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e-news | June 15th, 2010 |
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Business NewsEmployment numbers strengthening with growth in full-time jobsThe number of Australians employed rose by a robust 26,900 in May strengthening a trend of jobs gains with a solid 36,400 increase in full-time jobs, partially offset by a decline in part-time positions. The higher number of people in full-time employment result in a 2.9 per cent rise in hours worked during the month. Employment had now grown by 284,000 since August, with the number of employees exceeding 11 million. Unemployment has dropped from 5.8 per cent since August, and would have fallen further if not for a rapidly growing population leading to more people looking for work. Growth has been strongest in the while collar professional, scientific and technical sector, followed by administration, wholesale, education and hotels. Leading indicators of the labour market are pointing to further growth in coming months. Job advertisements on the internet rose by five per cent last month, while skilled vacancies were up by 4.4 per cent. Surveys of business showed hiring intentions remained healthy even as overall confidence slipped in the face of higher interest rates and global market volatility. Business confidence falling at a record rateDespite the recent growth in employment number, Australia has experienced a record fall in business confidence during the quarter, surpassing the declines experienced during the height of the Global Financial Crisis, according to the widely respected, Sensis Business Index. The quarterly survey provides a snapshot of small and medium enterprise business activity in Australia and is based on a sample size of approximately 1,800 businesses in metropolitan and regional areas. Report author, Ms Christena Singh, said business confidence had plummeted on the back of soft demand, low profitability and weakening economic conditions. “The substantial fall in business confidence this quarter has negated the healthy results we had been seeing during the last half of 2009. We now have more businesses worried about their prospects than we had this time last year.” The report shows businesses are also expecting trading and economic conditions to deteriorate further during the next 12 months. Sales fell strongly during the quarter and the indicator is now trending near the low levels experienced 12 months ago and profitability also declined sharply, although remains stronger than it was 12 months ago. In tandem with the decline in business confidence, consumer confidence fell sharply in June by with concerns about budget and tax issues dominating according to the Westpac - Melbourne Institute survey. My Business: Winning loyal customersIt is generally accepted in marketing circles that it costs three to five times more to get a new customer than it does to retain an existing customer. So businesses should take every action that they can to retain and look after existing customers. In this month’s My Business magazine Neil Joseph of customer reward program business, Endless Rewards, outlines some strategies for keeping your customers coming back and making sure they spend more when they do. One of the strategies that you should consider using to keep customers coming back is to offer them a reward instead of a discount. The reward needs to be meaningful so that the customer has value in their hands and entices the customer to return to make a further purchase using this reward as an incentive. Before making a change in your marketing strategy and methods of enticing customers to your business you should have a system to measure what value the customers that make up your control group are contributing to your business. Usually the easiest item to measure is the total sales generated individually, or by a group of customers. By having a control group, you will be able to measure the increase (or decrease) in their total purchases after the changes in your marketing methods have been implemented. Third of NSW businesses unaware of the Fair Work ActAs many as one in every three small businesses in NSW are unaware of the details of the Fair Work Act that was passed by the Federal Parliament last year, based on a survey conducted last month commissioned by the NSW Business Chamber. More than 400 NSW businesses with up to 50 employees were surveyed and as many as 10 per cent believed they are still not compliant with the obligations of the legislation. Stephen Cartwright, Chief Executive Officer, NSW Business Chamber commented that “The Fair Work Act was introduced in July 2009 and employers are taking huge risks by not doing their due diligence, understanding their obligations and making the required changes. They should seek advice on this complex issue and ensure they are compliant.” The introduction of the Fair Work Act resulted in hundreds of federal and state industrial awards being consolidated into 122 modern awards. Modern awards came into effect from 1 January 2010, with most having transitional arrangements which allow the phasing in of wages, penalties, and loadings from July 2010 until mid 