A picture framing business owner who had already given generous perks to his staff has gone even further with a 20 per cent pay rise and bonuses.
Avi Efrat, 41, who had previously given his staff the likes of skydiving sessions and luxury weekends away, found his workers were hit hard by rising costs of living.
While most businesses are trying to cut back their costs due to inflation, Mr Efrat found savings and then passed them on to the workers.
He gave all 45 employees a 20 per cent pay rise and started a new scheme where staff can earn regular cash bonuses – one employee recently got a $2,800 bonus.
‘Everybody was complaining about the cost of living,’ he told 9News. ‘Even my friends. One of my workers told me his rent has gone up by more than $100 a week.’
Avi Efrat (pictured), who had previously given his staff the likes of skydiving sessions and luxury weekends away, found his workers were hit hard by the rising cost of living
The Fantastic Framing owner is also feeling the rising cost of living pressures himself, with nine consecutive rate rises meaning his mortgage repayments have soared.
Australia’s cash rate has risen from 0.1 per cent in April, 2022 to 3.35 per cent today, but Mr Efrat felt he could help his workers by working ‘smarter’.
With 10 shops across NSW, Victoria, Queensland and Western Australia, the entrepreneur needed to find ways to tackle rising costs and help out his workers.
Among the savings the Israel-born businessman found were cutting back on storage space and changing suppliers.
Alfred Bukris, 34, who works in Fantastic Framing’s Maroubra store in eastern Sydney, said the wage rise made a huge difference for him and his co-workers.
Mr Bukris said though his rent has not gone up recently, his colleagues were facing ‘very high increases’.
Mr Efrat’s philosophy is that satisfied staff are vital for a successful business.
‘You need to make sure that they’re happy and motivated to get the best from them,’ he said. ‘My belief is, the more you give, the more you get.
He said it’s a ‘win-win situation’ as happy workers lead to happy clients with better service.
All 45 employees at Fantastic Framing got a 20 per cent pay rise and started a new scheme where staff can earn regular cash bonuses – one employee recently got a $2,800 bonus. Pictured is a staff member working on a picture frame
Australian businesses have started offering perks like skydiving sessions and a lifetime supply of chocolate to employees in the hopes of holding onto dwindling workers (pictured, Fantastic Framing employee Christian on a skydiving trip)
Mr Bukris agreed, saying he had ‘noticed customer service is much stronger since the bonuses were introduced … Workers are motivated to be that little bit better’.
During his mandatory military service in Israel, Mr Efrat learned how to perform under pressure, which he said had helped him solve business problems.
He used this to good effect during the Covid-19 lockdowns when, far from going backwards, he grew his business by 70 per cent by working with online art galleries and promoting his products to people who wanted to spruce up their homes.
Mr Efrat has also given employees skydiving sessions, racetrack laps in sports cars, fancy dinners and luxury weekend getaways to build loyalty and entice new workers.
Job application numbers had dwindled in recent months, and with three new stores opening this year, he was desperate for workers.
‘In the past, I would put an ad up looking for an employee, and in a week or two, I would have 30 emails applying,’ he told Daily Mail Australia.
‘It would take two to three weeks to hire someone, now it takes six to eight weeks.’
He said the federal government’s hardline border closure and welfare schemes during Covid drove away hundreds of vital immigrant and local workers.
‘When Covid hit, it was very dramatic, and everyone got nervous, no one wanted to come into work,’ he said.
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‘Then money kept rolling in from the government with Job Seeker and Job Keeper, and everyone got lazy. No one wants to work.
‘Immigrant workers couldn’t come over during Covid, and then Covid finished, but Australia stayed closed until March (2022).
‘It’s getting easier, but it’s still not the same as before Covid.’
So, Mr Efrat holds onto his employees by offering unique benefits that create a ‘fun environment’.
‘Christian, who went skydiving, has been with us for five years,’ he said.
‘It’s a good strategy to invest in employees. Loyalty means profit.
‘It’s hard to recruit people, but if you keep employees happy, they stay for a long time.’
Phil Parisis, head of product and sales at My Business – an online business platform – said hiring and keeping quality staff is the biggest problem facing small and medium business owners in 2023.
‘For many small businesses who managed to survive Covid, these ongoing staffing shortages are the final straw,’ he said.
‘Whether it be being forced to reduce opening hours, having to put growth plans on hold or being unable to keep up with customer demand, the labour skills shortage is having a huge impact on workplaces across the country.
Fantastic Framing Avi Efrat (pictured second left, with employees) said he offers workers laps in sports cars and luxury getaways to build ‘loyalty’
‘A recent survey of our members found 77 per cent of them have found the quality of job applicants average or below for the advertised role. They’re struggling to find the right people.’
Among the industries at the highest risk of suffering from crippling staff shortages are hospitality, retail, transport and construction.
‘As a small business owner, recruitment can be overwhelming,’ he said.
‘Not only does it feel like larger organisations have a greater pull power and the ability to outbid workers, but there’s also the additional responsibility of having to correctly onboard new staff and ensure everything is above board.’
