Fewer Australian small businesses to recruit permanent staff

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(Xinhua)
Updated: 2009-06-01 16:32

CANBERRA -- About one in three Australian small businesses would hire permanent staff in the next 12 months, as a result of the ongoing economic downturn, revealed a survey released Monday.

The Australian Institute of Management's (AIM) national salary survey for 2009 found that just 34.2 percent of small companies with a turnover of less than 10 million Australian dollars ($8 million) a year expect to add to permanent staff members in the next 12 months.

While a year ago, the figure was two in three.

The survey also revealed that employees in smaller companies are increasingly choosing to stay put in their jobs with their current employer owing to the gloomy economic climate.

Voluntary staff rates fell to 9 percent from 12.7 percent the previous year.

While voluntary staff turnover rates are down on last year, they still pose a threat to small companies due to the significant costs associated with recruitment and retraining, said AIM's chief executive David Wakeley.

The survey found the main reasons for staff resignations from small firms were to pursue a new challenge (64.7 percent) and to obtain better pay (51.8 percent).

AIM's large company survey showed 39.6 percent of bigger firms are expected to add to permanent staff in the next 12 months, down from 59.7 percent in 2008.

Australian Professional technical staff will continue to receive the highest pay awards in the year ahead at 4.3 percent, while salaried staff will get the lowest raise at 3.8 percent.