, what should they consider on their career path?

LW:   Definitely consider organisational behaviour, but more than just the theory side of it. When you are going into an organisation and coming in as the assumed expert, you don’t actually have to be the expert, but you have to be good at hearing what people are saying. You have to understand the dynamics of the organisation, what’s really going on. If you’re going to be responsible for assisting people who develop strategy you must get in deep and understand what it is they’re trying to achieve.

MS:   What kind of skills does a strategy management consultant need? We talked about an open mind, and active listening skills. What else do you think there is?

LW:   That’s an interesting question for me, who generally recruits based on a person’s passion and whatever skill set they bring to an organisation at any point in time. I often talk about leadership management being a skill in its own right. It’s the same as being an engineer or a nurse, it’s just not recognised that way. If you do leadership management well, you can do anything. You can learn the subject matter.

What I look for are people who have the ability to lead and to manage, and get the best out of different teams.

You’re also leading and managing organisations because people look up to you, and people try to have a voice through you. So managing the voice in a really appropriate way that benefits the organisation and keeps the person or people sharing that information safe is quite an art.

Leadership in 60 seconds

Facebook, Twitter, Instagram or Snapchat?
Facebook.

Phone, Email, or face-to-face?
Definitely face-to-face.

Which leader do you admire and why?
Julia Gillard. She’s done amazing things and she’s been so courageous. She has absolutely put herself out there and has copped a lot for it but is still resilient and is still motivating to people that aspire, women especially.

Sum up your view of leadership in just three words.
Courage, integrity, and resilience.

Complete the sentence, leadership matters because…
You impact people’s lives, every day.

Which three guests would you invite to dinner to discuss leadership?
Napoleon, Albert Einstein, and Martin Luther King. I think that you would learn a whole lot in your living room.

MAKE YOUR MARK. GO CHARTERED 

Chartered Manager (CMgr) is the internationally-recognised professional designation accrediting management and leadership excellence.
The highest status that can be achieved as a manager and leader, it allows managers to professionalise their leadership skills and stand out in a competitive global market.
Focused on Continuing Professional Development (CPD), Chartered Manager is awarded on experience, expertise and a commitment to management and leadership.

For more details visit Chartered Manager

Mrs Mac’s recipe for retention Test

And why IML’s National Salary Survey is a key ingredient

Founded in the 1950s, Mrs Mac’s has grown from being a humble bakery to become a household name – now producing over 100 million pies, sausage rolls and other pastry products each year. While the quality of Mrs Mac’s product hasn’t changed over the years, the business itself definitely has. Today, Mrs Mac’s has a team of over 300 working across Australia and New Zealand – a far cry from the small family-run shop it once was. What’s impressive about this evolution is that so many of Mrs Mac’s people have stayed loyal throughout the process – a testament to the strength and consistency of the company’s culture.

 

Mrs Mac’s has been using and contributing to IML’s National Salary Survey for many years now, so we took the opportunity to chat to them about the survey – and the role it plays in their retention strategy. Here’s what Mrs Mac’s HR Manager, Toni Gray, had to say.

 

As Mrs Mac’s HR Manager, you’re responsible for all things HR – quite a broad job! What aspects do you find most challenging?

“At this point in time, I think staff engagement. We know that a number of factors feed into this – there’s pay, but then there’s also the general feel and culture of the business, and the way in which it evolves. As we seek to do things smarter, we make changes that we feel will add value or enhance the employee experience – but when you have a workforce with great retention and tenure, they’re sometimes not as used to change so we have to manage that effectively.”

 

Your average staff tenure is around seven years, and your pastry chef John Miller has been with the company for over 40 years. How do you explain this great retention?

“At Mrs Mac’s we’ve always worked hard to maintain an open culture with family values, and make it a great workplace for everyone – whether they’re working in the office or the factory. People are here for many hours each week, and we want those hours to be enjoyable. To achieve this, we run staff events once or twice a month that are accessible to everyone – from ‘bring your kids to work’ days, to talks from super or healthcare providers, to pizza lunches. Our products are freely available in our staff kitchens.

