One of Western Australia’s biggest recruiters has warned employers, particularly those in the construction industry, to be more proactive in their employment solutions in light of the worsening skills shortage situation.
One of Western Australia’s biggest recruiters has warned employers, particularly those in the construction industry, to be more proactive in their employment solutions in light of the worsening skills shortage situation.
Hudson WA general manager Neville Andrews said that while employers needed to better understand attraction and retention strategies, many weren’t putting enough effort into this part of their business.
He said many businesses continued to operate below their staffing needs.
“If companies continue working below required headcounts they are going to get themselves in trouble, particularly in the construction industry where they will attract commercial penalties if they miss deadlines,” he said.
The skills shortage is biting particularly hard in WA, as the growing Chinese economy pushes commodity prices to record highs.
Hudson predicts the shortage to worsen in the coming months, after almost half of WA employers who responded to a recent survey said they expected to increase permanent employment levels in the next three months.
The resources sector is among the hardest hit by the skills shortage. Hudson’s finding that more than 60 per cent of resource sector employers expect to increase employment in the next quarter comes despite recent news of extensions to a number of projects, while others have been mothballed, due in part to a shortage of skilled labour.
Mr Andrews said wage increases of between 15 to 20 per cent made it a buyers’ market. He said the best attraction and retention strategy was to better understand individuals’ personal and career development.
“They can learn new skills, do challenging projects, have opportunities to advance their career, and get variety,” Mr Andrews said.
As well as traditional employment strategies, Mr Andrews said employers also had to look at more creative strategies. With Australia’s declining birth rate and ageing population. employers should look at ways to better engage the mature age worker, perhaps through more flexible working arrangements, rather than simply targeting the new graduates, he told WA Business News.
“Some organisations don’t even understand what percentage of talent they have in their business and what portion of that is looking to retire,” Mr Andrews said.
“They are going to wake up soon and find that all their knowledge base has gone.”
IN THE MARKET
Percentage of employers looking to hire staff*
- WA 42.9%
- ACT 40.1%
- QLD 38.8%
- SA 34.7%
- NSW 30%
- VIC 30.5%
- National average 32.6%
*National survey: 8156 companies
Source: Hudson
