A new survey by Ernst & Young is making news for finding that lost productivity costs Australian businesses a total of $41 billion per year, but there’s another part of the survey that’s worth paying much more attention to from an employer perspective.

The Australian Productivity Pulse, which profiled about 2500 workers across all industries, categorised respondents in four different groups of productivity.

At the top, it classified 23 per cent of people as being in the ‘highly productive’ category, rating 9 or 10 out of 10 on a productivity scale (the national average is 7.16).

A profile of the highly productive group revealed some common or more frequent characteristics. Some of these make good watercooler gossip (such as the fact that they are more likely to be female than male), but there are some other findings that could be applied across nearly all companies.

For a start, productive employees are likelier to be healthier people with healthier lifestyles. They on average take a week or less of sick leave each year (a third take no sick days at all), but take longer breaks and holidays, and devote more time to recreation and leisure. Time spent at the workplace has next to no impact on productivity at all.

A productive employee is likely to be part of an effective team and work in a supportive team culture, confirming the importance of effective teams to productivity. He or she will also have clear expectation and goals and feel certainty about their work. Uncertainty and insecurity were found to be big drainers of productivity.

Additionally, productive employees were likelier to be working for a small business or have responsibility for a large amount of people (more than 500), had access to learning opportunities, could develop their skills and feel their work is valued.

Money and salary was found to have little to do with ensuring productivity, especially considering the highest levels of motivation were found in workers aged 65 and above.

“Older workers….have the highest productivity and motivation levels, yet they are on the lower end of the salary scale. This suggests that life stage and experience are key drivers of productivity and motivation,” the report says.

These results may not necessarily be revelatory, but they’re a handy reminder for employers about the drivers of productivity, and how they can achieve the best possible results from their most valuable resource – their people.

VECCI’s one day Building High Performance Teams program provides proven strategies for getting the most of your team, while the Introduction to Lean Thinking and Value Stream Mapping courses can identify productivity improvements – click the links for more info.

What do you think of the results of the report – do you agree with the defined characteristics of a productive employee, and the main causes of wasted time at the workplace?

Australian small businesses low on confidence and still shaken by the effects of the global financial crisis may miss opportunities to thrive due to risk aversion, a recently released report concludes.

PKF Australia’s annual Business & Population Monitor focuses on what it terms the ‘middle sector’ (businesses pulled in two directions between the prospering resources sector and struggling trade-exposed industries) and forecasts conditions will remain tough for the rest of 2012.

However the benefits from the mining boom are set to permeate other areas of the economy soon, PKF predicts, and small businesses that don’t increase investment before then will miss out.

Businesses in the ‘middle sector’ (property, construction, housing, business services, finance, etc.) are still in “cost-containment” mode and have not been taking on staff or investing in buildings and equipment, but soon “will need to increase their level of investment to satisfy the increased demand for their goods and services”.

“Even for many businesses in the middle sector that have experienced an increase in demand, they have been reluctant to expand because ongoing concerns about the global economy and the general economic outlook have knocked their confidence,” the report says.

The report also cites the difficulties in accessing credit, and high business borrowing rates as factors deterring investment, but “one positive consequence of this is that businesses are now less geared than they were previously” and able to take on more debt when conditions improve.

“Capital expenditure growth for SMEs has fallen to its lowest level in 19 years, which indicates they haven’t invested in staff, equipment or buildings over the last couple of years as they maintain a holding pattern on investment,” PKF Australia’s Matt Field said.

“This lack of investment will come back to bite when things pick up in the second half of 2012 and many SMEs don’t have the infrastructure in place to respond to the increased demand.”

PKF advises middle sector businesses, especially small and medium-sized ones, seek other alternatives to short-term credit lines to ride out waves of negative confidence, pursue energy-saving initiatives to lower costs, and invest sooner rather than later if they have the required funding, to take advantage of shorter lead times.

PKF also warned the Federal Government to boost skilled migration in order to lessen the risk of stagnation in economic recovery, as more people transition into retirement.

Is your business planning to increase investment in the second half of 2012? If not, what factors are prohibiting you from doing so?

New stats from the independent Tourism Forecasting Committee (TFC) shows Victoria is set to experience an increase in domestic and international visitation over the next few years.

International visitor nights to Victoria are expected to grow by about four per cent per year over the next eight years, based on national figures, with even stronger growth in regional Victoria than Melbourne.

On the domestic front, there has been a nationwide upturn in domestic tourism after a decade of decline, and Victoria is a beneficiary of this trend, with a higher than previously predicted increase of 0.5 per cent per year until 2020.

Again, growth in visitation to regional Victoria is predicted to be slightly higher than growth in Melbourne.

The major negative from the TFC’s forecast was the predicted decline in domestic business travellers to Victoria of nearly three per cent this financial year. The business traveller is an important segment of the visitor market and hopefully we can see this trend reversed in future forecasts.

However the overall picture for Victorian tourism is bright, with trends indicating Australia remains a popular place for international visitors despite global economic turmoil, while Victoria continues to become a more attractive destination for locals seeking a shorter break.

A new scheme has been launched that is asking some employers to run checks against young job applicants for any history of school bullying – is the scheme a legitimate deterrent to poor behaviour at school, or does it deny people a chance to reform their behaviour in the workforce?

ClubsNSW, the representative body of about 1400 registered clubs in New South Wales, is rolling out the ‘BULLYcheck’ program in the Murray region. As part of the program, any person aged 22 or under who applies for a job at a club will have to agree to a verbal referee check from their high school.

If a record of bullying, threatening or cyber-stalking is found, the person’s application will be rejected.

The program is being rolled out as a 12 month trial but ClubsNSW expects it will be implemented across the state soon after that.

“This program forces students to think about the effect their bullying will have on their own career, which for many is the most powerful motivator of all,” said Clubs NSW CEO Anthony Ball, who added that people who voluntarily raise their bullying history, and demonstrate remorse, could still be considered for jobs.

“Clubs will be going into schools with the message that the consequences of bullying will not be erased when they leave high school.”

The scheme has backing of the NSW Government’s Minister for Gaming and Racing, but Victorian Education Minister Martin Dixon told the Herald Sun today he had concerns that about schemes that could impinge on young people’s privacy.

There are also concerns that such a scheme could discourage young people a chance to reform their behaviour in a professional work environment.

We believe that in sending this clear signal that bullying is unacceptable and that there is no place for bullies in sports-based careers, the intent of the ClubsNSW initiative is welcome.

Bullying should not be condoned in any workplace. Most employers have clear practices in place to deal with workplace bullies and are aware of their obligations to provide a safe workplace for all employees.

However, any anti-bullying initiative must recognise that individuals who may have been reported as bullies during their high school years, but have since reformed their behaviour, also deserve a second chance.

What’s your opinion on the BULLYcheck program? Would you consider implementing something like this at your business if it were possible?

One of the major issues for businesses in recent times, especially small and medium-sized ones, has been access to finance and ongoing banking fees. It’s a complex area and there can be confusion about the best method to obtain the lowest fees and interest rates.

Many business owners don’t have the time, nor the desire, to investigate their banking arrangements and find out if they can save money to put into their business operations.

“Generally, existing arrangements reflect the past financing and banking needs and not necessarily current or even future needs,” writes Adam Field from Grant Thornton.

“So the start of having a better banking relationship and deal is to know exactly what you need now and in the future and to plan for that accordingly.”

The first step is to simply meet with your bank on a regular basis – once every six or 12 months is likely to be sufficient. In those meetings you can review the last few months of operations but also outline your plans for the next 12 months and beyond, and what you’re likely to require. These meetings don’t have to stem from any dissatisfaction, but just to increase awareness on both sides of what’s working, what’s not and what services you may require.

