The implementation of JobKeeper 2.0 see employers adjusting their approach to recruiting. At McKenna and Associates, we assist our clients in ascertaining the best legal recruitment strategy moving forward, with the goal of always maintaining a premium workforce.
The return of full rate payment
The 70 billion Jobkeeper economic support by the Federal government was created to attempt to combat the economic impact of coronavirus. As eligibility is retested, many will find JobKeeper slowly coming to an end.
During this period, certain companies introduced innovative solutions to retain staff. An example is Domain, who created Project Zipline, where the option was 20 per cent of salary package over 6 months in Share Rights, or elect to reduce working hours.
The option was taken by over 90% of staff, and The Australian Financial Review’s Media and Marketing Editor Max Mason recently reported with the project winding back in October, Domain is expected to return to full staff and pay with no job cuts.
For many industries, present changes to JobKeeper kick off a re-evaluation of the company budget and cost base as they slowly return to providing full-rate wages. This, of course, includes careful consideration of present and future recruitment.
Salary adjustments, pay freezes, and recruiting
The Small Business Development Corporation of WA offers the blog JobKeeper and JobSeeker: new phase details, with updates as further announcements are made, and offers links to relevant ATO website pages and fact sheets.
Many companies are naturally working on ways to retain as many staff as possible. Some legal firms are choosing to instigate reduced salaries or freezing pay rates in response to the changing economic climate.
While bonuses and raises have frozen at certain firms, the lack of a severe outbreak at this point has allowed WA to exist in a unique bubble of economic opportunity. For many, recruitment continues apace.
The Western Australian legal industry spans firms that are global, national and local. Recruiting caps may differ if the directives are part of a larger initiative. What is clear is that the need to secure high-quality candidates is as important than ever.
Negotiating conditions and benefits
When recruiting, it’s best to be clear on a realistic annual salary, given the present situation. If the likelihood of downward wage adjustments or a wage freeze is high at your firm, take this into account from the outset, and adjust the initial offer.
Being upfront will pay dividends, in terms of establishing an employer-employee bond. Otherwise a salary reduction or freeze early in the contract could create trust issues, and impact your chance of long-term retainment.
A number of legal firms are negotiating changes in conditions with their staff to offset salary freezes or reductions. Consider adopting this approach during the recruiting process. Are flexible hours or work from home arrangements a possibility?
Open lines of communication are key. Different candidates have different needs, and employee benefits can be wide-ranging. For some, extra leave may appeal. For others, a company parking bay could inspire them to sign on!
The power of quality recruitment
Avoid the error of only steeling for staff reductions as JobKeeper winds down. With a number of legal practitioners in WA experiencing increased need for recruitment, it’s imperative your company plans for all contingencies over the coming months.
As legal recruitment specialists, McKenna and Associates understand better than anyone the importance of exemplary staffing and ongoing strategizing, especially in the ever-evolving and unpredictable market that is 2020.
We’re committed to continuing the McKenna & Associates legacy of impeccable recruitment. Our team serve both potential employers and employees in the West Australian legal industry by delivering high performing and positive results for all parties involved.