Resilient Porters seizes its opportunity

By Lachlan Colquhoun

 

If only he could know it, Charles Porter would be delighted that a sixth generation of his family is now working in the hardware stores which bear his name in Mackay.

Porter’s business was born of necessity and then opportunity. He arrived in the North Queensland town in the early 1880s to build a hotel and found there were virtually no building products available.

So he transported what he needed from Europe, Brisbane and Sydney by boat, and once the hotel was built he stayed behind and founded the Porter’s hardware supply business.

135 years later, Porters Hardware and Building Supplies is a fixture in Mackay but despite its longevity and strong local roots, it hasn’t always been easy for the business to thrive.

 

A BOOMING SECTOR

In fact, as Managing Director Gavan Porter (Senior) Corporate member of IML ANZ puts it, the business is only now coming out of a “perfect storm” of a volatile boom and bust cycle which severely tested its resilience.

“We’ve been through two World Wars, the Great Depression and credit squeezes, but the past four years we had a big contraction with the resource sector downturn. It was brutal,” says Gavan (Senior).

“Most of the contractions have historically been 12 to 18 months. This one went on for four years.”

However, back in the early 2000s Mackay was growing rapidly as a service centre for the resources industry. Multinational companies set up business in the city for the first time and the population increased sharply.

It created a building boom that was good news for the Porter business, where trade comprises 80% of turnover, including the company’s manufacturing divisions, which fabricate aluminium and glass products as well as roof trusses and wall frames.

The boom in Mackay also attracted the attention of bigger national hardware players. Woolworths’ failed Masters chain opened up a store, and market leader Bunnings added a second Mackay store in response.

Porters were also not the only independent operator. They had for decades been in competition with another Mackay family, the Woodmans, who had allied themselves with the Mitre 10 buying and marketing group and had a strong retail and trade presence.

“We went from one ‘big box’ store operated by Bunnings to three in total including Masters, and Woodmans had the advantage of being part of Mitre 10 with their resources,” says Gavan Porter (Junior) CMgr AFIML, who is the company’s CFO.

“There might have been room for everyone during this extraordinary growth period, but then the downturn hit.”

 

SURVIVING THE DOWNTURN

As the economy ground to a halt, the mines made employment cuts and 9,000 jobs were lost across the resources sector supply chain.

With people now leaving Mackay to find work elsewhere, new home building approvals slumped by 90%.

“This was all very new to us, because Mackay had always been a steady growth sugar and coal town,” says Gavan (Senior).

“But after all that growth, the market collapsed, and Mackay collapsed with it. It went off a cliff.”

For the first time, Porters was forced to downsize and initiate staff redundancies; a difficult process for a company where the family ethos often extended to employees.

Out of the downturn, however, an opportunity presented itself.

 

ENDING THE FAMILY FEUD

“With our external advisors we created a strategic plan in 2015 and one of the parts of that was the option of regional consolidation,” says Gavan (Junior).

“In the downturn it was clear that there were too many players in the market and the only way to survive was consolidation.”

A conversation was “struck up” with the Woodman family about a “way forward” for both family businesses, and an amicable deal was made for the Woodmans to exit the hardware supply market in Mackay and sell their retail stores to the Porters.

“It was great for two such staunch independent competitors, who had been competing in the same market against each other for decades, to come to an agreement,” says Gavan (Senior).

“It was clear that the market was very tough and there had to be an exit of one of us and they agreed to exit.”

The deal worked for both companies, and families.

The Woodmans kept other manufacturing businesses in Mackay such as aluminium and glass fabrication, roofing, and roof truss and wall frame manufacturing, where they still compete with the Porters.

That deal gave the Porters a network of stores that spanned not only Mackay and its surrounds but also extended to the Whitsunday region.

The acquisition gave Porters more stores and removed a longstanding competitor, but also introduced them to a new, and powerful, partner in the Mitre 10 group. A new licensing agreement was reached, and the company now trades as Porter’s Mitre 10.

“Mitre 10 was also a good move for us,” says Gavan (Senior). “They are a strong buying group and we needed to buy better to compete against bigger players.”

 

STRIKING UP A GOOD PARTNERSHIP

Just as timing played a role in the severity of the downturn, so it worked in the Porter’s favour in terms of Mitre 10’s own competitive position.

With the demise of Masters, Woolworths also put its wholesale hardware distribution business up for sale, and it was purchased by Mitre 10.

The move transformed the national market and made Mitre 10 Australia’s second biggest player in the hardware sector next to Bunnings.

Such was the timing that Porters went from being an independent player in an overcrowded market to being a strong second placed rival to Bunnings, with the advantage of being able to leverage Mitre 10’s brand name, buying power and marketing.

“They are the strongest partner you can have if you are an independent owner,” says Gavan (Senior). “We have always been strong in trade, but Mitre 10 is a powerhouse brand which has helped us continue to reach a retail target audience.

“And going forward we are able to use some of their benchmarking capabilities to understand where we are compared with our peers, and we’ve already been out to have a look at some of the bigger stores in the group, and this is something they encourage.”

Eight months after the deal, the acquisition is still being bedded down just as the market conditions are showing signs of improvement.

To prepare for the expansion, the Porters created an implementation plan across eight different areas of the business, from facilities management to IT and HR. Focus groups of employees, the number of which has increased by 25% to 250 across the group, were held to review and reset the firm’s culture.

The result has been the definition of five key criteria which will be ingredients of the culture moving forward: focusing on performance delivery, being driven by customer outcomes, valuing relationships, keeping everyone safe, and having fun at work. “We’ve got a way to go but we believe we are on the right track,” says Gavan (Senior).

“We’ve broadened our base, increased our trade and retail presence, and expanded our geographic footprint.

