Substance over form. Delivery Company charged sham contracting activities.

The Fair Work Ombudsman gives notice on the gig economy following the focus on contract shaming due to Foodora Australia Pty Ltd charged with sham contracting activity with its employees classifying them as employees rather than independent contractor.

Contract shaming is the event where the employer intentionally disguises an employment relationship with the worker as an independent contracting arrangement where in fact is engaged as an employee. This is to avoid paying employee privileges with superannuation, workers’ compensation, leave credits, and certain taxes.

Underpaid workers include two 19-year-old Melbourne bike riders and a 30-year-old Indian immigrant residing in Sydney. These workers deliver food and drinks by car knowing they were independent contractors but in reality were Foodora’s employees resulted to an underpayment of $1,621 for the period 2015 and 2016, and missed out of superannuation. Thus, FWO has charged them doing sham contracting activities.

The delivery company claims that they required each worker to have an ABN and signed the “Independent Contractor Agreement” but the FWO said that a mere labeling of the employment relationship as an independent contractor does not make it so. It needs to hold multiple factors in considering if the worker is a contractor or an employee.

 Upon making a significant action, investigation shows that the three workers were actually employees because Foodora has shown that it has a high level of control, supervision, direction over the worker’s hour, location and manner of work. It also required the workers to wear Foodora’s branded T-shirt and food storage boxes, and they were paid fixed hourly rates or amounts per delivery.

It was also found that the workers were not actually conducting their own delivery business nor they did not advertise or promote themselves to do deliveries for the public. Furthermore, they cannot authorise other people to do their delivery duties with Foodora and did not have their own target market, business office, and insurances.

Based on these findings, the Fair Work Ombudsman claims that the workers were lawfully eligible to receive the minimum wage rates and other privileges that apply to their position under the Fast Food Industry Award 2010, plus other entitlements such as casual loading, penalty rates, and superannuation.

 Foodora will be required to pay $54,000 penalties for each of the multiple charges against if proves that they breached the Fair Work Act. Foodora was also asked for back-pay the underpaid workers.

According to the spokesperson of Foodora Australia Pty Ltd, the company will not be able to comment on this matter for now but will be defending the claims and accusations that have been made against the business.

Schedules hearing of this case will be held on 10th of July.

Furthermore to ensure compliance, bookkeepers are encourage to work with HR professionals who are qualified in providing advice, and believes that the new Diploma of Payroll Services will serve as an opportunity for bookkeepers to gain the set of skills and information about many aspects of the HR function, including the Fair Work Act and the Modern Awards, suited for payroll administration.

References:

https://www.accountantsdaily.com.au/bookkeeper/11808-bookkeepers-cautioned-in-light-of-gig-economy-crackdown

https://www.news.com.au/finance/work/at-work/foodora-hit-with-sham-contracting-court-action/news-story/278a1aa53cc5004474eb5a6aef28f4f0

Bookkeeper Gold Coast

Advertisements

Secrets to be a successful investor

The higher the risk, the higher the return. That is the game when you entered the world of investing but is it really risky to invest? Actually, having an understanding of the principles of small investments can help you lessen this risk. This will enable you to manage how and where to invest your savings. However, some investors do not have this knowledge which leads them to failure and wishes that they should have just let their funds stay in banks.

So how can you be successful in investing? This article will give you some tips how.

  1. Set your goal.

Just like any other decision-making problems, an investor needs to have a goal. You need to set objectives for what you want to do with your money. Your goal has to be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).

  1. Minimize the risk.

Many people do not dare to go investing because of risk so it is very important to understand this. There is a saying that goes “Don’t put all your eggs in one basket.” That is why investors should be wise in investing and diversify your investments. Use your assets effectively to minimize this risk.

  1. Monitor cost

Successful investors consistently monitor and try to minimize cost as much as possible to have a higher return. While investing associates a lot of fees, a wise investor must find those that provide low-cost management fees because investing in higher management fees might drag you down losing money than earning.

  1. Wait, Aim, Shoot

Wrong timing will lead you to failure so investors should not always buy and sell stocks so recklessly because this might lose you lots of opportunities. Investors need to have a full understanding of wise investing and should take time when investing. It does not mean that if stocks go down it will always stay there. No, stocks are prone to change so it is just natural for some to go down and up. Some investors get discouraged with this and sell their investments without thinking. Some investors see this as an advantage because you can invest at a lower price with a higher return on the expectation that it will rise again.