 

At Mrs Mac’s we promote a culture where people are allowed to learn from their mistakes, rather than getting in trouble for them. People are encouraged to ask questions, and have a bit of fun! We also like to give our people the chance to weigh in on decisions we make, so we run polls and surveys a few times a year. To keep people connected, we have a bi-monthly newsletter that includes things like a staff spotlight, recognising people and teams who are doing a great job. Our annual employee engagement survey also gives people a good opportunity to provide feedback – and we’re always conscious to report back to employees on how this has been actioned. There’s no point asking if people feel that their feedback has gone into a vacuum.”

 

What role has the National Salary Survey played in your retention strategy? What inspires you to keep using it?

“Mrs Mac’s was using the NSS even before I came on board – but I’ve always seen the value in these resources. I particularly like the NSS because we contributed to the survey, so I know our pay structure has been taken into account. We use the NSS as a key part of our annual review process to make adjustments to salaries, ensuring that we’re market competitive but also internally aligned. If there have been job changes we use it to see what a job is worth; if we’re recruiting for a new position, we use it to determine what someone will be paid. We’ve also used the NSS to make sure there are no discrepancies in salaries, giving our Management team and Board the peace of mind that we’re an equal opportunity employer.

I find that the survey also helps during conversations with employees who may be requesting a raise. Salary is someone’s livelihood and linked to their self-worth – so employees really need to feel like they’ve been listened to, and given an answer that has a credible basis. With the NSS, I feel confidence in the recommendations I make. Compared to other surveys, it’s also a cost-effective solution (plus it’s updated twice a year), so we can afford to access reliable salary information that’s always current. The fact the Staff Retention Report comes as part of the package is an added bonus; it’s always interesting to see how we stack up and whether there’s anything we can learn.

 

My job is really about getting the balance between what the company needs, and what our people need. At the end of the day, we can’t be a great brand without great people. From the Board to Senior Management down to everyone on the floor, we really do have a great culture and a great team – one I’m proud to support and be part of.”

 

Curious to see what else the NSS can tell you? Why not order your copy now, or download a free sample.

5 Reasons Why Salary Data Is Worth Investing In

Think all salary surveys are pretty much the same? Think again.

If you’re managing a business or working in Human Resources, it’s your responsibility to keep up with remuneration trends across your industry. After all, there are many factors that influence how employees are paid – from changing customer demands to broader economic trends. If you’re not on the ball, you risk over-paying or under-paying your people, neither of which is great for business.

Chances are you’ve already come across (and utilised) salary data, especially when review time rolls around. But while there are plenty of resources out there, it’s worth taking a close look at the numbers you’re using to make your decisions. Not all research is done with quite the same diligence – and it’s risky to take statistics at face value.

Australia’s longest-running survey, the Institute of Managers & Leaders’ National Salary Survey (NSS) is one of the most respected resources out there. Partly this is down to the fact that IML has been leading the way in remuneration research for over fifty years, so they’ve learned what questions to ask (and how to ask them). IML haven’t rested on their laurels either – over the years the number of HR professionals surveyed has grown, giving data into 250,000 employees gaining data into more than 25,000 employees, from hundreds of businesses and locations across the country.

If you’re on the fence about investing in the NSS, rather than relying on free resources, here are a few reasons to take the leap.

See what people are being paid in your specific industry, right now.

Salaries vary greatly between different industries – and what’s happening in one sector isn’t necessarily happening across the board. Whether you’re in Government, Social Services, Manufacturing, Construction or Business Services, it’s important to know what people are doing in your specific industry – and not all salary surveys can tell you this. We know that these days, Australians are embracing a wider variety of job types than ever before, which is why the NSS surveys over 250 positions across a broad range of industries. The more organisations you survey, the more robust your data, and more insight you have into the nuances between specific jobs. All of which is very valuable to those developing salary strategies.

Another factor to keep in mind is timeliness. Salary trends can shift extremely quickly, and data can become outdated within the space of a year. Unlike some other resources, which are annual, the NSS is updated every six months, so it always contains recent, reliable information.

Get an accurate picture of what’s happening across Australia.

Variations between industries aren’t the only differences to be mindful of – in Australia, employers also need to know what’s happening in different geographical areas too. With any survey, it’s important that enough people have been surveyed in your city or region – otherwise you risk be giving an employee in Perth a raise based on Sydney-skewed information. Again, this is where the number of people surveyed in the NSS plays a big part in its accuracy, and usefulness.

