90 day employment trial legislation creating jobs

90 day employment trial legislation creating jobs - SME research

The 90-day work trial appears to be creating more employment opportunities in the SME sector, according to the latest nationwide MYOB Business Monitor survey of business owners and operators from around the country.

Almost two thirds (63%) of small businesses (6-19 employees) and 16 per cent of micro businesses (1-5 employees) have employed a new staff member on a 90-day trial in the last year. Meanwhile, just 13 per cent of small businesses and 5 per cent of micro businesses have dismissed a staff member within their trial period over the 12 months to August 2015.

MYOB New Zealand General Manager, James Scollay says that, while it may attract opposition, the 90-day trial legislation is extremely popular among local SME operators.

“Local businesses see it as the 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,” says James Scollay.

Although the 90-day trial provisions are being widely used, not all legislation is as popular with employers, says Mr Scollay.

“After the ability to actually find staff, compliance concerns are the biggest pain points for employers.”

According to the survey, the top three employment-related pain points for businesses are:

1. - The ability to find new staff – 32 per cent

2. - Understanding health and safety compliance – 30 per cent

3. - Dealing with payroll compliance – 29 per cent

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