Welcome to your free monthly edition of CPD Communicator for HR and payroll professionals.

A leading HR consultant has said that unless HR people start contributing strategically and tactically to a company, they may as well be described as compliance officers or been seen simply as a "paper shuffler".

The Government has released a consultation paper on the splitting of superannuation contributions between couples, but has said that any changes would not result in an administrative burden on employers.

Also in this edition, find out what work-related attitudes senior managers believe help fast track an employee to success.

Other stories in this edition include:

• HR people lack strategy and tactics, says industry expert
• Australia likely to step-up HR outsourcing
• Executive employment on the rise
• Gvt consultation paper proposes couples can split super
• Transition period over for NSW OHS rules
• Adaptable employees equal successful employees, say CFOs’
• Free OHS charts help keep workplace injury free
• Workers comp to be harmonised nationally
• New Super Commissioner
• CPD Companions

If you have any questions, feedback, or story ideas, feel free to contact me at lauram@thomson.com.au

Enjoy the read.

Laura McGeoch
Editor - CPD Communicator
(03) 9208 4539

HR people lack strategy and tactics, says industry expert

HR people need to concentrate less on the "rats and mice" issues and start to contribute tactically and strategically to their workplace if they want to add credibility to the profession and get a bigger pay packet, says a leading HR consultant.

Too many HR staff are acting as compliance officers instead of as strategic contributors to a business, and they have to think of the bigger picture and more significant issues in order to turn this situation around, Chris Hart, managing director of Hart Consulting Group says.

"Human resources people need to decide whether they want HR to be seen as a profession or as a set of tasks," Hart told CPD Communicator. He added that HR staff are not sitting at the senior executive table and are acting as "doers" instead of being part of the decision-making teams.

"I am amazed at HR people’s ineffectiveness in being able to contribute tactically to the business," he told CPD Communicator.

Strategic planners financially rewarded

The ex-Australian Human Resources Institute president’s comments were in response to a HR salary survey which showed that those taking on greater strategic responsibility were reaping the financial rewards. These managers and directors received pay increases of up to 10 per cent over the last 12 months, the survey of 65 large service-based business, mostly from Sydney, Melbourne and Brisbane, found.

"The dollars are going to go to those who deserve them and those who contribute substantially to the business," Hart said. He questioned the importance of a HR manager or staff who did not know the direction of the company, as this knowledge played a major role in determining what type of competencies are needed in a job applicant.

Other results of the survey revealed that human resources managers and officers received 3–5 per cent pay increases and administrators and more junior staff received less than 3 per cent.

Contrary to the general belief that pay levels for HR consultants were typically higher than for practitioners, the survey found that although at lower levels consultants fared better than practitioners, the pay was generally even at a senior level.

Hart expressed concern that HR people are occupied with issues such as paid maternity leave and annual leave, instead of trying to determine what teams can work together in a company and attracting and retaining the best employees.

He told CPD Communicator that because many HR functions were being outsourced, it was especially important for those in the profession to think about these tactical issues and avoid performing a similar role to a compliance officer or becoming a "paper shuffler".

Below are the tabled results of the salary survey by Hart Consulting Group.

The pay levels for practitioners were as follows:

The pay levels for consultants were as follows:

Related websites

www.hart.com.au

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Australia likely to step-up HR outsourcing

Australian companies are likely to outsource their human resource functions more, and follow the lead of their UK, US and European counterparts who continue to increase their use of the function to reduce costs and improve productivity, according to a senior HR manager.

"More and more companies are looking at outsourcing as a tool to generate productivity and get more for less," Stuart Gibson, general manager of PricewaterhouseCoopers HR services, told CPD Communicator.

Outsourcing is a way of turning capital costs into operating expenditure, and companies are trying to find the best provider to give them what they need in various functions including payroll, learning and development, recruitment and training, added Gibson.

PwC embarked on its outsourcing concept in 1997. Since then, its entire business outsourcing operations have grown at around 50 per cent each year and these results are expected to be repeated over the next year. "This indicates that there is a potential for huge growth in this market," Gibson said.

A study by Accenture, a management consulting company and the Conference Board, an independent membership organisation, revealed that of the 165 executives interviewed across the UK, US and Europe, 98 per cent said they would continue to outsource their HR functions after being pleased with the process.

Yankelovich Partners conducted a study into business process outsourcing and found that across the entire business process and HR functions, Australian multinational companies were embracing outsourcing. Following tax compliance and internal auditing which were the most outsourced functions, 33 per cent of companies outsourced payroll and the same percentage outsourced human resource functions.