View historical trends and analysis.

Of course, it’s essential to have your finger on the pulse about the status of salaries now – but it’s also very useful to see this in the context of what has happened in the past. With over five decades of insights to draw from, the NSS is in a unique position to pinpoint historical trends that can prove very useful to HR managers. Which types of employees are gradually commanding higher salaries, and which are becoming less valuable? When forecasting for the future, what job roles can you expect to pay more for in the next few years? Answering these questions now can help prevent unpleasant surprises down the track, and help you anticipate how your remuneration approach may need to change over time.

Find out why employees choose to leave (from the horse’s mouth).

Retention is a huge issue for business and HR managers. Replacing staff is not only time-consuming, it’s also costly – on average it takes a massive $23,753 to find, hire and train a new staff member! With this in mind, it’s incredibly useful to understand the reasons why employees choose to leave – and it’s certainly a topic IML explores in the NSS. While salary is a factor, it’s not the only thing that drives employees to seek work elsewhere – the 2018 NSS found that many are seeking opportunities or personal development that they feel their current workplace isn’t providing. Armed with knowledge like this, you can put yourself in a better position to cater to your employees’ true needs, and stop them from looking elsewhere in the first place. Who knows, paying a bit more attention to training or career path planning could make all the difference to your turnover.

Curious to see what else the NSS can tell you?

Whether you’re looking to develop competitive salary packages for new staff, or hold onto your existing talent, the NSS is a tool that can make an enormous difference. Download the information pack below.

 

For the latest data on everything from bonuses to benefits, pre-order the IML National Salary Survey, or contact the IML team to find out more.

5 Reasons They Keep Leaving

1. The lowdown on staff remuneration & retention in 2018

It’s no secret that pay increases have been few and far between in recent years, with wage growth in Australia currently sitting at a record low of 2.9%. Considering the state of our economy, this isn’t wholly surprising – in the past year alone, we’ve felt the impacts of everything from extreme weather events to political instability, both globally and close to home. With the International Monetary Fund predicting that Australian economic growth will only reach around 2.2% in the coming year, a return to the golden days of pre-GFC pay-packets does not seem imminent.

While the economy is certainly a contributing factor, it’s also unlikely that this is the only reason we’re seeing such sluggish wage growth. With the rise of the ‘gig’ economy, the way Australians are working is changing too, with online platforms like Uber, Deliveroo and Airtasker opening up more competition for hourly-wage jobs. Our perception of what it means to be an “employee” is changing – and so are our expectations.

In some ways, Australians in 2018 are demanding more, especially in terms of flexibility and culture. In other ways, we’re asking for less – especially in situations where our rights aren’t clear, or where we’re too insecure about our job to ask for a pay rise. As more industries embrace freelance and contract workers, these trends are likely to start affecting professionals too, especially if work can be done remotely.

2. What does all this mean for Australian businesses – and workers?

Anyone who has waited, hoped, asked or even fought for a pay rise will know how important it is to feel properly valued and compensated – and how off-putting (even devastating) it can feel to have your request refused. However, while there’s a clear link between salary and staff retention, you might be surprised to learn that pay isn’t the only thing that buys the loyalty of an Australian worker.

The 2017 Staff Retention Report from the Institute of Managers and Leaders (IML) drew on responses from 246 organisations across Australia, who shared their employment data as part of IML’s National Salary Survey. When asked about their employees’ top reasons for leaving the company, respondents stated that two of the top reasons were the desire to seek new challenges, and the fact their current employer provided limited opportunities for staff development. Salary was cited as the third driver – showing that, while money matters, it takes more than salary to keep a worker happy.

3. Employees don’t just want to be paid, they want to be valued.

High turnover isn’t just disruptive and potentially damaging for workplace culture, it’s expensive too. At IML, our research tells us that it takes an average of $23,753 to attract, hire and train a new staff member – a cost that most businesses would prefer to avoid. With this in mind, it’s key for Australian businesses to stay on the front foot when it comes to staff retention strategies.

