Australian employees, both permanent and casualised, are currently working more hours each year than workers in any other country in the industrial world, leaving many employees stressed, over worked, and physically ill.  This is costing the Australian economy well over $200 billion annually in Workers Compensation for stress claims.

This highlights only the beginnings of the impact our labour shortage is having on our employable population, set to dramatically increase until 2012.  Andrew Thoseby, Director of 1st Executive, has said "this is a direct symptom of our worsening labour shortages.  As Baby Boomers down-shift, Generation Y demand flexibility, and more of our older population retire, we are left with an increasing hole in our workforce.  Employers have responded to these factors with a casualised workforce, promoting Work Life Balance and flexible hours.  However, loose parameters around these initiatives often lead to expectations of being on call 24/7, affecting mental and physical health, as well as family stability."

Employers need to define their work requirements from the top, and identify how those requirements can be achieved without placing unrealistic expectations on their staff.  "Bottom line, it will continue being a candidate driven market for at least the next 35 years. Employees have clearly indicated in our research that they will leave for another employer that offers greater work life balance initiatives; employers need to understand the implications of losing their best talent due to unrealistic work demands", Thoseby continued.

John Howard has recently been quoted "there is no greater mark of economic success than low unemployment".  Whilst this has some validity, an increasing amount of employees are voluntarily leaving their employer for better working conditions.  This costs each employer at least $150,000 every time one employee leaves.  Add to this the billions in compensation claims for stress for all the businesses facing this crisis, and our economical success is in serious question.

"Work life balance and flexible hours are excellent initiatives to attract and retain key talent.  However employers need to identify and define the parameters of these initiatives so that unrealistic work demands aren't placed on employees as a result of work flexibility, and to ensure they retain their key talent", Mr. Thoseby concluded.

 To find out how 1st Executive can help you create Work Life Balance with appropriate paramaters, and how our Performance Management software can manage your staff's needs and productivity so you can achieve business outcomes, please click here.