2011 is expected to be a bumper year, the economy is finally getting stronger and all in all people are feeling more confident than 12 months ago. BUT according to recruiting expertsHays a shallow pool of talent in many specialist area's is the biggest threat to growth (ref here) for the 2011 Australian job market.
More evidence of expected growth in the job market hails from the resources industry currently undergoing a boom. Multiple resource projects, one example the National Broadband Network; large scale oil and gas projects and mining industry strength all point to an active and healthy moving job market.
What industries are expected to be the most affected?
The problem lies in the pool of talent to meet these needs. Hays quotes an expected skills shortage as never seen before in Australia, in roles and areas such as Engineering, Exploration, Construction, Fabrication and Exporting. Furthermore Hays views the impact of these gross shortages will permeate all industries Australia wide.
The Problem areas
Hays sees the Resources Industry as taking a hard hit with recent, very public, disasters (eg:Pike River Mine; San Jose Gold Mine). GenY'ers are most environment and safety aware, so the Resources Industry is going to need to pour time and money into improving standards and reducing incidents at all levels. Interest rates again feature high on the list as causing great impact on candidate movement, with uncertainty likely to increase caution and reduce movement. However, employers can not rely on this uncertainty to retain staff; skilled staff are more likely to be headhunted and therefore employers need to expect to meet the demand for healthy salary increases.
Advice for Employers
Employers are advised by Hays to consider the benefits of overseas talent, but Australian employers are deemed as reluctant to tap into this talent or lack the skills to do so effectively. However this may be the response that we need to make to fill the hole being left by skills shortages. Furthermore, an increasing number of skilled Australians are being attracted by international markets. Employers are being urged to use all methods available to them to attain and retain excellent staff. Methods recommended include healthy salary increases and bonus schemes, especially in light of the wages freeze in 2009 and the subsequent elaborate bonuses paid by some companies in 2010 (thanks Clive Palmer, you have set a high benchmark!). Employers will need to be looking at thinking outside the square to retain their key staff.
Advice for Candidates
The candidate market will also be affected in 2011, skilled candidates will be in extremely high demand, which will push up pay rates. An influx of overseas IT professionals is likely in line with the new NBN, which means that current full time skilled IT staff are likely to take advantage of the higher contract rates and more flexible positions expected to arise from the influx. Skilled and valued key employees are advised to be aware of the likely increases in salary ranges and bonus options available and keep an open dialogue with employers who are keen to retain them.
One final piece of advice for employers and employees - Social Media is becoming mainstream! Employers would now be remiss not to avail themselves of the vast amount of personal information they can obtain about potential employees or indeed current staff being considered for promotion. Candidates and employees, now more than ever before, your personal life is out for all to see (footy players case in point). There has never been a more critical time to conduct yourself with professionalism - ALWAYS!