the dark side of the Australian workplace

The dark side of the Australian workplace

the dark side of the Australian workplace

The founder of a law firm recently explained long working days under high pressure at his firm, saying: “People come here with the knowledge and expectation that they’re going to have to work hard”.

He could have been speaking for any number of employers in high-stress industries.

As young graduates leave university to work in top-tier law firms, in hospitals, merchant banks and professional services, they are already well acquainted with hard work and competition. They have strived to become the best and brightest through many years of education, often polishing their resumes with extra-curricular achievements in sport, music and volunteer work – all the while supporting themselves with part-time jobs.

These young people know what it is like to “burn the candle at both ends”, to run themselves ragged getting ahead of the competition so they can get one of the prized entry-level jobs that may lead to continued success.

They expect to be worked hard. They probably don’t expect to be worked to death.

Two leading law firms have recently been investigated over complaints about “extreme working conditions”, where one solicitor warned that it had reached a “point someone will die or have some other physical or mental health episode’’.

An unprecedented move by WorkSafe

In one well-publicised example, WorkSafe Victoria had launched an investigation into King & Wood Mallesons in Melbourne after a similar complaint regarding overwork and exhaustion, particularly during the Banking and Finance Royal Commission.

King & Wood Mallesons chief executive partner, Berkeley Cox, says the legal industry is paying much closer attention to the issue of work stress.

“We have learnt so much over the past year and recognise that there is a lot more that law firms can and should be doing to improve the everyday work experience for individuals and the systematic issues at an organisational and industry-wide level,” he says.

“While we have much more to do on our journey, we want our workplace to be one where every individual has the opportunity to flourish.”

WorkSafe’s action is regarded as unprecedented in the legal industry and some pundits have nominated it as a “death knell” for the concept of the “billable hour” – whereby firms charge clients for each hour their lawyers work.

The billable hours system means that workers are incentivised to work longer, rather than smarter.

Certainly, the statistics around mental health in the legal profession are alarming.

Around 50 per cent of law students, 33 per cent of solicitors and 20 per cent of barristers report they have experienced depression. Further, 11 per cent of lawyers contemplate suicide each month, according to research published on the website of legal mental health charity, Minds Count (formerly the Tristan Jepson Memorial Foundation).

A punishing rite of passage

Investigating the causes of this crisis and exploring possible solutions usually leads back to an industry culture of being always-available to clients, unreasonable demands for fast turnarounds and the “billable hour”. There is also a long-held belief in the professions that young people will work punishing hours as a “rite of passage” that will pay off in the long run.

In the legal industry, Royal Commissions tend to amp up the pressure, with work going on in 24-hour cycles in 15-hour shifts, seven days per week, in an environment that is intolerant of mistakes or human frailties.

As it is, lawyers work longer overtime than professionals in any other field in Australia, according to a position paper by The Legal Forecast, a not-for-profit group that provides support for students and early-career lawyers.

Under discussion at a recent event, hosted by The Legal Forecast, was the exacting timetabling of the Hayne Royal Commission and the impact it had on lawyers, particularly junior staff.

DLA Piper Australia co-managing partner and Minds Count board member, Melinda Upton, asked: “Was it worth the sacrifice when you look at statistics on people committing suicide and entering depression? Did it have to be done that quickly?”.

This point was picked up by Scarlet Reid, a partner at McCullough Robertson Lawyers, who said she worked on the Hayne Royal Commission and is now working on this year’s Aged Care Royal Commission.

Reid said the Aged Care commission was proceeding at a “much slower pace” and questioned whether the banking Royal Commission really had to be completed in one year.

“Politics drives that as well,” she said. “We could slow down.”

She said many of the organisations involved in giving evidence to the Aged Care Royal Commission were not-for-profits that did not have the funds to pay for large legal teams – a factor that puts a brake on the pace.

Need to slow down

Partner at legal recruitment firm ECP Legal, Justin Whealing, said a senior banking corporate counsel told him he wished the law firms and their clients had teamed up to ask the commissioner for more time.

“I think the legal profession could do that better, in terms of presenting a united front to speak in one voice about how meaningful changes can be made for the betterment of the profession. Clients would get better advice as well and it would be more sustainable for the people in it,” Whealing said. He also advocated having an industry-wide standard, setting out conditions such as maximum work hours and mandatory breaks and using targets.

Reid acknowledged the bind that law firms find themselves in: “It’s very difficult when you’ve got clients needing to meet deadlines, getting into witness boxes. And, you know, it’s a balance”.

Some firms are using contract lawyers to help manage workload over peak times, says the head of Innovation and Project Delivery at Pinsent Masons, Alison Laird. Even without being involved in a Royal Commission, there are huge deadlines that must be met. “So we ramp up the team, and then we ramp them down again,” she says.

Getting rid of ‘billable hours’

Laird said things will not improve until law firms change the way they remunerate their people and get rid of the “billable hour” system, which drives lawyers to bill a certain number of hours per year to the detriment of their mental wellbeing. “It is the one thing that impacts innovation more than anything else,” she says.

At least one top tier firm, Corrs Chambers Westgarth, is dumping the billable hour concept (while adding an extra week of annual leave) and replacing them with annual billing targets, which allow for peaks and troughs of client-billed activity.

However, Melinda Upton warned that replacing the billable hours system cannot happen without the support of clients, who are likely to push back on any change. Member of The Legal Forecast NSW, Edwin Montoya Zorrilla, supports a move away from billable hours and offers more remedies: the automation of various legal tasks and integrating long-term thinking into practice management and recruitment.

