The World According to Cachia

Numeracy and Literacy Skills are affecting Business

John Cachia - Friday, June 11, 2010
The Australian Industry Group (AIG) conducted discussion groups and surveys designed to identify the level of numeracy and literacy problems in the workforce and what impact this is having on business. It was found that more than 75% of employers believed poor literacy and numeracy affected their business.

In total more than 390 responses to the survey, came from companies within the Manufacturing; Construction and Service Industries who employ (approx) 56,000 staff.

The main issues seemed to include poor completion of documents and the loss of productivity due to repeating work processes. Other problems include:-
    •  - Ineffective Work Teams,
    •  - Materials Wastage,
    •  - Ineffective Training,
    •  - Financial Miscalculations,
    •  - Unsafe Work Practices (which lead to Workplace incidents and injuries), and
    •  - Ineffective recruitment Practices.

Whilst these issues occured with labourers and process workers... [some] managers and engineers too were effected by poor numeracy and literacy skills.



Award Modernisation

John Cachia - Friday, June 04, 2010
It is beleived that the Goverments new Award system - being implemented from 1 July 2010, comes with unfair cost and complexity to business.

Although the Award Modernisation process was to streamline the many federal and state Awards, into just 122 [occupational or industry] Awards, opinion suggests the new system will both increase and decrease wages.

Further issues causing concern relate to employers having to reach agreement with each employee regarding [any] changes to rates of pay; this of course will become a challenge particularly considering the logistics of such a communication strategy.

These transitional arrangements have their opponenets and as such further clarification and/or information should be sought to assist employers understand their obligations as well as their next steps.

Update of the Federal Governments Parental Leave Scheme

John Cachia - Friday, May 28, 2010
In the draft legislation whicih is set to be before the Senate, the Goverment has identified that Employers will be required to provide taxpayer funded 'Parental Leave' on top of any scheme it may already have in place.

This scheme will provide [eligible] mothers and fathers with eighteen (18) weeks paid leave, at the federal minimum wage [rate] from january 2011 - as long as the nominated parents' income doesn't exceed $150k per annum.

Further, this legislation provides for women, who give birth prematurely, or have pregnancy related complications and would have otherwise met the criteria to receive these payments.

This legislation is likely to have the support of the Senate and therefore teh scheme will be passed.

Careers Counselling [or Vocational Guidance] Programs…are they really preparing School Leavers for the workforce?

John Cachia - Sunday, April 11, 2010

It seems there is [potentially] an issue with our School leavers and their lack of understanding of the nature and operation of the ‘commercial’ world and what is therefore expected of them.

 

Possibly this could stem from their employment expectations being beyond their immediate capabilities, which could lead to dissatisfaction from both the individual and the Company…and ultimately it results in staff turnover.   Alternatively, I am hearing [anecdotally] that although Vocational [or Careers] counselling is available at School it may not be providing the student/job seeker with the necessary skills and/or knowledge required to properly access the market in an environment that suits them.

 

It’s fair enough to say that if an individual does not have the maturity or stability to secure and retain a position in the workforce, then the School’s vocational programs may not help here. If however, young job seekers are missing out because they are not prepared nor do they properly target the industry that best suits them, we could possibly question the [careers counselling] program made available to them!

 

Having spoken with a number of parents and colleagues as well as conducting a number of ‘external’ programs for students, I am finding that rather than looking at what motivates the individual, some careers counselling programs focus on the technical aspects of the individual, hence a student may be directed to a career in [say] Accounting, purely because he/she is strong Mathematically. And although the student may be technically competent she/he may not be at all motivated to build a career in this industry.

 

Aside from appropriate counselling and testing programs, that help students properly identify industries/companies/positions, we should take advantage of the ‘Work Experience’ program. Its basic aim is to assist students through the transition from School to work. Work Experience Programs should be regarded as a technique in career advice as well as a means of understanding how business operates.

