The balancing act

‘Balance’ is a word that gets thrown around often. We hear people talk about finding the right work-life balance, the balance between drinking or non-drinking, balancing what they eat, or finding the right balance in how much time they commit to exercise each week.

There is no doubt in my mind, and certainly backed up by plenty of research over the years that supports the view, that regular exercise relieves stress, improves memory and helps you sleep better.

As an averred long distance runner all my life, I know, firsthand, that when I take a week off from my normal training schedule to recover after a big run or injury, my energy levels drop significantly and I need more sleep to maintain the same pace at work.

The Global Corporate Challenge

Over the last three months, our team of 60 staff has embarked on a companywide exercise plan as part of the Global Corporate Challenge. The idea is that everyone is divided into teams to make things a bit more interesting and the challenge is to attempt at least 10,000 steps a day (walking or running).

via GIPHY

For those that are not used to regular exercise, this can be a bit of a shock to the system, however, the overwhelming feedback from team members was extremely positive! Overall, people confirmed that they felt better, slept better and achieved higher levels of energy throughout the day.

I would therefore suggest that when it comes to exercise there is little risk of overdoing things and getting the balance wrong. Whether you run, walk, cycle or swim, the advantages far outweigh the negatives.

Our new running club

Although we have finished our corporate challenge, we have now started a company running club for those that wish to keep the steps going. I believe the overall health benefits to both individual as well as company are certainly worth any business taking time and maybe a small investment in the wellbeing of your most important asset (your staff).

Workplace conflict is one of the biggest causes of employee and employer stress and it is no wonder that any disputes should be handled efficiently to prevent harming productivity and damaging team harmony.

Brad, from Acumen Lawyers, provides a case study that looks into handling disputes and useful lessons for employers.

CASE 1 – A dispute between Ms. Luckman and her employer.

Ms. Luckman worked in a permanent part-time capacity for a property management company. Her role involved managing a portfolio of properties, including sales and leasing.

Two disputes arose during Ms. Luckman’s employment:

First Dispute

Ms. Luckman considered that she had a full-time workload although she was working in a part-time capacity. She based this on the amount of properties she was expected to manage.

The dispute was resolved after Ms. Luckman raised this issue with her manager.

Second Dispute

The second dispute arose over a management decision that Ms. Luckman would be managing two new properties in addition to her normal duties.

Ms. Luckman objected to management’s decision on the basis that, although she would be burdened with the responsibility for managing the properties, she would be effectively denied the associated sales commissions because each sale would occur during hours when she was not at work.

Later that day, Ms. Luckman was invited to a meeting with the employer’s General Manager, Mr. Walker.

Meeting – 13 August 2015

During the meeting, Mr. Walker explained the reasons for the decision and advised that he did not consider the transfer of work to her as unusual or uncommon.

Ms. Luckman disagreed with Mr. Walker’s explanation and at the conclusion of the meeting made comments along the lines of “I’m done, I’m over it, I’m out of here”.

Email exchange

After returning to her desk, Ms. Luckman sent Mr. Walker an email which included the following:

“Further to our meeting today, as I feel there is nothing more to discuss, it would be appreciated if the files could now be handed over so I can continue the management of those properties”.

Mr. Walker responded by email which included the following:

“You may feel there is nothing more to discuss, but there is. It’s nothing to lose sleep over but I will make time for us to meet again”.

Dismissal

On 20 August 2015, Ms. Luckman was invited to a further meeting with Mr. Walker.

At the start of the meeting Mr. Walker read out a letter terminating Ms. Luckman’s employment. The letter advised “misconduct” as the reason for Ms. Luckman’s dismissal.

Unfair dismissal claim

Ms. Luckman challenged the termination of her employment by way of an unfair dismissal application to the Fair Work Commission (FWC).

The verdict

The FWC ultimately found the dismissal to have been harsh and unreasonable and thus unfair.

Conduct not inappropriate

The FWC considered that the conduct of Ms. Luckman in the meeting did not amount to a valid reason for her dismissal.

