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Thank you to our guest blog, Tax & Super Australia.

The Treasurer Josh Frydenberg’s first budget, released on 2 April, 2019 included a few changes to Superannuation, impacting individuals along with details that payroll managers would benefit from understanding in order to address questions from their company’s employees.

Removal of work test for certain members

The current superannuation work test will be removed for people aged 65 and 66 from 1 July 2020. This will enable an estimated 55,000 individuals to make concessional and non-concessional voluntary superannuation contributions even if they are not working. Under current rules, they can only make voluntary contributions if they meet the work test, which requires that they work a minimum of 40 hours over a 30-day period.

By removing the work test, fund members in this age bracket who are no longer working, only working a few hours per week, or only undertaking volunteer work will, should this proposal be implemented, be able to contribute to superannuation and enjoy the concessional tax treatment that it provides.

Extending eligibility for bring-forward cap

Access to the bring-forward cap will be extended from 2020-21 for taxpayers aged less than 65 years of age to those aged 65 and 66. This will enable these taxpayers to make up to three years’ worth of non-concessional contributions, capped at $100,000 a year, to superannuation in a single year.

This will give older pre-retirees greater flexibility to save for retirement. Those in this age bracket will be able to contribute large lump sums that they have on hand into superannuation more quickly; bringing forward the accompanying tax concessions, rather than $100,000 per year under the current rules that apply.

Increase to age limit for spouse contributions

The age limit for spouse superannuation contributions will be increased from 69 to 75 years, from 2020-21. This provides pre-retirees with a greater ability to contribute on behalf of their spouse.

Making spouse contributions is particularly useful where for instance:

  • the contributing spouse has already reached their own $1.6 million total superannuation balance restriction
  • where the recipient spouse is significantly older, as they can access a tax-free superannuation income stream whereas the younger spouse may not have yet met a condition of release, or
  • the contributing spouse is eligible to claim a spouse tax offset of up to $540 as their spouse is a low-income earner.
Reducing red tape for super funds

Superannuation funds that have both an accumulation and retirement interests during an income year can choose their preferred method of calculating exempt current pension income (ECPI) from 1 July 2020.

There is also a proposal to remove a redundant requirement for superannuation funds that are 100% in pension phase for all of the income year to acquire an actuarial certificate when calculating ECPI using the proportionate method.

The ability to choose between the segregated method or proportionate method to work out ECPI will simplify superannuation reporting for SMSFs. Removing the requirement to obtain an actuarial certificate should reduce SMSF costs.

Tax relief for merging super funds

The current tax relief for merging superannuation funds, which is due to expire on 1 July 2020, will be made permanent from that time. Superannuation funds will be able to continue to transfer revenue and capital losses to a new merged fund, and to defer taxation consequences on gains and losses from revenue and capital assets.

This will continue to encourage superannuation funds that are contemplating merging (including SMSFs). There should be no adverse consequences of mergers moving forward. Merging can reduce costs, manage risks and increase scale, leading to improved retirement outcomes for members.

Super insurance opt-in rule delayed

The government confirmed that it will delay the start date from 1 July 2019 to 1 October 2019 for ensuring insurance within superannuation is only offered on an opt-in basis in respect of members with accounts with balances of less than $6,000 and new accounts belonging to members under age 25.

The changes seek to prevent the erosion of super savings through inappropriate insurance premiums and duplicate cover. Affected members can still obtain insurance cover within their superannuation by electing to do so (that is, opting-in).

To find out more about the Federal Budget, visit our articles on each of these topics:

Cet article Federal Budget 2019 – the Superannuation angle est apparu en premier sur Connect@ADP an ADP Australia Blog.

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Thank you to our guest blog, Tax & Super Australia.

A new Federal Budget brings about changes for Australian businesses. The Treasurer Josh Frydenberg’s first budget, released on 2 April, 2019 is no exception. Our guest writer from Tax and Super Australia has distilled and simplified the budget details for business owners and finance professionals.

