What’s Keeping Business Owners Up At Night?
Nicole Sisinni • August 28, 2024
Is retaining your intellectual capital just as important as retaining your financial capital? Could it hit your bottom line just as hard?
After speaking with business owners, the common theme beyond the obvious financial concern is retaining their staff when this is all over. After a recent survey of our 65,000 local candidates, there is reason for concern.
We know that replacing an employee could cost between 50% to 150% of their annual salary.
It is paramount to keep the business afloat financially but what happens when business is back to normal or best-case ramps up and you haven’t managed to keep your workforce afloat?
Here’s what we found;
- 75% of employees will be looking for another opportunity once this is all over
- 25% of employees feel poorly managed by their leadership teams through Covid-19
- 32% of employees said their employer has handled the Covid-19 response as average
In total 57% of us feel our employers have been average or poor while handling Covid-19.
Sure, stress levels have spiked and we understand these are unusual circumstances. All this being said, it doesn’t change the result or the flow on impact for your business.
I should note that 15% responded with “excellent” and 28% said “good.” Congratulations to those employers.
Are you comfortable with which employer you fall under?
This data has certainly made me consider what our Western Sydney job market might look like after all of this. I imagine, 2021 will have some major new year’s resolutions acted out. There certainly is plenty of reflection time for employees.
How do you think the recovery phase will go without your best staff on hand?
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It’s definitely a funny old market. On one hand I’ve got a friend with a sizeable retail business telling me his last ad for casual workers attracted over 900 responses and then I’ve seen people come to us after having chronically unfilled job vacancies in their business costing them an absolute fortune in lost customers and reputation. Granted the casual workers aren’t the skilled labour market we work in but I’m not sure anyone could have guessed this shifting job market 6 months ago. Seek are quoting job ad numbers are highest since the Covid-19 pandemic and we’re definitely feeling it at Norwest Recruitment. Not all companies are thriving of course and my heart goes out to those but many are and recruitment plans for our clients in Western Sydney are pedal to the metal. So that means that skilled job seekers have choice. Not only are they a little gun shy at leaving the company that kept them through the tough times of Covid but they now have plenty of options. Their counterparts who were let go when Covid hit will also be wanting to make it into your shortlist. It’s going to take some due diligence to work out which one you want in your business. We all know the cost of a bad recruitment hire. One hiring mistake I’ve seen a few times in the last month may be because some hiring managers aren’t aware of the changed market conditions and are feeling over confident. Maybe they think there’s 900 skilled professionals applying for every job. Four times this month I’ve heard of offers to candidates being less than the salary they were represented at. What??? One thing I’ve learned in life – don’t mess with people’s salaries. It’s very personal and it’s often attached to their status and ego. We all live to our salary capacity. There usually isn’t any wriggle room to drop. Don’t mess with it. This is what happens next. You will not get another bite at that cherry. Don’t think for a minute you’ll be able to come up to meet their salary expectation once they’ve rejected your low-ball offer. It’s over. Very rarely have I seen job seekers accept the reduced salary offer. It’s a risky move. If they’re talking to another company you’ve lost them. Sometimes I’ve seen them decline and then accept the second higher offer. Sometimes. But here’s how that scenario plays out. It’s can be even worse than the jobseeker declining. They accept it. They accept it with a bad taste in their mouth and then keep their eye on the market and feelers out with recruitment agencies. As soon as a Recruiter represents another role to them they’re gone – two months into starting in the new job. It’s disruptive, costly and time consuming. Back to square one for you. So, recruitment 101 tip. Unless the job seeker doesn’t meet the job criteria and hasn’t got the right experience do not think this is a good time to save money. Don’t risk the best person in your shortlist going to your competitor. Here’s to attracting and retaining the very best people in 2021. Written by Erica Westbury, Managing Director of Norwest Recruitment.
