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How Family Businesses Are Responding to Skills Shortages, Inflation and Rising Insolvency Risk

Rodney Frost, CEO of Integrated Office Solutions provides some practical strategies to evolve how you operate - without compromising who you are - to help tackle labour shortages, inflation and increasing insolvency rates.

1 July, 2025
Family Business Strategy, Family Business, Family Business Advisor, Family-Owned Business, Strategic Planning, Article
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Family businesses across Australia have long been known for resilience, adaptability, and strong values. But 2025 is testing even the best of us. Labour shortages continue to bite, with more than a third of occupations nationally in shortage. Inflation, while easing, still means higher input costs, wages and rents. Meanwhile, insolvency rates are climbing, with ASIC reporting a surge in business failures not seen since before the pandemic.

These challenges are significant, but not insurmountable. What we’ve seen at Integrated OS, through our work supporting Australian family businesses from our base in the Philippines, is that the businesses succeeding right now are those who are evolving how they operate – without compromising who they are.

Here are some of the practical strategies we’re seeing make a real difference:

1. Offshore Resourcing to Beat Local Skills Shortages

If you're struggling to hire locally, you're not alone. Rather than stretching internal teams or settling for underqualified staff, many family businesses are building offshore teams to plug critical capability gaps. At Integrated OS, we help companies build their own dedicated teams in the Philippines. These teams are not freelancers or call centre staff – they are fully embedded in our partners' operations. And they deliver results: on average, our partners see a 60% cost saving and 30% more output per day from these roles. Your offshore team is handpicked to match your culture, works your hours, and becomes a genuine extension of your local business. With the right approach, offshoring isn't just a cost-saving move – it's a strategic advantage.

2. Fractional Executives: Big Capability, Small Commitment

Not every business needs a full-time CFO, CMO or COO. In fact, the pressure to hire a full C-suite is unnecessary for most family firms. Instead, we’re seeing many businesses embrace fractional leadership models. Services like The End Game and CFO On Call provide experienced executives on a part-time or project basis. Whether it's a finance lead to steady the ship or a growth strategist to scale the next phase, these fractional leaders bring top-tier capability without the six-figure salary. The best part? They integrate within your team and focus on execution – not just advice. They also often mentor the next generation of family leaders, building internal strength for the long term.

3. Automate What You Can (and Let Your Team Focus on What Matters)

Operational productivity is under the microscope for all of us. We believe strongly that automation and AI can help you get more done, with fewer bottlenecks. Popular tools like Xero, Zapier, and even ChatGPT can be used to automate repetitive tasks, integrate workflows, and handle basic content creation. But what excites us most is the power of predictive AI – tools that don’t just automate, but anticipate. Think of forecasting cash flow trends from your real-time data. Or systems that alert you to slow-paying customers or upcoming capacity issues. These are the tools that help you run proactively, not reactively.

We use many of these internally at Integrated OS and support our partners to do the same. Even small wins in automation compound into significant savings over time.

4. Build for Flexibility, Not Just Scale

In uncertain times, flexibility can be more valuable than growth. This is especially true when insolvency risk is rising and costs are hard to predict. One way to build flexibility is to shift fixed costs into variable ones. Offshore staffing models do exactly that. You get the team and output you need, without the burden of high cost long-term employment obligations. Likewise, fractional execs give you executive guidance without executive overheads. By building a modular business model – local and offshore, permanent and fractional, human and automated – you can dial your structure up or down in line with demand.

5. Modernise Your Structure to Preserve Your Legacy

All of this ultimately serves one purpose: protecting your business for the next generation. At Integrated OS, we’re a family business too. We understand the balance between evolving operations and preserving values. What we’ve found is that offshore and fractional models not only improve productivity and reduce cost, but also free up senior family leaders to work on the business rather than in it. And they create safe pathways for younger family members to lead new initiatives or manage remote teams. You don’t need to lose your culture to modernise your model. In fact, by embedding efficiency now, you protect the things that really matter: stability, opportunity, and legacy.

Final Word

We believe that family businesses will continue to be the heartbeat of the economy. But the way we operate must evolve with the times. By embracing global talent, smart tech, and flexible leadership, family firms can reduce risk, increase efficiency, and position themselves for the future. We see it every day. If you’re at a crossroads, now is the time to reassess your model. You don’t need to go it alone. There are trusted partners, proven frameworks, and real opportunities to do more with less – and do it without compromising your values.


About Integrated OS


Integrated Office Solutions is a family-owned offshore staffing partner that has been helping businesses in Australia and New Zealand for 18 years. We help you build your own professional teams in The Philippines within our infrastructure. We specialise in long-term, dedicated teams that reduce costs, increase output, and preserve culture.

If you’d like to explore how different resourcing models could work for your business, we welcome the opportunity to have a conversation. Please feel free to contact Rodney Frost via rodney.frost@integratedos.com to learn more.