The pressure on corporate management to reduce overhead costs has intensified over the past two years, a new global study by management consulting firm Booz Allen Hamilton found.
The pressure on corporate management to reduce overhead costs has intensified over the past two years, a new global study by management consulting firm Booz Allen Hamilton found. CFOs are centralising staff services and taking other steps to manage costs, while improving responsiveness to the business units they serve. A significant number of CFOs are also turning to outsourcing, particularly for IT and HR operations, to manage the relentless cost pressures they face. Booz Allen surveyed 156 CFOs from around the world to understand current trends and best practices in the management of general and administrative functions, also known as overhead. The report defined these functions as human resources, finance and accounting, IT, purchasing and procurement, facilities management and risk management.
New employment advocate
Employment and Workplace Relations Minister Kevin Andrews has announced the appointment of Peter McIlwain as Employment Advocate, effective from 2 August 2004. The term is for five years. Andrews made the announcement in Brisbane where he presented the 500,000th Australian Workplace Agreement (AWA) to worker John Collins from removals company MiniMovers. McIlwain replaces Jonathan Hamberger who has been appointed a Senior Deputy President to the Australian Industrial Relations Commission. McIlwain has been the Deputy Employment Advocate, Client Network Services, since May 1999. Prior to that, he was the Victorian Regional Manager in the Office of the Employment Advocate.
New year employment booms
Australians are enjoying the best job market since April 2001, according to the Olivier Internet Job Index. The snapshot of the Australian job market last month shows 17 of the 21 sectors rising, although most remarkable was a resurgence in Building and Construction jobs, which rose 19.06 per cent. This may be due to the need to get projects underway for tax and contractual reasons before the end of the financial year, industry authorities say. Advertising and media jobs grew 22.73 per cent in June, possibly stimulated by a record breaking Federal Government expenditure. Jobs in the transport sector were up 14.03 per cent, reflecting a general rise in the economy.
Good times set to slide
The strong employment market in Australia of the past year is expected to cool over the coming quarter, according to the latest Hudson Report Employment Expectations figures released at the end of last month. The Hudson Report survey of more than 7500 employers nationally has found that 36.0 per cent expect to increase staffing levels during the September 2004 quarter, for a positive net effect of 28.4 per cent. While Employment Expectations are up 1.1 percentage points on the June quarter, the fourth consecutive increase, growth has halved each quarter for the past three successive Hudson surveys. The Report also highlights that wages for professionals continue to increase at a faster rate than other sectors, suggesting a shrinking pool of knowledge workers and the need for Australian businesses to have an increased emphasis on retention policies.
Merger sees global consultancy expand Australian operations
Right Management Consultants has completed its global assimilation of The Empower Group, creating one of the largest organisational consultancies in the world and expanding its Australian and New Zealand operations. Right’s organisational consulting business now has more than 700 consultants across 22 countries with annual revenues of approximately US$130 million. The assimilation process began five months ago when Right was acquired by Manpower as a stand-alone subsidiary. As part of the acquisition, Manpower’s organisational consulting division, Empower, and its 300-plus consultants, were merged into Right’s global organisational consulting practice.
ACCI applauds OHS, WorkCover report
The Australian Chamber of Commerce and Industry (ACCI) has welcomed the release of the Productivity Commission’s Final Report into National Occupational Health and Safety (OHS) and Workers’ Compensation Frameworks. The report points to the heavy compliance burden faced by Australian industry arising from current laws. ACCI strongly supports greater national consistency on key issues between Australia’s multiple workers’ compensation and OHS schemes. ACCI also sees merit in examining Productivity Commission recommendations that would allow national companies which meet existing licence criteria, or which are self-insured, to operate under a single workers’ compensation structure.
