The costs of a casual job are now outweighing any pay benefits


Joshua Healy, University of Melbourne and Daniel Nicholson, University of Melbourne

Low wages growth has been a spectre hanging around the Australian economy for some time. In our series What We Earn we unpick the causes for this and why some workers might be feeling it more than others.


Workers aren’t being compensated as much as they should be for precarious work in casual positions.

One in four Australian employees today is a casual worker. Among younger workers (15-24 year olds) the numbers are higher still: more than half of them are casuals.

These jobs come without some of the benefits of permanent employment, such as paid annual holiday leave and sick leave. In exchange for giving up these entitlements, casual workers are supposed to receive a higher hourly rate of pay – known as a casual “loading”.

But the costs of casual work are now outweighing the benefits in wages.

Costs and benefits of casual work

Casual jobs offer flexibility, but also come with costs. For workers, apart from missing out on paid leave, there are other compromises: less predictable working hours and earnings, and the prospect of dismissal without notice. Uncertainty about their future employment can hinder casual workers in other ways, such as making family arrangements, getting a mortgage, and juggling education with work.

Not surprisingly, casual workers have lower expectations about keeping their current job. For example the Australian Bureau of Statistics (ABS) found 19% expect to leave their job within 12 months, compared to 7% of other workers. Casuals are also much less likely to get work-related training, which limits their opportunities for skills development.

The employers of casual workers also face higher costs. High staff turnover adds to recruitment costs. But perhaps the main cost is the “loading” that casual workers are supposed to be paid on top of their ordinary hourly wage.

Australia’s system of minimum wage awards specifies a casual loading of 25%. So, a casual worker paid under an award should get 25% more for each hour than another worker doing the same job on a permanent basis. In enterprise agreements, the casual loading varies by sector, but tends to be between 15 and 25%.

The practice of paying a casual loading developed for two reasons. One was to provide some compensation for workers missing out on paid leave. The other, quite different, motivation was to make casual employment more expensive and discourage excessive use of it. However this disincentive has not prevented the casual sector of the workforce from growing substantially.

Casual jobs aren’t much better paid

One approach in determining whether casual workers are paid more is simply to compare the hourly wages of casual and “non-casual” (permanent and fixed-term) employees in the same occupations. This can be done using data from the 2016 ABS Survey of Employee Earnings and Hours.

We compared median hourly wages for adult non-managerial employees, based on their ordinary earnings and hours of work (i.e. excluding overtime payments). If the median wage for casuals is higher than for non-casuals, there is a casual premium. If the median casual wage is lower, there is a penalty.

The 10 occupations below accounted for over half of all adult casual workers in 2016. In most of these occupations, there is a modest casual wage premium – in the order of 4-5%.

https://datawrapper.dwcdn.net/9OfmG/2/

The size of the typical casual wage premium is much smaller, in most cases, than the loadings written into awards and agreements. Only one occupation (school teachers) has a premium (22%) in line with what might be expected.

Three of the 10 largest casual occupations actually penalise this sort of work. And overall for these 10 occupations there is a casual wage penalty of 5%. This method of analysis suggests that few casual workers enjoy substantially higher wages as a trade-off for paid leave.

Taking a closer look involves controlling for a wider range of differences between casual and non-casual workers. One major Australian study in 2005 compared wages after taking account of many factors other than occupation, including age, education, job location, and employer size.

All else equal, it found that part-time, casual workers do receive an hourly wage premium over full-time, permanent workers. The premium is worth around 10%, on average, for men and between 4 and 7% for women.

These results imply that most casual workers (who are in part-time positions) can expect to receive higher hourly wages than comparable employees in full-time, permanent positions. However, the value of the benefit is again found to be less than would be expected, given the larger casual loadings mentioned in awards and agreements.

It seems that while there is some short-term financial benefit to being a casual worker, this advantage is worth less in practice than on paper.

