Skills Shortage forecast will continue - Lets think outside the Square to secure quality employees
Anna Lane - Director Access HR Solutions | 1 Dec 2006 11:48 AM
Significant wage rises are predicted for 2007 as the candidate pool shrinks
In 2005 – 2006 the workforce grew by 224,000 and unemployment fell to 4.8 percent the lowest in 40 years.
Looking to the future, skills shortages dominate the concerns of CEO’s and HR professionals, and wage-driven inflation presents the greatest threat to economic growth.
An outcome to this is that it is clearly an employees market which significantly pushes the wages higher.
Long term global skills shortages, an ageing population and strong global economic growth suggest it will be more of the same in 2007. The two major solutions will be using the mature age workforce, parents returning back to work, and attracting talent from overseas of which these areas should flourish in the New Year.
One of the most pressing issues facing the majority of employers is the lack of ‘relevant experience’. However, change your view on that phrase and the field suddenly widens.
With the recent Welfare to Work changes, there are many parents now actively considering sustainable employment. While they have been out of work for a period of time, they offer employers a set of often undervalued but effective skills and have obtained an effective set of skills through coordinating a family, household budget and in many cases part-time employment or study. Many parents have skills and qualifications acquired before they left the employment market to have children and these are easily adaptable to today’s market.
Mature age workers are another growth sector. With the ageing population and the decreasing birth rate, mature age workers over the age of 50 play a critical role in the labour market.
Positive employer perception of mature age workers challenges the historical thinking that they cannot learn new skills, are set in their ways, working to retirement therefore lacking ambition. However their life, and past work experiences can provide benefits such as mentoring younger staff, taking on leadership roles and a mature work ethic.
As the balance between work, family and living becomes a heightened priority for employees there is a higher demand on employers for flexibility and the consideration of return to work for parents and the mature age workers needs to be factored into the company’s HR strategies.
Difficulties in finding the right permanent staff will also result in the use of temps, contractors, part-time and casual staff.
As a final note top priority for HR practitioners must be retention. “What part are we playing to ensure we retain our best staff?” Is it flexible hours, flexible work options, including job share, part time, remote work and the fostering of flexibility. For the short term this will mean budgeting for retention as well as and not instead of recruitment.
Anna Lane – Director Access HR Solutions
References: Human Resources Magazine.com.au October 2006
HR Monthly – October 2006