Recognising the benefits

Les Pickett, manager of professional development for the Australian Human Resources Institute, said outsourcing usually began in the IT department but was now being applied to HR functions. "This has been happening in Australia for some years now," Pickett told CPD Communicator.

He described how almost 20 years ago he headed the staff training and executive development function for G J Coles and outsourced a significant component of the corporation’s training and development activities.

"The result was that more effective training was provided at reduced cost to the company, because we were able to access very high levels of current expertise in a number of specialised areas without the need to carry specialist staff, whose skills would be under-utilised for considerable periods of time," Pickett noted.

What not to outsource

While the outsourcing of superannuation, payroll and training can be commonplace, there are some areas of the HR function that should remain within a company, say Pickett and Gibson.

"Strategy determination and policy creation is something that cannot be successfully outsourced," says Gibson. While he said that companies can get advice on these functions, they must be developed and controlled by the company.

Pickett said there had been "horror stories" from outsourcing experiences, including the company failing to check out the actual capabilities of the provider and failures to deliver expectations. He added that companies should look beyond the cost benefits and estimate the effect outsourcing some HR functions could have on their company.

"There is a need for caution. Senior corporate management must create and sustain the organisational culture and climate. These roles cannot be effectively outsourced," he said. "These remain the core role of senior executive management which should include HR representation."

Related websites

www.ahri.com.au

www.pwcglobal.com.au

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Executive employment on the rise

The demand for Australian executives has reached a high with a barometer of hiring intentions at the top end of the employment market rising to 18 per cent, the best result since September 11.

The E.L Index, published by executive search firm E.L Consult, indicated that the financial sector rose 16 per cent, engineering 38 per cent, management 16 per cent and information technology 14 per cent mid year.

"This is an extremely encouraging result for the large group of middle and senior management whose ranks have been decimated over the last couple of years," noted managing director of E.L Consult, Grant Montgomery.

"While Australia’s economy managed to avoid the full effects of the US-led international downturn, executive employment and general business investment has been slowing for one-and-a-half years. This is the first significant sign that that period has ended," added Montgomery.

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Gvt consultation paper proposes couples can split super

The Government has released a consultation paper on the splitting of superannuation between couples to help non-working spouses accumulate their own superannuation, but said the move would not increase the administrative burden to employers.

Minister for Revenue and Assistant Treasurer Helen Coonan released the paper and said that the splitting of super was intended to allow families to maximise the benefits available in superannuation without burdening employers. Any implementation of the scheme would have no effect on an employer’s superannuation guarantee contributions.

"Contributions splitting will instead be implemented by superannuation providers, where the administration costs can be shared by the beneficiaries," Coonan said.

The proposals allow for members of accumulation funds to split both personal and employer contributions with their spouse in a marriage or de facto relationship. Contributions made after 1 July 2003 will be eligible for splitting and the working spouse will be able to split a maximum of 50 per cent of deducted (or employer) contributions received over the relevant contributions period, and up to 100 per cent of undeducted personal contributions. Existing superannuation balances and future earnings on these balances will not be eligible for splitting.

Three implementation options have been proposed:

• Prospective split – requires the member’s superannuation provider to split each future superannuation contribution received on behalf of the member.
• Annual split – after the end of the financial year and at the request of a member, the member’s superannuation provider would be required to split contributions received during the previous year.
• Joint accounts – couples could open a joint superannuation or retirement savings account and each spouse would hold a 50 per cent interest in contributions and investment returns credited into the account.

Submissions and comments on the paper can be sent to the Treasury up until 26 August 2002.

Related websites

www.treasury.gov.au

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Transition period over for NSW OHS rules

The 12-month transitional period for implementation of the new NSW workplace safety laws that came into effect on 1 September 2001 is about to end, and employers have to ensure they have the necessary systems in place to identify, assess, control or eliminate health and safety risks.

The NSW Government introduced the Occupational Health and Safety Act 2000 and the Occupational Health and Safety Regulation 2001 to update and simplify the health and safety laws. The new laws require employers to consult with employees on health and safety measures.

Small business employers (those with fewer than 20 employees) have a two-year period to implement the risk management requirements of the regulation. Every other business must adhere to the 12-month transition period.

Related websites

www.workcovernsw.gov.au

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Adaptable employees equal successful employees, say CFOs’

They say a change can be as good as a holiday, but the ability to adapt to change is what company leaders believe puts an employee on the road to success, a survey has found.

Thirty-five per cent of chief financial officers responding to the survey from Accountemp, an agency for accounting, finance and bookkeeping professionals, said an employee’s willingness to embrace change was the best way for them to get ahead at work.

