15 February 2006
Small businesses are more worried about attracting the right staff than they are about firing staff, a Monash University researcher has found.
Associate Professor Rowena Barrett, Director of Monash's Family and Small Business Research Unit, found the key employment concerns for small business were finding the right staff, finding skilled staff and the ability to retain good staff, in a study commissioned by Certified Practising Accountants Australia.
More than 400 Victorian small businesses -- those with less than 20 employees -- participated in the research, which was aimed at understanding the human resource management practices used by small businesses.
Dr Barrett said small businesses did not take a proactive approach to managing staff.
"The changes to the industrial relations laws will force many small businesses to reconsider their human resource management practices," she said.
"Those that do not may fall behind and become unattractive places to work.
"Under the new legislation, small businesses that have traditionally relied on the industrial award system for employment terms and conditions, may benefit from developing employment agreements to help their business grow.
Dr Barrett said many small business employers recruited using unimaginative, informal and ad hoc methods, such as word-of-mouth or newspaper advertisements.
"These methods are easy to use and convenient, but not always effective in reaching a larger pool of suitable recruits," she said.
Small businesses with more formal human resource management practices were more likely to have had increased sales growth and employment during the previous 12 months, she said.
For further information contact Dr Barrett on +61 3 9902 6619 or Ms Natasha Whalley, Media Communications, on +61 3 9905 9201 or 0437 458 457.
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