According to 2017 research from the IML Staff Retention Report (a supplementary report from the data gathered from the National Salary Survey), some sectors may need to work harder than others. While overall staff retention in Australia decreased from 2016 to 2017, Professional Services, IT and Finance all saw considerably higher turnover than average. In contrast, Agriculture, Manufacturing and Mining were the most stable, with below average turnover.

Happily, it does look like Australian businesses are rising to the challenge of giving their people more opportunities to learn, grow and succeed. Henley Business School’s Corporate Learning Survey found that 35% of respondents spent more on training in 2017 than 2016, a 7% increase since the last survey. Participants also ranked their top challenges as managing the speed of change, and achieving cultural change. This is positive to see, as it suggests there’s an increasing appreciation for the way in which an employee’s experience can add value to their role – over and above the actual salary they take home.

4. How do you know what someone is worth?

One of the toughest questions for employers is how much to invest in the people who work for them. Calculating an employee’s worth is rarely straightforward, and there’s much more to it than assessing someone’s job description and performance reviews. A multitude of other factors also need to be considered, from an individual’s past tenure and future potential, to the cultural influence they have within the organisation.

When weighing all this up, it helps enormously to know what your peers are doing. After all, if you don’t give someone the salary, training or support they expect, there’s a good chance someone else will. Equally, if you overpay staff, it could have a detrimental effect on your bottom line, and create resentment within your team.

This is where resources such as IML’s National Salary Survey are invaluable. Due to be released on 30 April 2018, our latest survey not only provides a benchmark from which to make sound remuneration decisions, it also provides insights into how other organisations are approaching things like training and development.

As mentioned earlier, it’s important to remember that salary is only part of the equation. For some employees, having fresh challenges or a clear pathway within the business is just as important as salary (if not more). Fortunately, IML has the tools to help you to discover what your people want (such as profiling tools and 360-degree reviews), and many ways to recognise and support their growth (our Chartered Manager accreditation is just one example).

5. With all this in mind, it’s worth asking yourself how you’re deciding the value of your employees.

Is it something you determine based on budget alone? Is it perhaps more emotional than rational? Are you still in touch with what your peers are doing for their staff, and is your approach still suitable? If you’re uncertain about any of these questions – or whether you’re still ‘on the money’ where salaries are concerned – it’s worth finding out.

For the latest data on everything from bonuses to benefits, pre-order the IML National Salary Survey, or contact the IML team to find out more.

4 Hidden Indicators that Trust Issues are Negatively Impacting your Organisation

By Marie-Claire Ross

For 19 years, Greats Places to Work and Fortune magazine have been formulating The 100 Best Companies to Work For list.  Surprisingly, the distinguishing theme underpinning all of the best companies is not their fancy freebies, parties or lavish annual leave policies.  It’s how much trust there is between co-workers and managers.

Companies that scored highly for trustworthiness also finished first for metrics on higher profitability, revenue growth and stock performance.   But just like people, these organisations are not perfect.  The research uncovered major discrepancies between the experiences of those on the frontline, as well as differences between gender, ethnicity and even full-time versus part-time workers.

What’s becoming increasingly obvious is that organisations that have company leaders right down to front-line workers who all embrace the value of a candid and open exchange of ideas and information, create highly functional and profitable enterprises.

After all, it’s trust that enables different people within an organisation to consistently rely on each other. It’s trust that enables your customers and other stakeholders to believe that you will deliver on your promises and behave responsibly. It’s trust that enables a company or brand to bounce back after a crisis.  And it’s trust that enables an organisation to change and grow.

Yet, very few organisations strategically improve trust in order to improve performance.  One of the problems is that trust is an emotional issue and it’s hard to see, let alone fix internally.   It is often outside the sphere of leadership capabilities.  Even when they do realise trust is a problem, they each have a different frame of reference making it tricky for everyone to know the best steps forward.  Often leaders, waste time and headspace focusing on the wrong trust elements or deny it’s a problem.

Here are four common leadership frustrations that are all signs of trust issues that negatively impact workplace culture.

 

1. Working around People, not with People

A common CEO gripe is that newly formed teams (and even existing) operate more like a collective of individuals rather than a team.  Team members prefer working with those they know and avoid newcomers or even those with different job titles.   Email is preferred to discussions and the most knowledgeable person in the team is rarely consulted.  The result is that people work in different directions and make poor-quality decisions.