Although observing that Ms. Luckman had been angry and hostile during the meeting of 13 August, the FWC recognised that there had been no use of inappropriate or foul language, or threatening or abusive behaviour, by either party.

The FWC also recognised that Ms. Luckman’s email to Mr. Walker immediately after their meeting demonstrated that she was ready to follow the instruction about the management of the two properties in question.

In particular, the FWC commented:

“The meeting on 13 August 2015 was a robust discussion where an employee had the courage to voice her disapproval over the way that she perceived she had been victimised over the last four years.

The mere fact that there was no swearing or threatening language used solidifies the view that Mr. Walker’s decision to terminate Ms. Luckman’s employment was a monumental overreaction”.

Robust workplace discussions

Importantly for employers, the FWC made the following observation about robust discussions between employers and employees:

“Robust discussions between employees and employers are a part of the Australian industrial landscape.

The notion of master/servant where an employee is not allowed to question the decision of the employer disappeared with the industrial revolution”.

Ultimately, the FWC handed down a decision of unfair dismissal.

As to the question of whether Ms. Luckman could be reinstated, the FWC rejected a claim by the employer that there had been a breakdown of trust in the employment relationship.

Lessons for employers

• Robust workplace discussions between an employer and employee are an accepted feature of the Australian employment landscape.
• An employee may raise a workplace issue directly affecting him/her providing it is raised in an appropriate way.
• Employers are not entitled to deem the mere raising of workplace issue as misconduct or insubordinate behavior.

About the author

Brad Petley is the Principal of Acumen Lawyers, a boutique employment and safety legal practice based in Brisbane but happily solving workplace issues for clients Australia-wide.

Email: brad@acumenlawyers.com.au

This publication is intended only to provide a summary of the subject matter covered. It does not purport to be comprehensive or to provide legal advice. No reader should act or rely on the basis of any matter contained in this publication without first obtaining specific professional advice.

This article is copyright. For permission to reproduce this article please email your request to: info@acumenlawyers.com.au.

This might seem like a strange thing to write about… giving and receiving criticism at work!

It might also seem like something most of us don’t want to deal with or think about at work, but regardless of what we do for work and how well we might do our job, some criticism is eventually going to come our way.

When it does come our way, it can be one of the toughest moments we have to deal with in our working life. None of us like hearing negative comments about our performance and what’s even more awkward is having to tell someone else how they could improve.

Tough conversations are never easy but avoiding them all together is not a positive thing either. We all need to learn the fundamental skill of being able to give and receive advice, feedback, and even constructive criticism.

It’s only natural that we never want to ‘feel’ like we’re wrong and it’s even harder when we hear that message from someone. Instinctively, our brain tries to protect us when we receive criticism, so much so that even when we are wrong, our brain makes sure we always feel like we’re in the right. Some psychologists believe that criticism can feel like an actual threat to our survival, so it’s no wonder it can be a difficult thing for us to hear and offer.

When we’ve been given criticism, we remember the feeling very strongly but the actual details of the criticism we remember inaccurately. Apparently, if the information we hear conflicts with our self-image, our first instinct is to change the information, rather than ourselves. Therefore, receiving criticism will always have a greater impact than receiving praise.

By now you would have figured out what a delicate undertaking criticism can be. So, what’s the best way to offer critical feedback to get the most positive result?

Here are a few tips to help:

• The person delivering the feedback needs to be credible in the eyes of the recipient;
• The person providing the feedback is trusted by the recipient;
• The feedback is conveyed with good intentions;
• The feedback message is clear;
• The timing and circumstances of giving the feedback are appropriate; and
• The feedback is helpful to the recipient.

The most important step is to make sure that your feedback is coming from the right place for all the right reasons.

The main motivating factors for giving feedback are:

• Sense of responsibility
• Commitment and/or concern for another
• To guide/mentor
• To support/enhance

Another well-known strategy for giving feedback is the ‘Criticism Sandwich’…

As the sandwich shows, you begin with praise, address the problem and follow-up with more praise. The more of the conversation you can put a positive spin on, the more likely the recipient is to be in the right frame of mind to make the changes that need to be made.

