“How long is a piece of string?”

I recently received a call from a Member needing information on LAFHA (Living Away From Home Allowance). The Member had accessed the ITCRA Tax Guide (like all aware Members should), found the section that was developed on LAFHA when all the changes were brought in and, just to be sure, emailed the ITCRA info line to check that the information as he read it was acceptable to his situation and could be used.

ITCRA hasn’t had a LAFHA question for so long I thought it best to check as the changes in these areas are subtle but carry incredible risk if badly managed. So a call to ITCRA’s Taxation Lawyer, Peter Gell, a review of the Tax Guide advice completed on the weekend, and the Member got his answer.

I had a call from another Member with a question on Working Holiday visas. Again so many changes that it is impossible to keep up so call goes out to the Immigration lawyer Alan Chanesman. All sorted and Member’s compliance and risk management intact.

Then a curly one: a call from a senior manager whose boss was overseas. A candidate was threatening to self harm. The Manager had followed all the procedures in place referring the candidate to professional assistance but needed additional advice on ensuring the business was protected. A call to the OAMPS team, policies checked, further referral points for candidate agreed upon and assistance for the manager to address any further calls from the candidate. The candidate is now accessing much needed support. The iSafe and WorkPro advisories on mental health got a workout and the senior manager was able to report a positive outcome when her boss returned.

Next, a contractor contacts me through LinkedIn, after seeing the ad on television where ITCRA (me) is promoting the IT Institute for improving job success through upgrading skills.

I referred her to the ITCRA Member Directory and to the IT Contractors’ network on LinkedIn which ITCRA moderates. She followed up to let me know she had very positive meetings with recruiters. I might add she fits all the demographics under scrutiny – female in IT, mature age, considered overqualified, based in a smaller capital city where roles are scarce. She later followed up to let me know she has a contract role for six months and has a network to connect with via LinkedIn, to assist her going forward.

A researcher was looking for some comment on women in IT for a paper they were writing. ITCRA’s Insight has published two papers on this topic and I have developed several blog discussions based on the research so that one was easy. And it also gave me the context for my next column for the Global Recruiter!

No, I don’t have every answer at my fingertips and no, it isn’t all on our website. It is impossible to forecast what might be asked BUT the network that is ITCRA knowledge is so far reaching that there are very few questions the Association receives that we can’t go to an “expert” and get the support we need.

That ball of string that is the ITCRA services and support continues to unravel as more and more clients, candidates, Members and non-Members see ITCRA as a reference point for the white collar contracting and recruitment environment with ICT front and centre in that space. It is great to know the network of providers we have established ensures the answers are provided and, ITCRA can build its knowledge base for all who need it.

Keep those queries coming – knowledge is power and gives us all a voice.

So what’s the big deal?

Yesterday I was having coffee with an ITCRA Member and discussing what I thought was ITCRA’s success story over the past 12 months – I was working hard to convince them that renewing their Membership should be a no brainer. Now this Member didn’t know me as well as some do or the question would not have been asked!

ITCRA’s success is based 100% on the commitment of the Membership base to the Association’s programs and principles – and their willingness to work towards a common goal – no matter how competitive they are in the marketplace.

I can, and do, talk for hours on the ITCRA value proposition which is tangible and which is responsive to Member needs but I think that speaks for itself when, in this current renewal period, even with a Membership restructure – most renewals occurred within 14 days, and with minimal questions asked. In fact, several Members offered their companies to be used to market ITCRA to competitors!

However, in answer to this Members question I used the iSafe Network as the best case study I have seen in over 20 years of Association management where a program has delivered on so many levels.

To which the Member replied “so what’s the big deal?”

The big deal is: an Association program, committed to initially by a Foundation group of Members, led by one of our smaller companies, as well as a number of the larger players, to address the legislative requirements of the Model WHS legislation, in a co-operative cost saving ( for Members!) initiative.

The program now has 25 Member companies involved ( 25% of our Membership), it has the financial support of our Platinum Partner OAMPS Insurance Brokers and our Bronze Supporter WorkPro as well as the intellectual and practical support of the FCB WHS team.

With 412 clients, 4950+ sites and 5,011 contractors in the iSafe Network it’s an amazing coverage of sites and systems in some of the largest Government, corporate and commercial organisations in Australia.

But it is the broader outcome that makes it, in my mind, an industry success story.