On the surface, these teams may appear to be operating at a decent level.  It’s only when leaders start comparing the outputs of a few teams together that the stark difference between performance become apparent.  High trust teams are inclusive, get more done and reach goals faster.

 

2. Fear of Relying on Others

Following on from teams is the even bigger issue of departments and units not collaborating together.  Research by Harvard Business Review reported that only 9% of managers feel that they can rely on cross-functional colleagues all of the time, and only 50% say they can rely on them most of the time.  Managers also say they are three times more likely to miss performance commitments because of insufficient support from other units than because of their own teams’ failure to deliver.

When managers cannot rely on colleagues in other functions and units, they undermine execution by duplicating effort, letting customer promises slip, delaying their deliverables or passing up attractive opportunities.

 

3. Avoiding Delegation

One of the most important capabilities of a successful leader is being comfortable with delegating work.  This makes them more effective because they get more work done and let their direct reports know that they are confident in their abilities to deliver.  It improves accountability and goal kicking.

Leaders who avoid delegating tend to rely on themselves falsely believing only they are capable of doing the work.  Over time, they feel alone, even betrayed by the organisation, because they feel overworked and overwhelmed.  At the same time, they get categorised as being a micro-manager, limiting career opportunities.

Managers who delegate well have the time to focus on the bigger picture.  They avoid jumping from one fire to another.  Not only does it increase their job satisfaction, but those reporting to them feel empowered, accountable and more confident in their own abilities and even the leader.

 

4. Not Speaking Up

A study by VitalSmarts found that when people were afraid to speak up about issues, employees were engaging in resource-sapping behaviours such as: complaining to others (78%), doing extra or unnecessary work (66%), ruminating about the problem (53%), or getting angry (50%).

These are costly behaviours.  The same research found that the average person wasted seven days undertaking these dysfunctional problems instead of talking about it.  Silence damages deadlines, budgets, relationships, turnover, employee engagement and meeting goals.

After all, when you don’t get the unpleasant stuff out of the way, you waste a lot of time.  It’s hard to get moving on anything if people won’t talk through issues or how to resolve them.

Humans are designed to avoid conflict.  Both leaders and employees alike fear speaking up about their concerns or even alternative opportunities in case it makes them look stupid or unpopular.

It is an important leadership challenge to create a strong, shared culture where people are unified, to avoid a political and potentially adverse environment.

 

Getting Ready for a Collaborative Future

With technological advances increasing and change occurring at a rapid rate, the reality is that employees within an organisation need to rely on each other more.  There is a revolution occurring in how we need to interact together at work.

Yet, few companies actually consider how to address this specific issue, especially from a trust perspective.  Some even accept their current operating model as a normal part of doing business and how people collaborate.

But the companies that will successfully meet the challenges of tomorrow will be those that require employees change how they interact with one another.  And it all starts with leaders who can build trust.

About the author:
Marie-Claire Ross is the Chief Corporate Catalyst at Trustologie.  She is a workplace sociologist, author and consultant focused on helping leaders put the right processes in place to empower employees to speak up about issues, challenge each other and share information.  You can see her at Leading Well Conference on April 27 2018 discussing 5 Hidden Trust Decelerators that Sabotage Leadership Result.

 

Marie-Claire Ross will be speaking at the The IML Conference 2018. The series explores the topic of Leading Well, and this Melbourne event will focus on how to develop and build high performing teams that drive financial success and ROI. This conference will be an interactive day including keynote presentations, panel sessions, case studies and Q&A’s. Join us for the third-year running to uncover the latest management and leadership thinking.

 

Book now

 

 

Making Staff Retention Your Priority

 

 

Staff retention should be an organisational priority at all times. Recruiting new employees with the right skills set and cultural fit can be timely and costly, and with often serious competition for strong talent.

 

Smart organisations work hard to effectively manage, develop and retain internal talent. The 2017 Staff Retention Report investigates current market trends in relation to staff retention and considers a range of strategies that can help reduce voluntary staff turnover and ultimately retain an effective and productive pool of in-house talent. In particular, the report looks at salary and its role in retaining top staff.

