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The much reported ‘war for talent’ and labour shortages are real – and affecting businesses of all sizes. According to a new survey of the Australian employment market by global recruitment firm Hudson, 56 per cent of employers nationally say the talent shortage is affecting their ability to hire quality staff and more than a quarter claim the average time it takes to recruit a new employee has increased by more than six weeks.
Inevitably, the shortage is hitting bottom lines, with more than half the employers reporting recruitment costs have risen by up to 50 per cent.
Gary Lazzarotto, Managing Director of Hudson Australia and New Zealand, says the survey of some 4784 hiring managers shows the impact of the competitive employment market on businesses across the country.
“The need for managers to spend more time identifying and securing quality talent, and the loss of productivity that results when roles are left unfilled for long periods, are major contributors to increased costs,” he says. “The candidate is now in a better position to negotiate on issues including salary and benefits – which also increases costs.”
Smart employers are moving quickly once they find quality candidates, he advises.
Sadly, shortages are tipped to worsen, in part due to the demographic shifts of our ageing population, but there are strategies to ease the way.
For tips on retaining staff, see our feature.
