How to Recruit and Sponsor Employees When Expanding Your Business to Australia

Building a team is one of the most important decisions a business will make when entering Australia. International companies usually have three options: recruit employees locally, transfer trusted staff from an overseas office, or sponsor skilled workers who cannot otherwise work in Australia. In practice, the strongest market-entry teams often combine all three.

The right approach depends on the role, the skills available in Australia, the candidate's visa status, the proposed salary and the company's longer-term plans. Recruitment and immigration should therefore be considered together from the outset. A recruitment campaign that begins without immigration input may need to be repeated, while a sponsorship plan developed without testing the local candidate market can lead to delays, unnecessary costs or a poor hire.

In this guide, Hillman & Associates Lawyers explains how overseas businesses can coordinate recruitment, Labour Market Testing and employer-sponsored visas when establishing or expanding operations in Australia.

Which roles should an overseas company recruit first

The first Australian hires should be selected according to the work the business needs to perform locally, rather than simply reproducing the overseas organisational chart. Common early-stage roles include:

·  a Country Manager, General Manager or senior executive to lead the Australian operation;

·  a Business Development or Sales Manager with knowledge of the local market and customer base;

·  an Operations, Supply Chain or Project Manager to establish local delivery systems;

·  a technical or product specialist who can transfer knowledge from the overseas group; and

·  finance, administration, customer service or compliance personnel as the operation grows.

A senior employee transferred from headquarters may protect the group's culture and technical standards. However, a local hire may understand Australian customers, commercial practices and workplace expectations more quickly. Businesses should assess which knowledge must be imported and which expertise is better sourced locally.

Recruiting employees locally in Australia

Local recruitment can give an overseas company immediate access to Australian experience, professional networks and market intelligence. It can also reduce immigration lead times where the preferred candidate already has unrestricted work rights.

A successful recruitment process should begin with a realistic position description and remuneration benchmark. The employer should define the role's actual duties, required experience, reporting line and location before advertising. These details may later affect the occupation selected for immigration purposes, the market salary assessment and the content of any Labour Market Testing campaign.

Hillman & Associates works with Australiance, an independent recruitment partner, to assist businesses with local recruitment campaigns and the practical implementation of Labour Market Testing.

Australiance supports startups and SMEs with local and international talent acquisition, recruitment and onboarding. Its Sydney-based team also works with businesses entering new markets. This makes recruitment support particularly valuable where an overseas employer has limited knowledge of Australian candidate expectations or does not yet have an established local HR function.

When Hillman & Associates and Australiance are involved early, the recruitment strategy can be aligned with the potential immigration pathway. Australiance can lead the candidate search, running the Labour Market Testing and recruitment campaign, while Hillman advises on sponsorship eligibility, visa requirements and the legal sufficiency of Labour Market Testing.

When should an employer consider visa sponsorship

Sponsorship may be appropriate where the best candidate does not hold unrestricted Australian work rights, or where the business needs to transfer a key employee from an overseas related entity. It can also help employers access specialist skills that are difficult to source in the local market.

The Skills in Demand visa subclass 482 is a common temporary employer-sponsored pathway. Depending on the circumstances, other options may include the Skilled Employer Sponsored Regional visa subclass 494, the Employer Nomination Scheme subclass 186, or a short-stay or other work visa. The appropriate pathway must be assessed for the specific employer, position and candidate.

Before making an offer dependent on sponsorship, the employer should confirm:

· whether the business is eligible to sponsor and, where required, holds or can obtain the appropriate sponsorship approval;

· whether the role corresponds to an eligible occupation and genuinely reflects the work to be performed;

·  whether the candidate has the required skills, qualifications, employment history and English-language ability;

·  whether the salary meets the applicable immigration threshold and Australian market salary requirements;

·  whether Labour Market Testing is required and, if so, whether it has been completed correctly; and

·  whether the proposed arrangement supports the company's temporary and long-term workforce plans.

What is Labour Market Testing

Labour Market Testing, commonly called LMT, is the process of advertising a position in Australia to demonstrate that the employer has tested the local labour market before nominating an overseas worker. It commonly applies to employer nominations for subclass 482 and subclass 494 visas, although exemptions and modified requirements can apply in particular circumstances.

Under the rules in force at the time of publication, LMT will generally need to be undertaken during the four months before the nomination is lodged. The position must generally be advertised in English through at least two qualifying advertisements, and applications or expressions of interest must remain open for at least four weeks. The advertisements must include prescribed information, and copies of the advertising material must accompany the nomination.

The legal requirements are technical and can change. Employers should obtain immigration advice before advertisements are published, particularly where the proposed nomination date is fixed, the role has recently been affected by redundancies, or the employer believes an international trade obligation or another exception may apply.

Why recruitment advertising and LMT should be coordinated

A well-run recruitment campaign and a compliant LMT campaign overlap, but they are not automatically the same thing. A compelling advertisement designed to attract candidates may still omit information required for immigration purposes. Conversely, an advertisement drafted only as a compliance exercise may fail to reach or engage the right candidates.

Coordination allows the business to:

·  use a position title and description that accurately reflect the proposed nominated occupation;

·  advertise through platforms that reach suitable Australian candidates and satisfy the relevant legal requirements;

·  include the required information without weakening the employer's recruitment message;

·  retain copies, screenshots, invoices and campaign records needed for the nomination; and

· assess suitable local candidates genuinely before deciding whether overseas sponsorship is required.

Recruitment evidence should tell a coherent story: the business identified a genuine role, tested the Australian market properly, considered suitable applicants and then selected the person best placed to perform the work.

How to retain locally recruited and sponsored employees

Finding the right employee is only the first step. International companies can lose strong candidates when the Australian role lacks a clear mandate, local decision-making authority or a realistic progression pathway.

Retention is usually improved by:

·   setting clear responsibilities, reporting lines and performance expectations;

·   offering remuneration that reflects the Australian market;

·   providing structured onboarding and regular contact with overseas leadership;

·   giving local managers sufficient authority to make timely decisions;

·   supporting international employees and their families with relocation and settlement;

·  monitoring visa expiry dates and sponsorship obligations; and

·  discussing permanent residence pathways early where they are commercially appropriate and legally available.

Visa sponsorship should not be treated as a substitute for a good employee experience.

Sponsored workers have Australian workplace rights, and employers must comply with employment law as well as their immigration sponsorship obligations.

How Hillman and Australiance can assist

Hillman & Associates Lawyers and Australiance offer complementary support to international companies building teams in Australia.

· Australiance can assist with talent strategy, local and international recruitment, candidate search, running labour market testing and onboarding support.

·  Hillman & Associates can advise on business sponsorship, employer nominations, visa applications and potential permanent residence pathways.

Involving both advisers at the planning stage helps the recruitment campaign, employment offer and immigration process move in the same direction. This can reduce duplicated advertising, avoid preventable visa issues and give the business a clearer workforce plan for its Australian expansion.

Speak with us before you recruit

If your company is establishing or expanding operations in Australia, Hillman & Associates can assess the immigration strategy before recruitment begins. We can work alongside Australiance to coordinate local recruitment, Labour Market Testing and sponsorship planning.

Contact Hillman & Associates Lawyers to discuss the roles you need to fill, the candidates you are considering and the most suitable pathway for building your Australian team.

Partner resource: Australiance

Disclaimer: This article provides general information only and does not constitute legal or migration advice. Immigration criteria, salary thresholds and government policy may change. Advice should be obtained for the employer, position and candidate before any application or recruitment campaign is undertaken.