Recently released figures show that the Australian unemployment rate has fallen to 3.5 per cent, with 90,000 jobs added in June alone.

Despite Covid 19 and rising interest rates, the rate has been steadily dropping for some time now, indicating that the economy is recovering and the labour market is strong. However, the tight labour market adversely affects segments of the economy, and the ICT space is not immune.

Unemployment rate impact on the labour market

The unemployment rate is a lagging indicator, meaning the rate will continue to go down, even after the economic conditions change. However, there is a “sweet spot” for financial, economic, and social situations concerning unemployment. The sweet spot is when there is enough competition for jobs but enough open roles to allow the unemployed to find employment.

Uncertain times in Australia

We are currently in economically uncertain times. Pandemic response costs, high inflationary pressures, supply chain restraints, and now record low unemployment means that Australian businesses face rapidly rising inflation and wage costs, especially in high-demand market segments like ICT.

So what can Australian businesses do to combat this?

The world keeps turning, and your organisation’s project requirements still need to be addressed, so what can you do to keep your costs in check.

Retain employees

While knowing how to find good employees during strained economic times is essential, it’s just as important to understand how to keep good employees. Low unemployment rates equate to an abundance of jobs, meaning employees often think the grass is greener at another position. So business managers need to know how to keep employees around with the right tools.

Embrace Hybrid Working

The shift to remote working was fast-tracked by the Covid-19 lockdowns, and workers have embraced this as the new normal. On the other hand, we’ve seen the blow-back in the tech space where companies such as Apple had staff push back, and many resigned when management tried to force their return. Although Australian businesses can legally direct their teams to return to work, this is a risky move in a competitive labour market like ICT. So instead, reconfigure the office to suit hybrid workers, provide tools to make your employees mobile and support the new paradigm.

Good leadership promotes workplace growth

People don’t quit jobs. People leave bad managers. Employees are less likely to continue their job search if your management has strong leadership skills. Effective managers understand how to create opportunities for employees to grow and find promotions inside their organisation. They work with the whole organisation to help everyone feel productive and excited about the future. A small investment in time is much better than high rehiring costs in a competitive environment.

Invest in your employees

Great managers spend time investing in employees’ growth. Employees crave ongoing development, and when managers invest in employees, they can continue to grow. As managers prove they are willing to share time, resources, and responsibility, employees feel more confident in their future with the company. As a result, they will decide to stay with an organisation because they believe in themselves and their potential.

Create a positive work environment

When working to retain employees, ensure that your HR team are providing support to staff. A healthy work environment is critical to encouraging employees to stay with the organisation.

When employees are happy about coming to work, it changes the entire culture of the office.

Widen the employment pool

Many organisations have realised that If workers are operating remotely, why not look at offshore employees? By utilising offshore teams in countries like the Philippines, you get access to a much wider talent pool, relieving labour costs on your business.

We are here to help

Etica Digital has experience recruiting both onshore and offshore and can demonstrate many ways to keep your hiring costs in check. We provide flexible recruitment services that can help keep you ahead of the pack. Contact us today to find out how we can support your needs.