Making Financial Sense

AUSTRALIA'S PRODUCTIVITY RIDDLE

Australia is experiencing its worst decade of productivity growth in 60 years, with Reserve Bank Governor Michele Bullock recently raising concerns.

Business owners are dealing with familiar constraints —labour shortages, rising salaries, and increasing employment benefits. In many service-based industries, staff costs often top the list, and making monthly payroll can be incredibly stressful.

But there’s an overlooked advantage: the opportunity for arbitrage. Access to a global pool of offshore talent that can significantly reduce staffing costs by 70-80%, directly improving your bottom line or providing funds for productivity growth.

Offshore staff also removes the need for capital expenditure on bigger office space, allowing you to convert fixed costs into variable costs, hold onto your cash, and remain flexible to scale up or down.

All these savings can be reinvested into productivity improvements using many of the latest software tools on the market.

EASE OF BUSINESS

When you understand the ease of business and the cost vs friction matrix you need to weigh up:

- Different time zones

- Remote work challenges

- Cultural and communication barriers

- Lack of face-to-face rapport

Post Covid almost every organisation has learned to navigate these frictions easily and are perfectly set up to thrive in this new environment.

It's time to review your legacy systems, methodology and hiring practices if they no longer make economic sense.

THE 3-TO-1 RATIO

Imagine being able to hire at a ratio of 3-1 without sacrificing quality. What impact would that have on your sales, marketing or delivery of service? What would that do to your company's profitability or growth?

Download our free salary guide to help you understand the typical salary ranges of Filipino staff.