“This discussion also includes more specific strategies such as optimising systems of delegation and work sharing, better communication with clients, and using technology-assisted project management tools,” he writes in an article for Westlaw.
“Yet, none of these strategies, however innovative, take effect overnight, and there remains a tendency to return to traditional means of meeting the bottom line.”

Encourage safe work

Upton said it is a responsibility of law firm partners and management to educate the partners about staff wellbeing and “to call it out when they don’t come to the table on it”.

They can also highlight examples where enforcing or encouraging safe work practices has worked well.

“Usually it means your attrition rates have improved, you’ve got a much happier team, you’ve got succession and talent mapping and progression going on, you get good client feedback. And clients really don’t care where you work.”

Reid says working shorter hours may mean that law partners have to accept they will make less money.

When partners discuss remuneration structures at a firm-wide level, they need to be talking about encouraging the sharing of work between teams, the use of contract lawyers and other ways to create a sustainable work environment.

“There is an element of almost a corporate greed associated with the driving of long hours … unless you’re going to change the remuneration structure, then it’s going to be hard to drive behaviour,” she says.

This article was originally written for The Ethics Alliance. The Alliance is a community of organisations sharing insights and learning together, to find a better way of doing business.

This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.


universal-basic-income

Why the future is workless

Predictions for the future of work are grim – depending on your point of view. Many of our jobs are being automated out of existence, but it looks like we’ll have much more free time.

Writer and Doctor of Philosophy, Tim Dunlop, says people and governments are going to have to rethink how we support ourselves when there isn’t enough paid work to go around.

Dunlop does not ascribe to the view often put forward by economists that technology will generate enough jobs to replace the ones that are destroyed by robotics and artificial intelligence.

“I don’t know if that’s necessarily true in the medium term… I think there’s going to be a really nasty transition for more than a generation,” says Dunlop, the author of Why the Future is Workless and The Future of Everything.

“We are going through this huge period of transition at the moment and we don’t really know where it’s heading. We’re at the bottom of the curve, in terms of what [new technologies] are going to be capable of.”

Dunlop says framing question around the future of work as “will a robot take my job?”, is reductive. Instead, we should be looking at what sort of job will be available and what the conditions will be for the jobs that are offered.

“If we are working less hours, or there is less work, or the economy just needs fewer people, and then we don’t have a technology problem, we’ve got a distribution problem,” he says.

The “hollowing out” of the job market means that middle-skilled jobs are disappearing because they can be automated. Trying to “upskill” people who have been displaced, or redirect them into jobs that need a human touch (such as caring jobs) is not an answer for everyone.

“Not everybody can have a high-skill, high-paid sort of job. You need those middle-level jobs as well. And if you don’t have those, then society’s got a problem.” he says.

Dunlop says one way of addressing the issue is a universal basic income: where everybody gets a standard payment to cover their basic needs.

“I don’t think you can rely on wages to distribute wealth in an equitable way, in the way that might have been in the recent past,” he says.

The idea of a Universal Basic Income has been around since the 16th Century and is unconditional – not based on household income.

In Australia, the single-person pension (now just over $24,000 per annum) might be seen as an appropriate level of payment, according to Dunlop, in an article written for the Inside Story  website.

“It is basic also in the sense that it provides an income floor below which no one can fall. The payment is unconditional in that no one has to fulfil any obligations in order to receive it, and even if you earn other income you’re still eligible. That makes it universal, equally available to the poorest member of society as it is to the start-up billionaire,” he writes.

Much of the discomfort often voiced about such a scheme centres around the idea that people are being paid to “do nothing” and that it removes the incentive to work.

However, trials show that in developing countries, people use the money to improve their situation, starting businesses, sending children to school and avoiding prostitution. In Europe and Canada, people receiving the payment tend to stay in their jobs and entrepreneurship increases.

Trials of the Universal Basic Income are now taking place globally – from Switzerland to Canada to Kenya – but most are limited to the unemployed or financially needy, rather than being universal.

Dunlop says that, rather than worrying about whether people “deserve” the payment, we should accept the concept of “shared citizenship”. Whether we do paid work, or not, we are all contributing to the overall wealth of society.

Inequality comes when wealth gets divided up by those who do work that is paid and those who own the means of production. With a Universal Basic Income, everybody’s contribution is valued and people get a benefit from the roles they play in the formal and informal economy, he says.

So what will we be doing in the future if we are not doing paid work? Dunlop says we will still have our hobbies, passions and families – and we can derive just as much (if not more) meaning from those things as we do from our jobs.

We are already seeing evidence of efforts to reduce the hours of work, with companies trying four-day work weeks (paid for five), the Swedish Government trialling a six-hour workday, a French law banning work emails after hours.

Dunlop says a “work ethic” culture makes it hard for these reforms to succeed and unions tend to see a push for reduced hours as a “trojan horse” threat of increasing casualisation and insecure work.

“That’s where things like the French rule about emails probably comes in handy. It sets some parameters around what society sees as acceptable and maybe it needs some government leadership in this area.”

This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.


Can you incentivise ethical behaviour?

Can you incentivise ethical behaviour?

Can you incentivise ethical behaviour?

In the wake of the Financial Services Royal Commission, many employers are asking whether they should award bonuses to people who choose to do the right thing.

