The Reality of the HR Crisis

Organisations are under threat due to the increasingly complex labour market and the volatility of global economies. The unpredictable trends of skills shortages, redundancies, employee expectations, demographic shifts and industrial relations changes have all contributed to the lack of confidence in the reliability of labour.

The reality is that people management has become reactive and dependent on the individual skill of human resource practitioners (and managers) as opposed to organisational capability. What was once a vague business management principle, the art of managing employees, has now become an essential capability of business leaders in ensuring the sustainability and growth of organisations.

The HR Challenges for Business Today

Labour is on average one of the largest costs to organisations. Businesses report that the cost of labour is escalating due to employee expectations for pay increases, compounded by the higher education and increasing skill level of employees and their growing levels of personal debt as well as increased competition between employers for talent.

  • The Red Tape Commission, formed by the Australian Government, estimates 75% of organisations struggle with paperwork and compliance and that unnecessary compliance costs could amount to some $8 billion nationally. A significant proportion of compliance, and the expected growth in this area, is centered around employee management.
  • COAG (Council of Australian Governments) has placed central importance on building Australia’s Human Capital as a key reform stream. The Commission has estimated that improvements in workforce productivity could add 3% to annual GDP.
  • Changes in legislation have caused confusion and mistrust. Organisations are at risk externally with escalated claims for unfair dismissal and fines. It is a risk to organisations that left unchecked could have dire consequences.
  • 54% of workers are intending to look for new jobs in the coming year according to a report released by Adecco.
  • It is estimated that it can cost more than $48,000 to replace an average employee earning a salary of $45,000.

In light of these compelling factors, human resource practitioners and business leaders are struggling to strategically position and manage human resource initiatives to optimise their workforce potential. To find out more download our latest white paper Setting the Standard - The Standardisation of Human Resource Frameworks.

 

HR HealthCheck

tHReshold has developed an in depth HR HealthCheck to assist small to medium size enterprises identify risks in their business created by the introduction of the Fair Work Australia legislation. To find out what's going on in your business and reduce your risk call 0418 144012 NOW!

The battle for talent back on the agenda

With an improving expectation of growth in sales and profitability, businesses are looking to resource this trend with increased participation of employees as well as the recruitment of new employees. Concern in relation to finding and keeping talent could see an increase in wages bills – both through an increase in hours of part time employees, and rates of pay for full time employees. To find out what's going on with your people and reduce the risk of staff turnover click here or call 0418 144012 to arrange a FREE diagnostic

 

 

 

 

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