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Social Media - The Good, The Bad & The Ugly

Social media allows every comment, word, thought, and rant of an individual to be accessible to the world.  Everyone can have a say and much of what is said is often given credence regardless of the source or weight of evidence.  At its best, social media gives every David a forum to beat Goliath.  At its worst, the faceless pseudonym driven world of social media can be used to destroy reputations or spread misinformation either by intent or sheer ignorance.  As a business and employer, the question is, is social media a threat or an opportunity and how paranoid should you be?

Social media and your team
Aggrieved or just plain naive employees have the capacity to turn a bad day at the office into a brand embarrassment.

Take the example of the 13 Virgin Atlantic crew members who used facebook to insult passengers (calling them “chavs”) and generally complain about the airline.  In a statement, Virgin Atlantic confirmed that “13 members of its cabin crew will be leaving the company after breaking staff policies due to totally inappropriate behaviour.”

The BBC reported the case of a Swiss woman fired by Nationale Suisse for using facebook on the day she called in sick with a migraine saying she had to be in a darkened room and could not use her computer.  Allegedly, another employee alerted the company to the fact that she was using facebook that same day.

Australia is not isolated from the facebook firing phenomena. In a recent case before Fair Work Australia a hairdresser successfully won her case for wrongful dismissal after her employer fired her for, amongst other things, comments she made on facebook stating “Xmas bonus alongside a job warning and no holiday pay!!! Woohoo the hairdressing industry rocks man!!!”
In the decision, Fair Work Commissioner Bissett said that “What might previously have been a grumble about their employer over coffee or drinks with friends has turned into a posting on a website .... Posting comments about an employer on a website (Facebook) that can be seen by an uncontrollable number of people is no longer a private matter but a public comment....A Facebook posting, while initially undertaken outside working hours, does not stop once work recommences.”

Despite this, Fair Work Australia saw that the comments made by the hairdresser “were silly in the context of being made in a public forum” but not damaging to the hairdressing business.

As an employer, the question of how to protect your corporate image without impinging on your employees personal lives is vexing and remains largely unanswered. However, if the comments of an employee are shown to be detrimental to the business and the business has an active policy in place preventing employees from being publicly critical of the employer and its business, then an employer should be within their rights to pursue disciplinary action.  But firing an unruly employee in a knee-jerk reaction to sarcastic comments is not enough.

The Commonwealth Bank recently came under fire for its internal social media policy released to staff in December.  upon employee’s use of social media channels..” and “...goes beyond conduct that could legitimately be regarded as involving damage to the banks reputation or interests.”  The FSU goes on to say that the requirement for employees not to “comment on, post or store any information about bank related matters”, or “disparage or speak adversely about the group, its customers, employees or customers” severely restricts employees’ freedom of expression.  Employees who breach the policy may face disciplinary action including termination.

Social media and your brand
Any form of investment whether it’s in technology or in time needs to have a clear and measureable objective. Social media is an untamed beast.  Does your business have the time and resources to measure and manage what is being said 24/7?  If you have a blog or are on twitter, do you have the resources (and enough to say that is valuable) to maintain consistency? The online community are understandably cynical of business and their desire to simply spin –they can get that from the mainstream media.

The Commonwealth Bank found this out when a customer, a journalist, used twitter to vent her frustration at delays in the bank’s mortgage processing centre.  She then reported in news.com.au the fact that 1 hour and 17 minutes later she was “contacted by someone offering to help to solve my problem.” The journalist then states that the bank had said it would continue to “reach out to customers via social networking.” So, is the bank acting on twitter posts? Apparently not.  Not long after this story broke, a US blogger pointed out that the tweet responding to the journalist’s complaint was not from the bank “reaching out” but from a private employee who appeared to work for the bank (the tweet was from @ozdj not @CBAOnline).
There are business operators that actively use social media to their advantage.  Virgin America states that it uses social media to boost its brand presence, allocating up to 70% of its advertising budget to the format.  It’s a good match for a business that sells the vast majority of its tickets online. In Australia, there was the Tourism Queensland’s Queensland’s “Best job in the world campaign” that primarily used social media (as part of an integrated strategy) that attracted 8.4 million site visits.


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2013 The Year Ahead For Businesses

Written on the 10th of February 2013

No age limit for super contributions

From 1 July 2013, the upper age limit for superannuation contributions will be abolished.   Employers will be required to contribute to the complying super funds of eligible mature age employees aged 70 and older.

Payslip reporting of super payments

From 1 July 2013, employers will need to provide additional information about superannuation contributions on an employee’s payslip.  Employers will need to report the amount and expected date of contributions they are making. 

Living away from home

If you have employees living away from home, you need to know about the changes to the Living Away From Home Allowance system.  The Government tightened the eligibility rules from 1 October 2012 for all new agreements entered into from 8 May 2012. Transitional rules can apply to arrangements entered into prior to 8 May 2012 but the full set of new rules will apply from 1 July 2014 or when the arrangement is modified (whichever comes first).