A crucial element in effective business banking is choosing an appropriate everyday business bank account. The type of account most suited to your business can depend on the industry you work in (ie. is it seasonally based, reliant on external factors like weather conditions, etc.?) and how much cash you’ll have in it at any given time.

Price comparison websites such as InfoChoice allow you to select the criteria relevant to your business and search for accounts with the best interest rates and a summary of set-up and ongoing fees. Most of these sites are comprehensive and include a wide range of providers. 

Don’t be afraid to discuss the results of your price comparison search with your current banking provider – it will provide them with extra information about where your banking needs lie, and it may help to unearth any room they have to negotiate on price.

A start-up owner may wish to use their own personal credit card for smaller expenses and emergency situations, but it may be prudent to investigate a business credit card. Though they typically have higher fees, you’ll likely receive a better interest rate and can consolidate all expenses through one card instead of multiple accounts.

Business consultant Susan Campbell writes it is common, and sometimes desirable, to split your services between two or more banks. Campbell has a list of how you should approach any formal review of banking arrangements, and advises that if contemplating changing banks to weigh up the associated fees and charges before making a final decision.

If you’re a new business, obtaining initial start-up funding is normally a huge challenge – we have blogged before on the issue and a previous ACCI proposal to introduce a temporary small business loan guarantee in 2010. While things have improved slightly since then, many businesses experience this issue. Ensure before you enter an arrangement with a bank that you are aware of its lending capacity, and how long it may take to approve any extension or increase of a loan.

As with most areas in life, the key to obtaining the most convenient and affordable banking arrangements is knowledge and, once armed with it, you’ll be in the best position possible.

VECCI members can access discounted merchant banking services with the Commonwealth Bank through the Business Saver program – click here for more information.

Victoria’s Transport Accident Commission have been promoting the 15 minute ‘powernap’ for years now as a method of combatting driver fatigue – and some workplace experts are proponents of the mid-afternoon nap, believing it can revitalise employees and lift productivity.

The powernap, according to an April article in Bloomberg Businessweek magazine, is taking off in the American finance industry, where many employees are pushed to their limits. A popular online forum reveals many methods that finance workers employ to grab some sleep wherever possible.

While many employers are unaware of their employees’ unscheduled napping, a few researchers recommend a regular nap as a technique to stave off fatigue. Dr David Dinges from the University of Pennsylvania calls it “multitask relaxing”, arguing that a short sleep enhances the brain’s functionality.

An experiment, part of a Harvard study about 10 years ago, found people who slept for a short period during the day actually improved their performance in the afternoon after napping, whereas the performance of those who remained awake deteriorated.

Considering the number of people who suffer from sleep shortage, and the potential health risks that are incurred, some employers are encouraging their workers to have short breaks to recharge and revitalise.

Initiatives include creating ‘quiet rooms’ or ‘sleeping pods’ in their buildings that workers can access when they need – one business has even created the ‘EnergyPod’, effectively a napping chair with ergonomic support, which it rents out to businesses.

For those worried that people might take workplace napping to the extreme, experts say a nap of no longer than 30 minutes is about the optimum length, ideally to be taken during the early afternoon.

Australian health educator Thea O’Connor told Radio National earlier this year that tiredness and fatigue ranks highly as a health concern among Australian workers, and napping is simple, free and “tailor-made” solution to a major health issue.

KPMG and Queensland Health have been named as Australian employers who facilitated napping but O’Connor said there’s still a huge cultural shift to take place in order to accept napping.

There are, of course, some significant barriers to power napping – work in some industries simply doesn’t allow a spare half an hour for a break, due to a lack of facilities, surrounding noise or customer demands. A stigma that napping equates to laziness is also a barrier. But a little bit of research and investigation into the benefits of napping may soon remove that last barrier for good.

If feasible, would you consider allowing employees to take short naps in your workplace? What’s your attitude to power napping?