We are so proud of our Managing Director Erica Westbury who was acknowledged this month by Ross Clennett a leading industry commentator and influencer as one of 24 Outstanding Women In Our Industry You Should Know About. Click here to read more
I recently met up with Nayyar Ghaznavi, CIO for Rexel Australia, and asked him about his experience during the Covid19 crisis as it unfolded. The Rexel Group is Headquartered in Paris with around 28,000 staff globally, including around 1000 staff in Australia. I’m sure in your position every day is different, but could you please take your mind back to February 2020. Can you tell me as the CIO at Rexel, what was top of mind for you? [Nayyar Ghaznavi] Actually, in January there was already some apprehension about the impact of Covid19 based on what we were seeing particularly in Europe and North America. I was in Canada at the time for a conference and there was a lot of discussion within the team in Toronto about the impact Covid19 may have on all countries and what we could as IT Leaders to get ahead of the potential curve to support our business. Around February, we as an executive team started to plan how we would respond to the rising tide of the pandemic. We knew there were going to be effects to our staff, our supply chain and the business as a whole. We knew we had to have plans in place in case it spread the way it did in the US and Europe and be as prepared as possible to meet the challenge this would pose. From early March, the Executive Team was meeting daily, which really helped as the Government guidance was changing so fast and we kept adapting to those changes. Top of mind was “How do we ensure the health of our staff, our customers and our business?” What projects were you working on and did you have goals you were looking to achieve in your team for 2020? [Nayyar Ghaznavi] Our major deliverable was a new eCommerce platform which we believe is the best in the industry with its rich content and features and functions. We have seen a great boost in online sales as a result of the new platform which continues to grow month by month. We also had a few projects related to optimising our business, especially around back-office services that have reduced our cost to serve [customers]. At what point do you think you realised Covid-19 was going to impact Rexel and did you realise it was going to hit as badly as it did? Why? [Nayyar Ghaznavi]. The Executive team have been focused on the health of our staff, customers and the health of our business, which was driving our key decisions under COVID-19. The plans we put in place buffered to some degree the impact of COVID-19 on the business, relative to the impact on the general economy. I was having monthly meetings with our global CIO and kept him updated with messages in between those formal sessions on how we are ‘mobilising’ our staff to WFH. How did it impact Rexel? What did it mean to your staff and products and services? [Nayyar Ghaznavi] I’m really proud that as a business we haven’t had to make anyone redundant as a result of Covid19. There were impacts, the staff (including the Executive Team) were asked to reduce their working days per week for the long term health of the business. Our MD made sure there was very clear, regular and transparent communication throughout to all staff. Front line staff, generally speaking, were still onsite as all our branches nationally still need to service the customer who walks through the door. We did see an increase in online sales as a result of COVID-19, but would expect all companies saw this as a result of the changes in the way customers interacted with their suppliers. We had Click & Collect from our branches, appropriate social distancing and sanitisation, all of that came into play.
Everyone’s talking about “New Collar” jobs and so they should. With the Australian unemployment rate the worst it’s been since 1994 it’s good to see there are hot pockets of positions that are understaffed and skilled people are still highly sought after. The differentiator between traditional “white collar” and “new collar” jobs is they generally don’t need a degree but are highly specialised and need specific skills. But it’s not just technical skill; the most sought after people are the ones that have developed the technical as well as the soft skills and they’ve often developed them through non traditional educational pathways. The term new collar was originated by IBM’s CEO Ginni Rometty. Typically new collar roles are found in the technology space but can also be in mortgage and the health industry too. Listed below are some of the roles currently in high demand. Anything in AI Applications Developer Systems Administrator Data Centre Technician Software Engineer Project Manager Technical Support Representative Security Analyst Computer Support Specialist Web Developer .NET Developer Field Service Engineer Physical Therapy Assistant Medical Assistant Cable Installation Technician Cyber Security or Privacy Specialists In manufacturing – anyone in Robotics Service Delivery Analyst Pharmacy Technicians Ultra Sound Technicians These careers should have an ongoing need because companies of all kinds are increasingly reliant on online tools and data. The skills and keywords that appear most frequently include JavaScript, HTML, “troubleshooting” and “customer service” in ads for these roles. This is important to note because skills, not education level are what define these careers. We’ve had so much bad press around youth unemployment during Covid and for years our young people have been encouraged into university pathways. It’s nice to see skillset, work ethic and work experience rather than formal education defining these high growth careers. At the end of the day, that’s what makes someone hirable: being able to produce high-quality product. Written by Erica Westbury Managing Director at Norwest Recruitment & Southwest Recruitment.