Now let’s look at the best way to prepare for and receive criticism…

The best strategy is to invite feedback regularly, especially from those you trust. This will enable you to see any challenges ahead of time and will give you experience in responding positively to feedback.  Try asking your Manager some open-ended questions, for instance, “If you had to make a few suggestions for improving my work, what would they be?” or “How could I do a better job of prioritising my tasks?”.

When we receive honest feedback it can be tempting to become defensive or make excuses for the criticism. Try letting the other person completely finish before interrupting and listen intently. Ask some questions if you need to but take the time to fully digest the feedback and reflect on what you’ve heard.

The ‘growth mindset’

Those of us who have a ‘growth mindset’ are able to see critical feedback as an opportunity for improvement, as opposed to those of us who have a ‘fixed mindset’.  To be able to focus our abilities on change and growth, we need to cultivate a more ‘growth mindset’.

We can find it quite easy to take credit for our successes but admitting failure is something we don’t find easy. For example, it is easier to blame failure on external factors rather than on our own shortcomings. Take credit for your mistakes and grow!

Learning to receive and accept criticism is a process that needs to be continually worked on. Strive for the ability to treat feedback as a gift rather than a curse and remember that any respectful feedback is a gift we share to help one another grow.

It doesn’t matter what sort of entity you are using to run your business. You could be operating as a company, trust or partnership, and your income could still be deemed as Personal Services Income.

Personal Services Income is income that is mainly derived from the personal exertion of an individual.

How do I know if I am receiving Personal Services Income?

To work out if any of your income is Personal Services Income you need to look at each individual income contract and answer the following two questions:

1. What percentage of my income relates to personal exertion (i.e. labour – skills, knowledge, expertise, personal efforts of the person performing the work)?
2. What percentage of my income relates to materials, supplies and/or tools and equipment used to complete the work?

In answering the above questions, if more than 50% of the income you received relates to personal exertion then this income is Personal Services Income.

Subsequently, if less than 50% of the income received relates to personal exertion then the income is not Personal Services Income.  Below is a list of some of the types of income that are not considered Personal Services Income:

1. Sale or supply of goods
2. Income generated by income-producing assets (i.e. bulldozer hire)
3. Income from granting a right to use property (i.e. copyright)
4. Income generated by a business structure (i.e. large national professional firm)

Ok, I am receiving Personal Services Income so what does that mean?

Once you have determined that you have received Personal Services Income you then need to work out if the Personal Services Income (PSI) rules apply.

To work out if the PSI rules apply to your business you need to work through the following tests in this order:

1. Results Test – to pass this test you need to meet all of the following conditions:

   1. Paid to produce a specific result
   2. Required to provide your own equipment and tools
   3. Required to fix mistakes at your own cost

If you pass this results test then the PSI rules do not apply.  If you do not pass the results test you need to apply the next test which is “The 80% Rule”.

2. The 80% Rule

   1. Does 80% or more of your PSI come from the same client? If yes, then the PSI rules do apply.
   2. Does less than 80% of your PSI come from one client? If yes, you need to move on to the remaining tests to figure out if the PSI rules will apply.

3. Remaining tests – Can you pass any one of the following tests?

   1. Unrelated clients test (is your Personal Service Income from two or more clients who are not connected and did you get the work by making offers to the public)
   2. Employment test (does your business employ others who produce at least 20% of your principal work)
   3. Business premise test (at all times of the financial year your business was used mainly for work that generates your PSI, used exclusively for your business, physically separate from your home and physically separate from your clients)

What if I passed the above tests?

If your outcome from the above was that you passed the tests then your Personal Services Income is not subject to PSI rules.  This means that you are now classed as a Personal Services Business.  As a Personal Services Business, other than reporting certain information in your tax return, there are no other changes to your tax obligations and no changes to the deductions you can claim.  Please note: the character of the income has not changed so any profits from Personal Services Income must still be attributed to the individual who performed the service.  This must be done, regardless of what type of entity you the Personal Services Business operates from.

