How Global Uncertainty Is Reshaping Expansion into Australia and New Zealand
Global uncertainty is not stopping international expansion, but it is changing how businesses enter new markets. Economic volatility, workforce shortages, evolving immigration policies, shifting trade relationships, and ongoing supply chain disruption have contributed to a more cautious business environment. While organisations continue to pursue growth opportunities, many are taking a more measured approach to where they invest, how they hire, and how they establish operations in new markets. For businesses looking beyond their home market, Australia and New Zealand continue to stand out as attractive destinations. Both countries offer stable economies, established legal systems, skilled workforces, and strong long-term growth opportunities. However, as many businesses discover, successful expansion requires more than identifying commercial potential. The practical realities of employing people, managing payroll, navigating visa requirements, and maintaining employment compliance can quickly become some of the most complex aspects of international growth. Key Takeaways • Global uncertainty is causing businesses to take a more measured approach to international expansion. • Australia and New Zealand remain attractive expansion markets due to their stability, skilled workforces, and established legal systems. • Workforce mobility, visa sponsorship, and access to talent are becoming increasingly important strategic considerations. • Businesses are placing greater emphasis on employment compliance, payroll management, and local expertise. • Flexible expansion models such as Employer of Record (EOR) arrangements are helping organisations reduce complexity while entering new markets. Why Australia and New Zealand Remain Attractive Expansion Markets Despite broader economic and geopolitical uncertainty, Australia and New Zealand continue to attract international businesses across a wide range of industries. Both countries offer highly skilled workforces, established legal systems, and strong demand across sectors including technology, healthcare, engineering, construction, mining, and professional services. They also provide businesses with access to mature economies, transparent regulatory environments, and strategic opportunities throughout the Asia-Pacific region. For many organisations, this combination of stability and opportunity makes Australia and New Zealand attractive destinations for market entry, employee relocation, and long-term business expansion. However, stable markets do not necessarily mean simple markets. As businesses expand internationally, they are often required to navigate employment frameworks, payroll obligations, tax requirements, and workforce regulations that differ significantly from those in their home country. How Is Global Uncertainty Changing International Expansion Decisions? While international expansion remains a priority for many organisations, global uncertainty is influencing how those decisions are made. Businesses are increasingly focused on balancing growth opportunities with operational risk. Rather than committing immediately to large-scale infrastructure investments or entity establishment, many organisations are taking a more phased approach to entering new markets. This shift is being driven by a combination of factors, including economic uncertainty, rising operational costs, changing workforce dynamics, and the need to remain agile as market conditions evolve. As a result, businesses are placing greater emphasis on flexibility, scalability, and understanding local market requirements before making long-term commitments. How Is Global Uncertainty Affecting Workforce Mobility and Access to Talent? Access to talent remains one of the most significant drivers of international expansion. However, ongoing skills shortages across many industries, combined with changing workforce expectations and increased competition for talent, are making workforce planning more complex. For many organisations, workforce mobility has become a strategic consideration rather than simply a recruitment activity. Businesses are increasingly looking beyond their domestic markets to access specialist skills, relocate key employees, and build teams that support long-term growth objectives. This trend is particularly relevant in Australia and New Zealand, where skilled migration continues to play an important role across sectors experiencing talent shortages. As businesses navigate uncertainty, the ability to access and mobilise talent efficiently is becoming an increasingly important factor in expansion planning. Why Is Visa Planning Becoming a Strategic Expansion Consideration? Historically, visa planning was often viewed as a process that followed expansion decisions. Today, it is becoming an increasingly important part of expansion strategy itself. Businesses looking to relocate employees or hire overseas talent into Australia and New Zealand must consider visa eligibility requirements, sponsorship obligations, processing timeframes, and ongoing compliance responsibilities. These factors can directly influence hiring plans, project timelines, and operational readiness. As immigration frameworks continue to evolve, organisations are recognising the importance of understanding visa pathways earlier in the expansion process. As Fran Davies, Founder and Director of ANZPEO, explains: “We’re seeing businesses take a much more measured approach to expansion than they were a few years ago. The focus isn’t necessarily on slowing growth, but on ensuring the right employment structures, workforce planning, and local expertise are in place before entering a new market.” What Operational Risks Do Businesses Need to Consider When Expanding? Periods of uncertainty often place greater pressure on businesses to minimise risk and avoid costly mistakes. For organisations expanding into Australia and New Zealand, this means paying closer attention to the employment and compliance obligations that sit behind successful market entry. For overseas businesses unfamiliar with these systems, it is often the ongoing legal employment obligations, payroll requirements, workforce administration responsibilities, and compliance requirements that become underestimated. Employment contracts, payroll compliance, visa sponsorship obligations, onboarding processes, superannuation, PAYG, PAYE, KiwiSaver, and ongoing workforce administration all require local knowledge and ongoing management. For international businesses without an established presence in a market, this can create significant pressure internally across HR, payroll, finance, and operational teams, particularly when local requirements are being managed remotely. Understanding these obligations early can help businesses reduce risk, maintain compliance, and establish stronger foundations for growth. Why Are More Businesses Turning to Flexible Expansion Models? As global uncertainty continues to influence expansion strategies, businesses are increasingly looking for ways to maintain flexibility while entering new markets. This has led many organisations to explore expansion models that allow them to hire employees, test new markets, and establish a local presence without immediately committing to entity establishment or large operational structures. For businesses expanding into Australia and New Zealand, this approach can provide greater agility while reducing some of the administrative complexity associated with international growth. One model receiving increased attention is the
New Zealand Skilled Migrant Category Changes: What Employers Need to Know
Australia PEO and New Zealand PEO have officially launched as ANZPEO, bringing together our Employer of Record, payroll, HR and visa expertise under one regional brand across Australia and New Zealand.
