Recruitment is the dynamic process of attracting, evaluating and selecting the most qualified candidates for a job, all while ensuring a positive and seamless experience for the candidate. This process involves the collaboration of candidates and hiring managers/recruiters/employers building relationships centred on open, consistent and transparent communication. To achieve a successful recruitment outcome, both parties must engage in constructive feedback and maintain clear communication throughout the process. Beyond evaluating skills and qualifications, it is essential to consider a cultural fit and alignment of personal values and beliefs with the company. This alignment ensures that employees find fulfillment and purpose in their roles, contributing to a sustainable and productive workplace. How to build an end-to-end hiring process?To build an effective end-to-end hiring process, employers must focus on several key aspects that guarantee a positive and seamless experience. To start, it may be useful for hiring managers to map out the recruitment process via a flowchart to help them visualise the steps involved and to ensure they aren’t missing any key aspects of the process. You can use this one here to help get you started.Identify Hiring NeedsA business may require a candidate to fill a vacant position, address a skills gap, replace a departing employee, support growth plans or balance workload and projects. As a Hiring Manager, ask yourself these key questions to evaluate the need and guide you in creating an effective job description:Why is there a hiring need? What are the underlying reasons for the vacancy to ensure the role aligns with current business demands. Could you redistribute existing employee responsibilities before hiring someone new? What will the role look like? Define responsibilities and expectations of the position clearlyWhat skills, qualifications and experience does the successful candidate need? Identify the essential criteria to attract the right candidate Does this role fit with overall business goals/objectives Ensure the position contributes to the strategic direction of the companyWhat are you willing to pay this employee and is it in line with the market? Offer salaries/wages that will attract top talent If you are replacing someone, what did this person bring to the table that made the position worth replacing? Reflect on the previous employee’s contributions and feedback to refine the job description and improve ROICreating the job description & the Talent SearchThe job description should be based on the hiring needs identified and outline the key responsibilities of the role. The aim is to attract the candidates to enquire or take the next appropriate action, providing enough information to entice interest without being overwhelmed with details. Strive to be honest and open while keeping the description concise.Consider using the AIDA format:Attention: Grab the candidate’s attention with a compelling opening or catchy tagline.Interest: Illustrate the most interesting aspects of the job and your company Desire: Communicate your Employee Value Proposition (EVP), such as flexible work arrangements or learning and development opportunitiesAction: Encourage candidates to apply by providing clear next steps Research competitors with high applications to understand what makes their job postings successful. Tailor your job description based on the specifics of the role and your work environment. Highlight what candidates can expect in return, emphasising benefits that align with your EVP. Place these benefits at the top of your ad or create an eye-catching tagline, as most candidates spend no more than 14 seconds deciding whether or not to apply. Additional tips include leveraging multiple channels in conjunction with traditional job boards to increase reach. This may include social media, referrals, internal database, and networking. Utilise tools likeGoogle Trends to identify popular keywords candidates are using in their job searches, ensuring your job description is optimised for searchability. Shortlisting and screeningAfter receiving applications, hiring managers need to narrow them down to identify the best fit for the company. A good CV will stand out, making it easier to eliminate those with obvious issues such as incorrect spelling, grammar, or poor formatting. Hence, the importance for candidates to ensure their resumes are legible, proofread, and formatted for easy scanning. The shortlisting process can be enhanced with technology, such automated job matching algorithms, which make it quicker and more efficient. Additionally, automating application confirmations and rejections not only improves candidate touchpoints but also speeds up the process, ensuring candidates receive timely updates. Follow this automation up with personalised feedback for the applicant to maintain a personal touch and stand out. InterviewingInterviewing shortlisted candidates can be done through various methods, e.g. in-person or online, typically involving 1 - 3 rounds with a mix of approaches each time. Proper preparation is crucial for both parties to make the most of the interview and ensure the best candidate is selected. Interview Prep for CandidatesDo’s:Research Common Questions: Be ready to answer standard background questions and more tailored ones specific to the company and role. Use the STAR Technique: Structure your answers with the STAR method:Situation: Describe a situation you were inTask: Explain what you are going to doAction: Describe how you carried out the taskResult: What was the result of your actions?Practice Mock Interviews: Practice with a friend, video, or mirror to refine your presentation and responses. Give this tool a go, it provides you with tailored questions to your industryPrepare Questions: Ask insightful questions about the role or company to show your interest and understanding. Dont’s:Don’t be Unprepared: Avoid going into the interview without researching the company, role and why you are the ideal candidate. Don’t Ramble: Keep it short, sweet and relevant (STAR technique helps avoid this)Don’t Forget Professionalism: Present yourself well and be punctualInterview Prep for Hiring Manager