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As we leave behind 18 months of trials and tribulation at the hands of a downturn unlike any seen in decades, are we headed into a new struggle against skills shortage that is set to make its mark on our slowly improving economy?
2009 and early 2010 was a time of challenge that saw many face the very real prospect of redundancy, shorter working hours and decreased income. For those who had relative employment security, moving jobs was the furthest thought from their minds. Businesses were making the hard decisions, cutting back on employees to reduce costs in the hope of making it through, and attempting to make ends meet with a skeleton staff that had elbows to the grindstone.
So in mid-2010, as green shoots are giving way to a fledgling forecasted upswing, many are breathing a sigh of relief – but is it premature?
The recently released 2010 World of Work Report by specialist recruitment and HR services company, Randstad, suggests Australia’s future economic prosperity is in jeopardy as a result of a systematic skills shortage threatening the country’s plans for business growth.
The study of more than 1700 respondents in Australia, finds almost one quarter (24%) of businesses cite attracting top talent to facilitate the next phase of growth as this year’s biggest human capital challenge. Comparatively more than a third (35%) of respondents from the state believe the skills shortage never left their sector, while a similar percentage (34%) believe a skills shortage began emerging in the first quarter of 2010, following the brief reprieve of the GFC.
Deb Loveridge, Chief Executive Officer of Randstad, says, “The report highlights a fundamental risk to Australia’s future economic success and urgent action is needed to address the skills shortage in this country.
“As the economy continues to improve, and employers commit to increasing headcount, we will inevitably see a tightening of the skills market. What is concerning for a large number of employers is the shortage of appropriate talent has never diminished, even during the recent economic turmoil.
“This suggests that Australia is suffering from a deep-seated skills shortage that can’t be attributed solely to economic conditions. If employers are struggling to find skilled candidates during a global financial crisis, it doesn’t bode well for future prosperity when the economy improves.
“Our country has had a tough 12-18 months as it battled through the economic storm. But the hard work getting through this period of economic uncertainty will be wasted, with two key forces at play – a lack of employees with the skills required by employers, and employment and immigration restrictions that prevent organisations from hiring staff with the skills they need.”
Against the background of a looming skills shortage, hiring intentions are improving markedly on 2009 and employers are on the hunt for talent. A third of all employers across all sectors (33%) are expecting to increase their headcount in 2010. Only 8% expect to reduce their headcount by not replacing those who leave, and only 5% are planning to reduce their headcount through restructures and redundancies.
While the professional industries often seem hardest hit by skill shortages, it is expected that other industries, including the call centre and customer service sectors will also continue to face challenges associated with skills shortages. In Australia, contact centre and customer service respondents indicated skills shortages either never left their sector (25%), with a further quarter identifying the emergence of skill shortages since the start of 2010.
So while the worst of the downturn may seem to be behind us, are we simply out of the fry pan and into the fire, looking to a future where skill shortages dominate our employment market?
For a copy of the Randstad 2010 World of Work Report, please contact your recruitment consultant, or visit www.randstad.com.au.
National News