December 21, 2022
The 7 HR issues that defined 2022
As we head towards the holiday season, it’s fair to say that 2022 was yet another big year for Australia’s workplaces. We look back at seven HR issues that have helped shape the previous 12 months.
1. Labour shortages
Perhaps the most important factor that shaped Australia’s workforce over the past year has been our labour market. With the unemployment rate sitting below 3.5% and with immigration slowing thanks to COVID-19 restrictions of the past two years, many industries and employers have faced a full-blown labour crisis. In fact, a lot of employers have struggled to get new workers while others have failed to keep their existing ones without offering significant pay increases.
It’s at times like these that both recruitment and retention strategies take on a whole new importance. So, if you’re not doing what you can to optimise your workplace culture and keep employees happy and productive, now is the time to start.
2. A new government
In May, the Albanese-led Labor government took office, bringing with them a different approach to industrial relations This included a renewed emphasis on job security and gender equality.
In early September, the government also hosted a Jobs Summit in which it committed to multi-employer bargaining, as well as changes to the ‘better off overall’ test the Fair Work Commission uses when creating Awards.
To help alleviate labour shortages (see 1 above), the government also announced it planned to lift the number of skilled workers it would accept from overseas.
3. Elevation of psychological risks
Mental health has been a major issue in Australia’s workplaces for some time. However, this year, the NSW government made it mandatory for employers to assess the workplace for psychological risks (and protect their employees from them). This elevates psychological harm to the same level as physical harm under NSW law, and means employers have new obligations in the field.
So if you haven’t already assessed the psychological risks in your workplace and taken steps to rectify them, do so as soon as possible.
4. Clarity on contractors
Towards the end of last year, the High Court handed down its Workpac decision, which means that this year – finally – employees have had a higher degree of certainty over their employee obligations.
The distinction between casual and permanent employees is now more obvious, especially when combined with the former government’s legislation around transitioning from casual to permanent. That meant employers could act with a bit more confidence when it came to staffing issues this year.
5. Diversity comes of age
Diversity has been a major issue in our workplaces for some time. However, 2022 was the year that it finally became a workplace priority for many of Australia’s employers. And why wouldn’t it have? Diverse companies are shown to “lure better talent and improve their decision making, customer orientation and employee satisfaction” – all major considerations in a job market like the current one.
6. The workplace changes
While COVID-19 is still with us, 2022 was a year of less disruption than 2020 or 2021. We didn’t have the lockdowns or border closures or anything else that impacted our businesses in quite the same way as we became used to in the two preceding years.
And yet, this didn’t mean we went back to how things were pre-pandemic. Instead, we still kept many of the workplace practices that had been developed over the past two years. A lot of workplaces have adopted more flexibility, with employees using a hybrid model of working both from the office and from home. Some have even abandoned the physical office altogether – or at least now only ask employees to come in once a fortnight or once a month.
This has presented new challenges for managers and business owners, but it’s also introduced new efficiencies – especially when it comes to communication. In many cases, it’s also made output and productivity the main gauges of employee performance.
7. Outsourcing becomes even bigger
With labour shortages and flexible working now very much part of our daily lives, we’ve noticed outsourcing is also on the rise too. To some extent, we believe that’s because employers are now used to having high-quality work performed offsite. But we also think it’s part of a push to keep costs down in light of rising wages and high inflation.
Either way, outsourcing functions – including HR – was a major trend we noticed this year and one we believe is likely to continue in 2023.
If you’d like to know more about outsourcing your HR function, get in touch.