Changes to the demographic make-up of your organisation can have profound impacts on organisational culture – both in a positive and negative way, depending on whether you create the conditions that allow for cohesion.

A high-performing, multi-generational workforce requires a selection of specific behaviours and cultural elements, namely inclusive learning cultures that “celebrate differences and embrace mistakes” and encourage different communication styles, according to a research team from the Centre for Work, Organisation and Wellbeing at Griffith University.

Boards and senior HR management teams need to ensure they understand how changes in demographic trends might require a refresh of certain organisational practices, says demographer and social commentator Bernard Salt AM.

For example, we’ve seen a rise in Australian life expectancies, which jumped from 69 in 1950 to a current 83 for men and 85 for women, he says.

“Before, people worked up to the age of 65, got a gold watch and retired,” says Salt, who is speaking at AHRI’s National Convention and Exhibition in August. 

But the nature of work has changed. 

“In the 1950s or 1960s, many of the jobs were in manufacturing, or labouring in areas like building and construction,” says Salt.

“If you were a blue-collar worker and made it to 65, you usually couldn’t work anymore because of the physical consequences of having worked with your body from the age of 15. You needed to take the pension and retire.

“Today, a greater proportion of the workforce is involved in knowledge work. Medical advancements are also improving our quality of life and life expectancies, providing people with more opportunities to continue work beyond the age of 65.”

On top of this, the current cost-of-living crisis means many people are less prepared for their retirement years and have had to go back to work, he adds. This is a concept known as ‘The Great Unretirement’.

“By default, we’ll end up with a greater proportion of our workforce over the age of 50 and, proportionately, around the age of 70,” says Salt.

Hear more about the future team member of 2030 from Bernard Salt AM at AHRI’s National Convention and Exhibition on 20-22 August. Secure your spot today.

The Bunnings approach

A company that is already preparing for this demographic shift is Bunnings, which claims age is never a barrier at any of its stores. 

Around 30 per cent of its store team members are aged 50+ while around 14 per cent are aged 60+. Its oldest employee is 93 years old.

“We learnt a long time ago that older and more experienced team members are an integral part of creating a great place to work and providing our customers with the best experience. They have significant life and industry experience, making them a wealth of knowledge for our customers and wider team,” says Damian Zahra, Bunnings’ Chief People Officer. 

“Every organisation is different and there isn’t a one-size-fits-all approach to engaging older people in the workplace.”

Having said that, he adds that Bunnings believes creating a supportive environment for older workers starts with flexibility. 

“We do this by first and foremost offering casual, part-time and full-time working options because we know it’s an important way to keep your team engaged and supported in their wellbeing and performance. 

“Fewer people aged 15 through to 25 are funnelling into the workplace. A shallower pool of youth coming through means there will be a skills shortage for decades.” – Bernard Salt AM, demographer and social commentator

“Then there’s the extras like our popular ‘Travelling Team Member’ program where people can pick up casual shifts at different Bunnings stores while they travel across Australia and New Zealand.

“A team member can map out their desired travel journey and proactively contact stores in the areas they’re visiting to see if any casual shifts are available. They have the flexibility to work as much as they like based on their travel schedules and preferences.”

Zahra says Bunnings’ ‘Retiring Well’ program helps older employees implement a tailored pathway to their retirement. It includes the option of reducing their hours over time to support a gradual transition into retirement, and a dedicated program that provides advice on how they can enjoy financial, emotional and physical wellbeing in their retirement.

Safety is also a priority. 

“We have extensive training and guidelines in place to make sure all our team return home safely each day and feel equipped to perform their roles. 

“This includes ongoing professional development so our team members always feel confident and engaged at work, regardless of their age. 

“We often find our older team value training just as much as our younger cohort.”

Not only is Bunnings creating environments to support its current older workforce to thrive, it’s also actively looking to bring more age diversity into its business.

“We maintain a really flexible recruitment process and use as many channels as possible to reach the communities we serve,” says Zahra. “For example, we place posters around our stores that highlight the great careers of some of our older team members to demonstrate the value mature-aged people can bring to our business.

“We always try to use neutral language in all our recruitment materials, and avoid specific words or phrases that target younger generations. We also accept walk-in resumes to ensure we consider applicants who may not be tech-savvy.”

Read HRM’s article on how to create an age-inclusive culture for the multi-stage career. 

Counting the benefits 

Demographic diversity is a key component of a thriving workplace culture, but when there are no intentional processes around leveraging a multigenerational workforce, it can cause friction points to surface. 

For example, communication barriers can form or differing work styles could lead to conflict within a team. To remedy this, specific programs that cultivate empathy and understanding can help. 

For instance, you could consider:

• Storytelling sessions to give employees the chance to share their career stories with each other, including what they’ve learned, their challenges and their greatest successes.
• Keeping age diversity in mind when building project teams.
• Setting up shadowing programs allowing employees to shadow colleagues from different generations to gain a better understanding of their roles and expertise.

Companies that employ older workers benefit from their corporate knowledge, networks and ability to train and mentor younger workers, says Salt. 

This is an approach that Bunnings has embraced.

“By sharing their knowledge, skills and life experiences, our older team members often become mentors to their younger teammates, which goes a really long way in helping form strong connections and creating a positive working environment,” says Zahra.

“Mentoring can work both ways, and our younger team members can support older workers too.”

There are also opportunities to promote shared learning via reverse mentoring programs whereby junior employees train seasoned employees in relevant areas, such as how to reach a younger audience on social media. 

You could also consider facilitating a skills-sharing workshop where employees of all ages come together to share their knowledge in specific areas.

Griffith University’s research found that valuing co-creation, a strong focus on job satisfaction and tailored HR programs were key characteristics of a thriving multigenerational workforce.

For example, a specific HR program focused on retaining older workers in critical skill areas could help solve Australia’s skills shortages, which Salt believes will be a long-term challenge for employers. 

“Fewer people aged 15 through to 25 are funnelling into the workplace. A shallower pool of youth coming through means there will be a skills shortage for decades.”

If your workforce isn’t yet set up to support employees in the latter portion of their careers, now is a great time to learn from those who already have robust strategies in place. 

This article first appeared in the June-July 2024 edition of HRM Magazine.

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When organisations are faced with crippling, complex and seemingly unsolvable culture challenges, they often put sole responsibility on the HR team to ‘fix’ the problem. But this rarely works because you can’t outsource culture to a single function in the business – it needs to be deeply embedded into all of your business practices.HR practitioners aren’t the keepers of culture – they are the culture leaders and enablers. They set the scene and provide leaders and managers with the tools they’ll need to help their teams live out the organisational values in an authentic and impactful way.

In this episode of Let’s Take This Offline, Siobhan McHale, Executive General Manager of People, Culture and Change at Dulux and speaker at this year’s AHRI National Convention and Exhibition, offers a range of practical frameworks to help HR practitioners reframe their role from ‘business partner’ to ‘business leader’ and offers advice to help HR have a greater impact at an executive level when it comes to driving culture transformation projects.

