Analysis Of The Impact Of The Penalty Rate Cuts †Free Samples

Question: Discuss about the Analysis Of The Impact Of The Penalty Rate Cuts. Answer: Introduction: Penalty rates are the increased amounts of compensation that are provided to the employees for working overtime or in cases where they work under abnormal conditions. Research reports show that on an average around 20% of the income of the workers is from the penalty rates. In the hospitals the nurses incomes, midwifes and the workers responsible for care of aged are hugely dependent on the penalty rates. It must also be understood that any cut to the penalty rates threatens to considerably reduce the take home pay of nurses, midwives and aged care workers. In case of the hospital and the healthcare industry, meeting the challenges of an ageing population are significant. Therefore much of the influence of the penalty rate cuts is responsible for the lower turnouts of the workers. It is thus an effect which is to be kept in mind depending on the situation at the hospitals. The rates of penalty make sure that staff are attracted in un-manageable hours. The penalty rates also help in p rotecting the living standards of the low paid workers (Burgess, Cameron Rainnie, 2014). Analysis of penalty rate cuts: The employees in the hospitality, entertainment, retail and others industries, are the strongest proponents of these changes. In case the Sunday rates are reduced, the employees will be able to afford to stay open for longer in shops and restaurants and bars which in turn will be responsible for creation of further employment (Adisa Olasupo, 2015). Another argument which has been put forward is that in a society which works all around the day, there the importance of weekends and also Sundays in connection to Saturdays for time off work has declined significantly. In case this is true it can be said that the main reason for the penalty rates us that they are actually the compensation for working unsociable hours. The income of the weekend workers tend to be low. Only about one third of the workers work weekends only and over half work Sundays only. These people rely on the penalty rates to fulfil their household expenses (Skinner et al., 2014). The demographics of weekend workers do not help in coming to the conclusion that a majority are single, dependants or students thereby having less critical need for living incomes. Majority of the weekend workers are young and the largest group are usually single or young couples without children. This might not be true in all cases. However it needs to be kept in mind that greater employment in all centres is not very high. Human resource management and employee retention: In the present world, a significant role is played by the human resources. They have a enormous impact on the human resource considerations on the employees. HRM should work is such a way so as to enhance the overall workforce productivity and commitment, enhanced job satisfaction and discouraged unionism. Properhuman resource management contributes towards the individuals improvement in addition to the performance of the company. They need to focus on individualism rather than on the concept of collectivism and aim to improve the overall performance of the employees (Panhwar, Channar Brohi, 2012). Regardless of the position on the changes in the organisations, it is necessary to acknowledge that the penalty rates are not regardless in anything. These also need to be subjected to review, specifically as there are changes in the society (Onikoyi, Awolusi Ayodeji, 2015). It has been seen that the function which was usually served by the penalty rates are no longer done as such. This is due to the reason that the changes in the composition of the workforce, reductions in the length of the standard working week and also the working year as also the growth in unemployment, the hour preference of the employees have changed. It has been mentioned by the FWC that the existing penalty rates on Sunday in case of the hospitality, fast food, retail and Pharmacy awards, do not achieve the objective of the Modern Awards. This is because a fair and relevant minimum safety is required (Odeku Odeku, 2014). There are some small business owners state that that they cannot operate on Sundays due to the high costs of the employees wages and thereafter the small margins. Despite the fact the business needs to operate throughout the week. Other people have argued that high penalty rates reduce the business profits and increases the costs to the government, reducing the demand for labour and productivity across the Australian economy (Totterdill, 2015). Managing the employees and their reactions: The employees who need to react to the new rates, it is needed to prepare for the new rates need to review the present payment rates and agreements. There are certain workplace arguments which affect the way in which the penalty rates and the allowances are paid including the salary payments, employment contracts, individual flexibility agreements and also a guarantee of the annual earnings. The payments made as wages under these arrangements need to offer other penalties and loadings in the way of awards. An employee needs to receive at least the same amount under the arrangements as needed to be done based on the award. It needs to be understood that the penalty rates does not necessarily provide employees with the right of varying to the agreed rates. In case the employees are being given a loaded rate already, a weekly or hourly rate which is above the reward cannot be flowed into the loaded up rate (Cascio 2012). Keeping good record and communicating are essential to avoid mistakes. The most important way to fix it is speaking to employees so that they are not severely negatively motivated. The employees also need to review the existing status of their payroll and agreements. The arrangements at the workplace regarding the penalty rates and allowances payment need to be taken care of. The employers who pay more than the award rate cannot rely on the rules for reduction of the amounts which they are going to pay (Candelon Lieb, 2013). Employee motivation: It is the responsibility of the organisation to ensure that the employees remain motivated and stay with the company. To ensure this themanagement needs to motivate the employees by providing suitable compensation and benefits such that the employees feel the need to remain a part of the company. Recommendations: In order to prevent the hardship from the cut in the penalty rates there needs to be an exemption of current workers in comparison to phasing the reduction over the years. The penalty rate cuts need to be prevented at any cost and the current workers need to be protected from the significant decision so that the organisation does not suffer in any way. Despite the fact that the business groups are in tandem with the decision to cut the penalty rates, the employee aspect of the decision also needs to be kept in mind. The transitional agreements to apply the cuts will have to take certain submissions on the questions (Daly, 2014). The human resourcemanagement team of the organisations should effectively communicate with the employees so that they do not feel uncared for or terrorised and do not leave the organisation. The human resource managers need to understand the situation of each and every employee so that the penalty rate cuts are implemented in such a way so that they do not get affected. Much amount of differentiation or demarcation could not be made between the workers so that they left the job as a result of the penalty rate cuts (Oloyede, 2012). The research of the person assumed that the average annual inflation would be less than the minimum wage. It has been observed that thousands of Sunday workers will have their wages fall significantly as the penalty rate cuts and inflation will negate the effect of the annual minimum wage increase. The workers on certain instances also propose legal changes so that the penalty rate cuts need to be accompanied by beneficial pay and the conditions suitable enough such that the workers are not left worse off. Human resource practices need to be performed in such a way that the employees who work for the company diligently are retained. In order to ensure that the employees be retained their pay levels need to be revised the structure of payment needs to be fair, bonus and incentives provided to the employees need to be fair and non-financial rewards should also be ensured. There need to be social ties and teams which should ensure employee retention. Frequent meetings need to be arranged with the employees in order to understand their opinion on the topic of penalty rate cuts. Their schedules and time frames need to be arranged in such a way that the benefits of employees are given major importance. The employee roles should be clearly defined, the goals which they need to achieve need to be clarified from the beginning. The employees need to be prevented from either physical or psychological job withdrawal. Thus it needs to be understood that if employees are not satisfied in their work, no amount of penalty rate adjustments will help retain them in the company. . Lower amount would be given as wages and will also be able to buy goods and services such as meals at restaurants and these would be such that would better suit their lifestyle. Conclusion: In connection to the concept of penalty rates it can be said that on certain occasions the businesses might have to pay a penalty amount for imposing conditions on the disadvantageous employees. From the reduction of the penalty rates, the turnover would be increased and the business could be managed in a much more proficient way. It would be responsible for much more amount of employment as a result of the increased amount of turnover. There would be more shifts available and more employment opportunities for those people who were unemployed. In case of many employees though the rates of their wages would fall, they would receive higher total amount of earnings as the potential to work a higher number of hours would increase. 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