What if I didn’t pass the above tests?

If you did not pass the above tests then your Personal Services Income is subject to the Personal Services Income rules which means the following will apply:

1. Your business won’t be able to claim certain tax deductions including those listed below:
   1. a percentage of rent, mortgage interest, rates & land tax even if the business operates from one of the rooms in your house
   2. payments to associates for support work
   3. super contributions for associates who do support work
   4. car expenses for more than 1 vehicle
2. The Personal Services Income will need to be attributed to the individual who performed the work as this income cannot be retained in the business
3. Your business will need to meet certain tax reporting obligations
4. Your business may have additional PAYG withholding obligations
5. General Deduction Rule applies. This rule only allows businesses to claim the same deductions that the individual who performed the work could have claimed in the same situation. The expense must be an allowable deduction under tax law and relate to producing the PSI income

This is a complex area and if you have any questions or would like further information please contact our office.

Delegation is one of the most important management skills in business. Good delegation saves you time, develops your staff and motivates individuals. Poor delegation can cause frustration, stress, and confusion. This can be a contributing factor to failing to achieve the original desired outcome.

Effective delegation is critical for the survival of a successful business. Although it may be necessary, letting go of the wheel can be a very difficult task for some business owners. Some of the barriers you may have to pass in order to delegate effectively include:

• Not having the appropriate time to transfer the necessary knowledge
• Feeling like you need to do everything to make sure it gets done right
• Not having enough trust in the people around you to delegate to

While these are all legitimate barriers, you can adopt an effective delegation system into your business by using the following tips.

Tip 1: Know when to hold em’ Know when to fold em’

In every business setting there is information that can be delegated and information that cannot. Sensitive and confidential client information is best kept to the eyes of only a few whereas other general business information can be delegated without thinking twice.

Tip 2: Being fussy never hurt anyone

This step is one of the most important and at the same time is one of the most difficult to follow. It takes time to find people you can delegate to for a number of differing reasons:

• Trust
• Loyalty
• Necessary skills
• Work ethic
• Positive performance history

It may take some time but by being a little fussy you can make a good decision about who you choose to bring into the fold.

Tip 3: What’s a loop without staying in it

Now you have finalized your team and started to assign work, don’t get complacent and forget about it. Regular follow-ups are necessary and ensure the work is being done correctly and to your requirements.

On the other hand, you don’t want to micromanage your trusted team members but you should be kept in the loop for monitoring and improvement purposes. And as captain of this new team, you should remain available to all team members so you can address and resolve any potential questions or challenges.

Tip 4: Keep on rollin’

As your business changes, your delegation needs will also change. Every now and again, take a minute to look at what you have coming in and who you are delegating to. This way you can make decisions to increase team members or even outsource duties. By making this a regular event you will be ready to handle changes as they come.

For most of us, email is the most common form of business communication so it’s important to get it right. Although emails often aren’t as formal as letters, they still should be professional to present a positive image of you and your company. A large piece of any communications is email.

As a large piece of our everyday communication involves email there are a few things to keep in mind when writing them so they are still personable without being inappropriately casual.

There is research showing that hearing one’s own name activates part of the brain that increases attention.  I would assume that people pay more attention when addressed by their name whether it be in writing or verbally.  This alone is convincing me to use the recipient’s name in the email.

Always open with a greeting

One thing to check off your list is to always open your email with a greeting, such as “Dear Peter”. If your relationship with the reader is formal, use their surname e.g. “Dear Mrs. Smith”. If the relationship is more casual, you can simply say, “Hi Peter”. If you don’t know the name of the person you are writing to, use: “To whom it may concern” or “Dear Sir/Madam”.

Keep it clear

Make your purpose clear early on in the email, and then move into the main text of your email. Remember, people want to read emails quickly so keep your sentences brief and clear. You’ll also need to pay careful attention to grammar, spelling, and punctuation so that you present a professional image of yourself and the company you represent.