Instant asset write off increased and expanded

The instant asset write-off threshold will be increased from $25,000 to $30,000 from Budget night to 30 June 2020. The threshold applies on a per asset basis. As a result, eligible businesses can instantly write off multiple assets costing less than $30,000 that are first used, or installed ready for use.

The instant asset write off will also be expanded to apply to both “small businesses” (those with an aggregated annual turnover of less than $10 million) and medium sized businesses (an aggregated annual turnover of $10 million or more, but less than $50 million).

Continuation of pooling arrangements for other assets

Small businesses can continue to place assets which cannot be immediately deducted into the small business simplified depreciation pool and depreciate those assets at 15% in the first income year and 30% each income year thereafter.

The pool balance can also be immediately deducted if it is less than the applicable instant asset write-off threshold at the end of the income year (including existing pools). The current “lock out” laws for the simplified depreciation rules (these prevent small businesses from re-entering the simplified depreciation regime for five years if they opt out) will continue to be suspended until 30 June 2020.

Medium sized businesses do not have access to the small business pooling rules and will instead continue to depreciate assets costing $30,000 or more (which cannot be immediately deducted) in accordance with the existing depreciating asset provisions of the tax law.

Small businesses will still be able to immediately deduct purchases of eligible assets costing less than $25,000 that are first used or installed ready for use over the period from 29 January 2019 until Budget night (under the increase in the instant asset write-off threshold from $20,000 to $25,000 announced on 29 January 2019).

ABN obligations and the black economy

The government will make changes to the Australian Business Number (ABN) system to “disrupt black economy” behaviour by requiring ABN holders:

  • from 1 July 2021, with an income tax return obligation, to lodge their income tax return; and
  • from 1 July 2022, to confirm the accuracy of their details on the Australian Business Register annually.

Currently, ABN holders are able to retain their ABN regardless whether they are meeting their income tax return lodgement obligation or the obligation to update their ABN details.

According to the government, these new conditions will make ABN holders more accountable for meeting their obligations, while minimising the regulatory impact on businesses doing the right thing. Failure to comply will mean losing registration.

Luxury car tax increased refunds for primary producers and tourism operators

The government will provide relief to farmers and tourism operators by amending the luxury car tax refund arrangements. For vehicles acquired on or after 1 July 2019, eligible primary producers and tourism operators will be able to apply for a refund of any luxury car tax paid, up to a maximum of $10,000. It used to be $3,000.

The eligibility criteria and types of vehicles eligible for the current partial refund will remain unchanged under the new refund arrangements.

Delayed amendments to Division 7A

The government will defer the start date of the 2018-19 budget measure “Clarifying the operation of the Division 7A integrity rule” from 1 July 2019 to 1 July 2020.

The government issued a consultation paper in October 2018 seeking stakeholder views on the proposed implementation approach for the amendments to Div 7A.

Delaying the start date by 12 months will allow additional time to further consult with stakeholders on these issues and to refine the government’s implementation approach, including to ensure appropriate transitional arrangements so taxpayers are not unfairly prejudiced.

To find out more about the Federal Budget, visit our articles on each of these topics:

Cet article Federal Budget 2019 – changes for Australian businesses est apparu en premier sur Connect@ADP an ADP Australia Blog.

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Thank you to our guest blog, Tax & Super Australia.

The Treasurer Josh Frydenberg’s first budget, released on 2 April, 2019 was generally a little ‘light on’ in the context of Federal Budgets. However, there were some points to worth drilling into that will impact individuals.

Individual tax relief via increased LMITO

The previously proposed (and legislated) low and middle income tax offset (LMITO) will now be increased from a maximum amount of $530 to $1,080 a year for singles and the base amount will increase from $200 to $255 a year for the 2018-19, 2019-20, 2020-21 and 2021-22 income years.

As a result, the LMITO will now provide a reduction in tax of up to $255 for taxpayers with a taxable income of $37,000 or less. For taxable incomes between $37,000 and $48,000, the value of the offset will increase at a rate of 7.5 cents per dollar to the maximum offset of $1,080.

