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| Edition One-Hundred and Twenty-Four of the Insider |
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Hello and welcome to this week's edition of The Insider.
In today's news: The ARA joins us with its insights on the current economic climate and what it means for small businesses in Australia. We also have some fascinating results from the SEEK Employee Satisfaction and Motivation Survey, including details of which state has more people worried about their future, and some helpful suggestions on what you steps you can take to better position yourself in these financial times.
Quick Shots News: Find out which franchisees are amongst the happiest in Australia; find out which national discount home loan provider recently cut its ties with an underworld financial adviser; and the latest innovation in fast food sales - would you like fries with that, or perhaps some free internet access?
All of this, and much more of the latest news and opportunities from around the globe in this edition.
Enjoy!
From the Inside Franchising Team
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The Australian dollar has opened weaker for the fifth day in a row, hitting another five-year low overnight.
~oOo~
Quote of the day:
"Make your decisions for your tomorrow's not just your today's "
Patricia Fripp
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RETAILERS OPTIMISTIC OF RUDD GOVERNMENT LEADERSHIP IN CASH CRISIS |

Peak retail industry body the Australian Retailers Association (ARA) attended the Small Business Summit (Brisbane) and left optimistic the Rudd Government is providing the leadership needed to respond to the global financial crisis.
ARA Executive Director Richard Evans said the initiatives the Prime Minister announced are another positive step towards supporting retailers and small business.
"However, there are other initiatives the Government could consider, including the deferring of costly legislation that will impact retailers heavily over the coming months and into the expected tough time of early 2009," Evans said.
"Legislation mooted for the next twelve months directly having an impact on hard-hit retailers include the potential for plastic bags levies and bans, the Emissions Trading Scheme, the Award Modernisation process, Parental Leave, Unit Pricing and tobacco controls. These changes to legislation will add compliance and increasing costs for smaller retailers which could be the difference between profit, breaking even or closing.
"For instance the Draft Award Modernisation will increase the wage bill in all states for all retailers. A small retailer with two full time and two casual employees will have a 14 percent wage bill increase on average across Australia - this is from a high of 21.6% in NSW to a low of 11.3% in the Northern Territory," Evans said.
"Right now is the time retailers need direct help. The Government has initiated the $10.4 billion Economic Security Strategy to provide an important injection of cash to flow through the economy. But it is also time to consider to defer (not stop) legislation that will directly impact small retailers until we are through the most uncertain period of trade during the next six months.
"The Prime Minister is showing macro leadership and now he needs to show micro leadership by deferring any additional compliance and other costs for retailers.
"We support the notion that government should continue to govern but it is now vital for them to consider the impact their decisions will have on retailers and the broader small business market. Hopefully, Christmas predictions will be clearer in the next couple of weeks," Evans said.
For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA supports and represents over 5000 members throughout Australia. Visit www.retail.org.au or call 1300 368 041. |
67% of Australians are worried about their job: SEEK |
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Global uncertainty affecting employee confidence
67% of jobseekers are concerned about their current job or career in light of the global economic slowdown according to research from SEEK Intelligence. In a sign that employee confidence is dropping rapidly, when asked the same question in August only 39% of respondents were feeling worried.
The annual SEEK survey of Employee Satisfaction and Motivation, which received over 10,000 responses from Australian employees, was conducted in August this year. With the changing economic climate, key questions were posed again to 2000 respondents in October with vastly different results including:
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59% of respondents are feeling less secure in their job now compared to 12 months ago, nearly double the number of jobseekers who felt this way in August (31%)
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71% of people think that it will take them longer to find a job now compared to 12 months ago, a massive jump from 39% when the question was posed in August and an even bigger increase from the 29% recorded in 2007
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Happiness levels in relation to the respondent’s job continue to decrease, with only 22% of respondents describing themselves as happy (down from 27% in August and 29% in 2007)
Announcing the survey results, SEEK joint CEO Paul Bassat said:
“Given the uncertainty in the global and local economy at present, it’s not surprising to see that jobseekers are starting to question what the implications will be for their individual employment situation. Perceived job security had previously remained relatively stable in the six years we’ve been doing the survey but it will be some time before those high levels of confidence are seen again.
“Australian employers need to ensure they’re communicating openly with their staff in order to alleviate any fears of job insecurity that may be unfounded.”
The online survey, now in its 6th year, found that despite changes in the economic climate, the things employees love and hate about their current roles remain remarkably similar year on year.
Respondents rated the people they work with, their boss and the benefits they receive such as flexible time as their top three loves in their current job. Stress level, the quality of management and feedback/appreciation (or lack thereof), are the most hated aspects.