Basically, the new rules limit the concession to 12 months in a particular work location (except for fly in fly out employees), require temporary residents and non-residents to maintain a home in Australia, and receipts to be kept for all expenses.

In-house fringe benefit changes

The concessional fringe benefit tax treatment of in-house fringe benefits provided by employers under salary sacrifice arrangements was abolished from 22 October 2012 (transitional rules apply until 1 April 2014 for existing agreements).    This change will particularly affect retailers providing discounted goods such as clothing, and organisations such as private schools that provide discounted education for children of employees.

Previously, in-house property and residual benefits were eligible for a 25% reduction in the taxable value.   While this change occurred in 2012, we are likely to see the full effect in 2013 and beyond.

Building and construction industry reporting

A new reporting regime came into effect on 1 July 2012 requiring businesses in the building and construction industry to report payments to contractors.  The first of these reports is due on 21 July 2013.  Businesses affected by the reporting regime need to report the contractor’s ABN, name, address, gross amount paid for the financial year, and total GST included in the gross amount.
 


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2013 The Year Ahead For Businesses

Written on the 10th of February 2013

No age limit for super contributions

From 1 July 2013, the upper age limit for superannuation contributions will be abolished.   Employers will be required to contribute to the complying super funds of eligible mature age employees aged 70 and older.

Payslip reporting of super payments

From 1 July 2013, employers will need to provide additional information about superannuation contributions on an employee’s payslip.  Employers will need to report the amount and expected date of contributions they are making. 

Living away from home

If you have employees living away from home, you need to know about the changes to the Living Away From Home Allowance system.  The Government tightened the eligibility rules from 1 October 2012 for all new agreements entered into from 8 May 2012. Transitional rules can apply to arrangements entered into prior to 8 May 2012 but the full set of new rules will apply from 1 July 2014 or when the arrangement is modified (whichever comes first).

Basically, the new rules limit the concession to 12 months in a particular work location (except for fly in fly out employees), require temporary residents and non-residents to maintain a home in Australia, and receipts to be kept for all expenses.

In-house fringe benefit changes

The concessional fringe benefit tax treatment of in-house fringe benefits provided by employers under salary sacrifice arrangements was abolished from 22 October 2012 (transitional rules apply until 1 April 2014 for existing agreements).    This change will particularly affect retailers providing discounted goods such as clothing, and organisations such as private schools that provide discounted education for children of employees.

Previously, in-house property and residual benefits were eligible for a 25% reduction in the taxable value.   While this change occurred in 2012, we are likely to see the full effect in 2013 and beyond.

Building and construction industry reporting

A new reporting regime came into effect on 1 July 2012 requiring businesses in the building and construction industry to report payments to contractors.  The first of these reports is due on 21 July 2013.  Businesses affected by the reporting regime need to report the contractor’s ABN, name, address, gross amount paid for the financial year, and total GST included in the gross amount.
 



2013 The Year Ahead For Businesses

Written on the 10th of February 2013

No age limit for super contributions

From 1 July 2013, the upper age limit for superannuation contributions will be abolished.   Employers will be required to contribute to the complying super funds of eligible mature age employees aged 70 and older.

Payslip reporting of super payments

From 1 July 2013, employers will need to provide additional information about superannuation contributions on an employee’s payslip.  Employers will need to report the amount and expected date of contributions they are making. 

Living away from home

If you have employees living away from home, you need to know about the changes to the Living Away From Home Allowance system.  The Government tightened the eligibility rules from 1 October 2012 for all new agreements entered into from 8 May 2012. Transitional rules can apply to arrangements entered into prior to 8 May 2012 but the full set of new rules will apply from 1 July 2014 or when the arrangement is modified (whichever comes first).

Basically, the new rules limit the concession to 12 months in a particular work location (except for fly in fly out employees), require temporary residents and non-residents to maintain a home in Australia, and receipts to be kept for all expenses.

In-house fringe benefit changes

The concessional fringe benefit tax treatment of in-house fringe benefits provided by employers under salary sacrifice arrangements was abolished from 22 October 2012 (transitional rules apply until 1 April 2014 for existing agreements).    This change will particularly affect retailers providing discounted goods such as clothing, and organisations such as private schools that provide discounted education for children of employees.

Previously, in-house property and residual benefits were eligible for a 25% reduction in the taxable value.   While this change occurred in 2012, we are likely to see the full effect in 2013 and beyond.

Building and construction industry reporting

A new reporting regime came into effect on 1 July 2012 requiring businesses in the building and construction industry to report payments to contractors.  The first of these reports is due on 21 July 2013.  Businesses affected by the reporting regime need to report the contractor’s ABN, name, address, gross amount paid for the financial year, and total GST included in the gross amount.
 


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