As a result, taxpayers with taxable incomes between $48,000 and $90,000 will be eligible for the maximum offset of $1,080. For taxable incomes between $90,000 to $126,000 the offset will phase out at a rate of 3 cents per dollar.

The LMITO will be received on assessment after individuals lodge their tax returns for the relevant income years.

Future changes in tax thresholds and rates

Reductions in individual thresholds and/or marginal tax rates will apply in future income years. From 1 July 2022, the top threshold of the 19% personal income tax bracket will be increased from the previously legislated $41,000 to $45,000.

From 1 July 2022, the government will increase the low income tax offset (LITO) from $645 to $700. The increased LITO will be withdrawn at a rate of 5 cents per dollar between taxable incomes of $37,500 and $45,000, instead of at 6.5 cents per dollar between taxable incomes of $37,000 and $41,000 (as previously legislated).

LITO will then be withdrawn at a rate of 1.5 cents per dollar between taxable incomes of $45,000 and $66,667. (Note that following these changes the proposed LMITO relief will be removed.)

From 1 July 2024-25, the 32.5% marginal tax rate will be reduced to 30%. Further, in 2024-25 the entire 37% tax bracket will be abolished. As a result of these proposed changes, the government states that by 2024-25 around 94% of Australian taxpayers are projected to face a marginal tax rate of 30% or less.

Rates and thresholds under the Government’s enhanced Personal Income Tax Plan

Medicare levy low-income threshold increased

The Medicare levy low-income thresholds for singles and families, as well as seniors and pensioners, has been increased from the 2018-19 income year as follows:

  • for singles, the threshold will be increased from $21,980 to $22,398
  • for families, the threshold will be increased from $37,089 to $37,794
  • for single seniors and pensioners, the threshold will be increased from $34,758 to $35,418
  • the family threshold for seniors and pensioners will be increased from $48,385 to $49,304

Note also that for each dependent child or student, the family income thresholds increase by a further $3,471, instead of the previous amount of $3,406.

To find out more about the Federal Budget, visit our articles on each of these topics:

Cet article Federal Budget 2019 – changes for individuals est apparu en premier sur Connect@ADP an ADP Australia Blog.

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Thank you to our guest blog, Tax & Super Australia.

The Treasurer Josh Frydenberg’s first budget has lots of goodies with few “baddies”. This was to be expected with the next federal election only weeks away and the Coalition Government trying to make up ground in the polls.

The Treasurer’s “wow” factor was a return to a budget surplus of $7.1 billion for the 2019-20 fiscal year.

Without increasing taxes, the Coalition Government, if re-elected, promises to deliver on a mix of benefits for a majority of taxpayers in Australia. These include:

  • Personal income tax cuts through adjusting upwards the thresholds at which the current tax rates apply (from 1 July 2022 to 30 June 2024) and then, finally, in the income year ending 30 June 2025, having only three rates of tax, with the highest marginal rate (45%) commencing at $200,000.
  • Increasing the Low and middle income tax offset to a maximum offset of $1,080 for the years ending 30 June 2019, 2020, 2021 and 2022.
  • Increasing the instant asset write-off threshold from $25,000 to $30,000 and extending this so that businesses with a turnover of between $50 million and $10 million can also access the concession. This will apply from Budget night until 30 June 2020.

Apart from the above, the budget was quite “light” on tax and superannuation changes. The government, no doubt, is trying to make itself a small target in relation to the coming election.

Federal Budget – Winners and Losers

To find out more about the Federal Budget, visit our articles on each of these topics:

Cet article Federal Budget 2019 – The Birds Eye View est apparu en premier sur Connect@ADP an ADP Australia Blog.

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ADP launches a new brand identity and tagline of “Always Designing for People.”

It’s no secret that the needs of the workforce are evolving. From the impact of the gig economy and flexible work arrangements, to critical discussions around equitable pay and work-life balance — today’s business leaders are heavily focused on the deep impact work has on people and how to help them achieve something greater.

As we approach our 70th anniversary, ADP recently looked at our own legacy of innovation and insight into the design of the employee experience and asked ourselves, “What are we working for?” The clear underlying truth is that we are always designing for people. As an organisation that impacts the daily lives of more than 40 million people globally, we seek to help them reach their full potential by offering products, services and experiences they will love to use every day.