“As the economy improves we believe this will give us a solid platform.”

 

BUSINESS WITH A FAMILY FLAVOUR

The resilience of the Porter’s business, says Gavan Porter (Senior), has come from the company’s financial and management discipline which has helped it adapt to change.

A key to this has been to adopt many public company structures and processes into the way things are done, including the longstanding addition of independent directors onto the company board.

“It was my father who initiated this when he was running the company,” says Gavan (Senior).

“He understood that it had to be about the business, and not the family, and for that we needed that outside and independent perspective.”

Gavan (Senior) has been a member of the Australian Institute of Company Directors for many years, and many AICD practices are implemented at board level to create a structure and a discipline.

The company has a relationship with a firm of advisors, with extensive experience in larger family businesses, who played a significant role in creating the strategic plan which identified the consolidation opportunity and led to the Woodman’s acquisition.

“We have all the structures of a listed public company, but with a family flavour,” says Gavan (Senior).

The Porters joined the Institute of Managers and Leaders Australia and New Zealand in 1956, as they sought to keep up with changes and trends to incorporate into their business.

Gavan (Junior) has been on the local IML ANZ committee for the past five years and has pursued a qualification as a Chartered Manager. “Leadership and management is very important to me, and we have such a large staff now that I find it invaluable to share current ideas and thinking,” he says.

Female Leaders in the Strongman Era

By Nicola Field | Photo by Michael Bowers

 

Laura Tingle has a celebrated career as a journalist and author. Formerly the Political Editor of The Australian Financial Review, Tingle is currently the Chief Political Correspondent of the ABC’s 7.30 program. Leadership Matters caught up with Tingle to seek her views on the changing nature of leadership, and how different female leaders have adapted their style to achieve success in the male-dominated world of politics.

In her recent essay Follow the Leader: Democracy and the Rise of the Strongman (Black Inc.), Tingle pulls no punches about the state of leadership in modern politics. She kick-starts her commentary noting that the qualities and requirements of leadership are eternal, and observes that history is peppered with great leaders who have shaped our views of what makes a true leader. In particular Tingle observes, “Political leadership should be about building a consensus for change, giving people a map to follow, and bringing together different parties to achieve an outcome.”

It’s a definition of leadership that certainly isn’t exclusive to political circles. The same notion of a leader as someone who can inspire, motivate and galvanise a team to achieve collective goals applies in the business world also.

But that may be where the common thread ends.

In Canberra, at least, recent years have seen a revolving door of leaders, and this has forced incumbents to become more focused on controlling the inner ranks of their own party rather than guiding the electorate.

 

CRASH OR CRASH THROUGH

“There is something of a ‘crash or crash through’ approach in politics at present,” observes Tingle. “Right now we see situations – not just here in Australia, but elsewhere in the world also, where consensus building is no longer valued, and this can pervade the culture in business as well as politics.”

Tingle points to former Prime Minister Paul Keating who is often cited as an example of the ‘crash or crash through’ approach. Yet she notes that he also argued, “You have to bring the mob with you”. Tingle points out that at least Keating regarded his role as setting the right direction and then persuading enough people that he was right, to enable him to follow that path.

It’s a very different matter with some of today’s leaders. And, for many people, US President Donald Trump will come to mind as the embodiment of what Tingle refers to as “our conflicting expectations and frustrations when it comes to leaders”. Tingle’s essay sums up Trump’s presidency this way: “We are as alarmed by the apparent powerlessness of American institutions to contain or direct him as we are by the erratic ignorance and nastiness of his actions.”

The prospect that Donald Trump could be a bellwether for future leadership will be worrisome for many, and Tingle observes that he could herald the return of the strongman to politics. But how will this affect women aspiring to leadership roles – be it in politics or the commercial world?

Tingle is quick to highlight that leadership is not the same as authority and power. “Leadership can come from the foot of the table, it doesn’t have to come from the head of the table,” she says. “But whether it is in politics or business, women are increasingly holding senior, leadership positions – and that is threatening for a lot of people.”

 

A REAL SENSE OF MACHISMO

This threat can make the challenges of leadership far greater for women than for their male counterparts. Tingle notes, “There can be a real sense of machismo in the political arena, and women in politics can face an extra layer of hostility.”

From power struggles to coups, Australia’s first female Prime Minister, Julia Gillard faced both – and a whole lot more. Tingle was well-placed to observe how Gillard handled the challenges, and how she responded by cultivating her image to maintain her political clout. An inherent degree of sexism made this transformation essential. Tingle explains, “Since leaving office, Gillard has met other powerful women in politics around the world who tell stories of being in high-level meetings surrounded by men in suits, and being mistaken for one of the catering staff.”

Indeed, Gillard herself has commented that she would often take part in gatherings of world leaders, yet the Australian media would focus on the clothes she was wearing rather than any contribution she made. Tingle agrees with the former PM’s assessment: “Gender wasn’t everything with Julia Gillard. But it was certainly something.”

 

MISOGYNY HAS DEEP ROOTS

In offering an explanation as to why women in political leadership roles can face gender issues, Tingle refers to the UK’s best-known classicist Mary Beard, whose book Women & Power: A manifesto, which traces the roots of misogyny all the way back to classical Greece and Rome. Beard argues that silencing the voices of women was, in effect, a natural part of manhood, and this has established a precedent for women aspiring to leadership positions.

“Mary Beard has really drawn attention to perceptions of women – and how perceptions of power are hardwired within us,” says Tingle. “History has shaped our views about what people in authority should look like”.

Those perceptions saw Julia Gillard take steps to alter her image as a leader. Tingle describes the evolution of Gillard’s public persona, saying, “Over time, Julia Gillard transformed herself. She felt she could no longer make jokes, but rather had to be sombre and serious.”