 

Suffice to say, the Careers Counselling should start well before the Work Experience program so the student can really start to consider their vocation!

 

There is a lot to behold when managing Career Counselling/Vocational Assessment programs, but I believe we should go further by ensuring the individual is not only technically competent but [also] has the right motivational and cultural fit for the industry/company/position!



Safety matters in hard times

John Cachia - Wednesday, August 12, 2009

Its no surprise to hear that businesses across the country are feeling the effects of the current financial situation.   As a result, [some] employers have sought ways to cut and/or reduce costs to its operation.   Although this may be an imperative, it is important that Safety is not adversely impacted upon.

The obvious areas to reduce your spend will be on items such as stationery, [cream] biscuits in the tea room, or removing the office plants.   Some organisations will change their recruitment plans or consider a complete restructure.   These decisions can affect more than the bottom line.

Interestingly, one important matter that is overlooked in all these changes is the impact this will have on the employees.   Increased workloads and/or changes to the workplace or work processes can cause stress and anxiety within the team.   Such distractions/pressures can add to their day, causing them to rush or make mistakes which could put them at risk.

If employees are uncertain about their future and/or the future of the business, they may be reticent to report hazards.

Yes management are looking at ways to ensure the business is productive and achieve short-term profits, and so activities like consultation, maintenance and training may not be considered as a necessity.   This is not the case.   There are genuine business advantages to looking after your employees.

Organisations will benefit greatly from having secure and motivated employees.   This can be reflected by increased productivity, greater involvement and/or innovation from the team and you may also see a reduction in absenteeism.   Having this productive environment can also help companies avoid lost time incidents and compensation claims.

As an employer you may not be able to control the global economy; however you do have the ability to manage and control the activities within your business, and therefore improve the safety and wellbeing of your team.



Business Confidence is on the rise

John Cachia - Wednesday, August 12, 2009

Business Confidence is on the rise, and it seems every where you turn there are signs that this is the case.   Reports in the media say that Australian business confidence hit its highest level [July 2009] in almost two years, which suggests an economic recovery is gathering momentum.

This of course is good news which will help the optimists offset the commentary of those who advocate a more pessimistic point of view.

Further good news comes from the fact that the improvement to business outlook will assist those employers who seek to retain their staff despite the downward trend in demand, hence production. 

Although this business confidence is broadly based, reports suggest there are strong signs (specifically) in construction, wholesale, transport and manufacturing industries over recent months.

There are those who are cautiously monitoring this situation suggesting that consumer confidence and therefore spending may weaken. This coupled with low business investment suggest the mid term prospects may not be as bright. Which means it’s important for business not to get too confident.

Take into consideration that over the last few months a number of factors have come into being… including the Government stimulus package and the low interest rates. These factors have now been realised, however going forward there may be no further Government ‘hand-outs’ and the RBA are suggesting the interest rates may rise, as soon as February 2010. Hence the calls for caution may be warranted.

We are however in a better position then some of our allies. In New Zealand the unemployment rate reached a 10 year high of 6% and in the U.S. a reported 371,000 jobs were lost in July, taking their jobless rate to 9.6%

Overall it seems that Australian business have weathered the economic storm relatively well. Yes, there have been restructures and people have lost their jobs, but we see that organisations have developed [appropriate] strategies, new products and markets whilst holding a keen eye on innovation.

I think watch this space is an appropriate perspective as we track along the next six (6) months, and if all the reports are correct, we may well see ourselves and our businesses working in positive territory once again.



Courtesy in the Workplace

John Cachia - Sunday, July 19, 2009

I was reading an article recently and its main theme was how courtesy [in the workplace] or the lack of it can cost you, and it made me think how this simple act seems to have diminished from work.   The article goes on to explain a scenario whereby the author was looking to buy a car and how a local dealership seemed disinterested… so obvious was the salesman’s distain that he totally ignored our hero to the point whereby she just left the car yard, and as you guessed it she went elsewhere.

