08 May 2025
ArticleThe truth can't be denied anymore. There is a serious labor shortage going on in Australia. The country is facing a high unemployment rate, and the government has responded with one-off benefits, wage increases, and more.
As per National Skill Commission, the unemployment rate increased to 5.2% this year. Recent data from ABS mentioned that more than 700,000 people were unemployed while 1.3 million were identified as underemployed.
There is a high demand for skilled candidates, and the recent report by IBM stated that 47% of Australian employers had been affected by talent shortages. The conditions are not just limited to labor-intensive positions, but companies face challenges in finding candidates for non-physical roles.
The industries like banks and financial institutions have been affected a lot. Therefore, they are looking for skilled and up-to-date candidates with emerging and disruptive technologies.
The talent attraction strategy
The situation is pretty dire in terms of the lack of skilled candidates. So, how are the industries responding to this situation? They are giving tempting perks like better working conditions, high salaries and unlimited holidays. And, it seems to be working.
Various companies in Australia have increased their offer of perks by 10%. Incentive schemes like meal discounts, gym membership, and car parking also boosted the company's popularity.
Also, companies started using recruitment specialists (agencies) to get the best talent. The firms used these recruitment agencies, and they charged a premium to look for candidates and handle the entire recruitment process from start to finish.
Another trick that most Aussie firms use is enhancing their Employee Value Proposition. They are doing that by increasing the opportunities to grow and develop, which is not common in other countries.
The strategy is to bring in the best talent, and their benefits package should encourage them to stay even after they get back from maternity or paternity leave. The conditions are also not fixed but depend on the level of performance and contribution.
These candidate-driven strategies leverage the benefits and perks offered to retain top talent. The firms are also testing referral bonuses for people who are bringing in new hires.
With the hybrid work model, the financial firms are also creating the right balance between work and life. Job sharing, part-time roles, and flexible working hours are popular choices among Aussie workers.
Improve processes to align with job hunter's expectations
Filling highly-skilled positions and roles is a challenge, but this problem will not be solved overnight.
What they can do is improve their hiring velocity and processes. They can also make the hiring process more transparent, simple, and efficient. This will make the whole recruiting process more satisfying and less time-consuming.
They can also adjust their hiring processes to meet the candidates' expectations. They need to understand the hiring process of applicants and try to match their expectations. Aussie firms can also try to adopt new technology in the hiring process. They need to streamline their hiring process, and for that, they should use tools like artificial intelligence.