Skip to the section that interests you most:

• 5:37 minutes: How to get buy-in for culture change without having to take ownership of it
• 8:00 minutes: McHale explains the difference between a culture disruptor and a culture leader.
• 15:15 minutes: Tips to help identify patterns in your culture.
• 20:17 minutes: Advice on how to look at culture from a commercial perspective.
• 30:00 minutes: The difference between emotional intelligence and group intelligence.
• 35:33 minutes: How to get change resistant people over the line.
• 40:55 minutes: McHale responds to a made-up scenario about a CEO whose too focussed on short-term results to focus on long-term culture impacts.

Check out the episode transcript here.

Extra resources:

For more conversations to inspire HR, listen to season one of Let’s Take This Offline here.

If you’d like further information and resources to help put McHale’s insights into action, check out the links below:

Learning opportunities

• Sign up to AHRI’s National Convention and Exhibition⁠ in Melbourne on 20-22 August to hear more from Siobhan McHale.

Further reading

• Learn more about Siobhan’s books here.
• Read this article where Siobhan shares more details about how to become a culture transformer.

Member-exclusive content

• AHRI members can Join the ⁠AHRI LinkedIn Lounge⁠ to connect with your peers and for access to a member-exclusive bonus episode.

Connect with us

• ⁠Connect with AHRI on LinkedIn⁠.
• ⁠Connect with Beth Hall CPHR on LinkedIn⁠
• Connect with Siobhan McHale on LinkedIn.
• Visit Siobhan’s website.

Subscribe so you never miss an episode. You can follow the podcast on Spotify, Soundcloud or Apple Podcasts. AHRI members receive exclusive bonus content via the LinkedIn AHRI Lounge.

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Most people have heard a version of the saying ‘good leaders ask good questions’. It’s less common, however, to think about asking a good mix of different types of questions.

“When you read about this in management literature, you get insights like, ‘Good questions are follow-up questions or open-questions, but [leaders need] a little more guidance than that,”  says Arnaud Chevallier, strategy professor at IMD Business School in Switzerland.

Particularly for first-time leaders, the tendency to jump into solution mode before letting curiosity play out can put many organisational elements at risk, such as innovation (if we don’t ask questions to surface everyone’s ideas), psychological safety (if people don’t feel they can push back on an idea) and wasting time or resources (if we put all our energy into solving the wrong challenge).

That’s why Chevallier has spent years determining five types of questions that he and his co-researchers believe will help leaders and organisations to operate on a deeper, more strategic level.

“I think all executives and professionals should develop a mindful set of questions that they’re constantly updating to serve them better in the decisions they’re making,” says Chevallier.

5 types of questions

Over three years, Chevallier and his co-authors Frédéric Dalsace and Jean-Louis Barsoux, also professors at IMD, conducted interviews with hundreds of top-performing executives to learn about their favourite types of questions.

“Then we refined them using the Delphi method and organised the questions into general buckets.”

They also conducted a robust literature review.

“Management executives aren’t trained to ask questions, but other professions are – physicians, psychologists, journalists, lawyers. We wanted to learn as much as we could from those other fields [whose workforces] have thought long and hard about the meaning of questions.”

From this research, they first determined four types of question, which are as follows:

1. Investigative questions

These types of questions follow a similar line of thinking to Toyota’s ‘five whys’, says Chevallier.

“This is epitomised by the ‘what’s known?’ type of question. Investigative questions help you probe the root causes of the problem, and help you to go deeper into the decision you need to make.”

Examples:

• What is and isn’t working?
• What are the causes of the problem?
• How feasible and desirable is each option?
• What evidence supports our proposed plan?

2. Speculative questions

Going deep with investigative questions is important, but not sufficient, says Chevallier. 

It’s also useful to go broader with your line of questioning. This is where speculative questioning comes into play.

“We epitomised speculative questions within ‘what if?’ For example, ‘What if we didn’t care about costs?’ or ‘What if we could relax these other constraints?’

“[These questions] foster innovation by challenging the implicit or the explicit assumptions we come to in our decisions.

“For HR professionals, who are addressing the human component of [work], you really need to develop your subjective question mix so you’re always asking yourself ‘what’s the actual meaning that’s going on behind the words?’”

Examples:

• What other scenarios might exist?
• Could we approach this differently?
• What else might we propose?
• What can we simplify, modify, combine or eliminate?
• What potential solutions have we not considered?

“All executives and professionals should develop a mindful set of questions that they’re constantly updating to serve them better in the decisions they’re making.” – Arnaud Chevallier, strategy professor, IMD Business School

3. Productive questions

It’s also important to have a set of questions that are designed to move processes along, says Chevallier. He refers to these as the ‘Now what?’ questions.

“They’re here to help us adjust the pace of the decision making – sometimes accelerating it because the deadline is coming, or sometimes slowing down because we’ve come to a decision with a preconceived mindset or there might be cognitive biases that are crowding our judgement.”

Examples:

• What do we need to achieve before we advance to the next stage?
• Do we know enough to move forward?
• Do we have the resources to move forward?
• Are we ready to make a decision?
  

4. Interpretative questions

Interpretative, or sense-making, questions help us take what we’ve learned from our investigative, speculative and productive questions and turn them into insights.

“[These questions] are epitomised by the ‘So what?’ Okay, we’ve figured out this one thing, what is that telling us about our overarching goal?'”

Examples:

• What did we learn from this new information?
• What could this mean for our present and future actions?
• How does this fit in with our overarching goal?
• What are we trying to achieve?

Chevallier and his colleagues were originally happy with these four types of questions, but after analysing the insights gleaned from their discovery sessions with the executives, they realised something was missing. 

They needed a question type that surfaced the many things that are often left unsaid, which led to the addition of a fifth type of question.

5. Subjective questions

“We’re not dealing with robots. We’re dealing with people. In every conversation, there are hidden emotional or possibly political sets of insights. [In these cases], it’s [important] to figure out the meaning behind the words,” says Chevallier.

For people managers, this is where you might uncover people’s frustrations, tensions or hidden agendas. People’s answers to these types of questions can often lead you down a completely unexpected (and often critical) pathway.

From an organisational perspective, subjective questions can protect a business from risks such as wasted budgets, reputational damage and causing dissent or disengagement to brew in teams.

Examples:

• How do you feel about this decision?
• What aspect of this most concerns you?
• Are there any differences between what was said, what was heard and what was meant?
• Are all stakeholders genuinely aligned?
• Have we consulted all the right people?

Learn how to hone your leadership and management skills with this short course from AHRI.

Curious cultures

While Chevallier and his colleague’s research didn’t go into detail about the cultural environments that are required to allow for these types of questions, his opinion is that trust and psychological safety are key to making these types of questions effective.

In an article for Harvard Business Review, they wrote: “Team members may be reluctant to explore emotional issues unless the leader provides encouragement and a safe space for discussion. 

“They may fail to share misgivings simply because no one else is doing so – a social dynamic known as pluralistic ignorance. Leaders must invite dissenting views and encourage doubters to share their concerns.”

You also need to choose your timing wisely when asking certain questions, says Chevallier.

“If you come into a new position and start asking a bunch of speculative questions, it might be too early. You might first need to establish those relationships with people.”

Read HRM’s article about how to build social capital in the workplace.

Auditing your question default

Chevallier and his colleagues have created an interactive tool – which will launch later this year – to help leaders assess which type of questions they default to. For example, you might complete the assessment and discover you have very few points allocated to speculative questions.

