Skills shortage still hurting Australian businesses

Details

Created on Wednesday, 18 April 2012 16:12

Written by Editorial staff

While the shortages experienced in labour markets relating to mining, resources and construction have been well documented, the phenomenon is beginning to have a pronounced effect on other areas of the economy.

An anonymous survey conducted by Bankwest covered 800 business professionals across a range of industries to determine just how hard it was for employers to find skilled workers.

The results of the study showed that approximately 40 per cent of the firms covered by researchers were facing difficulties in recruitment.

On top of this, the hardships were felt despite a measurable drop in national job vacancies from
237,000 in 2010 to 219,000 in 2011, according to the Department of Education, Employment and Workplace Relations Vacancy Report.

According to Bankwest Business chief executive Ian Corfield, one factor that may be adding to the difficulties faced by Australian employers is that the length of time taken to fill a position is also on the rise.

Mr Corfield asserted: "Australian businesses are clearly feeling the pinch of the skills shortage, with 41 per cent reporting that it takes more than three months longer to recruit staff than it did a year ago.

"Businesses are seeing this as a significant issue and are therefore doing what they can to attract skilled performers, whether it's improving benefits packages or recruiting workers from interstate and overseas."

The decision to pursue special business migration visas is not taken lightly by Australian firms, as the sponsorship of international employees can require additional activities and expenses on their behalf.

However, a large number of firms were shown to be bumping up salaries in order to attract talent - particularly in the mining sector - but if the labour pool does not have the numbers available to meet demand, then businesses begin to suffer.

One of the direct impacts of this phenomenon has been a notable increase in the amount of overtime required to make up the difference between demand for output and the available staffing hours - with 66.7 per cent of respondents indicating this was the case.

"Businesses are in the difficult position of having to turn new work away - a tough decision to make given the uncertain economic environment," explained Mr Corfield.

In cases where overtime and undersupply is eating into profits, commercial immigration visas can offer a viable, cost effective source of labour in the medium term.