Businesses are faced with numerous different risks, yet anticipating and effectively managing their people risks is critical to building trust inside and outside of your business. With such risks posing major threats, effective risk management becomes a business imperative. What are the common risks Australian businesses should be aware of and address?
Common people-related risks Australian businesses should be aware of and address include:
- Employment Law Compliance: Australian businesses need to comply with complex federal and state employment laws. Non-compliance can result in penalties, fines, and legal action. Key areas include minimum wage, working hours, leave entitlements, and anti-discrimination laws
- Beyond financial exposure, businesses must meet WHS obligations to prevent legal and reputational damage. Investment in improving WHS can have material people, business & financial benefits
- Unfair Dismissal Claims: Employees in Australia have protections against unfair dismissal. Employers need to ensure they follow proper procedures and have valid reasons for terminating employment to avoid costly legal action
- Discrimination and Harassment: Employers need to provide a workplace free from discrimination and harassment. Claims related to discrimination or harassment can damage a company’s reputation and lead to legal consequences
- Industrial Relations: Managing relationships with trade unions and complying with industrial relations laws is important in industries with strong union presence. Strikes and disputes can disrupt operations
- Privacy and Data Protection: With the introduction of the General Data Protection Regulation (GDPR) and Australia’s own Privacy Act, businesses need to ensure they handle employee data with care. Data breaches can result in financial penalties and reputational damage
- Recruitment and Onboarding: Failing to hire qualified and suitable candidates can result in productivity loss and employee turnover. Compounding the issue, ineffective onboarding drives employees away early.
- Employee Retention: High turnover rates can be costly. Businesses need to implement strategies to retain top talent and ensure job satisfaction
- Workplace Bullying and Conflict Resolution: Workplace bullying and unresolved conflicts can lead to decreased productivity, increased turnover, and legal issues
- Mental Health and Well-being: Australian businesses are increasingly focused on the mental health of their employees. Neglecting mental health issues can lead to absenteeism, reduced productivity, and legal liabilities
- Alongside these developments, remote work has created new hurdles in team coordination and data security.
- Skills Shortages: Depending on the industry, finding and retaining skilled workers can be a challenge, potentially affecting productivity and competitiveness
To successfully manage people-related risks, businesses should develop comprehensive HR policies, provide regular training to employees and managers, and stay up to date with law and regulation changes. To cope with these challenges, businesses often rely on experts like lawyers, HR, and WHS consultants.
At ABILITY GROUP we provide specialist support and advice to assist businesses manage many people risks or have partners who can help. Need help? Contact our team to discuss.
Source: Australian Government – Business.gov.au
Title: Business Risks
Read time: 5+ minutes
Source: Queensland Government – Business Queensland
Title: Managing risks in your business
Read time: 5+ minutes