“[In that case], you could make a list of 10 speculative questions and, ahead of a meeting, highlight a couple that you’d like to ask,” he says.

There’s no specific mix of questions to ask, he adds. The research isn’t suggesting every situation calls for one of each type of question.

“You might ask five different investigative questions. It depends on the specific situation. 

“The five types of questions, hopefully, help people realise that there are various ways to look at a problem or a decision. Before we follow our muscle memory into one direction or another, we should periodically step back and ask, ‘Are we still going in a productive direction?’

“The world of today is not like the world of yesterday. We absolutely need to update the way we make sense of it or we’re at risk of not being able to decipher it.”

Example questions listed in this article sourced from Dalsace, Barsoux and Chevallier’s article on their research in Harvard Business Review print edition (May-June 2024). You can read the online version here.

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Employee surveys, also known as pulse or culture surveys, can often serve as an early warning system for employers. They reveal work health and safety risks that an employer may not otherwise know about before it’s too late. 

Conducted anonymously, and often by an external organisation, these surveys can uncover a range of issues, from physical safety hazards due to inadequate equipment, to intangible hazards like the psychological impact of high workloads or systemic discrimination and bullying.

While a physical safety hazard that is called out in survey results, such as lack of PPE or dangerous plants or equipment, may be quickly and easily mitigated, psychosocial safety hazards can be harder to address. 

This article offers a practical guide for employers on what to do when employee pulse or culture surveys results indicate psychosocial work health and safety risks in their workplace.  

Australian employer obligations around psychosocial risks

Ensuring the safety and wellbeing of employees is a critical priority for employers. The Work Health and Safety Act 2011 (Cth) (WHS Act) and various state and territory laws lay down a robust framework requiring employers (broadly defined in the legislation as “person(s) conducting a business or undertaking”) to ensure a safe working environment for their employees. 

Employers are required to eliminate risks to the health and safety of workers as far as is reasonably practicable. If elimination is not reasonably practicable, employers must minimise those risks as far as is reasonably practicable. 

“Health” is defined as both physical and psychological health, meaning that as part of its primary duty, an employer must manage risks to a worker’s psychological health as far as is reasonably practicable. Some states and territories also now have regulations expressly requiring psychosocial hazards be eliminated or minimised. 

Psychosocial hazards refer to aspects of work and workplace situations that may give rise to a risk of physiological harm caused by the associated stress response. For example: 

• bullying, sexual harassment, and poor workplace relationships 
• high or low job demand and low on-the-job support 
• low job clarity or control, or lack of recognition and reward 
• poor systems of organisational change management, and organisational justice (where policies/decisions are applied unfairly or unequally)
• poor environmental conditions, and remote or isolated work. 

Employers also have obligations under the Sex Discrimination Act 1984 (Cth) and the Fair Work Act 2009 (Cth) to prevent the psychosocial hazards of sexual harassment and bullying from occurring. Employers can also be vicariously or accessorily liable for sexual harassment and bullying occurring. 

Assessing employee surveys to identify hazards 

Employers must scrutinise survey results for indicators of psychosocial risks. 

Some surveys will directly – but anonymously – allow employees to report disrespectful or toxic behaviour, bullying or sexual harassment. Depending on the structure of the survey, this can be through free-text responses, or targeted agree/disagree statements such as, “I have not experienced bullying or harassment at work” or, “I have witnessed or been subject to conduct of a sexual nature in the workplace”. 

Answers which indicate that the workplace is not free of bullying or harassment will put an employer on notice of a possible hazard that it must address.  

Other indicators of latent, unaddressed psychosocial hazards can be identified via poor scores in response to questions such as: 

• “I am confident I can report issues to my manager, and they will take them seriously.” (May possibly indicate poor organisational justice and possible unreported behavioural, bullying or harassment issues.)
• “I understand how decisions are made about my role and my career progression.” (May possibly indicate low job control, clarity or lack of reward and recognition.) 
• “I think the organisation holds people accountable for their unsatisfactory behaviour and actions.” (May possibly indicate unreported behaviour, bullying or harassment issues.) 
• “My manager allows and encourages me to make decisions and take responsibility for my work.” (May indicate low job control, low job demand and poor workplace relationships.) 

Acting on findings from employee surveys

Results from employee surveys that indicate a psychosocial safety hazard mean that an employer is on notice of possible safety risks. It must then take steps to apply the WHS risk assessment framework. Once a risk is identified, it must be assessed and controlled with measures to mitigate the risk. 

To properly identify and assess the risk, it is particularly important to be able to drill down into department, division, location or manager-level results. Where an employer can do so, it can use the survey results to decide on next steps, and assess and control identified risks more effectively. 

If not, a follow-up survey may be the first step, with more targeted questions and increased ability to filter results and determine areas of the business where psychosocial hazards are an issue.

Otherwise, depending on the scope and nature of the issue, and the extent to which results can be filtered to narrow in on where a problem may exist, we recommend the following identification and assessment measures: 

• HR meets with line managers or supervisors in an identified division or work group to discuss the survey results. HR representatives should be prepared to ask managers specific questions and may need to have hard conversations with managers about why the results are poor. These meetings should be followed up to ensure that managers are taking necessary action as required. 
• Additional monitoring by HR of an identified division or team, including arranging catch ups with members of the team to discuss wellbeing and experiences. 
• Engage experts to conduct wellbeing interviews with members of a team with poor survey results, to gather more specific information about concerns in that team.  
• Engage experts to conduct a culture review investigation by interviewing people throughout the organisation or selected teams to gather information about culture, leadership, organisational justice and misconduct management. 
• Review the practical impact of organisational policies and practices such as performance review processes, grievance handling procedures, remuneration and recognition.  
• Establish employee culture consultation committees or working groups to provide and collate information about psychosocial risks across business units and to provide specific and real-time feedback about how to address issues.   
• Review and promote the organisation’s grievance procedures and reporting mechanisms, including giving assurances about encouraging a “speak up” culture and having a no-tolerance approach to victimisation. 
• Introduce “contact officers” or “go-to” people for workers to report issues outside of the human resources and leadership teams. 
• Roll out training for line managers and supervisors on topics such as leadership, respectful behaviour, psychosocial safety, workload and capacity management and handling complaints. 

Understanding legal professional privilege 

When investigations, culture reviews, wellbeing interviews or other information gathering is conducted, we recommend seeking legal advice and, if possible, having external counsel conduct or engage culture reviews. This will ensure, as far as possible, that any findings about current psychosocial hazards in the workplace are covered by legal professional privilege* and legal risks can be mitigated confidentiality and effectively. 

In our experience, employers that take these steps following any concerning pulse survey results will be demonstrating compliance with their work health and safety duties. By acting on the early warning signs contained in survey results, employers can more effectively mitigate the risks associated with psychosocial hazards. The practical benefit of this, as well as being legally compliant, is a healthier, safer and more productive workforce, with higher retention rates and a reputation as a great place to work. 

*Legal professional privilege protects confidential communications and confidential documents between a lawyer and the client where they have been made for the dominant purpose of the lawyer providing legal advice or professional legal services to the client (or for use in current or anticipated litigation).

Aaron Goonrey is a Partner and leads the Australian and APAC Employment & Rewards practice at Pinsent Masons. Emma Lutwyche is a Special Counsel and Yuliya Chis is an Associate at Pinsent Masons. The advice in this article is general in nature and does not constitute formal legal advice.

