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Australia
Melbourne, 18 June 2008

Australian workplaces have changed, for both employers and employees. For the first time in Australia, the need for greater flexibility in working arrangements has been formally recognised in industrial relations policy - signifying a shift in how Australians may work in the future.

Flexible working arrangements were one of the Government’s 10 National Employment Standards (NES) announced this week, which will be used as the basis for the Government’s award modernisation process. Under the new standards employees will be entitled to request flexible working hours when they have been with the employer for at least 12 months continuous service, an employer will need “reasonable business grounds” to refuse a request.

This is significant in forcing employers to recognise the need for, and value of, flexible working conditions, particularly in the heightening war for talent according to global consulting, outsourcing, and investments firm Mercer.

David Anderson, Worldwide Partner at Mercer, believes that flexibility in the workplace, particularly for valued employees, has to be part of every employer’s battle plan if they want to maintain the workforce they need to remain viable – let alone grow.

”Flexible working arrangements and benefits will become increasingly important for employers trying to attract and retain workers whilst battling a critical skills shortage and a generation of experienced workers on the verge of retirement,” he said.

“Australian employers who refuse to offer employees flexibility in terms of working hours, working arrangements, and benefits will jeopardise their ability to attract and keep workers – particularly older workers.

“The impact of a tightening labour market and a shift in the make-up of the labour force is rapidly increasing its grip on Australian workplaces and we believe, and our clients and their employees are telling us, that flexibility must increase if anything in the 21st century workplace.

“We believe there is still some way to go before Australian companies really embrace the notion of flexible working, but this recognition of flexibility in the NES is a pleasing step and places it firmly on the agenda for employers,” said Mr Anderson.

A recent report from Mercer titled – “Workplace 2012 – What does it mean for employers?” revealed that Australia’s workforce participation rate will decrease in the four years to 2012 and of the workforce available, 17 per cent will be aged 55+. Furthermore, the number of women aged 55+ in the workplace will increase by 19 per cent between now and 2012.

“Australians aged 55+, particularly women, will be an important part of the answer to the current skills shortage and flexible working arrangements will be essential in attracting, retaining, and developing these workers.

“Now is the time for employers to redefine the job and increase flexibility to improve productivity and output for the employee and employer respectively,” said Mr Anderson.

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