Industrial Relations law can drive productivity

Many business owners view industrial relations as something with which they must comply rather than an important opportunity to increase productivity.

The truth is that industrial relations law can be used to generate greater productivity.  For example, we know that we need to undertake fair processes when performance managing employees.  When done properly, performance management can avoid the need for termination of employment (which we all know is a costly exercise by the time recruitment of a replacement is factored in) and can lead to an underperforming or disruptive employee substantially improving their performance and productivity as a result.  This can also have flow on effects for other employees who can see improvements in their workmate’s performance.  It builds confidence in the process and can inspire improved productivity all round.

Next take the example of a merger or acquisition where newly transferred employees are offered better terms and conditions as a result.  Provided that the whole change process is managed in a way that allows for the melding of cultures in a way that fosters a collective desire to move toward a new and united future, the better terms and conditions are likely to inspire greater productivity in transferred employees, particularly once the change has been fully bedded down.  This might also prompt existing employees to increase their own productivity in response.

Another situation in which industrial relations law can be used to increase productivity is through enterprise bargaining.  It’s commonly accepted that enterprise bargaining agreements allow employers and employees to agree on some creative ways to get the needs of both parties met.  For example, enterprise agreements can be set up to provide for more flexible hours and rosters, new training and career opportunities, set new production targets and even allow for profit sharing arrangements or performance related pay.  All of these innovations are, at the very least, likely to improve relations between management and staff but are also likely to improve productivity as a result.

It’s time that industrial laws were seen as more than a necessary but much resented drain on resources.  By thinking about the opportunities presented by using industrial laws in creative ways, it doesn’t take too much imagination to see that productivity gains are there for the taking.

At HR Business Direction we can assist in identifying and rectifying your industrial relations risks.  Contact us here.

Melissa Fitzpatrick LLB (Hons); B.Int.Bus; IRSQ
Industrial & Employment Relations Specialist
melissa.fitzpatrick@hrbd.com.au
07 3890 2066
www.hrbd.com.au