3rd edition
HRM Consulting – Newsletter August 2009,
Welcome to the August 2009 HRM Consulting Services Newsletter. In this month’s edition we look at the following issues:-
- Labour Force Figures – July 2009
- Safety News – Safety matters in hard times, and
- Just a Thought – Business Confidence is on the rise.’
Before we get started, I thought it prudent to look at some news of the last couple of weeks…
- NSW State Awards received an increase of 2.8% (per week);
- The Australian Bureau of Statistics (ABS) reports in the twelve (12) months to May 2009, full time (adult) total earnings rose by 5.6% [for males] and 5.0% [for females];
- The Reserve Bank of Australia (RBA) considers rate increase as the economy improves;
Labour Force Figures remain steady… there are signs that the economy is stabilising and that the labour market is resilient following the results of the latest ‘Employment Rates’ statistics which show that unemployment remained steady at 5.8%.
Reports show a surprising 32,200 jobs were created in July. This is seen as the biggest increase [in jobs] in more than a year. This is in stark contrast to reports, prior the release of these figures that expected a substantial rise in lay-offs.
Key to this result was the increase in part time employment which rose by 48,200 positions, surpassing the reduction of some 16,000 full time jobs. This increase in part time work is in keeping with the trend towards fewer working hours as witnessed over the last 12 months.
The Federal Government has commented on the positive way in which all parties (i.e. workers, employers and unions) have reacted to the current climate as they have taken a sensible approach to retaining jobs.
According to the Australian Bureau of Statistics (ABS), the workforce participation rate was steady at 65.3% which suggests more people are entering or staying in the job market, which is better than expected for the current market trends.
Predictions from Economists suggest that the official forecasted [unemployment rate] of 8.5% are now too pessimistic, with many now forecasting a rate of 7.5% is more likely. This positive news on jobs however may have a negative impact on interest rates, with some suggesting that interest rates will increase.
The change in employment status, from full time to part time, is said to slow household income growth, thus undermining consumer spending. This will increase the likelihood that any recovery will be sluggish. Interestingly this change in employment status has helped stem the tide of the economic downturn, so rather than terminating employees, by reducing the hours worked has helped to moderate the [likely] recession.
Notwithstanding, these figures suggest employers efforts to retain staff support the theory that the worst is coming to an end and the possibility of an economic recovery is very likely.
These results are supported by a survey conducted by the Commonwealth Bank and the Australian Chamber of Commerce & Industry of 2519 employers which found that although the employment outlook was weak, economic and business conditions are set to improve in the September quarter.
Safety matters in hard times...it's no surpirse to hear that businesses across the country are feeling the effects of the current financial situation. As a result, [some] employers have sought ways to cut and/or reduce costs to its operation. Although this may be an imperative, it is important that Safety is not adversely impacted upon.
The obvious areas to reduce your spend will be on items such as stationery, [cream] biscuits in the tea room, or removing the office plants. Some organisations will change their recruitment plans or consider a complete restructure. These decisions can affect more than the bottom line.
Interestingly, one important matter that is overlooked in all these changes is the impact this will have on the employees. Increased workloads and/or changes to the workplace or work processes can cause stress and anxiety within the team. Such distractions/pressures can add to their day, causing them to rush or make mistakes which could put them at risk.
If employees are uncertain about their future and/or the future of the business, they may be reticent to report hazards.
Yes management are looking at ways to ensure the business is productive and achieve short-term profits, and so activities like consultation, maintenance and training may not be considered as a necessity. This is not the case. There are genuine business advantages to looking after your employees.
Organisations will benefit greatly from having secure and motivated employees. This can be reflected by increased productivity, greater involvement and/or innovation from the team and you may also see a reduction in absenteeism. Having this productive environment can also help companies avoid lost time incidents and compensation claims.
As an employer you may not be able to control the global economy; however you do have the ability to manage and control the activities within your business, and therefore improve the safety and wellbeing of your team.
Just a Thought… Business Confidence is on the rise, and it seems every where you turn there are signs that this is the case. Reports in the media say that Australian business confidence hit its highest level [July 2009] in almost two years, which suggests an economic recovery is gathering momentum.
This of course is good news which will help the optimists offset the commentary of those who advocate a more pessimistic point of view.
Further good news comes from the fact that the improvement to business outlook will assist those employers who seek to retain their staff despite the downward trend in demand, hence production.
Although this business confidence is broadly based, reports suggest there are strong signs (specifically) in construction, wholesale, transport and manufacturing industries over recent months.
There are those who are cautiously monitoring this situation suggesting that consumer confidence and therefore spending may weaken. This coupled with low business investment suggest the mid term prospects may not be as bright. Which means it’s important for business not to get too confident.
Take into consideration that over the last few months a number of factors have come into being… including the Government stimulus package and the low interest rates. These factors have now been realised, however going forward there may be no further Government ‘hand-outs’ and the RBA are suggesting the interest rates may rise, as soon as February 2010. Hence the calls for caution may be warranted.
We are however in a better position then some of our allies. In New Zealand the unemployment rate reached a 10 year high of 6% and in the U.S. a reported 371,000 jobs were lost in July, taking their jobless rate to 9.6%
Overall it seems that Australian business have weathered the economic storm relatively well. Yes, there have been restructures and people have lost their jobs, but we see that organisations have developed [appropriate] strategies, new products and markets whilst holding a keen eye on innovation.
I think watch this space is an appropriate perspective as we track along the next six (6) months, and if all the reports are correct, we may well see ourselves and our businesses working in positive territory once again.
If you would like any further information regarding the information contained within this Newsletter and/or any other HR Matter, please don’t hesitate in contacting us at contact@hrmconsulting.com.au or you can call John Cachia direct on 0419 738 735.
Remember at HRM Consulting, we help grow your business through smart solutions for your most valuable resource: your people!
Comments
Post has no comments.