Report finds 20% of workers not competent

A recent report has revealed that 20 per cent of Aussies aren’t fully proficient in their job. While this may seem like the individual’s problem, this paints a picture of the state of workplaces and their training methods.

This was revealed in AHRI’s Quarterly Australian Work Outlook report, which labelled this problem as a ‘skills challenge’. While it is certainly true that we are amidst a tight talent market, employers blindly hiring and not equipping those they do hire with the necessary skills can leave organisations worse off.

It appears some are seeing the writing on the wall, with 40 per cent of respondents set to invest in training in the next 12 months. However, 52 per cent are making no changes to their training initiatives, which could further add to the issues of skills shortages.

Productivity is a major concern in the upcoming year, and the most popular way to improve this is through training and development, with 45 per cent agreeing. Performance management and employee engagement followed, at 39 per cent and 38 per cent respectively.

On average, 45 per cent of employees have undergone internal training over the past year. Meanwhile, 26 per cent of gone through external training.

Employers may benefit by ramping up training initiatives. While sourcing skilled workers remains a challenge, it may be beneficial to bring those without the initial skills up to speed through learning and development.

According to the report, 44 per cent of organisations plan to increase staff levels in the upcoming quarter, while just three per cent are planning a decrease. This sounds like an effective way to grow, but if these skills challenges persist, the issue of unskilled workers could get worse.

Michael Bradfield, Adidas’s director of talent acquisition for global tech, digital and DNA said to AHRI: “We’ve lost a lot of really good knowledge out of this country and we’re left with a residual base at the moment. This is leaving a lot of organisations pretty short on what they can get. This means they’re not operating to their full potential.”

The biggest challenges in securing talent were listed as:

• A lack of suitable candidates (72 per cent)
• High salary expectations (45 per cent)
• Competition from rival organisations (37 per cent)
• The unattractiveness of the role (29 per cent)

Turnover rates are also up, with the figure at 14 per cent, up from 12 per cent last quarter. Twenty-three per cent of businesses reported an annual turnover rate of 20 per cent and above.

It’s possible that pay intentions could be playing a role in this as figures are down from the previous year. In the coming year, the basic pay rate is expected to increase by 2.8 per cent. This is lower than the 3.3 per cent recorded last year.