Do’sPrepare Metrics: Establish clear metrics to evaluate candidates objectively, ensuring culture fit without bias.Ask Practical Questions: Pose questions that require candidates to apply their skills and experience to real-world scenarios.Consider their Questions: Anticipate and prepare for questions candidates may ask you.Understand Goals: Discuss candidates’ career goals and aspirations to ensure alignment with the company’s direction.Involve Team Members: Let candidates meet a few other team members to get a well-rounded view of the company culture from an employee’s perspective.Be Transparent: Clearly discuss role expectations and salary to set accurate expectationsShow Care: Make candidates feel comfortable and respected, reducing their stress.Don’tsDon’t rely solely on personality: Avoid letting personality traits overshadow skills and qualifications.Don’t Skip Feedback: Provide constructive feedback, even if the candidate is not selected.Don’t Misuse Power: Do not assert your position to increase candidates’ stress or discomfort. It is daunting enough when to meet someone they don’t know or when there is uncertainty around expectationsEvaluation and employment offer Offering a candidate a job can be the most rewarding part of the job, but on the other hand, delivering unsuccessful news to candidates can be one of the most dreaded parts of a hiring manager’s role.Living in a conflict-avoidance world, it is difficult to make and communicate decisions that impact a person’s livelihood. This is especially true given that candidates can be particularly sensitive to rejection. One of the most common complaints from candidates is not hearing back after submitting an application, leading to dissatisfaction with the recruitment process.Standing out as a company involves taking the time to provide feedback, even when the news isn’t positive and can ultimately increase employer brand. Many hiring managers, overwhelmed by the volume of applications, neglect this crucial step. However, acknowledging the effort candidates put into their applications is important. Providing constructive feedback can help candidates improve their job search and better understand what makes a successful application.Sharing data-driven insights, such as the number of applications received or the top locations of applicants, can offer valuable context. This information helps candidates understand the competitive landscape and adjust their approach for future opportunities. By offering thoughtful feedback, you contribute positively to the candidate’s experience and enhance your reputation as an empathetic and professional hiring manager. Introduction and induction of the new employees (post-placement care)Leading up to the start date, it is important to stay in touch with your candidate and are readily available to answer any questions, ensuring the best possible first day and onboarding experience. The onboarding process is a crucial indicator of your company’s culture, providing an opportunity to deliver on your Employee Value Proposition (EVP) and its promises. This can significantly impact the new hire’s longevity with your company, as 1 in 5 new hires exits within the first 45 days of a new job. On their start date ensure they feel welcome and have a detailed agenda outlining what to expect in their first week. Continue to check in with them regularly after their first week, conducting reviews to gather feedback and assess their progress. This ongoing support helps new employees feel valued and integrated into the company. What do Candidates value in the hiring process? To summarise the above candidates value the following:Clear CommunicationPrompt Responses: Timely updates on application status.Transparent Information: Open dialogue about the process and expectations.Constructive FeedbackDetailed Insights: Specific feedback on their application.Market Context: Data-driven insights to understand the competitive landscape. Efficient OnboardingWelcoming Start: A warm welcome and a detailed agenda for the first week.Support System: Regular check-ins and reviews to gather feedback and assess progressEmployee Value Proposition (EVP)Deliver on Promises: Ensure the onboarding process reflects the company’s EVPLong-term Integration: Support that helps new hires feel valued and integrated.Overall ExperiencePositive Interaction: A process that makes them feel respected and valued.Future Improvements: Feedback that aids in future job searches. Why Candidate Experience Matters?The candidate experience involves all aspects of interaction a candidate has with an employer, from the application to the first day on the job. Candidates who have a positive recruitment experience are 38% more likely to accept a job offer. How you treat your candidates directly impacts your brand’s reputation and influences how candidates perceive your company. A positive experience can lead to higher referral rates and attract and retain top talent.Benefits of a Positive Candidate ExperienceIncreased Conversions and Offer Acceptance Rate: Higher likelihood of candidates accepting job offers. Increase Employer Brand: Boosts your company’s reputation and increases referral rates. Improved Quality of Hire: Attracts better candidates and supports overall recruitment goals.ConclusionHiring the right person is crucial, but the cost of replacing a poor hire can be even higher, 30-150% of their salary depending on the size of the business. The recruitment process is time-consuming and requires careful execution, often involving significant hours and financial investment. If your HR team is stretched thin or if you’re concerned about the time and effort involved, outsourcing to a recruitment agency can be a strategic move. Agencies streamline the hiring process, ensuring it’s handled efficiently and effectively. In a competitive job market, speed is essential- delaying your hiring can mean losing top candidates to competitors. By partnering with a recruitment agency, you not only save time and resources but also gain access to a wider talent pool and expert guidance. Investing in the right recruitment partner can turn a complex process into a competitive advantage, ultimately driving better results for your company.
