Monthly Archives: May 2017

How to turn your work-ability into your biggest asset

My husband Ray and I are your typical Aussie mum and dad property investors; our three children are also young investors (in their 30s).

Back in the 1980s, getting a deposit together to purchase a house was arguably as difficult as it is today. My husband and I started saving on our engagement. Our parents were of humble means – certainly not in a position to help out. There were no maternity/paternity leave entitlements, no child care facilities and we relied on one income for many years after we settled into our home.

The Government at the time attempted to solve the problem of housing affordability by providing a first home buyers grant (a means tested cash bonus to assist with the purchase). Although our individual salaries were not particularly high, when combined, Ray and I were not entitled to the grant.

So we worked five jobs between us. When our peers were out dancing at bachelors and spinsters balls, we were the ones working in hospitality, serving them food and drinks. They were driving around in new cars. We drove second hand cars and once we bought a new one, we owned it for 10 years before buying a new one. Our peers were travelling around the world and going to rock concerts. I regret to say I never attended a rock concert. I remember the only musical I went to see was Jesus Christ Superstar.

Economists are always predicting a drop in the property market and investing means accepting some risk. When we decided to buy an investment property, our parents, friends and family, actually tried to talk us out of it! Don’t do it, it’s too risky, you can’t afford the loan repayments… What if you lose your job, what if you fall pregnant or what if there is another GFC, or a war?

Harry Triguboff, Australian billionaire real estate property developer was interviewed on 60 Minutes recently. He said, “Ordinary mum and dad investors are battlers and not millionaires.” In my experience this rings true. Aussie mum and dad investors contribute to rental availability in the market. It stands to reason that the more investors there are, the more rentals there will be available, which assists with rental affordability.

On the same program Tim Gurner, a young property investor turned successful developer, was also interviewed. Interestingly he recommended exactly what we have practiced. Go without the luxuries, work hard and have a goal. While it has been muted that he received a leg up with a deposit from his family, parents can assist in other ways, such a guaranteeing a loan or providing a deposit bond.

When we criticise the lifestyle choices of millennials, are we simply being critical of young people? My children started in the property market as teenagers. We did not provide them with any funding whatsoever. We set the example; they took the risk, budgeted hard and were devoted to their jobs.

The conversation should be about choices, not criticism. Taking a year off and travelling the world on a working holiday… well good on you, you’re only a year behind in savings, and possibly a few steps behind (or ahead) in your career. The occasional smashed avocado and a latte over breakfast won’t destroy your life savings either. Going to university will put your savings back several years and adds a HECS to your financial commitments in most cases, but you’re positioning yourself to catch up as your career advances.

A request under FOI revealed that over the past eight months (August 2016 to February 2017) in NSW alone foreign investors paid a staggering $76.6M in stamp duty to the state government, compared with Australian and dual nationals who paid almost $3.8M. While it’s obviously a great tax revenue stream, the disparity in the figures are symptomatic of local investors losing in their bids to secure property.

Doing something about housing affordability is problematic. Should we make it easier for young Australians by offering investment grants, allowing first home buyers to use their superannuation for a deposit, or further limit foreign ownership of Australian real estate? All of these ideas are debatable, with potential for unintended consequences. Certainly providing better information on budgeting, saving and investing would help educate the next generation of buyers. At present the real winners in the property market are the banks, property developers, fund managers, real estate agents and the state governments who all benefit from high prices.

My generation, the baby boomers, are often held up as a scapegoat for the affordability crisis. In my family we envisage there will be no government pension by the time we retire, so we are providing for ourselves through our property investments. Despite the media focus on negative gearing, its tax advantage doesn’t benefit us significantly. Here are some final considerations that are often overlooked when making a property investment:

  1. Work hard, taking on an extra job when required can make a difference
  2. New APRA rules mean a 20% deposit is required for an investment loan
  3. Banking institutions charge higher rates for property investors (and even higher interest rates for self-managed super funds)
  4. Factor in the significant cost of stamp duty (paid to the state government on purchasing)
  5. Understand the ongoing body corporate fees (if investing in an apartment, unit or development with shared common property)
  6. Budget for maintenance costs
  7. Negative gearing only applies to tax paid on expenses involved in holding your property
  8. Factor in capital gains tax when selling

At some level we are all working for a secure future. What have you done in your world @work to set yourself up for the future?

