According to May 2022 data from the Australian Bureau of Statistics, the country has a total job vacancy of more than 480,000. This is equivalent to a 13.8% increase in labour shortage from February 2022.
Australia relies heavily on worker migration. This explains why the government raised their permanent immigration intake to almost 200,000 this year. However, about a million prospective employees are stuck due to border restrictions and blowout in visa processing times.
Another probable cause of labour shortage is the continuing demand for salary increases. Hence, Australian business owners must find a way to fill job vacancies in their company without breaking their bottom line.
This is where outsourcing can be helpful. Here are five ways having an offshore team can help fix the labour shortage in Australia.
1. Access to Global Talent Pool
Hiring local employees may limit your capabilities to search for talents that suit your vacant job posts. If you cannot get the skilled employees you need in Australia, you may be able to find them in another country.
Outsourcing enables you to access a larger talent pool and hire employees from miles away. In relation to this, the Philippines is at the front and centre of outsourcing because of the following:
- Filipinos speak fluent English with a neutral accent. It is also the formal language used in schools, universities, and businesses.
- The Philippines has over 2,000 higher education facilities that develop a massive pool of qualified talents.
- Known for being caring and friendly, Filipinos have thoroughly embraced the ‘western’ culture. This ensures cultural compatibility between you and your offshore team.
- The Philippines has economic zones that support businesses and initiatives for the Business Process Outsourcing industry to thrive.
2. Huge Savings in Labour Costs
Outsourcing to the Philippines allows you to save up to 70% on labour costs. This is due to their affordable cost of living. Another reason is that outsourcing eliminates the financial burden of renting bigger office space to accommodate your employees.
In addition, working with a BPO company means they have the tools and technologies necessary to manage an offshore team. This includes hiring and onboarding the right employees and ensuring they are appropriately compensated. Working with a BPO company also enables you to comply with labour laws.
3. Re-Engineer Your Workforce
Aside from saving on labour costs, outsourcing can enable you to consciously re-engineer your workforce – designing a workforce which is more agile, flexible & compatible with your growth aspirations.
Routinely job descriptions in Australia can be VERY broad – but is this the best construct of Jobs in your business? If one person in your business is responsible for 33 tasks and they resign – how much institutional knowledge walks out the door & how long will it take you to train your new hire to be proficient in those 33 tasks?
Outsourcing can provide you the opportunity to examine roles to streamline tasks so that staff can be more rapidly onboarded and trained, which in turn helps create more specialised roles and career paths for your team to progress within.
At PeoplePartners BPO we provide differing engagement models, including Remote @Home Solutions. This allows businesses to hire work-from-home employees and make their job offer more attractive to top talents.
4. Scalable Response to Enterprise Demands
Cost-effectiveness is one of the many advantages of outsourcing. Depending on your short-term and long-term demands, you can also decrease or increase your outsourcing needs.
Suppose you have a long-term project. This may prompt you to hire and train more people. However, doing so can consume significant resources. Luckily, BPO companies in the Philippines provide simple and transparent pricing. This means you can use outsourcing to amplify your workforce without significantly affecting your bottom line.
In addition, your outsourcing partner can help you hire and onboard your offshore team. They can also help set up the processes and systems needed to fulfil the project.
5. Reduced Burden of Employee Turnover
As of February 2022, Australia has a 9.5% employee turnover rate. This means that Australian businesses replace nearly 1 in every 10 employees every year.
Here are four ways a high turnover rate can impact your business:
- Lower employee morale. Employees leaving the company can decrease the morale of those who remain. That’s because employee turnover could be blamed on management issues that increase the tension in the workplace.
- Decreased productivity. As your employee numbers decrease, you are increasing the workload of your remaining staff. This can lead to overwhelm that impacts their productivity.
- Lost sales. Low employee morale and a decrease in productivity can hinder your employees from doing their business function, which is to provide customer satisfaction. This can cause a decline in sales and revenue.
- Higher recruitment cost. Studies show that the average cost of employee turnover is 33% of an employee’s annual salary (in direct & indirect cotsts). This means that to replace an employee that earns $100,000, you will spend $33,000!
Working with a BPO company reduces the impact on employee turnover. That’s because they can help you hire culturally compatible employees and provide a competitive compensation package that will not cause a significant dent in your bottom line.
Leverage Outsourcing to Fill Job Vacancies
With labour shortage or an all-time high in Australia, business owners are clamouring to fill vacant job posts. Fortunately, there are five ways outsourcing can help you address employee shortages:
- Access to a global talent pool
- Huge savings on labour costs
- Re-engineering your workforce
- Scalable response to enterprise demands
- Reduced burden of employee turnover
When you work with an outsourcing company in the Philippines, you can fill job vacancies in your company. It also ensures that your offshore team is appropriately compensated and you comply with employment laws.