Expanding into Australia and New Zealand: Where businesses most often underestimate what’s involved
Expanding into Australia or New Zealand can take several different paths. Some businesses choose to set up a local entity. Others explore remote hiring models. Increasingly, many look to Employer of Record (EOR) or Professional Employer Organisation (PEO) solutions to enter the market more quickly and with less administrative burden. At the centre of each approach is the same challenge: employment. Businesses know there are laws, obligations and compliance requirements involved in hiring overseas, and that processes need to be followed. What is less clear is how those laws actually work in practice, and how they apply to real employment situations day to day. This is where businesses tend to underestimate what is involved. Working with a locally based, on-the-ground EOR provider often brings these realities into focus early. It helps uncover the practical considerations that are not always obvious at the outset, particularly across two distinct employment markets like Australia and New Zealand. Understanding the rules is only the starting point Employment frameworks across Australia and New Zealand are well documented. It is relatively easy to find information on minimum standards, contracts and employer obligations. The complexity starts earlier than many expect, during the initial setup phase. How employees are engaged, how contracts are structured, how payroll is established and how obligations are defined from the beginning all have a direct impact on compliance. Decisions made at this stage set the foundation for everything that follows. Once employees are in place, the focus shifts to how those rules are applied in real situations. Day-to-day employment decisions rely on process, timing, documentation and an understanding of how regulators and mediators interpret actions in each market. As Fran Davies explains: “Most businesses we speak to understand there are compliance requirements. Where they often need support is in how those requirements are applied in real situations, particularly when decisions need to be made quickly.” Where underestimation tends to show up In practice, the gaps appear in common business scenarios rather than unusual ones. Managing employee performance within local frameworks If employee performance issues arise they need to be managed carefully. In Australia and New Zealand, managing those situations requires a structured and well documented approach. Steps need to be followed in the right order, with clear communication and fair process. In New Zealand, expectations around fairness and employee protection can be particularly strong, which increases the importance of handling these situations carefully. Without local guidance, businesses can move too quickly or miss critical steps, which can lead to disputes. Handling redundancy and restructuring correctly Redundancy processes are another area where detail matters. Employers need to consider consultation requirements, timing, documentation and how decisions are communicated. These elements are closely linked to employment compliance and employer responsibility. Even when a business understands that redundancy must be handled carefully, the practical execution can still create risk if not managed correctly. Having access to locally based expertise helps ensure these processes are managed in line with each market’s expectations, with the right steps taken at the right time. Meeting payroll expectations and supporting employees locally Payroll is often viewed as an operational task, but it carries significant compliance responsibility. This includes managing: Employee entitlements and leave Superannuation in Australia and KiwiSaver in New Zealand Local variations such as salary sacrifice or novated arrangements Ongoing payroll accuracy across different employment conditions Employees also expect timely, clear responses when they have questions about their pay or benefits. Providing that level of support requires local knowledge, responsive on-the-ground support, and the correct processes in place. Treating Australia and New Zealand as one market Australia and New Zealand are often approached as a combined expansion opportunity. In reality, each market has its own employment framework, expectations and regulatory approach. Australia operates within a more structured system, while New Zealand can involve more interpretation in areas such as dispute resolution. Managing both markets successfully requires an understanding of how these differences affect day-to-day employment decisions. As Fran notes: “Each market has its own expectations. Having a clear understanding of how employment works in practice across both countries makes a significant difference as a business grows.” What this means for expanding businesses The impact of underestimating these areas often traces back to decisions made during the initial setup phase. When employment structures, contracts or payroll are not set up correctly from the outset, issues rarely stay contained. As the business grows or more complex situations arise, those early decisions often need to be revisited. This can lead to rework, increased costs and duplicated effort. Internal teams may also find themselves managing unfamiliar processes while trying to maintain day to day operations. Over time, this reduces efficiency and makes it harder to manage employee matters with confidence across Australia and New Zealand. Building the right foundation from the start Addressing these challenges comes down to having the right structure in place early. For many businesses, this is where an Employer of Record (EOR) or Professional Employer Organisation (PEO) model plays an important role. It provides a framework to: Engage employees without establishing a local entity Manage employment compliance and obligations locally Ensure payroll accuracy and correct entitlements Support visa sponsorship and workforce mobility Provide consistent HR and workforce support It also creates a clear point of accountability, which simplifies decision making and allows businesses to focus on growth rather than navigating unfamiliar employment requirements. Final thought Expanding into Australia and New Zealand brings strong opportunities for growth, with several pathways available depending on how a business chooses to enter the market. Whichever approach is taken, the businesses that navigate it well focus on getting employment set up correctly from the beginning, with a clear understanding of how local requirements apply in practice across both markets. For those choosing an
