Developing the Right Employment Package
Written by Heather Marano
The employment market can be a maze for employers searching for the right staff as well as for someone looking for work. Not only can it be difficult to determine what particular skills and experience are worth in the market, but matching this to a position of the right value can be confusing. This is particularly the case when you add employment packages to the mix, as most people don’t genuinely understand the value of packages or the options on offer.
There are many benefits becoming increasingly available as part of employment packages such as flexible working hours, learning and development allowances, child care, health care subsidies, car and parking allowances, and mobile phone and internet allowances. These benefits can significantly increase the value of an employment package and in many cases may personally be worth more to candidates than a higher salary.
It can be confusing for employers determining which package options to employ as well as for candidates sifting through the package options to decide on which offer to accept. This is where reputable recruitment firms, especially those that are linked to the RCSA , can help. Recruitment firms can offer advice on the true value of employment packages and help match up the best opportunities.
Benchmarking employment packages against the rest of the market is essential. A good place to start is Live Salary (www.livesalary.com.au) which offers data on salaries and benefits across roles and industries. However for more in depth information, the best option is to consult a recruiter for employers to discuss options and for candidates to determine what opportunities are available and where a good fit exists.
If you need advice on employment packages contact:
Frank Marano
FM Recruitment Services Pty Ltd
Ph: 02 9802 1753
Mob: 0403 640 120
Curbing the Golden Handshake - Pay Restrictions for Executive Terminations
Under the proposed new laws, termination benefits for directors and certain senior executive employees exceeding one year's average base salary will require shareholder approval.
The Federal Government, according to its explanatory memorandum for the proposed amendments, hopes the changes will curb "excessive" termination payments to company executives, so that executive pay "keeps pace with community expectations".
visit the website http://www.blandslaw.com.au or call on 02 9805 5600 for more information.
Source: Information from Andrew Bland, Managing Partner, Blandslaw Introduction of the Fair Work Bill - Key Changes
On 25 November 2008, Workplace Relations Minister, Julia Gillard, introduced into Parliament the awaited Fair Work Bill 2008.
Earlier this year, transitional legislation was introduced, removing AWAs, introducing a "no disadvantage test" for agreements and beginning the award modernisation process.
The new Fair Work Bill seeks to implement the remaining changes save for a further transitional and consequential changes bill which is to be introduced next year that will "explain how existing employers and employees move to the new Forward with Fairness arrangements". Individual Flexibility Clauses
The Bill mandates that an "individual flexibility arrangement" clause - modeled on the flexibility clause to be incorporated into modern awards - be included in all collective agreements. The clauses under proposed section 205 of the legislation will be required to specify the particular terms of the collective agreement that can be varied by the individual flexibility arrangement. Agreements failing to include such a clause will have a model flexibility clause, to be prescribed in regulations, included as a term. The individual flexibility arrangements must meet requirements set out in proposed section 203, which requires that it be genuinely agreed and pass a no disadvantage test. Arrangements made with employees under 18 will require parental consent. Individual flexibility arrangements will be treated as a term of the agreement, making them enforceable. The Bill also requires agreements to contain a clause obliging employers to consult employees about major workplace change, and allow them to be represented during consultation. Any agreement failing to include such a clause will have a model consultation clause inserted.
Single Employer and Multi-Employer Agreement
The Bill removes the distinction between union and non-union collective agreements providing instead for single and multiple-enterprise agreements.
More than one employer can bargain for a single-enterprise agreement if they are part of a joint venture, are related corporate bodies, or they obtain a single interest employer authorisation under proposed s248. This is to apply to franchisees of the same franchisor (or similar arrangements).
Unlawful and permitted content
The Bill returns the requirement that "substantive terms" be included in agreements pertaining to the employment relationship. "Permitted matters" must pertain to the relationship between the employee and employer (under proposed section 172(1)(a)) and employers and unions (s172(1)(b)), and can include matters banned under Work Choices, such as union consultation clauses and trade union training leave. The explanatory memorandum says specific terms that would be taken to be permitted matters under s172(1)(a) would include those specifying staffing levels (particularly if directed at ensuring OHS), relating to terms and conditions for engaging casual, labour hire or contract workers (but only it relates closely enough to employees' job security), converting casual employees to permanent and preventing employers from seeking a contribution from employees for losses due to personal injuries. However "general prohibitions" on engaging labour hire workers, contractors or casuals would be outlawed, as would provisions requiring an employee or employer covered by an agreement to donate to a political party or charity, or clauses requiring employers to engage or not engage clients, customers or clients who agreed to commit to certain employment, ethical or environmental standards (unless the provision directly related to employees' job security). Deductions from employees' pay, such as for union fees, superannuation and salary sacrifice, will be lawful under the Fair Work Bill.
