Staff Engagement
' Workers have tremendous knowledge about their workplace and industry that is often left untapped. But if there are ways that workers' views can be heard, and if the benefits are clear, then we can change this situation. The Council of Trade Unions wants to see workers in unions as key participants in the task of building a high wage, high skill, high quality economy.’
Ross Wilson, President, Council Trade Unions
Employee engagement has been described as employees being intellectually and emotionally committed to the goals of their organisation and work group. When an employee is 'engaged' they are more likely to speak positively of their organisation to others, to apply their best efforts to their work, and to want to remain part of the organisation. Effective engagement is a proven way to foster better organisational results. 'Research has shown a clear link between certain behaviours and attitudes (which measure "engagement") and business results such as customer satisfaction, productivity, health and safety, and retention.'[1]
'Good employers’ must ensure that they engage staff. They cannot know fully about issues and concerns unless they have consulted with their employees. Obtaining staff participation in the process to analyse employment areas and address any concerns raised is critical to ensuring that the right areas are addressed and the most effective changes are made.
Creating a culture of engagement between employers, staff and unions:
- builds commitment to equal opportunity and change
- provides employers with the opportunity to test their own thinking
- encourages the development of ideas and worker innovation
- provides the opportunity for employees to participate in decision-making
- helps identify barriers to equal employment opportunities
- enables employees to share responsibility for action
- improves workplace morale
To engage everyone, it is critical to ensure that the organisation has a well developed system or process for consultation and information-exchange between and among the workers, unions and employer. Consulting workers is a 'powerful approach to measuring and improving people management practices and leadership behaviours that impact on organisational results'.[2]
There are statutory obligations for employers to act in good faith which includes the necessity for employer and employee (and union) to be responsive and communicative and creates an obligation on the employer to precede any changes of workplace practices with consultation.
"What is required to meet the obligation of consultation depends on the context in which consultation is required. A general statement of the ingredients of consultation was made by the Court of Appeal in Auckland City Council v NZ Public Service Association Inc [5]:
There can be no dispute that the parties to an employment relationship must deal with each other openly and fairly. They must communicate and, where appropriate, consult in the sense of imparting and receiving information and argument with an open mind when that still realistically can influence outcomes. To adopt an approach calling for mandatory consultation at specified times risks inflexibility. What is practicable in the exigencies of particular business operations and workplaces must be kept in mind.
In relation to the proposed changes in workplace practices, the Employment Court has specified [6]:
...that consultation needs more than mere notification, that the change should not be made until after consultation, that the parties being consulted should know what is proposed before they can be expected to give their views, and should have a reasonable opportunity to do so, that an effort must be made to accommodate their views, and that it involves a statement of proposal not yet finally decided upon, listening to what others have to say, considering their responses, and then deciding what will be done." [7]
It is important to consult as widely as possible, for example with:
- A cross-section of men and women of different ages and ethnicities who work in diverse roles
- established employee and union groups or committees
- managers, to elicit their commitment to EEO and to organisational change, and to establish what the business issues are so that EEO interventions are aligned with workplace change (for example, if the organisation is re-structuring this may mean that issues around recruitment are a high priority)
- Chief Executives because leadership from the top is vital if equal employment opportunities is to become part of organisational culture.
Ways to engage and consult with staff could include:
- establishing a working group consisting of employee, unions and management representatives at the beginning of the process to develop and implement the EEO programme. Where there is a partnership relationship already in place, this would be a helpful starting point, for example Partnership for Quality, Bipartite Forums
- liaising with workplace union/s. 'Good employers’ recognise and actively engage with unions in their workplace on substantive issues that affect the workforce. They are supportive of unions, work constructively with them and recognise the right of employees to be union members and to participate in union activities
- working with pay and employment equity (PAEE) review committees. See page 53 of the PAEE Review Workbook
- working with staff or team meetings, or other networking meetings for specific groups such as women, Māori, or Pasifika
- conducting surveys - questionnaires, focus groups and one-on-one interviews
- discussions in performance management reviews and exit interviews
- working with diversity or EEO councils or summits.
'A work team’s [or organisation’s] action plan should be developed by the team using the results [of the consultation] as the basis for identifying opportunities for improvement and celebrating areas of strength....To simply conduct a survey and then not take action is actually counter-productive, as employees then feel that it was not worth expressing their views and in all likelihood become less engaged.'[3]
Many organisations are already engaging employees and forming partnerships between staff, unions and management on workplace issues. Provision should be made to us utilise and develop existing mechanisms and methods to ensure the organisation integrates the development and implementation of the EEO plan of action throughout the organisation.