What Western Sydney’s largest employer is doing to help our region’s economy… As Western Sydney University is the largest employer in our region responsible for 5,000 jobs, it was positive news to hear they haven’t had to let anyone go through Covid-19. They are in overdrive working on schemes and solutions to ensure they can continue to retain all their staff. I was fortunate enough to have some time with the Director of Employability and Graduate Success at Western Sydney University, Christopher Youness who shared some of the brilliant initiatives facilitating introductions between graduates and Employers – most of which are Western Sydney based businesses. Some initiatives include the Western Sydney University CareerHub job board and the Job Match tool that connects Australia’s leading employers to students and graduates. 70% of 5,000 jobs advertised are in the Western Sydney region. Another industry focused engagement strategy is the Western Paddl Games event series, that provides learning and networking platforms for students and grads with industry leaders and future employers in our region. We all know how important it is to attract the best talent for companies to flourish. Keeping our best grads employed in companies in Western Sydney will have a direct impact on the success of those businesses and our region. Christopher Youness says, ‘Western Sydney University is showcasing the region for what it is – the 3rd largest economy in Australia, a powerhouse in development and growth. It’s important for us to keep our emerging talent in Western Sydney, as well as attracting employees from other parts of NSW to our region’. “A key driver for creating jobs is to up-skill and educate the region for the future by providing incentives for people to choose education and training pathways that ensure they are readily employable in key growth industries.” said Danny Rezek , Partner, Deloitte Private. WSU is a key stakeholder in shaping Western Sydney’s future and not just as our region’s largest employer. Recent announcements for University fees to be overhauled to encourage degrees into job growth areas will in turn increase graduates employability. Education Minister Dan Tehan says, ‘the changes will incentivise study for the jobs of the future.’ ‘We are facing the biggest employment challenge since the Great Depression,’ Mr Tehan said. “And the biggest impact will be felt by young Australians. They are relying on us to give them the opportunity to succeed in the jobs of the future.’ Through COVID-19, Chris says, ‘we are helping students realise and adjust to the current climate and supporting students from hospitality retail and food into areas like disability care, nursing assistant and counselling fields.’ As part of WSU Covid recovery efforts, ‘we are helping students move into industries that are thriving but also addressing the support needed for industries in turmoil.’ Chris says. Through this health crisis their support was ready to go with the University fast tracking degrees for medical students to be deployed as medical interns. In addition, supporting Western Sydney hospitals with nursing students being deployed through their Nursing School of delivery. WSU is also offering a range of short courses , to assist people who may be out of work as a result of COVID-19 in acquiring new skills or retraining for new careers. Certainly a path we are referring job seekers to explore. As a Western Sydney advocate and WSU alumni myself, it was a privilege to have the opportunity to connect with Chris and showcase just how significant an impact the institution is having on Western Sydney’s future job creation. 2020 has surely raised questions around our thriving regions economy, but it’s clear we can rely on WSU to have some answers. Written by Nicole Sisinni Relationship Manager at Norwest Recruitment & Southwest Recruitment.
In speaking with my HR network, it’s apparent that this health crisis has forced the hand of many employers to roll out WFH arrangements which for some has been for so long resisted. It’s no surprise that forward thinking employers of choice have adopted these flexible work practices for some time now. Why has it taken a pandemic for us to benchmark them? This new normal will certainly require a shift in culture for the more traditional employers. Jan Jackson HR Professional says, ‘my challenge was to encourage business owners to manage differently – not to focus on when people were in the office or at their desks, rather to focus on what they were expected to deliver. Hopefully we will see more of that mind-shift in others. People had to make it work now and it seems to have delivered results. So, with better planning the outcome would be even better.’ Let’s look at how forced lockdown has helped shine a light on some of the benefits of a remote workforce. Less travel and expenses – more disposable income for employees and less overheads for employers Increased safety, removing the risks from travelling with a positive impact on the environment Less spread of Flu through the office in-turn less sick leave Increased productivity away from office distractions Widening the talent pool by opening job opportunities to regional candidates Technology being used to its full potential with automation driving business efficiency Increased engagement and connectivity globally Here’s what some of my HR network had to say; Juliane Scuteri – Coordinator Payroll & Talent Management at City of Canterbury Bankstown said, ‘WFH gives the ability to engage with talent remotely as you can work from anywhere in Australia and still be part of the team. I think it has opened the eyes in Local Government of moving to more automation and allowing employees to work remotely with better work-life balance, enabling staff members to live a healthier lifestyle with more flexibility to work around family.’ Sarah Taylor Employee Experience Specialist at Penrith City Council said, ‘I think flexibility will be front of mind for job seekers and employers. I think resilience and adaptability will be important skills that we will look for and continue to develop in our people, as well as independent decision making.’ Amanda Rice Talent Sourcing Manager APAC at James Hardie Building Products, ‘Businesses will be looking at skill gaps in their teams and upskilling their employees and investing in systems and software to drive automation and to drive self sufficiency on the other side of COVID-19. HR is driving engagement like they never have before looking at new ways with the use of tools such as Microsoft Teams, Zoom and Webex to assist with team cohesion and the feeling of togetherness across the business globally.’ ‘I believe the landscape of a traditional office will have changed forever. For many businesses, the excuse that you need to be in the office to get the job done has been completely eroded in the current environment. This will open up the location bases for where roles are sourced (country or even world wide rather than restricted to a certain city) and how teams interact into the future.’ Said Susannah Mclean HR Professional, Snowy Hydro Limited. HR professionals are certainly at the front line creating this new landscape and they all seem to be chanting the benefits. The practice of recruitment will change dramatically when we are looking at a remote workforce. This means our candidate pool widening across regions, less travel time opens up flexibility of working hours, removing travel costs from salary negotiations. With so many employers now on the WFH bandwagon, I wonder how companies that don’t follow the trend will compete for top talent? In particular if WFH becomes the expectation in the marketplace. I’m keen to see how this new workforce will look by 2021. We have entered new territory and what we thought were temporary adjustments now appear to be how we do business from now on. The term business as usual seems to be one of the casualties of Covid-19 and I’m jumping on team new normal. If this is being defined as a safer, happier, healthier, more efficient and productive workforce, perhaps this is what they call the silver lining. #wfh #newnorm #lovewhereyouwork #workfromanywhere
