Unlocking Potential:

The Cost Benefits of Hiring International Candidates in Western Australia’s Skill-Shortage Sectors

Introduction:

Western Australia’s mining and transportation sectors are the backbone of the region’s economy. However, severe skills shortages are posing unprecedented challenges, affecting operational efficiencies and economic growth.

One viable solution to bridge this gap is through the recruitment of skilled international candidates. This blog explores the cost benefits associated with hiring international talent to mitigate the skills shortages in these critical sectors.

Immediate Skill Gap Bridging:

• Recruiting internationally can offer an immediate solution to the prevailing skills shortage dilemma. Interestingly, some international candidates are already present in Australia, seeking new sponsorship due to a variety of circumstances.
• Additionally, others are in the country on Working Holiday visas or COVID-19 visas, both of which permit up to 12 months of employment with a single employer. There's also the provision of the 400 visa option, enabling candidates to arrive in as little as four weeks to undertake specific project work.
• By tapping into this readily available pool of international talent, businesses can fill essential roles swiftly, ensuring that operations continue seamlessly. This timely resolution not only prevents operational disruptions but also positively impacts revenue generation.

Reduced Training and Development Costs:

• International recruitment often brings in candidates who already possess the requisite skills and expertise, significantly reducing training and development expenses.
• The quicker onboarding process ensures that these candidates can contribute to business operations sooner, which in turn, translates to better productivity and profitability.

Diverse Perspectives and Innovation:

• A multicultural workforce often heralds a plethora of ideas and fresh perspectives.
• The diverse problem-solving approaches and innovative solutions generated by a multicultural team can lead to operational efficiencies, ultimately giving businesses a competitive edge in today’s global marketplace.

Potential Wage Savings:

• In sectors facing skill shortages, employers often find themselves obliged to offer salaries at the higher end of the pay banding to attract the necessary talent.
• This trend not only inflates the salary expectations of the existing Australian labour force but also exerts financial strain on the employers.
• International candidates, on the other hand, often present more flexible salary expectations.
• This flexibility allows employers to secure skilled staff at competitive salaries, fitting various levels within a job’s banding or budget allocation, whilst still being fair and equitable for all.
• Consequently, employers can better manage their payroll budgets while still addressing the skills shortages, making international recruitment a financially sound and equitable strategy.

Government Incentives:

• The Australian government recognises the importance of addressing skills shortages and has rolled out several incentives to support businesses in hiring international talent.
• One notable initiative is the Construction Visa Subsidy Program, launched by the State Government.
• Starting from 1 July 2023, this $11 million program provides grants to help offset the costs associated with supporting overseas workers beginning their employment in Western Australia's building and construction industry.
• These subsidies significantly reduce the financial burden on employers, making the recruitment of international candidates a financially attractive proposition. Additionally, this program fosters a conducive environment for international recruitment, facilitating the bridging of skills gaps in critical sectors.

The Cost of Unfilled Positions and Inaction:

• When critical positions remain vacant, the financial and operational repercussions can be substantial. Here are some of the costs associated with unfilled positions or inaction in addressing skills shortages:

Lost Revenue:

• Every day a position remains unfilled, is a day of lost productivity and revenue. Especially in sectors like mining and transportation, where operations are highly dependent on skilled labour, the absence of required personnel can lead to a significant decline in output and revenue generation.

Increased Workload on Existing Staff:

• Unfilled positions often result in an increased workload for existing staff. This can lead to employee burnout, decreased morale, and a potential rise in turnover rates, further exacerbating the skills shortage issue.

Operational Delays:

• Projects may get delayed or deferred due to the lack of necessary personnel, affecting the business's ability to meet contractual obligations.
• These delays can tarnish the business's reputation and may lead to financial penalties.

Higher Overhead Costs:

• In some cases, businesses may resort to overtime or hiring temporary staff to cover the gaps, which can be more costly in the long run compared to hiring full-time employees.

Missed Opportunities:

• The inability to take on new projects or expand operations due to staffing shortages can result in missed opportunities, hindering the growth and competitiveness of the business.

Compromised Quality and Safety:

• Insufficient staffing can also compromise the quality of work and safety standards, which can lead to legal liabilities and damage to the business’s reputation.
• Addressing the skills shortages by recruiting skilled international candidates can significantly mitigate these costs and risks, paving the way for sustained business growth and operational excellence.

Conclusion:

• The skills shortages in Western Australia’s mining and transportation sectors necessitate innovative recruitment strategies.
• Hiring international candidates is a cost-effective solution that not only bridges the immediate skills gap but also brings in a wealth of benefits including diverse perspectives, potential wage savings, and government incentives.
• We invite businesses to explore international recruitment as a strategic move to overcome the prevailing skills shortages and unlock their full potential.

Contact Information:

For tailored recruitment solutions and to discuss how international recruitment coupled with immigration solutions can benefit your business, contact CTS People email: [email protected]