People


  • Only 15.3 per cent of businesses definitely intend to hire additional employees.
  • Over one-fifth of businesses offered flexible working hours to staff and 13.3 per cent offered unpaid leave, allowing them to retain talented people while reducing costs to deal with the slowing economy.
  • More than half (53.1 per cent) of businesses identified high wage costs as their number one hiring constraint.
  • More than one-third of businesses said they made staff redundant in the past 12 months.
  • Almost 68 per cent of businesses had no plans to change employment conditions to bolster their image as a competitive employer, compared to 38 per cent of businesses
    two years ago.
  • Businesses are divided over the wages outlook for the next year, with 53 per cent predicting a decline and 30 per cent a rise.



We’re looking to hire more people. There’s an aspect of needing to hire ahead of our growth curve. We realise there is massive value in adding good people. Investing a bit more than you need to get a better person produces better results than paying a bit less and getting a person that met your needs at that particular moment.

Standing out from the pack as an employer of choice is a high priority for us. We want to be a place that great people are desperate to work at. With rapid growth it’s all about good people. Get the best people, get the best results. We’ve set ourselves an objective of being in the top 10 great places to work in Australia.


Our people and our people’s talent are absolutely everything. We do have products and systems and processes, but really the expertise lies in the people.

We’re very candid and straightforward business leaders. During the slowdown we really just told people how it was and then made sure they were not feeling threatened or worried about their role. We did make it clear that we would expect them to bunker down with us and work very hard for the next 12 months. During that time, we would make sure that they were well looked after and well nurtured, and that all of us would grow and be better as a result of it.

We set challenges for the staff to work together as a team and to work with the business to get through the next 12 months, but we stepped very talented individuals right up into roles where they would have a lot of responsibility and have to learn new skills very, very quickly. They’ve all done beautifully well since.


One of my key performance indicators is that there is a succession plan in place over the next two-to-three-year horizon. We will develop a couple of possible candidates to step into my shoes. This is also something I am developing with our senior executive group – making sure we are equipped to deal with an executive going away for a month by developing a plan and identifying talented people who can step up when needed.

We absolutely need the very best people and people when given a bit of time in the business, can step up to the next level within the organisation.



Click on graph to enlarge
Hiring plans fall

Hiring intentions have sunk to a new low, with only 15.3 per cent of businesses announcing definite intentions to hire additional employees (down from a high of 46.1 per cent in August 2007). In addition, 13.3 per cent of businesses are actively planning to cut staff numbers during the next six months. Nearly one-third (30.6) per cent of businesses are unsure about their six-month hiring plans.

This demonstrates that businesses are still cautious about increasing their staffing costs until Australia’s economic growth is more assured. However, those looking to cut staff in the next six months risk not having the resources or expertise to make the
most of opportunities.


Figure 15: Intentions to hire in the next six months


Table 21: Intentions to hire in the next six months
Businesses retain talent while reducing staff costs

Private businesses have reduced staff numbers significantly during 2009. More than one-third of businesses said they made staff redundant in the past 12 months.

Many businesses have also reduced their staff costs in other ways, with 22 per cent offering flexible working hours to staff and 13.3 per cent unpaid leave.


Table 23: Employment measures implemented
in the past year
Standing out not a priority

Private businesses do not rate becoming an ‘employer of choice’ as a current priority, as highlighted in Table 23 (Hiring plans fall). Almost 68 per cent of businesses had no plans to change employment conditions to bolster their image as a competitive employer. Only 38 per cent of businesses reported the same two years ago.

Businesses that are determined to lure talent typically favour performance-based bonuses as their primary tool. Many are also looking to offer flexible practices such as working from home to increase staff loyalty and position themselves as employers of choice. They are generally less inclined to compete on salaries.

This shows businesses are looking to keep costs down or tie remuneration closely to performance in delivering additional revenue while turning to non-financial measures such as work/life balance to attract talented people.


Table 22: Planned changes to position business as a more competitive employer


Table 24: More flexible working practices offered
High wages costs threaten hiring

Fifty-three per cent of businesses identified high wage costs as their top hiring constraint while 22 per cent nominated the removal of Work Choices.


Table 25: Major hiring constraints
Wages up or down?

Businesses are divided over the wages outlook for the next year, with 53 per cent predicting a decline and 30 per cent a rise.


Table 26: Expected change in wage rates during
the next year