With the unemployment rate at 4.8%, CPI at 2.2% for the December quarter and predictions of moderate growth this year, most businesses will be taking a cautious approach to 2025.
But despite this, for our economy, our businesses and ourselves to flourish, balancing this caution with a helpful dose of optimism will be key to successfully leading your team through the year.
“The policy of being too cautious is the greatest risk of all.”
Jarwaharlala Nehru
Easier said than done!
We are coming out of a period full of restructures and cost of living pressure and the impact of this is still being felt. Knowing what to expect from the year ahead and having clear HR strategies and an HR Plan in place will ensure you have your team behind you all the way.
So, what do we see as the biggest HR considerations for businesses this year?
- Productivity Focus – There has been a lot of downsizing over the past year, balanced with the business imperative to grow. This means doing the same amount of work (or more) with less people. Across business we are seeing a strong focus on the outcomes achieved by every single member of the team, through increased productivity. Streamlining processes and continuous improvement is important, as is building engagement. To improve your productivity, you need a motivated team who are right behind you, and clear HR strategies which will help you achieve this.
- Wage pressure – Alongside downsizing is the need to keep tight control of your wage budget, which will be challenged by staff who are still feeling the impact of the recent inflationary highs on their living costs. Managing the balance carefully and having a clear remuneration strategy which is transparent and well communicated will be key.
- Talent retention – With the relatively high unemployment rate and the difficulty of your current team to find other employment you may have a sense of security about your ability to recruit – but don’t be fooled! Talent is always in high demand and while we have high unemployment, we still have skills shortages in some key areas. Being clear about who your key talent are and having a strategy in place to retain them will help keep momentum in your business.
- Immigration changes – Significant immigration changes have been announced and will be rolled out in four phases in 2025. These changes are sure to have an impact on the recruitment market and possibly your current work visa holders. We have yet to see the detail of all of these pending changes and if they will have the desired results, but they will change our recruitment market this year.
- Getting the right balance with flexible work – The WFH v work from the office debate has been a recent hot topic, thanks to the Government announcements around the public service, and this is set to continue this year. Flexible work is now a key expectation of employment and one of the top consideration factors for job seekers. These expectations often don’t dovetail with business requirements and there will be a need for some realignment from both sides.
- The impact of AI – Over the last year business focus has been elsewhere, and the disruptive impact of AI hasn’t been what was predicted. Slowly, though, we are seeing change and problems are emerging. Smart businesses will be looking to understand its use to improve productivity but also put clear policies and boundaries in place for its application to avoid any negative impact.
Positive People have over 30 years helping businesses navigate change and get the best from your teams. We can help you develop your own fit-for-purpose HR strategy and a working HR Plan that will guide your HR initiatives in a cost effective and value-added way throughout the year.
Call us now on 09-445 1077.