Employees who are motivated to learn new skills were also likely to succeed, according to 27 per cent of the 1,400 CFOs’ interviewed from random US companies. Fifteen per cent said strong interpersonal skills were important and 13 per cent said success lay with those who welcome increased responsibility.

Workers who thought keeping unsociably long hours at the office was the way to impress the boss should re-think their schedules, because just 5 per cent of CFO’s indicated that this was the way to succeed.

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Free OHS charts help keep workplace injury free

The July edition of CPD Communicator highlighted that employers were not viewing the office as a place for potential injury, even though WorkCover pointed out that injuries were not just limited to manufacturing and industrial workplaces.

Pro-Visual Publishing, is a company specialising in providing free industry safety charts and has 30 titles dealing with workplace safety issues from mining to office workers. Statistics revealing that in 1999/2000 there were more than 139,000 workers compensation claims in Australia prompted John Hutchings to start Pro-Visual Publishing.

To obtain a free copy of an IT industry Guide to Safe Workplace Practices or for information about other charts, contact Pro-Visual on (02) 9281 2611. Charts are free of charge upon request, thanks to major corporations helping raise awareness of health and safety issues.

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Workers comp to be harmonised nationally

Employers could be set to receive a break from the complexity of existing varying workers compensation and occupational health and safety schemes between states, with the Federal Government announcing it aims to harmonise them.

"Currently, national businesses must enter up to eight separate workers’ compensation schemes. This can impose a great deal of cost and complexity," said Minister for Employment and Workplace Relations, Tony Abbott.

The Workplace Relations Ministers’ Council initiated the prospect of streamlining the workplace relations framework in May, following their decision to endorse a new Occupational Health and Safety Strategy where all jurisdictions and peak employer and employee organisations are committed to setting and improving minimum national targets.

The Government expects to receive a report from the Productivity Commission, which is responding to the Government’s intent to examine the schemes, over the next year.

Related websites

www.dewrsb.gov.au

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New Super Commissioner

Leo Bator has been appointed Commissioner for Superannuation and chief executive of ComSuper, a Commonwealth Government agency providing administration services for the super schemes of public sector and Defence Force employees.

As Commissioner, under section 17(1) of the Superannuation Act 1976, Bator will report directly to the Minister for Finance and Administration and Parliament on the performance of ComSuper and has direct responsibility for the administration of a number of closed superannuation schemes.

Bator was formerly a Deputy Tax Commissioner at the ATO and commenced his new position last week.

Related websites

www.comsuper.gov.au

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CPD Companions

Premier Payroll Workshops

Whether you are highly experienced, at an intermediate level or just embarking on your HR or payroll career, CPD has a Premier Payroll Workshop to increase your knowledge and ensure your payroll moves are the right ones.

As well as coverage of topical issues, you get the latest information on legislative and statutory requirements, tax rates, administrative tips and common traps to avoid. The workshops come complete with case studies and worked solutions to give greater depth to your understanding.

Don’t miss out on CPD’s special offer where you can receive a hefty discount for multiple enrolments!

Payroll Fundamentals Workshop

Ideal for people just embarking on a payroll career or for those who manage payroll juniors, this workshop provides the essential grounding needed for the job. Learn all the basics from registration requirements for first time employees and the statutory requirements of hiring employees, to calculating PAYG tax and developing an understanding of how payroll tax, WorkCover and superannuation operates.

Practical Payroll Answers

Written for professionals with intermediate payroll knowledge, this workshop helps you find out about the latest changes and developments in your field and become more confident with payroll procedures. The emphasis is on technical issues and the various facets of the law and taxation.

Premier Payroll Update Workshop

Designed for experienced or supervisory payroll administrators, this workshop helps you tackle the regular and complex payroll changes with comprehensive coverage of compliance issues. As well as topical issues, this workshop keeps you up to date with Federal and State requirements regarding payroll tax, WorkCover, industrial relations, superannuation and privacy.

Terminations Payout Workshop

Complex termination payouts can be stressful for HR and payroll professionals who must perform them flawlessly, often within a tight time frame. This workshop focuses on the topical issues surrounding terminations, including the relevant industrial relations and taxation issues. Reduce the stress and potential mistakes of your terminations by focusing on getting calculations, documentations and procedures right first time.

Environmental Manager Conference

Be aware of the pressures and drivers influencing environmental performance by attending the Environmental Manager Conference. You’ll not only be informed of your environmental responsibilities, you’ll be inspired to act on them as Australia’s leading businesses tell you about the impacts of their own environmental initiatives.

Speakers for this event include Paul Gilding, chairman of Ecos corporation on environmental and health and safety linkages, Colin Gomm, director of environmental affairs for BP and Michael Rae, resource conservation program leader with WWF.

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