To bring what we stand for to life, today we are launching a new brand identity and tagline of “Always Designing for People.” This platform further defines our approach to continuous innovation in order to help people work smarter, embrace new challenges and unleash their talent. With this new identity comes a refreshed brand manifesto that also launches today in a multifaceted advertising campaign called “What Are You #WorkingFor?”.

“What Are You #WorkingFor?” aims to spark new, positive dialogue around the way we work and what drives people. The campaign will appear across print, out-of-home, TV, online video and social media.

This is an exciting time to rethink a better, more personalised way to work because the things we work for are what define us. I invite you to learn more about our new global brand identity and campaign here.

Original post by ADP Spark.

Cet article What We’re #WorkingFor est apparu en premier sur Connect@ADP an ADP Australia Blog.

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Culture is the compass that informs every decision and shapes every process within the organisation, from HR technology to leadership competencies.

Over the past year, I’ve interviewed dozens of HR leaders who have been recognised for creating a great work experience for their employees. They came from organisations ranging in size from fewer than 50 employees to tens of thousands, and from industries as diverse as restaurants to construction firms to tech giants.

Corporate culture was a common discussion topic. They viewed their organisational culture as a competitive advantage and treated it as such by taking steps to ensure that the important elements were clearly defined, codified and communicated. They viewed this as critical to maintaining a positive work environment that fueled employee engagement and performance. This commitment to culture sets these organisations apart from the mainstream.

Many leaders speak about the importance of culture but don’t decipher or define their unique culture, much less put it into writing. This isn’t particularly surprising, considering it’s hard for most organisations to even find a definition for organisational culture.

While I don’t pretend to have the definition, what follows is a distillation of what I’ve learned from observing how successful organisations are approaching culture.

Culture is the shared system of beliefs, values and practices that drive your success.

Culture is essentially the operating system of any organisation. It shapes your identity, behaviour and approach. It is the compass that informs every decision and shapes every process within the organisation, from HR technology to leadership competencies.

With this observed definition in mind, the importance of creating a company culture becomes obvious. But how do you even approach defining something as seemingly abstract as culture? The best way to answer that question is by looking at some examples.

One of my favourites is from the financial advice company, The Motley Fool. From their early days, they have used a surprising tool to define culture: the employee handbook. Their current version is shared online at The Fool Rules. As you explore it, you’ll find it feels much less like a handbook and more like a living and breathing expression of what it means to work at the company.

Another wonderful example is the Hubspot Culture Code, a 128-slide deck that details the current and aspirational culture of this marketing automation company. They admit their code was based on the legendary Netflix Culture Code, another great example from which to borrow. Both decks are designed to clarify but also to inspire. Both companies use carefully chosen language to create a clear depiction of their culture that all employees can understand and support.

The skeptics will surely point to the fact that not everything about culture can be defined. They are right. The organisations I’ve worked with and studied don’t bother trying to define everything, and that’s why their approach works. It sends a message to the organisation about what really matters, and the resulting focus is what makes it so powerful.

While the examples I’ve shared come from trendy online businesses, I’ve seen equally compelling cultural definitions in a wide range of industries. If you haven’t developed a clearly defined corporate culture, you’re likely holding yourself back. This will be a game-changer for you.

Here are a few things you should know before you start.

  1. Defining culture is hard work, but it’s worth it. Doing it right will take more time than you might expect. You’ll have to get executive leadership on board with its importance, but the effort will pay off. I co-led an initiative to define culture many years ago, and we sloughed through one year, two different consulting partners and countless intense meetings before finally nailing it down. I’ll never forget the day we showed it to the CEO. Upon seeing the final product, he said, “You’ve finally captured in words what I never could. This is it.” That clarity played a big role in the following years of unprecedented organisational performance.
  2. The process must be inclusive of all employees. There’s no way to define culture that doesn’t include significant input from the employees who live in it every day. Leaders and HR professionals often claim to know what the company culture is, but the day-to-day reality is almost always quite different – hence the need to define it.
  3. There is no perfect way to define culture. You don’t need to create a 100-page slide deck or an online employee handbook. If your culture communicates in bullet points, use bullet points. The definition of your culture should be reflected in how it’s captured and communicated. When it’s done, it should not only sound right but feel right.