Boards and CEOs are discussing whether people need an incentive to make ethical decisions and how “ethical incentives” could avoid the risk of encouraging unintended behaviours.

Incentives have a tarnished reputation, with poorly-constructed programs blamed for driving a culture of greed in banks and insurance companies. The international anti-corruption organisation, Transparency International, says performance incentives should not just focus on getting sales, for instance, but also consider how those sales are achieved.

“ … incentive schemes should move beyond mere alignment with values and ethical codes and actively encourage ethical behaviour,” according to the authors of Transparency International’s 2015 report Incentivising Ethics: Managing incentives to encourage good and deter bad behaviour.

“This means that they should not be based solely on financial targets, but should contain non-financial targets that reflect and drive ethical behaviour. Ultimately, this mix of incentives should support the long-term sustainability and success of the company.”

Senior principal advisory at research company Gartner, Arj Bagga, says the Royal Commission has sparked many conversations with his clients, who want to know if they can use ethical behaviour as a measure in the “performance systems” they use to encourage the best work from their people.

A limit on rewards?

Bagga says they can – but within limits. Financial rewards or goods (such as restaurant vouchers) are only effective up to the value of $300, he says.

“Anything over $300 has an incrementally lower benefit on employee performance.”

The reason for this is that financial rewards are an “extrinsic” motivator, meaning that it comes from outside the person, and are much less effective than an “intrinsic” motivator (an inner desire).

“After $300, it starts to extrinsically motivate them too much, whereby they just associate ethical behaviour with financial reward, which is not what you want,” says Bagga.

“You actually want them to be intrinsically-motivated, because, if you remove the reward down the line, because of cost cutting or whatever it might be, employees will then stop acting ethically, just because they’re not being rewarded.

“What we want to do is have a balance between the intrinsic and extrinsic motivation.”

Recognition vs cold hard cash

The most intrinsic powerful motivator is recognition – commending people for their ethical behaviour. Such public recognition can increase employee performance by up to 3 per cent, he says.

However, the effect of that recognition can be supercharged by attaching a financial reward “which we found can increase performance by a further 5 per cent”.

While research has shown that the effectiveness of financial rewards can quickly fade, Bagga says the impact of the small reward can be sustained by using ethical behaviour as a measure in performance reviews.

Because their promotions depend on it, people will continue to try to display the desired behaviours, he says.

Making the right choice

A further question is how to identify ethical behaviour, when it is essentially just doing what would be expected of a decent person. Bagga says managers can reward those instances where people make ethical choices in situations where there is no clear answer.

This could be when, for instance, a salesperson sells a product that earns a lower commission, or no commission, but is a better choice for the customer.

Transparency International, while supporting the use of incentives, points out some of the risks around trying to identify and reward ethical behaviour: the measures are subjective, corrupt employees may be convincing actors, not all ethical acts will be recognised which could cause resentment, and discussion about behaviours may lead to some difficult performance review discussions.

Bagga says ethical behaviour is a good business strategy. If organisations can ensure their people recognise what ethical behaviour is, adopt an ethical mindset and then act upon it, they can increase employee performance by up to 12 percent, he says.

Short term pain, long term gain

Some employers may not be sympathetic to the idea their people forego revenue as they look for the best option for customers. However, Bagga says that view would be myopic.

“It may impact you in the very short term but, longer term, it will actually increase your brand awareness in the marketplace and it will increase your ability to attract talent,” he says.

“In Australia, specifically, ethical behaviour is one of the core reasons a person chooses to join an organisation.”

Australian survey respondents rank “ethics” and “respect for the organisation” higher than manager quality and future career opportunity when they are assessing career paths.

Bagga says that it is not just the financial services companies that are interested in the idea of “incentivising” ethical behaviour.

“I’ve also had conversations with mining companies and telecommunications companies, who are trying to get on the front foot of this and make sure they are bullet proofing themselves against any unethical behaviour that could occur in their organisations because they understand, through the Royal Commission, what the implications of those could be on the performance of their business and the perception of their brand.”

Cashless recognition

  • Introducing ethics and values measures into performance reviews
  • Good ethical conduct being a prerequisite for promotion.
  • Spot awards for good ethical practice, recognising special contributions as they occur, usually over a relatively short-term period.
  • Awards for people who speak up or challenge questionable conduct.
  • Recognition and/or prizes for people who excel in ethics and compliance training.
  • Recognition for outstanding contribution to the ethics and compliance programme.
  • A company-wide ethics award scheme.
  • Coverage of examples of good ethical or anti-corruption practice in the company newsletter.
  • Thank you letters from the CEO or senior managers for people who display ethical behaviour.
  • Dinner with the CEO as a prize for people who demonstrate ethical behaviour. 

Source: Transparency International

This article was originally written for The Ethics Alliance. The Alliance is a community of organisations sharing insights and learning together, to find a better way of doing business.

This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.


How the Canva crew learned to love feedback

How the Canva crew learned to love feedback

How the Canva crew learned to love feedback

“How am I doing?” is a question that has helped graphic design platform, Canva, to become one of Australia’s most talked-about startups.

In May, the six-year-old company announced it had raised $70 million from US venture capital firm General Catalyst (valuing Canva at $3.6 billion) and acquired two stock photography firms.

Its workplace culture has also received acclaim – with top employer awards from Great Place To Work and LinkedIn last year – and its workforce has at least doubled every year.

In answer to the question above, it seems like Canva is doing very well, thank you.