2014. The NSW Business Chamber recently launched a dedicated web site www.irmadeeasy.com.au that provides useful resources such as an online assessment so businesses can check their level of compliance and understanding, and find out what they need to do to meet their obligations under the Fair Work system. Taxpayers association attacks changes to the taxing of trustsThe Australian Taxation Office “has driven a stake into the heart of small and medium sized businesses” with the release of a new tax ruling TR 2010/3 relating to the taxing of trust structures, according to Roger Timms, Head of Tax & Superannuation at Taxpayers Australia. The ruling, which has elements of retrospectivity, states that where a company beneficiary becomes presently entitled to a share of trust income, that entitlement will typically be considered to be a loan. Taxpayers Australia says that this “will have disastrous consequences for the sector.” Timms said that “hundreds of thousands of business and investment activities are conducted through trust structures and this decision will unfairly add millions of dollars to their tax liabilities according to Taxpayers Australia. He said that the views expressed in the ruling also represent a total 'backflip' by the Commissioner of Taxation as the Tax Office treatment of trust distributions to company beneficiaries was well established and consistently confirmed by senior Tax Office personnel. Taxpayers who relied on those public comments can be justifiably aggrieved by the change in approach. Franchising Code changes to require greater disclosureChanges to the Franchising Code are now before Parliament aimed at improving the disclosure that is given the franchisees and prospective franchisees. One of the objectives of the legislation is to deal with a particular area of tension within the franchise agreements, that is, how to handle the ending of the term of the franchise agreements. The new legislation, which will take effect as from 1st July, will require franchisors to provide their franchisees with six months notice of their decision to either renew or not renew the franchise agreement. The Minister for Small Business, Craig Emerson, said that franchisees will have more protection and greater certainty in their dealings with franchisors under the amendments to the Franchising Code of Conduct. Dr Emerson said the amendments meant that franchisors are now required to disclose more information that franchisees need to make decisions about their businesses. He said that “Franchisors will be required to disclose to prospective franchisees more information on unilateral contract variations or confidentiality obligations,” he said. Dr Emerson said that in addition to these amendments, the ACCC has been given new powers to conduct random audits of franchisors. These audits will focus on ensuring franchisors comply with the law. Further details are available at: www.comlaw.gov.au My Business: Golden rules for employee performance feedbackHR expert Sheralyn Guy explains in the June issue of My Business that if handled well and in a timely manner, feedback given on employee performance can be a powerful tool for motivating your employees to greater achievement, smoothing out your management systems and improving your bottom line. She says that many managers “would rather have root canal surgery than provide feedback to their employees – especially if the feedback might be taken as being critical of the person”. But you need to feel the fear and do it anyway. The outcome will certainly be more positive than leaving a problem to fester, especially if your feedback is delivered delicately and in a positive framework. To have high performing employees you have to make sure they know exactly what your expectations are, what they are doing right and where they can improve. Guy says that when providing feedback to an employee, be thoughtful and considerate of their feelings. Find a location for the conversation that is private and non-threatening. Choose a good time of the day – a quiet moment, not when they are in the middle of a deadline, or just about to go home. Be calm and stay focused on giving feedback on the behaviour you want changed, not the person. Don't miss out on entering the 2010 ActionCOACH My Business AwardsThe team at My Business magazine invites you to enter the 2010 ActionCOACH My Business Awards. You can be in the running to have your business recognised for achieving excellence in your field. There are a total of 10 categories in this year’s Awards, plus the overall ActionCOACH Award for Outstanding Excellence. The Winner from each category is automatically entered into this Award.
