Outsourced solutions: Economic sustainability

Sustainability in the current environment.

Sustainability in the current environment

The employment services landscape we’re in today has changed. We’re seeing new challenges we didn’t face in the pre-Covid world, and there’s no denying it’s tough.

Our sector is facing increasing operational costs and competition, historically low unemployment plus caseload challenges.

Caseloads aren’t as anticipated across Workforce Australia and Transition to Work, having decreased 20 percent from original projections. These are big numbers to grapple with – especially so early in a new contract – which impact provider sustainability. Competition remains strong across all contracts, with Disability Employment Services presenting similar caseload challenges. DES providers are no longer able to rely on department referrals, instead needing to invest funds and resources in other customer acquisition strategies.

Thin margins and high contractual expectations around service delivery and compliance make it difficult to service customers in meaningful ways that deliver real value. The economies of scale required to make contracts viable are now under further pressure with declining caseloads. The current economic environment is amplifying the pressure on providers, with rapid increases in cost across all areas of their business. From recruitment and wages, IT infrastructure, data security, compliance, accreditation and more, all business units are feeling the pinch.

It’s never been more important for providers to invest in strategies that drive contract performance, create efficiencies and leverage economies of scale. Imagine the costs saved in people, technology, time and more by streamlining just one or several of your business activities?

CoAct operates a unique model, where our service partners (subcontractors) directly deliver employment services. CoAct acts as the engine room, providing partners with a suite of supports that drive performance and sustainability. Our outsourcing solutions were created in response to sector demand, using our extensive industry expertise and model setup.

Our services have been carefully codesigned and tested with 15 employment services providers, representing a significant investment over the past 25 years. CoAct’s outsourcing solutions are a low-risk, turnkey option for providers wanting fast and affordable business solutions.

We look forward to exploring this opportunity for growth and sustainability with you.

Get in touch for an obligation-free chat on how we can best support your business.

Simon Brown
CEO – Chief Executive Officer

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Register your interest in becoming a CoAct service partner or accessing our outsourced solutions and our team will be in touch within 48 hours to discuss your needs.

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