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6 Steps to Building a Strategic Hiring Process for a Positive Candidate Experience
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What are the benefits of engaging in retained recruitment services?
min read As the financial year draws close, many businesses find themselves with leftover recruitment budgets. Instead of letting these funds go to waste, here’s a solution that will optimise your budget and set your company up for hiring success in the new financial year. This involves forming an exclusive partnership with us. If you’ve provided a job brief to multiple recruitment agencies, you know how it goes - recruiters race to find candidates that fit your needs, often leading to frustration on both ends. Recruiters spend countless hours sourcing and advertising, only to see another agency place the candidate. Unlike the contingent hiring approach, where consultants may not fully commit to the role, a retained recruitment arrangement ensures dedicated focus and better fulfillment of your requirements. Switching to a retained recruitment model offers a solution. Working retained means we give you our highest level of commitment, allowing us to find the highest quality candidates and build relationships to truly understand your needs. This approach aligns values and outcomes, ensuring better quality hires by paying a portion of the fee upfront. We are confident in our services and can guarantee a streamlined, effective hiring process that secures the best talent. Here’s what’s in it for you:Financial flexibility: Spread the recruitment fee over two or three payments (the overall cost is the same or less with a discount) – one in June and the second / third on presentation of a shortlist or on offer or start date of the new hire. This eases your cash flow while securing top talent.Priority Service: Enjoy our highest level of commitment and priority handling, ensuring your roles are efficiently filled with high quality candidates. Enhanced Brand Protection: By working exclusively with us, your brand remains strong and consistent in the job market, avoiding the confusion and dilutions that comes with multi-agency representation. Comprehensive Recruitment Services: Benefit from a thorough, quality-driven recruitment process that includes crafting detailed job briefs, competencies and success profiles, post-placement support, candidate care, payroll management, and providing value-added content to keep you informed about market trends and changes. Time Efficiency: Avoid the hassle and frustration of recruitment by entrusting the entire process to us, allowing you to save time and achieve the results you need efficiently.At the end of the day recruitment is about building a partnership to effectively address your staffing needs and harnessing the most valuable asset an organisation possesses- its people.Reach out to us today to make the most of this offer and ensure your company is well-equipped for successful hiring initiatives in the new financial year.
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How does the 24/25 Federal Budget support your business?
min read Future Made in Australia Initiative The government will invest $218.4 million over the next 8 years, to develop a skilled and diverse workforce and strengthen trade partnerships under the Future Made in Australia initiative. This plan includes implementing a ‘Future Made in Australia’ Act to establish a National Interest Framework, identifying priority industries (e.g. renewable hydrogen, critical minerals processing, green metals, low carbon liquid fuels, and clean energy manufacturing) in two streams:1. Net Zero Transformation: Optimising investment in affordable, clean energy in priority industries, giving Australia the opportunity to build a competitive advantage; and 2. Economic Security and Reliance: Priority industries are essential to Australia’s stability and resilience Half of the funds will support innovation and commercialisation of new renewable technologies. Creating the opportunity for 10,000 new apprenticeships in the clean energy sector, including construction and advanced manufacturing, through the New Energy Apprenticeships Program. This will play a significant role in shaping the global economy and intention to capitalise on Australia’s natural resources and skilled workforce to ensure that we reach the goal towards a net zero global economy.Gender Pay Gap ReductionThe national gender pay gap has fallen to a record low of 12%. To further address this, the ‘Future Made in Australia’ initiative will invest $55.6 million over four years in the Building Women’s Careers program, promoting female participation in key industries such as clean energy and construction.In addition to this initiative, the Paid Parental Leave (PPL) scheme will further help reduce the national gender pay gap and support women’s retirement savings by increasing their superannuation balances. Starting July 1 2025, an additional 12% of Government-funded Paid Parental Leave will be added to the recipient’s superannuation account. This change encourages parental leave in the workplace and enhances the value placed on these entitlements. Additionally, $10 million will be provided to help small businesses support and administer the PPL scheme. Skilled Migration and Compliance With unemployment predicted to rise to 4.8%, the government will allocate $18.3 million over four years to reform Australia’s migration system. Key measures impacting employers include:Education on Workplace Immigration Compliance: $15 million over three years to educate migrants and employers. Employers will need to ensure work rights are verified, avoid discriminatory hiring practices and comply with government reporting requirements. Data Matching Pilot: $1.9 million to ensure compliance with immigration and tax laws. Meaning, employers could face increased scrutiny regarding the accuracy and completeness of immigrant employee records and reporting. Key measures include:MATE Program: Launching a new scheme Mobility Arrangement for Talented Early Professionals Scheme (MATE) program for 3,000 Indian graduates and professionals to work in Australia for up to two years. Giving employers the opportunity to leverage a larger pool of specialised talent, addressing skill shortages. 