Tingle notes that Beard argues women have tended to adopt many outward signals of ‘manliness’ in attempts to establish their leadership credentials – from dropping their voices when they speak, to wearing the ubiquitous pants suit favoured by so many modern female leaders.

She adds, “We see something similar in Angela Merkel [who has served as Chancellor of Germany since 2005], who always wears the classic pants suit.”

Not even a political heavyweight like Angela Merkel is immune from superficial criticism. In 2013 for instance, Le Journal International allowed fashion designer Karl Lagerfeld open slather against Merkel’s dress sense in relation to her “special proportions”.

Indeed, when it comes to political leadership, women tread an especially fine line with their wardrobe. The 2016 US election campaign saw Hillary Clinton blasted for wearing a $US12,000 Armani jacket. UK Prime Minister Theresa May sparked outrage for wearing a pair of £995 leather trousers.

Tingle notes, “These examples highlight how we are all struck by implications of what power looks like, and how hard it can be for women to break through this sort of nonsense.”

 

SHOULD WOMEN ADAPT?

Is it essential for women in leadership to alter who they are, what they wear, and even change their voice to fit in with popular perceptions?

Tingle refers again to Women & Power, citing questions Mary Beard raises about how women can be heard – and whether it involves exploiting the status quo. It’s no secret for example that former UK PM Margaret Thatcher followed the advice of minders to lower the pitch of her voice (and thereby sound more masculine) in order to win the 1979 election.

“We often do things to increase perceptions of our authority,” says Tingle, “and that can include changing aspects of ourselves to create a perception of male authority. It’s just what we do.” She points out for instance, that Julia Gillard “eventually developed a persona of speaking slowly to convey a sense of being in control.”

However, some women do successfully break the mould. New Zealand Prime Minister Jacinda Ardern has created a very different prototype of female leadership. Not only has she seemingly missed the memo about the need to look and sound more masculine, the announcement of her pregnancy saw her public support swell.

“Jacinda Ardern is fascinating – and an extreme opposite to someone like Angela Merkel,” observes Tingle. “She is not perturbed by motherhood, just as she wasn’t perturbed by issues over whether Russian spies were in New Zealand [which was a question Ardern faced in March 2018 following the Novichok poisoning of Sergei and Yulia Skripal in the UK].”

Tingle continues, “Jacinda Ardern just stays cool, and focuses on the important things – and this has given her an authority that she didn’t start out with.”

 

TEAM AHEAD OF SELF

In her essay on political leadership, Tingle points out that, “We bemoan a lack of leadership. Some yearn for the good old days when we had it. Yet when we get it, we sometimes don’t recognise it, and even if we do, we seldom reward it.”

She explains this view saying, “We don’t have a very sophisticated assessment of leadership. We have started to adopt a one-dimensional view of leadership, and the continuing change of leadership [in Canberra] has undermined what it means to be a leader.”

According to Tingle, our structure of government has reached the point where it is not possible for any one person to bring about significant policy change, no matter how persuasive an advocate they might be. “It means the skill and obligation of leaders lies in changing relationships within the ranks of their colleagues and the electorate so that they are not operating on their own.”

Tingle believes that effective leadership comes back to identifying self-interest versus collective interest, and cites the Labor Party as a good example of this. “Bill Shorten is not always popular among his parliamentary colleagues,” she explains. “But the collective interest of the party is what drives his team to get on with the job. This is tremendously stabilising because the Labor Party as an organisation knows it won’t get into government if it looks like a rabble.”

As Tingle points out, “This demonstrates that it is possible for people to learn to put team interest ahead of self-interest. The crucial thing is for people to understand the collective self-interest in order to make rational decisions.”

It’s not a bad maxim for managers and leaders, male or female, to follow, and it provides hope that the strongman approach won’t win out – in the business arena at least.

Kicking Goals On and Off the Field

By Lisa Calautti

 

Sport, community and professional life have always been intrinsically linked for Canberra-based Dixon Advisory associate director Genevieve Bond AFIML.

As the youngest of five children who all loved sport, some of Bond’s earliest memories were watching her siblings from the sidelines, inspiring her to have a go at most sports from a young age. As a teen she played touch footy at state level and as the famous adage goes – the rest is history. “I have just never stopped playing,” she says. “There is something about sport, it’s more than just the physical workout. It’s an opportunity to de-stress and provides a strong sense of community.”

Sport has played a significant role in Bond’s life, personally and professionally. “Most of my closest friends are those who I have met through sport, I even met my husband on the touch football field,” she says.

Professionally, experiences in sport have taught her several important life lessons – many of which have translated to the workplace. “Every person on the field has an important role to play,” she concludes. “And this absolutely relates to business, when everyone works together to achieve something, there’s a shared sense of knowing that your contribution matters.”

As if the demands of touch footy weren’t enough, Bond started playing Women’s AFL as part of Canberra club team, the Belconnen Magpies. For a long time, Bond balanced her career and love for sport; progressing professionally, playing in representative teams across both sports; and still managing to find time to volunteer across both codes. “It’s important to give back, it ensures longevity for these local clubs – who can then have a positive impact on the lives of others,” she says. Now a mum of three children, Bond has scaled back her sporting commitments, but continues to play social touch footy weekly.

It was Bond’s AFL connections that led her to becoming a member of the GIANT Hearts Canberra, a women’s business coterie linked to the GWS Giants. “It’s a group of senior women in business affiliated with the sport, and it allows us to share our love for the game and benefit from each other’s support and networks. It has formed the loveliest little community bringing women together from all disciplines; from public through to private,” Bond says.

The camaraderie between the women has been rewarding on both a personal and a professional level, helping Bond develop as a person and as a leader in her career.

