The Australian immigration system has recently been disrupted by numerous reforms imposed by the Albanese Government.
Some of these reforms are beneficial to small businesses, however, others are likely to have detrimental effects on small businesses’ workforce, which the government is failing to consider.
The key changes that will have an impact are the reduction of international students and enforcement to prevent ‘visa-hopping’. With 63% of international students and 67% of other temporary visa holders (outside of Skilled, New Zealand citizens and Working Holiday Makers) being employed, the workforce will take a hit from these changes. Figures from ABS also found that one-third of all businesses are already unable to find adequate staff, proving how damaging it would be to lose such a large portion of the workforce due to these restrictions and cuts.
However, there are several ways small business owners can prepare for these changes before these effects start to hit their business and operations.
How can small businesses prepare?
Improve staff compensation & benefits – Business owners should consider improving staff compensation and benefits to help attract and retain staff in the long term. Implementing measures such as an enhanced benefits package, flexible working arrangements, training opportunities, increased pay and maintaining a positive workplace culture are all things that staff value. Therefore, by improving staff benefits, small businesses are more likely to retain staff and attract more potential employees.
Automate processes – Small businesses could try to automate processes to cut down on the staff needed. For example, cafes and restaurants may consider introducing QR codes to each table to reduce the need for wait staff and ease the ordering process for the business. Another example might be hostels, small hotels and motels may want to adopt an online check in system that allows guests to check in and receive their key code online.
Consider partnerships – Automating processes may not be an option for some small businesses. If this is the case, small businesses may want to contemplate partnering with other local businesses to share the workload. This may also spark interest from new customers. For example, a local bakery could look to sell their products through a local cafe rather than having their own store, which would also allow the cafe to outsource the production of baked goods.
Speak to your local MP – Getting vocal about these changes and speaking directly to local MPs about the potential effects of these changes on small businesses and the workforce allows businesses to be involved in this conversation before the immigration cuts start taking effect. Lobbying for support policies and engaging in public dialogue also allows businesses to have their say in attempting to influence the outcome of these immigration cuts and ways to reduce the negative impacts on business staffing.
Consider a range of staffing options – Businesses may also need to review how roles can be filled with local staff rather than international staff. Our research found that despite the cost of living, more people are choosing to work part-time. With this in mind, businesses should consider advertising two part-time positions to cover a full-time position. During busy periods, such as school holidays or weekends, businesses could also consider hiring school aged staff, who would be most available during these times and cost less to employ.
While visa changes could have a detrimental effect on small businesses, appropriate planning can help businesses to reduce the severity of the effects. By following the strategies suggested above,small businesses will be in a good position to survive and…even thrive!
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