Entry is free, quick and easy, yet the returns could be enormous for your business and your staff. Each Category winner receives $5000 worth of products and/or services, tailored to suit their business needs from the Category Sponsor. You are invited to enter the Awards up until Friday 20th August 2010. Enter online at www.mybusiness.com.au/awards10 or post your submission according to the entry guidelines. Our past Award finalists and winners have benefited from the resulting publicity and exposure through My Business magazine, and sponsor networks. With the numerous leveraging opportunities involved in such a credible Awards program, why would you not want to be in it? Also, each category’s three finalists will receive one free ticket to attend the Gala Awards presentation ceremony on Friday 24th September 2010 at The Ivy Room, Sydney. It will be a fabulous night of fun, food and entertainment, compared by James O'Loghlin, host of “The New Inventors” on ABC TV, as we celebrate the best of the best. New free franchising education programA free online education program, funded by the Australian Competition and Consumer Commission, will help prospective franchisees make an informed decision when considering the purchase of a franchise. The program, to be administered by Griffith University's Asia-Pacific Centre for Franchising Excellence, consists of five modules and will commence in July. ACCC deputy chair Michael Schaper said the pre-entry education program will be available nationally and cater to all levels of understanding. Dr Schaper said that "The program will be a one-stop shop, providing potential franchisees with a better understanding of their rights and obligations under the Franchising Code, and some of the practical issues they could face as a franchisee." " The need for earlier and better information was underscored by recent research from Griffith University, which revealed that 49 per cent of the franchisees surveyed relied heavily on their 'gut feeling' when deciding to go into franchising," Dr Schaper said. Prospective franchisees will learn about franchise-specific issues, including franchise fees, royalties, operations manuals, marketing funds and site selection, as well as general business concepts such as cash flow and working capital. Leasing arrangements and dispute resolution will also be covered. For more information about the program, visit http://www.franchise.edu.au/pre-entryfranchise-education.html For information about the Franchising Code of Conduct, visit the ACCC's franchising webpage: www.accc.gov.au/franchisingcode Indigenous business to get a boost in VictoriaThe Victorian Employers Chamber of Commerce and Industry (VECCI) has welcomed the Victorian Government’s announcement that it will spend $33.7 million over four years to foster indigenous business development and tourism. VECCI CEO, Wayne Kayler-Thomson said that “Strong economies build strong communities, and VECCI welcomes this investment to encourage the growth of aboriginal businesses and greater opportunity among the wider indigenous community in Victoria.” . VECCI said that it supports key initiatives surrounding business support and advice, including mobile business advisors, accredited business training, and for the new Victorian Aboriginal Chamber of Commerce – Kinaway. Kinaway is the first state-based Aboriginal chamber of commerce to be established in Australia. As part of the VECCI, it will provide stronger links and collaboration between Aboriginal businesses, as well as the broader benefits of association. To register your interest in Kinaway please email kinaway@vecci.org.au. Workplace safety goes socialWorkCover NSW There is a new space for businesses to get social to stay safe, with the recent launch of the Work safe.Home safe fan page on the popular social networking site, Facebook. An initiative of WorkCover NSW, Work safe. Home safe gives employers, workers, and their families, a place to share their ideas and reasons for staying safe at work. And with contributions from work health and safety regulators across the country, it also offers trusted information and advice. WorkCover is now inviting all employers and workers to become a fan of Work safe. Home safe. on Facebook, and join the growing community sharing their work safety thoughts, experiences and information. It says that the Work safe. Home safe site is “lively and interactive, with regular discussions, safety videos, news stories, surveys and links to relevant work health and safety information.” To become a fan you will need a Facebook account then simply visit www.facebook.com/worksafe.homesafe and click on fan ‘button’. TCF businesses can apply for grantsAustralia’s Textile, Clothing and Footwear (TCF) businesses can now apply for matching grants starting from $250,000 to fund projects boosting the international competitiveness of their industry. Innovation Minister Kim Carr has called for applications in the first round of the Rudd Government’s $35 million Textile, Clothing and Footwear Strategic Capability Program. The program, which includes an extra $5 million announced in this year’s Budget, supports large projects that build innovative capability at the enterprise and workplace level. “This program will assist our visionary TCF businesses to strengthen their competitiveness and sustainability,” Senator Carr said. “It provides yet another avenue for the sector to foster crucial innovation and create jobs. Assistance will be available for projects targeting innovation, collaboration, market access, business improvement, skills development, environmental sustainability and ethical practices. Consortiums led by TCF businesses or TCF industry bodies are also encouraged