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Nearly half of employees in Australia and New Zealand (48 per cent) are experiencing daily workplace stress, according to recent research from Gallup. 

Gallup’s State of the Global Workplace 2024 report revealed that stress levels in Australia and New Zealand are 17 per cent higher than than the global average. What’s more, just a quarter of employees in this region report feeling engaged at work. Around two thirds (64 per cent) are passively disengaged, while 11 per cent are actively disengaged – i.e., taking actions that directly harm or obstruct the organisation.

“When people are stressed and disengaged, at best, they’re ambivalent, and at worst, they’re actively working against the organisation’s goals,” says Claire de Carteret, Managing Director, APAC at Gallup.

“That can have an impact on customers. It can have an impact on [the employee’s] own feelings of efficacy. And it can even go so far as to impact their physical health.”

Below, de Carteret offers research-backed advice for HR and managers to address workplace stress in the short, medium and long term. 

Short-term strategy: Intervene with the right questions

Short-term exposure to stress at work is unlikely to do serious damage – in fact, some forms of temporary stress have been shown to benefit performance and motivation. However, left unchecked, stress can cause our bodies to be in a constant state of stimulation, increasing the risk of serious harm to our mental and physical health.

In light of employers’ new legal obligations to manage psychosocial hazards at work, it’s particularly crucial for both HR and managers to be vigilant in recognising early signs of stress among employees to address them before they escalate, she says.

According to SafeWork NSW, some of the most common stress symptoms to look out for include: 

• Physical: headaches, tiredness, slow reactions, shortness of breath.
• Mental: difficulty with decision-making, forgetfulness.
• Emotional: irritability, excess worrying, feeling of worthlessness, anxiety, defensiveness, anger, mood swings.
• Behavioural: diminished performance, withdrawal, impulsive behaviour.

Regular, meaningful check-ins with employees are the best way to catch these symptoms early, says de Carteret.

“​They don’t have to be long conversations – just 15 to 30 minutes every week – and then you’ll build a fluency around [that person], which allows you to recognise when someone is struggling.”

To get a well-rounded view of how the employee is feeling and the best ways to support them, you can ask questions such as:

1. Open-ended questions to encourage employees to share their feelings and thoughts in detail.

• How are you feeling at the moment?
• Can you tell me more about what’s been on your mind lately?
• What aspects of your work are you finding stressful?

2. Specific questions to pinpoint particular areas of concern or sources of stress.

• What specific tasks or situations are causing you stress?
• Can you think of any particular moments or events that caused you stress? 
• What was it about that event you found stressful?

3. Supportive questions to show empathy and willingness to help.

• How can I better support you in managing your workload?
• What can we do to make your work environment more comfortable?
• What resources or support do you think would help you manage your stress?

“[These conversations] open up a pathway for the employee to talk about when things are not going right, when they need help, when they’re struggling or when they need time off,” says de Carteret.

When symptoms of stress are identified, interventions should happen promptly to avoid the issue snowballing. Based on employers’ responsibilities under the new psychosocial safety code of practice, WorkSafe Victoria has developed a five-step guide for managers to conduct these short-term interventions: 

1. Make contact. Arrange a confidential meeting time and location and consider what you want to discuss and achieve.

2. Explore the issues. Ask open-ended questions and listen attentively. It’s helpful to state the behaviours you have observed and your concern, and discuss potential factors driving the stress, which could be internal or external.

3. Develop options and offer support. Work together with the employee to explore potential workplace adjustments that could be made to support them, taking into account operational demands. If the employee’s direct manager is the stress source, ensure alternative support is available. Inform them of available resources both in and outside the workplace.

4. Agree on action. Decide on specific steps and agree on follow-up actions and review times.

5. Stay in touch. Follow up regularly, ensuring clear outcomes and agreed follow-up frequency.

Frameworks like this can offer structure to these conversations for managers who might not feel confident initiating them, says de Carteret.

“We need to give them tools to support them in the science of those conversations,” she says. “Because if we just leave it all up to art, some people do it well, and some people don’t – that’s just human nature.”

Medium-term strategy: Empower managers to address workplace stress

Given that managers have a disproportionate impact on employees’ experiences at work, medium-term strategies to address workplace stress should focus on supporting and empowering middle management.

Positive management practices are more than half the battle in mitigating workplace stress; according to Gallup’s findings, those who work in companies with bad management practices are nearly 60 per cent more likely to be stressed than people working in environments with good management practices. 

“We don’t want to villainise managers because they’ve got the toughest job at the moment. When they’re feeling overwhelmed and they’re not supported by their direct manager, then it’s hard for them to cascade [that support] down. They revert back into survival mode, which is the opposite of a growth mindset.

“So [HR should] focus on supporting that manager population first because when they’re engaged, connected and energised, then they will energise, connect and support their teams.”

Beyond providing managers with mental health support of their own, HR can also equip managers to address employees’ needs by providing training in areas like coaching, trauma-informed practice and mental health first aid.

Gain the knowledge and skills necessary to conduct workplace processes in a trauma-informed manner with AHRI’s Trauma Informed HR short course.

Given that managers tend to experience more stress than their direct reports, de Carteret stresses the importance of framing this training the right way so it doesn’t feel like an additional burden on their time or energy.

“They have to believe that it’s going to be an enabler for them,” she says. “They have to see the connection between [reducing stress] and delivering performance and profit. That way, it’s less about giving them more to do and more about giving them skills to be more effective.”

“[HR should] focus on supporting that manager population first because when they’re engaged, connected and energised, then they will energise, connect and support their teams.” – Claire de Carteret, Managing Director, APAC at Gallup.

Long-term strategy: Create a culture of recognition and development

Effectively mitigating stress in the long-term requires a sustainable approach that goes beyond immediate interventions and manager training. 

No matter how effectively managers can respond to stress in the moment, these measures are only a band-aid without long-term cultural change.

One of the most effective ways to mitigate stress in the long term is by creating a robust and meaningful reward and recognition program, says de Carteret.

“Everyone just wants to be acknowledged for their contribution. If you don’t feel like someone’s seeing what you’re doing or acknowledging and appreciating it, it can have such a big impact,” she says.

“[In our research], we see a big gap between how managers rate themselves in terms of recognising their teams and the way their direct reports rate them recognising the teams. It’s a bit of a blind spot for managers.”

It’s in employers’ interests to close this gap, she says, since a lack of reward and recognition is one of the 14 psychosocial hazards put forward by SafeWork Australia as part of the new code of practice. 

Another important long-term stress management strategy is ensuring employees feel challenged in a healthy way.

Read HRM’s article on how to push employees out of their comfort zone (without pushing them too far).

“Something else we’ve seen in our research is that when people can use their strengths, they are three times more likely to report having an excellent quality of life, and they’re six times more likely to be engaged,” says de Carteret. 

“So if people understand what their strengths are, and they can find a way to use them every day, then they’re energised through that.”

Leveraging recognition and opportunities for growth helps ensure that any pressure employees experience is temporary and productive rather than prolonged and draining. 

Driving these cultural shifts while ensuring that immediate support systems are in place is the key to alleviating workplace stress and, crucially, improving employees’ overall quality of life, says de Carteret.