Embarking on the journey to define your culture can feel intimidating. But if ensuring your employees will be there to fuel your success is important to you, then your only choice is to act.

Original post by Jason LauritsenADP Spark

Cet article Getting clear about corporate culture est apparu en premier sur Connect@ADP an ADP Australia Blog.

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To encourage engagement and loyalty, make sure to celebrate employees’ accomplishments and achievements.

Where would your business be without your dedicated employees? Employee Appreciation Day is March 1, but every single one of your employees makes a big impact on your business day in and day out all year long.

With that in mind, here are five ideas for celebrating your staff every day.

1. Show appreciation

Appreciation doesn’t necessarily mean gifts, awards or kudos emails — although all of those things are nice. It can also mean showing support for an employee’s idea, project or actions that go above and beyond their normal duties. Ideas include peer-to-peer recognition, advanced training opportunities and fun planned events.

2. Do recognition right

Are you stuck when it comes to ideas for employee recognition? Sometimes, the certificate, plaque or gold star doesn’t quite cut it.

Explore unique ways to reward employees. Millennials have been shown to prefer experiences over stuff. So showing appreciation with spa days, trips or extra time off may accomplish what a trophy cannot.

3. Support well-being with work-life balance

Forbes recommends forgetting the 9-to-5 for your younger employees, and for good reason: Millennials and Gen Z demand flexible hours and better work-life balance than their parents or grandparents enjoyed. Supporting work-life balance can also help manage your employees’ stress levels, keeping them satisfied and engaged. To improve work-life balance, consider adding flexitime or compressed workweek options.

4. Encourage employee engagement

Employee engagement occurs when employees feel that their work and their ideas matter. When you seek employee input, go beyond the typical suggestion box. Ask employees for their feedback on issues pertaining to sales, marketing, benefits and more. Trust your employees’ judgment on important decisions if they have proven trustworthy in the past. Seasoned employees are often great judges of what will work and what won’t for the company, and demonstrating your trust can lead to greater engagement.

5. Measure and share customer feedback

Customer feedback is often one of the best motivators for employees. Knowing that their work is both appreciated and has made a difference to the customer can go a long way toward rewarding and motivating great service later. Share customer feedback through your employee newsletter, emails or an internal bulletin board. Personally congratulate employees who exceed customer expectations and go the extra mile. Employee appreciation includes recognising great customer service, which builds your company’s brand, sales and overall reputation.

Employees are the lifeblood of your business. Without your team, there would be no one to run the machines, handle the customers, develop the products or provide the services. To encourage engagement and loyalty, make sure to celebrate their accomplishments and achievements.

Original post by ADP Spark.

Cet article Appreciate your employees every day and you won’t be disappointed est apparu en premier sur Connect@ADP an ADP Australia Blog.

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Thank you to our guest blog, Tax & Super Australia.

It was in the year 1990 when the ATO was asked for the third time in its history about the tax deductibility of interest on a loan a business had taken out to repay a tax debt.

According to ATO records, the matter was raised as part of two previous requests for clarification — one made as far back as 1951, and the other even further back in time, in 1921.

By the 1990 query, the ATO decided to put the matter to rest and issued a taxation ruling (IT 2582), which has stood ever since. There are however curly caveats and conditions attached.

By way of background, the ATO admitted in its ruling that there were, and are, a number of “practical difficulties” associated with denying such a specific deduction for taxpayers carrying on a business. The difficulty goes right to the heart of the Income Tax Assessment Act 1997, although at the time of the ruling’s issue some of the relevant sections were still in the Income Tax Assessment Act 1936.