  1. Start now

Why? Starting as early as possible can help you earn more and your money will be bigger when the time of your retirement comes. Investing small amounts regularly is the best start in growing your investments. That is why there is no excuse for not investing. It does not require a lot of money to take your first investment so long as you can invest longer then you will have a better life at the end of the day.

Investing is very scary because of the risk attached to it but having the right management will help you get through this risk. Also to become a multi-millionaire, it is wiser to utilize your assets effectively.

https://www.nestegg.com.au/investing/11145-6-secrets-to-becoming-a-successful-investor?utm_source=Nestegg&utm_campaign=09_11_17&utm_medium=email&utm_content=2

https://www.loansolutions.ph/blog/7-smart-investment-principles-novice-investors/

Bookkeeper Gold Coast

Gaining Competitive Advantage over Customer Loyalty

Businesses have produced many marketing styles just to make sure that their customers stay loyal, happy, and keep on patronizing their products or services. Still, they are having a hard time meeting customer satisfaction because customer behavior is not static and they change preferences over a period of time. Understanding the needs that a customer values at a point in time is challenging but meeting these gives you a competitive advantage over your competitors. These can improve your profit, success, build a great trust with the public, a good reputation, and also helps your company grow.

Customers often buy a lot of business that will always make them happy, so how can you make your customer happy?

  1. Know your market.

It is important to know who your target market is. Selling the right products to the right market is a good start for the business.

  1. Be updated.

Customers tend to go to a business that provides most or all of their needs. The company must be flexible to changes because of different preferences. Thus analyzing what the customers’ value now can reduce customer dissatisfaction.

  1. Be known.

Of course, you cannot build loyalty if nobody is paying attention to you. Offering something valuable to customers but not being noticed is frustrating for the company. How can you engage your customers to you? One solution is advertisements however research shows that having shared values with your customers tend to build loyalty. Shared values are the largest driver of brand loyalty. If the customers have the knowledge that the company does not only perceive about earning money but also perceive to help the public or the environment will attract more customers to come and stay.

  1. Increase customer satisfaction.

A satisfied customer is a happy customer. Extend your services without losing any profit. Show some customer care. Give assistance if needed. Always wear a smile and employees must be well trained and educated as to what the company can provide for its customers.

  1. Measure customer satisfaction.

Measuring customer satisfaction can be a basis for performance and customer’s happiness. It is helpful in improving customer experience. This can be simple but also can be frustrating because not all customers can comply with answering questions for the service that the company had provided them. So, the company must have found a creative way to measure customer satisfaction. The use of Customer Satisfaction Score can be helpful because it is simple and straightforward.

  1. Prioritize customer retention.

One of the things that a company must prioritize especially on those old valuable customers. Remembering birthdays, send emails for feedbacks, answering feedbacks, educating customers with what the company can provide, establish a loyalty program, use creative surveys, and giving the best customer experience can help you in retaining customers longer.

Building trust and confidence between the company and its customers is naturally important. Practicing integrity with what the company offers consistency in providing great customer experience, providing honest information, and being true to their words will show trust. This will interest the customers to stick with this company because they can assure that the company is a reliable and trustworthy.

Reference:

https://www.helpscout.net/customer-loyalty/ Retrieved on 20 March 2018.

http://blog.clientheartbeat.com/increase-customer-satisfaction/ Retrieved on 18 April 2018.

Bookkeeper Gold Coast

Take good care of the oldies

Customers are very important for our business because they are one of the factors to consider in maximizing our business’ profitability and in reaching our goals. So having a bad relationship with our customers due to poor customer experience is a big deal for the decision makers. They should not take these lightly rather they must do immediate actions to prevent it.

For businesses, it is more important to know how to retain existing customers because these will cost less than welcoming new customers. Although young ones tend to shop more than older people, younger customers frequently purchase products from different brands because of their change of preference, trends, or they just want to explore more. This makes them not a candidate as a loyal customer unlike the older customer who was more committed to a brand in a long period of time and that has a great impact on the business if they were not properly taken care. Older customers tend to stick to products that they had tested, proven, and satisfied but there are times that a product reduces or loses its value in time which results in a failure in customer satisfaction.

In order to satisfy customers and make them patronize your products or services, you need to know what they are looking for. Usually, customers likely to be loyal to brands because of the quality, the price, and customer service.

