How flexible work practices lightened impact of financial downturn

How flexible work practices lightened impact of financial downturn How flexible work practices lightened impact of financial downturnPosted October 13, 2011, by Louisa VeidelisAustralian employment policy initiatives have helped to minimise job losses during the global financial crisis, as outlined in a report on global labour markets by the International Labour Organisation (ILO).How Australia avoided the recessionAustralia may be the only country in the developed world to have escaped recession. This resulted from a combination of strong fiscal stimuli and the recovery in commodity exports.Australias stimulus package focused on five key areas social assistance for targeted groups, supporting consumption through support for homebuyers, infrastructure spending, skills, training and job-search assistance, and the Fair Work Act of 2009.It has been estimated that without the implementation of these measures, growth would have contracted by 1.3 per cent between 2008 and 2009. Instead, th e fiscal stimuli helped to support household spending and public consumption, which in turn helped to stimulate growth.Flexible arrangements save jobsAustralias relative economic resilience was not due entirely to fiscal stimuli, however. According to the ILOs World of Work Report 2009, Australias combination of a swift economic response, targeted labour market programs and adaptable employment practices by industry helped to support employment and minimise job losses. During the financial downturn many Australian businesses adopted changes in working arrangements, such as reduced hours and job sharing, to ensure that job losses were kept to a minimum. Jason Clare, Parliamentary Secretary for Employment, commented on the key role that businesses played in minimising the damage. Business also deserves a lot of credit for their actions during the downturn. Many have gone to great lengths to keep their staff on, moving staff to flexible working arrangements like part-time work, he said in a speech in October. A good example of this is Broens Industries. Broens is a high-tech engineering company based in Ingleburn in wildwestfilm Sydney. They have revenue of about $25 mio and employ about 200 staff. I caught up with the Managing Director of Broens, Carlos Broen, a couple of months ago. He told me that in response to the global recession he was faced with the choice of reducing staff, or reducing their hours of work. He chose the latter, and has been able to keep his entire workforce on working four days a week, said Clare.The future of Australias workforceHowever, while Australia has emerged from the GFC relatively unscathed in comparison to most other countries, the ILO report warns that premature withdrawal of public stimulus initiatives could lead to a slowdown in growth and loss of 100 000 jobs. Businesses cannot afford to revert too readily to their old ways. Australian Chamber of Commerce and Industry Chief Executive Peter Anderson says The ILO repo rt is a timely reminder of the critical role Australian business has played, in conjunction with policies of past and present Australian governments, in building a strong labour market and contributing to the wellbeing of our society through employment, even in the midst of a global recession. Although Australias unemployment tarif stacks up well compared to other industrialised nations, the report suggests there is no room for complacency given our economic strength is underpinned by factors not fully within our control, such as strong external demand for commodities and increased domestic consumption that was aided by largely expended public stimulus, says Anderson. Certainly organisations which have demonstrated flexibility and innovation during the downturn will reap the rewards, with their teams largely intact. But now more than ever, it is vital for businesses to continue to develop effective workforce strategies to ensure a thriving workforce. ResourcesMy first resumeCover letter for my first jobCareer Insider StoriesShelley Lask - Body Positive Health & FitnessInterested in becoming a?Human Resources OfficerGeneral ManagerBusiness ManagerAccountantOffice Administrator CoursesBachelor of Social WorkEnquire Online Enquire OnlineCertificate III in Health AdministrationEnquire Online Enquire OnlineBachelor of Criminal JusticeEnquire Online Enquire OnlineCertificate III in Allied Health AssistanceEnquire Online Enquire OnlineLouisa VeidelisRelated ArticlesBrowse moreWORKFORCE TRENDSGrass looks greener to one third of Australian workersOne third of Australian workers are planning to change jobs, according to a recent Hay Group survey.Career progressionPay/SalaryHow to make a million dollarsEver wondered whether your university degree or postgraduate study was worth the money? Marni looks at whether further study offers a good return on investment.Real EstateHammer time Considering a career in real estateIf you have a winning way with people and are a skil led negotiator, the real estate industry could be your ticket to a dynamic and lucrative career.