“I think for me my sporting connections and experiences have been incredibly valuable from a professional perspective. I’m a strong believer that you as an individual are responsible for your development, so it’s important to do things in your own time that help you improve professionally and personally. That’s what I have always done through sport, through memberships such as IML ANZ and now through the GIANT Hearts.”

Genevieve will be speaking on the impact of financial wellness on individuals in the workplace. IML ANZ Members enjoy free entry to this event to be held in Canberra on Tuesday, 14th May. Book now to attend a Focusing on Financial Wellness session in Canberra, Sydney or Adelaide.

Harmony at Heart

By Lisa Calautti

 

Preventing heart disease and improving the heart health and quality of life of all Australians is at the core of the National Heart Foundation ACT’s mission. For its CEO Tony Stubbs, a vital element in ensuring this quest is a success depends on a united team of staff focused on this mission.

 

PEOPLE AND PROCESS

Stubbs, who has been at the helm of the foundation for a decade, manages a mixed team of 12 staff, comprising of part-time and full-time employees, as well as some volunteers and contractors. Respect for each team member is crucial to ensuring everyone works as a team, he says. “Regardless of whether they are a volunteer or a leader of a major project, it’s about listening to them and also empowering and supporting them,” Stubbs explains. “But generally giving people your respect and giving them the opportunity to grow and develop and do the best they can in the particular role they’ve been given is vital.”

That doesn’t mean that achieving team nirvana is easy for Stubbs. Quite simply, he explains it all comes back to process. It is remembering the foundation’s mission, key strategy areas and work plans so people can see how their role fits into the broader picture. Once this is set in motion, bringing all team members together to deliver a strategy is possible. “Once that’s at play, then people get on board and actually start to deliver in their programs as they are clear what they need to achieve,” he says. Once a collaborative effort is put in place, a sense of unity ensues, and a sense of accomplishment is achieved, he explains.

 

GUIDING MISSION

Keeping the foundation’s mission of reducing the impact of cardiovascular disease in the community at the fore of employees across all departments from finance, to marketing to health is vital. “Importantly, it’s about saying to them, ‘What are you doing to ensure you are working towards the mission?’” Stubbs says. “It’s also them being aware of the key strategies and what they are doing to link to the mission and support them to develop their work plans that are linked to these, so they can see what they are actually doing that ultimately goes towards achieving the mission but also the impact it has on individuals in the community.”

For Stubbs, good teamwork comes back to staff understanding how they fit into a ‘bigger team’. “Teams fall apart when there is a lack of clarity around what they are trying to achieve,” he believes. “It’s having that clear process around roles and responsibilities.” Regular performance reviews, staff meetings of all employees and frequent internal communications help foster and maintain a united workforce, Stubbs believes.

 

ONE NEW HEART

Educating the public about heart disease, its warning signs and the services available to those living with a heart condition, has helped inform the organisation’s new One Heart Strategy. “We all work in very different areas,” Stubbs notes. “For example, marketing and health program areas are different parts of the business that do different bits. But, if you allow them to go ahead and do their work alone, they’ll end up doing it solo.”

The key to achieving the strategy is ensuring all teams are working collaboratively together to develop the best possible product and be clear who is leading each process, Stubbs says.

 

PERSONAL CONNECTION

On a personal level, the values of the foundation strongly align with Stubbs. His aunt died of a heart attack on the doorstep of her GP’s practice and the effect her death had on his family was something that had a lasting impact. “She didn’t know the warning signs of a heart attack or that heart disease was an issue for women,” Stubbs says.

While the foundation’s work can be seasonal, with National Heart Week in April and May being a particularly busy period, 2019 has a steady program of events, where Stubbs concedes staff will be quite busy with little breaks between campaigns.

Major campaigns this year will include a ‘warning signs’ campaign and another targeted at people aged 45-plus to educate them about the importance of getting a heart risk assessment with their GP.

The impact the foundation’s programs has on the community, and the feel-good factor of helping others is a shared passion among the foundation’s team, says Stubbs. “In most jobs unfortunately, people get caught up in the day-to-day operations and forget what is at the heart of their work,”

Stubbs says. “For us, it’s really getting back to what are the key things we want to do to achieve our mission.”

Regularly reviewing projects and campaigns and seeing data on how many members of the wider public have benefited, in addition to hearing about specific case studies, is a rewarding aspect for all of the team. “We focus on impact not output, and it’s more about what impact our projects are having on the community,” Stubbs notes.

There’s no substitute for experience: How to overcome hiring bias against older workers

By Nicola Field

 

At a time when leaders and managers have never been under more pressure to make maximum use of resources, it’s ironic that one of the nation’s strongest resources – our army of highly-skilled and experienced over-50s – are sometimes shunned by employers.

Despite the fact that we are living 25 years longer than our great grandparents, and the age of retirement is steadily creeping upward, Sinead Hourigan FIML, Queensland Director for Robert Walters, admits: “The reality is that ageism in the workforce still exists.”

100 RÉSUMÉS, FOUR INTERVIEWS

Even the most highly-skilled professionals have encountered age bias. Neil Tucker FIML, Principal of NWT Consulting (age 76), is a former Executive Director of the Council on the Ageing (COTA) NSW. With Paul McKeon, he co-authored the 2010 book The Rest of Your Life: How to make it as good as you want, and regularly presents on issues impacting older workers. Yet he knows firsthand how hard it can be to combat ageism in the workplace. In his 50s, he applied for 100 jobs. The response from these employers? A paltry four interviews.

Tucker says the issues surrounding older workers are complex. He suggests a number of reasons behind discrimination against older workers, including “perceived lack of proficiency with technology” and even “possible concerns about an older person’s health and physical capacity to work”.

