Monday, November 03, 2014

Compliance sector

"In the last few days, a new industry has been identified which employs over a million people in Australia, making it one of the largest sectors, although no official data is published on it. This sector has been labelled in the press this week – the ‘red tape’ industry or the ‘compliance sector’. It is growing faster than any other industry in Australia and probably elsewhere, although there is no data available that can tell us that. It is largely unproductive because it undermines the productivity of other workers. " from Self-imposed corporate regulations control workers but choke productivity by Bill Mitchell.
From Sydney Morning Herald "However, a frightening report released this week by Deloitte Access Economics fingers the real red tape culprits – the private sector business community whose compliance costs leave the government looking like rank amateurs when it comes to creating and paying for what, in many cases, are unnecessary and unproductive self-imposed rules.....To most readers who work for large organisations there will be a clear moment of recognition with the assertions that the workday is littered with meetings that seem unnecessary or written approvals that need to be in triplicate.
The Deloitte report shows that the time required for employees to comply with self-imposed rules has become a crippling burden. Middle managers and senior executives chalk up 8.9 hours a week complying with the rules that firms set for themselves, with other staff spending 6.4 hours." 

Read more:

No comments: