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Upcoming Legislative Changes

ER Changes – What is planned and when is it happening?

With several recent announcements from the Government around employment standards and reviews it can be confusing to keep up with what is planned, when it’s planned and what this means for you.

Below is a brief outline of the proposed changes and some information on what stage they are at in the process, so you can keep ahead of the game and make sure you remain compliant.

Areas to keep an eye on are:

  • Changes to the Holidays Act
  • Fair Pay Agreements
  • Changes to the Employment Relations Act, including the 90 day trial period
  • The Minimum Wage

Changes to the Holidays Act

Workplace Relations Minister Iain Lees-Galloway has commenced a review of the Holidays Act, following several high-profile cases where employers have failed to pay their employees the correct rate for annual leave.

The current Act states that holiday pay can be calculated two ways; either on the basis of ordinary weekly pay at the beginning of the holiday period or on the average weekly earnings over the previous 12 months, and that employers must pay whichever rate is the highest. Where employees are part time, have overtime rates or have bonus or incentive payments these rates can be significantly different. The practicality of calculating this every time an employee goes on leave is very difficult and many payroll systems are not set up to do this correctly. The review will cover this, as well as the full Holidays Act with the aim of simplifying the regulations, ensuring the Act is fit for purpose for the current work environment and making it easy for both employers and employees to ensure that correct entitlements are paid. This review is expected to take one year.

Fair Pay Agreements

A working group has been established to consider what a Fair Pay Agreement would cover and look like, with the aim of providing recommendations on how these may work in the future.

Fair Pay Agreements, as outlined as one of the Governments election promises, would be collective agreements which cover whole industries and set out the minimum requirements for that industry. While little further detail has been provided on these, the Government has indicated that it expects Fair Pay Agreements to be used in occupations where there is already a high level of Union membership (like nursing, teaching or manufacturing), and that once a Fair Pay Agreement is in place, it would be compulsory for all employees in that industry to be covered. There is some discussion around small employers being exempt from Fair Pay Agreements. However this will be up to the working group to establish.

The terms of reference for the working group indicate it will also be able to look at whether regional variations should be allowed in Fair Pay Agreements, how often they should be renegotiated and if they should apply beyond workers (for example to contractors.)

Recommendations are expected to be made by this group by the end of 2018.

Changes to the Employment Relations Act 2000

Earlier this year a bill was introduced to parliament which proposed changes to the Employment Relations Act. The key proposed changes are:

  • Limiting 90-day trial periods to employers with fewer than 20 employees
  • Reinstating set rest and meal breaks, with limited exemptions
  • Restoring reinstatement as the primary remedy in unjustified dismissal disputes
  • Removing the small to medium enterprise exemption to the requirements in Subpart 1 of Part 6A of the Act when a business is sold and restructured.

This bill is still at the select committee stage, so no date has been set for the changes to come into effect. This means that for these areas the provisions still stand as in the current legislation. A report is due on 1 August 2018, so we should know more about the changes, and when and if they will come into effect, then.

Minimum Rate Increases

While a commitment has been made to raise the minimum rate to $20.00 per hour by April 2021 no further specifics have been provided on how these will be achieved, what the annual increases will be and when. Traditionally 1 April is the date when annual minimum rate increases would occur, so currently it seems we will have to wait until closer to this date to understand how the annual increases will work to achieve this target by 2021.

Keeping up to date on changes to employment legislation is critical for any employer to make sure you minimise risk and remain compliant. Positive People can help you keep up to date so if you have any questions on current or proposed legislation, please contact us.

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Problem Solving

Problem Solving

One of the biggest challenges new leaders face is the sudden pressure of being the main port of call for workplace problems. They no longer have the back-up of passing issues up the chain to be solved by someone more senior. The responsibility suddenly falls on them to find effective solutions and make decisions quickly.

If they do this well it builds confidence and improves your organisation, but, if they procrastinate or do this badly it damages confidence, undermines reputations and can have a significant impact on business results.