The practise of asking for feedback is a core part of Canva’s culture and performance strategies. We need to know how we are going so we can improve, however most of us hate the assessment.

New York University research at a major consultancy looked at our aversion to criticism and discovered that people are equally anxious, whether they are giving the feedback or receiving it.

One of the co-authors of the study, psychologist and NeuroLeadership Institute senior scientist, Tessa West, says the best way to develop a “feedback culture” is to train people to ask for it – rather than wait for it to be delivered.

By requesting the assessment of their performance, individuals feel a sense of control and certainty and can steer the discussion where they want. The people giving the feedback will also feel more relaxed, because they no longer have to guess what is wanted from them.

The head of people at Canva, Zach Kitschke
The head of people at Canva, Zach Kitschke

The head of people at Canva, Zach Kitschke, says new hires are introduced to the feedback culture through an “onboarding boot camp”, featuring sessions from the three founders of the company – Melanie Perkins, Cliff Obrecht and Cameron Adams.

“Having a feedback conversation can be challenging and quite tricky, but we have a workshop that everyone goes through to learn how to do feedback and act in a constructive, supportive way,” Kitschke says.

“We have the philosophy that if everyone is constantly asking what they did well, or how they went in the meeting or what could they do better or how could they grow, then people are more open and more ready to hear feedback and people are more likely to give it as well.”

Kitschke has been with Canva for six years, from when it was a small startup with seven people to its present workforce of 600 in three offices in Sydney, Manila and Beijing.

Executive coach, Sarah Nanclares, joined the company as an internal coach last year and writes in a Canva blog: “… asking for feedback is a bit like exercising a muscle: the more you use it, the easier it becomes, and before you know it seeking regular feedback is no longer a scary task. In fact, it becomes welcomed.”

Points of difference

1.Skin in the game: Every employee is given equity options and becomes an owner of the business. Employees get a bonus of $5,000 if they successfully introduce a new hire to the business.

2. The Fix-It form: This form can be used to notify the founders and other senior executives of any problems.

3. Right fit: Recruits are screened for the values: Be a force for good, be a good human, set crazy big goals and make them happen, empower others, pursue excellence, and make complex things simple.

4. Someone to watch over me: Every new person gets paired with a mentor from the same area or discipline. Anyone can receive training to be a mentor.

5. Businesses within the business: Within Canva are 15 groups that function as their own startups, running independently, with the ability to move quickly.

6. Breaking bread: The teams stop for lunch every day and sit together at long tables so that no-one has to eat alone. A chef prepares shared serving plates and anything not eaten at lunch is refrigerated for people to take home for dinner. Ingredients come from a Canva-owned farm and the bar is open all day.

7. Open door: Employees are welcome to bring their dogs and children to work.

This article was originally written for The Ethics Alliance. The Alliance is a community of organisations sharing insights and learning together, to find a better way of doing business.

This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.


power-of-praise

The transformative power of praise

power-of-praise

What is it about the legal industry that makes it so depressing? Well, it is not the work – but it could be exhaustion mixed with a lack of control about how much work they can handle and a shortage of appreciation from their bosses.

Psychologist and a scientist in behavioural neurogenetics, Bob Murray, says human beings are designed to work as little as 10 hours per week.

“If we work for more than 10 hours a week, it becomes stress,” he told a recent seminar in Sydney.

While that may seem an extreme position at first glance, it is important to understand what Professor Murray means by “work”.

“Work” is the stuff we do that is a grind. It is, perhaps, the administrative work that takes us away from the tasks that are meaningful or enjoyable.

“Work means not necessarily enjoying yourself, not necessarily relating. Human beings are relationship-forming animals. We are driven to surround ourselves with a network of supportive relationships and we can work hard and long… providing that we do it in the company of other people that we actually like, and that we enjoy the process of doing things with them.

“It’s not a question of how many hours you work. It’s whether you enjoy the process of doing that work. And whether you enjoy the people that you do it with”.

Murray said people come to work to be part of a tribe and to learn.

“So people in law firms are willing to stay there for long hours, providing they’re enjoying the process of learning what they’re doing,” he said.

Murray says 30 percent of all lawyers think about suicide once a year and 40 percent are clinically depressed.

A national survey of almost 1000 lawyers finds that excessive job demands, minimal control over workload and spillover of work commitments into personal life are some of the work-related factors correlated with poorer mental health outcomes.

“Concerns about the structure and culture of legal practice in Australia are also highlighted,” say the authors of the study, Lawyering Stress and Work Culture: An Australian Study, 2012-2013.

He says one relatively simple thing that employers and managers can do is to praise their people. However, only around 5 percent of people get praised once a day.

Praise is powerful because of its effect on the “feel good” chemicals we produce, like dopamine, which helps our brains work faster, smarter, and more creatively.

However, poorly given praise tends to antagonise people. Murray says there are three elements to effective praise:

What: The giver has to be specific about what they are praising. A generic “well-done team” can have the opposite effect.

How: This is the effort or the way someone has gone about something. It is the kind of praise you may give a child who comes last in a race, but stuck it out to the end, gave it their best effort and didn’t let the team down. It is not necessarily tied to success, but encourages and rewards the right behaviours.

Who: This is praise for the relationship. “ I really enjoy working with you. It’s great to have you as part of you of my team.” Murray says this kind of praise is less used in law firms than other kinds – but is the most powerful.

This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.