Tucker also points to what many over-50s believe is a common problem: “We are living in a ‘millennial Facebook age’ – a fast-paced, image age, where older workers are seen as less adaptable than younger people even though studies show the reverse is true.”

This finding certainly correlates with the findings of Robert Walter’s Generation Gaps survey on the prevalence of age discrimination and unconscious bias in the Australian workforce. When 900 hiring managers and 1,500 professionals were surveyed, 84% of baby boomers said they preferred exploring new ways of working over tried and trusted approaches – yet only 5% of hiring managers cited ‘being open to new ideas’ as a key strength of older workers.

While that may be a reality, Hourigan says ageism is not always so explicit. “Those involved in the engagement and recruitment of workers do not overtly prescribe a preferred age for candidates. Everybody is more aware regarding what is acceptable these days.” However, she agrees that employers can have unconscious bias based on ill-founded preconceptions around older workers.

“Workers over the age of 50 are often seen as not having the qualities employers are looking for such as ‘agility’ and being ‘open to change’,” explains Hourigan. “Yet research findings demonstrate that older workers do possess these qualities, and in fact, have a genuine willingness to adapt to new circumstances and try new things in the work environment.” Hourigan points to hardware giant Bunnings, where one in three employees are aged 50-plus, saying, “They have shown that these workers are not just highly engaged, they are also extremely loyal.”

That loyalty is not entirely surprising. Hourigan explains, “We know that workers age 55-plus are reticent to leave an organisation with concerns about being able to secure alternative employment. Because of these concerns, they tend to be more likely to remain with employers than younger generations sometimes do.”

IS IT REALLY AGE-RELATED BIAS?

Dr Shirley Randell AO FIML has enjoyed an eminent career as an educator and expert in the public sector and institutional reform in the Pacific, Asia and Africa. The benefit of global experience has given Dr Randell an international outlook, and she says ageism isn’t something she has observed overseas in developing countries where “age – and the wisdom and experience it brings – is often viewed with respect”.

She notes that here in Australia, some organisations can push out older workers but believes there may be a variety of reasons for age bias. “It does depend on the sector,” she notes, “but for those working in frontline roles, employers may prefer someone younger.”

Neil Tucker acknowledges that there can be genuine structural reasons why an older worker may be unsuitable for a role. He says some older workers may have a short workforce horizon while an employer is looking for someone who will be with the company for up to 10 years. In other instances, “Older workers are often highly skilled, and employers can be reluctant to place them in a role where they are over-skilled.”

Hourigan confirms that hiring managers can be concerned that candidates with too much experience won’t stay in a role for long, but adds, “It is possible to flesh out in an interview how committed a candidate is to a role.” She notes too that these candidates can be a fantastic addition to the workforce and offer significant value for money for employers if they are engaged effectively.

Nonetheless, the problem of ageism can be systemic. Hourigan points to professional services firms, which sometimes mandate that partners need to exit between the ages of 55 and 60. “This may be primarily designed to accommodate new partners entering into what can be a complex partnership structure,” says Hourigan. “But it can inadvertently send a message that older workers are not valued.”

THE MESSAGE TO EMPLOYERS

Our ageing workforce is likely to underpin a massive shortage of skills as the baby boomer generation exits the workforce. This alone should encourage leaders to embrace the skills and experience that older workers bring to a team. But it demands a concerted effort. Organisations don’t just need to be open to hiring older workers, Hourigan says, “They need to be proud about taking this stance and shout it from the rooftops.”

A key starting point for employers is to consider how the organisation will make older workers feel welcome. “Reflect on the language used in recruitment advertising and position overviews,” advises Hourigan. “Expressions such as ‘fresh young faces’, ‘high pressure’ or ‘fast-paced’ can create pre-conceptions in candidates’ minds that may prevent them applying for a particular role or joining an organisation.”

The interview process itself may need an overhaul. Tucker observes that, “Older workers can face barriers if the person on the other side of the interview table is uncomfortable with the idea of an older person telling them what to do.”

Hourigan certainly recommends having older workers sit on an interview panel, saying, “We have a tendency to respond better to a familiar face, and by having broader age representation on a panel, older workers are more likely to form a view that this is an organisation they can identify with.”

Post-interview feedback matters too. When older applicants don’t hear back from a hiring manager Hourigan says they will often presuppose that their age is the reason they didn’t get the job. Most importantly, employers need to focus on a candidate’s ability not their age.

AGE-SYMPATHETIC WORKPLACES

Every generation brings different biases to the workplace, and the role of leaders is to create an environment of mutual respect. Hourigan believes there are a number of steps managers and leaders can take to help older workers not just feel valued, but also be seen as valued. One course of action is to give older workers recognition. “We tend to encourage our up and coming people but it’s worth acknowledging the contribution of older employees too,” notes Hourigan.

Employers also need to consider what motivates older workers, which can be very different from employees in their mid-20s. An organisation’s employee benefits program for instance may include subsidised childcare – a perk that is unlikely to be relevant for many older workers. However, Hourigan points out that allowing time for something like ‘grandparent days’ allows older workers to connect with both family and work.

According to Dr Randell, some employers may be unwilling to invest in the reskilling necessary to keep older workers up to speed with technological advances. Hourigan says this is an area where leaders can be proactive. “Older workers should be encouraged to participate in training and development. Employers often don’t invest as heavily in older workers because of perceptions they won’t stay on.”

WHAT CAN OLDER WORKERS DO?

It’s one thing for employers to shift their way of thinking about older workers. But this will take time and, meanwhile, the struggle to gain employment can be very real for over-50s. So what can older job seekers do now to increase their prospects of landing a role?

