Over the last 10 years Victoria has experienced consistent economic growth and historically low levels of unemployment. Combined with an ageing population this has lead to employers experiencing a shortage of workers and the skills they need. While a weakening of the global economy is forecast to lead to reduced demand for labour, many areas and occupations will continue to experience a shortage of skilled workers.

For employers, this makes it harder to find, hire and retain good staff. One answer is to tap the vast pool of people who would like to work but need some flexibility to allow them to juggle family or carer responsibilities � caring for children, elderly parents or a family member or friend who is sick or disabled.

Employers who have recruited parents and carers say they are:

• self-starters
• great multi-taskers
• flexible problem solvers
• punctual, well presented, highly motivated
• extremely loyal to employers who respect and accommodate their family commitments

Employers can attract and retain parents and carers by developing policies that recognise the needs of modern families.

Implementing family friendly provisions is a proven, cost effective way to:

• attract and retain skilled workers
• increase employee morale and productivity
• increase staff loyalty and support
• reduce absenteeism and turnover, which all leads to �
• increased customer satisfaction

Legal responsibilities

On 1 September 2008, changes to the Equal Opportunity Act 1995 (Vic) came into effect which make it discriminatory to unreasonably refuse a request by an employee to accommodate their responsibilities as a parent or carer.

For more information on these new laws with examples of best practice process and responses see Family Responsibilities - Guidelines for Employers and Employees, a publication produced by Industrial Relations Victoria and the Victorian Equal Opportunity and Human Rights Commission.

There are also obligations under Australia's workplace relations system to provide your employees with certain additional minimum entitlements. These are provided in the Australian Fair Pay and Conditions Standard (which must be provided to all employees) and also in awards and workplace agreements (which may apply to your workplace). The minimum conditions include minimum rates of pay, maximum hours of work, annual leave (for all permanent employees), personal leave (including sick leave, carer's leave and compasionate leave), and unpaid parental leave. For more information see Workplace Authority.

The federal minimum conditions will be amended in 2010 to reflect the Federal Government�s proposed 10 basic employment standards (called the National Employment Standards). Under these new standards, workers with children under school age will also be entitled to the right to request flexible work, which the employer will only be able to refuse on 'reasonable business grounds'. Remember that in Victorian workplaces, the obligations under the Equal Opportunity Act 1995 (Vic)(discussed above) will also apply. For more information please see Workplace Authority.

See also the Rights, responsibilities and entitlements section of this website. 

You need flexibility too

Employers also have families and other responsibilities they need to balance with their work.  Don't forget to factor your own needs into any family friendly options you might trial. Taking up these options will not only help you to enhance the time you spend with your family, manage your own stress, and stave off burn-out, it will also encourage your staff to take them up if they see you doing so.

Many business owners, especially women, start their own business in order to create a more flexible schedule and balanced life for themselves. However many find that the demands of the business can quickly take over and that they struggle to achieve the balance they were looking for. For tips on improving your work family balance including setting boundaries and stopping the guilt cycle visit the WIRE website to access Better balance, better business a booklet for women who run their own small business.

The bottom line

Providing family friendly work arrangements can benefit your bottom line. To get more detailed advice on this process see The business case.

Reducing absenteeism saves you money

Flexible work practices can reduce unplanned absences and increase productivity. For example, by allowing employees to take a few hours off to attend a child's medical appointment which they can make up later, this may negate the need to pay a whole day of carer's leave.

Business Victoria�s website has many useful Staff Planning Estimators, including a calculator to help you estimate how much absenteeism costs your business.

Reducing staff turnover saves you money

When an employee leaves, recruiting and training a new employee costs you time and money. When someone leaves you also lose their valuable knowledge and networks. 

It has been estimated that to replace an employee can cost 38 per cent of their annual salary. Therefore to replace an employee on an annual salary of $45,000 would cost you $17,000.

By providing flexible work arrangements you might retain a valued employee, rather than losing them to another organisation.

The Work and Family Balance Manual (PDF 741kb) provides a formula on page 20 to calculate the cost of replacing an employee in your workplace. The manual also has information on legislation, examples of strategies, policies and clauses, as well as a step-by-step guide to implementing family friendly practices in your business.