A recent study, using 14 years of data from the Household, Income and Labour Dynamics in Australia Survey (HILDA), finds no evidence of any long-term pay benefit for casual workers.

The study’s authors estimate that, among men, there is an average casual wage penalty of 10% – the opposite of what we should see if casual loadings fully offset the foregone leave and insecurity of casual jobs. Among female casual workers, there is also a wage penalty, but this is smaller, at around 4%.

This study also finds that the size of the negative casual wage effect tends to reduce over time for individual workers, bringing them closer to equality with permanent workers. But very few casual workers out-earn permanent workers in the long-term.

Inferior jobs, but fewer alternatives

The evidence on hourly wage differences leads us to conclude that casual workers are not being adequately compensated for the lack of paid leave, or for other forms of insecurity they face. This makes casual jobs a less appealing option for workers.

This does not mean that all casual workers dislike their jobs – indeed, many are satisfied. But a clear-eyed look at what these jobs pay suggests their benefits are skewed in favour of employers.

Despite this, the choice for many workers – especially young jobseekers – is increasingly between a casual job or no job at all. Half of employed 15-24 year olds are in casual jobs.

The ConversationIn a labour market characterised by high underemployment and intensifying job competition, young people with little or no work experience are understandably willing to make some sacrifices to get a start in the workforce. The option of “holding out” for a permanent job looks increasingly risky as these opportunities dwindle.

Joshua Healy, Senior Research Fellow, Centre for Workplace Leadership, University of Melbourne and Daniel Nicholson, Research Assistant, Industrial Relations, University of Melbourne

This article was originally published on The Conversation. Read the original article.

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Five tips to get the most out of your workday


Image 20170419 32700 vcew7e
Drinking coffee at work has a range of benefits.
Shutterstock

Mary Barrett, University of Wollongong

Getting a lot done each day is about more than just having the right productivity tools and setup. It’s about taking care of your body and mind, and this starts even outside of the workplace. The Conversation

We all need strategies for increasing productivity; here are five to get you started.

1) Get a good night’s rest

The first key to productivity is plenty of sleep. Getting 7-8 hours sleep a night will flow through into your work, from sharper decision making and problem solving, to better coping with change.

It is not just the quantity of sleep that matters, but quality as well. You should try to stick to a regular sleep pattern.

Going to bed late during the working week and hoping to catch up with a sleep-in on the weekends may make you feel more productive, but you are disrupting your sleep-wake rhythms. This makes it difficult to feel alert and ready for work on Monday.

Get into a good sleep routine by setting a regular bedtime. Then avoid caffeine, alcohol, nicotine, and other chemicals that interfere with sleep.

Limit light exposure – including from TV, phone and computer screens – in the evening. Eat, drink and exercise enough, but not too much and not too close to your bedtime. Make sure your bedroom is a calm place, and use it only for sleep and intimacy.

Shift workers may not be able to keep to a sleep routine, of course, and they need to be even more careful to get good sleep when they can.

2) Drink some coffee at work

Coffee helps you feel alert because it blocks adenosine, the main compound in your brain that makes you sleepy.

A study of US Navy SEALs found caffeine had a range of positive impacts beyond keeping you awake. Benefits ranged from increased alertness and reaction time, to improved learning, memory and even mood. The effects lasted from one to eight hours.

Another study found that caffeine speeds up how quickly we process words.

But coffee isn’t just effective on a chemical level.

Researchers at MIT found that scheduling coffee breaks so that the entire team took it at the same time increased productivity. When tested at a bank call centre, efficiency increased by 8% on average, and 20% for the worst performing teams. The benefit here came less from the caffeine and more from increasing the interactions between team members.

But before you rush out to grab a coffee, remember that in these experiments “a good cup of coffee” means black coffee. Research shows the levels of the beneficial antioxidants in coffee were higher and lasted longer in black coffee drinkers than for people who added sugar or non-dairy creamer to their coffee.