I remember in my youth working in a Retail store, my manager would tell me that those customers walking in the store are $$$ in the register… go out there and greet them, be polite, enquire as their health, and make general conversation.   You don’t want them to feel hassled or hurried…nonetheless, you ensure they’re attended to.   Invariably, I would get the sale and the customer was satisfied with not only the purchase, but the experience as well.

Later in my career, I worked in much larger organisations, who thankfully understood the importance good Customer Service, and often I would here statements such as ‘you don’t get a  second chance to make a first impression’ or ‘if you’re not serving a customer, make sure you serve someone who is.’  

All very good and logical sentiments, after all, courtesy (or the lack of it) could not only affect your sales, but it could also damage your reputation.   Imagine a customer telling 10 friends, who tell their 10 friends [etc…] that the service they received from your business was less than satisfactory.   Soon the word spreads and your sales results plummet!!!

Sometimes you don’t know the customer is dissatisfied, because instead of telling you they ‘re unhappy, they simply leave and find a competitor who is willing to assist them… just as in the case of our hero…she went to another dealership, in another locality, who was only too happy to assist, and you guessed it, she bought the car!



The initial weeks of the Fair Work Act – 2009

John Cachia - Friday, July 17, 2009

Effective 1 July 2009, the Fair Work Act became operational and although there were no ‘fireworks’ the effects of this new piece of legislation will be realised in the workplace.

I have been told by colleagues in the legal fraternity, that the new workplace system is not a huge shift from the former, however the Fair Work Act does have a number of sections that are fundamentally different, for example:-

          - Unfair Dismissal provisions,

          - Workplace Rights, such as Freedom of Association and Anti-Discrimination;

          - The inclusion of Termination and Redundancy provisions;

          - The right to request Flexible Working arrangements; and

          - Bargaining in Good Faith;

Furthermore, the 1st of July ushers in the introduction of Fair Work Australia. This Government body, presented as an independent umpire, will provide advice and assistance with regards to employment terms and conditions in relation to the adherence of the provisions of the Act… as well; Fair Work Australia will assess and decide upon minimum wage decisions.

With the introduction of the Fair Work Act, some employers may be unsure what this means to them… it is important that Managers are aware of and understand the legislative rules with which they employ their staff and thus maintain the employment relationship accordingly.

If Companies have previously negotiated agreements, that were lodged/ratified prior the 1st July 2009, these agreements and their terms & conditions, will continue until they expire… of course those employed under ITEA’s will have until 31st December 2009, when these agreements cease to operate.

Organisations employing staff under [relevant] industry Awards should consider what implications the ‘Modern Awards’ will have on their business and maybe even consider whether it’s time to start negotiating their own Enterprise Agreement.

As the Fair Work Act – 2009 has commenced – to ensure you are conducting Workplace Relations accordingly it would be prudent to seek further advice on any concerns you may have, or to understand how best you can operate your business to maintain compliance with the Act.

Just as we thought… looking for a job is hard work!!!

John Cachia - Friday, June 26, 2009

Unless you’ve been successfully hiding away thus able to avoid the Global Financial Crisis ‘AKA’ the ‘GFC’ organisations have been restructuring their business in an attempt to continue trading; and as such, an inordinate amount of employees have lost their jobs through Redundancy.

 

Being made redundant hasn’t just become an issue.   Employees were being made redundant, well before the ‘GFC’ and so the anguish associated with loosing your job remains – if it’s any consultation, there plenty of people in the same position.   Given there are more people out of work because organisations are consolidating; finding your next role has now become somewhat more difficult!

 

When talking to recruiters and candidates, the apparent issues have become there aren’t as many jobs openly advertised, and for those that are the number of candidates applying has increased dramatically.   This leads to increased pressure on the recruiter as they now have so many more applications to consider.  

 

Some suggest that as a result [of the level of applications received] candidates would be considered more so because they meet the criteria in the ‘key word’ search rather than because they can demonstrate [transferable] skills to perform effectively in the position.

