MYOB's business monitor survey shows small and medium business owners taking on more staff under 90-day trial period.
MYOB New Zealand General Manager James Scollay talks about the 90-day work trial period on NBR Radio and on demand on MyNBR Radi
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The government’s 90-day work trial policy is allowing more small and medium size businesses to take on staff, according to the latest MYOB Business Monitor survey of business owners and operators around the country.
Figures released today showed 63% of small businesses (six to 19 employees) and 16% of micro businesses (one to five employees) have employed a new staff member on a trial period in the last year.
Meanwhile, only 13% of small businesses and 5% of micro businesses have dismissed a staff member within their trial period over the 12 months to August 2015.
The legislation authorising the 90-day trial period was introduced amid strong opposition in 2009 but MYOB New Zealand general manager James Scollay says the legislation is popular among SMEs.
“Local businesses see it as an opportunity to minimise some of the risks of employment, enabling them to create jobs that otherwise wouldn't exist, while ensuring they have the right fit for their organisation.
"As a way of stimulating employment opportunities in the sector, it appears to be effective, with a far greater percentage of SMEs taking on new staff with a trial period than those who have used the provisions to dismiss an employee.”
The survey suggests employment growth for SMEs will be significant this year, with 9% of operators planning to take on more fulltime staff and 11% expecting to employ more part-timers. Twenty percent of all SME operators are also intending to lift pay rates in the next 12 months.
Although there is strong praise for the 90-day trial period from employers, there are aspects of New Zealand’s employment legislation that cause frustration, Mr Scollay says.
“After the ability to actually find staff, compliance concerns are the biggest pain points for employers.”
Alongside finding new staff, understanding health and safety and payroll comprised the three top employment related pain points for employers.
ACC levies stood out as an area in which employers would like to see legislative change, with 75% of the 1000 businesses surveyed saying they wanted to see levies reduced.
While the 90-day trial period was popular with employers, only 23% of those surveyed would like to see it extended to 120 days and the controversial arrangement of zero hour contracts drew the support of only 15% of respondents.
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