Hourigan says that just getting in front of a hirer can make a significant difference. She cautions, “Candidates need to be aware that a younger person may be the first port of call to screen résumés, so it is sensible to take steps to avoid any age bias at this stage.” Leaving your date of birth off a résumé or removing references to the date a degree was completed can create a more level playing field.

Creating a short, sharp list of your career history helps too. According to Hourigan, employers are usually only interested in the past 10-15 years of a candidate’s work experience so it’s enough to share this and leave more distant experience off your résumé altogether.

And if you can’t beat the social media age, then embrace it. Hourigan advises candidates to be active on social media sites like LinkedIn, particularly in a professional context. “If you are aiming to secure employment in a particular industry, focus on engagement with content relevant to the sector rather than taking a scattered approach.”

OUTSIDE THE BOX

Neil Tucker says, “Ageism is really tough” and adds that it calls for “persistence and a decent serve of resilience, which can be hard.” But it can be a case of when the going gets tough, the tough demonstrate the full breadth of their resourcefulness.

Tucker notes that the different options to pursue employment will vary depending on whether or not immediate income is needed to support a professional and their family.

A worthwhile first step is to tap into professional contacts. “Only a small percentage of jobs are advertised,” says Tucker. “And older people who get gigs are often those who know someone. So look around at who you know, no matter how humbling it may be.” As he points out, if you approach 15 people and get 15 “no’s” at least you’ve eliminated your network.

A change of expectations and mindset may be necessary too, including being open to a new career or taking on part-time work. “During my time with COTA, I received an application from one guy aged 56, who had applied for more than 200 jobs,” recalls Tucker. “He was a highly skilled engineer but he eventually found work running a mature workers’ project. He’d written so many applications, his employer was at least confident he could type!”

If you have breathing space in terms of income, raising your hand for voluntary work can widen the scope of possibilities. Tucker says, “It’s about getting a foot on the first step and showing that you’ve got form. It can be hard from a financial perspective but it may lead to meeting someone who offers you a job.”

If you’re prepared to accept a career change, Tucker advises, “Consider what you love doing – and what you’re good at. If you’re good at writing you may be able to pick up part-time editing work. If you love walking, think about becoming a walking postman – so what if you’re an engineer? It all comes down to being adaptable and making the most of your entire skillset.”

A healthy dose of self-reflection can also make a difference. “Older workers need to emphasise their qualities of loyalty and trustworthiness,” says Tucker. “Be honest about yourself. Consider ‘What do people like about me?’ ‘What do people find hard about me?’ If in doubt, ask others.”

Above all, aim to stay positive. Tucker admits, “The strain around finding a role can be prodigious, particularly if you are also dealing with financial responsibilities. But don’t let anger inhibit your approach.”

HOLISTIC APPROACH

There are many steps leaders and managers can take within their organisations to combat ageism but Sinead Hourigan says we are looking ultimately at a “significant societal issue” – one that requires the support of government as well as industry. The Australian Government is investing in a skills checkpoint for older workers, which is a start but more needs to be done.

“As a society we should be talking about diversity of age in the workforce as well as gender and cultural equality,” notes Dr Randell. “The Human Rights Commission is doing good work in this space, and we could see employers set targets for the number of older people in their workplaces.”

Most importantly, as a society, we need to value our older workers. “Experience is a valuable commodity and once lost from our workforce, it will be impossible to replace,” warns Hourigan. “Without our older generation providing mentoring and support to our future leaders and managers we run the risk of missing out on the opportunity to pass knowledge through generations.”

Retain top talent without blowing your budget

By Nicola Field

For more than 50 years, IML ANZ has produced its National Salary Survey to help businesses and managers attract and retain the right talent. It’s the longest running such survey in Australia and Sam Bell FIML, General Manager – Corporate Services and Research at IML ANZ, shared the latest insights from the National Salary Survey, and what it reveals about attracting and retaining top talent without blowing the wages budget.

 

ONE IN 10 WILL RESIGN

The National Salary Survey found a resignation rate of 10% Australia-wide, according to Bell. Many managers express surprise when they see this figure, but it’s a figure that has, broadly speaking, held steady for several years.

Resignation rates do vary according to location and industry, says Bell. In New South Wales, with a strong state economy and abundant jobs, the resignation rate is 10.5%. In Western Australia, where there’s a downturn in the resource sector, the rate is far lower at 6.8 %. The highest rate of resignation – 14.1%, occurs in the banking/finance/insurance sector. At the other end of the scale, the agricultural sector has a resignation rate of just 7%.

A high level of turnover may be tolerated by large organisations with deep pockets. However, Bell points out that every time an employee moves on it costs an organisation around A$22,000 in terms of outplacement, recruitment and onboarding. That’s a significant bill, and it doesn’t include the disruption to teams and loss of productivity – or even morale – that can occur when good people leave.

 

START AT THE BEGINNING

“It’s really important to look closely at a candidate’s résumé so that you’re hiring the right people in the first place,” says Bell. “You really should be looking for a cultural fit because people who mesh with the organisation and its values, are more likely to stay longer and have a positive impact on the team.”

Interestingly, Bell says a high level of turnover in past roles isn’t necessarily a warning flag that a candidate is likely to jump ship prematurely. “In today’s world it’s unrealistic to expect an employee to stay with the same organisation for more than three to five years,” he explains.

That said, Bell believes it is important to use interview time wisely, and ask questions about why a candidate has left roles in the past. “You may get generic responses,” notes Bell. “But it is worth trying to get to the root of the problem.”

 

DITCH PERFORMANCE REVIEWS?

Annual performance reviews are entrenched in many Australian workplaces, but maybe it’s time to rethink the practice. According to Bell, organisations that do not use performance reviews enjoy lower resignation rates.