“The workplace can be so fulfilling and developmental, and it should have a positive impact on people’s lives,” she says. “The only thing we do more than work is sleep, so we have to [make sure] it’s fulfilling.”

Improve your ability to recognise the signs and symptoms of mental health conditions and learn effective strategies to manage health and wellness in the workplace with AHRI’s Mental Health at Work short course.

The post A guide to responding to workplace stress in the short, medium and long term appeared first on HRM online.

When sports psychologist, culture coach and author Dr Pippa Grange was recently tasked with helping a tense team navigate a high-stress acquisition discussion, she intervened with a surprising activity.

“I took them trampolining. Everybody said it was ridiculous, but within 10 minutes they were all laughing. It broke the tension and helped them regain perspective,” says Grange, who is a keynote speaker at AHRI’s upcoming National Convention and Exhibition in Melbourne, and is also conducting a masterclass on identifying and leveraging deep wins at work.

“Fun is a form of release. It’s a neurological, chemical and hormonal reset, and an opportunity to rebalance from over-performance and stress.”

Grange has worked as a psychologist with high-level soccer, AFL, rugby league and Olympic teams, with extreme endurance athletes, and with businesses all over the globe. 

One of her career highlights was working with the England soccer team at the 2018 World Cup. 

“They got to the semis after a long period of underperforming and the nation celebrated with them,” says Grange.

No matter her client, she has one core aim: boosting performance while also fostering a healthy, supportive culture.

“HR and sports psychology complement each other. Both are about helping people find their best and perform well. In this way, leaders are like coaches, and vice versa – always seeking the balance between output and wellbeing,” she says.

She believes the key to high-performance cultures is building strong relationships through honest connection, storytelling and genuine feedback, whether on the sports field or in the office. 

“The quality and character of relationships that we have with each other will determine the level of performance that we’re able to output,” says Grange, who, after working in Australia for 20 years and Los Angeles for two, now lives in England’s Peak District.

She was originally attracted to sports psychology because she liked the idea of working with motivated people.

“I thought this would provide opportunities for both one-on-one and systems work. It felt like an opportunity to create real change.”

As she got into the field, she realised that motivated humans are complex. 

“Most of the work I’ve done is about the human being, not their performance. [I’ve helped] people understand who they are, how they operate best, what they want and how they can get there.”

It’s not about her coming in and being a performance “guru”, she adds.

“If you’re not focused on both the person themselves and the system they’re operating in, you won’t find high performance.”

Team bonding for improved performance

On the sports field and in the workplace, performance starts with teamwork, says Grange. But this can’t be imposed from the top; it needs to come from the ground up through mutual understanding and clear communication around goals.

“Start with understanding what actually motivates your teams. It might not be what you think. Motivation builders are communication, purpose and feedback. Discipline builders are clarity, feedback, clear methods and skill building.

“In sport, it’s not all about the end goal, it’s also about what we’re working on this week. And that’s a nice translation into some workplaces too. It’s about a group’s clarity of purpose over a block of time.”

Keeping a team on track requires regular debriefs, she says.

“The ‘hot debrief’ after weekly or daily performance and ‘emotional hangover work’ after big events both speak to strong, cyclical feedback cultures that normalise continuous conversations about performing and succeeding while being human.”

“We used to see resilience in terms of bouncebackability and grit. For me, it’s a lot more to do with adaptability and being allowed to be a whole human.” – Dr Pippa Grange, sports psychologist and author

Busting misconceptions about high-performing teams 

Over her career, Grange has sought to unpack, break down and replace some of the destructive narratives that shape our lives.

Part of that work has manifested in her book Fear Less: How to Win at Life Without Losing Yourself, which is about living with less fear and more freedom.

“Fear is amplified or lessened in cultures and environments as much as in individuals’ minds. There’s a lot you can do in systems and processes, and with symbols, language and power dynamics, to lessen it and build confidence,” she says.

Just as fear can hold us back, so too can a constant pursuit of productivity.

Grange maintains that high-performing teams shouldn’t come at the cost of wellbeing, and having good, caring cultures shouldn’t come at the cost of winning. High-performance and good culture aren’t mutually exclusive. 

“Workplaces are under so much pressure for profit or shareholder values, and this creates a downward flow where people can [feel like] never-ending productivity machines. The level of burnout we’re seeing is not random.”

To rejuvenate their minds and spirits, people need space to both rest and recover, which are two different things, says Grange. 

“Recovery is about finding the space to regenerate our creativity and curiosity, our humour and our energy.

“Creating ‘psychological space’ for people means they don’t have to perform constantly and can regenerate. Compromising on wellbeing is only a short-term gain for a person and an organisation.”

So how can companies help employees find psychological space to recover? It can be as simple as giving permission, setting good boundaries around working hours and allowing the sharing of stories and experiences, she says. 

“When companies start talking about what high-performance looks like, they need to recognise that it’s a triangle of work, rest and recovery. It’s not just a line between work and rest.”

What generates motivation, she says, is people’s ability to be authentic and share their stories with each other.

“Everybody who walks through the door of a workplace is asked to buy into a story, a vision and a purpose. Stories shouldn’t just come from the top, but also from the shop floor and the home offices. They should be an exchange. It’s making everyone feel like they genuinely belong and are part of something.

“You need practices that genuinely build on belonging, not just inclusion.”

Building more resilient teams

While some people may feel that ‘resilience’ has become somewhat of a buzzword that’s tightly linked to output, Grange says its meaning has evolved.

“We used to see resilience in terms of bouncebackability and grit. For me, it’s a lot more to do with adaptability and being allowed to be whole and human while performing, versus living in roles, categories and boxes. It’s about minimising drama [while] being real and honest, allowing emotions to arise, but still processing them.”

How do you help employees and teams foster resilience? 

“It’s principally about quality relationships that provide a social web for all challenges. Cultures that embrace courage, vulnerability, challenge, care and the will to change are resilient,” she says. 

Anticipatory guidance and foresight helps boost resilience, she adds. If something tough has happened, such as a round of redundancies, giving people space to ask questions, air concerns and share perspectives is important. 

“People find it much tougher to maintain resilience when they get ambushed by circumstances, or if they’re kept in the dark. Telling the truth about where things are at and allowing people to participate in being resilient makes a big difference.” 

Culture work is unlike other kind of organisational work, says Grange, and culture leaders often need different timescales, methods and measures to drive real change. 

“Culture, like ethics, should be a verb – a doing word. It’s daily work that lives in interactions and exchanges, as well as in big initiatives,” she says.

“It’s an ongoing effort to create an environment that supports psychological safety, trust and compassion, and it’s also building systems that actually reward and resist what you do and don’t want to see in the culture. Great culture is signified by an organisation that is present, observing, focused and active in considering ‘what ought we to do’ – and then actually doing it.”

A longer version of this article first appeared in the June/July 2024 edition of HRM Magazine.

Dr Pippa Grange will be speaking on  cultivating authenticity and vulnerability in the workplace at AHRI’s National Convention and Exhibition in August. Don’t miss the chance to hear from inspiring thought leaders and master practical strategies for now and the future. Secure your spot today.

The post Lessons on building high-performing teams from a sports psychologist appeared first on HRM online.

