20 May 2014
The official federal budget has now been released and many business owners are wondering how the changes will affect them.
In addition to increasing or reducing the amount of finance to which business owners have access, a number of factors within the budget may also begin to impact on recruitment across Australia.
Below is a snapshot of some of the most influential budget decisions in regards to small to medium enterprises (SMEs) and their impact on recruitment.
A more diverse workforce
HR managers will need to ensure their recruitment systems are inclusive and supportive of a more diverse labour force as budget cuts force more people back into the job seeking market.
In a move to address the rising unemployment rate among Australian youth, the government will enforce a six month wait to those aged under 30 before they become eligible for the dole. Additionally, the retirement age will rise to 70, which will mean more mature-age workers seeking work.
There is also expected to be a $500 million cut in support for various Indigenous programs, which may create more Indigenous job seekers in some areas.
With these changes expected to impact on the diversity of the Australian workforce, it is important that organisations have equal employment opportunity policies in place which cover recruitment and selection practices.
Increased cashflow may inspire expansion
The federal budget has also included a 1.5 per cent cut to the company tax rate. With company tax officially falling from 30 per cent to 28.5 per cent from 1 July next year, SME owners may find they have more money to reinvest in their own business growth.
With some increased cash flow, small business owners may start looking to expand into new markets or locations. This could lead to a rise in demand for skilled staff, boosting recruitment activity.
If your company is considering growing its labour force, you may want to consider talking with an HR professional about best practice recruitment solutions. iHR Australia offers HR consulting and training, including Selection and Interviewing Skills and anti-discrimination courses to ensure your business can attract and retain top level employees while remaining fair and compliant.
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