Media agencies can survive without Poms, but we don’t want to
OMD’s Martin Cowie discusses the impact of abolishing the 457 visa and explores why media agencies benefit from working with overseas talent.
In an ironic twist, Malcolm Turnbull took to social media to deliver a worrying blow to the media industry’s access to overseas talent.
Our PM announced that 457 visas will be abolished and with it the business-sponsored route to Australian permanent residency that is so attractive to off-shore media professionals. The effect of these changes will inevitably put increased pressure on a market that already runs with a 6% vacancy rate, according to the MFA.
Ever since I arrived in Australia 13 years ago, on the very same 457 visa that is being abolished, there has been a long-standing joke about the number of ‘Poms’ in the industry and it’s true that for a time many media agencies were led by those ‘Poms’.
Whether they took roles that should have gone to Aussies is open to debate, but most people would agree that the Australian media industry also benefited and grew from the contribution of many quality 457 visa imports.
So, what exactly is happening?
The 457 will be replaced by Temporary Skill Shortage visas but the ‘Marketing Specialist’ profession that agencies normally apply under will now only qualify for a two-year visa (with one potential renewal) and no route to becoming a permanent Aussie by being sponsored by a workplace. The new visa will also be subject to a higher minimum salary ($65,000 excluding super) and police checks. Labour market testing will also be mandatory.
Of course affected individuals should check with an immigration agent to see if their personal situation differs in any way to the above.
A further blow arrived in the Budget when the Treasurer revealed plans to impose a levy to raise $1.2 billion from businesses looking to sponsor overseas employees under the new Temporary Skills Shortage visa.
Businesses will incur a levy of either $1,200 or $1,800 per year per sponsored temporary employee, depending on the turnover of the business. Over the course of four years (the maximum duration a TSS visa can be granted for) businesses can expect to fork out $4,800 or $7,200 for each of their sponsored TSS visa holders. These fees are in addition to the upfront costs of lodging a Standard Business Sponsorship and Business Nomination, the first two steps of the employer sponsorship program, as well as any professional fees for immigration lawyers or agents.
All existing 457 holders will be able to see out the full term of their visa and those who have been on their 457 with an existing employer for two years as at March 2018, will be eligible to apply for permanent residency as usual. However, those under two years, who have travelled from afar on the promised route of becoming an Aussie, have had that opportunity snatched away from them.
There is an alternative permanent residency opportunity for overseas people which is to apply for a 186 Direct Entry visa. This is a two-step visa in which a business nominates an employee and they then apply directly as a skilled overseas worker.
However, this visa application can take many months and no media agency is able to offer jobs eight months in advance of the starting date!
What will be the impact and how can agencies respond?
The numbers of overseas employees in the industry is not clear but if we base it on OMD, as the biggest media agency, then it’s 10%+ of existing staff – not insubstantial. The reduced numbers will likely have two major effects:
- Wage pressure on existing staff
- Increased poaching between agencies
With already existing staff shortages and employee remuneration pressures how can agencies react?
- Retention strategies: Agencies must double their efforts to make their agencies the most attractive place to work in the market so that employees see no reason to leave
- Promote from within: Agencies will need to fast track their young stars to management positions more quickly than previously
- Training: With fewer experienced imports, agencies will have to invest further in upskilling their existing employees
- Stars and succession: If turnover does increase then it’s vital to have policies in place to at least retain star performers
Universities: The industry will need more ‘comms’ qualified Australian graduates and working with universities and other education institutions will be increasingly important.
The MFA is also speaking with the Comms Council to consider a joint lobbying response to the government, although this may be a long shot.
So, can we survive without the Poms? Of course we can. Do we want to? No. Overseas talent offer alternative views and practices that we can learn from to enrich our local industry.
With the abolishment of the 457 visa, perhaps it is time for media agencies to follow PM Turnbull’s lead. Social, and other forms of media, might be our answer to raising the profile of our industry and attracting Aussie talent to replace the missing flow of new ‘Poms’.
