Article by Damien Durston, Head of Sales ANZ, at Advanced
There are a multitude of challenges currently facing the manufacturing sector in Australia, not least managing an ageing skilled workforce operating on a 24/7 shift basis.
Manufacturing companies grapple with the complexities of a sprawling workforce, intricate shift schedules and the need for a delicate balance between productivity and worker wellness. The challenges of managing a manufacturing workforce are magnified as firms grow, as the requirement for a dynamic and engaged workforce intensifies.
Critical factors such as interpreting complex award systems, managing overtime rules, ensuring efficient onboarding, handling leave and accruals and maintaining accurate time and attendance records are essential for manufacturers. These elements are vital for Human Resources (HR) departments to master, so they can streamline operations and foster a happy workplace.
Replacing manual HR processes
The transition away from manual, paper-based workforce management practices has been a significant leap forward for the manufacturing sector. Embracing digital HR solutions not only enhances organisational efficiency but also unlocks a host of benefits such as time and cost savings and improved resource allocation. Yet, despite these advantages, some manufacturers retain outdated manual and paper-based processes that inhibit productivity and hamper operational agility.
Time and attendance systems for manufacturers
In the quest for improved efficiency, accurate management of shop floor activities and a strategic approach to workforce deployment are indispensable. This includes leveraging technological advancements like a Time and Attendance system tailored for diverse manufacturing environments. Such systems facilitate precise tracking of employee hours, streamline rostering and support dynamic shift patterns, thereby reducing administrative loads and enhancing payroll accuracy.
Avoiding wage theft
Misinterpretation of awards and improper management of overtime often leads to workforce payment errors, which we have seen result in significant legal and financial repercussions for large manufacturing firms since legislation was introduced. As part of the Closing Loopholes Bill to be introduced into Parliament in 2023 there will be a maximum possible penalty of ten years imprisonment and maximum fines of up to $7.8 million, or three times the amount that was underpaid if that amount exceeds the maximum fine. This means that the level of penalty can be proportionate to the extent of the underpayment.
The Australian Manufacturing Workers’ Union (AMWU), which represents over 70,000 manufacturing workers said many of them have experienced wage theft. The AMWU regularly identifies and pursues underpayments under the following categories:
- Payment of an hourly rate or salary that does not reflect the applicable minimum wage rate under the relevant industrial instrument.
- A failure to pay applicable overtime or penalty rates.
- Failure to correctly accrue annual, sick and long service leave.
- Failure to pay annual leave loading, particularly upon termination.
- Late or no payment of superannuation.
- Failure to pay for set up and pack up time.
- Incorrect classification of workers under industrial instruments and incorrect progression through those classifications during an employee’s tenure.
- Failure to pay allowances.
- Payment of a salary or flat hourly rate that is said to incorporate applicable entitlements but fails to do so.
A Time and Attendance system can play a crucial role in mitigating these workforce underpayment risks by ensuring accurate recording of working hours and compliance with a complex set of labour laws and industry awards across Australia.
Auto-rostering in manufacturing
The manufacturing sector is characterised by its continuous operations and potential safety hazards, which necessitates vigilant monitoring of work hours to prevent employee fatigue, reduce error rates and minimise the risk of workplace incidents. Implementing an Auto Rostering system simplifies the creation of equitable and compliant shift schedules, taking into account worker preferences and requests, skill sets and legal obligations, thereby promoting a healthy work-life balance and preventing employee burnout.
The digitalisation of workforce management
Digital workforce management systems offer comprehensive visibility and control over employee data, from leave entitlements to accrual management, enhancing decision-making and operational transparency. This not only benefits HR departments by easing administrative burdens but also empowers manufacturing sector employees with real-time access to their entitlements, fostering a more engaged and happier workforce.
Conclusion
The manufacturing sector in Australia stands to gain immensely from the digital transformation of its workforce management practices because it remains extremely labour intensive. By adopting integrated digital solutions, manufacturers can achieve a harmonious balance between operational efficiency and employee satisfaction. This strategic approach to workforce management not only saves time and money but also cultivates a more dynamic and productive workforce, setting the foundation for sustained success in a highly competitive environment.
