Professional Documents
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Contents About
In late 2016 a decision was taken by two major
professional bodies in the Victorian hospitality sector
pg. 3 About to conduct a small scale survey of their membership.
The issues and businesses that brought the survey to life
There was a perception at a grass roots level that the
accusations made against the sponsors of 457 visas
pg. 4 Background were detrimental to business, and were unfair in that
An overview of the key concerns relating to hospitality recruitment and retention that they lacked balance in respect of general practice by
Australian employers face venue owners in the hospitality sector. The Australian
Hotels Association Victoria (AHAV) and Community
Clubs Victoria (CCV) reflected the concerns of their
pg. 6 The Survey members and wanted to respond to a succession of
An outline of the demograpics created by survey participants media reports critical of the 457 visa program.
pg. 8 Apprentices AHA and CCV have collaborated with TSS to survey
A lack of participation in vocational training opportunities is generally seen as a their memberships. Questionnaires were developed
contributing factor in the diffi culties venues face in sourcing skilled workers locally. around issues of recruitment, apprenticeships
and training in general, and the employment and
sponsorship of people on temporary visas. The
pg. 10 Perception of Skills Shortages attached report considers the results, and highlights
An analysis of current local recruitment practices, temporary visas and the use of 457s practices and perceptions in the industry at present.
TSS
TSS is an Australian owned company of recruitment
and immigration specialists providing services to
numerous hospitality venues as well as services
across other industry sectors to some of Australias
largest employers. The company was a pioneer of the
one-stop-shop combination of hospitality recruitment
services with immigration for venues needing to
sponsor workers from overseas, and is dedicated to
2 long term staffi ng solutions for its clients. 3
When looking at the wider industry it is clear that
the use of skilled working visas is just one part of
understating the skill shortage problems the industry
faces. Apprenticeship training and strenuous working
conditions also play key roles.
4 5
The Survey
The survey was conducted on-line with members of AHA Vic and CCV able to respond on an anonymous The respondent base included venues employing temporary visa holders on 457 visas, Working Holiday Maker
basis. TSS has a substantial client and subscriber base within the hospitality industry. These businesses were visas and Student visas. The respondents were also asked about their sponsorship of Permanent Residency
also given an opportunity to take part anonymously. As the responses were provided on a voluntary basis, it (i.e. the employment of ENS/RSMS visa holders):
is a self-selecting sample.
The survey was conducted between November 2016 to February 2017. A total of 131 responses were received. 58% of respondents employ staff holding 457 visas
45% of respondents employ staff holding Working Holiday Maker visas
35% of respondents employ staff holding Student visas
38% of respondents employ staff holding ENS/RSMS visas
22% of respondents employ no staff holding any of the above visa types
42% of respondents indicated they do not take part in the 457 visa program.
Do you or have you employed any international staff on the following Australian visa types?
Locations
The locations of respondents were spread
Venue Type across seven states and territories (only the
The types of venues that participated in ACT is not represented), but are weighted
the survey were self-described as indicated heavily towards Victoria (over 60% of
in the pie chart. The sample is weighted respondents).
towards pubs, but includes a range of venue
types, with hotels, restaurants and clubs There was a 58% regional / 42%
together making up 36% of the sample. metropolitan split in the respondent base.
Size of Venues
The size of the venues captured
a range in terms of the numbers
of employees, but was weighted Use of Multiple Visa Types
towards medium sized venues. 86% Further, 69% of employers of 457 visa
of respondents were from venues holders surveyed also employ people on
with 11+ employees. 37% were from other temporary visas and/or permanent
venues with 51+ employees. 19% were residency. This represents 41% of the
from venues with 101+ employees. respondent pool.
6 7
Apprenticeships The Commonwealth convened the
Apprenticeships Reform Advisory Group
(ARAG) in September 2015 to provide advice
With specifi c reference to apprentices, 49% of respondents reported employing apprentices, with 62% of
respondents indicating they would like to hire more employees eligible for apprenticeships or traineeships.
Training The survey results indicate a marked difference in the employment of apprentices with regards to 457 visa
Survey respondents were asked about their training practices. A range of training opportunities are employment:
on offer within the hospitality sector as demonstrated by the table below. 457 visa sponsors 63% reported that they employ apprentices
What types of training do you offer your current employees? non-457 visa sponsors - 28% reported they employ apprentices
457 visa sponsor respondents represent 75% of venues that employ apprentices.
Hospitality is a massive growth area, and were just not attracting enough people to
meet that increase in the market.
