Closing Time for 2018: Penalty rates, employee turnovers, and other Australian labour trends
Another year of business has come and gone. The ever-changing landscape is continuously breeding innovations. FW penalty rates are rolling out and turnovers are still unstable. Need help gauging your business plan for the coming year? Here’s a quick look at the major factors in the Australian economy: Awards, Penalty Rates, and Wages • Changes […]
Monic Del Rosario
28 December 2018 |
Another year of business has come and gone. The ever-changing landscape is continuously breeding innovations. FW penalty rates are rolling out and turnovers are still unstable. Need help gauging your business plan for the coming year? Here’s a quick look at the major factors in the Australian economy: Awards, Penalty Rates, and Wages • Changes in penalty rates for the retail industry were announced last month. Changes will roll out over the coming years, mostly affecting casual employees and weekend shifts. Other industries’ awards continued to roll out this year, some of which were hospitality, pharmacy, and fast food. • The Fair Work Ombudsman apprehended and/or penalised businesses for improper payroll processing and/or treatment of staff, resulting in underpayment of employees. This year’s reports amounted to over $10 million for probing into multiple businesses nationwide. • When it came to labour issues, five industries had the most number of issues. The industries are: fast food, restaurant, hospitality, transportation, or manufacturing. Read more: Australian Penalty Rates: Retail Industry Update (Nov. 2018) Wage Growth and Employment Rates • Slow wage growth has continuously been affecting businesses and staff alike in 2018. Managers need to change this in order to reduce low-wage, low-quality jobs, and joblessness. The OECD Employment Outlook reports that the overall worsening of the wages in Australia is associated with decreased earnings of staff, which resulted in the rise of involuntary part-time unemployment. • The OECD also reported that 67% of Australia’s workforce is between the ages of 15-74. They indicated that the employment rate is expected to rise in the coming year. This counters the country’s 5.5% unemployment rate of 2018. • The DJSB conducted a study that suggests businesses use a digital and data ecosystem for streamlined operations. This is from seeking staff, to onboarding, and down to paying them. Several sources stated that incorrectly paying staff is one of the most common reasons why employees seek jobs elsewhere. • In terms of employee turnover, AI Group reports that Hospitality is still the industry with the most people changing jobs. Around 16% of the industry’s workforce changed employers/business in a span of 12 months; while Retail and Manufacturing reported a 7% turnover rate, and Healthcare at 5%. • Australia’s labour market remains diverse, with another study by the DJSB stating that the 3 largest-employing industries are Healthcare (13.4%), Retail (10.3%), and Construction (9.4%). Read more: Wage theft is on a roll: Sushi as a symbol of unpaid wages Automating Businesses in the Digital Economy • The Treasury recently published a discussion paper about the digitalised economy of Australia. Their report estimated that the GDP per person in Australia is around $5,000 higher, thanks to the digital economy. • The same report also mentioned The G20/OECD Base Erosion and Profit Shifting Project. They focused on improving tax frameworks by digitalising solutions. They also aim to increase ‘the capacity of businesses to have a significant market presence without being liable to taxation.’ • In an effort to kick off the BEPS project and to lessen breaches in wage laws, the Australian Taxation Office implemented last July the Single Touch Payroll, where businesses were required to use software that can send tax and super information directly to the ATO. • ASBFEO suggests that businesses move to using software for better management, especially when it comes to data, finance, and human resource management. Companies that use digital services to operate ‘save an average of around 10 hours a week’. They ‘subsequently increase annual revenue by almost a third’. Read more: Introducing Live Insights: Using real-time staffing to secure your business Digitalisation is becoming a part of economic policies. We can definitely expect a lot more trends and solutions to come up in the coming years. Technology has started to become an indispensable part of running a business and working out the never-ending wage and staffing problem are already being solved with specialised software as we speak. What other innovations do you predict will come this 2019? Curious to know more about a workforce management system that can help your business get better this 2019? Book your FREE demo today.