Fair Work Australia will refuse to approve agreements containing "unlawful content" such as union bargaining fees, provisions "contracting out" of unfair dismissal provisions and clauses allowing industrial action during the life of an agreement. Agreements will have a maximum nominal term of 4 years. They will apply 7 days after approval and will be allowed to have retrospective terms, such as backdated pay rises. Fair Work Australia will check the following before approving a collective agreement:
1. there is genuine agreement;
2. the group of employees to be covered has been fairly chosen;
3. it passes the Better Off Overall Test;
4. it has a nominal expiry date and dispute settlement clause;
5. It doesn't contain terms contravening the NES; and
6. it doesn't contain unlawful content.
"Adverse action" against employees
The new s351 will prohibit employers from taking "adverse action" against employees or prospective employees on a range of specified discriminatory grounds. Under the provisions, employees can take action in the federal, federal magistrates or state supreme courts over an employer's refusal to employ, discrimination in the terms of employment offered or imposing other detriments, although some exceptions apply.
The new provision is significant as it opens up new discriminatory grounds for employees. In NSW, for example, employees will for the first time, if the legislation passes, be able to claim for discrimination on the basis of religion, political opinion, national extraction and social origin. A copy of the Bill can be downloaded via the following link: Fair Work Bill 2008 (613 pages).
To obtain further information or discuss how the new proposed legislation might impact on your business, please contact Andrew Bland at abland@blandslaw.com.au website:- http://www.blandslaw.com.au/index.html
Success in getting the best talent for an increased competitive edge
By Karyne Ang
Personal Strategist and Performance Coach
karyne@gameplancoaching.com
Targeting the right applicants
Like any good marketing, recruitment works in a way where it’s actually knowing your audience and targeting your marketing message to the right audience. There’s so much hiring buzz going on out there, often your message does get lost. If you aren’t targeting your position to the right audience, you will get inappropriate applicants.
We must invest in our recruitment processes to ensure we have the best fresh talent that contributes to our bottom line and increases our competitive edge.
Experts in the field
Recruiters often know the industry inside and out. Armed with a good brief from the client, recruiters can add immense value because let’s face it, sometimes businesses do not have that resource or expertise internally. In the cases where there is a HR department, a client can work openly, collaboratively and strategically with a recruiting agency to ensure that they still get the best talent in the field.
Working with the best recruiters in your industry is worth the investment. Recruiters that have had a lot of experience and are specialists in their fields often win hands down because they’re living and breathing it every day. They understand what’s going on in the market, particularly your market.
What about internal recruitment? If you are going about recruiting internally, there are often different people with different ideas of what is required. The recruitment manager often needs to discern the different internal politics. The direct manager should be empowered to have a say in the recruitment process, after all, they will be working with the potential individual. Get them involved from the start, but have the balance so they are also free to do what they do best in their own specific roles in the organisation.
In terms of candidate selection, managers can do with more support in order to interview effectively. Managers and internal teams can influence the recruitment process through a framework of leadership, culture and engagement. These capabilities transcend the organisation at all levels of the employee engagement process – from attraction, recruitment, retention and exit, and can be enhanced through training, coaching and mentoring.
Most organisations have a combination of both internal and external recruiters to ensure they are getting the best picks for the role.
3 key factors for recruitment success
1. It depends on the relationship a recruiter has with a client (internal HR or managers).
2. How sophisticated clients are when it comes to hiring. For some, the briefs are vague or unclear, so it is almost impossible for a recruiter to deliver what clients want.
3. Know what you want and communicate this clearly.
The simple solution here is ..... the more recruiters can work with businesses, the more information is clarified about what is needed, and also why anyone should even consider that job would mean better quality recruiting and for accurate targeting. If the client is in a position to share a lot of information with them on the organisation, culture, values and the role, this increases the chances of a recruiter hitting the mark. This is where a recruiter can add tremendous value in matching and marketing the role to potential candidates, and getting the right talent excited about the prospects of working in your organisation.
People no longer just stroll into the offices of the Employer of Choice. We’re now all in a position where we have to work harder to attract good talented people.
In a nutshell, there is a greater need for more collaboration amongst organisations and recruiters.
It’s that opportunity where both HR and recruiters can work together more effectively, spend more time up front understanding that brief, and letting the consultant have input and then matching the best talent for the role.
About Karyne Ang: Karyne is the founder of Gameplan Coaching Services, a business committed tohelping clients assess professional career and business opportunities and develop realistic strategies to move forward. The team works with clients in a proactive way through an in-depth look at self, values and goals to achieve long lasting and positive results in their lives.
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