482 TSS Visa Changes: Reduction in work experience requirements for Subclass 482 TSS Visas from two years to one year. Making it easier to sponsor foreign workers with relevant skills and experience and fill critical skills gaps. Trades Recognition Australia Enhancements: Streamlining the recognition process for skilled workers, especially in the ICT sector. Ensuring a more readily available pool of skilled workers.Net Overseas Migration: Expected to decrease by half, from 528,000 in 2022-23 to 260,000 in 2024-25, likely due to housing and cost-of-living pressures arising from the pandemic’s aftermath. Employers should adapt recruitment strategies to address potential skilled worker shortages.Support for Small Businesses: $20,000 Instant Asset Write-Off Extension: Extended until 30 June, 2025, to improve cash flow and reduce compliance costs. Mental Health Support: $10.8 million for tailored financial and mental wellbeing support for small business owners through the NewAccess program. Inclusion of People with DisabilitiesAn additional $227.6 million will support a new program starting July 2025 to transform employment services for people with disabilities, ensuring high-quality services tailored to individual needs.Boosting Productivity The government will fund $60 million over four years to boost the Productivity, Education and Training Fund, supporting practical activities by employers and workers to improve workplace productivity and encourage cross-collaboration. International Business RelationsThe government will invest $505.9 million over five years from 2023-24 to strengthen engagement with South-East Asia. This includes $1.1 million over two years to improve visa access to Australia and provide extended entry for business and frequent travelers from ASEAN member countries, enhancing business relations, expanding markets, collaborations, and trade opportunities.The 24/25 Federal budget presents a wealth of opportunities to enhance workforce development and improve business operations. From substantial investments in skills and training under the Future Made in Australia initiative to targeted support for small businesses and gender pay gap reduction efforts, these measures will help you attract, develop and retain top talent. The extension of the $20,000 instant asset write-off and additional support for Paid Parental Leave make it easier to manage financial and operational challenges. Meanwhile, reforms in skilled migration and compliance will ensure a steady influx of qualified workers, even as overall migration numbers decrease.By staying informed and adapting to these changes, you can leverage these government initiatives to build a more resilient, skilled, and diverse workforce, ultimately contributing to your organisation’s success and Australia's economic growth.For more info on the new Federal Budget changes please visit budget.gov.au or reach out to us sirius@siriuspeople.com.au
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What you should know before implementing AI into your hiring process
min read The future of hiring is shifting to accomodate for the advancements in AI technology, which are increasingly being embraced by businesses worldwide. The global landscape of generative AI in the HR market is predominantly led by the recruiting and hiring segment, comprising 28% market share. However, with this increase in adoption,AI bias has become a rising concern, discriminatory data and algorithms are built within these systems, therefore presenting adverse consequences for organisations. AI bias refers to AI systems that generate biased results that reflect and sustain societal biases, including historical and current social disparities. Bias derives from initial training data, where, typically a Developer will input a dataset when setting up an AI model or algorithm, with large amounts of data to help it learn patterns and generate outcomes aligning to business needs. Applicant screening is a common use case for AI in recruitment, historical hiring data from the company may be used when building an AI system to support this process. This historical data may have favoured male candidates over female candidates for particular roles, and therefore can present skewed results that inadvertently prioritise male candidates over equally qualified female candidates. Consequently, this may lead to uninformed hiring decisions, due to the limited pool of talent, accessible to hiring managers. For example, Amazon discontinued the use of a hiring algorithm, after discovering that it favoured applicants based on words like “executed” or “captured,” which were more commonly found on men’s resumes. In recent studies, Shortlist.net reports on a UK-led research, revealing an increase in the proportion of masculine words as the salary or title seniority of a role increased, while expressions of EDI and flexible working arrangements dropped. Job ads for senior roles exhibit traits typically associated with men, potentially reinforcing existing stereotypes that discourage women from applying to such positions. Similarly, companies often use AI-driven job advertising boards such as Seekout which analyses user data e.g. demographics, skills, preferences, and online behaviour. Employers are then presented with talent that matches their organisational requirements. However, if businesses fail to diligently select unbiased recruitment tools, they risk falling victim to the negative effects of AI bias. Resulting in a tarnished employer brand and difficulties in attracting and retaining top-talent, as job-seekers will gravitate towards employers who share the same values and prioritise fairness throughout the hiring process.Therefore, employers are encouraged to ascertain the data source and quality, whether it be their own or from an external vendor, ask questions prompting the disclosure of AI tools employed and monitor the performance of target job advertisements. Is it capturing relevant candidates that align with your requirements? Ultimately, this improves inclusivity and diversity in the talent pool, resulting in higher quality talent. To achieve fair results and mitigate bias, prioritising AI governance is imperative. Organisations should refer to Australia’s AI Ethics principles when implementing AI strategies into their operations and ensure compliance with data privacy rules regarding generation and storage of significant personal data. Additionally, human intervention is paramount when leveraging AI to automate scheduling processes, streamline candidate screening and resume scanning, as AI may lack a nuanced understanding of human behaviour. Therefore, with human intervention fostering fair and personalised interaction throughout the hiring process, hiring managers can gain a better understanding of individual circumstances that influence their decision-making. Upholding integrity, accountability, inclusivity and trust among both candidates and stakeholders, reinforces the importance of AI Ethics principles, while highlighting the potential of AI to bring significant positive changes in the recruitment process.
