As we undertake business planning for the new financial year, a number of human resource trends and issues need to be factored in.
They include ;
Compensation
From the compliance perspective, employers superannuation requirements will increase by 0.5% as the Superannuation Guarantee will increase to 10% from 1 July.
The National Minimum Wage will be increased by 2.5% from 1 July for most employees under a modern award. This will apply to most awards except those in the retail, hospitality, tourism, air travel sectors which will be increased later in the year.
According to a Hays Survey, 67% of employers expect to increase salaries at the next review. The expectations of employees is that an increase of more than 3% best reflects their contribution to the business. The gap between employee expectations and employers plans will need to handled carefully, as nearly 80% of the employees are open to new opportunities that offer career progression.
Getting compensation right will be essential to retain and attract employees.
Remote / Hybrid Working
Is becoming an expected mode for many employees and employers. With employees and employers considering 2 – 3 days a week working remotely as acceptable. Much has been written about the pros and cons of hybrid work arrangements. As it becomes a reality, it is necessary of management to embed appropriate policy and ensure remote / hybrid workers are offered the same support (management support, compensation, training, engagement, development) as on-site workers.
Recruitment / Retention
Employment has recovered (in many sectors) and employees are either looking or open to new opportunities. Developing effective employee retention strategies, with appropriate compensation, rewards & recognition, employee engagement, career development opportunities, training and coaching will be essential.
With more than 40% of companies expecting to increase headcount, in the face of a tight market, it is critical for businesses to plan for medium – long term talent acquisition strategies. Intensive ‘always recruiting’ activities utilising multiple channels will be needed to build employer awareness, activate candidate engagement and effectively secure talent. For many sectors it is a seller’s market, so talent is very selective and consider opportunities from many angles.
Reskilling / Up-skilling and Training
Business volatility demands a flexible workforce, enhancing the skills of the existing workforce will ensure the workforce is flexible and responsive.
The drive for many businesses to de-risk their supply chain has resulted in the on-shoring / reshoring of manufacturing capacity. For many businesses, local manufacturing knowledge and capability was lost in drives to cut costs by off-shoring decades ago. Reskilling or upskilling the existing workforce, and utilising advanced manufacturing techniques is a key goal for many.
New working arrangements require supervisors to apply new approaches and technology to team management. Managers will need to adjust management approaches and build new competences.
Assessing the skill and competence requirements, technical and management, and forecasting future needs is forcing management to re-think their operations.
Employee Wellbeing
With sporadic outbreaks and clusters of COVID popping up, state lockdowns, travel and business restrictions phasing in an out, combined with working from home and home schooling, everyone is facing a new level of uncertainty and pressure.
The non-traditional nature of work in the last year has added a new layer of stress on the workforce, as a result, the awareness of mental wellbeing and specifically company obligations to consider the mental wellbeing of employees came to the fore.
Companies are now considering Mental Health and Wellness as one of the largest challenges they face. It is increasingly common for there to be Mental Wellness policy and procedures to managers to follow to ensure their teams are safe.
Human Resource management will be essential for a strong business rebound, so good planning and strategies to address relevant issues will be critical.