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Almost 90 per cent of organisations have reported experiencing skills shortages, and accounting is not immune.
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Are we witnessing a skills recession?
26 June 2023
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10 minute read
According to Hays Salary Guide FY23–24, 88 per cent of Australian companies are experiencing skills shortages. Another 40 per cent said these issues have intensified in the last year, and 78 per cent believe this will negatively impact growth plans.
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Matthew Dickason, Hays Asia-Pacific chief executive, commented: “Australia’s skills shortage narrative is well entrenched in our labour market, but this year, our survey shows its impact continues to intensify in many industries.”
Dubbed the “skills recession” by Hays, this issue could have severe impacts on the business.
Organisations listed the areas of most impact as:
- Productivity (63 per cent)
- Increased workloads (62 per cent)
- Project delivery (59 per cent)
- Growth plans (49 per cent)
- Engagement and morale (46 per cent)
- Revenue/profit (41 per cent)
- Employee turnover (44 per cent)
- Customer service (41 per cent)
“There’s growing concern among employers about the lack of skilled professionals in today’s labour market. Despite these challenges, vacancy activity remains remarkably resilient. After normalising from last year’s historic peak, today’s headcount expansion plans suggest current economic uncertainty will not impact all workforces,” said Mr Dickason.
“It’s clear we’re heading for a skills recession as a shrinking talent pipeline threatens the effective operation and growth plans of organisations. With the skills shortage predicted to last well into the 2030s, employers must guard against the long-term impact.”
The firm said the most in-demand roles within the accounting profession were payrollers, accounts payable and receivable officers, financial accountants, finance managers and financial analysts.
According to Hays, the biggest contributors to these skills shortages are a lack of talent with the necessary qualifications, and increased competition, at 77 per cent and 64 per cent respectively.
Employers are responding to this in different ways. The most common solution, for 75 per cent of respondents, is to increase salaries in hopes it will attract workers. Meanwhile, 62 per cent are upskilling staff, and 37 per cent are considering overseas talent. Just 7 per cent of organisations were contemplating using overseas workers, highlighting the desperation.
Other strategies witnessed by Hays are diversity, equity, and inclusion (DEI) initiatives, streamlining recruitment, and improving employer branding.
“While investing in their own strategies is crucial to remain competitive, employers must take a wider view and work together to address the skills shortage crisis,” Mr Dickason continued.
“The issue of skills shortages isn’t specific to one organisation or industry but is a systemic problem impacting the entire labour market. We must shift mindsets and collaborate to address skills shortages collectively.”
“These findings highlight the need for employers, the government and educational institutions to work together to address the root causes of the skills shortage and build a strong future workforce.”
According to Australia’s Minister for Immigration, Citizenship and Multicultural Affairs, Andrew Giles, migrants and refugees could plug skills shortages in the workforce.
“Providing sustainable pathways to meaningful employment is key to supporting migrants and refugees to build a sense of belonging and inclusion in Australia,” said Mr Giles.
“Like any other Australian, refugees and migrants deserve the opportunity to use their professional skills, experience and qualifications to build lives and livelihoods in Australia that are productive and fulfilling.”
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