A senior Australian government advisor has claimed that Australian businesses are failing to pursue opportunities and hindering economic growth, with lacklustre managerial practices responsible.

In an effort to address weak points in the Australian economy, former Treasury chief and current head of the Department of the Prime Minister, Martin Parkinson has told the annual conference of the Committee for the Economic Development of Australia that business is ultimately responsible for its own productivity.

Drawing from the study, Dr. Parkinson said that while government would provide the conditions that assist businesses in becoming as profitable as possible, effective managerial practices were the biggest point from which business profits could be driven.

Australian business analysts have indicated that if Australian business practices could be improved to the level of the US, the productivity of Australian manufacturing would increase by about 8 percent.

A recent major international study of effective management practices in manufacturing has placed Australia in the “mid-range”.
Dr. Parkinson identified an openness to innovation as a key factor in improving Australian management practices.

“By and large our greatest gains have come from building a culture that adapts and diffuses the ideas of others,” he said.

An important means by which management can drive increased productivity lies in its willingness to embrace new ideas and approaches to its business model. Adopting a mindset to try new, improved practices and being willing to pivot from ‘the way it’s always been done’ can be key to this transformation.

Managers shouldn’t assume they will have the answers to every challenge their organisation faces, particularly when it comes to human resource management. Rather than shying away from external advice, openness to the ideas of others reflects good managerial practice, while opening your organisation’s doors to informed and expert managerial advice could be the key to breaking down long lingering obstacles to greater productivity.

By outsourcing components of your HR department, you can draw on informed specialists who can provide advice on the most effective approach to a range of issues, including:
• Wages/salaries
• Terminations/redundancies
• Training and coaching
• Unlawful harassment, discrimination and bullying
• Conflict resolution
• Contracts and award provisions
• Complaint handling
• Fair Work Act 2009
• Performance management
• Workplace behaviour
• Leave entitlements
• Facilitation of focus groups to encourage employee teams to implement changes that result from surveys.


iHR Australia provides a range of flexible HR solutions for organisations seeking to outsource specialist services or the full HR function. iHR Australia’s outsourced HR solutions cater for all sectors and organisations of varying size and maturity.

We work collaboratively with our clients, seeking to understand your organisation, its drivers, its culture and its objectives. We tailor our services according to your specific needs, particular environment and operating framework, and believe in delivering effective and sustainable solutions.

We offer a broad spectrum of strategic, operational and specialist support in a range of key areas:
• Starting your HR department
• Performance management
• HR consulting
• Independent workplace investigations
• Workplace Relations / Industrial Relations
• HR policies and procedures.

The benefits of HR outsourcing for your organisation can be significant, providing access to a broad range of skills and expertise to meet your specific needs. It can not only minimise your risk by helping to ensure compliance and good practice, but also increases employee engagement and satisfaction, while empowering and educating your workforce.

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