How is it possible that I only just put the last sneaky Christmas decoration away – it had rolled under a cabinet and hidden – but here we are racing up toward the end of another financial year?  As this new financial year approaches business owners are faced with the critical task of planning for the months ahead. This planning phase is particularly vital given the current economic environment which is delivering rising costs of living and ongoing economic uncertainties.

One of the key areas that requires careful consideration is that of staffing needs.  At HR Staff n’ Stuff, we are definitely seeing the full range of operational needs; from businesses recruiting due to growth or change, to businesses that are considering or planning to restructure which in some instances, is causing potential redundancies.

RECRUITMENT

For those businesses recruiting, things have mostly eased somewhat from being a candidate’s market in many industries and we are seeing more applicants than previously for some roles such as those in administration, marketing and bookkeeping.  However, there are still challenges attracting talent, and in some industries such as project management, trades, childcare and hospitality, candidates still have a strong hand to play when it comes to picking and choosing the roles they want.

Despite reports in the media of moves away from working from home, hybrid work options are still top of mind for applicants in relevant industries and roles.  If that’s not possible, or on offer, then candidates are often still looking for other incentives such as:

• working for businesses that match their ethical positions on matters such as sustainability
• increased superannuation contributions
• salary packaging
• increased leave
• bonuses
• training or education opportunities
• health and wellness benefits such as gym memberships or medical insurance
• above award remuneration

Not all businesses can, or should, offer incentives over and above the opportunity of secure employment with all the benefits delivered under the National Employment Standards, Modern Awards and various other industrial instruments but it’s important to know what you may be up against, and what you might need to consider including in costings, if planning on expanding your workforce in the coming months. 

Note that your EVP (employee value proposition) doesn’t need to come at a high cost to the business, but understanding what it is that you have to offer, and what makes you a great place to work, is important to be able to understand and articulate in your job ads, to attract appropriate candidates. Recruiting today is all about how you sell your opportunity, and focusing only on what your needs are (instead of selling what you offer) will net you only a small amount of candidates…….. and potentially not the best ones!

REDUNDANCY

No one likes the idea of having to consider implementing redundancies, but it is a reality when faced with a downward turn in business that is further impacted by our current cost of living crunch.  Where do you start?

Before reducing your headcount, you need to be sure it is the right thing for your business.  Offloading key skillsets may in fact cause your business more pain than good, so conduct a workforce audit and assess the current roles, workloads, and productivity levels.  Are there duplications in responsibilities? Can you streamline processes meaning headcount can be reduced, or would that cause a skill gap or negatively impact productivity?

Review budgets and evaluate your financial capacity to support your current staffing plans.  What impact will a reduction have on your payroll budget as well as the impact on deliverables – will redundancies allow you to continue to service client needs and meet business goals?

Like anything within the world of employment, legislation is in place to protect both the employer and the employee.  Redundancies must be genuine, meaning they must meet particular criteria, and shouldn’t be used as a way to remove a person instead of going through a proper performance management process. If you are looking at potential redundancies in your business you will need to undertake a proper consultation process and follow strict procedural fairness processes.

Each situation is different and comes with its own set of complexities that must be addressed and planned for prior to enacting a redundancy process.  If you believe that you may need to consider redundancies as we draw closer to the end of the financial year, now is the time to have strategic plans established and we highly recommend you contact HR Staff n’ Stuff for advice or support with the process in order to avoid potential unfair dismissal claims.

ALTERNATIVES TO REDUNDANCY

If your business is facing financial challenges but you do have confidence that you can work through it, as part of the consultation process you may wish to put a range of options to your employees that could help the business through a temporary down turn, such as:

• reduced working hours – if some employees  reduce their working hours by a set amount, will that save jobs?  Can your employees afford to do this and are they willing to agree to a temporary change?
• unpaid leave/sabbaticals – some employees may be more financially secure than others and may be interested in taking a period of unpaid leave for a finite period.  This temporary measure can help reduce payroll expenses and could get you through a testing financial period and will still allow you to keep quality employees in your business.
•  secondment – you may have relationships with other businesses that could utilise the skillset of some of your employees for a short period of time.  With the agreement of the employee/s, they may be able to work elsewhere for a defined period and then come back to you at which time, the pressure on the business may be substantially reduced.

So… Recruit? Consider redundancies? Or business as usual?

Regardless of how your business is travelling right now, strategic planning is a must when it comes to your workforce so that you are well prepared for whatever this crazy world throws at you.  Knowing what you need to do and how you will enact your plans will help mitigate risks and financial loss and will help your business to weather any storm that comes your way.

If you are assessing your staffing needs and require advice regarding your options, please contact the HR Staff n’ Stuff team to discuss.