New employee’s costing more than ever to recruit, train and retain?
Are you struggling with the growing cost of wages?
Are you lacking business confidence?

A survey by the Australian Industry Group and Deloitte found that 68.1 per cent of companies had been curtailed by the skills shortage over the last 12 months.

The labour workforce would need to increase by between 180,000 to 200,000 full-time workers to ease the current skills shortage.

"Skills shortages are also restricting the innovative ability of Australian firms and this places the future competitiveness of many companies at risk,'' the Skilling For Innovation report said. http://www.news.com.au/couriermail/story/0,23739,23591768-5003501,00.html

This skills shortage creates obvious competition for worker employment, resulting in an escalating wages and business employee enticement costs. In this changing interest rate environment, Businesses from Mackay (QLD) to Melbourne (Victoria) are now being impacted by the skills shortage and market changes.

Just this week, a business owner friend of mine expressed concern a potential knockout scenario that is looming. This month she is experiencing;

1. Skills shortage, increasing wages costs
2. Slowing consumer confidence (spending pattern changing)
3. Tightening credit, rising interest rates.
4. Shifting business confidence (First time in 5 years)

This fact has been reported in the Courier Mail on the 29th April 2008.

“Business confidence fell 10 points to minus four points for the June quarter, the National Australia Bank's (NAB) quarterly business report found.

The result, based on a survey of 1700 firms taken during late February and March, is now at its lowest level since the June quarter of 2001, when a reading of minus four was also recorded.”

Full report http://www.news.com.au/couriermail/story/0,23739,23610398-952,00.html

Business owners I communicate with are now bracing for an impact by taking the following action steps;

• Focusing business activities (staff focus on productivity)
• Greater system efficiency (Systems enhancement for having lower skills)
• Nearshore Services (Reducing operating cost, through outsourcing tasks)
• Consolidation and reduction of operating expenses
  Capital expenditure reduction (debt reduction)
• Tighter cash flow management

We have listened to the challenges faced, actively helping business owners prepare for this change of market.

Would you like to prepare your business? More strategies and ideas are available online http://nearshore.greymouse.com.au/Solutions

Regards,
Kelvin Davis
www.kelvindavis.com.au