Top recruitment tips during a labour shortage in Australia
Overcome Australia’s labour shortage It’s no secret that there is a shortage of good workers in Australia right now. Unemployment is hitting near record lows, with the Australian Bureau of Statistics recording a drop to 3.5% in June. While high employment is good for the nation for many reasons, it means finding skilled and productive staff can be difficult. So what do you do to ensure that your workplace is both a magnet for high-quality workers and a haven for your current people? Let’s start with attracting employees. Beat labour shortages in Australia You want potential employees to see your company as a desirable workplace so there are plenty of responses to your job advertisements. Here are some ways you can do that: Marketing Many businesses now apply a marketing strategy to attract talent. An easy place to start is with a careers page, which will highlight the many reasons to work for your organisation and give people an easy way to send through their details. Your careers page can have videos promoting your workplace and even blog posts about what it’s like to work there. Don’t be afraid to add some personality so your company stands out. List the benefits people receive when working with you such as rostered days off, subsidised healthcare or regular team gatherings. Pay competitive salaries At the end of the day, money talks. If you can offer above award wages (award wages are the minimum standard for many professions, particularly trade-based roles), you will be able to attract more applicants and have more flexibility around who you choose. Offer perks Other perks in addition to a competitive salary will put your business ahead of the competition. – Working from Home Allowance: Over the past few years it has become more commonplace for some sectors in the workforce to work remotely from home. You may consider paying you workers a Working from Home Allowance to cover costs such as electricity and internet cost. – Food: There’s nothing better than a free lunch. Even if it’s only once a month, a free lunch can be an excellent motivator and a way to develop camaraderie across your team – Health insurance: In the USA, many companies include health insurance as part of their package but it is not the same in Australia. However, offering a monthly health insurance rebate of $100-$200 can be an appealing perk – RDOs: Some businesses and organisations in Australia offer their workers a nine day fortnight — they work slightly longer hours or take a shorter lunch break in return for every second Friday or Monday off work. – Flexible hours: Staggered start times can make a big difference to people’s schedules and stress levels. It’s easy to set a window for start times, e.g. between 7:30 am and 10 am, so long as people work their standard 7.5-8 hours per day. Retention Of course, to reduce the need to hire, you need a strategy to hold onto your existing team. What’s most important is creating a place people enjoy showing up to, whether virtually or in person. – Workplace culture Culture exists at every workplace and can be tricky to define but when you get it right you have fast-moving teams who get more done with less effort. One way to guide culture is to have clear values and to share them as part of the hiring and onboarding process. When challenging behaviours arise, you can refer people back to the company values and have constructive conversations. People work better together when they have a sense of kinship and belonging. Hosting regular catch ups and events is a great way to foster a stronger team. If you have people working remotely, consider some online games and activities. – Be free with your feedback Staff work better when they know where they stand. Frequent, constructive feedback can help your employees improve while also letting them know they are noticed and valued. Scheduling regular catch ups also allows them to raise any concerns, frustrations or issues. – Build your social and environmental conscience Studies have found employees and in particular the younger generation will hesitate to accept a job if their employee doesn’t have a strong Corporate Social Responsibility (CSR) policy, and 83% would be more loyal to a company that helps them contribute to social and environmental issues. CSR means actively contributing to the community and taking steps to minimise waste and build a more sustainable future. Some studies have even found the youngest workers prioritise purpose over salary. Focusing on improving your business in this area can help to attract ‘bright young things’ and build their loyalty. Want more information about how to quickly fill staff vacancies in Australia? Talk to ANZPEO.
Tackling pay raise requests in Australia in 2022 and 2023
Pay raises in Australia Inflation has hit hard in Australia this year, with costs jumping for essential items like food, fuel and energy/home heating. With expenses increasing across the board, companies that pay staff in Australia may find staff start to ask about pay raises. There are different ways to handle this question without increasing the risk of losing good people. When are staff entitled to a pay raise? When you pay staff in Australia, it is generally left entirely to the employer’s discretion as to when staff receive a pay raise. Pay raises usually depend, on three factors: 1. Contract conditions: Sometimes, a staff member’s contract stipulates that they are entitled to a raise when they meet specific requirements. If they meet these conditions, as an employer you must implement a pay raise. 2. Policies: In other cases, the conditions will sit under a company policy rather than an individual contract. Savvy staff will be aware of your company’s policies and employee agreements and there should always be someone on your team who is across this area. 3. Award or enterprise agreements: Awards and enterprise agreements related to pay rates in Australia may force your hand and make you implement a pay raise. Pay raises like this usually centre around minimum wage to counter the effects of inflation. Many Australian companies grant staff a pay raise at the beginning of the financial year (which falls on July 1st), after the latest consumer price index (CPI) figures are announced. The amount of the raise will usually match the rise in CPI —for example, over the twelve months to the June 2022 quarter, the CPI rose 6.1%. Another way to pay staff in Australia is according to staff members’ key performance indicators (KPI) over the year. A raise may be between two and five per cent, depending on performance. This system may be set up to rotate or follow a ‘scale’ so not all staff members receive a raise at the same time. Negotiating pay raises A staff member may come to you asking for a pay raise at any time. Unless it is related to any factor above, when you pay staff in Australia, you are not obliged to grant them a raise. If you can’t increase their pay, there are other strategies you can put in place to help them work towards a higher salary: – Help them to upskill: Explain to your employee they are not entitled to a raise at this time but walk them through ways they can increase their skills so they can increase the value they offer to the business in the future. There may be an opportunity for them to access training within the business or they may decide to independently seek further education. – Talk about promotion: Allowing an employee a pay raise may soon mean you are inundated with other employees asking for similar treatment. You may decide to discuss having them work towards a promotion instead. – Negotiate a raise: Maybe you can afford to give them a raise but not as much as they are asking for. Do some negotiating, and you might be able to find a compromise that works for both you and your staff member. What to do if you can’t afford a pay raise It’s difficult to give your staff raises when so many other business costs are increasing and profit margins are dwindling. To add to this, the superannuation guarantee has increased to 10.5%, which means your staff are receiving a pay increase of sorts. If offering more money is absolutely off the table, there may be other ways to add value to the workplace experience. Consider exploring: – Flexible working hours – Working from home options – Staff discounts – Novated car leases (where the employee salary sacrifices their car payments in order to reduce the amount of tax they pay – Real-time payments (access to pay each day rather than fortnightly or monthly for a small fee) – Equity (or company shares) – Incentives like weekly free lunches or Friday drinks – Subsidised childcare – Subsidised health insurance (most Australian businesses do not pay for health insurance) or gym memberships At this point in time, what’s most important is to be clear and honest in your communication. People always have the right to ask for a pay raise and you have the right to reject the request but there are ways to do so without impacting the relationship. Want help in understanding how pay raises work for staff in Australia? Talk to ANZPEO today.