World of Work: A New Normal

July 25, 2023
Here's change scared woman


HOW TO ATTRACT AND RETAIN TALENT DESPITE TODAY’S SKILLS SHORTAGES

Australia is facing a massive skills shortage like we’ve never seen before. We’re not just blowing smoke up your chimney, the latest research shows that a whopping 91% of Aussie employers are struggling to find the skilled workers they need to get the job done. That’s a serious shortage!

To make matters worse, over 80% of employers reckon this shortage will negatively affect their growth plans. That’s not good news for anyone, and the skills shortage pressure is the highest it’s been in almost 50 years. To give you an idea, in 2012,only 69% of employers were affected by skills shortages, while in 2019 it was at 70%.

We need to define a new equation that considers the complete value exchange of any role – and trust us, it’s not just about the moolah. While a competitive salary is important, it’s not the only thing that matters to employees. In fact, the pandemic has changed people’s priorities, and the increasing need to adapt to new technology advancements in the workplace has caused everyone to re-evaluate their work-life balance.

Of course a competitive salary is still essential, and this year we will see salaries going up to attract the talent needed. In fact, a whopping 88% of employers are planning to increase salaries when they next review, up from 67% last year. Employees also believe they deserve a pay rise, with 84% of them stating their performance and skills warrant an increase of more than 3%. Uncompetitive salaries are the top factor motivating 49% of job searches, followed by a lack of promotional opportunities and poor management or culture.

While businesses have focused on customer experience for years, a shift needs to be made to improve employee experience – with the same level of value placed on this metric as it would be with a customer. Employee experience needs to be front and centre if we want to attract and retain the best. That means offering benefits like more than 20 days of annual leave, solid mental and physical wellbeing support and creative rewards and recognition programs. 

We’ve all heard it a million times, but flexible working practices are really the way of the future. Over 60% of employees say they are keen for a flexible hybrid schedule and want the option to choose the hours they work outside of core timings, while one-third want compressed working weeks. 

Employers who invest in skills development are going to be the big winners too. By offering on-the-job learning opportunities, you’ll be able to build internal capability and ease skills shortages. In fact, 57% of employees said they are looking for training opportunities and ongoing development from their employers. Investing in staff development will help future-proof organisations and bridge the talent shortage.

Finally, mastering change is critical in the ever-evolving world of work. Adapting to change is no longer enough – today, organisations that embrace and use change to their advantage will have a competitive advantage. Leaders must be change agents and inspire their teams to be agile and adaptable in the face of a constantly challenging work environment.

By offering competitive salaries, treating employees like customers, investing in staff development, and mastering change, organisations can attract and retain the best talent and future-proof their businesses. If you need assistance to identify where and how you can make these changes, get in touch and we’ll get our consulting hats on.

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