As a business that brings in overseas workers, it’s important to think about the financial commitment. In this article, we look at some considerations you need to make.
These are particularly relevant if you are bringing in people on temporary skilled (457) visas.
First, think about relocation costs for your overseas worker
How much can you reasonably put towards relocation costs for your intended worker(s)? Relocation costs can be simple. They can also be complex, depending on your business and your culture. They might be as low as $7,000 or as high as $65,000.
Some things that you might consider in defining what you do and do not pay for might include:
- flights
- car hire
- temporary accommodation, both during transit and during settlement period
- shipping of household goods
… and whether or not your employee is bringing family.
Second, the family question
Some overseas workers will come on their own, at least initially. But there are others to whom family responsibility is important, and bringing families might be a vital part of gaining that employee.
In this case, it changes the nature of all of the first round of costs, because you have to multiply many of them (such as flights) to fit the number of people who are coming to Australia. It changes the type of accommodations required, the types of vehicles, and so on.
Depending on your business, you may also want to consider whether you need to pay school fees; and, if so, what types of schools are necessary.
Some workers will prefer that their children attend private schools, for example; so working to set that up may require you to pay school fees, or subsidise uniforms.
Third, think about your time commitment
Bringing in an overseas worker is not like bringing in a worker from interstate. You will have to do a lot of interpersonal work to make their settlement simple and comfortable.
- To do this, you will need to consider your own business and training costs as part of the process.
You may require, for example:
- additional training time
- dedicated management
- clear and obvious administration and systems
- orientation time
… and even cultural inductions or programs to help them feel part of the community.
Think about how you intend to recoup what you spend
Even though this all seems like a lot of outlay, there are ways to recoup what you spend on your overseas workers.
Some employers sign specific agreements with their employees that include clauses for repayment of flights and accommodation. Others will include clauses about what happens to the finances if the relationship does not work out.
For example, will you ask the employee to repay 100% of the initial costs if they leave within six months? Or 50% if they leave within 12 months?
What sort of scale can you arrange that will be suitable to both parties, and will make negotiation – and possibly severance – an easy matter?
The Centre for Innovative Practice at Edith Cowan University in WA released a report titled, 457 Visa Workers in the Western Australian Resources Industry: The benefits and costs for business, migrant families and the community. You can download a copy of this file here [PDF]. The report includes some of the models that you might consider, which have been successful in businesses in WA.
And don’t forget about immigration itself!
For more information about the investment required for immigration law regarding your employees, give us a call. We’ll be able to work with your specific situation, and give you a clear indication of the sort of investment you need to make.