“Those under two years, who have travelled from afar on the promised route of becoming an Aussie, have had that opportunity snatched away from them.”
I was under the impression ALL 457 visa holders, even those who will have been on the visa for less than two years as of March 2018, would still be eligible for residency when their two years is complete.
User ID not verified.
So on balance the overall impact sounds positive yes ?
User ID not verified.
A skills shortage of ‘marketing specialists’ in this country
Now i’ve heard it all…
User ID not verified.
Most concise & accurate summary I’ve read Martin of the issues now upon us. And every aspect of the affect you identify on big media agenices is affecting the big creative agencies from right now.
User ID not verified.
Here’s a tip to reduce the vacancy rate and stop poaching: stop paying the fat cats in the holding companies their ridiculous margins.
If the industry paid fairly and provided meaningful training and development for staff, you wouldn’t need to stress about overseas talent being in shorter supply.
When will agencies see the light?
User ID not verified.
There are plenty of amazingly talented people in our industry that are being overlooked right now. It seems beyond comprehension that a local business needs 10% of the staff to be imported. Try getting a few more female, senior leaders in the business to tip that percentage and it may be a more fair playing field. This is just un-Australian in my view.
User ID not verified.
there is a huge skills shortage of marketing specialists in this country across many job functions
we don’t recruit enough at entry level
we don’t retain enough within the industry and within this market
User ID not verified.
I agree entirely. It amazes me how many people seem to be whinging, when agency fat cats are driving Ferrari’s and the grafters are often highly experienced migrants, who accept a meager wage, because they want a Visa. Modern day slave labour. It will be interesting to see if wages will go up? I can’t see it happening.
User ID not verified.
What’s missing is the right — replaced by the far right. It’s deplorable that The Australian is still peddling climate change as a hoax, and the Telgraph will not say a negetave word about Trump.
User ID not verified.
‘However, those under two years, who have travelled from afar on the promised route of becoming an Aussie, have had that opportunity snatched away from them.’
I’m really sick of hearing how people who have come on temporary Visas have had ‘opportunities snatched away from them’ and how hard done by they are.
Years ago, in an effort to improve my education and skills and increase my attractiveness as an employee, I took a year off work and travelled overseas to complete an MBA at a high level business school. The course and all my expenses were self funded and I was away from friends and family for a year.
Since returning I have applied for hundreds of jobs and, in 95% of cases, not even receiving a response. If I do get a response it’s ‘You don’t have enough experience or exactly the right skills. Good luck with your career’.
Where are my opportunities? Where is my reward for taking a risk and working hard to improve my career? What happened to the ‘fair go’? It doesn’t exist because people who come here from overseas and secure jobs would rather import more talent from their home countries rather than support and develop the local talent.
Companies cannot be trusted to grow and develop local people as part of developing and growing their business so the government has had to step in and force them to do so.
User ID not verified.
As someone who this directly impacts, I think the Australian marketplace will inevitably suffer from removing the marketing specialist PR route. My current role went to market three times without finding a suitable candidate before I filled the vacancy. I finished top of my Master course which produces about 15 domestic marketing graduates per year. I have made a significant investment in this country, only to now feel that the country no longer wants me even though my skills are highly valuable and in demand.
User ID not verified.
I have made a huge investment and received no reward either. You have a better chance to get an opportunity as a migrant than as someone born here.
User ID not verified.
As I said previously, my role was advertised three times and not filled by an Australian candidate. In addition, sponsor organisations spend significate resources to secure candidates on 457 visas. So I think there are absolutely skills shortages within the marketing specialist category. Removing this category only increases these shortages and widens the skills gap, making Australia less competitive internationally.
User ID not verified.
The reason it wasn’t filled is because they want people who have experience rather than having to train and develop people’s skills. There is no way there is a lack of marketing skills in Australia especially given the number of people completing MBAs here. That is just a ridiculous statement. There is an attitude in Australia that local talent is somehow inferior. Hopefully by being forced to taken on local people the company’s will see that they are wrong.
User ID not verified.