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Horizon News - June

Finding talent - making your business attractive


Continuing our series on attracting and keeping talent we were going to discuss the use of corporate competencies in the recruitment process this month but, due the recent government announcement of proposed changes to the industrial relations system we thought we may address one particular issue this raises.

One of the areas being addressed is the unfair dismissal laws. The proposal is to have any recourse to an unfair dismissal claim removed for employees in a business that has employs less than 100.

While on the surface this appears to provide greater flexibility for these businesses, it does not make them very attractive for a candidate that may have a choice of employers. With the shortage of talent increasing, talented individuals will have more choices. Larger businesses will counter this with higher pay. SMEs will not only get caught in a price war - trying to match salaries, they will not be able to offer the same sort of security which, up until now, has been available to all employees in Australia.

This is where the previously unsexy subject of policies may come into the spotlight. If a business of less than 100 employees has interesting work, good opportunities and competitive pay they can match the perceived insecurity of the work situation by marketing their attractive policies.

Employment policies generally fall into two major areas.

Compliance
Firstly, there are those that provide legal minimums - and some of these, in addition to unfair dismissal, will also be reduced or removed in the proposed overhaul. It is important to have these in place and to communicate them effectively. These are compliance issues and can protect you from a wide range of claims in areas such as equal employment opportunity, occupational health and safety, bullying, harassment and discrimination.
Employee Benefits
These are the policies that can add to the attractiveness of the employer. These may include various types of leave, development opportunities, flexible working hours, recognition and reward programs and other benefits available. If a business was serious about not abusing the removal of the unfair dismissal laws it could promote a policy of induction and positive performance development to maximise the chances of an employee's success. It may then have a policy to terminate employment in a humane and constructive way when there are performance problems - much the same way that "fair" termination is handled now.
Operational
The third group of policies may include issues such as business conduct, and other operational areas that ensure business runs smoothly, that employees know the procedures and, in short, make your business professional and confirm it as an attractive place that employees want to be a part of.

Australian Workplace Agreements (AWAs)
These agreements allow employers to incorporate flexible arrangements into employment contracts with individuals or groups of employees. They are excellent for breaking through the often restrictive conditions imposed by awards and providing a degree of certainty which meets the needs of both employers and employees.

Using AWAs is going to become even more convenient under the new reforms being introduced. AWAs can be used by SMEs to introduce attractive arrangements and provide a level of security to offset the perceived loss by the unfair dismissal changes.

Why do this?
Apart from the now accelerating the need for businesses to compete for talent there has always been an underlying need for businesses to have an effective, well communicated suite of policies in place - even just for compliance. This alone can save far more in costs than that outlaid in putting them together. Tying these into an agreement that meets the needs of the business and the employee will enhance the employment relationship and lead to higher commitment and engagement.

If you would like a list of what we consider necessary policies please go to Free Downloads.



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