A shortage of skilled and motivated employees is a major barrier to employment for Queensland small business, a new survey has found.
The national survey of small business conducted by accounting body CPA Australia found half (52%) of the state's small businesses, like their counterparts in other states, shunned filling full-time positions, citing a lack of skill, motivation and reliability as well as the burden of training new staff.
Another factor contributing to small business' reluctance to employ is a lack of confidence in their ability to comply with the unfair-dismissal legislation, with more than 42% not knowing which procedures to follow.
As a direct consequence, the survey – based on interviews with 600 small businesses and 105 CPAs – found casualisation of the labour force is occurring at the expense of full-time employment, with 35% of small businesses employing casuals, despite 50% believing full-time employees care more about the business than casual staff.
The casualisation of labour by Queensland small business is expected to be higher over the next 12 months than in any other state, with 33% expecting to employ more casuals than permanent staff. Casualisation in other states is expected to grow in line with international trends, with 24% planning to employ more casual than permanent employees.
CPA Australia's chief executive Greg Larsen says there is clearly a demand to employ full-time staff, but it is alarming that half of Australian small business cannot find the appropriate candidates.
"This presents a significant challenge to business and government in the fight to reduce unemployment. Government and small business need to work together to fill the skills gap - to make sure that the training and education available matches the skills required by small businesses," he says.
"This survey clearly demonstrates Australia has work to do on these fronts, if Australia is going to sustain its current buoyant economic outlook against our global competitors.
"Governments, along with business groups, must seriously address the factors of skill and motivation by developing an entrepreneurial culture supported by education and training.
"Small business must also sharpen its role by fully understanding their regulatory obligations. Adopting a systematic way to recruit and retain full-time staff is another issue they must address if they are to become employers of choice.
"Job seekers looking for full-time employment need to reconsider and even update their skills, if they want to seize the opportunities offered by Australia's 1.2 million small businesses. School leavers should also be encouraged to consider small business as a viable and long-term employment option."
The unfair dismissal legislation is still causing a problem for small business, says CPA Australia's business policy adviser Judy Hartcher.
"The legal requirements are complex and ill-defined and are not suited to small businesses that often have limited in-house resources," she says.
"The survey findings clearly show there is an urgent need to simplify the compliance processes and introduce educational initiatives to support the understanding of the rights and obligations of small business.
"We are confident these educational initiatives will lead to better outcomes for small business, removing a major barrier to the growth of Australian small business."
In addition, 40% of small businesses cited payroll tax a barrier to employment.
Chair of CPA Australia's Small Business Centre of Excellence, Greg Hayes, says the organisation is opposed to payroll tax, as it is viewed by members as a tax on jobs and a disincentive to both employment and business growth.
"The abolition of payroll tax should be seen as a long-term objective. There maybe, however, some merit in reviewing the threshold for payroll tax. This can act as an artificial barrier to employment, with companies encouraged to ensure their payrolls remain below the threshold," he says.