The term ‘business confidence’ has taken on a new meaning over the last couple of years, however for a lot of small and medium size businesses in New Zealand, there is still a big step between seeing an improving horizon and employing additional staff. Even with encouraging signs there are still too many barriers for businesses and this is hurting job prospects. The process needs to be freed up for the benefit of both employers and those in the job market.
Extending the 90 day trial period across the board has been a good start in giving both parties flexibility in ensuring compatibility. Where the unions are coming from on this change I do not understand as any opportunity to open the market up should be welcomed, and I am also of the view that both parties should share some of the risk.
Nervousness coming from pressure on the minimum wage does not help. There is not a New Zealander who would not like to see the minimum wage increased but it cannot be done to the detriment of general or youth unemployment; confidence has to rise first.
Lastly restructuring and performance management processes need to be clarified quickly. An employer can have the best of intentions and run a thorough process; however they can still end up with costly claims for minor flaws in process. Without the help (and additional cost) of external consultants most small to medium companies cannot carry out these procedures without high risk. Personal grievance grounds need to be tightened, and either clearly documented procedures and consultation periods need to be defined so that they are easy for the average person with good intentions to follow successfully, or the process needs to be less specific. Many companies have been burned in this area when they have worked to what they understand the requirements to be and this is a huge barrier in employing extra staff to meet projected future growth.
Let’s hope the reforms keep coming.
^DB
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