5 growth industries in Australia to watch in 2023
Australia is not only known for its breathtaking landscapes and unique wildlife but also for its thriving economy and commitment to innovation. As we step into a new era, the country is experiencing significant growth in several key sectors that are poised to shape its future trajectory. In this blog, we will delve into four major growth sectors in Australia: cybersecurity, tourism, renewable energy, and healthcare. Healthcare sector The healthcare sector continues to thrive as one of the most rapidly expanding industries globally, benefiting greatly from the impact of our ageing population. Projections indicate that by 2041, the number of individuals aged 65 and above in Australia will reach a significant figure of 6.66 million. While there have been discussions surrounding the apparent stabilisation of the ageing population, it is essential to consider the broader context of overall population growth. Despite potential levelling off in percentage terms, the actual number of older individuals in need of healthcare continues to rise steadily. This trend underscores the persistent increase in demand for healthcare services among the elderly population. Renewable energy At present, the renewables industry in Australia employs 28,000 individuals. However, this number is expected to surge to 45,000 by 2025, establishing it as one of the fastest-growing industries in 2023. With the imminent arrival of the global Net Zero 2030 goals, the world is swiftly embracing renewable energy sources as awareness of sustainability and environmental impact grows among consumers. Projections indicate that by 2024, renewables will account for nearly 33% of the world’s electricity production. In a significant milestone, the National Electricity Market reported that renewables already contribute to 50% of Australia’s primary electricity grid as of 2022. Rooftop solar takes the lead with an impressive 24% share, followed by wind power at 16%, large-scale solar at 9%, and hydroelectricity at 2%. Australia’s wind farm industry has experienced remarkable growth, expanding almost five-fold over the past ten years until 2021-22. It is poised for rapid expansion in the coming five years, with projected revenue growth of 52.6% in 2023/2024. Tourism Following three years of intermittent lockdowns, the travel industry is rebounding in 2023, experiencing a resurgence that surpasses previous levels of activity. A YouGov survey conducted for the World Travel & Tourism Council reveals that international travel is expected to surpass pre-pandemic figures this year, indicating a strong desire for people to explore and venture out once again. The positive news extends to the domestic front as well. In 2020, international tourist arrivals witnessed a staggering decline of 73%. However, the year ending September 2022 saw a rebound with 2.2 million arrivals, marking a remarkable 1184% increase compared to the same period in 2021. With the lifting of travel restrictions, the travel and tourism industry is experiencing a renaissance. According to IBISWorld, the top three fastest-growing industries in Australia all fall within the travel sector. Leading the pack is travel insurance, projected to witness revenue growth of 206.0% in the 2023-24 period. Following are foreign currency exchange, with a growth projection of 128.5%, and inbound tour operators, with an expected growth rate of 87.1%. The overall revenue forecast for the travel and tourism market in 2023 is projected to reach AU $20.08 billion, reflecting the robust recovery in the industry. Hotels are also regaining popularity despite the competition from Airbnb. Expedia reports that 60% of Australians are planning a hotel stay in 2023. Additionally, the desire for luxurious 5-star accommodations is on the rise, with the luxury segment expecting a remarkable 42.7% revenue growth for the 2023-24 period. Cybersecurity The cybersecurity industry in Australia has been experiencing significant demand for skilled professionals. The Australian Cyber Security Growth Network (AustCyber) estimated that by 2026, the cybersecurity sector in Australia will need an additional 18,000 skilled workers. The field of cybersecurity plays a crucial role in safeguarding every industry. In an era where businesses own websites and conduct online operations, the services of ethical hackers, known as white hat hackers, are in high demand. Their expertise helps companies protect their customers and maintain the integrity of their brand. When a business falls victim to a cyberattack and experiences data breaches, the stolen information quickly becomes public knowledge, posing a significant risk to the affected brands. In some cases, these incidents can lead to brand reputation damage and even business failure. As a result, the need for cybersecurity professionals is already substantial and is expected to grow further as more retailers and government departments rely on the internet for their operations. Is 2023 a good time to expand your business into Australia? Expanding a business into new markets requires careful consideration of various factors, including economic conditions, market trends, and growth prospects. Australia, with its stable economy, favourable business environment, and numerous growth opportunities, presents an ideal landscape for businesses looking to expand. Strong Economic Growth: Australia has a resilient economy that has shown consistent growth in recent years. According to the Reserve Bank of Australia, the country’s GDP is projected to grow by 4.5% in 2023, highlighting the robust economic outlook. This steady growth indicates a favourable business environment with increased consumer spending and business investments. Business-Friendly Environment: Australia is known for its favourable business environment and ease of doing business. In the World Bank’s Ease of Doing Business Index, Australia ranks 14th out of 190 economies. The country’s transparent legal framework, strong intellectual property protection, and efficient business registration processes create a supportive ecosystem for businesses to establish and expand their operations. Skilled Workforce: Australia boasts a highly skilled workforce, ensuring access to talent across various industries. The country has a strong education system and a high percentage of tertiary-educated individuals. As per the Organisation for Economic Co-operation and Development (OECD), around 46% of Australians aged 25 to 64 hold a tertiary qualification. This educated workforce offers businesses the opportunity to recruit top talent and drive innovation. Are you ready to expand your business into Australia? ANZPEO enables you to hire skilled workers quickly and compliantly. Speak to us today about
