Mosaic experienced a sudden surge in training enquiries during the last few weeks of 2009 (the end of the noughties). We assumed this was associated with the end of the GFC induced slow down in Australia but there would appear to be a deeper problem.
The Australian Institute of Management (AIM) has just released a major survey that suggests that 40 per cent of Australian organisations are already seeing a negative impact on profits and performance goals caused by a skills shortage; 76% of more than 2,000 executives surveyed said their organisations have a workforce ‘skills gap’ where the term ‘skills gap’ was defined as the gap between an organisation’s skills needs and its current employee capabilities.
Interestingly, 65% of the respondents who did not think there is a skills gap in their organisation, believe their organisations have avoided a skills gap by a strong commitment to training and development.
Survey participants said the single biggest skills deficiency in Australian organisations was ‘leadership’. The major skills deficiencies identified by respondents were:
- Leadership 45%
- Professional or industry specific skills 43%
- Process and project management skills 36%
- Managerial skills 31%
- Communication/interpersonal skills 31%
Given our workshops and PMI Credential courses cover most of these shortages, it looks as tough we are in for a busy start to 2010; however, before then we are planning to slow down through the holiday period to recover and prepare for a busy 2010 starting with our first PMP and CAPM course on the 11th January.
Wishing you all a happy, safe and peaceful Christmas and New Year.
Pat Weaver
Lynda Bourne
Aavssitedev's Blog
When you use the phrase “labor shortage” or “skills shortage” you’re speaking in a sentence fragment. What you actually mean to say is: “There is a labor shortage at the salary level I’m willing to pay.” That statement is the correct phrase; the complete sentence and the intellectually honest statement.
Some people speak about shortages as though they represent some absolute, readily identifiable lack of desirable services. Price is rarely accorded its proper importance in their discussion.
If you start raising wages and improving working conditions, and continue doing so, you’ll solve your shortage and will have people lining up around the block to work for you even if you need to have huge piles of steaming manure hand-scooped on a blazing summer afternoon.
And if you think there’s going to be a shortage caused by employees retiring out of the workforce: Guess again: With the majority of retirement accounts down about 50% or more, most people entering retirement age are working well into their sunset years. So, you won’t be getting a worker shortage anytime soon due to retirees exiting the workforce.
Some specialized jobs require training and/or certification, again, the solution is higher wages and improved benefits. People will self-fund their re-education so that they can enter the industry in a work-ready state. The attractive wages, working conditions and career prospects of technology during the 1980’s and 1990’s was a prime example of people’s willingness to self-fund their own career re-education.
There is never enough of any good or service to satisfy all wants or desires. A buyer, or employer, must give up something to get something. They must pay the market price and forego whatever else he could have for the same price. The forces of supply and demand determine these prices — and the price of a skilled workman is no exception. The buyer can take it or leave it. However, those who choose to leave it (because of lack of funds or personal preference) must not cry shortage. The good is available at the market price. All goods and services are scarce, but scarcity and shortages are by no means synonymous. Scarcity is a regrettable and unavoidable fact.
Shortages are purely a function of price. The only way in which a shortage has existed, or ever will exist, is in cases where the “going price” has been held below the market-clearing price.
The definition of skills GAP used in the survey was the gap between an organisation’s skills needs and its current employee capabilities.
This is nothing to do with a shortage of people although of course if your view is accepted Alton, organisations could choose to fire their current employees and employ new people with the skills they now need. Personally I think training is a better option.
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