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Leveraging AI to maximise your Software Development practices
min read In today's rapidly evolving tech landscape, the interdependence of PHP/Python and Artificial Intelligence (AI) presents significant opportunities for PHP/Python hiring managers. Python's versatility and simplicity make it perfect for creating artificial intelligence (AI) programs efficiently with the support of high-performance libraries. Streamlining the development process enhances productivity allowing for Developers to focus more on innovation and problem-solving rather than grappling with technical complexities. The emergence of AI tools like Siri and Tesla's autopilot features exemplify AI's impact for the Software Development space. In particular, tools such as Github Copilot have changed the game for Developers- an innovative tool that assists them in generating code based on natural language prompts. Such programming advancements indicate a future for intuitive and personalised software development. Further to this trend, PHP can be used to integrate Natural Language Processing (NLP) capabilities into web applications. By leveraging AI-driven NLP libraries, PHP empowers applications such as chatbots, custom support systems and content analysis tools to understand, interpret and respond to human language in a more humane manner. A real-life example includes Gmail’s classification system of emails (primary, social or promotions) based on email content. NLP capabilities are employed to mimic the way users would categorise their emails. Furthermore, last year, a significant shift occurred in the Python ecosystem with the introduction of Python in Excel. This integration allows users to utilise custom Python formulas, functions, and samples directly within Excel. With this capability, businesses can harness machine learning for in-depth data analysis and gain valuable insights. It also enables Developers to optimise workflows, improve analytics, automate tasks, and facilitate and craft solutions; meeting the needs of PHP/Python hiring managers effectively.As AI continues to evolve, it's crucial for Developers to stay up to date with any updates and trends. Employers should prioritise continuous learning and proficiency in areas such as architecture, design, and human oversight to remain competitive. Failure to do so, means businesses risk falling behind and missing out on the transformative opportunities that AI presents in the industry.Understanding the symbiotic relationship between AI and human expertise is essential for PHP/Python hiring managers to build resilient and competitive teams. By prioritising talent who are proficient in Python/PHP and appreciate AI’s impact, organisations can unlock new opportunities for innovation, tackle business challenges effectively and improve operational efficiency.
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What should I consider when deciding to hire?
min read According to the Australian Bureau of Statistics (ABS), January 2024 saw a seasonally adjusted increase in the unemployment rate to 4.1% and the underemployment rate increased to 6.6%. These statistics suggest potential challenges in the labour market, emphasising the need for employers to consider other important factors when deciding to hire. While the beginning of the year may have presented a favourable time to hire, organisations still need to evaluate their current needs and future projections. Factors such as business requirements, budgets, current employee performance/satisfaction and long-term strategy, should all be carefully considered when making hiring decisions. Business Requirements:In the world of IT, there is a significant reliance on contractors brought on board to fulfill short-term or project-specific needs, often requiring specialised or unique skill-sets. However, the process of upskilling current staff to address these needs can be both time-consuming and costly. Velocity Global reports employee’s needing to spend an average of nearly 10 hours a week, or 25% of their typical workload studying and completing upskilling programs. Therefore, this approach may not be suitable for quick, short-term requirements. Hiring a new employee with the necessary skills and experience readily available is often more convenient. Working with a recruiter can significantly reduce the time it takes to hire by more than a month. In a candidate-rich market, employers tend to get inundated with applications, therefore it is not uncommon for the shortlisting process to be lengthy e.g. interview invites can take a few days to a few weeks for individuals to receive. Additionally, employers need to consider an employee’s notice period, which typically is four weeks, further delaying the process. Recruitment agencies add value by saving time for employers, as they invest daily in building talent pools of qualified candidates who are readily available. Similarly, in the blue-collar industry, where turnover rates are high and there’s requirements for a large volume of workers, recruiters play a crucial role in swiftly filling positions. For example, time to fill can be in a matter of hours to a couple of days, providing candidates who are compliant, qualified and ready to start immediately. Budgets:A general rule of thumb is that if the cost of not hiring exceeds the cost of hiring within the next year, then it is certainly the right time to bring on employees. EOFY may present as the right time to hire for many businesses, as it is typically a time for businesses to review their budgets for the past fiscal year and use this to determine how they will allocate resources and set financial goals for the upcoming year. When creating a recruitment budget, businesses should consider the followingFixed costsVariable CostsRecurring costs Time period Advertising RecruitersTraining/Assessments/Compliance Current employee performance/satisfaction:When employees are overwhelmed due to increased workload or a business experiences rapid growth, the