“We cannot solve our problems with the same thinking we used when we created them”

Albert Einstein

So, how do we build our future leaders to effectively solve workplace problems?

We suggest you:

  • Empower your leaders
  • Have a defined, commonly understood problem-solving framework
  • Encourage root cause analysis
  • Develop support networks
  • Support learning from mistakes

Empower your leaders

Sometimes problems come up for your leaders, which you know how to solve. Resist the urge. Even though they may still be growing in confidence, stepping in to solve their problems will undermine their leadership role and hinder their growth as a leader. Take a step back, take a coaching approach and encourage your leaders to come to you with solutions, not problems.

Use a defined, commonly understood problem-solving framework

Making decisions when problems arise can be stressful for new leaders. Introducing a problem-solving framework into your organisation encourages your leaders to feel confident that they will solve problems effectively and reach the right solution. Having a framework which the whole business understands encourages the practice, allows for a common understanding when solving cross functional problems, and gives you a better chance of reaching the right solution.

Encourage root cause analysis

Sometimes you need to do a quick fix – and that’s fine. Business must continue, products must go out and time is money! But…..if your leaders don’t double back, establish root cause and put a solution in place which stops the problem re-occurring they will end up in continuous firefighting mode. Not good for your business, and not good for them.

Develop support networks

Usually when one of your leaders is solving a problem they need the help and support of other teams within the business. If this doesn’t come willingly it can undermine their effectiveness, confidence and how positive they feel about their role. Developing a culture and network of supportive teams is essential to good problem solving. Your leaders need to know who they can call on when they need expert input and feel confident they can trust the advice they receive.

Support learning from mistakes

Despite the best, most robust problem-solving process in place, mistakes do still happen. Using these as learning opportunities helps your leaders to accept their mistakes, look forward and become better at what they do.

Problem solving is an often overlooked, but essential leadership skill. The ability to do this well can transform your organization and keep it continuously moving forward.

We can help to ensure your Leaders have the skill and confidence to be expert problem solvers. To find out more you can check out our website here or contact us at 09-455-1077.

Following these guidelines will help you and your team members smooth over and resolve any differences of opinion. Keen to learn more? Positive People run a Problem Solving & Decision Making module as part of our popular Leadership Development Program. Contact us today atinfo@positivepeople.co.nz or 09 445 1077 to discuss our group or individual training, coaching and development solutions.

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Motivation

Motivation:

Making sure you and your team are goal focused, driven and successful.

Pretty much anyone can issue instructions and somehow get the job done.

But what is the quality like? How quickly is the job done? Does the team work together? How innovative is the team? How focused on the customer are they? Is the job delivered on time? What is the service like?

What good leaders are looking for is their team actually WANTING to do the job. And this is the mantra that stands at the core of motivation – WANTING TO rather than having to. It is about commitment, not compliance. Take a look at the individuals in your team. Who is committed? Who is just going through the motions?

“You cannot motivate anyone. You can only provide the environment where your team members motivate themselves.”

When people want to do something they can overcome the biggest of hurdles to achieve their goals.

Often people with loads of experience, knowledge and talent just fall by the wayside because they don’t have the passion to achieve things – they lack that critical WANT TO factor.

How do you ignite their passion?

There are two elements to this.

  1. Developing an understanding of each person in your team. This means there is a need to establish which buttons you need to push for each person. And each person’s motivational buttons are different, so it takes time and insight to work out what makes a person tick. This understanding allows you to temper and fine-tune your natural approach so your communication resonates with each person. People instinctively understand, appreciate and “get” that you “get” them. This individual awareness allows you to develop and grow a special relationship with each of your different team members. This means that you connect to each person and this is a strong contributor to their commitment.
  2. Creating a workplace environment that allows everyone to be their best. This requires the development of an organisational culture that is conducive to people pushing forward for both individual and organisational success because it feels good to do so.

This kind of environment is usually principled, supportive, challenging, exciting, and collaborative.

Add to these two key motivational factors an appreciation of what the organisation is trying to achieve, coupled with a clear understanding of the expectations attached to their role, and you will have motivated team members committed to succeed.

