Environmental Influences on Employing People

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Ageing population: There are more than 2 million Australians ages 65 and older and this will double by 2025. There will be fewer working-age people to generate tax revenues but more people needing government spending on aged care, health and pensions. Employers will be forced to employ larger number of older workers. Fortunately, the use of technology will make work less physically demanding, permitting older people to work longer. Experts say that ‘an ageing workforce will compel companies to rethink every aspect of how they organise business in order to tap into knowledge and experience of their older workers.

Casualisation of the workforce: Dramatic trend is the casualisation of the workforce in industrialized economies. In Australia 24% of all employees are now casual workers. Competitive pressures, changes in technology, the need for more flexible staffing, the increased use of outsourcing and unfavourable IR legislation have contributed to this trend. Critics argue casualisation has disadvantaged workers by marginalizing them in terms of career paths, training and fringe benefits.

Outsourcing: Refers to the subcontracting of work to an outside company that specializes in and is more efficient at doing that kind of work. By strategically outsourcing and emphasising a company's core competencies, managers can leverage their firm's skills and resources for increased competitiveness. Outsourcing has seen a greater use of contractors and a reduction in the number of permanent positions. It is argues that this process is saving many professionals time and money, improving efficiency and enabling them to focus on competitive business issues. Organisations are under pressure as they are faced with high wages, medicare levy and other expenses and resultingly they are finding it difficult to identify activities that can be more economically performed externally. Firms are reducing costs by utilizing India's large pool of English-speaking,...
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