demand for productivity often outpaces the capacity of the existing workforce. In such situations, employees may find themselves stretched thin, leading to feelings of being overworked or burnt out. Consequently, this not only affects employee satisfaction and morale but also increases the likelihood of errors and decreases productivity. Moreover, when employees are consistently operating at full capacity, they may struggle to effectively address customer needs or capitalise on business opportunities, ultimately resulting in lost revenue for the company. Therefore, it becomes imperative for employers to recognise these signs of strain within their workforce and take proactive steps to alleviate the pressure. Long-Term Strategy:Long-term strategic planning plays a significant role in determining whether a business should hire additional employees. When considering a company’s growth and sustainability, hiring decisions should align with activities and goals to support this. This could include expanding into new markets, launching innovative products or services, or enhancing customer experience. Additionally, hiring new employees isn’t just about addressing current gaps in capacity but also about building a strong and resilient workforce that can adapt to evolving market and industry changes. To attract the best talent, it is imperative for organisations to implement a long-term recruitment strategy, thereby securing the right talent in place to drive success and achieve organisational goals. In conclusion, as organisations navigate the complexities of the labor market, it's essential to approach hiring decisions with careful consideration of various factors, such as business requirements, budgets, employee satisfaction, and long-term strategic goals. By prioritising these considerations, businesses can ensure they're equipped to make strategic hiring decisions, while building a resilient workforce poised for sustained success in the ever-changing market.
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Industrial Reforms Transforming the Workplace
min read The Closing Loopholes Bill was split in two parts last December after the first part including laws around the Same Job Same Pay Bill was passed in parliament. Allowing applications to be lodged to the Fair Work Commission (FWC) which ensures labour hire employees are paid an equivalent wage to those directly engaged under a host enterprise agreement (EA).The second part of the Closing Loopholes Bill has been passed through both Houses of Parliament as of February 2024, but is yet to receive Royal Assent (formal acceptance by the Governor-General). Fair Work Legislation Amendment (Closing Loopholes No. 2) Bill 2023 covers the following, but not limited to:Definition of employee vs. employer vs. independent contractor Definition of casual employee and casual conversionMinimum standards and dispute resolution for employee-like workers performing digital platform work Minimum standards and dispute resolutions regulated road transport industry Right of entry for suspected underpayments and increased maximum penalties for underpaymentsRight to disconnect outside of work hours Definition of employee vs. employer vs. Independent ContractorThe new definition of employee and employer will provide clarity to their respective roles and in turn set foundations for protections, rights and entitlements offered, and will be determined by ascertaining the “real substance, practical reality and true nature of the relationship between parties”. Employers will need to be mindful that once a contract is in place whilst the written terms are important, the behaviour and interactions of both parties will play a crucial role in determining the true nature of the relationship and will influence how the relationship will be legally interpreted e.g. employee or independent contractor. Consequently, this may create uncertainty for businesses when engaging contractors, as they may later be classified as employees. The potential for misrepresentation claims known as ‘sham contracting’, will mean an employer must demonstrate that it is ‘reasonably believed’ that the engagement was for an independent contractor relationship to avoid heavy fines.Furthermore, access to dispute resolution will be available to independent contractors below the high-income threshold via the Fair Work Commission in relation to unfair terms in service contracts. Independent contractors who earn above the high-income threshold (undetermined), will have the right to opt out of the employee/employer definition and will continue to have access to solutions for unfair or harsh contract terms.Definition of casual employee and casual conversionLast year we worked on a blog that focused on casual conversion and the proposed amendments to the definition of a ‘casual’ employee. Casual employment will be where:no firm advance commitment to continuing and indefinite workthe employee is entitled to a casual loading or a specific rate of pay for casuals Employers will need to consider the employee’s work patterns, the likelihood of ongoing work availability, offering, accepting (or rejecting) work, and whether other part-time or full-time employees complete a similar role.The pathway to permanent employment will be accessible for employees who have worked for 6 months (or 12 months in a small business) and will be able to request conversion to permanent employment if they believe their working arrangements or work practice no longer meets the definition of a casual. Employers will still be required to offer eligible employees conversion after 12 months. Minimum standards and dispute resolution for employee-like workers performing digital platform work Workers in ‘employee-like’ forms of work, including the gig economy are subject to minimum standards, a consent-based collective agreements framework, and access to dispute resolution regarding unfair deactivation from a digital labour platform e.g. Uber, Airbnb. ‘Employee-like’ workers are characterised by:Low bargaining powerLow