Stressed at work

The dangers of being overworked and stressed out

Stressed at work

If anyone has a visceral understanding of how high-pressure work environments make mincemeat from young graduates, it is Georgie Dent. Her first job as a young lawyer ended in a nervous breakdown and two weeks in a psychiatric hospital.

Now a well-known journalist and advocate for women, Dent is also supporting her husband (a surgeon-in-training) through the brutal demands of his work, is raising three young daughters and has just published a book (Breaking Badly) about how things fell apart during her 18-months of working in a top law firm, 12 years ago.

“I think that there is the same sort of cultural expectation in law and medicine, that you will suck up absolutely everything and you will work around the clock,” she says.

When Dent looks back at her time as a lawyer, she acknowledges that an unworkable workplace was just one element in her breakdown. She also had to deal with her anxious personality and the ravages of Crohn’s Disease – a life-long gastrointestinal disorder.

“I think, for me, it probably wasn’t avoidable. I actually think, no matter what job I had taken, I was headed for some sort of breakdown. Being in a particularly stressful job with really long hours certainly didn’t help me physically… and then mentally,” she says.

Dent’s first six-month rotation in the law firm was with a Partner who was regarded as a genius and “rainmaker”, but was actually a shouting bully. As she details in her book:

“Almost anyone who has done any work inside a large law firm will have a tale or two about a tyrannical partner. These men and women are feared and revered in equal measure: they are not afraid of throwing phones and think nothing of publicly dressing down members of their team, they expect an immediate response to every email regardless of the time it’s dispatched, and generally have everyone in their vicinity living on a knife’s edge.

“The man I worked for had had nine members of staff leave in the six months before I joined – and it was a team of six. He went hot and cold, and was aggressive, void of self-awareness and really difficult to please.”

A lack of autonomy

Dent stayed the course and then moved onto a team that was welcoming and collegiate, but the stress had exacerbated her Crohn’s, which only added to her anxiety.

Juniors such as Dent, as she was then, had been the stars of their schools and universities, but found their achievements and intellect counted for little at work.

“As the firm’s underlings, we operated at the whims of partners, senior lawyers and clients. The higher a person climbs in a law firm the greater autonomy they secure. We were on the bottom rung, which meant no autonomy at all.

“We were so lowly, in fact, that we were rarely given a glimpse of the ‘big picture’. Instead, we were often asked to complete tasks without any context, which meant we were regularly blindsided when it came to the next step.

“Having a substantive task doled out at 5.30pm with a tight turnaround wasn’t unusual – in fact, it was practically expected. The salt in the wound was when this kind of task was handed to you at the end of a quiet day, after you had been hanging around and asking for work since morning, unsure of how you could possibly meet your billable target without anything to do.”

Dent sees this lack of control as a factor in burn-outs among lawyers and doctors.

Unsafe hours for doctors

Reconstructive plastic surgeon, Neela Janakiramanan, has written about the pressures on young doctors in a column for Women’s Agenda(of which Dent is a contributing editor).

“As an intern, I learned that it is considered acceptable to work eighty hours in a week if you have the following week off, and not be paid overtime for the week worked because the average across the fortnight is only forty,” writes Janakiramana.

Janakiramana’s longest fortnight was 204 hours in twelve consecutive days, “with the majority of it on call, in the midst of a job where the average was 180 hours a fortnight. I was in my third trimester of pregnancy”.

It is worth noting that the suicide rate for doctors is twice that of the general population and a 2016 audit found 53 per cent of public hospital doctors are working unsafe hours. Mental health starts to decline after someone has worked more than 39 hours per week, according to research.

After leaving the law firm to recuperate, Dent found herself in another occupation often regarded as high-pressure – journalism – for BRW magazine. Even though she was again starting at the bottom, Dent found the experience enlightening.

“It was just so different to me, culturally,” she says.

“In editorial meetings, people were allowed to speak. In a law firm… you don’t speak unless you’re spoken to. As a junior, you’re not even allowed to send an email.

“[In law firms] You’re on the leash so much and, culturally, that creates a different dynamic. I found it very refreshing to walk into other workplaces where you can still sit around the table and pitch ideas and contribute to conversations without thinking through every single word that you say.”

Longer (hours) does not equate to ‘better’

When it comes to working hours, many studies show that longer work weeks do not improve productivity. They may even make people less productive.

Dent points to the experience of Perpetual Guardian in New Zealand, which offered its 250 staff a four-day work week, while retaining their full-time wages. A study of the impact of the initiative reported lower stress levels, higher levels of job satisfaction and an improved sense of work-life balance.

Company founder, Andrew Barnes, told The Guardian: “For us, this is about our company getting improved productivity from greater workplace efficiencies… there’s no downside for us”.

Dent supports the idea that law firms “gear themselves” around efficiency, rather than time worked.

“I think then across every industry, every field, I think we need to get a recognition that we work incredibly long hours and we have to look at how that is impacting our lives as well as that work,” she says.

“It’s easy to fall into that trap of thinking that, in this line of work [law], we have to be available all the time and that’s the only way we can deliver value to clients. I just don’t necessarily think that’s true. And I think that it’s worth being a little bit bold.”

This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.


Crunch Time for Financial Advisers – Stay or Go?

How can Financial Advisers rebuild trust?

Crunch Time for Financial Advisers – Stay or Go?

It would be no exaggeration to say the Australian financial advice industry is going through a difficult time.