Anne Cazar, Assistant Director of Tourism and Hospitality at TAFE NSW
Apprentices: fi nding and training the next generation, Hospitality Magazine 29 January 2015
8 9
Perception of Skills Shortage
Local Recruitment, Temporary Visas and the Use of 457s
The immigration process is far too long and you never As a small business it is very hard to justify the cost
know how long it will be and its pot luck as to when they of recruiting overseas staff through an agent and this
arrive We need quick access to staff as our business is when funding for small business can be used as it
suffers at the very long process. is the only possible way of getting the right person for
your business and recruiting firms have the skills and
Pub, Regional Victoria correct practices to obtain skilled migration and should
be encouraged to cut out the illegal use of immigration
Speed the process up or let them start on interim and under-paying these people.
approval.....its ridiculous, no chef can wait 4 months to Pub, Metropolitan Melbourne
Only 15% of respondents turned to international recruitment or professional recruiters in the first instance, be approved before starting work? No one can for that
with 85% preferring to try local recruitment strategies. When faced with the inability to find staff locally, the fact For small business the initial costs which total over
percentage turning to international recruitment or professional recruiters rose to 29%, with 71% of respondents $5,000 make it [457 visa sponsorship] un-achievable.
still preferring more local recruitment strategies. Restaurant Metropolitan Sydney Pub Metropolitan Melbourne
10 11
JobOutlook data
2017 data
The JobOutlook data suggests a major exit from the
industry for chefs and cooks at around the age of
35. It is possible this creates structural impediments
New hospitality apprentices need a to keeping the labour market primed with skilled
JobOutlook is an initiative of the Commonwealth nancial incentive after each level of people. This is in part reflected in the survey data.
Department of Employment. The Agency reports completion subsidies by the Government. 28% of respondents reported employees leaving the
on data collected through JobSearch, education and I see this as the only way to motivate profession as a reason for an employees departure.
training courses on the myfuture website as well as application from Australia.
other sources.
When someone leaves your business, what is the
Hotel, Regional Victoria most common reason?
JobOutlook reports a growing number of vacancies
for chefs and cooks:
12 13
Transitioning to Permanent Residency Key Findings
One of the few instances where a specifi c immigration
pathway between two different visa types has been While it is not possible to know the basis for self-selection in deciding to take part
What percentage of your 457 visa holding in the survey, the profi les of respondents suggest that the sample base is relatively
established in Australias legislative architecture is employees transition to PR?
the transition from a 457 visa to employer-sponsored diverse.
permanent residency. Essentially, those workers who
have been employed full-time on 457 visas for at While there are weightings in relation to venue types, venue size, etc, and the sample
least 2 years may on that basis qualify for permanent size is small, we believe there is merit in considering the fi ndings as indicators for the
residency sponsorship subject to an offer of on-going pursuit of further research into the areas of training, recruitment and visa policy in
employment for at least two years going forward. the hospitality sector, particularly where responses indicated a majority of responses
in one or another direction.
There are also mechanisms in immigration law for
hospitality establishments to sponsor employees for An example is the high proportion of employers in the hospitality sector
permanent residency without the employees having that fi nd local recruitment diffi cult, with more diffi culty experienced in
worked for two years previously. The rules to qualify regional locations than in metropolitan locations.
are more stringent.
A second example is the apparently higher incidence of employment of
Signifi cant changes to this transition pathway apprentices by survey respondents who are 457 visa sponsors
accompanied the Prime Ministers announcement
on the abolition of 457 visas. Chefs will still remain Third-party data suggests that a growing vacancy rate in the hospitality sector
eligible for transition, but with more stringent coupled with problems in the training framework and a propensity for early exit
requirements. It will be no longer possible to sponsor from the profession appear to create structural impediments that inhibit labour
Cooks for permanent residency under the new rules. supply from the local market. Against this backdrop, key survey findings are:
The respondents were asked to comment on their The data suggests wide-spread industry reliance on - 85% of employers prefered local recruitment when it is available to
sponsorship activity, and the results suggest that these transitional pathways is integral to employers
90% of 457 visa sponsors transitioned staff from 457 use of sponsored visas to achieve longer-term
them. 457 visas are not a preferred avenue of recruitment, and used
visas to permanent residency. stability in their kitchens. only by a proportion of hospitality employers after other attempts
have proven unsuccessful;
Transition to Permanent Residency appeared The announced changes changes which will prevent
marginally greater in metropolitan than regional the sponsorship of Cooks look set to disrupt this
locations. signifi cantly. - Rather than avoiding the training of local sta, 457 visa sponsors
exhibited a greater willingness to employ apprentices;
The organisers of the survey would welcome further investigation of the issues raised - particularly in relation
to co-ordinated and facilitative training and immigration policy with a view to a helping hospitality venues
achieve stability of employment within their kitchens.
14 15
TSS Immigration Australian Hotels Association (NSW)
www.tssimmigration.com.au www.ahansw.com.au
hello@tssgroup.com.au enquiries@ahansw.com.au
(03) 9421 1020 (02) 9281 6922
Level 1
1 Little Collins St
Melbourne, 3000
Victoria
5/19 Gertrude St
Fitzroy, 3065
Victoria
Media Enquries
For all media enquries please contact TSS Immigration at hello@tssgroup.com.au or call 03 9421 1020