How will Artificial Intelligence be used to source skilled workers in 2023?
As Australian companies struggle to fill roles with the right talent amid one of the country’s worst skills shortages, many are taking a shot at Artificial Intelligence (AI) to source, interview and match candidates to open roles. It’s been an interesting few weeks for Artificial Intelligence. AI chatbot ChatGPT is being tested to detect early signs of Alzheimer’s, DALL-E is creating images from simple text, and Anthropic is working to build reliable and interpretable AI systems grounded on safety. Following years of disappointment, the technology has finally emerged from its “AI winter” and is making waves in all business areas, including recruitment. Between 35% and 45% of businesses are tipped to use AI talent acquisition technology to help source, shortlist and interview candidates in 2023. Just under three-quarters of businesses increased their spending on talent acquisition software last year, with the vast majority saying they will continue investing in it this year (Modern Hire, 2023). As Australia continues to suffer its most significant labour shortage in decades, businesses are now adopting AI to identify highly skilled candidates and automate some of the lengthy processes involved in shortlisting and selecting the suitable candidates for their open roles. Can AI effectively parse resumes for skilled roles at scale? Hiring managers often have hundreds of resumes and cover letters to scan through in the first round of shortlisting candidates. For skilled roles, there may be only a handful of qualified candidates hidden beneath them. At the best of times, hiring managers can only afford to spend as little as 10 seconds on each resume to identify the relevant qualifications – a specific degree, experience in a particular role etc. even though the vast majority of candidates are not qualified for the position. To solve this challenge, AI technology can identify qualified candidates at scale by crawling the text within each resume and matching it against specific keyword data. Budget airline Air Asia implemented a similar system to identify candidates from the thousands of applications they received based on how their skills managed the requirements of the role. Its recruiting team saved 60% of their screening time as a result. 2023 will leave behind reactionary hiring practises In 2023, businesses will leave behind the era of reactionary hiring and refocus on seeking out quality candidates; those with the right skills and tertiary qualifications but also passion and motivation to learn on the job. According to PwC’s recent report, however, just under half of all candidates decline job offers because of their dissatisfaction with the recruitment process. It’s clear that businesses need to work on their recruitment process, but they also need access to higher-quality skilled candidates to fill difficult positions. One aspect of AI that recruiters can use is data manipulation to analyse hundreds of applications for skilled roles that demand very specific requirements, such as specialists and engineers. “If you think about it, recruiting is a data-centric function with a lot of unstructured data found in people’s resumes and CVs (curriculum vitae),” Rowan said. “The sophistication in this process of matching has evolved from matching up skills with requirements to include analysis that helps determine candidate fitness for the role.” What tools can hiring managers use to shortlist candidate resumes for skilled workers? Utilising artificial intelligence to sift through candidate applications and source the best talent for skilled roles, without gender, age or race bias has become a valuable tool in the back pocket of hiring managers when it comes to filling roles with specific and nonnegotiable requirements. The process of sourcing, posting, searching, parsing and matching capabilities to job posts can save hiring managers an enormous amount of time. So, what are the most popular tools among hiring managers? Skillate Skillate is an SAP-developed talent engagement software for recruiters and hiring managers. The platform will write job descriptions and offer recommendations for more effective keywords. It will collect resumes from multiple sources (owned and third-party mechanisms), and match resumes to job requirements at scale by running them through their machine learning model, ranking and scoring them along the way. ICIMS Talent Cloud ICIMS Talent Cloud is an AI bot that sources, opportunity matches, and suggests skilled workers as candidates to hiring managers. The chatbot will automatically send answers to candidate FAQs and can schedule interviews in over 20 languages. It will parse relevant data from the resumes of each candidate and combine it with publicly available third-party information from sources like LinkedIn to create a unique profile for each candidate. Integrations available: text messaging, WhatsApp, Facebook Messenger and Teams. Fecher Fetcher, an AI-powered recruitment automation tool, employs a straightforward yet efficient 3-step sourcing, engaging, and tracking approach to guarantee a steady flow of suitable candidates and fulfil your hiring requirements. Fecher is particularly useful for hiring managers seeking highly skilled professionals, with a sourcing tool that provides access to the most suitable candidates with specialised skills and backgrounds. In addition, the platform has an automated outreach feature that hiring managers can send cold emails and personalised messages to candidates from. Contact ANZPEO to understand how our expert hiring managers can help you to source, hire and retain skilled workers in Australia.