Common overuses

Don’t overuse exclamation points.  I am guilty of this myself as an overuse often makes things seem less important when we’re trying to emphasise their importance. Try to limit your exclamation marks to one per email.

Don’t overuse the word “please” – the word please can often be overused in an email in situations such as e.g. “Please find the document attached” rather than “I’ve attached the document here”. A more natural way to use the word please may be structured such as e.g. “Please let me know if you have any questions”.  As with exclamation marks, it is advisable to apply the one per email rule with the word “please”.

The call on emoticons

Emoticons are becoming more accepted in professional communications and can assist with interpreting the tone in which an email is read.  Emoticons can make a message seem friendlier so if that’s the impression you are aiming for, use them! I would recommend adopting your standard happy and sad faces rather than any angry or love/kisses  etc. It is advisable not to use them unless your organisation gives the ok.  Knowing your audience will assist you as there are plenty of exceptions to the rule.  It may also depend on the nature of your industry.  You may want to refrain from using them in organisations such as law firms whereas media and marketing industries may use them more frequently.  Waiting until you have established a rapport with your recipient before including them in emails is a safer option.

The sign off

Before you complete your email, it’s polite to thank your recipient and add some appreciative closing remarks. You might start with “Thank you for your patience and cooperation” or “Thank you for your consideration” and then follow up with, “If you have any questions or concerns, do not hesitate to contact me” and “I look forward to hearing from you”.

In completing include an appropriate closing with your signature e.g. “Kind regards” or “Yours sincerely” are both professional.  It is advisable to avoid closings such as “Best wishes” or “Cheers” unless it is a close friend scenario.

Check it over

To catch any typos or grammar errors the safest option is to reread, reread and reread.  In some circumstances, it may be helpful to have a colleague proof your email even for those who know and use the best practices.

Last but not least – check your work at least 3 times before you send.  Your recipient and management team will be glad you did!

Have you ever woken up and thought – Ugh, I don’t want to go to work today?  Work can be less than pleasant at times, however there are many benefits to having a positive attitude at the office.

Choosing your attitude – positive or negative?

Your attitude is a form of expression of yourself.  You can choose to be happy, positive and optimistic, or you can choose to be pessimistic and critical, with a negative outlook on your workday.  A positive attitude helps you cope better under stressful situations at work.

Workplace attitudes have an effect on every person in the organisation, from the employees to the clients and even the company owner.  Attitudes help to develop the prevailing workplace environment that determines employee morale, productivity and team building abilities.

A negative attitude in the workplace creates an atmosphere of distrust among employees and causes employees to attempt to achieve success at the expense of each other.  On the other hand, in a workplace with a positive attitude, competition is seen as a motivator that inspires employees to perform at their best to improve productivity, and encourages creativity so they feel that their ideas will contribute to the success of the organisation.

What are the advantages and benefits of a positive attitude in the workplace?

There are many advantages of a positive attitude at work, and some of the advantages and benefits are:

• Creates a positive environment
• Helps to Achieve Goals and Career success
• Stress reduction and management
• Better health
• Less sick days
• Increases productivity levels
• Produces more energy
• Improves customer relations
• Makes for better leadership skills
• Improves teamwork
• Improves decision-making
• Overcomes Challenges
• Improves motivation for yourself and others
• Improves Interpersonal Relations
• Improves the attitude of other employees
• Increases self-esteem and confidence in yourself and others
• Reduces the number of obstacles and difficulties you will encounter

If you want outstanding results, you need good people with great talent and awesome attitudes.  When attitudes go up, so does the potential of the team.  When attitudes go down, the potential of the team goes with it.

Don’t sweat the small stuff

So when you hit that brick wall whilst trying to maintain a positive attitude, remember you are the one with the power.  You can decide to live a positive life, see the good in any situation, and work to resolve conflict in a reasonable and stress-free way.  So don’t sweat the small stuff.  Remember to keep your chin up, smile as much as you can, and remind yourself that life is only as good as you make it.