Over 4 in 10 employers hiring overseas talent to address skills shortage: AHRI

'Employers are primarily using migrant labour to fill roles requiring skills and experience'

Over 4 in 10 employers hiring overseas talent to address skills shortage: AHRI

More than four in 10 employers in Australia are tapping on overseas talent to address the skills shortage in their organisation, according to the Australian HR Institute (AHRI).

The AHRI's poll of 607 senior business decision makers revealed 41% are employing overseas talent, with the practice more prevalent in the public sector (60%) than the private sector (37%).

"Very low levels of unemployment are creating significant skills gaps and causing real recruitment difficulties for employers," said AHRI CEO Sara McCann-Bartlett in a statement.

According to the report, 45% of employers are hiring overseas is due to the "short supply of local candidates with the right experience." Another 43% cited the short supply of local candidates "with the right skills or qualifications."

"While there is often the perception that employers hire overseas workers to fill temporary, low-skilled roles, this research indicates that employers are primarily using migrant labour to fill roles requiring skills, qualifications, and experience," said McCann-Bartlett.

"The findings indicate that many Australian employers rely on a supply of skilled overseas workers for business growth and public service delivery."

Source: Australian HR Institute's The Evolving Skills Landscape report

Supporting local workforce

But Australian organisations haven't neglected their local workforce in favour of international talent, according to the report.

More than three in four (77%) employers said they have been carrying out measures to upskill their workforce, with mentoring schemes (38%) being the most popular one.

"It is encouraging and clear to see why organisations are putting their attention towards training staff and recruiting from their own ranks, given the pressures of an ongoing competitive labour market," McCann-Bartlett said.

Source: Australian HR Institute's The Evolving Skills Landscape report

Addressing the skills gap

In Australia, the report found that the density of skills gaps "varies significantly" across occupational groups.

The highest density of skills gaps was found in:

  • professional occupations (39%)
  • managers (36%)
  • clerical and administrative workers (33%)
  • sales workers (32%).

"On the other hand, lower-skilled occupations tend to have lower densities of skills gaps," the report read. "This variation highlights the need for targeted interventions that address the specific skills challenges within each occupational group."

To address the skills gaps in their organisation, the AHRI recommended the implementation of a company-wide skills audit to map the skills required for each role.

"Having a thorough understanding of the skills landscape allows for the creation of more flexible roles that can be adapted based on the availability and strengths of the workforce," McCann-Bartlett said.

She added that effective leadership and management is important in "identifying and managing underperformance, managing change, supporting employee wellbeing, and improving retention rates."

"We also know that investing in training can help reduce employee turnover as employees who have clear career pathways are more invested in and more willing to stay with the organisation."

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