Top Human Resources Challenges for Business in 2020
There is lots of new things and challenges coming at every business in terms of effective HR and people in business. However, the top HR challenge for the year ahead will be wages, and transparency of staff entitlements.
Pay reporting and transparency is increasingly of importance in business – internally and externally. Internally its important that employees are free to ask questions about their own pay levels and that they understand the level of pay and how the level of pay was determined – the how’s and why’s. It must be a rational and objective argument.
From an external viewpoint it is essential that employers in business recognise and understand that the Fair Work Ombudsman can review the salary levels and entitlements for the staff in your business at ANY TIME! Any staff member can make an enquiry, and this may result in an audit of staff entitlements and rates of pay. At all times, your staff members’ entitlements must meet the minimum requirements for hourly rates AND other entitlements and conditions in the relevant Modern Award.
To ensure compliance to the relevant Modern Award is a minimum requirement for all employers and lack of compliance can lead to:
Reimbursement of wages
Poor media and damaged reputation
Disgruntled staff and negative consequences (i.e. low retention rates)
Difficulty in hiring new quality staff into the future
Charges made against the business
Future on-going monitoring of the business by the Fair Work Ombudsman.
To avoid this scenario, its recommended to audit you’re the staff entitlements annually and connect this to performance reviews. Manager need to be aware of the conditions in Modern Awards and other phenomena such as gender pay equity, performance review how’s and why’s, and banding of salary levels.
Handling salaries and staff entitlements with openness, honesty and transparency is now a given requirement for all businesses. Your staff will vote with their feet if this area of small business responsibility is not conducted with prudence.
A HR Consultant is best position to conduct a wage review as they an external, professional and objective party. Feel free to contact me anytime to discuss your business HR needs.