Released on April 8, the PwC Adapt to Survive study found the inability to upskill and retrain staff is costing the global economy billions of dollars in lost productivity and unnecessary recruitment expenses each year.
The lost potential productivity has been estimated at AUD$136 billion around the globe and $3.8 billion in Australia alone. Additionally, businesses are spending $20.6 billion in preventable recruitment costs due to an avoidance of retraining and upskilling staff.
Talent adaptability refers to the ability for employees to easily transition between industries to cover skills gaps as sectors fluctuate between contraction and expansion. This is particularly important in Australia, as the country’s key industry – mining – transitions between construction and operations.
As the resources industry moves between phases, this creates a mismatch of skills in the industry that requires employees who hold the ability to adapt. When employers attempt to source workers from outside their own industry, they often face significant challenges finding the right talent.
While these skills shortages increase, almost half (43 per cent) of all Australian chief executive officers have expressed a desire to increase their head count this year. Unsurprisingly, 72 per cent of these employers are concerned about the availability of key skills.
If employees were to become more adaptable, these skills shortages would contract, opening up the potential gains in productivity and overall economy growth.
Fortunately, there are a few key options available to help unlock talent adaptability. One important factor is increasing the access to adult apprenticeships in a number of industries.
Offering apprenticeships to adult workers allows these individuals to efficiently learn the skills they need to move between industries. Additionally, employers benefit from apprenticeships due to the ability to control what qualifications new staff are earning.
If your business has a specific skills gap you are struggling to fill, you may want to consider offering adult apprenticeships. This can be an effective way to attract, recruit and retain the staff you need to fill your specific skills requirements.
For more information about how hiring an apprentice could benefit your business, get in touch with the team at BUSY At Work today. Our friendly and helpful staff can help you through the process of creating, employing and retaining an Australian apprenticeship.
By Leanne de Toerkenczy, Public Relations Coordinator