So, the time is nearly here for the once-a-year change to rates, brought on by the annual update to the Awards we use as the basis for paying our people. On that basis, all of our clients can expect to receive a new Rates Sheet soon – incorporating the ~2.5% increase in wages and on-costs resulting from the latest review.
Every year we do our best to confine the rate increase to whatever the Award has increased by – which this year means 2.5% on top of hourly wage rates – and the resultant flow-through to on-costs calculated on them – including Payroll Tax, Superannuation and Workers Compensation insurance. We recognise that wages are a significant proportion of operating expenses in every business and so always do our best to keep the increases to a minimum – and therefore to stay as affordable as possible.
We also recognise that there are – and will always be – organisations in the industry under-cutting the rates we charge in an attempt to secure ‘bulk’ hours at discounted rates. This year, like every year before it, we will resist the temptation to discount rates – and destroy the margins available to businesses supplying casual personnel to our industry. The trend among our larger clients to have Procurement ‘specialists’ attempt to bully suppliers in to cutting their margins is stronger than ever recently. But bending over to their demands is simply a race to the bottom – resulting in our entire industry making no profit. We have never – and will never – be a part of this. We love our industry too much.
When asked how we can afford to take this attitude, we have a fairly simple response. We have only the very best people on our books and we are still the only organisation we know of who offers a true 24×7 service to all clients and personnel. Less than 1 in 10 of the people who apply to work with us end up being invited to join our Brigade – because our people simply have to be able to hit the ground running, in any environment.
For our larger clients, this means that they often secure up to 80% of their hospitality personnel from agencies who agree to discount – but come to us for casuals when the job is important, the role is pivotal – or they simply can’t afford to mess things up. And, quite frankly, we’re very happy to be providing this critical resource to industry even if we’re only supplying a small part of demand. In reality, we simply can’t find enough really good people to supply the large demand for casual hospitality personnel.
So bring on FY16 – we’re looking forward to working with our national Brigade and our growing national client base – and making sure it’s a fantastic year for one and all!