The outcomes of the systems and site assessments are reviewed quarterly by ITCRA and FCB and Practice Improvement initiatives are put in place for the benefit of all contract and recruitment organisations as trends are mapped and areas of poor risk management identified. All ITCRA Members and the broader recruitment sector benefit from this knowledge as resources are developed and education of clients, contractors and Members continues. As well Working Groups to address more topical issues are established with outcomes for the whole of industry as an end goal.

And, as an additional bonus, the program is a great market indicator: when a multitude of clients and/or sites hit the system for assessments to be scheduled – we know the market’s picking up!

Going forward the program is now broader than ICT clients: we have accounting, banking and finance recruiters subscribing to be part of one of the most powerful Association driven programs that I have been part of and, what’s even more important, it contributes, in a collaborative manner, to the workplace health and safety of thousands of individuals across Australia – and educates and informs an even wider audience – now that is a BIG deal!

So did the Member renew? That would be telling!

Read the latest iSafe News in detail here

Are you breathing a little easier?

I know we are already into July so discussing May results from RIB may seem a little Rip van Winklish but it is the trends that are important. For those participating in the Report, this news is already old news as you have received your iIndicator – so you know how you are tracking against the market trends.

So what’s the news? May results continue the positive trends witnessed throughout 2014 and have pushed 11 of the 16 RIB Indicators into positive territory. This is the first time in the financial year that contract and permanent volumes in the general RIB population have exceeded the prior year, an absolute sign of improved trading conditions for many – but this is coming off a very negative trend so no handstands just yet.

In the ICT Sector permanent placements remain a little soft and sit -4% down for the financial year to date, while the lift in average placement values (up 12%) has saved the day for many and keep permanent sales ahead of last year by 8%.

SkillsMatch and the Trends Report show the same pattern as contracting is a business and employment choice for many in fluctuating business markets – and election years – and when there is overseas disruptions through conflict and economic uncertainty. Trends in the recruitment sector are always the broader market temperature and I just wish that was recognised by commentators in the business community.

So, with permanent placements improving slightly and contractor hours processed showing a healthy improvement on the same time last year – it seems, for ICT at least, that market improvement is not an unrealistic expectation over the coming months.

To support this – at a recent ITCRA CEO’s Circle the Bank of Melbourne economist Andrew Pryor discussed the general state of the global market and Australia’s place within it. He covered a range of interesting indicators but, in summary, he commented that globally, the world is slowly recovering from the Global Financial Crisis (GFC), with established trading partner markets such as Asia showing growth with continued risk, and with opportunities available for Australian businesses in emerging markets, such as in Russia.

The overall impression of the market is that there are positives in terms of optimism expressed by the public through population growth, economic improvements, and investment. However, the business market is still recovering: soft labour markets and governmental adjustments remain in play – and these are certainly the key factors affecting recruitment activity.

At this meeting RIB Report Director Nigel Harse suggested that management and staff expenditure as a % of gross profit continue at record high levels in the recruitment sector – “ out of control” was the exact expression. The result was flat at 55% in May for ICT but remains high at 57% for the financial year to date. The recommendation, at the CEO’s Circle discussion, was that this should be closer to 42%.

The CEO’s Circle discussion concluded that the Australian economy should be considered in terms of recovering and changing. The ICT contract and recruitment industry, and industry generally, is feeling pressure from this constant change, with a shift in employment types being sought, margin pressures and policy changes at all levels of Government.
It was universally accepted that the industry has its own opportunities to improve its potential profitability and sustainability by questioning traditional approaches, exploring automation, and improving its international standing.

ITCRA Members are well placed to review and consider their business models using the resources available through our research and benchmarking program with RIB, Hart Consulting, HHMC and Bank of Melbourne.

And how do I know the light at the end of the tunnel is getting brighter:
• 1/3 of ITCRA Members renewed their Membership within 7 days of renewal notices being issued
• The number of new ITCRA Certified Professionals has doubled in the past 6 months
• ITCRA has just accepted 12 new Members in the last three weeks – thanks to OAMPS Insurance Brokers for
their support in this Member growth strategy!

My June 30 Report to the Board says it all: “ A great way to finish the year!!”

Start your 2014/15 year off with additional, no cost support, from the RIB Report and the Remuneration and Benchmarking Report – email julie@itcra.com for details – non ITCRA companies are welcome to follow up as ITCRA can assist you to benefit from these resources.