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marvinHR News 28MAR24

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1.       WEEKLY INSIGHT.

It seems that we have forgotten the age-old wisdom of “working smarter, not harder”, as Australian workers are working more yet achieving less. According to the Annual Productivity Bulletin (Australian Government 2024), labour productivity in Australia has fallen by 3.7% from 2022-23, meaning Australian workers produced 3.7% less output per hour worked compared to the previous year. Further, nominal wage increases without accompanying productivity growth result in billions of dollars of economic losses(AICD 2024).  However, innovation is not to blame for Australia’s plummeting productivity – it is the result of poor management.

The World Management Survey (WMS), which interviewed 20,000 managers in over 35 countries, uncovers a critical insight: poor management practices are responsible for a staggering one-third of global productivity shortfalls. The WMS also rated managers by country out of 5, with higher scores indicating better management practices. The findings serve as a crucial wake-up call, as Australia’s management practices lag significantly behind those of other developed nations. The US ranked first with a manager score of 3.3, while Australia was at least 7 positions behind, with an average manager score of 2.9/5, placing them behind countries such as Japan and Germany.  

HR leaders need to step in – they are the key. One solution is Empowering Leadership. The Impact? $1.7 billion saving in work-related mental health costs, a 10% boost in staff productivity, and a 25% decrease in employee turnover. Secondly, helping employees find meaningful work. Thirdly, remove ineffective KPIs like “increase annual sales by 15%” and replace them with human-centric goals: “How many employees in your team have you upskilled this quarter?”. Fourthly, weekly 1o1s are used, and finally, toxic managers are weeded out, or strategies to change their behaviours are implemented (HRM 2024). The cost of inaction is too great— it is time for Australia to reclaim its position as a global productivity leader. The choice is clear: evolve or be left behind.

HR leaders need to step in – they are the key. One solution is Empowering Leadership. The impact? $1.7 billion saving in work-related mental health costs, a 10% boost in staff productivity, and a 25% decrease in employee turnover. Secondly, helping employees find meaningful work. Thirdly, remove ineffective KPIs like “increase annual sales by 15%” and replace them with human-centric goals: “How many employees in your team have you upskilled this quarter?”. Fourthly, weekly 1o1s are used, and lastly, toxic managers are weeded out or strategies to change their behaviours are implemented (HRM 2024). The cost of inaction is too great— it is time for Australia to reclaim its position as a global productivity leader. The choice is clear: evolve or be left behind.

  • Labour Productivity decreased by 3.7% in FY 2022-23.
  • Wage increases without Productivity Growth = Billion Dollar Problem.
  • Why is productivity plummeting? Poor Management. 
  • Implementing empowering leadership could yield savings of nearly $2 billion.
  • Shift the focus from rigid KPIs to human-centric goals for managers. 

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2.       HR/IR SNAPSHOT

On Wednesday, March 25th, the marvinHR team was thrilled to participate in the enlightening AHRI Event, “Closing the Loopholes.” The event focused on several upcoming HR changes (See The Timeline – FWO 2024) that will impact many people, including tackling underpayments and introducing a new criminal offence for industrial manslaughter under WHS (starting July 1st, 2024). Other changes discussed included the redefinition of Casual Employee terms, the introduction of The Right to Disconnect Policy, and the expansion of gig workers’ abilities to challenge unfair contract terms to the FWC. These changes will begin rolling out on August 26th, with a move towards the criminalisation of deliberate wage underpayments starting January 1st, 2025.

At marvinHR we are prepared to offer specialised advice that is tailored to seamlessly integrate with your unique requirements, providing support as you navigate these changes. Whether it’s guiding you through the nuances of converting casual employment to part-time or full-time, assisting in distributing casual employment information statements, devising strategies to embrace The Right to Disconnect in your workplace culture, developing specific policies for this new bill, or conducting comprehensive wage audits, our consultancy services are comprehensive and tailored.

The stakes are high: intentional wage underpayment will have a maximum penalty of nearly 8 million dollars, and individuals can be imprisoned for up to 10 years. By August, employers must respond within 21 days of a notification from a casual employee and consult with them before responding. The FWC has also increased civil penalties for wage exploitation- where the maximum fines may be determined by reference to 3 times the value of the underpayment in certain circumstances. With marvinHR you’re not just adapting to changes; you’re staying ahead, ensuring a smooth transition for your organisation through either our direct consultancy services or by empowering you with the knowledge and tools for independent management. Contact our team today.

  • The marvinHR team attended the Closing the Loopholes online webinar, the key points: 
  • The issue of Underpayments, effective from the 1st of July 2024. 
  • Changes to the definition of a Casual Employee and The Right to Disconnect policy are scheduled for the 26th of August 2024. 
  • The criminalisation of intentional wage underpayments, starting from the 1st of January 2025. 

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3.       TEAM DIARY 

The Independent Commercial Communications Business of Western Australia (IN:WA) is an incredible organisation that is dedicated to supporting independent businesses in Western Australia, specifically in the creative communications industry. They’re all about fostering collaboration and innovation to help businesses grow and excel in their field. Director of marvinHR Nick Marvin was a panellist at the Power of Culture event yesterday, the 27th of March. The other panellists were Bev Andrews (the founder of ASPIRE Change Management) and Natalie Sarich-Dayton (CEO & Managing Director of Brownes Dairy). 

Yesterday March 27th, IN:WA hosted the Power of Culture event. It was such an honour to see our director, Nick Marvin, sharing his insights. He was joined by some other amazing panellists like Bev Andrews (the founder of ASPIRE Change Management) and Natalie Sarich-Dayton (CEO & Managing Director, Brownes Dairy), who are both visionaries when it comes to leading transformational change. 

Together, these incredible panellists gave attendees some valuable insights into how culture can help businesses stay competitive, innovative, and true to their values. It was truly inspiring to see so many people coming together to celebrate the intersection of culture and commerce. This event was a real reminder that if you’re looking to thrive in the creative communications industry, you must be future-oriented and ready to adapt to a constantly evolving business landscape.

o    The Independent Commercial Communications Business Western Australia 

o    Power of Culture Panel Event on Wednesday the 27 March. 

Panellists:

o    Nick Marvin – director of marvinHR.

o    Bev Andrews – founder of ASPIRE Change Management. 

o    Natalie Sarich-Dayton – CEO & Managing Director, Brownes Dairy. 

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4. THE WEEK’S TOP 4 READS

1. Meetings are ineffective 72% of the time – 5 reasons why! (Atlassian) Can’t get a word in; No clarity on next steps; Information on repeat; Could’ve been an email; and Conversational chaos

2. ACTU push for 5% pay hike in upcoming annual review …Arguing that an inflation-beating pay increase can be afforded by businesses when profits are surpassing their pre-pandemic levels.

3. Ron Friedman on How High-Performing Teams Build Trust

4. Fixed Term Contract and Employer’s obligations post expiration – case study

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