The quality must be as good as when it was the first released or must improve and the descriptions of the product must be feasible. Commonly, if the customer notices that the quality of the product or services have been reduced or there is a difference or no effect as to its benefits, it is more likely that the customer will be disappointed and be your detractors who can wreak havoc about the product and the company, the customer might not purchase again, and even look for an alternative product from another brand that will satisfy their needs. Thus it is important that products must have a consistently good quality or even improve them based on the customer’s preferences.

The price must be adequately consistent with the quality. There must be a balance between cost and benefit. It must be appropriate for the benefits that a customer will get in purchasing the product or service. Overpricing will not appeal customers because there are a lot of alternatives that they can choose. Hence, the company must prove that their product or service is worth every penny.

 A good customer service is the last but the most crucial. Profitability might decrease rapidly if these are not managed properly. It may result in a loss of older customers, new customers, potential customer, a loss of reputation, and even loss of employees. So to prevent these from happening, leaders must make a supportive action such as providing training to customer representatives about good customer service, how to deal with the different kinds of customers, and what are the specific actions to do when a customer has a complaint or concern. Leaders must provide employees all the information and experience need so that they may deliver to the customers the things that they might inquire about the product.

Today, there are many alternatives that a potential or even existing customer may consider so it is easy to change brands. Thus the company must have a strategy on how to handle this problem. They must be updated with the trends and change of preferences of their valuable customers. It must also take into consideration the changes as to age because a customer who is at her/his teens now may have a different preference by the age of 30 so the company must consider these things.

Customers maybe your friends or critics because they can improve or worsen your product or service or even damage your reputation. Remember the power of the word of mouth is the most popular channel of communication. Technology also holds part of this communication thru phones, television, and the most popular social media accounts that I guess almost all of us know about. It can reveal one customer’s bad experience with your company to different people and can spread so easily like a virus. This might not only decrease profitability, it may also decrease productivity on employees or even a downfall for the company.

On my next blog, I will be discussing the how to have the competitive advantage to customer retention and give you some tips on how to do it.

References:

https://www.mybusiness.com.au/sales/3851-youngster-customers-fickle-but-oldies-never-forget?utm_source=MyBusiness&utm_campaign=22_01_18&utm_medium=email&utm_content=4, Retrieved on 14 March 2018.

Bookkeeper Gold Coast

Eliminate Boredom

Boredom in the workplace is just natural with any organisation. Although this is a common situation, business leaders must not underestimate its impact to the company’s improvement. Boredom will lead to a lack of interest in the job, a decrease in the productivity, consistency, and also quality of work. The excitement of the employee decreases and they lose the motivation to work. It may also be a reason for an employee to quit their job. Therefore, business leaders must know the root of this problem, address the problem of boredom, and take the best course of action.

There are different reasons why employees get bored with their work. Here are the reasons for employees boredom in the workplace as suggested by mybusiness.com.au.

  • The nature of work is not interesting
  • Too many or poorly executed meetings
  • Lack of diversity within the role
  • Not feeling challenged by assignments
  • Not enough work to do
  • Don’t enjoy interacting with colleagues
  • Poor or inefficient management
  • Overburdened by strict policies and procedures
  • Lack of understanding of the significance of their role

So how can employers turn this down to a positive attitude? Here are some tips that can help:

1. Provide training

It is better to educate your employees first than seeing them doing nothing because they do not know what to do with the new task that you had given them. This will also enhance their knowledge about their job. You can also provide them with learning new set of skills that are interesting like letting them attend seminars or workshops. Giving them multiple skills just to keep them active.

2. Job rotation

Another strategy to get your employees out of boredom is to have them switch jobs. This will only be applicable for employees that have less responsibilities. Exchanging of task to do can help employees to learn more and may also see the bigger picture of their work. Through this employees will less likely get bored being stuck in doing routinely task.

3. Promote a healthy lifestyle

Provide healthy food in the workplace if possible. Healthy foods keeps the body full of energy while feeling less bloated. Too much food can be a reason for sleepiness. Encourage your employees to do exercise because this can improve the employee’s happiness and drive to work productively.

4. Give more responsibility

An employee will be really be bored if he had a lot of idle time than having work to do. In this case you might have been underestimating your employee so better give him something more to work on. On the other hand, employees who seem to see that they have nothing to do must speak up and ask their supervisors for something that they can do. This will show the employees wiliness to exert more effort for the company. This will lighten the job, decrease boredom, and increase productivity.

