When considering recruitment of your team you will need to determine the “On-cost”. It will be necessary to provide a fair and competitive package to find and retain the best talent for your new and growing business. There are generally several key costs of employment for permanently employed staff in Australia. These include:

• Base Salary
• Superannuation (“super” or pension) is mandated and paid by the employer for all eligible employees. 
• Annual Leave is usually four weeks per year and paid at the employee’s base pay rate.
• Public Holidays. These vary from state-to-state (11 to 13 days) but there are at least 8 National Public Holidays observed as part of the National Employment Standards (“NES”). There are complex rules for waged employees working on Public Holidays.
• Sick Leave. Generally, most awards* allow for 10 days sick or personal leave per year.
• Workers Compensation Insurance. Based on the total annual payroll, “WCI” is a mandatory insurance levied on employers covering (almost) all employees. The % rate varies depending on the industry and the nature of the role(s). The rate is fixed each year by state statute and cannot be negotiated.
• Payroll Tax. This is a state government tax on annual payroll (including superannuation) which is payable over a certain company payroll threshold (g. $1M) specified by each state.
• The cost of recruiting an employee may range from A$5,000 for a base-grade employee upwards to the full retainer costs of headhunters.

* Awards: The pay rates of nearly all employees are governed by a series of over 120 industry-specific rates set and administered under the terms of the Fair Work Act 2009 by the Fair Work Commission and enforced by the Fair Work Ombudsman.

The exact nature of these costs will depend on the awards (there are also enterprise agreements and other registered agreements, but these typically don’t relate to Beachhead’s target client market) and they must be fully investigated prior to recruiting staff. Given the above on-costs of employment and the OH&S responsibilities of employers, in some circumstances, it may be practical to outsource some business functions.

Beachhead provides advice on benchmarking and implementation of compensation plans and employee benefits including tax and superannuation (pension). This includes sourcing and reviewing secondary market research for compensation and benefits.

Beachhead provides a full range advisory and management services for payroll and benefits.

• Benefits: advice and implementation of employee benefits, and importantly what benefits to avoid.
• Employee Onboarding & Offboarding: From initial contracting through the legal requirements of capturing employee data and preferences (e.g. preferred Super provider) to establishing fortnightly or monthly payroll, Beachhead can support the entire sequential process. Equally important, is a fair, safe and secure method of offboarding employees for whatever reasons they may be leaving.
• Payroll Services: Processing, reconciliation, approvals and payments of payroll. Ensuring compliance and accuracy with award, entitlements and salary changes is an ongoing responsibility.
• Payroll Reporting: All statutory requirements for ATO & employee notifications on both a payroll period (fortnightly or monthly) and annual basis are fully automated and covered within our services.
• Superannuation: Employers in Australia are required by law to make at least minimum superannuation payments, or contributions - the super guarantee (SG) - for all eligible employees. Employers must pay super regularly by the due date each quarter for all eligible employees. Beachhead can source and contract relevant superannuation providers, undertake ongoing management, employee set-up and payments. It should be noted that employers do not get to mandate a super provider – employees are entitled to nominate their own and employers must accept their nominations even if that means a different super provider for each and every employee.

There are distinct types of insurance that are mandatory or may be needed when recruiting staff.  These include WCI (as discussed above and below); optional and, in certain circumstances required, but best avoided, if possible, are health, life and travel insurances.  These latter three are NOT typically offered in standard Australian-resident employee compensation packages due to the impact of Fringe Benefits Tax (“FBT”) but health insurance is a legal obligation for inbound employees working on an employer-sponsored visa.

Workers Compensation Insurance is compulsory and covers employees against injury, illness or death in the workplace.  Employers must provide workers compensation insurance for employees through an approved insurer. Each state and territory operates its own Workers’ Compensation Scheme with different rates and processes, though the concept is similar, and the overarching federal legislation is national.

When providing any other insurances as a benefit to an employee, tax implications need to be considered including Fringe Benefits Tax (“FBT”).

Beachhead can advise on relevant insurances and source and contract with suitable insurance providers as well as provide guidance on FBT.

Any non-Australian citizen will need a visa to travel to and stay in Australia.   The Australian Government Department of Home Affairs is the primary government migration and visa agency and provides detailed up-do-date information on migration and visas. www.homeaffairs.gov.au

• Business Visas: There are several visa options for people seeking to undertake a business visit, own or manage a business in Australia, or invest in Australia.
• Employer-Sponsored Visas: Visas are also available for businesses to sponsor and employ skilled workers who have recognised qualifications and skills or experience in particular occupations required in Australia.

Visas are subject to regular review and the suite of options changes frequently and they all have associated obligations and conditions. It is recommended that you seek professional advice with a Registered Migration Agent (authorised by the Migration Agents Registration Authority [“MARA”]) for advice on migration, visas, intended activities and obligations.

Beachhead provides general information only and works closely with several preferred Registered Migration Agents to provide immigration and visa assistance, advice and services.

Beachhead can provide executive support for your business, whether that be for a month, a quarter or longer – our senior executives and country managers are on call to work with your executive team in your head office or regional headquarters.

Beachhead has provided interim exec services for clients in the UK, the US, Canada and Australia. Increasingly, Interim Management is being considered to resolve corporate recruitment for key roles either as:

• a short-term solution whilst a full executive search project is being undertaken, or
• to fill specific gaps in a company’s management experience profile for a time-limited period.

Whether it be on a part-time continuing basis or a fixed period full-time assignment, Beachhead can provide the right management resource at the right time without the complexity or commitment of a full-scale recruitment process.