While the motivation of each individual is in their own hands, the set-up for this motivation is very much in the hands of the management.

Following these guidelines should help you and your team members ride the crest of a wave with enthusiasm and success. To find out more you can check out our website here or contact us at 09-455-1077.

Keen to learn more? Positive People run a Motivation module as part of our popular Leadership Development Program. Contact us today at info@positivepeople.co.nz or 09 445 1077 to discuss our group or individual training, coaching and development solutions.

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Managing Conflict at Work

Conflict Management:

Everyone experiences conflict – in life and at work.

Why? Because different people are always going to have different points of view and different needs, wants and values.

Differences of opinion are natural and usually need to be openly addressed to avoid tension.

So, what should we do when conflict or differences of opinion arise?

  • Deal with the issue before the situation escalates
  • Talk directly to person(s) concerned
  • Work with people to try and resolve the issue
  • If someone approaches you with an issue, be prepared to confront and work on it
  • Where appropriate, if someone complains to you about another person, encourage them to talk directly to the person involved. Give them the tools to do this through a coaching discussion.

Before you meet with the person

  • Identify the real issue, not just the symptoms/emotions
  • Be prepared to work toward agreeable solutions, not just towards “winning” (or one party winning)
  • Remember that it is not unusual to disagree and that people are quite entitled to do so. You can still find a solution and resolve the conflict.

During the discussion

  • Look at the issue through another ‘lens’ or point of view
  •  Be willing to “own” part of the problem
  • Establish a common goal (a solution) and stay focused on it
  • Define the problem and establish solid facts (yours and theirs)
  • Identify common ground
  • Agree on a common goal
  • Explore all possible solutions and select the solutions that will best meet the needs of both parties
  • Decide on a course of action
  • Summarise the agreed course of action back to ensure that the needs have been met

It is also important to manage the post-conflict situation. Don’t leave it and pretend that it didn’t happen. Follow-up is essential. This may involve checking in to see how the person is feeling and monitoring the situation to ensure agreed actions have actually happened. Then when the matter is truly resolved, it’s time to put it to rest and move on.

We can help to equip your leaders to manage conflict effectively. To find out more you can check out our website at here or contact us at 09-455-1077.

Following these guidelines will help you and your team members smooth over and resolve any differences of opinion. Keen to learn more? Positive People run a Conflict Management module as part of our popular Leadership Development Program. Contact us today at info@positivepeople.co.nz or 09 445 1077 to discuss our group or individual training, coaching and development solutions.

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Performance Management

How to have that difficult conversation

 

Preparing for performance reviews with your team should generally be a straight-forward process.

Typically, the steps include:

  1. Requesting the employee’s feedback on their own performance
  2. Gathering evidence, including things like sales figures, other KPIs/measurements, customer feedback, attendance records, etc.
  3. Completing your manager review
  4. Meeting with your employee to discuss the above, along with their personal development plan
  5. Finalising actions for the next review period

However, where you have a poorly performing employee, additional preparation is required. Here are our recommendations for approaching difficult conversations at performance reviews.

 

Be solution driven.

Any performance difficulties discussed need to conclude with an agreed way of moving forward so that every issue has a solution attached to it at the end of the discussion.

Use the phrase: “So, now that we have discussed this challenge, lets agree how to change this in the future…”

 

Keep the meeting on an equal footing.

Make certain that the meeting allows for the employee to feel that they are completely free to say what they want to – allow time and space for them to talk. If the meeting is not conducted on an equal footing, then half the communication (and much of the benefit) will be lost.

 

Discuss the differences.

Major differences between your manager review and the employee’s self-review highlight a gap in perception and understanding. The discussion will centre on why the perceptions are different and also what can be done to move the assessments up the scale.

 

Is it a problem of motivation or ability?

Ask questions to diagnose the root cause of the issue. Listen for whether it is a case of ‘can’t do’ or ‘won’t do’? Tailor the solution accordingly.

 

Discuss your role in improving the performance.