5. Communicate

Always ask for an update what are the employees doing and have done and if they have anything to do next. Take a track of the employees’ improvement and inquire if they like what they are doing, what do they feel with their work, and ask for suggestions and feedback if there are any useful ideas that the employee can contribute.

Reference:

https://www.business2community.com/leadership/7-ways-to-combat-boredom-in-the-workplace-0428608, Retrieved 28 February 2018.

https://www.mybusiness.com.au/human-resources/3977-bored-workers-a-result-of-bad-bosses-inefficiency?utm_source=MyBusiness&utm_campaign=23_02_18&utm_medium=email&utm_content=1, Retrieved 28 February 2018.

http://www.dynamicbusiness.com.au/hr-and-staff/how-to-put-an-end-to-employee-boredom-in-the-workplace-09052012.html, Retrieved 28 February 2018.

Bookkeeper Gold Coast

Effective Communication leads to success

Have you ever wondered why there are a lot of products and services that are of best quality but were not popular or patronized? Why there are conflicts between employees or even with managers? These may be because of poor communication skills which lead to failure. Remember that the most fundamental skill that a successful business leader must have is having a good communication skill. That is why it is important for business leaders to be outstanding in this skill.

Communication is the process of sending and receiving information between the speaker and listener. It can be done by one on one or by a group. Having a good communication skill is essential in your work, life, and relationships. A successful communication is when the speaker has delivered the information accurately to the listener. Poor communication skill leads to failure because the information intended to deliver does not reach the listener well and accurately and can cause issues like misunderstandings, and misinterpretations. The two most audience for business are their employees and customers.

It is only natural that leaders of the business must know how to communicate effectively with their own employees because they are the ones who will help them achieve their goals. This is also ensuring that information is communicated well to avoid errors, instructions are clearly given for new task, and there is a mutual understanding between the employees and the managers or supervisors as to the expectations in executing their jobs.  It is also useful for decision making purposes whenever managers ask for suggestions from employees. This can strengthen the relationship between the employer and employees and have a harmonious work environment.

Essentially, customers also are major audience because they are the once who can improve your sales and profits. Also thanks for the advanced technology these days, customers are one of the major advertisers for your products because some customers use it on their blogs if they had loved it or even endorsed it to their families and friends.  So knowing how to market your products and services well will make the biggest impact for the company. It should be well delivered and attract the customers with the benefits to allure them to buy and patronise your products and services.

So without further ado, here are some tips to improve your communication skills.

1. Know how to use your body.

It is important to keep in mind that knowing your body language is important when it comes for communication. Facial expressions, posture, hand gestures, and the tone of your delivery have a lot to say so when speaking to a person or a crowd. It gives the viewers the idea that the speaker is confident and knows what he is saying so maintain eye contact, proper attitude, good vibe, proper posture, and your facial expression must synchronize with what you have to say to your listeners with the proper tone.

2. Know your audience.

One of the things to consider is who your audience are. Every individual has different preferences, culture, perspective, age, style, and likeness and it should be considered when communicating. For employees, understand what they expect from their employers when communicating with them. Employers can ask for suggestions regarding this matter. For customers, you would always want to know your target market because this can drag you to success or failure.

3. Keep things more interesting.

A successful communication is when the listener receives the message clear and accurately. Often times, listeners fail to absorb all information at once so it is better to over communicate just to share the whole idea to your audience. You can also mix the conversation with jokes, real experiences, or even ask for a feedback with your audience just to know that they are on the same track with you.

4. Brief yet specific enough.

There are audiences that have limited attention spans or quickly get bored. Thus try to give enough information with just a limited time. Be specific and informative in what you say. Ensure also that it is understandable and the listener got the information needed.

5. PIP Approach.

The PIP Approach or purpose, importance, preview approach is a systematic strategy in sharing new ideas or products. First start with the purpose of the product or agenda, and then list the importance of it to the listeners as to whether and how it will affect them and lastly give a preview of what was just discussed to refresh the audience with all the information discussed. This approach is helpful in sending the message that the speaker wants to deliver.

6. Know to listen.

Effective communication is when there was an exchange of ideas between the speaker and listener. So after every presentation or agenda always ask for clarifications or feedbacks. Then provide an honest answer that shows you have took it into account.