Australian business news: Is 2023 the time to expand?
Like much of the developed world, Australian business news hasn’t been too kind on the economic outlook for 2023, with talk of an imminent recession. Australia is experiencing many of the challenges countries like the US, UK, China, and New Zealand are facing. Inflation is hovering at around 7%, energy prices are increasing, and the Reserve Bank of Australia has announced its eighth consecutive rate hike. Globally, there is political unrest in Ukraine and countries like China, and the UK are experiencing inflation, high interest rates and foreign currency market challenges. Australia’ early response to the pandemic Compared to the rest of the world, Australia’s economy has shown resilience to the devastating impacts of COVID, arguably due to firm COVID restrictions nationwide. Targeted lockdowns and tight border closures were aimed at containing the spread of the virus very early on, and vaccination numbers are some of the highest in the world. The government rapidly implemented a raft of economic stimulus’ worth 20% of GDP in the early stages of the pandemic to keep companies in business and minimise the long-term economic impact. A$20 billion was assigned to support businesses and households in the September quarter of 2021 alone. These efforts have paid off. Australia – a country home to just 0.3% of the world’s population – is projected to become the 12th largest economy in the world by 2023, according to Austrade’s benchmark report Why Australia. Other encouraging factors that make Australia an attractive country to expand your business into Low tax: Comparatively, Australia is one of the lowest-taxed countries in the world. 28% of the country’s Gross Domestic Product (GDP) comprises personal income tax and corporate profits. Social security taxes make up just 1% of GDP, compared to the OECD average of 9%. Goods and Services taxes make up just 7% of GDP compared to the OECD average of 11%. Low government debt: whilst Australia does have some public debt; it’s relatively low compared with almost all global economies. A 2021 report by the International Monetary Fund estimated that Australia’s government debt would be 43% of GDP in 2022, compared with the 89% average forecast estimated for developed countries. Growing services sector: the services sector has increased by 3.3% every year over the last 30 years, with the Information, Media and Telecommunication sector growing the fastest at 5% per year, followed by professional, scientific and technical services (4.8%). Source: Austrade’s benchmark report Why Australia. Australia is a leader in innovation International companies have long viewed the Australian public as early adopters of innovation and technological change, making it an exceptional choice to test technological advancements. Key Australian business news facts: Our scientific institutions are in the top 1% of the world in 15% of separate fields of research, including clinical medicine and computer science. The technology sector has grown by 26% since the pandemic’s beginning, becoming the third largest contributor to Australia’s GDP. Australia is ranked fourth in the world for digital consumption and sixth for fintech development, according to Euromonitor. An abundance of top talent that attracts global attention Our highly skilled workforce makes us one of the most forward-thinking nations in the world, ranking in seventh place for university education systems (International Institute of Management Systems) and eighth on the UN’s Human Development Index. Our workforce is among the world’s most highly educated. 47% of employed people hold tertiary qualifications or advanced diplomas. 75% of those working in professional, scientific and technical services and 64% in the information media and telecommunications sector have a tertiary education. In other Australian business news, what’s the economy like right now? As many global economies suffer, Australia’s most recent quarter saw Gross Domestic Product grow by 0.6%, driven by increased household spending, which grew by 1.1% from the previous quarter. Spending on hotels, cafes and restaurants increased by 5.5% as venues reopened and border restrictions eased, and spending on transport services increased by 14%. Vehicle purchases rose by 10% as global supply chain issues were alleviated (source, The Guardian). Household savings-to-income ratio also fell for the fourth consecutive quarter, going from 8.3% to 6.9%. This is commonly seen as a good sign when inflation is high. Australia’s treasurer, Jim Chalmers, has stated that the national economy is “performing solidly in the face of steep headwinds from overseas as well as considerable and compounding pressures on Australian families and businesses”. Although it’s common for quarterly figures to fluctuate, most economists expect Australia’s economy to slow significantly from December onwards but at least avoid a recession at the level expected in the United Kingdom and the United States. Shane Oliver, an economist at AMP, says there are still strong ongoing business investment plans. “The ABS capital spending intentions survey is up about 15% on a year ago… real business investment is expected to grow by around 5% over the year ahead.” Immigration is also on the rise, with borders opening once again. The country is experiencing a sharp increase in new visas for arrivals as the backlog works hard to catch up. The federal government expects net immigration of 235,000 after negative immigration in FY21. “The surge in immigration will help ease the labour shortage and tight jobs market… which in turn will help head off a surge in wages growth to levels well beyond those consistent with the inflation target.” Oliver has also addressed the large backlog of home-building work yet to be completed since COVID lockdowns, despite a 25% fall in new home-building approvals. Oliver also echoes the sentiments of the RBA in that the economy remains resilient. Interest rates will begin to slow in the coming months. The increase in wage growth and energy prices have not been as stark as in other countries, and US inflation is starting to slow and that “should benefit Australia, which is following US inflation with a six-month lag”. You can catch Shane Oliver’s complete response on the AMP website. Will 2023 be the year to expand your business into Australia? Although the
