more-arw search

Survey Shows Efficiency In Budgeting Process Drives Productivity

Many Australian companies have been benefiting from higher productivity levels recently, and these firms can account for the difference in their output by using corporate budgeting software.

The survey was conducted by a major international staffing firm, and involved 300 CFOs and finance directors of companies belonging to every industry in the Australian market. This poll was taken as a component of a worldwide survey drawing input from more than 2,000 finance officials in 15 different nations.

Of the finance officials who participated in the Australian portion of the poll, 45 percent had generated higher productivity without needing additional resources. Another 40 percent of the survey respondents indicated that they got more out of workers through use of better technology. In addition, 34 percent specified productivity gains made through improved infrastructure.

The aforementioned figures would easily fit with labor data from the Australian Bureau of Statistics that indicate relative stagnation in the unemployment rate, which registered 5.4 percent in October. This metric was largely unchanged from September.

Companies that are budgeting for important expenses including labor costs can employ a wide range of tools to make sure their financial planning process is done effectively. One way they can make this complex and crucial step easier is using the right software applications.

Temp Workers 

One factor that was credited with the recently-enjoyed productivity boost was the use of temporary workers, with one-third of respondents indicating that employing this type of worker had helped generate greater output.

Australia is using temp employees to work alongside it regular staff more frequently than 12 of the 14 nations taking part in the survey. Roughly one-third, or 33 percent of CFOs contributing to the poll indicated that working with temporary employees pushed the productivity of their organizations higher.

Andrew Brushfield, a director at the major international staffing firm that conducted the survey, said in a statement that "finance leaders in Australia clearly recognise the benefits of hiring contract and temporary staff to boost productivity – bolstering resources to match workload demands without permanently increasing headcount."

He added that "using temporary professionals is not only cost effective, but also allows employers to introduce new or specialized skills into the organization."

Companies that employ with temporary workers may find accounting for their labor costs to be slightly more difficult than for those of full-time employees. These firms might be able to simplify this task by making use of the right financial budgeting software.

HR Risk Management 

Brushfield stated that the Australian economic state has left the nation's companies with no choice but to make greater use of temp workers and make an effort to boost productivity in order to keep up with the global marketplace. However, these companies need to be aware of the other side of the coin.

The staffing company executive noted that "in the current financial climate, driving existing employees to be more productive is a cost effective solution." However, he pointed out that "companies should be mindful that expecting employees to do more with the same resources may not be a viable long-term solution. If companies are overly reliant on this strategy, they run the risk of employee burn-out."

"Long work hours and seemingly relentless deadlines can lead to low morale and reduced productivity ― not to mention decreased job satisfaction. If hiring additional staff or increasing pay are not options, there are other ways to keep staff motivated, such as flexible working arrangements and reminding staff to take holidays."

Companies have realized substantial growth without hiring additional people since the most recent recession hit. Many major corporations have generated all their earnings growth through cost management over the last few years.

Is there significant opportunity for your company to improve its productivity through the use of temporary workers and other tools? 

Products and Companies: