As the Australian economy moves closer to the end of government JobKeeper support, many businesses are grappling with the reality of what this will mean to them, and their employees. The recently announced extension to JobKeeper has delayed the inevitable to some extent but will require a new round of assessments with a tiered system of payments and changes to casual and part time eligibility that may make it difficult for many businesses to claim. A recent study by the Australian Bureau of Statistics, revealed that 30% of small businesses and 24% of medium sized businesses, only have enough cash on hand to support their business for less than 3 months. 10% indicated they could only survive for a month. With the length of recovery being relatively difficult to estimate, SMEs need to make some tough decisions in readiness for the end of the JobKeeper subsidy.
As a business owner, you’ve no doubt felt like you’ve been riding a rollercoaster of issues and emotions, especially if you’ve had to lay off or stand down staff. Just navigating the restrictions has been a challenge in itself - in addition to the impact of customers limiting their spend.
JobKeeper has been vital in keeping the economy moving, even if it’s at a slower rate, but what happens come October when JobKeeper is reduced and even further down the track when it ends for good? Keep in mind that other concessions such as PAYG tax deferrals and loan interest pauses are also due to end. The reality is that small to medium sized businesses are going to be at the forefront of saving the Australian economy and it’s in everyone’s best interest if business owners look at things from a focussed commercial perspective. If your business is to survive in the long-term and continue to provide services and employment, then it needs to be set up to work as cost effectively as possible now. Your focus is to keep your doors open, and keep operating with a view to grow and scale again when the economy can support that growth.
Remember, these issues are vital for your business’ survival and you should be investigating all options available to you, including potentially outsourcing some tasks to a lower cost offshore resource.
Outsourcing could be seen as a temporary solution to ease costs but it could also be a long-term strategy for growth. And it’s your local team who will concentrate on that growth while lower value tasks are completed by a less costly labour force. With a saving of up to 70% on overall employment costs, it’s an option that makes post-covid business very viable. It’s all about getting you back to business in a new state of normal, then growing steadily while operating in a cost effective way.
The end of JobKeeper is in sight so now is the time to begin planning, investigating and making some difficult decisions. Outsourcing may just be one of the ways to keep your business afloat without subsidies. So if you’d like to learn more about the types of work you can outsource and how to manage the process, sign up now for our 12 module outsourcing eCourse.
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