Will you remain afloat?

Australian unemployment rises to 4-year high

SYDNEY, March 12 — Unemployment in Australia rose to its highest level in nearly four years, official figures showed today, in yet another sign of the global economic downturn.
The Australian Bureau of Statistics said the unemployment rate was 5.2 per cent in February, up from 4.8 per cent the previous month. Total employment rose by just 1,800 to 10.8 million, but full-time employment decreased by 53,800. Part-time employment was up 55,600.
Economists had forecast that the jobless rate would rise to 5 per cent and that total employment would fall by around 20,000.
The global downturn that began to bite last year has brought about a swift reversal of fortunes for Australia's economy, which has enjoyed 17 consecutive years of growth fuelled by voracious demand from China and elsewhere for its mineral exports.
Although Australia is not yet officially in a recession, figures released last week indicate it could be headed that way. Australia's economy shrank 0.5 per cent in the last quarter of 2008 — the economy's first contraction in eight years. Australia considers its economy in recession if it experiences two consecutive quarters of contraction.
The bad news came despite the efforts of the federal government and the Reserve Bank of Australia to bolster the economy. The government passed two multibillion dollar stimulus packages in the last few months, and the central bank cut its key interest rate by 3 percentage points from September to December last year.
"Any job loss in Australia is one too many as far as I'm concerned, but had we waited and done nothing instead of acting decisively, these unemployment figures would be much worse," Prime Minister Kevin Rudd told reporters in Canberra today.
Prospects for employment remain gloomy, with the federal government predicting a jobless rate of 5.5 per cent by June, and 7 per cent by the same time next year.
The latest figures showed states most associated with mining and manufacturing were hit the hardest, with Western Australia experiencing the biggest jump in unemployment, surging to 4.2 per cent in February from 3.3 per cent in the previous. — AP

How can you protect your business?

Many businesses will call in a coach at this time to help with their redundancy packages. This may be necessary, but why not consult with your coach as to other strategies you can adopt? Make use of your coach at this time – not just to rationalise if that is absolutely necessary - but to give you a fresh prospective on the business. A different energy could really lift the mood. Talk to your key stakeholders and work on plans to maintain an efficient practice and a strategic way forward. Concentrate on motivating your staff and maintaining strong leadership.

Efficiency and good strategy do not equal cutting lots of staff. Maybe it’s time to retrain certain members. Unlock the potential within them and you could be surprised where it goes! Ask them how they are travelling. Most staff would prefer to have a couple of hours shaved off their time rather than to lose their jobs altogether. Remember that you need to plan for the recovery – which will come sooner than you think. And if you do have to retrench workers, reassure those who are left that they are valued and important to the success of the business.

Some managers may be able to suspend rostered days off. Explain to your staff that it is only a temporary measure to ride through the bumpy times. Flexibility is what you are after from your staff and for the business.

A wage freeze may even be necessary, but it will be received in a positive light if you have prepared the ground work first. Make sure your staff know about it in advance through verbal communication and through written documentation. Depending on the size of the business it might be worth putting together a short presentation followed by an informal chat over tea and coffee.

Your qualities as a leader will really be called into question at this time. Adopt a strong stance. Your staff will take their cues from you. If your body language is down-beat and anxious, they will respond in a like manner. You don’t need to be a Pollyanna* but you can emphasise what has worked in the past and what will continue to work. Keep talking to your staff. Clear communication will prevent misunderstandings and do away with fears founded on rumour.

And don’t assume that your business is about to hit a downward spiral. Have a look at what you are doing right. Refer back to your KPIs (Key Performance Indicators) and targets. If you have been realistic and you can stick to your bench marks, you will be well prepared for what is to come. Ensure that your staff know they are achieving their targets and that they are valued, particularly if the organisation is affected by factors beyond their control.

Remember the well known words from Kipling’s poem ‘If’:

“If you can keep your head when all about you
Are losing theirs and blaming it on you;
..........
Yours is the Earth and everything that's in it,”

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