Episode 065: Getting Staffing Right with Norelle Pratt from HR for Health Leaders
Running an allied health clinic involves more than just providing excellent care—it also requires building and managing an effective team. In the recent episode of the Folding Towels Podcast, hosts Jackie and David sat down with Norelle Pratt, founder of HR for Health Leaders, to discuss the intricacies of staffing in allied health. With her extensive HR experience, including co-owning a remedial massage clinic, Norelle shared her insights into common HR pitfalls, legal requirements, and practical strategies for clinic owners navigating the hiring landscape.
1. The Challenges of Hiring in Allied Health Norelle opens by addressing one of the most significant challenges allied health clinics face: hiring and managing staff. While many clinic owners are exceptional practitioners, managing a business and team can be a steep learning curve. Norelle’s firsthand experience co-owning a massage clinic in Perth gave her a unique perspective on the common staffing issues, from understanding employment law to dealing with the financial realities of running a business.
She highlights two frequent mistakes clinic owners make: employing sham contracting and neglecting to understand their numbers. Sham contracting, a practice where staff are classified as independent contractors but should legally be employees, poses serious legal and financial risks. Norelle advises that clinic owners seeking to engage contractors need to consult legal experts to avoid non-compliance with legislation.
Understanding the financial implications of staffing is equally critical. Many clinicians are unaware of how much it costs to employ a team and often fail to create a proper budget. Norelle recommends that clinic owners take the time to calculate the full cost of hiring, including wages, superannuation, and operational expenses. Without these calculations, it’s easy to find yourself in financial trouble.
2. Casual Conversion Rights: What You Need to Know David recounts a personal experience when Norelle helped him realise that his casual staff members should have been offered permanent positions after a year of regular work. Norelle explains the concept of the right to casual conversion, which many employers overlook. Under this rule, employees who have worked regular hours for a year are entitled to request permanent status unless there are valid business reasons to deny the request.
This law helps protect employees by offering them more stability, but it also requires clinic owners to be mindful of their legal responsibilities. Norelle advises that businesses with casual staff need to monitor their hours and employment status to avoid claims of unfair treatment down the road.
3. Sham Contracting: The Risks for Clinic Owners One of the most significant risks allied health clinics face is the issue of sham contracting. This occurs when clinic owners misclassify employees as contractors to avoid paying benefits such as superannuation or leave. Norelle explains that even if the contractor agrees to the arrangement, it’s the employer who bears the legal responsibility if the classification is incorrect.
She emphasizes that many clinic owners believe they can “get around” the law by signing contractor agreements. However, the reality is that if the individual is providing labour and cannot delegate their work, the employer is responsible for superannuation payments. Norelle urges clinic owners to seek proper legal advice to ensure compliance and avoid costly mistakes.
4. Understanding Superannuation Obligations Superannuation can be a complex issue for clinic owners, particularly when dealing with contractors. Norelle breaks down the common misconception that contractors, especially sole traders, are responsible for their own super. The truth is that if they meet specific criteria—such as being engaged primarily for their labour—the employer must pay their superannuation.
Norelle recounts an interesting case involving a dentist who was classified as a contractor but was still awarded superannuation by the court because he met the criteria of being a deemed employee. This case serves as a warning to all clinic owners about the importance of understanding and fulfilling their superannuation obligations.
5. Navigating Award Changes One of the most common HR-related questions Norelle receives is how to interpret awards and pay rates. Allied health professionals, including remedial massage therapists, fall under the Health Professionals and Support Services Award. This award governs wage rates, working hours, and entitlements. Norelle discusses recent changes to the award, including rules about when overtime applies and how casual workers are compensated.
She explains that many clinic owners are unaware of these regulations, often leading to incorrect payments and potential legal issues. Norelle advises clinic owners to familiarize themselves with the award and ensure they’re adhering to the correct pay rates and entitlements for their employees.
6. The Importance of Knowing Your Numbers A recurring theme in Norelle’s advice is the importance of knowing your numbers. Many clinic owners underestimate the cost of running a clinic, especially when it comes to employing staff. Norelle stresses that it’s essential to calculate the full cost of employment, including superannuation, workers’ compensation, and operational costs. Without a clear understanding of these expenses, it’s easy for clinics to find themselves struggling financially.
Norelle has created resources, including a wages worksheet, to help clinic owners calculate their costs and ensure they’re charging enough to cover expenses and make a profit. This clarity is crucial for clinic owners to avoid underpricing their services and operating at a loss.
7. The Value of Outsourcing As clinic owners scale their businesses, outsourcing becomes a valuable tool. Whether it’s hiring a receptionist to manage bookings or bringing on a virtual assistant for social media management, outsourcing can free up clinic owners to focus on client care. Norelle encourages clinic owners to carefully calculate the costs and benefits of hiring admin staff, ensuring that their income from therapists covers the additional wage expenses.
8. Tips for Managing Staff Effectively Norelle also offers guidance on managing staff effectively, especially when it comes to addressing performance issues. Many clinic owners are unsure how to approach these situations and may wonder whether they need to provide multiple warnings before terminating employment. Norelle clarifies that while it’s essential to follow fair processes, clinic owners don’t need to tolerate poor performance and should feel empowered to manage their teams effectively.
9. Final Thoughts Hiring and managing staff in allied health clinics is a complex and often daunting task. However, with the right knowledge and resources, clinic owners can avoid common HR pitfalls and build a successful team. Norelle’s expertise and practical advice provide a valuable resource for clinic owners navigating the intricacies of staffing, helping them stay compliant with employment laws while growing their businesses.
By understanding the financial realities of hiring, adhering to legal requirements, and managing staff effectively, clinic owners can create a thriving business that supports both their clients and their team.
Connect with Norelle:
Website: https://hrforhealthleaders.com.au/
Email: info@hrforhealthleaders.com.au