39% of Australian SMB owners now believing the economy is in slowdown. 36% also think the nation’s economy will be worse in 12 months’ time. Only 16% said it would be better a year from now. According to the November 2019 Sensis Business Index.
26% of SMBs also think current Federal Government policies are working against.
Only 34% of SMBs expect an increase in profitability in the next quarter and only 19% expect the size of their workforce to grow.
The sentiment comes as SMB confidence in the Australian economy drops 5% quarter on quarter.
Want to reduce your HR costs?
As business conditions get more difficult now may be a good time to review your people to ensure you have a productive workforce.
It is also a good time to review your HR costs and ensure you are hiring, paying, managing and exiting workers lawfully.
Need to reduce your workforce lawfully?
Better HR receives many enquiries regarding redundancies for reasons including downturn in business, technological advancements in the workplace and or operational changes. However, businesses should always consider redundancy as the last option.
Options before making a position redundant
Businesses should always investigate the following:
- reducing overtime costs;
- placing restrictions on any recruitment;
- retraining effected staff;
- redesigning jobs;
- cutting operational costs and;
- encouraging and making staff take any excessive leave.
As the statistics show the economy is slowing down, meaning many SMB’s are now experiencing a downturn in business. If your business needs help with developing strategies to minimize exposure or be in compliance to lawfully reduce your workforce, then please call Better HR.
Better HR Can Help!
Our HR software and advice service provides the essential HR tools and employment law advice that every business need to hire, pay, manage and exit workers lawfully. Delivered via an affordable annual subscription to save you time and money.
Our HR Consulting Team can also help you manage tricky HR situations such as reducing your workforce lawfully and fighting unfair dismissal claims.