Australia’s Jobs and Skills Summit
Held in September, Australia’s Jobs and Skills Summit brought together representatives from unions, employers, civil society and governments to address the economic challenges caused by current labour shortages. The Summit and subsequent Employment White Paper that was released focused on: keeping unemployment low while boosting productivity and incomes delivering secure, well-paid jobs and strong, sustainable wages growth expanding employment opportunities for all Australians, including the most disadvantaged addressing skills shortages and getting our skills mix right over the long term improving migration settings to support higher productivity and wages maximising jobs and opportunities from renewable energy, tackling climate change, the digital economy, the care economy and a Future Made in Australia ensuring women have equal opportunities and equal pay Led by the Prime Minister and Treasurer and supported by other key ministers, the Summit recommended immediate actions and opportunities for medium and long-term reform. The key recommendations to come from the event covered a range of different areas, including: Technical and Further Education (TAFE) One billion in funding was committed to paying for free TAFE courses and more than 460,000 free TAFE places. Other training opportunities will be created to encourage more women, First Nations people, regional Australians and culturally diverse Australians to participate in the workforce. Measures will be put in place to reduce barriers to employment and increase apprenticeships. The Government also pledged to develop a comprehensive blueprint with key stakeholders to support and grow a quality Vocational Education & Training workforce. Overseas migrants One of the main contributors to Australia’s workforce shortages is a lack of migrant workers. During COVID, many immigrants and short-term visa holders returned home, which reduced the ‘pool’ of skilled and unskilled workers in Australia. At the Jobs and Skills Summit, it was decided to expand the permanent migration program from 160,000 to 195,000 people between now and the end of next year. For temporary workers and international students, visas will be extended and work restrictions relaxed. Funding has also been committed to fast-track the current backlog of visa applications. In addition to this, international students who study nursing, engineering, IT and teaching (to name a few) will be allowed to stay and work in Australia for an additional two years after completing their course. Master’s graduates will have their post-study work-rights visas increased from three to five, and PhD graduates will be able to stay six years, up from four. Fair Work The Government will update the Fair Work Act to create a simple, flexible and fair new framework that ensures all workers and businesses can negotiate in good faith for agreements that benefit them. These include small businesses, women, care and community services sectors, and First Nations people. In addition to this, the Government will: Consider options to support the Fair Work Commission build cooperative workplace relationships Consider how to best help employer representatives and unions improve safety, fairness and productivity in workplaces Amend relevant legislation to give workers the right to challenge unfair contractual terms Initiate a detailed consultation and research process on the concept of a living wage, reporting back in late 2023. Initiate a detailed consultation and research process considering the impact of workplace relations settings (such as rostering arrangements) on work and care, including childcare. The Government will also update the Fair Work Act to: Provide proper support for employer bargaining representatives and union delegates Provide stronger access to flexible working arrangements and unpaid parental leave so families can share work and caring responsibilities Provide stronger protections for workers against adverse action, discrimination, and harassment Women in the workforce To encourage female participation in the workforce, businesses with 100 employees or more will be required to publicly report their gender pay gap to the Workplace Gender Equality Agency. Employers with 500 or more employees must commit to measurable targets to improve gender equality in the workplace. Pensioner working hours Finally, pensioners will be able to earn an additional $4,000 during the 2022/2023 financial year without losing any of their pension. This is on top of the $480 fortnightly earning limit that currently applies. The goal of these changes is to deepen the talent pool and remove barriers to entry so more Australians can actively participate in the workforce, which should make a difference to wage pressures and skills shortages currently being experienced by employers. You will find the extended outcomes document with all the immediate actions and areas for further work here. Need to build a skilled team of employees in Australia? Contact ANZPEO for help finding, recruiting and onboarding the right people today.
