Employing skilled migrants

Skills shortage solutions, while limited, include employing skilled migrants. We look at why and how SMEs should be employing skilled migrants to take advantage of overseas talent.

The announcement of a 30 percent boost to permanent residency places for skilled migrants in the recent budget announcement makes a strong statement about the Rudd Government’s approach to addressing long-term labour supply issues.

In 2007/8, 103,500 skilled migrants came to Australia as permanent residents. Many were recent Australian university foreign graduates who became on-shore migrants, some were off-shore migrants, fast-tracked into the country on the basis that they have skills and experience that certain sectors of the Australian market desperately need.

In addition, around 46,000 Temporary Business Long Stay (457) Visas were issued. Research by RT Kinnaird & Associates suggests that the health, manufacturing, construction and, to a lesser extent mining, sectors have been strong users and beneficiaries of the 457 program, although accurate information is not easy to find.

Australian business owners have an important role to play in ensuring the skilled migration program can work for them. As one of the major providers of employment and sources of productivity in Australia, an SME’s ability to use skilled migration as a labour resource will be one of the keys to ensuring that a positive boost in the long-term productivity of the nation is achieved.

There is no question the new Federal Government is trying to make it easier for business to hire skilled talent from overseas by streamlining processing times. This is due to the direction from the Minister for Immigration and Citizenship Chris Evans that a backlog of 457 visa applications be cleared by the end of June. Consequently, the number of 457 visas being processed has jumped by more than 50 percent each month.

In addition, the department is responding quickly to applications; if all visa documentation is in order, nomination and sponsorship approval can be received within 48 hours, compared to the previous three-to-four month wait before this new initiative was in place.

Yet there is a gap that still needs to be bridged between Australia’s skilled migration program and SMEs. LIVE IN australia.com has spoken to many businesses who indicate that a lack of available skills is limiting the growth of their business. Ironically, we are also in contact with many overseas skilled workers who indicate a willingness to work yet cannot find a sponsor. What this suggests to us is that the vast majority of business owners are reluctant to employ an individual that they cannot meet and talk to directly.

The issue of how Australian employers can take advantage of the skilled migration program starts with understanding exactly what commitment they’re expected to make as a sponsor. In its description of 457 sponsor obligations, some of the key items of interest to employers are the following requirements:

-Ensure the cost of return travel for a sponsored employee is covered
-Ensure that a sponsored person holds any licence, registration or membership that is mandatory for the performance of work by the person
-Pay all medical or hospital expenses for a sponsored person arising from treatment administered in a public hospital (other than expenses that are met by health insurance or reciprocal health care arrangements)
-Ensure that, if there is a gazetted minimum salary in force in relation to the nominated position occupied by the sponsored person, the person will be paid at least that salary
-Make any superannuation contributions required for a sponsored person while the sponsored person is in the business’s employment.