As the Australian economy struggles with other deteriorating trends, a robust labour market has remained one of the major areas of hope. It has experienced strong labour market conditions over 2022-2023 and particularly strong growth in female full-time employment, more than double the growth rate for men.
Australia’s employment surged in August while its participation rate hit a record high and the jobless rate held steady, in a sign that decade-high interest rates have yet to soften demand in the drum-tight labour market.
There are three suggested ways to address the workplace shortages including:
- Training the local population.
- Increasing workforce participation
- Bringing back overseas workers and skilled migrants.
What should employers do?
Employers in 2023 will not only be concerned about hiring top talent, but about retention. What should employers need to do to keep their top talent from taking advantage of a slowly tightening market? And what should workers seeking new employment look for in potential new employers?
Upskilling and Internal Mobility
Upskilling has long been a goal for many employers, and 2023 will be the year leaders start taking internal mobility more seriously to keep retention strong. Even if promotions and pay raises aren’t in the budget, workers are eager to advance their skills. As a result, leaders will be more willing to promote continuous learning by offering more courses, certifications, and other professional development tools.
Looking ahead, corporations are committed to investing in upskilling programs that meet their current and future needs. Upskilling not only fills in current gaps but also helps businesses avoid recruitment costs. It can also create a more solid succession plan, increasing retention rates when high potential, high performers can see a path forward.
More importantly, upskilling current workers gives corporations a competitive edge in a strong labour market. Employers are investing in long-term goals and ways to be a more attractive choice for job seekers. Top talented professionals tend to look for companies that are willing to invest in the career growth of their employees.
Efficiency and keeping cost under control
Employers should find ways to operate as efficiently as possible. Focus on keeping operation costs under control and managing the workforce through attrition. When employees leave, employers should evaluate if the position needs to be replaced, repurposed or outsourced.
Workload and Expectation Management
Employers also need to get realistic about workload. Employees who are left to manage through these trying times are spread way too thin. Making adjustments to performance expectations and organizational goals will help to relieve some of the stress and pressure that many employees are currently grappling with. Training leaders to be better leaders during stressful times will also help diffuse the tension.