authority over the performance of workReceives remuneration at or below the rate of employees performing comparable work. Employers need to be aware of the distinction between ‘employee-like’ workers and independent contractors. Misalignment is common and could potentially raise questions regarding their classification and entitlements, highlighting the importance for employers to remain informed on the new law and uphold fair treatment to all. Minimum standards and dispute resolutions regulated road transport industry Workers in the road transport industry are subject to new minimum standards, a consent-based collective agreements framework and access to dispute resolution for road transport contractors that have been unfairly terminated. Standards may include terms about payment, deductions, working time and insurance. The Fair Work Commission cannot include terms that would change the form of engagement or how they are hired/treated. The new ‘unfair termination’ dispute resolution process will be available for road transport contractors who have worked for a road transport business for at least 12 months. Right of entry for suspected underpayments and increased maximum penalties for underpaymentsUnions currently give an employer at least 24 hour notice that they wish to enter a worksite. The new law will allow unions to go to the Fair Work Commission for an ‘exemption certificate’ which will waive the current process if it concerns the underpayment of wages or other monetary entitlements. Employers need to assess existing procedures to ensure they align with the new amendments. Right to disconnect outside of work hours The amendments will introduce a new law allowing employees to refuse to answer or monitor unreasonable work calls and emails in their unpaid personal time from an employer or third party. Employees will be able to raise a complaint via the Fair Work Commission, in which organisations can face hefty fines if found responsible. It is encouraged that employers set clear expectations to mitigate misunderstandings. In conclusion, the industrial reforms that lie within the Fair Work Legislation (Closing Loopholes No.2) Bill presents a crucial opportunity for employers to understand and comply with the new updates. By staying up to date and proactive, organisations can adapt to these changes effectively and foster a culture of compliance and fairness in the workplace. For more information about these changes, please visit the Parliament of Australia website. If you found this blog post useful and want to stay updated with what is going on in your market, please email us at sirius@siriuspeople.com.au
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Key Changes to Fixed Term Contracts for Australian Employers
min read From the 6th December 2023, changes come into place for employers who engage employees on Fixed Term Contracts (FTC). What is a Fixed Term Contract? A fixed term contract has a specified end date. It is not to be confused with a maximum term contract which also has a fixed end date but can be terminated by either party before that time. However, maximum term contracts will also be affected by the following changes. What are the changes?It is a requirement for employers to provide all employees engaged on a Fixed Term Contract from 6th December 2023 a Fixed Term Contract Information Statement (FTCIS), it will be available to download on the Fair Work website from that date. Time Limitations: A fixed term contract cannot be longer than 2 years including extensions and renewals Renewal Limitations: Employers cannot extend/renew a FTC more than once even if it falls within the 2 year period. When an employer extends/renews a contract it cannot exceed more than 2 years of workNew/Consecutive Fixed Contracts Limitations:A new FTC cannot be issued if the new contract is mainly for the same work as the previous FTCThere must be a substantial break between the previous and new FTCThe combined total period of employment between the previous and new FTC is no more than 2 yearsA new FTC cannot be issued if the previous FTC wasextendedA new FTC cannot be issued if the initial FTC (prior to the most recent contract) was for mainly the same work or there was continuity of the employment relationship from the period of time between the initial contract and the previous contract. If the employee has never been engaged in a FTC in the past with their employer, then a FWIS Fair Work Information Statement should be issued in conjunction with the FTCIS. Are there any exceptions to the rules?Specialised skillsTraining arrangements e.g. apprenticeshipsEssential work e.g. seasonal workersEmergency circumstances or temporary absencesEmployees surpassing the high-income threshold e.g. $167,500 per annum full timeGovernance rolesAward provisions Why are these changes coming into effect?These changes are being implemented across the country after the Federal government came under scrutiny for the overuse of fixed term contracts. The aim is to hinder employers from entering into successive fixed term contracts, which reduces permanent job opportunities for the 390,000 Australians who are currently engaged on fixed term contracts. What happens if I do not comply with these new rules?The contract’s expiry date will no longer apply, while other terms and conditions outlined in the contract will still apply, including entitlements from any relevant legislation, award, or agreement. Penalties will also apply. What do employers need to do?Review current contracts of employment to ensure you are well equipped to comply with the changes coming into place on the 6th December 2023. Prepare and create process documents for when FTC’s are offered/expire so there is a plan in place for offboarding/retaining these employees Ensure a FTCIS is given to the employee prior to the commencement of their contract Visit the Fair Work government website to find out more or reach out to one of our friendly consultants who would be more than happy to assist you with navigating these changes.