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Posted in Professional Support, The world @work

A milestone year for Indigenous education

Slade Group is proud to support the Cathy Freeman Foundation in their 10 year anniversary celebrations this year. Last week we hosted an art show to mark ten years of making a difference to Indigenous students, which coincides with our own 50 year anniversary celebrations. Kath Markov provides some insights on the Foundation’s achievements.

This year the Cathy Freeman Foundation will celebrate 10 years of providing educational opportunities and support to children and families of Palm Island in north Queensland.

“I never imagined that we would have the privilege to work with the beautiful and talented children of Palm Island for 10 years! I am grateful to the Palm Island community who have embraced the Foundation and its programs and I look forward to celebrating this incredible milestone,” said Cathy Freeman, Co-founder and Director of the Cathy Freeman Foundation.

The long term partnership between the Cathy Freeman Foundation and the Palm Island community is undoubtedly one of the Foundation’s greatest successes. Ruth Gorringe, Palm Island local and Community Liaison Officer for the Foundation, says “The Cathy Freeman Foundation is special because people from all over Australia donate and they want to see Indigenous education succeed. People in our community know the Foundation is here for our children’s education. We’re here for the long run and for as long as the community want us here.” Ruth has been a part of the Cathy Freeman Foundation team since 2014 and is currently studying a Bachelor of Education.

Celebrating Year 12 Achievement

More Indigenous children are completing Year 12 than ever before and whilst there is still a long way to go in closing the education gap, the Foundation is proud to celebrate and share in the achievements of students from our community partners.

Last year for the first time in Palm Island history 100% of all senior students graduated from Year 12 with a QCE. “We strongly believe that it takes a whole community to educate a child and this year we celebrated the unprecedented outcomes from working together. We recognise the significant support these students received from the Cathy Freeman Foundation on their journey towards completing Year 12,” said David O’Shea, Deputy Principal, Bwgcolman Community School (2016).

All students who graduate from Year 12 receive a personal letter from Cathy Freeman. “We want their education to go beyond school so it is very empowering for the students to receive a letter from Cathy upon completion of school. I feel really proud and emotional knowing the struggles some of them had throughout school including peer pressure and all of the other things that go with it, but they stuck it out.” said Ruth Gorringe.

If you would like to purchase artworks from the recent Slade Group – Cathy Freeman Foundation Art Show, including Wayne Quilliam’s photographs and unique paintings by Tiwi Designs, click here to view the catalogue or contact us for further information. Click here to find out more about the Foundation or to make a donation.

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How sports coaches use world class leadership to create winning teams

Before I elaborate, I have a confession to make… I’m an ex senior AFL player, now a football coach and more recently, a professional recruiter.

To outsiders, a senior coach is the face of their club, much like a hiring manager is a window to their organisation. They are engaging and genuinely passionate, or as cold as stone.

The strengths of a good coach are universal, but let’s tackle the sport I’m most familiar with – AFL football. Consider the 2016 reigning premiership coach, Western Bulldogs’ Luke Beveridge.

Beveridge walks the fine line between instilling confidence in his players, and holding them accountable for their actions and behaviours.  All the while, he demands exceptional on-field performance.

It is well documented that since commencing his tenure as Senior Coach he has focussed on open and honest communication. He’s built strong relationships with the players, the club, its supporters and a wide range of people associated with the sport, including commentators, the media, and sponsors. These are not unlike the types of relationships we aim for in business when interacting with our clients or customers (who for me in recruitment are candidates), colleagues, suppliers and even competitors in our professional networks.