 

Additionally, candidates feel frustrated, whilst they believe they meet the ‘broader terms’ of the selection criteria, they are not considered suitable because they don’t have experience in the [respective] industry.   The problem for the recruiter is that they have an enormous amount of applications to process and with the selection criteria being so specifically defined; they won’t need to broaden the scope of the search.

 

In reading news articles and/or [HR] publications, there appears further discontent from the candidate… and that revolves around the ‘Human Element’ of the recruitment process.

 

Comment suggests the candidates are dealing with recruiters who don’t really understand the fundamentals of the positions they are trying to fill.   Some of the criticism [of the recruiters] includes; they don’t confirm receipt of the application; they don’t return phone calls; they don’t call me when a position becomes available.  

 

However from the recruiters’ perspective, it is seen that the candidate may have an unreasonable expectation of what the recruiter can actually do!   The recruiter is not there to attend to the needs of the one candidate – the recruiter must provide a certain standard of service to the client organisation as well as manage the expectations of the numerous candidates applying for any given role.

 

Notwithstanding the good recruiter will appreciate that the candidate he/she places today, may well become the customer/client of tomorrow!

 

I’ve spent a number of years delivering outplacement programs to people made redundant, and during that time I’ve witnessed the plight of the candidate, actively perusing their next role… and the recruiter struggling to appease their customers and managing the ever increasing number of anxious candidates (and let’s not forget that a number of recruiters themselves have since become candidates).

 

The one thing I advise participants [of the program] is that you cannot [solely] rely on the recruiter to do your job search for you! Candidates must be proactive; Candidates must network; Candidates must make job search their major task!

 

Yes job search is hard work, but then again, maot things that are worthwhile take some effort!



Fair Work Bill – are we ready to move forward with fairness?

John Cachia - Wednesday, April 15, 2009
On the 20th March 2009, the Federal Governments Fair Work Bill passed through the Senate, and with this, the wheels were set in motion for its implementation, which occurs on the 1st July 2009. When reading commentary on this legislation we are told that the introduction of the Act has practical implications for businesses across Australia, as ‘Forward with Fairness’ aims to strike a balance between fairness and flexibility at work!

This Bill continues with the plan to have a ‘National Industrial System’ which was a big part of the ‘WorkChoices’ philosophy. The idea of removing complexity from the Industrial system (with regards to competing federal and state legislation) was an element that was favoured by employers and employees alike.

Bear in mind though, that before the Fair Work Bill takes effect, the Government wants to introduce two more pieces of legislation. The first is the Fair Work (Transitional Provisions and Consequential Amendments) Bill 2009, which was tabled on the 19th March 2009. This refers to the transition from the current system to the new. The second, due for introduction in May 2009, deals with the consequential amendments to other federal laws and/or referrals of power by the States. It is the Governments intention to have both these pieces of legislation passed by mid June at the latest.

With all the publicity surrounding the introduction of the Fair Work Bill, there of course has been much discussion in and out of the workplace. Whilst the level of discussion varies, one aspect seems to remain, and that is, what impact will these changes have on me and/or my business?

For some this appears to be a very real problem… a recent survey conducted on small to medium enterprises (SME’s) identified that;-
  • 80% of these companies are not ready for the introduction of the new workplace laws,
  • some 45% of SME’s were unprepared or uncertain about how the changes would affect their businesses,
  • 30% had a little or no understanding of their obligations under the legislation,
  • 50% were rather concerned, or at least somewhat concerned about the changes.
Considering the above, it’s obvious that we still have some way to go to prepare for the implementation of the Fair Work Bill. However, it is of paramount importance for the effective running of HR practices in any business, that its managers understand and properly implement this type of legislation.

Organisations and their managers cannot ignore this legislation and therefore must familiarise themselves with the facts, in addition to juggling a number of other business decisions (especially those brought about by the impacts of the current economic climate)!


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