Working in HR has always demanded adept multitasking, but the disruptions of the pandemic and the numerous changes to our work dynamics have necessitated expanding HR skill sets even further.

“During COVID, HR got called into really high-level, strategic conversations that they didn’t always get brought into previously,” says Tani Jacobi, HR Standards & Capability Development Manager at AHRI.

“No one else had the skills; no one else had the reach and the capability to be able to navigate these situations because it was so heavily focused on the impact on people. It accelerated the path that HR was already on – that we’re not just focused on policy and compliance, or the ‘fluffy’ stuff. We are business contributors and leaders that enable business performance and growth.”

Since then, HR has become increasingly integral to decision-making conversations, which Jacobi asserts is “exactly what businesses need”. However, this shift has revealed that some HR practitioners were not fully prepared to assume these new responsibilities.

A byproduct of the rapid business changes from the past five years is that the HR practice has changed, says Beth Hall CPHR, General Manager of HR, Standards and Capability at AHRI.

“To stay commercially viable and support business growth goals, there is an increased expectation for sophistication in HR capabilities.” – Beth Hall CPHR,  General Manager of HR, Standards and Capability, AHRI

“HR has had to think differently about how to attract, engage and retain people, and how to navigate employee relations in a landscape that’s become even more complex. 

“When you think about the increase in criminalisation and individual decision-makers being held personally liable for some of the decisions they’re making at work, that’s a lot for HR to manage.”

As the professional body for HR in Australia, AHRI was determined to support its members and the broader HR profession to manage these challenges head-on and to grow their capability and influence.

“To stay commercially viable and support business growth goals, there is an increased expectation for sophistication in HR capabilities,” says Hall. 

The Australian HR Capability Framework

AHRI’s refreshed Australian HR Capability Framework (AHRCF) has been created with this increased sophistication in mind.

Designed to promote universal standards of HR best practice, the AHRCF defines the essential capabilities, skills, knowledge and behaviours required of HR practitioners, enabling career progression and empowering organisations to achieve their goals by nurturing the capabilities of their HR teams. 

It also acts as a clear roadmap for becoming a well-rounded HR practitioner, which requires a big-picture mindset, says Hall.

“For example, if you’re an IR/ER specialist, you can’t think about the legislation criminalising underpayments or the right to disconnect without considering your wellbeing skills, payroll, or your HR generalist skills. Nothing should happen in isolation.”

The new design of the AHRCF (see below) purposefully focuses on capabilities rather than specific roles, says Jacobi.

“We’ve been clear in saying, ‘This isn’t a job description.’ It’s about encompassing the broad practice of HR. 

“We’ve also quite deliberately designed the capabilities to flow from the big-picture, strategic level, then work around in a logical sequence of capabilities,” says Jacobi.

The framework begins at business strategy, says Hall.

“That’s about considering, ‘What’s happening from a business perspective, and what impact does it have on the HR strategy?’ 

“Then you go on to organisational enablement. Consider: how am I enabling the organisation to look after themselves and not be constantly relying on HR – because we’re a cost centre; we don’t generate income. We enable the organisation through data, insights and technology.”

Next, you layer in the foundational elements, such as the wellbeing perspective, to make sure you’re looking after the physical, emotional and mental wellbeing of your people.

“Then it’s about getting us to a culture that we can be proud of. We can look at ethical practices and DEI to make sure it’s aligned with the business strategy,” says Hall.

Workforce effectiveness speaks to the critical industrial relations skills required of the modern HR practitioner, as well as ensuring that you’re “being strategic in the chess moves of your people, structures and your succession planning to enable a future effective workforce”.

Talent management and trusted partnership runs across all elements of the framework.

“Your talent management and trusted partnership is keeping the lights on,” says Hall. “But if you don’t couple them with organisational enablement and workforce effectiveness, you’re going to come unstuck.

“If you think about old HR versus new HR, old HR was all about trusted partnership and talent management – we found people, we hired them, we gave them the skills and knowledge they needed, we managed their performance and then we moved them into their new role. We did that through employee relations, influence and impact.”

That work is still incredibly important, of course, but there is now so much more nuance and complexity to add on top of this foundational HR work.

“The employee experience is now uber-personalised. It’s not one-size-fits-all; sheep-dipping won’t work. Therefore, how do you use your organisational enablement and workforce effectiveness to start building the personalised, curated employee experience of the future?”

Using the AHRCF and Capability Analysis tool

AHRI’s HR Capability Framework is designed to uplift both individual capabilities and that of your entire HR team.

“We are, by nature, a giving group of practitioners, but we sometimes do that at the expense of ourselves,” says Jacobi. “Our performance as HR practitioners is measured on how we can impact business outcomes, not by our own growth. So we tend to neglect investing in our own capability because we’re so busy doing it for everyone else.”

The intent of the AHRCF and the capability assessment tool (exclusive to AHRI members), is that you can build it into your already established talent management cycles (see below).

“We’re also giving you access to development opportunities so you don’t have to go and create your own HR Bootcamp for your HR team. We have a range of options available that are specifically linked back to this framework,” says Jacobi.

The AHRCF is freely available for any HR practitioner to view. However, AHRI members can also access a career-stage breakdown of each capability, as well as the accompanying Capability Analysis Tool, which helps map and benchmark their skills over time.

Here’s how it works:

1. Assess your skills: AHRI members can log in to their membership dashboard and click on ‘Australian HR Capability Framework self-assessment tool’. Next, answer a few short questions to help AHRI benchmark your skills against the AHRCF. This should only take up to 30 minutes to complete.

2. Design your learning journey: You will receive a personalised PDF report of your results in your inbox. This will include specific recommendations for your learning and development from AHRI’s range of capability development programs.

3. Track your progress over time: Your personalised report will include a set of graphics to help you benchmark your results over time, should you choose to use the Capability Assessment Tool again in the future.

“Being able to benchmark capabilities allows us to see where our capabilities are compared to our peers,” says Jacobi. “Tracking growth over time helps to demonstrate return on investment and celebrate the progress we’ve made.”

Sign up for a webinar on 18 July, 12-1pm, to learn more about the revamped AHRCF and how it will benefit you. AHRI members can register for free.

The post Setting the standard for HR capabilities now and into the future appeared first on HRM online.

Fifty-four years ago, best-selling American futurist Alvin Toffler wrote: “The illiterate of the twenty-first century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn.”

Today, his prediction seems remarkably prophetic. The skills landscape employers are facing in Australia and globally is dynamic, unpredictable and rife with opportunity.

According to the World Economic Forum (WEF), the average half-life of a skill is currently about five years. Skills that would have carried previous generations through a career of 40 years now require endless updates and expansions to keep pace with technological advancement. 

As a result, the importance of technical skills has been eclipsed by the importance of skills adaptability, says Ravin Jesuthasan, author, Senior Partner and Global Leader for Transformation Services at Mercer.

“The only thing that will keep us relevant is the ability to keep reinventing ourselves,” he says. 

“The skills where the premium is going to go up exponentially will be things like learning agility, curiosity, the willingness to look around corners and anticipate, the ability to see connections across two or more disparate domains – those are the skills that are really going to stand us in good stead.”

Building skills security

While much has been made of the potential negative impact of new technologies on job security, the WEF’s Future of Jobs Report 2023 found the majority of technologies being implemented across organisations are anticipated to create more jobs than they will displace over the next three years.