Are you helping or standing in the way of performance? Are you controlling too much or being too hands-off? Does the employee need more training? How can you can best support them to make positive changes?

 

Make a plan and follow up.

Agree and document the plan – what, who, and by when? Then don’t forget to follow-up. Too often a performance plan languishes unopened until the next review. Regular follow-up is essential to effect real change.

 

Following these guidelines should lead to a constructive conversation and the development of a quality action plan. Keen to learn more? Positive People run a Performance Management module as part of our popular Leadership Development Program. Contact us today at info@positivepeople.co.nz or 09 445 1077 to discuss our group or individual training and development solutions.

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Communication

Engage and inspire your team with effective communication. 

 

In today’s digital world communication is everywhere, yet why is it so hard to still get cut through in the workplace? From a time when under communicating was a key workplace issue, these days it is easy to over communicate, lose your messages in the noise, or get lost in translation.

 

So how do you get it right?

To make sure your employees receive and understand your key messages make sure you:

  1. Keep it simple
  2. Have a mechanism for feedback
  3. Include verbal communication in your plans
  4. Tailor your message to your audience

 

Keep it simple.

When drafting emails, memos, newsletters or updates it is easy to include too much information or over explain. This will cause your essential messages to get lost.

Before you start think carefully about exactly what you want to say – then say it. This way a clear concise message will be received.

 

Have a mechanism for feedback.

What if your message doesn’t make sense to someone? What if they don’t understand a concept? How easy is it for your employees to ask questions and are they encouraged to do so? In any company communication plan, it is essential to have a place or forum where the team feel comfortable to ask questions and deepen their understanding of your message. Remember the message that you have sent is only what your team understand it to be, so promoting two way conversations and feedback makes sense to help you get this right.

 

“The single biggest problem with communication is the illusion that it has taken place.”

George Bernard Shaw

 

Include verbal communication in your plans.

The increase in online Company communication forums means it is easy to forget the importance of face to face verbal communication, as it is so much quicker and easier to post something online. Written messages can be misunderstood, lack the right tone or a human face, which can aid the impact of your message. Regular team meetings or Company gatherings are crucial to keeping messages personal and connecting your team to your message.

 

Tailor your message to your audience.

It is easy to communicate a message in a way which you understand, but think carefully about your team – are they all like you? Do you have employees with English as a second language, or team members who don’t understand more technical terms, or don’t have an extensive knowledge of business? Giving updates which the team don’t understand adds to the noise and decreases the self-esteem of the team. Think carefully about your audience, recheck your words and write for your team – not for yourself.

 

Strong workplace communication is essential for engagement and motivation and helps to create inclusive, collaborative teams. Using the tips above will help you to get cut through in an increasingly noisy world and create a better workplace for you and your team.

Would you like to improve your Company communication? Positive People run a Communication module as part of our popular Leadership Development Program, which can be tailored for both Managers and staff.  Contact us today at info@positivepeople.co.nz or 09 445 1077 to discuss our group or individual training, coaching and development solutions.

 

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Month: March 2018

A No-Fuss Recruitment Process

You told us that one of the most important things when it comes to recruitment is a smooth, no fuss process that doesn’t bog you down in administration. This is something Positive People can deliver for you, but if you decide to go it alone… here’s our insider’s guide to some of the key time savers in  recruitment.

1.Start with a ‘Person Profile’

Along with updating your job description, take some time to consider the personal attributes, competencies, experience and skills that you’re seeking. This is great preparation for writing a targeted and effective advertisement and making sure you make the right hiring decision.

2. Stand out from the crowd with your advertisement

Candidates quickly get tired of job ads full of buzzwords that all sound the same. Be genuine, be real and tell them what’s special about working for you. On Trade Me you can add photos, so consider including pictures of your office, view, last team event, or latest project.