An industrial spray painter sacked after his employer ruled he breached their ‘no smoking’ policy has won an unfair dismissal appeal, after a tribunal ruled the investigation which culminated in his dismissal had not, on the balance of probabilities, proven the breach occurred.

The painter was seen holding a cigarette in his spray paint booth by another employee, who was investigating a cigarette-like smell. The employer had a strict ‘no smoking’ policy on its worksite, due to the presence of chemicals.

The employee reported what he saw to management the next day, and an investigation was conducted. The painter argued he had puffed on an electronic cigarette, which he was using in an effort to quit smoking and had been using for months, in the knowledge of his direct supervisor and others.

The investigation eventually culminated in the painter’s summary dismissal for serious misconduct, but Fair Work Australia overturned the sacking, ruling that the misconduct he was accused of wasn’t proven on the balance of probabilities, as per the onus on employers in these instances.

Commissioner Ian Macdonald found that the employer had not found enough evidence to suggest the painter was smoking an actual cigarette, and failed to investigate whether the electronic cigarette used was capable of emitting an odour, which the painter raised as a defence in a meeting immediately after the allegation was reported.

“That was regrettable in the sense that had the [employer] asked for a demonstration (for odour purposes) from the [painter], then [the employee’s] claim that he smelt cigarette smoke could have been tested there and then,” Commissioner Macdonald wrote.

Given the seriousness of the allegations, Commissioner Macdonald also queried why it took a day to report the incident, and noted the painter’s direct supervisor was aware of his use of the electronic cigarette on the worksite and had not told the painter to stop using it.

“The evidence, in any event, against lighting up a real cigarette in a spray paint booth, is strong,” Commissioner Macdonald found.

“The evidence goes to the [painter’s] knowledge as to the consequences for lighting up in a spray paint booth as opposed to lighting up outside. Thus, he said of the spray paint booth: ‘…I’m working in an explosive environment. The last thing I want to do is blow myself up, right?’”

The Commissioner ordered the painter be reinstated to his position.

This case highlights the need to investigate matters thoroughly and fully, particularly where there are conflicting statements as to what has occurred. Where an employer seeks to rely on certain facts, they must be substantiated ‘on the balance of probabilities’.  In practical terms, this means thoroughly testing the evidence on which the employer may rely on, prior coming to a decision regarding substantiation.

For information on VECCI’s workplace relations advice services, visit www.vecci.org.au.

With a significant number of Victoria’s public transport users being short term visitors to the state, the tourism industry has welcomed the launch of the myki Visitor Pack which will offer a ticketing solution to transport users who will be affected by the cessation of the paper ticketing system.

The Visitor Pack will support visitors to the state to easily navigate the city and surrounding suburbs, and will help to drive visitors to Victoria’s tourist attractions and experiences.

Visitors are likely to stay a few days and this solution will make it easy for them to travel to some of the wonderful attractions and experiences we have both in Melbourne and broader Victoria.

Through consultation with the Transport Ticketing Authority, the industry has contributed to the design process of this product that will further encourage increased visitation to Victoria and enhance visitors’ experiences.

The myki Visitor Pack will cater for the more than 20 million annual domestic and international visitors to Victoria, including international students and business travellers.

Exclusively for travellers to Victoria, the Pack will be pre-loaded with travel credit which can be used on trams, trains and bus services and will also include $140 worth of discount vouchers to 15 of Victoria’s top tourist attractions and destinations.

Tourism operators will be invited to sell the Visitor Pack and it will also be available for purchase at Melbourne’s airports and other key visitor hubs such as Visitor Information Centres.

The needs of conference and event organisers are also being investigated as plans to cater for Melbourne’s business visitors are explored.

Dianne Smith is Chief Executive of VTIC, the peak policy council for the Victorian tourism industry, which represents key industry associations, operators and government agencies, providing one united industry voice. Visit the new VTIC website at www.vtic.com.au.