 

The IMF expects Australian economic growth to increase only modestly to 2.2% by 2018, down from the original estimate of 3%. Economic growth in Australia has been dragged down somewhat by declining resource-sector investment, while bad weather slowed housing investments and mining exports for first half of 2017 and Cyclone Debbie, which hit Queensland in late March, temporarily disrupted coal transportation.

 

This has been compounded by global political upheaval, including Brexit, the 2016 American election and, closer to home, high turnover of political leaders in Australian federal politics (six prime ministers in eight years).

 

Slow economic growth generally engenders slow salary growth. Wage growth has been steadily decreasing in Australia, dropping consistently each year from 4.1% in 2012 to 2.8% in 2017. What’s more, salary growth has not been keeping in line with inflation.

However, slow economic growth is only a part of the picture. Australia is experiencing a delayed effect from a global trend of weak salary growth. In the past, the mining boom largely shielded Australia from this trend. The rise of the “gig economy” where workers are employed as private contractors (including Uber, and food delivery services such as Deliveroo), and the growth of part-time roles also contribute to weak wage growth. In fact, wage growth might never recover to pre-Global Financial Crisis levels as the structure of the labour market has since significantly changed.

 

Additionally, there’s evidence to suggest Australians are becoming more risk averse and are choosing not to bargain for higher wages for fear of unemployment. Underemployment has increased and as a result more part-time workers are willing to take on greater numbers of hours rather than asking for a pay increase.

 

Remuneration plays a very important part in employees’ decisions to stay or leave workplaces and it may be the only factor for some. Market data from the National Salary Survey suggests that there are several HR strategies and approaches that can be considered to help organisations to achieve below market average resignation rates. Organisations could positively impact their turnover rates with policies such as increasing the entire salary package, providing a fully flexible salary package, adding more superannuation and rewarding overtime work with options that fit their needs.  Also having a supportive development culture will help to keep staff engaged and challenged enough to keep them from looking elsewhere.

 

The Staff Retention Report is part of the National Salary Survey package.  The 2017 National Salary Survey October Update is now available (use promo code PL20 to receive a special 20% discount).

 

 

 

 

No Budget For Bonuses? Don’t Despair

 

 

How to motivate with less. By Candice Chung

When companies experience a squeeze on budgets, managers often face the legitimate fear that it can dampen staff morale. What happens, for instance, when a lean fiscal year brings with it an ineluctable freeze on pay rises and bonuses?

It’s a tough piece of news to break to top performers. But here’s the silver lining: when it comes to motivating staff, money isn’t the all-powerful magic bullet we believe it to be. In fact, research shows financial rewards do not strictly translate to a rise in employee productivity or morale. According to a 2013 study, the $62.56 billion spent on performance bonuses across the UK per year had “no impact on the motivation and commitment levels of the vast majority of recipients”.

So what causes the bonus paradox? Daniel Pink, the bestselling author of Drive: The Surprising Truth About What Motivates Us, argues that once our basic financial needs are met, most workers are driven by a sense of purpose in their work more so than pure profit. What’s more, once the level of work surpasses menial tasks, and “conceptual, creative thinking” is involved, monetary incentives can actually lead to poorer performances. Instead, what drives people through good times and bad are what Pink refers to as ‘intrinsic motivators’.

“We all have fundamental human needs that cannot be met by money. When these important human needs are met, we thrive,” says Michelle Bihary, applied neuroscientist and workplace resilience expert.

Drawing on Pink’s research, Bihary states there are four things most of us seek from work: autonomy (not being micro-managed), mastery (skill development opportunities), meaning (a sense of purpose aligned to personal values), and social connectedness (a sense of belonging).

“If a workplace helps to meet these needs, it will have thriving employees — making it easier to retain top talent,” says Bihary.

The good news is that companies can seek to fulfil those core needs in spite of financial downturns. Kelly Quirk, CEO of Harrier Human Capital, calls this the ‘total rewards’ approach.

 

 

“Many workers in corporate environments will feel more motivated and productive if they have a say in how they do their jobs”
– Kelly Quirk, CEO Harrier Human Capital

 

 

“Non-financial rewards are increasingly important as wage growth remains stagnant. Despite averaging 4 percent a year from the mid-1990s to 2013, wage growth has now dropped below 2 percent,” says Quirk.