“The things that employees love and hate about their current jobs remain remarkably similar each year with their work colleagues remaining the best part of their job and stress the worst aspect. What this tells employers and HR managers is that they don’t need to reinvent the wheel; addressing the core issues that affect employees is important no matter what the economic climate,” said Paul Bassat.
Looking closely at who is feeling the pinch of the economic slowdown:
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NSW is the most concerned state (73% of respondents, up from 44% in August)
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WA is the least concerned state at 59%, however it experienced the biggest jump between August and October, up a significant 31% from the 28% recorded in August
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Those who are either self-employed or work in manufacturing, call centre/customer service, retail and administration were the least confident
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Employees in the mining, oil and gas, healthcare and medical, and community and sport industries were the least worried
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Employees who work for a privately owned company with less than 200 employees were the most concerned while those who worked for the Government were the least concerned
In terms of attitude to work for the next 12 months in light of a slowing economy in Australia, 50% of respondents are planning to keep their eyes open for other options, down slightly from 55% in August. 13% believe it will be business as usual (24% in August), 15% will just be happy to keep their job (up from 8%) while 14% are worried they will lose their current job, (up from 4%). A further 2% are hoping for a redundancy package while an optimistic 6% are looking for a promotion with their current employer.
“For jobseekers who might be concerned about their current situation, I would suggest that there are a number of things you can do to put yourself in the best possible situation. Up-skilling, actively contributing to the profitability of your workplace and keeping the lines of communication open with management are all effective measures. It also doesn’t hurt to keep an eye on the job market and assess any opportunities that may present themselves through friends, family or contacts,” said Paul Bassat. |
| Inquiry submissions available to view |
Inquiry into Franchising Code
Submissions made to the Senate Joint Committee regarding the Inquiry into the Franchising Code of Conduct are now available for viewing.
> Click here to view over 100 submissions from parties including the International Franchise Association; MTAA;
7-Eleven Stores; Franchisees Association; Eagle Boys and many others.
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We save you time each week by sourcing Franchising, Business and Finance news
from media outlets around the globe
WORKPLACE OMBUDSMAN NEWS
The sole director of a company who left Australia after his business collapsed owing one of its workers more than $10,000 has been ordered to back-pay his former employee within 28 days.
> Click here for more about this story
A Darwin employer who initially refused to back-pay three teenage fast-food workers less than $3000 will now pay a much higher price. The Federal Court of Australia imposed a $45,000 fine on the company.
> Click here for more about this story
Charity Walk for Students
Simone Foster, a regional general manager with franchise cleaning company CleanTastic, has sore feet and legs but she's not complaining after she and and three other Sydney mums completed an 11 day Gold Coast to Sydney charity walk which has so far raised $15000 for a school education project to aid underpriviliged children in Tanzania. CleanTastic sponsored the walk to the tune of $1000 and supplied the CleanTastic Toyota Yaris support vehicle.
The funds raised on the walk will help to build build more classsrooms to educate bright students from poor families who attend the School of St Jude in Tanzania. Numbers at the school have increased from three in 2001 when the school was founded, to 850 at present, and with plans for over 1000 children to attend the school in the future.
ACCC NEWS
Interested in all the latest news from the ACCC?
> Click here to visit the ACCC News Centre. |
The Australian Newspaper has reported that national discount home loan provider, Beat Home Loans, has cut its ties with an underworld financial adviser. The alleged money launderer, ex-bankrupt and business associate of underworld identity Mick Gatto, was revealed to be operating one of Beat Home Loans' suburban agencies.
> Click here for more about this story
The Nando’s restaurant on Glenferrie Rd, Hawthorn had good reason to fire up the celebrations recently after it was announced that the restaurant won Most Votes in the Outstanding Business Service Award category in the 2008 My Customer Rules awards.
It’s official ... Worldwide Online Printing’s franchisees are amongst the happiest in Australia. That’s the outcome of an independent survey, which has placed Worldwide 10th out of over 50 franchise systems surveyed. The survey was conducted by market research company 10 Thousand Feet and involved over 900 franchisees from Australia’s major franchises.
Click here for more information about
Worldwide Online Printing Franchise opportunities
McDonald's announces free wi-fi
The largest network of free wireless internet in Australia, will be offered in a partnership between McDonald's and Telstra. It will offer free wi-fi in 720 restaurants across Australia by March next year, with Queensland internet hotspots launching from late December onwards.
> Click here for more about this story
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*The content of all news items published in this newsletter are published in good faith and are reproduced from information provided by the individual companies or their agents, the subject of said news items. News items from other publications are linked to original source. Inside Franchising Pty Ltd takes no responsibility whatsoever for information and content being true and correct.
NEWSLETTER EDITION 124 - FIRST PUBLISHED 28 OCTOBER 2008
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