Subsection 51(1) of the 1936 act provides that: “All losses and outgoings to the extent to which they are incurred in gaining or producing the assessable income, or are necessarily incurred in carrying on a business for the purpose of gaining or producing such income, shall be allowable deductions except to the extent to which they are losses or outgoings of capital, or of a capital, private or domestic nature, or are incurred in relation to the gaining or production of exempt income.”

The “difficulties” the ATO refers to come about due to the fact that paying a tax debt is neither of a capital nature nor done to gain “exempt” income.

The relevant ruling (IT 2582) says: “Where a taxpayer carries on a business for the purpose of gaining or producing assessable income and, in connection with the carrying on of that business, borrows money to pay income tax (whether to preserve the assets of the business, maximise the return on them, retain sufficient money to fund the business or otherwise) then it is considered that the interest incurred on those borrowings is a normal incident of conducting that business.”

The ATO continues: “That is, such an expense is an expense incurred in carrying on that business and hence qualifies for deduction under the second limb of subsection 51(1) of the act.” The ATO adds case law (Begg v FC of T (1937) 4 ATD 257) to give weight to the decision.

Care needs to be taken however, as the ruling would not apply to interest on borrowings that are not connected with the carrying on of a business for the purpose of producing assessable income.

Note however that the ruling does not consider situations where individuals borrow to pay off a tax debt. In these cases, interest incurred by an individual on a loan to pay off a tax debt is not deductible. Before making any claims, consultation with a tax professional is highly recommended.

Do you know the difference between Travel Allowance and the Living Away From Home Allowance (LAFHA)? Take a few minutes to read our blog from TSA ‘Travel allowance or LAFHA? And how is each taxed?’.

Cet article Borrowed money to pay a business tax debt? The interest could be deductible. est apparu en premier sur Connect@ADP an ADP Australia Blog.

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It’s more critical than ever for organisations to constantly evolve to remain competitive in a global and technological environment that’s moving faster than ever. According to Deloitte, people are inspired to change when leadership meets their psychological needs for autonomy, growth and meaning. By focusing your HCM strategy on engagement, change can not only be effectively navigated, but it can also serve to enhance the overall success of your organisation.

Here are a few ways leaders can launch successful change management initiatives.

Give workers autonomy

Change often comes from the top-down, leaving employees feeling powerless. Finance executives and HR leaders should work together to include employees by asking them what they think and how they could help. Deloitte suggests using a “pulse survey” — a quick-turnaround feedback mechanism that gives the organisation real-time insight into employee sentiment. Soliciting feedback from employees can result in a more engaged workforce because it lets employees know their opinions count.

Tell employees what they will gain

Another way to keep employees engaged during a change management initiative is to help workers gain new skills and help them understand how these skills are good for both the organisation and their careers. People feel motivated to excel when they make their own decisions at work, and according to the ADP Research Institute® (ADP RI) report, The Evolution of Work: The Changing Nature of the Global Workplace, 81 percent of employees feel positively about choosing “to work on personal interests/things that impact society.”

Deloitte notes that when a change is announced, people start to wonder if their skills will become obsolete and how much time they will have to spend adapting to the change. Organisations should anticipate these natural fears and help employees understand how they will benefit from learning new skills and allow them some freedom to choose what new skills they will learn. Engaging your workforce by asking them to stretch their skills not only helps them build expertise, but is also a key factor in maintaining their engagement.

As a leader, you should communicate how the change benefits employees and gives them more autonomy. According to Deloitte, “Whenever possible, look to frame the messaging in terms of what employees will gain. Highlight the professional development opportunities or the process efficiencies that the change initiative will deliver.”

Your vision creates meaning

According to ADP RI, “Today’s workforce is more and more guided by a search for meaning or doing important work rather than by simply earning a paycheck with good benefits.” Organisations should try to align the reasons for organisational change with their employees’ desire to find meaning in their work. Deloitte notes how one finance leader found success implementing change when he focused less on the numbers and more on connecting employees to a specific leader, cause and outcome.

Successful change management starts here

There are three things finance leaders should consider when embarking on a change initiative, according to research from Deloitte.

