We've summarised the latest Australian HR Institute research report so you don’t have to…
↳ Topic: The Evolving Skills Landscape: Anticipating Current and Future Requirements (June 2024)
This report explored the urgent skills gaps and shortages faced by organisations (especially in technical and specialised roles) & the strategies to address them.
By focusing on specific competencies rather than traditional qualifications: A shift towards a skills-based approach is highlighted as particularly promising for creating a more inclusive and adaptable workforce.
Key Findings 👇
1. Identifying Current Skills Gaps
→ Prevalence: When employers were asked about internal skills challenges, nearly one in five employees were perceived as not proficient in their roles
→ Impact: 57% of employers report significant negative effects on productivity due to skills gaps.
→ Causes: Evolving business needs, inadequate training, recruitment difficulties, high turnover, and poor leadership.
2. Investment in Skill Development
Employers were surveyed about their intention to train their current workforce over the next 12 months
→ Plans: 37% of organisations plan to increase training investment, especially in technical and leadership skills, compared with 6% that reported plans to cut their training budget.
→ Sector Variation: Public sector (53%) plans more increases compared to private sector (34%).
→ Retention: Upskilling initiatives reduce turnover and recruitment challenges.
The employer interviews conducted for this report indicated that technical & practical skills are a pivotal cause of recruitment difficulties in their workplaces.
3. Building a Robust Talent Pipeline
Survey data shows that upskilling is at the forefront of organisations’ approaches to developing their talent pipeline
→ Initiatives: Mentoring, internships, graduate programs, & apprenticeships are key strategies.
→ Focus: Internal development and university partnerships to nurture talent.
4. Leveraging Migration for Skill Acquisition
→ Prevalence: 41% of employers hire overseas nationals, especially in the public sector (60%).
→ Reasons: Short supply of local candidates, better work ethic, and high local wage expectations.
→ Improvement: Hiring processes have become easier due to increased mobility and visa eligibility.
5. Adopting a Skills-Based Approach
→ Benefits: Creates a more inclusive and effective workforce.
→ Strategies: Mapping specific skills for roles, skills audits, on-the-job training, & technological tools for dynamic workforce planning.
→ Retention: Clear, skills-based career pathways enhance employee engagement & retention.
👉 Addressing skills gaps & preparing for future demands is critical for building a resilient & dynamic workforce. Continuous investment in skills development, strategic partnerships, & a shift towards a skills-based approach are essential for sustained economic prosperity & competitiveness on the global stage.
Full report in comments 👇