Following years of scandals, and shocking evidence brought to light by the Hayne royal commission, urgent steps are now being taken to “professionalise” the banking and finance sector.

Amongst the headlines: embattled financial services giant AMP is setting aside an eye watering $290 million to compensate customers who received poor financial advice, and a further $35 million annually to improve compliance structures.

All of the major banks have announced their plans to “amputate” financial advice and wealth management from their portfolio of vertically integrated activities.

Many advisers have already lost their jobs. And many more have already announced their intention to leave the industry rather than face greater scrutiny and a new compliance burden.

For those operators planning to stay in business, there’s a new sheriff in town. The Financial Adviser Standards and Ethics Authority (FASEA) was established by the Federal Government in 2017 to set the education, training and ethical standards of licensed financial advisers in Australia.

FASEA requirements for mandatory education and Continuous Professional Development (CPD) are unlike anything the industry has ever seen.

The push to professionalise the sector is moving with speed. Starting this year, advisers will be required to undertake formal education, in the form of either a full degree or bridging course, plus nine hours of continuing professional development (CDP) annually. Advisers will be required to pass an exam to earn their license and continue to operate. 

What’s the problem?

While the standards mentioned above might sound perfectly reasonable to someone already working within a well established profession such as accountancy or the law, this is unfamiliar territory for many financial advisers.

Many advisers who have been working for years or even decades will be daunted by the demand for serious study and a formal academic qualification. Some advisers have already expressed concern at the financial burden of course fees and lost income. Many others will be daunted by the sheer number of hours required each year to meet FASEA’s standards.

It’s little wonder the industry is going through a crisis of confidence. And while the emphasis has rightly been placed on the rights of the customer, and the many people who have received poor advice, it’s also worth pausing to think about the impact this has on individual advisers – some of whom have been operating honestly and ethically for many years. For such people, and there are many, the avalanche of bad press and community outcry has been difficult to bear.

We know many people become financial advisers because they are passionate about the financial wellbeing of their family, friends and community. They aspire to help people secure economic stability and security whilst avoiding the abundant pitfalls and bad products.

Of Gallup’s Five Essential Elements of Well-being, financial security is at the centre. Practiced ethically and professionally, the work of a financial adviser supports and protects other critical areas of a person’s life. 

This leads to some interesting questions about the overarching purpose of a financial adviser.

Why does this role exist? What purpose does it serve individuals, communities and society at large? What is the overarching public good that can be achieved from a profession that supports, protects and grows a person’s financial wealth?  

Or to look at it another way, what would the world look like without financial advice? If all of the competent advisers were to leave the industry, where does that leave the community?

Advisers who are on the fence about their future should take time to work out what the role of financial advice means to them. Whilst the reputation of the industry may be at its lowest point, it’s a great time to get back to basics and think about the purpose and impact of this type of work.

What is the solution?

The Ethics Centre has had quite a bit of involvement in this story as it’s unfolded.  When the scandal first began to erupt three years ago, we worked with some of the largest advice firms to develop in-house training programs for financial advisers.

We’ve helped inform FASEA’s thinking on ethical standards for the industry. We’re currently working on building a course on ethics and professionalism to be delivered by universities.

We also offer free counselling to individuals via our Ethi-call service – and that includes financial advisers struggling at a career crossroads.

 

For those advisers currently at this point, we’d advise some clear headed thinking about career purpose and priorities. If you think you’d benefit from talking through your dilemma with an impartial counsellor, you are welcome to call Ethi-call.

The service is a free, appointment-based telephone counselling service offered by The Ethics Centre to help people navigate some of life’s toughest decisions.


Can robots solve our aged care crisis?

Can robots solve our aged care crisis?

Would you trust a robot to look after the people who brought you into this world?

While most of us would want our parents and grandparents to have the attention of a kindly human when they need assistance, we may have to make do with technology.

The reason is: there are just not enough flesh-and-blood carers around. We have more seniors entering aged care than ever before, living longer and with complex needs, and we cannot adequately staff our aged care facilities.

The percentage of the Australian population aged over 85 is expected to double by 2066 and the aged care workforce would need to increase between two and three times before 2050 to provide care.

 

The looming dilemma

With aged care workers among the worst-paid in our society, there is no hope of filling that kind of demand. The Royal Commission into aged care quality and safety is now underway and we are facing a year of revelations about the impacts of understaffing, underfunding and inadequate training.

Some of the complaints already aired in the commission include unacceptably high rates of malnutrition among residents, lack of individualised care and cost-cutting that results in rationing necessities such as incontinence pads.

While the development of “assistance robots” promises to help improve services and the quality of life for those in aged care facilities, there are concerns that technology should not be used as a substitute for human contact.

Connection and interactivity

Human interaction is a critical source of intangible value for the development of human beings, according to Dr Costantino Grasso, Assistant Professor in Law at Coventry University and Global Module Leader for Corporate Governance and Ethics at the University of London.

“Such form of interaction is enjoyed by patients on every occasion in which a nurse interacts with them. The very presence of a human entails the patient value recognising him or her as a unique individual rather than an impersonal entity.

“This cannot be replaced by a robot because of its ‘mechanical’, ‘pre-programmed’ and thus ‘neutral’ way to interact with patients,” Grasso writes in The Corporate Social Responsibility And Business Ethics Blog.

The loss of privacy and autonomy?

An overview of research into this area by Canada’s McMaster University shows older adults worry the use of socially assistive robots may lead to a dehumanised society and a decrease in human contact.