Flexible work arrangement can be a powerful way to incentivise staff. “Trust is a huge factor in motivating others to perform well, and this can come through in the empowerment of employees to make decisions and work flexibly,” says Quirk.

“Whether it’s working from home one day a week, being able to take a longer lunch to go to the gym in return for starting earlier, or otherwise not being bound by traditional working hours, many workers in corporate environments will feel more motivated and productive if they have a say in how they do their jobs.”

Other effective motivators may include value-based incentives. In other words, programs that support diversity and inclusion, learning opportunities or personal development that recognise workers as well-rounded individuals, with interests and priorities outside of work.

Digital Web Agency Sitback Solutions has long championed the idea of personalising rewards to keep employees engaged. Voted one of the Best Places to Work in Australia third year in running, the company has successfully launched a number of non-financial initiatives that have resulted in a highly motivated and committed workforce.

“We base everything on values and make sure that any incentives are personal and authentic….[It could be anything from] free healthy snacks, flexible working hours, support around family or pet commitments,” says Careen Redman, head of People and Culture at Sitback.

“A reward doesn’t have to have a tangible cost attached if it’s valuable to an individual’s wellbeing.”

Escape To The Country: Are Your Skills Portable?

 

 

What do employers need to do to get good people from metro areas to relocate to regional areas? By Nicola Heath

 

Scott Timmins AFIML never wanted to move to Townsville.

“I thought ‘it’s a small country town . . . and I won’t get much out of my life up here,’” he recalls. Twenty years later, the people solutions specialist at TP Human Capital says he’s now considered a local.

Australia is a heavily urbanised nation. According to figures from the Grattan Institute, three-quarters of Australians live in cities with a population above 100,000.

We also live in a knowledge economy, where highly educated people gravitate towards inner cities – “where knowledge-intensive activities are clustered, and where demand for knowledge workers is highest,” states Deloitte’s 2015 report, The Purpose of Place: Reconsidered.

The challenge for employers in regional areas traditionally reliant on declining primary and secondary industries is to attract skilled workers from the cities.

They are up against significant anti-regional bias. Like Timmins before his move to Townsville, most Australians are reluctant to relocate to a regional area for work.

A survey by SEEK found just two out of five Australian workers would consider relocating to a regional area.

 

What skilled workers want

Nearly half the survey respondents said they would relocate for a pay increase to the tune of $20,000 to $30,000 a year.

Timmins recommends regional employers carry out a market analysis of metro wages to come up with a competitive remuneration package, and consider offering perks like a car or rent assistance.

Concerns about career progression is another issue. More than half of those surveyed said they felt that moving to a regional area would limit their career.

But Timmins says employers can sell roles in regional areas as good experience. Whereas a career in the CBD often leads to specialisation, in the regions, jobs are often multi-disciplinary.

A manager in a government department in outback Queensland may require skills across three or more different industries, says Timmins. “That can be really beneficial for them in the long term.”

The breadth of experience they gain in such a role can assist their career progression, whether they want to stay in regional Australia or return to the CBD.

 

What makes a region attractive?

Lifestyle is a big factor. Australians love living by the sea – 80 per cent of Australia’s population lives within 100 kilometres of the coast.

Jock Collins, Professor of Social Economics at UTS Business School, singles out transport infrastructure and an effective broadband network – “not one that goes through copper wires but one that’s very fast” – as critical measures to attracting people to regional Australia.

Investment in regional universities is crucial in both generating employment and stemming the flow of young people moving to the city to work or study.

Migration can drive economic growth, bringing “skills, experience, tastes and preferences that contribute vitality and vibrancy,” states the Deloitte report.

Employers, particularly in non-coastal areas, are increasingly looking to foreign workers to fill skills shortages, says Collins, who surveyed 1000 skilled migrants in regional Australia about their experiences. “Most said they had a warm welcome in the bush,” he says.

Regional cities can also build prosperity by enhancing their connections to inner cities and developing tertiary industries that employ knowledge workers.

One way to achieve this is “for governments and industry to locate significant knowledge-intensive activities in regional cities,” states the Deloitte report.

This worked in Orange, NSW, where the Greiner government moved the NSW Department of Agriculture (now the Department of Primary Industries) in the 1990s, at a time when traditional manufacturing jobs were in decline.

