Battle for staff sees businesses offer $2k sign-on bonus

Sydney’s small businesses are offering thousands in sign-on bonuses simply for agreeing to take a job in a bid to battle for staff.

Aspiring dishwashers, waiters and chefs are being offered thousands of dollars for doing absolutely nothing as the city’s restaurants offer lucrative sign-on bonuses in a bid to attract staff.

Industry experts say government payments of $750 a week have reduced the incentive for people to work, while the scarcity of working holiday-makers has meant restaurants have had to scale back operations after coming out of lockdown.

That is the case for Bondi’s Pompei pizza restaurant, where George Pompei has said even offering a wad of $2000 in cash just for agreeing to take on the job had failed to attract any applicants.

“Out of three applicants who we actually spoke to over the phone, nobody has turned up for an interview,” he said.

George Pompei, owner of Pompei's, in Bondi is offering $2000 to anyone who wants to work as a dishwasher, waiter or cook. Picture: Justin Lloyd

“We’re heading to our really busy period in summer, the travellers and students are not going to appear suddenly so we have had the decision to close on Mondays and close for lunch from Monday to Thursday because we don’t have the staff for the roster.”

“It is really impacting our ability to function – to provide the level of service we would like to provide it is becoming increasingly harder.” Mr Pompei who normally has a mix of longtime staff and working holiday visa holders is not alone in offering sign-on bonuses.

Other businesses, including The Dog’s Group is offering between $1500 and $3500, depending on experience, to applicants, ritzy Potts Point restaurant The Apollo is advertising for a floor manager and offering a bonus, while the Australian Venue Co is offering $3000 to successful applicants of a sous chef.

National Apprentice Employment Network Dianne Dayhew said the incentive to work may be reduced at the moment because some people were flush with cash after ­receiving $750 a week in Covid disaster payments.

“In some cases that was a higher rate of pay,” she said.

She said the current scarcity of backpackers showed the hospitality industry needed to do a better job of selling the career path to young people.

“We really do need to build up the capability of our own workforce rather than relying on skilled migration to fill those gaps,” she said.

“There needs to be more work done by the industry to explain the career pathways that are available from an entry level point.”

While working holiday visas account for some of the shortfall – the youth unemployment rate in parts of ­Sydney before this year’s lockdown has remained at historically high levels.

“We now have this choice – keep filling the gap in demand for labour with temporary visa holders or accept that we want to pay higher wages,” University of Melbourne’s Professor Jeff Borland said.

“There is not suddenly a whole lot less Australian (young people) who are willing to do this work … there has been an expansion in ­demand and hence demand for labour,” he said.