Bell explains, “Performance reviews can be a way of not addressing employee issues for 12 months. But younger people in particular, need ongoing feedback.” He notes too that it can be challenging to recall what an employee did three months ago, let alone a year ago, and questions how salary rises can be based on somewhat hazy details.

That’s why Bell recommends ditching performance reviews in favour of development plans that focus on regular communication via a weekly or monthly catch-up. “When a manager is prepared to spend time with team members it sends a clear message that the company is investing in its people and, as a result, they feel more valued,” says Bell.

For businesses that opt to ditch performance reviews, salary increases can occur on a rolling basis in line with an employee’s date of initial hiring rather than sticking to a rigid 30 June annual review.

Bell adds that if a team member is performing well, they shouldn’t always have to wait for their hiring anniversary to roll around to be rewarded with pay rise.

 

KEEP IT FLEXIBLE

Employers can send a powerful signal to their people by investing time and energy in their profession without paying for expensive courses. Bell says mentoring is an easy way to create dialogue, encourage people to hone their skills and to see the bigger picture rather than just taking a myopic view of their day-to-day tasks.

Working flexibility, such as working from home, is also highly valued by many employees. Bell points to the changing dynamics of lifestyle and technology that make telecommuting a growing trend – and one that can support staff retention: “The flexibility to spend at least part of the week working from home is a proven way to attract staff without paying any additional salary.”

Bending to employee preferences for a shorter working week can also be a way to hold onto quality talent. “Employees can struggle to find another business where they can work their preferred hours, so if a flexible working week is approved by their current employer, it definitely reduces the likelihood that an employee will move on,” notes Bell.

Offering some flexibility with start and finish times can also help, especially for employees with young children or other carer commitments. Bell says, “As long as staff know the appropriate times to schedule meetings, the system can work well.”

 

HEALTHIER = HAPPIER

A healthy employee is a productive employee – and maybe even a more loyal one. Being proactive about your team’s wellbeing can enhance retention rates.

IML ANZ’s National Salary Survey revealed some innovative practices employers are adopting to keep good people on board. These include ‘walking meetings’ and wellness days, where a masseuse comes into the business for a morning at the company’s expense. Bell notes that IML ANZ recently held a ‘bring your dog to work’ day though he admits some of the pooches did get a little unruly. Nonetheless, what matters is that the organisation is willing to try different things: “It’s about breaking up the routine and relaxing the office culture a little.”

Other wellness innovations include the use of Employee Assistance Programs. Bell explains that these typically involve a phone-based counselling service that employees can use if they are experiencing personal issues – anything from addiction through to a relationship breakdown. The service is confidential but is often costed on a ‘pay per use’ basis, between the employer and counselling service.

Taking a creative approach to annual leave is another strategy but it goes beyond bonus days off, and can include leave for voluntary activities.

A more pressing issue for many small to medium enterprises can be maternity and paternity leave. Bell notes, “They may be able to afford to top up government-funded maternity/paternity leave so that an employee receives close to their regular wage or salary. It’s a way for smaller employers to compete with the big end of town.”

Ultimately, staff retention is all about finding ways to demonstrate that you value your staff – and help them thrive in your workplace. This requires an investment of time and effort. But it’s a lot easier and cheaper than farewelling quality talent and trying to fill the gap they leave behind.

The full version of this article appeared as ‘Let’s Stay Together’ in the December 2018 edition of IML ANZ’s exclusive Member magazine, Leadership Matters.

Aiming for the summit

By Lachlan Colquhoun

 

While working toward climbing Mount Everest, Belinda-Jane Dolan CMgr FIML is using the same tenacity, abilities, and framework she employs in her mountaineering to help clients reach their own business and personal summits.

Dolan is the founder and Chief Executive of the Clariti Group, a business advisory and training company based in Brisbane. The firm operates all over Australia and around the world and has been recognised as a seven-time award winner in the annual 2017 Stevie Awards for Women in Business for its work. It delivers leadership and performance advisory and training across the globe and in some of the most remote regions of Australia.

By late 2018 Dolan will have climbed South America’s largest peak, Aconcagua in the Andes. This climb will be the fourth of the seven summits. “I’ve climbed three so far: Elbrus in Europe, Kilimanjaro in Africa and Mount Kosciuszko at home, although that was more of a jog than a climb,” she says.

Dolan’s ambition and achievements are even more remarkable given that she was born disabled and walked with the assistance of calipers until the age of five.

It was in overcoming this disability, and in proving her doctors wrong, that Dolan’s sporting and mountaineering ambition was born.

“I’m the sort of person who, if you tell me I can’t do something, it’s like a red rag to a bull,” she says.

“When they told me I wasn’t going to be able to walk, I remember thinking ‘what is the most gargantuan and audacious thing I can do?’, and that’s when I thought I’d go out and climb the highest mountains on each continent.”

Dolan’s goal-setting also extends to the Clariti Group. “Our focus is on using our company to positively impact the lives of one million and one people globally through our work. Clariti is a standout brand dedicated to building workplaces and leaders to reach their ultimate performance and, with our guidance, they truly believe in themselves that they can achieve their dreams,” she said.

Taking the symbolism of mountaineering further, Clariti is set to launch an online training program called Finding Your Own Everest as it seeks to make its business and leadership education work accessible globally.

“Whether you aim to expand your business in revenue or performance, the focus of the Climb Your Everest program is to achieve a pivotal goal, and we help guide you to reach your goals,” says Dolan.

“It’s about finding the highest point you can reach and understanding that the difference between good and great is often just a little bit more effort — that’s where Clariti comes in.”

