Presentation is loading. Please wait.

Presentation is loading. Please wait.

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

Similar presentations


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 www.flboverseas.com.au

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


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

Similar presentations


Ads by Google