Innovation

Alliance offers employees a wage above the minimum wage as set by Australian Law. Thi Pham states that “the current minimum wage for a Grade 1 removalist under the Transport Worker Award 2010 is $20.65 p/hr. Alliance provides a wage of $24.57 p/hr on a fortnightly basis”. Employees include workers within the company’s main warehouse based in Port Melbourne, and movers across the country while assisting clients. Employees can also opt for payments to come out of a weekly cycle if preferred. This allows employees to better plan for their future and savings, while also enhancing flexibility in their finances.

Inspiration

Current CEO of Alliance, Paul Jones, was an employee of Alliance prior to purchasing the business. “Paul saw that there was greater opportunity for the business to excel, and that employee earnings needed to be improved” said Thi Pham. Financial security for all employees was therefore a large focus for Paul once he became CEO in 2016. As he was an employee himself, he was able to identify areas of the business which could have been improved and implement the processes he believed benefited the company. Paul has since achieved revenues up to approximately $4 million annually and continues to keep his employees as a priority moving forward.

Overall impact

SDG “No Poverty” - Provision of payments above the minimum wage prevents individuals from entering the poverty cycle, allowing them to provide for not only themselves, but also family members. Alliance also allows employees who wish to earn more to sign themselves up for more transportation duties. This allows employees to gain further income than they are contracted to as they can work more if they choose to. This is a long-term effect as it grants employees the ability to achieve financial stability.

SDG “Good Health and Well-being” - Individuals with happier lifestyles and who are financially stable are in a greater position to improve their physical and mental health. This is due to reduced amounts of stress that can occur due to a lack of financial stability. This is both a short-term and long-term goal for Alliance, as they strive to ensure that all employees are well compensated for their contributions.

Business benefit

It has been found that paying above the minimum wage improves employee morale, motivation and productivity. This therefore “decreases turnover rates and negative behaviour within the workplace environment” (Boitnott, 2018). An employee that is well compensated and is happy with their occupation is more likely to “follow guidelines and safety processes than an individual that is not well compensated” (Burke, 2019). Furthermore, Alliance has been able to gain more employees due to positive word-of-mouth that supports the work culture that the company provides. This has resulted in a growth of over 100 employees at Alliance since Paul’s position.

Social and environmental benefit

The innovation set out by Alliance Relocation Group has had a main focus on the community and its employees. Through being available for clients with engaging and enthusiastic employees, the business provides relocation services to ensure moving experiences are as seamless as possible. Through an emphasis on providing employees with wages above the minimum wage, Alliance has supported UN SDGs “No Poverty” and “Good Health and Well-being”, by keeping employees feeling valued at work, and keeping them financially stable.

As Alliance’s main focus has been on its employees and community, it has minimal contribution to the preservation of the environment. The business has not taken any action to implement emission reducing processes, or methods to improve sustainability. Moving forward, it is recommended that Alliance evaluate how they can reduce their emissions such as through the use of vehicles with less emission output as they use large trucks on a daily basis.

Interview

Oanh Thi Pham, CEO Secretary and Book Keeper