Much like recruitment, in professional sport, and AFL football in particular, nearly every transaction includes working with the uncontrollable elements inherent in dealing with people. In sport and recruitment alike, those without the qualifications or the requisite experience to pass judgement, often shout the loudest and voice the most criticism.

For Beveridge his clients are predominantly made up of both existing and potential club sponsors and members. These clients have made financial commitments and naturally want to see a return on their investments. In this context a winning performance as a coach could mean a cohesive team, with high levels of morale amongst players, who have the motivation to attend training and associated club events, and are well supported by family. It may translate to increased membership, a higher media profile, greater sponsorship and other opportunities. A winning team is more than match winning performances – think of the otherwise poor practices of the West Coast Eagles circa their 2006 Premiership.

High level sport, in some aspects, is not much different to the corporate sector. We’re juggling all manner of expectations from various parties. There are set timeframes (seasons) with efficiency targets (statistics). In business and sport, we all have to consider best process and methodology. Importantly, just has Beveridge does, we have to establish a culture and live the values, brand and standards of our organisation. Sound familiar?

Some players, as with corporate talent at the top of their game, are hot property.

In other cases some candidates are like promising young players; potential but struggling with form, gaining experience but not quite good enough – yet. How Beveridge manages the pool of talent in his playing group is his greatest challenge, because although he understands the industry and his client demands, his players output and abilities will often predicate game results.

So, would Luke Beveridge be the sort of manager you’d like to have in your organisation? Based on the attributes we’ve explored, I think so. His stakeholder management skills and ability to communicate with a broad range of people and personalities would be a strength. He has the proven experience in implementing a game plan, follows process, allowing him to work efficiently and consistently. Lastly, and I think most importantly, it would be his character and the impact he has on his organisation’s culture. His confident and engaging personality, combined with his strategic thinking, willingness to provide feedback and people management skills would make him successful in a non-sport leadership role. I’d like to recruit him.

Which qualities do you value in a manager? Who would you like to recruit to for your team?

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Does a work legacy matter?

Let me paint the scene. It’s Saturday night, I’m at a friend’s house with a group of mates as our children run inside and outside the house vaguely supervised. Our respective partners are all out, so we’re taking the opportunity for a beer, pizza and football night.

The discussion turns to work, with some general “How’s it going?” and “What are you up to’s?” One of my friends, let’s call him Patrick*, someone I have known since the beginning of primary school, is now a very successful international tax specialist.

With a lot of media coverage around global corporations’ profit shifting and tax minimisation strategies, I ask what he thinks of all this?

His response, “I helped set all that up, but it was a long time ago and it’s not my problem anymore.”

We can joke lightheartedly about a visit to jail as he has done absolutely nothing illegal. However, it seems that the ethical or moral questions from the impact of his work are of no concern to him.

It got me thinking – what is the legacy of our careers, and does it matter to us? (Perhaps the tax avoided could have been used for public health services, old age pensions or infrastructure.)

As a recruiter for more than 20 years, I have been involved in a broad range of appointments, from high profile CEOs to entry level graduates and many things in between. I’m pleased to say that most of those appointments would be described as successful, from senior appointments that have really impacted a business, an industry, even the economy, to long-serving employees who have been regularly promoted, as well as those who do a good body of work and then change employer for career progression.

I acknowledge that it’s my candidates who deliver the work once employed, but I take satisfaction from identifying their capability and potential, and introducing them to the right employer and role. Each successful appointment is a small legacy of my working life.

In a way, my work legacy is more indirect than my friend. Like most consultants, I complete an assignment, and then it is out of my hands as to whether it turns out to be successful in the long run. I keep in contact with both parties but can only minimally impact what happens from there.

In the modern digital economy where everyone wants a social media presence, I’m a bit more old-fashioned. I prefer to keep a lower profile and not make public everything I do (yes, I see the irony of this post), but I do think we should consider the impact of our work on those around us.

What do you think? Does a work legacy matter?

*Not his real name

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Posted in Slade Executive, The world @work