  1. Identify employees’ belief systems by using an evidence-based approach to change — analyse employee data from an HCM system, use pulse surveys and talk directly to employees.
  2. Frame the change — how you communicate matters. Ensure that employees understand that both the organisation and the employees will derive benefits from these changes.
  3. Connect change to people — not concepts. Work with your HR leaders to highlight and praise the people who are working hard to effectively implement these new processes. By linking necessary changes to people, rather than ideas, your employees should be able to organically find meaning behind the changes and subsequently start investing in the process, as well.

With the speed at which organisations must adapt to remain competitive, it’s vital that organisations use HCM initiatives that inspire and engage their workforce to achieve lasting and successful change management.

Original post by ADP Spark.

Cet article Successful Change Management: A Human Approach est apparu en premier sur Connect@ADP an ADP Australia Blog.

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Resolving conflicts between employees can be difficult — here are some tips to help get through these situations.

If you manage people, you’re more than likely going to have to deal with a conflict between employees. While some conflicts work themselves out, others require you to step in, be the cool head in the room and get your employees to make peace.

Left alone, conflict can lead to decreased job satisfaction, which can lead in turn to increased absenteeism — on the job, but not engaged — along with reduced productivity, possible workplace violence and bullying, employee attrition and complaints, among other headaches. Here are some best practices on how to help manage and resolve conflict in the workplace.

1. Jump on the situation

Large problem or small, you need to jump on the situation. Conflict between employees affects more than just those who are arguing — it also affects co-workers who have to listen to the constant bickering and customers who have to deal with late or poor-quality products.

Acknowledge the problem and — to the extent the conflict is disrupting the workplace — remove the employees from the scene. You can say something like: “I can see there’s something going on here. Let’s move this to my office [or a neutral room].” Speak normally, but make it clear the scene must be moved immediately.

2. Get them talking

Review your employee handbook to see if your organisation has in place a conflict resolution policy that will help you navigate these situations. Some conflicts rise to the level of discrimination or harassment, so it’s crucial to have both policies in place and take appropriate action. If you don’t have a conflict resolution policy, work on creating one as soon as possible and ensure that you apply it consistently among your workforce.

Next, get the employees in question talking. The only way to do that is to meet with them. One after the other, help them calmly share their stories. Acknowledge their frustration but keep the conversation civil. Ask them to state their concerns in no-fault terms, for example, “I feel like I’m out of the loop” rather than, “You never update me.”

Determine the underlying cause of the disagreement. Conflict can occur for many reasons, and it’s important to suss the real reason out. Sometimes the cause might be a clash of working styles, for example, while other times it may lie outside the office — personal, non-work related problems can make an employee short with co-workers.

Once each person knows the other’s story, the employees may come up with their own resolution. If they don’t, you’ll need to take time to review the facts with an unbiased eye to help them find their own solution.

3. Find a solution

Your goal is to get the employees focused on their jobs instead of on each other. They don’t have to be best friends, but they do need to have a respectful working relationship. If they come up with a solution on their own, write it down, have both sign it and put it in their files. If they cannot find a common goal, or if the conflict poses further risk to the organisation, you may have to move them to different teams on a temporary or permanent basis or consider other options consistent with any applicable policy.

Don’t rule out training as a solution. If training can turn somebody around, the investment would likely be less than the cost of lost production, hiring someone new or a lawsuit for wrongful termination, discrimination or harassment.

4. Write it up

Record what happened, as well as the resolution. Ensure that the write-up is fact-based and doesn’t have an emotional tone or bias, or any assumptions or conclusions. Going forward, use these write-ups as behavioral monitors to help spot repeat offenses.

If you decide to take adverse action against an employee, documentation can help you respond to complaints if you are forced to defend or justify your decision. In those circumstances, always considering consulting with experienced employment counsel.

When it comes to conflict between employees, remember that you’re not a psychologist, a professional mediator or your employees’ mother. Always speak calmly and with an impartial tone. If for any reason you feel uncomfortable mediating meetings like these, consider hiring a professional mediator to step in.

Original post by ADP Spark.

 

Cet article Walking through conflict between employees est apparu en premier sur Connect@ADP an ADP Australia Blog.

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