Australia’s and many of our close neighbours’ workforces are grappling with a significant skills gap, with nearly one in five employees not proficient in their roles, according to a recent AHRI report. This shortfall is stifling productivity for over half of the businesses and the answer is not to stop investment in people development.
As AI and advanced technologies rapidly integrate into workplaces, the challenge grows. Traditional skills and qualifications, once sufficient for a lifelong career, now require continuous updates. In today’s fast-paced world, where the half-life of a skill is just five years, learning and development teams are under immense pressure to keep pace with these changes and often turn to external consulting organisations to assist with the development of the identified gaps.
Despite these hurdles, there is a silver lining: a significant 77% of organisations are actively working to enhance their talent pipelines. Many are planning to ramp up training investments over the next year, with a particular focus on technical and practical skills. In fact, over a third of employers intend to increase their training budgets, while only a small fraction, 6% planning to cut back.
To address the skills gap, employers are implementing various initiatives, such as executive coaching programs, work placements, formalised leadership programs facilitated within the company, internships, and graduate schemes.
Many organisations are using the investment in people development as a mean of increasing staff retention.
In addition to domestic efforts, a growing number of employers are turning to overseas talent to bridge the gaps. Currently, 41% of businesses employ foreign workers, and 37% plan to increase this number in the coming year. However, while tapping into global talent pools can be an effective strategy, it also introduces compliance challenges. Navigating visa regulations and legal requirements is essential to avoid potential pitfalls.
Looking forward, addressing current gaps is only part of the solution. Employers must also anticipate future skills needs to prevent these shortages from hampering productivity in the years to come. Continuous investment in upskilling and a forward-thinking approach to workforce development are crucial. The time to address today’s skills gaps was a decade ago. To build a future-ready workforce we must stay attuned to emerging needs and foster a culture of continuous learning and adaptability.
By doing so, we can play an instrumental role in stabilising and future-proofing the talent landscape, ensuring our companies remains competitive on the global stage.
