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An operational necessity to limit Salary Inflation An operational initiative to reduce Staff Turnover A strategic step to assure Staff Supply & Quality.

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Presentation on theme: "An operational necessity to limit Salary Inflation An operational initiative to reduce Staff Turnover A strategic step to assure Staff Supply & Quality."— Presentation transcript:

1 An operational necessity to limit Salary Inflation An operational initiative to reduce Staff Turnover A strategic step to assure Staff Supply & Quality A direct operational Saving to the P&L Filipinos workers will increase Productivity The Indisputable Case for Sponsored Employment from Overseas

2 Limit Salary Inflation Australia’s economy is booming creating strong employment growth – Australia is already at full employment, so where do the extra people come from? – Educational might be a long term solution, but International staffing is the only near-term solution. Local Australian staff can only be “poached” from other businesses - at inflated salaries – Nobody leaves their current job for less money. Businesses should include a strategy to employ a percentage of International workers. – Creates a “braking effect” on salary levels with an attractive option to local poaching. – Highly skilled workers can then be initially employed at lower job classifications, and at entry levels in the respective salary bands.

3 Reduce Staff Turnover & Cost The average employee tenure in an Australian business is now only 12 months. – A recognition that employees can increase their salary much fast by job- hopping rather than with one employer Staff loyalty declines in a full employment market encouraging people to change jobs. – This increases staff turnover The “cost of turnover” i.e. replacing and retraining a person in Australia can be up to 70% of their annual salary. – So if an employer can keep a $50,000 employee for 3 years (and save one turnover cycle) then they effectively save the business up to $35,000 Employing overseas staff on a 3-year 457 visa addresses all of these turnover issues and can significantly improve the P&L See for yourself – Click here and download our Cost-of-Turnover Calculator

4 Assure Staff Supply & Quality Think of an Immigrant Sponsorship Agreement as a operational 2-year Staff Planning tool. – Use it to guarantee staff supply with an individual Recruitment Agency. – Plan for growth and recruit to the plan Establish a pipeline of International candidates to the standards required by the business. – To underpin the supply of essential staff Inclusion of tailored assessment processes to each business ensures that quality of staff is achieved. – To obtain high standards of skilled overseas workers. Obtain continued client feedback on each placement. – To continually track quality of overseas workers

5 Direct Savings to the P&L Click here to download our Direct Savings Calculator Sponsored Overseas Employment - Client Fee and Savings Calculator SEE FOR YOURSELF The client benefits of employing International labour. SAVINGS Agency fee % of annual remuneration package18.0%>>>>Total Agency fee to Client$8,640(A) Remuneration package of Australian resource$58,000>>>>Agency fee saving to Client $1,800 Expected remuneration of FLB candidate$48,000>>>>Comparable Agency fee % for a client zero sum gain75.0% = Expected duration of employment (2 to 4 years)3>>>>Total Salary Expense Saving to Client$30,000$36,010 (A+B) Total additional Client expenses for International sponsorships$4,430 Sponsorship Nomination Fees$280 Candidate International Return Air-fare$1,200>>>> Total Recruitment Saving to Client $27,370(B) Local Travel & Logistics on Australian Arrival$250 Australian Health Insurance$2,700 Other Produced by FLB Overseas (Aust) Pty Ltd

6 Higher levels of Productivity Productivity is defined as Output/Cost. Therefore the there are only three ways to increase employee productivity: 1.Increase employee Output 2.Reduce employee labour cost 3.or do Both 1 & 2. Filipino workers yield higher productivity – In Australia only to work to improve their family situation back in the Philippines (strong Christian family values) – Higher skilled workers will work in lower paid jobs – Hardworking and trustworthy and will work longer hours Resulting in both Increased output AND reduced labour cost


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