How Australia is solving the labour shortage crisis
Australia is experiencing a labour shortage in 2022. With unemployment figures sitting at near record lows, finding skilled staff can be challenging. However, there are always solutions. Have a look at what is causing skilled worker shortages and some ways business and the government are working around the problem. Why is it hard to hire staff in Australia right now? Most of the factors contributing to the skills shortage are down to COVID-19. Among the problems the pandemic caused are: – Record high migration to regional areas – Low immigration from overseas, including international students and skilled workers – Difficulty in movement due to lockdowns and restrictions Add to these the ageing population, and it is no wonder that quality workers are hard to find. Healthcare and social assistance, accommodation and food services, freight/transport and professional scientific and technical services are amongst the hardest hit sectors, partially because of the lack of new migrants/students and also because of burnout caused by workloads during the pandemic. Solving the problem of labour shortages in Australia Operating a business means solving problems on a daily basis. Overcoming labour shortage issues can be mitigated with some or all of the following ideas: Recruit from overseas COVID-19 made life difficult for a few years but borders are opening back up and the option of welcoming overseas workers is open to employers once more. As an employer, you can investigate sponsoring overseas talent for work visas, or advertise to attract young people who are on working holiday or student visas. Some hospitality companies are taking drastic steps to appeal to staff, including offering free flights and $1000 vouchers. Hire young people The unemployment rate might be very low, but statistics can be deceiving. For example, the unemployment rate among young people is twice that of the older population. Young people are always looking for work, and even now, there is no exception. Some companies hesitate to bring on younger workers because of their lack of experience and perceived lack of enthusiasm. However, everyone has to start somewhere. You can soon fill your staffing needs by hiring young people and implementing training programs. The training may be a little extra investment in terms of money and time but the payout is loyalty and a more capable workforce. In Australia, there are incentives for companies that hire and train workers. Do a little research, and you might find your company eligible for a grant to help bring newcomers up to speed. Leverage technology Hiring new staff isn’t always the only way to fill vacancies in the modern world. Modern technology is constantly creating ways to take care of repetitive tasks so individual productivity can be improved. If your business is very paper-heavy, there may be ways to improve efficiency so you can do away with the need for additional headcount. The other way to leverage the digital world is to make the most of the gig economy. If full-time staff are too hard to find, look online for freelancers or use services like Airtasker or Upwork to have jobs completed without the need to pay someone full-time. Reset client and customer expectations It is important to communicate with your customers and clients while you fill the gaps in your team. Most people will understand if things are taking longer than they used to, especially if you are transparent about the situation. Hire staff in Australia with the help of a local PEO The bottom line is that if you need to hire staff in Australia, there are ways around the labour shortage. When you engage the services of a reliable and responsive locally based PEO, you can connect with the best recruitment firms and onboard new talent sooner. Need help finding and keeping good workers in Australia? Speak to ANZPEO today.
The office evolution in Australia
The modern office; what’s ‘normal’ in 2022? Things were already evolving but the pandemic fast-tracked changes to the way we live and work, in particular when it comes to offices and business headquarters. Being forced to stay home highlighted the fact that many people can now work from anywhere. Home offices and hybrid working are the new normal, and employers must embrace the change if they want to attract and retain the best people. These are the three most significant factors in the office evolution Working from home It’s well known that many Australians were forced to switch to working from home throughout the pandemic. At one point, data from the Australian Bureau of Statistics showed that 40 per cent of Australians were logging into work from their living rooms, bedrooms and home offices. Lockdowns and quarantine measures forced many Aussie employers to figure out how their team could stay safe at home and still get their work done. The result was a decisive shift to video calls and online chat. While working from home isn’t possible for everyone, and some people struggle with the lack of in-person interactions, this way of working can be a win for employers. One study, by Stanford University, of 16,000 workers over 9 months found that working from home increased productivity by 13%. The interesting caveat of the study was that it didn’t factor in people working from home with their children around (which fortunately is now less of an issue) and it had people showing up to an office once a week (more on that shortly). The hybrid worker Meeting in the middle of WFH and WFA is the hybrid workplace. Hybrid workers work both at the office and from home — general three days in one and two in the other. Companies are setting mandatory days so people can get together in person, collaborate and get back to the traditional office ‘watercooler’. They are also appreciating the value in freeing people from their regular commute. Hybrid work has placed different expectations on the modern office. All of a sudden, coming to work is an experience to look forward to. Companies are adapting by creating smaller but more flexible office environments (with hot desks and lockers, for example) and by introducing incentives like free lunches on the days when people are physically present. The Stanford report shared that In-person collaboration is necessary for creativity and innovation. The researcher found that face-to-face meetings are still essential for developing new ideas and keeping staff motivated and focused. With this in mind, creating the opportunity for regular in-person gatherings, even for WFA employees, should be kept in mind. COVID-19 safety The final factor in the new office is the still-present threat of COVID outbreaks. The pandemic is not yet entirely over, and the future remains uncertain. Modern offices provide hand sanitiser, protective barriers and opportunities for social distancing. When outbreaks occur, there are policies in place to enable people to quickly shift back to working from home, particularly if they have health issues that put them in a high-risk category. Is the office dead? The short answer is, no. The office may be changing, but it is far from dead. In fact, many overseas investors are still pouring money into Australian office spaces. Hong Kong and US interests have been snapping up billions of dollars worth of office space, in the Sydney and Melbourne CBDs, which shows the corporate world at least still has use for this way of working. Want to decide on the right office solution for your business in Australia? Talk to ANZPEO today.