“Also, despite their preference for a robot capable of interacting as a real person, they perceived the relationship with a humanoid robot as counterfeit, a deception,” according to the university.

Older adults also perceived the surveillance function of socially assistive robots as a threat to their autonomy and privacy.

A potential solution to the crisis

The ElliQ, a “home robot” now on the market, is a device that looks like a lamp (with a head that nods and moves) that is voice activated and can be the interface between the owner and their computer or mobile phone.

It can be used to remind people to take their medication or go for a walk, it can read out emails and texts, make phone calls and video calls and its video surveillance camera can trigger calls for assistance if the resident falls or has a medical problem.

The manufacturer, Intuition Robotics, says issues of privacy are sorted out “well in advance”, so that the resident decides whether family or anyone else should be notified about medical matters, such as erratic behaviour.

Despite having a “personality” of a helpful friend (who willingly shoulders the blame for any misunderstandings, such as unclear instructions from the user), it is not humanoid in appearance.

While ElliQ does not pretend to be anything but “technology”, other assistance robots are humanoid in appearance or may take the form of a cuddly animal. There are particular concerns about the use of assistance robots for people who are cognitively impaired, affected by dementia, for instance.

While it is a guiding principle in the artificial intelligence community that the robots should not be deceptive, some have argued that it should not matter if someone with dementia believes their cuddly assistance robot is alive, if it brings them comfort.

Ten tech developments in Aged Care

1. Robotic transport trolleys:
The Lamson RoboCart delivers meals, medication, laundry, waste and supplies.

2. Humanoid companions:
AvatarMind’s iPal is a constant companion that supplements personal care services and provides security with alerts for many medical emergencies such as falling down. Zora,  a robot the size of a big doll, is overseen by a nurse with a laptop. Researchers in Australia found that it improved the mood of some patients, and got them more involved in activities, but required significant technical support.

3. Emotional support:
Paro is an interactive robotic baby seal that responds to touch, noise, light and temperature by moving its head and legs or making sounds. The robot has helped to improve the mood of its users, as well as offers some relief from the strains of anxiety and depression. It is used in Australia by RSL LifeCare.

4. Memory recovery:
Dthera Sciences has built a therapy that uses music and images to help patients recover memories. It analyses facial expressions to monitor the emotional impact on patients.

5. Korongee village:
This is a $25 million Tasmania facility for people with dementia, comprising 15 homes set within a small town context, with streets, a supermarket, cinema, café, beauty salon and gardens. Inspired by the dementia village of De Hogeweyk in the Netherlands, where residents have been found to live longer, eat better, and take fewer medications.

6. Pub for people with dementia:
Derwen Ward, part of Cefn Coed Hospital in Wales, opened the Derwen Arms last year to provide residents with a safe, but familiar, environment. The pub serves (non-alcoholic) beer, and has a pool table, and a dart board.

7. Pain detection:
PainChek is a facial recognition software that can detect pain in the elderly and people living with dementia. The tool has provided a significant improvement in data handling and simplification of reporting.

8. Providing sight:
IrisVision involves a Samsung smartphone and a virtual reality (VR) headset to help people with vision impairment see more clearly.

9. Holographic doctors:
Community health provider Silver Chain has been working on technology that uses “holographic doctors” to visit patients in their homes, creating a virtual clinic where healthcare professionals can have access to data and doctors.

10. Robotic suit:
A battery-powered soft exoskeleton helps people walk to restore mobility and independence.


What makes a business honest and trustworthy?

“I am a trusted advisor.” That is how the man described himself when he approached me at the end of a conference.

We had gathered to discuss the implications of the Royal Commission into banking and finance and how that industry could emerge with a stronger ethical backbone.

“What is the best way to get that ethical message across?” asked the man in front of me.

Well, part of the problem was right there on his business card. You can’t self-nominate trust. You have to earn it. You can’t appropriate it yourself with a wishful job title or marketing slogan. You have to do the work and leave it to others to decide if you can be trusted. Or not.

A greater focus on trust itself

Trust has been seen as a top business priority and growing in importance over the past few years, especially after the Global Financial Crisis of 2007 where people’s life savings were misused by the people in institutions that had promised to take care of them. The rise of the populist Occupy movement four years later was a warning shot to those in power that resonated globally.

However, much of the conversation since then about the poor reputation of business has failed to come to terms with the enormity of the task ahead. Trust is often spoken about as the currency that allows companies the privilege of taking care of another person’s wealth.

Not so much is said about the process of getting there – or even whether trust is the outcome companies should be focused on.

After all, having people’s trust does not necessarily mean that you are trustworthy.

Dealing in deception

Why should “trust” not be an end in itself? Well, US stockbroker and financial advisor Bernie Madoff was widely trusted by his wealthy investors before they realised they had been collectively fleeced of $US64.8 billion in the largest Ponzi scheme in history.

Closer to home in Australia, conman Hamish McLaren took $7.66 million from 15 separate victims – many of whom were referred to him by friends and family. McLaren was so trusted that one woman handed over her divorce settlement without even asking his last name.

McLaren is the subject of The Australian newspaper’s most recent podcast series “Who the Hell is Hamish?”.

Trust, by itself, is not always what it is cracked up to be.

Restoring confidence and trust

So the question is not “How can we get people to trust us again?”, but should be instead “What can we do to become trustworthy?”. Organisations need to focus on the process of getting there, rather than the result. It will take time, there needs to be consistency in behaviour and there’s an element of forgiveness that needs to be addressed.

