Embracing the new Fair Work laws and how to deliver them productively for your business

Much has been written and reported recently about the “potential burden” of complying with the new Fair Work Act. And there is plenty of evidence if you don’t pay attention to the changes it could bite you hard. So there is absolutely no advantage in ignoring the changes but instead work out how to deliver them in a cost effective and productive manner for your business. Sure its complex, not only do you have to cope with new awards and in some cases dizzying conditions: new leave provisions, flexible working arrangements, new laws about unfair dismissal, new rules on redundancies, parental leave entitlements, bargaining obligations and rights of entry for the unions. Most of which is new and unknown territory for many business owners.  

What truly needs to be kept in perspective though is not to fear the changes but rather use them to tidy up some lazy and sloppy practices and at the same time build an HR system that can help you run your business.  It begins with a coherent and cohesive strategy however it is of little use if your people are ineffective in making it happen. The principles across large and small business in accomplishing great things starts with aligning your people to your goals, your strategy, your vision.  It is critical for all employees to understand their role, how they contribute and what they are being held responsible for. 

Contracts and job descriptions, when written properly, document ownership and accountability. Policy and procedures mark out the rules, boundaries and the behaviours in your business. Successful businesses know they need to constantly adapt, improve and innovate before the competition does. So in thinking about the Fair work Act think as well about your people their needs, your business needs and the new employment laws. Applied well can give you the competitive advantage you need. 

Lets start with basics:

1. First, make sure your current employment contracts comply with the New Employment Standards and the modern awards.
2. Have a good look at your policies and procedures: make sure they reflect your business needs?
3. Ensure job descriptions are up to date, include key performance indicators and the skills and competencies necessary to be successful.
4. Analyse your people, their abilities and capabilities, how do they compare with your job descriptions.  

You will then have a sense of how strong the alignment is between your business needs and the talent that exists in your business. You should know who your star performers are and a picture of where you are vulnerable or weak. This analysis gives you data about your business and your workforce in order to make better decisions. Now armed, you can open up discussions with each employee, cover off the basics of the new employment laws and then turn your attention to growing their capabilities in tune with their roles, their aspirations and the business.

It’s here you may discover that some of the new provisions in the Fair Work Act may in fact assist your business plans for growth. Retaining good staff and their expertise will become a critical issue as we head out of the GFC in 2010. For example applying extended parental leave and flexible working arrangements in a strategic way will enable you to comply with the standards and position your business for the future: if it’s the right thing for the employee and for the business.

Lastly communicating across your business is critical to ensure clarity, a smooth transition and to minimise disruption. Keeping everyone informed about strategy, goals, action plans, employment laws can help you to get on with running the business and not get tied up with compliance for compliance sake.

Don’t procrastinate, ensuring that the standards and modern awards are met is simple, quick and relatively painless. You will find new opportunities for business improvement when you examine your entire HR system. Let’s face it if you employ staff you have an HR responsibility and the new Fair work Act changes everything.