Artificial intelligence, arguably the defining aspect of the Fourth Industrial Revolution, is expected to generate a net increase in jobs of 26 per cent by 2027. Meanwhile, big data analytics is set to create a net 58 per cent increase.

The only technologies forecast in the WEF’s data to have a net negative overall impact on employment data were robots; both humanoid (designed to mimic human behaviour) and non-humanoid (machines devised for specific tasks, such as drones and industrial automation).

In light of this, future-proofing the workforce will mean focusing less on job security and more on skills security.

“It’s much easier and more important to understand how work is changing, rather than looking at what new jobs are being created,” says Jesuthasan, who will be a keynote speaker at AHRI’s National Convention and Exhibition⁠ in August. 

“A job is a blunt instrument. It contains so many different things. But if you can understand how the work is changing, that gives you a precise view into the types of skills that are going to be in demand because it’s much easier to map skills to tasks than to understand the myriad of different skills that might underpin a job.”

“The only thing that will keep us relevant is the ability to keep reinventing ourselves.” – Ravin Jesuthasan, Author, Senior Partner and Global Leader for Transformation Services at Mercer

Shifting towards skills-based hiring and mobility

When organisations are facing skills challenges, employers often assume that targeting candidates with qualifications from familiar institutions will be their safest bet, says Jesuthasan.

“In my industry, there’s an old adage, ‘No one ever got fired for hiring McKinsey,’” he says. “If you think about how talent is resourced today, it’s largely based on credentials and what you’ve done previously. Those two things reduce the risk to an employer that a person can’t do the job. 

“But if we move to a skills-based approach, it takes us from competing for the five per cent of people we might have traditionally looked at to looking at the 20, 30, 40 per cent of the population who could actually do the work.”

Rather than adhering to rigid roles, a skills-based approach breaks down the individual capabilities required to perform a given task and assigns them to employees with the appropriate skills and capacity, regardless of whether it’s part of their job description.

With skills shortages increasing in severity and complexity, this approach is likely to grow in popularity over the coming decade. We’re already seeing companies becoming more flexible in the qualifications they consider, says Jesuthasan. For example, in 2021, IBM announced it had stripped bachelor’s degree requirements for more than half of its US openings. At Google, job postings requiring a bachelor’s degree fell from 93 to 77 per cent between 2017-2021. 

At banking and financial services company ANZ, the benefits of a shift towards skills-focused hiring and mobility are already beginning to shine through. 

“I think that job roles will persist as a means to organise work, but now we’re getting a deeper skills-based view of what’s behind each role,” says Arun Pradhan, General Manager of Learning at ANZ, who will also be speaking at AHRI’s Convention.

“We’re developing the frameworks and investigating the technology that will allow us to look at a role and see that it’s 40 per cent adjacent to that role over there, even though it doesn’t look like it. And we’re trying to provide a faster way for people to match up those skills.”

Ravin Jesuthasen and Arun Pradhan will both be sharing their insights on future-ready HR practice at AHRI’s National Convention and Exhibition in August. Don’t miss the chance to hear from inspiring thought leaders and master practical strategies for now and the future. Secure your spot today.

Planning for the skills needs of the future

During the past decade, we have witnessed immense shifts in our ways of working, from mass digitisation to the proliferation of hybrid working. With the pace of change accelerating, it’s safe to assume future decades will bring even more transformative developments. 

For many employers, this begs the question: If we don’t know what tomorrow will look like, how can we equip our people to succeed when it arrives?

According to Adina Leu FCPHR, Director of Workforce Strategy and Planning at the Australian Public Service Commission (APS), the difficulty of answering this question deters many employers from investing enough strategic thinking into their skills development. 

“Across the economy, there is little incentive for employers and managers to look at longer-term skills planning and invest in their current workforce to build the skills they’ll need, or that the sector or Australia will need, in five to 10 years’ time. Because of the high levels of turnover, they think, ‘Why should I? They’re not going to be here anyway.’”

As a result, future-focused employers must find ways to convince leaders to plant trees under whose shade they might never sit.

“It’s about moving away from [the mindset of], ‘I’m going to look after my own interests,’ and towards being part of a bigger ecosystem – whether it’s at an industry level or in the Australian economy,” says Leu.

As a government organisation with a workforce of over 170,000, the APS recognises the strategic imperative of mapping future skills needs by conducting in-depth scenario planning based on a variety of potential workforce futures.

“Of course, there’s a need to prioritise, because you’ll be generating 10s of scenarios, but you can’t plan for all of them,” says Leu.

In order to identify and plan for the most likely outcomes, the APS refers to the ‘megatrends’ published by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the long-term insights briefs developed by the Department of the Prime Minister and Cabinet.  

From digitisation to the global push to reach net zero, these trends are predicted to be the main drivers of evolving labour markets and skills demand over the coming decades.

“We are building out the workforce implications of some of those scenarios,” says Leu. “For example, we’re looking at the green transition, and the skill sets we’ll need in government to progress that transition and the green economy agenda for the country and globally.”

The APS is also actively engaging with educational institutions and early career programs to address skills shortages from the ground up. 

Exposing young people to career pathways available to them is particularly important to ensure skills pipelines are as diverse as possible, says Leu. “For example, we know there are shortages in some occupations and roles which are highly male-dominated – [things like] construction, engineering, cybersecurity and so on,” she says. 

“We also know that the seed for some of those career decisions is planted with kids as early as five. So, we need to have more interventions to get girls passionate about occupations like these ones in early childhood.”

“Learning is most effective at the point of need. The opportunity to immediately and constantly apply learning provides a reality check, learning reinforcement and a feedback loop.” – Arun Pradhan, General Manager of Learning, ANZ

An upskilling strategy fit for the future of work

One challenge that often arises with big-picture upskilling and reskilling strategies is push-back from employees asked to take part in them. 

In recent years, the speed of transformation has left some employees experiencing varying levels of ‘change fatigue’. According to Gartner, employees’ willingness to embrace change has dipped sharply, from 74 per cent in 2016 to 38 per cent in 2022.

To avoid employees feeling overwhelmed by the magnitude of upskilling and reskilling required, getting the timing right is crucial, says Pradhan.

“Strategic workforce planning can mean developing three-year modeling, but we need to consider an overlay of how early we can initiate upskilling before those skills become relevant,” he says. 

“Learning is most effective at the point of need. The opportunity to immediately and constantly apply learning provides a reality check, learning reinforcement and a feedback loop to accelerate learning.”

To provide this opportunity, ANZ will be rolling out a new Academy for foundational skills around data, digital and human skills.

“The ANZ Academy has team-based learning at its core, so people can apply what they learn immediately in their work with their peers,” he says. “It’s getting away from having a learning bubble over here and a work bubble over there, which forces busy people to make their own connections.

“Instead, we’re using blended experiences, team activities and contextualised stories to reduce the friction of on-the-job learning.”

In order for HR to formulate and deliver upskilling and reskilling strategies effectively, it’s imperative that they lead by example. 

“Use every opportunity to build a new skill,” says Pradhan. “Be that curious person who collects skills from work, parenting, hobbies or anywhere else, and is creatively combining those skills to deliver your unique value proposition and greater adaptability.”