3. Start screening applicants immediately

On the first couple of days after placing the ad, set aside some time throughout the day to review CVs as they come in. Regardless of the job, really hot candidates can go FAST. Losing a candidate through the process due to them accepting another offer is frustrating, disappointing and means more work for you – especially if you have to go back to the drawing board and re-advertise

4. Phone screen applicants

There’s nothing worse than being 10 minutes into an interview and realising it’s not going to work due to hours, salary, holidays booked or some other detail. You wish you had Graham Norton’s red chair. Conduct a thorough phone screen with long-listed candidates, keep your notes and ensure you meet with the best people for the job.

5. Send an interview confirmation email

Sending an email to confirm your name, address, and the time cuts down on misunderstandings and will ultimately save you time. Attach the job description so candidates come ready to talk about the role in detail.

6. Give candidates an application form when they arrive for their interview

An application form is a written declaration from the candidate covering any medical conditions that may affect their ability to perform the role, declaring any criminal convictions or conflicts of interest and giving you permission to contact their referees. Gather this information now and save yourself a headache down the line!

7. Reference check soon

Once you have a candidate that is ticking all the right boxes, get on the phone and arrange to reference check early in the process. It can happen that the person you need to speak to is out of contact immediately or unable to talk to you straight away. Making contact sooner rather than later allows you to be ahead of the game.

8. Don’t forget to decline unsuccessful candidates

Decline completely unsuccessful candidates soon after they apply – this will save you fielding follow-up phone calls and emails. Once you’ve had an offer accepted, decline everyone else. You should call and verbally decline anyone who you interviewed face-to-face. Candidates are potential customers too, so this is an opportunity to protect and promote your business AND your employment brand in the market.

These few simple steps can make life a lot easier for you to save time through the recruitment process and also help you attract the perfect candidate for the role.

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2018 Employment Legislation Changes

What the changes mean for you

Although the details of the changes haven’t been confirmed yet, here are our thoughts on what some of the changes might mean for your business.

Restriction of 90-day trials

For those that employ less than 20 people, there won’t be any change. However, if your numbers are creeping up towards 20, you will need to keep across that to ensure that you’re not including a trial period if you’ve become ineligible.

If you employ 20 people or more, you will lose the ability to use the 90-day trial. You will still be able to apply a probationary period. These were in play prior to the trial period being introduced and some employers have continued to use them instead of the trial.

For more information here on the potential changes to the 90 day trial period and probationary periods

Restoration of meal breaks

In 2015 there were changes to rest and meal break entitlements. Where previously there had been minimum entitlements, the 2015 changes made it up to employers and employees to negotiate when and how long rest and meal breaks should be. An employer is currently required to compensate employees where they cannot give an employee rest and meal breaks, but the legislation does not state what that compensation should be.

The upcoming change will see a re-introduction of required meal and rest breaks to be provided over a work day or shift. However, we don’t expect this to be a huge change for most employers. Many have chosen to continue to apply the same breaks as before the 2015 changes – either written into the employment agreement, or in practice. In addition, the current legislation does state that employees are entitled to breaks. If anything, this change will just provide clarity again on what this means.

Reinstatement restored as primary remedy for unjustified dismissal

Reinstatement as the primary remedy means that if an employee is dismissed and successfully challenges the dismissal (the Employment Authority finds that unjustified dismissal has occurred), reinstating the employee to their former role is the first remedy to be considered. In 2011 the Employment Relations Act was amended to remove reinstatement as the primary remedy for unjustified dismissal. However, since then it has still been available as an option and some commentators have pointed to a growing trend in reinstatement as a remedy in recent years.

It’s restoration as primary remedy is unlikely to have a widespread impact. Most employers rarely, if ever, end up in front of the Authority. Also, where reinstatement is genuinely not practical for either party, other remedies for unjustified dismissal can and will still be considered.

 

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Month: January 2018

Employment Law Changes

This year we are expecting to see a significant shift in the employment legislation landscape, and last week’s announcement signals the start of these changes.

The following changes were confirmed last week:

  • Trial periods will be restricted to small business (up to 19 employees) only. All employers will be able to use probationary periods, but unlike the 90-day trial, these do not allow unjustified dismissal
  • Guaranteed rest and meal breaks
  • A number of changes relating to collective bargaining, including removing the ability of employers to opt out of multi-employer collective agreements.