to apply. Consortium membership may be quite diverse, including supply chain businesses, retail businesses, educational institutions and others. Applications close on 6 August 2010. Information sessions and workshops will be announced shortly. Further information is available from the AusIndustry hotline on 13 28 46, by emailing hotline@ausindustry.gov.au and at www.ausindustry.gov.au. Wages are heading higher in small businessesDespite the economic downturn, around three quarters of small companies paid their staff an average increase of 4.3 per cent according to the Australian Institute of Management’s (AIM) recently released National Salary Survey 2010 of small companies. While this increase is lower than the 4.6 per cent reported last year, it is still significantly higher than the 3.7 per cent average increases recorded for large companies for the same period. However, the survey also found thata much larger proportion of small companies reported a decrease in permanent staff levels in the past 12 months - up almost 10 percent to 31.5 per cent. The survey also revealed signs of further negative fallout from the global economic downturn, with 31.5 per cent of small companies reporting a decrease in permanent staff numbers in the past year (up from 21.6 per cent of small companies in the previous year’s survey). Looking ahead, the survey points to a more positive turnaround in staff employment and earnings prospects. Most small companies (92.9 per cent) expect to review salaries, for at least some employees, within the next 12 months. In addition, almost half (46.8 per cent) expect permanent staff numbers to increase, while only 9.0 per cent expect a decrease in permanent staff levels - down significantly from the 16.2 per cent of small companies that forecast a decrease in permanent staff numbers in the previous year’s survey. AdvertisementsManaging paper for improved customer serviceBy Vicki Rigg - Channel Sales Manager Asia Pacific Nuance Communications, Australia Serving customers is priority one for today’s businesses. When customers or colleagues call with a question or issue, you need to have the right information at your fingertips. You can’t afford to waste time searching through stacks of paper or trying to remember where you saved a file. But information and documents are typically scattered in multiple locations - some in file cabinets, others on PC hard drives, and still others in network repositories. If only there was a way to organize all your paper documents and electronic files in one place so you could view, search, assemble, and share them quickly, easily and securely. The Solution is PaperPort Professional 12 which empowers you to take office organization to a whole new level. It’s the most productive way for everyone in your company to scan, organize, find, and share scanned paper. Working with Microsoft Windows, PaperPort Professional makes it simple to scan or convert documents of every kind into accurate, searchable industry-standard PDFs. It lets you visually organize and manage documents from one convenient place on your desktop. You can find information instantly using industry-standard search engines. Assemble large custom PDF documents with ease. Even share and annotate documents securely for improved collaboration. PaperPort Professional 12 ends your costly and wasteful reliance on printing, copying, faxing and mailing. Increase productivity, reduce costs and improve customer service for bottom-line results —all at a price that’s affordable for every desktop. Are you getting competitive wholesale exchange rates for your business?XYLO Foreign Exchange helps to put businesses in control of their foreign currency transactions. There’s no software to install which means you can access XYLO Foreign Exchange anywhere the internet is available. XYLO’s up-to-the-minute internet security and international money transfer technology, provided by Westpac Banking Corporation, ensures you can make and receive foreign exchange payments with complete peace of mind. Using an online lower cost provider means less overheads and greater rates for you. It also means that you will save on transaction fees as our low standard payment fee is only $5. You will be amazed at how this can help save your business time and money. You don’t need to have a banking relationship with Westpac to use XYLO Foreign Exchange, as it operates on a direct debit facility, providing you with the flexibility of an FX specialist, plus competitive wholesale exchange rates for your business. Simply visit XYLO Foreign Exchange at www.xylo.com.au or call us on 1300 995 639 XYLO Foreign Exchange is a division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714. Available to businesses with an Australian dollar denominated bank account. This information has been prepared without taking account of your objectives, financial situation or needs and so you should consider its appropriateness having regard to those things. You should consider XYLO’s Combined Financial Services Guide and Product Disclosure Statement available at XYLO.com.au or by calling 1300 995 639 before deciding whether XYLO Foreign Exchange is appropriate for you. | |||