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Salesforce: A year in review
by Sirius Peoplemin read On average I speak to around 50 candidates, and a further 30 business leaders / hiring managers EACH WEEK. These conversations have shaped my perspective and understanding of the Salesforce ecosystem. Here is what I have learnt from their experiences so far…To give you some backgroundDuring 2021/2022 there was a dramatic increase in demand for all IT roles, particularly Salesforce professionals, due to the economic pause of 2020 and the shift in business requirements post-pandemic. Resulting in many Salesforce positions being left vacant. To keep up with demand, there was an influx of junior candidates entering the market being upskilled through various training companies and consultancies offering a ‘learn and you earn’ style of employment. With such high demand, salaries were heavily inflated and to retain staff, businesses were having to offer expensive counter-offers. Fast Forward to 2023Due to economic pressures with interest rates, inflation and an uncertain economy, businesses refrained from investing in new technology. This not only affected new sales for Salesforce but also resulted in a reluctance among businesses to allocate resources to digital transformation technologies, hence Salesforce was frequently overlooked. However, we did see a shift towards growing internal Salesforce teams, rather than the use of Salesforce partners for managed service solutions. Therefore, positions like ‘Salesforce Administrator’ or ‘Salesforce Platform Owner’ were on the rise. Having dramatically hired junior-mid level professionals in 2021/2022 (usually with inflated salaries), Salesforce partners had no choice but to initiate surges in redundancies, leaving candidates without a job and companies flooded with applications- sometimes exceeding 100 per role. This overwhelmed recruitment processes and left internal talent teams and hiring managers stuck wading through hundreds of applications. This pattern continued throughout most of the year….In the last quarter, there seemed to be a positive shift in the market, business confidence had returned and there was more talk of digital investment. Companies wanted to hire Salesforce talent, with a preference for more experienced candidates. However, the challenge was, that those experienced candidates who had seen the market downturn at the beginning of the year, didn’t want to risk leaving their secure jobs to start a new role, with a 6 month probation period. In response to this, we often saw internal recruitment teams try to attract the right candidates via adverts, given the high number of applicants seen earlier in the year. However, after multiple rounds of advertisements and CV reviews with little to no success, employers struggled to find the right talent. With poor recruitment processes in place, many candidates have become disillusioned with companies they’ve applied to but never heard back. As we head to the end of the year, the future seems brighter for the Salesforce recruitment ecosystem. With more businesses looking to invest in their Salesforce solution in the new year and some projects kicking off early which has driven a need for Contractors.In terms of talent flow, it appears that salaries aren’t going to spike like they did in 2021/2022 and candidates can expect a small increase in salary for their next role. We will also see some candidates taking a side step in their next role in order to gain experience on other / newer Salesforce technologies.
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What you need to know about the Same Job Same Pay Bill
by Sirius Peoplemin read Edit 14.2.24On 7 December 2023, the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 passed through the Senate, including provisions that prohibit companies from undercutting Enterprise Agreements to offer lower wages to labour hire workers.***The Same Job Same Pay Bill aims to close the legal loopholes that allow employers to pay labour hire workers less than someone permanently employed directly through an employer, when performing the same role. This is prevalent amongst larger employers who seem to deliberately curve agreed rates offered in Enterprise Agreements, by outsourcing work to labour hire contractors and engaging in enterprise bargaining. The Fair Work Legislations Amendment (Closing Loopholes) Bill 2023 aims to address this issue. If this Bill is passed in Federal Parliament later this year, it will allow workers and their Unions to apply for a ‘protected rate of pay’ based on the host employer’s Enterprise Agreement. It is the host employer's responsibility to ensure they provide the labour-hire business with all required information aka ‘Protected rate of pay,’ to ensure such agencies who are responsible for paying employees do so fairly, and on par with someone employed directly through the host employer doing the same job. There is a misconception that workers who are more experienced or have longer tenure in their roles will be paid less. Resulting in some businesses facing challenges surrounding budgets, competitiveness and retention. However, this is highly unlikely as there are awards and pay deals in place that include different job classifications and grades that the Enterprise Agreements take into consideration. Additionally, it is common for casual employees to be paid more than their full-time counterparts to compensate for the lack of entitlements. Therefore the bill will include a fair definition of ‘casual’ work to ensure that casuals in long-term, on-going roles can access entitlements and prevent exploitation. About one in 50 people employed in Australia are employed through labour hire.How can using a labour hire agency assist with navigating this policy?Employers should continue to utilise labour hire agencies to effectively manage short-term needs, unexpected demand surges and absenteeism. Whilst there are some sectors that are likely to be unaffected by Same Job Same Pay such as Administration, Tech and Healthcare there are concerns that these firms can still face large compliance costs and create more red tape. Due to an obligation being placed on employers to ensure labour hire agencies are fed the right information for any pay differences and paid correctly and fairly. Streamlined payroll processes to minimise errors, therefore reducing the likelihood of employers enduring large-scale back payments.Employers often use labour hire agencies to engage casual workers, often opting for temp-perm hires, meaning employers can ‘try before they buy’ allowing these casuals to be bought on full-time after 3-6 months. Therefore, employers have flexibility to place these casuals in the business where they need, without having to pay an agency an upfront lump sum fee. Have questions or thoughts to share about fair compensation? We're here to listen. Contact us today to explore how we can work together toward a more equitable workplace at sirius@siriuspeople.com.au
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