Dolan began her career in education and formed her first company in her 20s. She has spent the past two decades living and working across eight different countries, from the US to New Zealand to Turkey and the Gulf States.

Her passion has been business education and leadership, “to bring individuals together to make great organisations remarkable.”

Part of Dolan’s passion was motivated by witnessing some negative experiences in the corporate world which were alienating talented people and creating “corporate refugees” who still had a lot to offer. However, they were frustrated with the leaders and/or the culture of their organisation, which Dolan, says, “didn’t allow them to grow and shine.”

Clariti Group seeks to embody the best of corporate culture and to promote this vision to its clients. Dolan explains, “We understand how important leadership and performance are to the success of companies both here and abroad. As a developer of leaders and high performing teams sitting on and advising boards we can directly or indirectly influence the positive outcomes of organisations.”

For Dolan, the most important quality for leaders is “relatability”. “As a leader, you have to be real, and you have to be able to understand what you are good at and what you need your team to help you with,” she says.

Dolan recently completed the Chartered Manager qualification through the IML and said the process was “invaluable.”

“Completing the qualification was a fabulous decision, and I’m so glad I did it,” she says.

“As a goal-oriented person, the process of self-reflection that this qualification instils within you was incredibly valuable. As inspired leaders, we know that reflective practice is the key to operating at your optimum in an ever-evolving business environment. The qualification provided me with the opportunity to take my practice as a leader to the next level.

“I would not have done this to the same level if it hadn’t been for the Chartered Manager program.”

Five minutes with a leader: Emma Skea

At just 21 years of age, Emma Skea IMLa started to forge a successful career. She previously worked in administration and as a paralegal at Shine Lawyers on the Sunshine Coast and now is an Administration and Operations Officer with recycling giant Remondis. Leadership Matters asked her to share five reflections on leadership.

 

1. COMMUNICATE

I am still quite young and I am still learning, but I observe a lot and have managed staff myself. I recognise that communication is the most important thing. You have to be honest as an employee and as an effective leader. Communication is something that you must learn and adjust to. In my workplace, we work in very close teams, and communication is essential. We have several team huddles throughout the week to ensure we are all in constant communication. Our team huddles allow us to touch base, as well as bounce ideas off one another.

 

2. BE HONEST

If you are having a problem with something or someone, you need to fix it. It needs to get sorted in a constructive way where all parties can agree on the outcome. Regardless of the size of your team or where you rank, if a resolvable issue is at hand then honesty is the best policy.

 

3. PERSONAL DEVELOPMENT

Personal development gives you tools along the way to grow your capabilities. Ten per cent of your salary every year should go toward personal development. It’s a great way to expand your knowledge and skills as well as network and meet people in a similar industry, or even the complete opposite. I myself take it as an opportunity to get to know my community as well as grow my skill set and knowledge.

 

4. SET AN EXAMPLE

I worked in hospitality and, when I was running events, I would have 30 staff with 500 people attending and it could very easily turn into a high-pressure situation. One thing I took out of it, was that everybody has to be on the same page. If the manager is saying one thing and doing another, not only is it a bad look, it gives extra room for errors and doesn’t allow you time to perform at your highest standard. The best teams are headed by strong managers who nurture growth and play to their team’s strengths.

 

5. BE KIND

I have always been told: do to others as I would like done to myself. If you are kind to your colleagues and team, especially in a high-stress workplace like a law firm, that kindness is contagious. Being kind is such a little thing but it can change someone’s day and mindset. The happier you are as a team, the more productive you will be.

Data detective: Harnessing machine learning

By Emma Mulholland

 

Many of us don’t realise that, as we go about our days, we leave long data trails behind us. When we use our smartphone, for example, not only is our location and interlocutor recorded, even the way we hold the headset is. Is that a bad thing? It can be, says data innovator Shashank Pawar MIML. But in the right hands, he says, our data can help us take control of our financial future.

Pawar has worked at Microsoft for 19 years, where he oversees healthcare and banking portfolios. His mission is to bring back customer service – albeit in a modern, digital way. “I think about my mum and dad’s experience of banking,” he says. “They used to deal with one person at a local branch who knew everything about their lifestyle. He knew how old their kids were and would say, ‘Why don’t you set up a college fund?’ There was a level of service that we’re not enjoying today, even though the banks probably have more information about their customers than they’ve ever had.”

A computer science graduate, Pawar helps organisations store and protect customer data and put it to work (under Australian legislation, companies keeping information must have customer consent).

“I help my clients get the most out of the biggest asset they have within their organisation, which is data,” Pawar says. “When a person walks into a bank, essentially everything is recorded: the time it takes to solve their enquiry, the nature of the transaction and the money involved. That data becomes a competitive difference: it’s something you know about your customer base that your competitor doesn’t.”

And that’s where artificial intelligence comes in. Pawar develops algorithms that can sift through millions of these recorded interactions, establish patterns and make predictions about each customer. In years gone by, it could take up to a year to set up an algorithm; with cloud computing, Pawar can now run tests in a matter of days.

He hopes to create the banking equivalent of Spotify, a music-streaming service that uses machine learning – based on tracks played by the listener and their friends – to suggest new playlists. “Why can’t we do that with financial advice as well?” Pawar asks. “The bank knows my peers’ spending habits so if I’m aiming to save a large amount of money, it could tell me what other people my age, who managed to reach that goal, did – it might be shopping at alternative grocery suppliers.”

Pawar imagines a future where no-one will have to wait in line at the bank. Instead, organisations will analyse data and predict their customers’ needs. “Then we can use digital technology to text them the solution,” he says. “Or the next time they pop in to a branch, a friendly face will come and say, ‘This is what you’ve been looking for.’ The interaction is seamless – we seem to know about the customer and can give them personalised service. That’s the vision.”