Communication is important because this moulds every individual in interacting with others. It can improve relationships and can lead to success if effectively used.

References:

https://www.entrepreneur.com/article/300466, Retrieved 28 February 2018.

http://www.collegelax.us/good-communication-leads-to-corporate-success-essay-example, Retrieved 28 February 2018.

Bookkeeper Gold Coast

Ways to reduce recurring sick leave

Under the National Employment Standards, all full-time employees, except for casuals, are entitled to have a ten days paid leave which includes sick leave and carer’s leave. Part-time employees are also entitled to sick leave but will only receive a pro-rata depending on the number of hours they have rendered. This would be accumulated annually prospectively.

In the recent news of mybusiness.com.au, they talked about the business leaders being criticized for their anti-sick leave culture. In the report, an Australian Public Service Commissioner defends the increasing use of paid sick days in the public service and criticized the private sector business culture. As I scroll down and see the comment section, netizen contradict with what the Public Service Commissioner perceive.

Chronic employee absences is another issue that a business must take to priority. This is one of the biggest sunk cost if not managed properly. It can also lead to projects delay, a lot of back lags, poor quality of work, and can make conflicts between the employer and employee due to trust issues.

There are a lot of different views on the sick leave problem. Absenteeism is always mentioned on my previous blogs and it is always related on the issues that an employee is unhappy about. There are only two reasons for sick leave. First is a real physical or mental illness and second is the abuse of the employees who take a sick leave just to be excuse from work. Thus, the company must make an immediate necessary action for this problem once identified.

The company must have a written absence management policy. This enables the management to plan and communicate different strategies for recurring sick leaves and how to implement it. This policy must be clear as to the managing of the different kinds of leave and the employee’s responsibilities in terms of providing notice of leave and the proper documentation of every absence.  This is great to promote equality and consistency among all employees across the organisation.

Educate employees. It is important to make sure that employees, especially those newly hired, to know what the policies of the company are. This can make them aware of what they should do and not to do. This will also remind them the possible consequences for their actions.

Provide support. Ask your employees if there is anything that you can do for them or ask what they feel working with your company. Let them feel appreciated and important in the business. The likelihood an employee notices that the company is providing them support whether tangible or intangible support, the higher the chances that this employee will come back to work as soon as possible or if possible, will not take any absences.

Maintain a positive work environment. On my previous blogs I mentioned that stress can lead to frequent absenteeism. Reducing the stress of the employees can likely maintain them to be fitted to work and be away from harmful illness or mental problems.

Consider giving incentives for complete attendance. This will motivate employees to come to work and be punctual.

Let them contribute more. Career growth is important to every employee and this makes them happy if they will be a candidate or be promoted. This will motivate them to exert more effort with their job and the rate of presentism will be higher.

Identify if there are conflicts inside the organisation. Harassment like bullying must be prevented and eliminated. The management must organise a meeting between the parties affected and make a disciplinary action about the issue.

Promote work life balance. Giving an allowance for non-medical leave and flexible working agreement will help employees meet their goals in life. This will give satisfaction to the employee and will not give a reason to take excess sick leaves.

These considerations for your employees will help you to ensure that your employees will be dedicated and motivated to work.

If the absenteeism is caused by having a physical illness, it would be really best for the employee to stay home and have some rest. However, there are still employees who abuse the use of sick leave even though they are completely healthy and even though the company have already exerted the effort to encourage them to work. That is why as I said earlier every leave must be documented. This document will able you to track when an employee usually has taken a sick leave. Target those who often leave on dates near to a long weekend break, every busy season, or every Mondays or Fridays. The management must put a systematic measure in addressing them and do disciplinary action if needed.

Learning to handle this problem will lead to a higher chances of success and sustain improvement for the company. This will reduce the unrecoverable cost and improve productivity. It can also improve your relationship with your employees.

References:

https://www.mybusiness.com.au/human-resources/3857-business-leaders-blasted-for-anti-sick-leave-culture?utm_source=MyBusiness&utm_campaign=23_01_18&utm_medium=email&utm_content=1 , Retrieved 27 February 2018.

http://www.michaelpage.com.cn/advice/management-advice/leadership/sick-leave-and-your-bottom-line-how-manage-workplace-absences, Retrieved 27 February 2018.

https://www.mindtools.com/pages/article/newTMM_56.htm, Retrieved 27 February 2018.

Bookkeeper Gold Coast