3) Take a break and do some exercise

Researchers in America have found that taking breaks during the workday is important for workers to replace workplace “resources” – energy, motivation, and concentration. These resources aren’t limitless, and periodically need “charging” by doing activities that require less effort or use different resources than normal work, or are just something the worker enjoys.

A break could be mean completely stopping work and doing something fun. An office-worker might go for a run, for instance. Or it could just mean switching tasks and doing something different, such as a supermarket shelver sitting down and doing paperwork.

The researchers also found it matters when you take your break. You will be most productive after a break if you take it early in the work day rather than later, when you are already tired.

But perhaps you should also carve out special times in the day for physical movement. Researchers in Sweden found that devoting some work time to physical activity increases productivity. The research found that as little as two and a half hours of physical activity a week led to more work being done in the same amount of time, and reduced absenteeism due to sickness.

4) Conquer procrastination

Procrastinating not only reduces your immediate productivity
by delaying work, but increases stress and lowers well-being. This can make your productivity even worse, later.

There are a range of relatively simple interventions you can do, such as eliminating notifications on your devices, only working for 15 minutes to get a project started, or creating smaller goals.

A classic remedy now supported by a University of Pennsylvania study is to divide tasks into smaller pieces so you can work through a more manageable series of assignments. Use the higher energy levels you have in the morning to do a small task you don’t feel like doing, such as phoning someone you have been reluctant to contact. You’ll give yourself the mood and energy boost that comes from a small achievement.

5) Do one thing at a time

Don’t be tempted to multitask. Our brains are not suited to dealing with multiple streams of information or doing multiple jobs at the same time. The more tasks we try to do simultaneously, the slower we complete them and the more mistakes we make.

Further, the research found that those who do multitask are more prone to becoming distracted by their environment.

By contrast, take that difficult phone call you just made. You gave it your full attention and finished it. Now, do something else important and then take a short coffee break, perhaps a walk. Your body and your mind will be in top gear and so will your productivity.

Mary Barrett, Professor of Management, University of Wollongong

This article was originally published on The Conversation. Read the original article.

Australian Politics: 15 August 2013


Today’s brief look at Australian politics begins with an article that praises the work of independent MP, Tony Windsor.

For more visit:
http://www.themonthly.com.au/issue/2013/august/1375315200/don-watson/praise-tony-windsor

Syria: Open Doors at Work


The link below is to an article reporting on the work of Open Doors in Syria and how you can help Christians under threat in that country.

For more visit:
http://blog.opendoorsusa.org/donations-work-syria/

Cricket: The Ashes Report – 15 July 2013


In the end it was a very close match that England won and Australia lost. The first test of the current Ashes series is over with plenty of controversy and action a plenty. It was a great game, though sadly it will be remembered for the controversy surrounding the DRS as much as for the game itself. But having said that, Australia really did a bad job in the way it used the DRS system, while England handled the DRS masterfully and full credit to them. With just 14 runs between the two sides, the second test has a lot to live up to following this match.

I can’t really make any useful comments on the English team, but as far as Australia is concerned I think it is time for Ed Cowan to be shown the door and for David Warner to return. Failing the return of Warner, who I believe has been sent to Africa with Australia A for some batting practice, perhaps it is time for the return of Usman Khawaja. The Australian batsmen really need to lift their game, because in reality the match was a lot closer than it should have been and they have the lower order to thanks for that – particularly the bowlers.

As for the bowling effort – work needs to be done also. There was far too much waywardness in the fast bowling ranks. Thankfully Nathan Lyon should be banished to the sidelines given the performance of Ashton Agar – a spinner who actually spins the ball and he can bat, which is very handy in the absence of a reliable upper order.

Google: At Work Preserving Historical Documents Relating to the Holocaust


Google is seeking to archive and preserve the world’s largest historical collection on the Holocaust. For this project, Google is working with Yad Vashem, an archive based in Jerusalem.

For more visit:
http://www.charismamag.com/index.php/news-old/30085-google-works-to-preserve-holocaust-archives