Forgiveness means that the forgiver needs to believe that you won’t behave that way again. Declaring your best intentions doesn’t work, it needs to be seen.

Being trustworthy means that people in your organisation behave ethically because it’s the right thing to do, not because it will make people trust them again. A reputation for trustworthiness is, again, not something you can just anoint yourself with.

A solid reputation is bestowed upon you and comes through an accumulation of other people’s personal experiences of you and your work.

Legendary investor Warren Buffett, the chairman of Berkshire Hathaway, has provided the business world with a wealth of pithy and insightful quotes through his annual letters to shareholders.

One is said to be: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently”.

 

This article was originally written for The Ethics Alliance. An initiative of The Ethics Centre, The Ethics Alliance is a community of organisations sharing insights and learning together, to find a better way of doing business. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.


Workplace Romance

Workplace romances, dead or just hidden from view?

Workplace Romance

Falling in love at work seems kind of quaint in the age of Tinder. But it still happens, despite the convenience of “swiping right” on strangers via dating sites.

The practice of getting to know someone before asking them out to dinner may intrigue some of your younger colleagues, but it still had its attractions for the 11 per cent of heterosexual couples who met through work in 2017.

So dating apps have not yet killed the office romance, but they have put the squeeze on it. At the “birth” of the internet, in 1995, 19 per cent of heterosexual couples said they met as, or through, colleagues, according to research by Stanford University in the US.

If fewer people are “coupling up” at work, the reasons should be pretty obvious. Negotiating a romance at work has always been somewhat tricky but has become even more so as employers tighten their human resources policies around how such relationships should be conducted.

 

Just like the “bonking ban” in Federal Parliament, which now rules out affairs between Ministers and their staff, many companies now have policies about when relationships must be declared and that prevent couples from being in charge of each other at work.

Employers are also mindful of the lessons learned from the #Metoo anti-sexual harassment movement, which has raised awareness that people can be deeply hurt by repeated and unwanted sexualised attention – especially from their bosses.

Trouble starts when ‘no’ is ignored

There will always be people who resist social change. However, the CEO of Relationships Australia, Elisabeth Shaw, quickly dismisses protestations by those who say morality-policing has gone too far in interfering in employees’ personal lives.

“The reality is: the sort of examples that make it into the public domain are those who haven’t taken no for an answer. They have kept up a level of sexual banter or flirtation that isn’t wanted,” she says.

Shaw says relationships become troublesome when the couple have an unequal power relationship. In practice, this usually means a male boss and a female who reports to him. Someone is often required to give up their job.

“The repercussions are that it is the woman who suffers. It is usually the woman who has the less valuable job and can be the one who people think should leave,” she says.

“The person in the subordinate job is the most vulnerable.”

‘None of us are islands’

If the relationship is an affair, that adds another layer of difficulty. The necessary secrecy leads to suspicion about how and why people are favoured by the boss.People in the midst of an affair tend to get lost in their own experience and forget that “none of us are islands”, she says. “What they do does affect the group.”

This is especially the case when the spouses of the couple are known to the group and onlookers start to feel morally compromised, as if they are colluding in the affair.

How colleagues view office romances can also depend on whether the people involved are well-liked and respected. Another factor is whether onlookers believe that they will be adversely affected – they may be shut out of work-related conversations between the pair and, if one of the couple is a boss, there may be favouritism towards their lover.

“There could be pillow talk, they could feel their own career is disadvantaged, that will also turn the heat up,” says Shaw.

When to tell

Deciding when to disclose the relationship is difficult – even when things seem straightforward. Should it be after the second date, when you agree to see each other exclusively, or after you tell your families?

“Everyone would pick a different moment where they would call it a relationship,” says Shaw. “When do they have a right to privacy as adults and when do they have a duty to others?“Some would argue if they keep it discreet and it doesn’t impact anybody, should they ever have to tell anybody?”

The CEO of human resources consultancy, mwah (Making Working Absolutely Human), Rhonda Brighton-Hall, has spent her career in large organisations and says that it is unfortunate that the relationships that most need to be reported are also the least likely to be reported.

These are the boss-subordinate romances.“I think the ones that don’t get reported are where the power difference is massive. There is something about that that creates gossip, puts people on tenterhooks, upsets the people around them,” she says.

“If you a very senior leader, your integrity and ethics of relationships are visible to people. You attract more judgement and that is probably not unfair if you are holding yourself up as a role model of good behaviour and honesty and integrity.”

“However, if they are not in a reporting line, they don’t need to notify anyone.”

In the absence of a handy app, Shaw offers a few guidelines to ensure lovers end up on the right side of the HR department (and out of the headlines).

Yes, you can find romance at work.

5 Easy steps:

  1. No means no: You can ask once, but take no for an answer
  2. Right place, right time: When indicating your non-work-related interest, make sure you are not at work. Ask them out for a coffee or a walk.
  3. Who’s on top?: Be aware of power imbalances between the two of you. The person with less power at work tends to be most adversely affected if things go sour.
  4. Create distance: Once the relationship looks like it may be ongoing, ideally one of the two would transfer to another department or employer. It is better for the relationship and better for the workplace.
  5. Tell someone: Once you consider yourself “dating” a colleague, you need to tell someone at work. That could be your manager or HR. It could even be a “critical friend” at work, who is likely to tell you if your relationship is affecting others.