A longer version of this article first appeared in the June/July 2024 edition of HRM magazine. Sign up to become an AHRI member to receive a bi-monthly copy.

Hear more from Ravin Jesuthasan on the shift towards skills-based hiring in the latest episode of AHRI’s podcast, Let’s Take This Offline. Listen to the episode below.

The post Cultivating the skills Australia needs to become future-ready appeared first on HRM online.

The Fair Work Commission (FWC) has made its first ruling under the new Same Job, Same Pay framework, after finding that the labour hire workers employed by a Queensland coal mine performed essentially the same work under the same conditions as the mine’s permanent employees.

As a result, more than 300 labour hire workers servicing the mine are set to receive pay increases of up to $20,000 per year as of November this year, when Same Job, Same Pay orders will come into effect.

Particularly for organisations in heavily unionised sectors, this decision serves as a reminder to evaluate employment practices to ensure compliance with the new legislation.

Labour hire workers perform the same work, argues union

The employer in this case, a Queensland-based open-cut coal mine, currently employs approximately 350 permanent employees who are covered by an enterprise agreement, and supplements its workforce with approximately 320 labour hire workers. 

Earlier this year, the Mining and Energy Union (MEU) put forward an application under the Same Job, Same Pay framework arguing that the labour hire workers’ roles were indistinguishable from those of the permanent employees, and they were thus entitled to the pay rates set out in the host employer’s enterprise agreement.

In its ruling, the FWC noted that the labour hire workers and permanent employees attended the same pre-start meetings each day, performed the same production work using the same equipment, wore the same uniforms and followed the same procedure for requesting annual and personal leave, among other similarities.

“If they’re being treated the same as employees on the site in terms of the nature of the work itself and the operational aspects, that’s where it becomes very compelling,” says Aaron Goonrey, Partner at Pinsent Masons.

The FWC was ultimately satisfied that the labour hire employees were entitled to the same rate of pay as their permanent counterparts.

Significantly, neither the labour hire company nor the host employer opposed the application, acknowledging these similarities and accepting the order to bring the labour hire workers’ pay rates in line with the host employer’s enterprise agreement.

“The decision is not contentious in the facts – these people did the same role,” says Goonrey.

“But there will likely be some upcoming applications which will be more complicated because they will be defended by labour hire companies or by the host company.”

The MEU has expressed its intent to assess the circumstances for labour hire workers at each work site and make further applications under the Same Job, Same Pay framework.

“This decision is going to be part of the case law that helps guide employers who use labour hire companies in terms of how they can avoid an order like this being made,” he says.

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Understanding the Same Job, Same Pay framework

The Same Job, Same Pay legislation was passed by the Albanese government in December last year as part of the Closing Loopholes Bill. The laws are designed to prevent employers from using labour hire to undercut the wages and/or conditions afforded to permanent employees via their enterprise agreements.

The legislation applies to businesses which have 15 or more employees, are covered by an enterprise agreement, and whose workforce is supplemented with labour hire workers. Sectors like construction, manufacturing, transport and healthcare in particular are likely to be impacted.

Under the new laws, the FWC can order labour hire companies to pay workers the same amount that would be paid to them under the host employer’s enterprise agreement, if they have been working for the host employer for more than three months and perform the same work as permanent employees.  

While Same Job, Same Pay orders will not kick in until November this year, applications can still be submitted beforehand, as occurred in this case. Any pay increases ordered by the FWC will become effective in November.

Anti-avoidance provisions have also been put in place to prohibit schemes that prevent the FWC from making a Same Job, Same Pay order or avoid the application of an order. 

A possible example would be trying to engage labour hire workers as contractors to deprive them of the new protections, or intentionally turning over the workers to stay under the three-month placement period. Deliberate attempts like this to skirt the new laws or game the system could attract significant civil penalties. 

“If they’re being treated the same as employees on the site in terms of the nature of the work itself and the operational aspects, that’s where it becomes very compelling.” – Aaron Goonrey, Partner at Pinset Masons

Is this the end of labour hire? 

This ruling signals the first of many decisions with significant financial impact on employers who use labour hire, particularly in heavily unionised industries like mining. Goonrey says this may prompt some employers to reevaluate their use of labour hire and its benefits.

“A lot of companies that use labour hire may be resigned to the fact that they will now have to pay a premium for that labour hire. Or, they’ll go to market and employ employees directly, which is part of the reason [why this policy was introduced] – to try and give more permanency.”

With that said, he disagrees with the notion that this policy will signal a “death knell” for labour hire. 

“There will still be a place for labour hire. I think a lot of companies will simply say, ‘We’re willing to pay the premium just for that flexibility.’ And there are a number of companies that are already paying their labour hire providers the same as what they’re paying their employees.”

For employers who engage labour hire workers and have an enterprise agreement in place, Goonrey suggests conducting a thorough analysis of the makeup of the labour hire workforce and the potential ramifications of a Same Job, Same Pay order to determine whether it would be beneficial to adapt or reduce the use of labour hire.

“It will become a finance issue, an operational issue and ultimately a business issue… [So], realistically, what you should be doing is bringing all the relevant business stakeholders together – finance, HR, operational – and working out, if an application was made, how much would this cost you?

“You’re better off being armed with the information about what the ultimate cost could be, as opposed to saying, ‘Let’s wait and see what happens.’”

Take your employment law expertise to the next level with AHRI’s new Advanced HR Law short course.

The post FWC hands down first Same Job, Same Pay ruling appeared first on HRM online.

In an era of rapid technological advancement, with the demand for certain skills rising and others becoming obsolete, preparing for the future of work requires foresight and adaptability. 

In this episode, Ravin Jesuthasan, global thought leader and Senior Partner and Global Leader for Transformation Services at Mercer, talks about how HR practitioners can navigate the evolving skills landscape and prepare their organisations and employees for these changes. 

You’ll learn how to take advantage of the shift towards skills-based hiring, how artificial intelligence might reinvent the graduate-level position, and discover models and frameworks to think about skills and job design as a small, medium or large-sized business.

Skip to the section that interests you most:

• 3:40 minutes: Three things HR can do to prepare for the evolving skills landscape
• 6:09 minutes: How to effectively map skills
• 12:51 minutes: The most crucial skills for businesses to focus on
• 16:03 minutes: How AI might change (or remove) graduate level positions
• 22:24 minutes: How to get started as a skills-based organisation
• 29:24 minutes: How to apply these skills as a small to medium-sized business
• 40:44 minutes: Jesuthasan responds to a scenario about a company that is moving towards a skills-based approach and has created agile teams working on project-based assignments.

View the podcast transcript here.

Extra resources:

For more conversations to inspire HR, listen to season one of Let’s Take This Offline here.

If you’d like further information and resources to help put Jesuthasan’s insights into action, check out the links below:

Learning opportunities

• Sign up to AHRI’s National Convention and Exhibition⁠ in Melbourne on 20-22 August to hear more from Ravin Jesuthasan.

• Sign up for AHRI’s new short course, GenAI Integration Essentials.

Further reading

• Learn more about Jesuthasan’s books.

• Read HRM’s article where Jesuthasan talks about the future of leadership skills.

Member-exclusive content

• Join the AHRI LinkedIn Lounge to connect with your peers and for access to a bonus episode later this week.

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