Has the economic downturn changed Oz Migration?
Yes - although there have been no changes to Australian migration rules - the fact is - businesses decide when, how, and whom they employ.
Our Associates tell us that right now the trend in business is to - ensure survival.
They are sticking to these rather obvious major policies:
- Ensure your financial structure is flexible and sound
- Retain as many customers/orders/contracts as you can
- Ensure you make at least a small profit on each transaction
- Trim production & staff costs to the absolute minimum
- Ensure you retain your well qualified and trusted employees
- Release as many unqualified or unproductive employees as you can
- Employ qualified 'Sub-contractors' where ever practical
Why - well it doesn't take a 'Rocket Scientist' to work it out.
In the current economic climate - everyone is just guessing about what is going to happen today - let alone tomorrow or next year - so if you want to stay in business you had better ensure you're running Slim & Smart.
Survival means marketing, selling, buying, producing, and employing effectively.
As projects/orders/clients drop off - as they are already and will continue to do - it would be stupid to retain any unqualified staff who may not be as accurate or productive as others, in your tasks force.
Why retain ineffective Permanent Staff along with the numerous overhead costs involved.
Let's face it - workplace entitlements, work conditions & pay disputes, unplanned lost time, and production errors -
cost big money.
So an obvious answer to
reduce the risk - is to supplement the task force with
qualified Sub-contractors.
Sub-contractor costs can be defined accurately from the start - and because of the contract the results required are clearly defined.
The bonus for business is that if the agreed result is not provided - then a compromise or replacement can be negotiated via frank discussion and the normal legal procedures - without intervention from workplace officials, or workplace disruption.
Now about migrants seeking Permanent employment or 457 visas.
In this financial climate would you tie your company into an New Migrant Employment Contract - with a minimum 24 (usual 48) months commitment - when you could retain a Qualified Sub-contractor?
Would you commit to employing a gardener, home cleaner, or even rent a hire car if you knew that should you find out that you have made the wrong choice - or your finances might become stretched - that you're stuck with them for a minimum of 2 years?
Our Associates believe that it is unlikely that the permanent employment situation will improve for at least 24 months - opportunities may improve by the beginning of 2011.