Today, Orange is thriving. It has a university campus and a new hospital that has cemented its position as a regional health centre. Unemployment remains low at 4.1 per cent, while property prices have risen 11.8 per cent in the 12 months to June 2017.

Back in Far North Queensland, Timmins has come to love Townsville, a city with “a country feel about it.”

“I never thought I’d see myself living in Townsville for the rest of my life, but I don’t see myself going anywhere else.”

Scott Timmins AFIML is a speaker at IML Leadership Matters Conference: 7 attributes of very successful leaders at Rydges Southbank Townsville on October 17, 2017. Book tickets here.

 

 

 

The Price of Prejudice

It pays to be prepared if sexual harassment rears its ugly head in your workplace

 

By Elizabeth Ticehurst

 

The term ‘sexual harassment’ has a ring of the 1980s about it. It evokes images of the bad old days of shoulder pads and big hair, when women were treated as workplace ornaments and expected to conveniently resign when they married or fell pregnant.

Three decades since the introduction of the national Sex Discrimination Act (SDA) in 1984, it may be disheartening to realise that sexual harassment still casts a long shadow on Australian workplaces. Yet community and judicial attitudes appear to be changing, requiring greater accountability from organisations and perpetrators.

The 2014 case of Richardson v Oracle Corporation Australia Pty Ltd and Tucker is often cited as marking a turning point in how seriously courts view sexual harassment and its effects on the victim. The complainant was initially awarded only $18,000 for general damages, consistent with a long history of the courts awarding rather small sums for sexual harassment.

However, on appeal this award was considered “manifestly inadequate”. The appeal court took into account general standards in the community and the awards of damages in cases of workplace bullying, and increased the damages to $130,000.

Large awards of damages such as this do more to hurt the employer than the perpetrator however, thanks to a provision in the SDA (and similar provisions in the equivalent state acts) that holds an employer liable for acts done by an employee “in connection with the employment of the employee”, unless the employer has taken all reasonable steps to prevent the acts. The phrase “in connection with employment” has been so widely interpreted that it can extend to an employee’s actions outside working hours, and even outside of the workplace.

In a recent Queensland case, for example, a tribunal ordered damages of more than $300,000 to be paid to a hotel employee who was sexually harassed by a fellow worker. The victim was sleeping in a hotel room provided by the employer, when she woke to find the hotel’s night caretaker naked in her room making unwanted sexual advances.

Neither employee was working at the time of the incident, but the tribunal found there was a sufficient nexus between the conduct of the caretaker and his employment for the hotel to be found vicariously liable for his actions. Importantly, the hotel had also neglected to take many steps which may have prevented the sexual harassment, including implementing a policy prohibiting discrimination and harassment, and training its workers in that policy. All of this is frustrating to employers – many would argue they can’t reasonably be expected to control their employees’ actions when they are not even present at work – but there are also indications of a common sense approach being taken.

In the 2016 case Mrs Linda Smyth v Northern Territory Treasury and Mr Doug Kerr an employer successfully showed it had taken all reasonable steps to prevent sexual harassment, and thereby avoided liability for its employee’s actions. In this case the complainant argued that a male employee had sexually harassed her at work by touching her inappropriately and sending her offensive e-mails. She alleged that the treasury was vicariously liable for this harassment, as the perpetrator had harassed her at work.

The NT Anti-Discrimination Commission found, however, that the Treasury had taken “all reasonable steps” to prevent the harassment. They had done this by:

  • Having a policy on harassment in the workplace (albeit not a policy that specifically defined sexual harassment).
  • Training employees in the policy.
  • Meeting with the victim and offering support.
  • Giving specific training to the perpetrator in the requirements of the policy, after a complaint was raised by the victim.
  • Monitoring the perpetrator in the workplace and moving him to a different desk.
  • Conducting a mediation.

The Commission noted that Treasury had taken these steps even though the victim insisted she would deal with the matter herself and did not want to make a complaint. They were therefore not vicariously liable for the perpetrator’s actions.

Employers cannot afford to be complacent about sexual harassment. The good news is that being prepared can pay off. Implementing an appropriate policy and taking prompt action to address any issues will be crucial in defending an organisation from liability.

 

  • Elizabeth Ticehurst is Special Counsel – Employment at KPMG