Jun 2021

Labour Shortage: COVID to impact labour for up to 5 years: Future and Solutions for Accounting Firm Owners

By: Odyssey General, Outsourcing
Tags: COVID19, labour shortage

Advertising for jobs has been made more complex not only due to digitisation of the advertising landscape, but also due to mobility issues of employees due to border lockdowns (both state and federal). It’s been noted one in five Australian businesses are facing a labour resource issue.

Labour shortage has been over the news lately with some industries experiencing an industry wide shortage. In an article posted earlier this month by the Business Insider Australia, the tech sector seems to be hit the hardest.

Leaving aside the complex question of whether the Australian education system is preparing and producing sufficiently qualified graduates ready for work in the industries that need them, we are also facing international and domestic travel restrictions which are halting not only new students, but also temporary resources from offshore.

Before travel restriction, individuals from the IT industry made up the largest cohort of those awarded visas under the Global Talent Independent (GTI) visa program from July 1 to December 31 last year, according to the Department of Home Affairs. (link)

Without the foreign workers, Australia is left with only a handful of local talents who, according to one article, are demanding 50% higher salary than before the pandemic. This does not apply to the tech industry alone, but others as well. It’s economic theory that when supply (of staff) exceeds demand (by business owners), the price of supply will rise until an equilibrium is reached. I discussed this matter in detail in my previous blog post.

So, what is the solution for Australian firm owners, and particularly Australian accounting firm owners?

Many are still having high hopes for a short border closure, with a post pandemic world involving the lifting of travel restrictions and labour shortages reduce so businesses can return and hire as normal. The real question here is: when is that? Though vaccines are being distributed around the world and that developing countries are starting to receive the doses as well, only 9.6% of population fully vaccinated worldwide, and most of these in developed nations. According to experts, it will take approximately 6 years to reach the global coverage of 75%.

The reality is many businesses can’t wait that long. Future forward thinking employers have started changing their mindset and looking at different alternatives. Among those, outsourcing is probably one of the fastest and most sustainable solutions. By sending work overseas, employers can save time and money on finding, training and retaining local talent. Instead, the focus can be placed on the core activities that help drive business growth. The only question then would be which outsourcing partner is right for your firm?

If you’d like to find out how Odyssey can assist with your Australian accounting outsourcing then drop us a line.

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