The bill is expected to have its first reading before February 3rd. In addition, we have the following changes to paid parental leave and minimum wage coming up:

  • The minimum wage will rise to $16.50 per hour ($0.75 increase) from 1st April, with increases set to continue to a targeted $20 per hour by April 2021.
  • Paid parental leave will extend from 18 to 22 weeks from 1st July and to 26 weeks from 1st July 2020

Other changes being indicated include:

  • An increase in minimum redundancy protection for employees affected by restructuring. This could go as far as a statutory entitlement for redundancy pay of at least four weeks for the first year of service and two weeks for each subsequent year of service, up to a maximum of 20 years
  • Contractors who work under the ‘control’ of an employer, but are not employees are likely to see their rights extended for more statutory protection
  • Legislation may be introduced to make it easier for women to bring claims if they consider they are not being paid equally. In particular, changes are likely to give women in female-dominated industries better access to collective bargaining
  • Reinstatement is likely to be re-introduced (it was removed in 2011) as the primary remedy for unjustifiable dismissal claims.
  • Minimum employment standards being extended to apply to all employees working in New Zealand, including foreign employees working for foreign companies. This will impact employers with a globally mobile workforce.

It’s a case of ‘watch this space’ for the possible changes outlined above, followed by looking to see how changes will impact employers and industries when implemented. We’ll keep you informed via this blog, or follow us on LinkedIn or Facebook for regular updates. If unsure of anything, contact us.

 

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ARE YOU ON THE RIGHT SIDE OF THE LAW WITH YOUR EMPLOYMENT RECORDS?

As an employer, you must keep wage and time, and holidays and leave records that comply with the Employment Relations Act 2000 and the Holidays Act 2003. It sounds simple enough, but we all know that it’s often easier said than done. Most employers have a nagging concern that if audited there are likely to be a few gaps (or more than a few in many cases).

Earlier this year, a labour hire company working in the Waikato was fined $57,000 for failing to retain employment agreements or records of wage, time, holidays and leave. Stories like this are a sharp reminder for employers to address any gaps in employment documentation.

So, as a minimum, what do you need to keep on file?

  1. You must keep records for seven years – even if the employee has left. You can keep these records on paper or electronically, as long as the information can be accessed easily and converted into written form.
  2. For many businesses, your payroll system will keep the necessary wage, time, holiday and leave records. If you don’t have a system which contains this information, it is essential to keep your own accurate records.
  3. You must also keep a signed copy of each employee’s employment agreement, as well as current signed terms and conditions (if amended since the agreement was signed) and a clear description of all roles.
  4. In addition, it is recommended that you keep copies of work visas and drivers licences (if applicable), evidence of compliance with health and safety responsibilities, and contact details for each employee as well as their ‘in case of emergency’ contact.

What happens if you don’t keep employee records?

If you don’t have the required documentation, the Employment Relations Authority (ERA) or a Labour Inspector may issue an infringement fine. The minimum fine is set at $1000, with a maximum of $20,000 per three-month period if there are multiple breaches.

As well as being a legislative obligation, good record-keeping prevents misunderstandings and protects you and your employee if there is a problem. As such, it is also important to retain all documentation pertaining to performance and disciplinary processes and investigations, at least until such time as any formal warning expires. In a large proportion of cases before the Employment Relations Authority, although the outcome itself may be considered fair and reasonable, the employer has fallen short of the procedural requirements in running the disciplinary process. Hence, retaining evidence of your process is essential.

A recent example was an IT worker, awarded $40,000 after it was found that his employer did not provide all relevant information to him, conduct and/or document a thorough investigation process, or issue formal warnings prior to dismissal. Likewise, in July this year, a cruise ship engineer was awarded $44,000 in lost wages and compensation after the ERA found the dismissal process followed by the employer was flawed, and lacking evidence of a proper investigation or fair hearing.

Don’t get caught out! Please call us to discuss how we can help ensure your employee documentation is in order.