Businesses that have difficulty attracting and keeping skilled workers often increase wages to remain competitive in the market workplace. This applies to both mainstream skilled
workers and apprentices.
But there are other ways you can materially reward employees, such as profit sharing and providing free or subsidised accommodation. The following examples show the
approaches some regional businesses have taken.
Before establishing pay rates and other material incentives, it’s essential to understand the prevailing market conditions for similar jobs.
Case Studies
Financial and other incentives
Modern Engineering & Construction Co Pty Ltd of Walla Walla, which manufactures silos, employs a variety of tactics to entice skilled workers from within and beyond the town’s borders.
Recognising that financial incentives are important, the company pays above-award rates to all employees, including apprentices. And, after six months on the job, workers can be part of a profit sharing scheme based on criteria such as productivity, efficiency and attendance history.
To make upskilling easier for workers, the company also offers flexible hours and paid leave for training and study commitments.
Productive apprentices
Many employers believe that an apprentice will only be productive in their third or fourth year. Grahame Bensley, owner of GB Auto Electrics in Orange, disagrees.
All apprentices are profit makers for his business, even though he pays them well above the award rate. This is possible because of good on-the-job training and the provision of interesting work rather than the menial tasks which many apprentices are traditionally given.
The result is that first year apprentices are able to complete tasks which would otherwise be done by third or fourth year apprentices, without any loss in quality and safety. Qualified tradespeople still check all work.
Bensley is also careful in his choice of an off-the-job training provider, ensuring that he and his apprentices are happy with both the pattern and quality of training.
Accommodation incentives
Two large horticultural businesses in Hillston in Central NSW are building onsite accommodation for permanent and seasonal workers.