Models where engagement and worker participation are occurring or have occurred successfully are:
- in the health sector, where unions, and employers have formalised a Health Sector Code of Good Faith. This consensus document was developed by DHBNZ and the CTU and is now a Schedule in the Employment Relations Act.The Code establishes processes about relationships, advocacy and speaking out, contracting out, collective bargaining, industrial action and patient safety
- in some District Health Boards, where there are engagement workshops involving unions and management
- Pay and Employment Equity Reviews (PAEE), which are currently occurring in the education, health and broader public sector and require a committee to be established in partnership from the beginning
- Partnership for Quality (PfQ) agreement between the PSA and government. The PfQ agreement (available on the PSA website) states 'This PfQ Agreement formally applies to the Public Service. This Agreement, however, provides a model for agencies in the wider State sector and the Government expects such agencies to inform themselves about this Agreement and apply the principles of this Agreement to their relationships with the PSA. This PfQ Agreement formally applies to the PSA. This Agreement, however, provides a model for the sort of relationships the Government would like to see in the wider economy, and both the Government and the PSA will support any future initiatives to build similar relationships.' A resource kit for HR practitioners 'Partnership for Quality' is available on the State Services Commission website.
- in Part 2A of the Health and Safety in Employment (HSE) Amendment Act 2002, where the purpose and provisions of employee participation in health and safety are outlined. As it is mandatory for all organisations to have such provisions, these structures and processes for participation can work well for other matters of employee wellbeing including EEO. The purpose is to require the participation of employees in processes relating to health and safety in the place of work so that - (a) all persons with relevant knowledge and expertise can help make the place of work healthy and safe; and (b) when making decisions affecting employees and their work, an employer has information from employees who face the health and safety issues in practice. A common response to this HSE Act requirement is to have a committee structure that goes from front-line to executive levels of organisation - using cascade 'up and down’ or ‘over and across' communications
- in organisations that use hui or fono participation methods.
Two reports about workplace partnerships from the Department. of Labour's
Partnership Resource Centre contain valuable information for New Zealand businesses, employees and their representative groups. They confirm that traditional ways of organising work aren't necessarily the best ways of managing our workplaces into the future. The first report,
Stocktake on Workplace Partnership in New Zealand, shows employers and unions are more willing to work together than common perception would suggest. Benefits of working in partnership include innovation, productivity growth, improved service delivery and more satisfied staff. The second report,
International Experiences of Partnership, looks at four countries - Denmark, Norway, Ireland and the United Kingdom - and the benefits they have received from partnership approaches. The report provides useful lessons on how successful workplace partnerships can be developed in New Zealand.
Another example can be found in an NZCTU publication “It’s about Time: A Union Guide to Work Life Balance
Demos, an international think tank for participatory democracy has produced a number of reports, essays and books outlining models for engaging partnerships. Some of these can be found in the Resources List. [4]
The International Labour Organisation (ILO) has produced a booklet called
Social dialogue in the health services: A tool for practical guidance (Sectoral Activities Programme, January 2004 . This booklet sets out the context and process for social dialogue, and may be useful for strengthening capacity for managing and facilitating staff engagement
[1] People Capability Sub Committee, Strategic Plan for Goals 1 and 2, State Services Commission, 28 November 2005
[2] People Capability Sub Committee, Strategic Plan for Goals 1 and 2, State Services Commission, 28 November 2005
[3] People Capability Sub Committee, Strategic Plan for Goals 1 and 2, State Services Commission, 28 November 2005
[4] Demos is working with the Public Services Association, to examine the future for New Zealand's public services. They are examining emerging approaches to public service delivery from across the globe to understand what a new wave of reform might look like, and to examine how unions can take a proactive role in helping their members adapt and thrive in the future. For more information e-mail simon.parker@demos.co.uk or call 0207 367 4200
[5] [2003] 2 ERNZ 386 at 394
[6] Toll NZ Consolidated Rail Ltd v Rail and Maritime Union Inc [2004] 1 ERNZ 392 at 417
[7] In the Employment Court, Wellington. WC 15/06, WRC 9/06.
IN THE MATTER OF an application for declarations and injunctions
BETWEEN OCS LIMITED, Plaintiff
AND SERVICE AND FOOD WORKERS UNION NGA RINGA TOTA INCORPORATED,
First Defendant
AND LALOPUA SANELE, Second Defendant
Hearing: 9, 10 and 11 May 2006 (Heard at Wellington)
Appearances: P A McBride and G G Ballara, Counsel for Plaintiff
P Cranney, T Oldfield, and A Hughes, Counsel for Defendants
Judgement: 31 August 2006
JUDGEMENT OF C M SHAW