2022 changes to Australian workplace relations laws
When you employ staff in Australia, you must take steps to comply with the latest workplace relations laws. In 2022, some of these regulations have changed. Here’s what you need to know about the latest updates if you employ people in this country. Workplace relations law in Australia Australian workplace relations laws are in place to protect the rights of Australian employees. They fall under three main categories: – Legislation – Industrial instruments – Common law Many laws protecting Australian employees also fall under the Fair Work Act 2009, which covers the majority of workers in Australia and protects their minimum terms and conditions. It is important to be aware that the Fair Work Act does not cover every industry. What’s more, some requirements differ from state to state. Recent changes to Australian workplace relations laws As of 2022, any company that employs Australian workers must be aware of several significant changes to Australian workplace relations laws. Vaccination policy Less a change and more a confirmation, The Fair Work Commission recently concluded a case that confirmed mandated vaccination policies are not unlawful. Based on the outcome of this case, an employer is entitled to implement a mandatory vaccination policy, even if there are no standing public health warnings. While the case was specific to the Australian Submarine Corporation (ASC), the ruling will most likely be held as a precedent should other cases arise. If your workplace is considering imposing a mandatory vaccination policy, it is worth noting the following conditions of the recent ruling: – Employees must be given time to either comply with the mandate or to decide to take other action. – The ASC is expected to review the policy after 12 months as the impact of the pandemic is rapidly changing – The ASC also must consult on mandatory booster requirements before making them mandatory. Mandatory vaccination is an evolving area of workplace relations right now. Check in with your ANZPEO for the latest information if you are considering a policy change. Domestic violence leave Another update to Australian workplace relations laws that is on the way is the implementation of domestic violence leave. The new Labor government intends to add ten days of extra leave for sufferers of domestic violence. A late addition to the plan also allows leave for casual workers who suffer domestic violence. This leave is intended to create a safety net for victims of domestic and family violence. Knowing they have the leave means they can take time off to escape their dangerous circumstances without fearing losing their jobs. Return to Work Laws In South Australia recently, return to work laws regarding injury claims have been given a shake-up. Previously, each injury was assessed and given a percentage rating, with 5% or more being the lowest threshold for a lump payment and 30% or more being labelled as a serious injury. Now workers can combine multiple injuries to create a sum percentage. So, an ankle injury of 3% and a shoulder injury of 29% will generate a total of 32%. Workers who meet the criteria for serious injury may be entitled to help with their medical expenses and weekly income maintenance. Workers with less than 30% may only be entitled to a lump sum payment. Minimum wage As of July 1st 2022, the Fair Work Commission has implemented a 5.2% increase in the National Minimum Wage. They have also increased modern award minimum wages so wages under $869.60 will attract an increase of $40 a week, and wages above $869.60 will increase by 4.6%. The high-income threshold The high income threshold restricts an employee’s access to an unfair dismissal claim (unless they are covered by an enterprise agreement/award). Until July 1st 2022, the high-income threshold was $158,500 per annum, but it has now risen to $162,000 per annum. The compensation limit for unfair dismissal has also increased as of July 1st, now coming in at $81,000. Superannuation This year also sees a rise in the minimum superannuation guarantee from 10% to 10.5%. The superannuation contribution base has also increased to $240,880 per annum, and there is no longer a minimum threshold except for persons under 18 years of age who are required to work at least 30 hours a week to obtain contributions. Need to know more about Australian workplace relations laws? Contact ANZPEO today.