Running a small or medium-sized enterprise (SME) in Australia often means juggling tight budgets while striving for innovation.
One savvy approach to stay competitive without overspending is to bring graduates and PhD students into your team. They offer fresh perspectives and research-backed insights that can be game-changers for your business.
Since 2011, three quarters of PhD graduates have consistently worked outside of academia. Many seek placements or internships in government, industry, business, non-profits, or even SMEs, either during their studies or afterward.
Why Bringing Graduates on Board Makes Sense
Graduates come equipped with up-to-date knowledge, self-direction in project management, and a keen enthusiasm to apply their skills. They’re adaptable and can be moulded to fit your company’s culture and processes. Plus, hiring recent graduates can be half the cost that experienced staff demand, making it a cost-effective way to inject new energy into your business.
In fact, a CSIRO joint report has found that more than two thirds of companies collaborating with researchers were likely to introduce new products or services. That compared to just 28% of companies that weren’t working with researchers. And, a Cadence Economics analysis shows that $10.6 billion of Australia’s business income is due to collaborations with universities.
To make the most of hiring graduates:
- Define clear roles and development paths to clearly outline what you expect from the role and how the graduate can grow within your company. This clarity helps set mutual expectations and gives a roadmap for progression
- Tap into university career services that connect employers with high-quality candidates. Partnering with these services can streamline your recruitment process and give you access to a pool of eager graduates
- Consider (paid) internships as a trial run to assess a candidate’s fit within your company before committing to a permanent position. It’s a low-risk way to find the right talent
We’ve highlighted ‘paid’ internships because hiring an intern to perform similar duties to regular paid employees and which contributes to your operations means such interns are entitled to be paid. Paid internships are also more attractive to high-quality candidates. Typically, an SME can spend up to $2,000 per intern –that could be a cost-effective way to recruit talent.
Placements are not typically paid, but increasingly may have a stipend or reimburse the student’s costs.
Elevating Innovation: The PhD Advantage
PhD students bring specialised expertise, advanced research capabilities, analytical and span problem-solving skills. Collaborating with them can lead to innovative solutions and improvements in your products or services.
Typically, the average Australian PhD student is aged 34, has work experience and comes from a diversity of backgrounds. The skills they develop can contribute to policymaking, address pressing workforce demands, and skills shortages in essential fields, says peak body Universities Australia.
Your SME might think of PhD holders as a mismatch, perhaps being overqualified. Research shows PhD graduates need contextual, adaptation, and project management competencies to transition effectively into industry.
Partnering with research centres can further enhance this collaboration for success. For instance, engaging with initiatives such as the National Industry PhD Program can open doors to funded opportunities, allowing your SME to undertake significant research projects without bearing the full financial burden. If your business is in or supporting the clean energy sector, consider the Deakin Energy Networks. Or, if digital media is more in line with your interests, reach out to QUT’s Digital Media Research Centre, which currently has funding to explore artificial intelligence among other topics.
Funding and Support: Lightening the Load
Several avenues can help offset the costs of hiring graduates and PhD students:
Government grants and innovation vouchers: Programs like the Industry Growth Program support innovative SMEs undertaking commercialisation or growth projects, providing financial assistance to build Australian capabilities in priority areas.
Collaborations with universities and research centres: Partnering with academic institutions can provide access to resources and funding opportunities. For example, the CSIRO Kick-Start program offers dollar-matched funding for collaborative research projects between SMEs and CSIRO.
Tax incentives for R&D activities: The Research and Development Tax Incentive is designed to encourage companies to engage in R&D, providing a tax offset for eligible activities. This can significantly reduce the financial burden of innovation.
Making It Work: Best Practices for Hiring Success
To ensure a fruitful experience when bringing graduates or PhD students into your team:
- Create clear project outlines:
Define the scope and objectives of the projects they’ll work on to maximise their impact - Offer mentoring and professional development:
Offering guidance and opportunities for growth will help them integrate into your team and develop their skills further - Set measurable outcomes:
Set clear metrics to assess the success of their work, ensuring alignment with your business goals, and - Foster a collaborative culture:
Encourage an environment that values new perspectives and open communication, allowing fresh ideas to flourish
By strategically incorporating graduates and PhD students into your workforce, your SME can drive innovation and growth without stretching the budget.
Our role is to help ensure you have the right insurance coverage in place to support these new hires and protect your business. From reviewing contractual requirements to ensuring your policies cover potential liabilities, we’re here to safeguard your operations as your business evolves. Let’s work together to ensure your innovation efforts are backed by comprehensive risk management.