Keeping Up with Emerging Hiring Trends in the Modern Blue-Collar Job Market

It is no secret that Australia is continuing to experience a skills shortage in the trades sector. Skilled blue-collar positions such as Boilermakers, Welders and Sheet Metal Workers are becoming more difficult than ever to fill. It is time to rethink how we can retain blue-collar workers and be proactive in hiring new, skilled tradespeople.

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It’s a great time of the year, especially if you have young children, grandchildren or you’re just young at heart! But I thought about what it might be like to work in the North Pole for Santa and if I was an elf, how I’d feel about my job. It’s a super positive, cheerful atmosphere Santa's workshop is known for its festive and cheerful atmosphere. While it might not be feasible to maintain a holiday spirit year-round in a regular workplace, creating a positive and pleasant work environment can significantly boost employee morale. Consider decorating the workplace for special occasions, celebrating achievements, and fostering a sense of pride in the work being done. 

Australia’s peak Industry Recruiting body, the RCSA, examined recruitment trends and employment forecasts for 2024 in its webinar, “Australia’s economic outlook for 2024 – what’s in store for the recruitment industry?” The event touched on the current and future state of recruitment and employment in Australia, the impact this is having on Australian organisations, and what the recruitment industry can expect over the next year. Labour Shortage The labour force is continuing to expand, with employment rates in Australia growing at 35,000 per month. But with unemployment currently sitting at 3.5% - 3.7%, sourcing the right candidates for many vacancy types has proven extremely difficult. The forecast unemployment rate over 2024 is expected to slowly increase, reaching about 4.25% - 4.5% by the end of next year. That means some vacancies will become easier to fill, but the ease at which companies and hiring managers are able to fill roles will be a mixed experience, depending on skill level and where you’re located in Australia. Demand for Skilled Workers Demand for skilled people is forecast to remain strong in 2024, particularly in the mining states of WA and QLD. As a result, companies are at risk of losing their skill base, while in many instances, struggling to refill their positions. It was noted that while the labour market strength is positive, it’s also contributing to the shortage of skilled labour. The job vacancy/unemployment gap remains narrow, at around 150,000. This is well below average, considering it was 400,000 pre Covid. Shifting Recruitment Approaches It’s likely that there will be more and better applicants for your unskilled Factory Worker positions, but you might struggle to find the right person if you have a vacancy for a qualified skilled Sheetmetal Tradesperson. On the back of this scenario, companies are starting to refine their recruiting strategy by hiring those who are eager to learn and willing to develop their skills. Rather than hiring the wrong skilled and experienced person or waiting months for the right candidate, some businesses are ramping up their training programs and tapping into the more abundant unskilled and semi-skilled candidates. A shift in selection strategy is addressing those shortages of skilled workers by recruiting great candidates who want to learn. Rather than defaulting to a search for skilled, experienced and qualified tradespeople, businesses who have the training capacity are selecting unskilled or semi-skilled people with the right attitude, who fit with the existing team, and have the enthusiasm to learn. Read more about how using different recruitment approaches can help you get the most out of your workforce in our blog . Retention Strategy One of the easiest ways to address a recruiting problem is to solve the retention problem! It’s important to have a mix of activities and behaviours which are aimed at improving retention and that are sustained day after day. The best way to formulate your overall retention strategy is finding out what matters to your employees, especially your top performers and skilled workers. Take the time to understand what your employees want, why they enjoy working with you and what other things might be attractive. You’ll be surprised that it’s not always about the money. Some widely adopted retention strategies involve supporting your employees with hands-on training, offering a clear path with opportunities for growth and creating a positive and enjoyable work culture. It’s a fine line sometimes balancing productivity, quality and customer service with those retention strategies, but the trick is to look at the things that support both good business outcomes and retention. For a full breakdown of what you should consider to improve your retention strategy, check out our latest blog here . Maintaing Employment Levels During the webinar, it was noted that a lot of businesses are now looking at the market and wondering if they can maintain their current employment levels, especially as many upstaffed during Covid. As well as that, some businesses have been labour hoarding, holding onto staff they didn’t really need, as they were worried they wouldn’t be able to recruit later. Given the uncertainty around the economy, many companies are now trimming the full-time headcount (mostly through attrition) and utilising outsourced services, contractors or casuals instead. The primary reason for this shift in full time headcount is to add flexibility and enable very quick adjustments to their workforce so that labour costs are aligned to revenue or other related output metrics. Wages vs Inflation Companies are still experiencing demand for higher rates of pay from employees. That’s largely a hangover from the wage/inflation gap which peaked early in 2023. The Fair Work Commission wage decision in June this year has certainly helped bridge that gap and eased the demand for wage increases. The forecast for wages and inflation in 2024 is promising with predictions that changes to inflation will be more in line with wages growth. The Wage Price Index is forecast to remain at 4%, but inflation is expected to fall below 4% by mid 2024. Summary Although there are challenges ahead in 2024, there also great opportunities. Businesses who can pivot and adjust for the changing labour market dynamics will also experience productivity improvements. There are added and subsequent benefits to be gained, including improved retention and efficiency, and of course, profitability. For help with your recruitment and HR needs, please reach out to us at hello@IRP.net.au or contact Alex Young on 0407 187 327.

In 2011, The University of New South Wales completed one of Australia’s most comprehensive research studies into what creates a High Performing Team . It is widely referenced in contemporary leadership development programs today, with many actionable findings and evidence pointing to this concept of a “great place to work”. I’d encourage any leader who wants to build a high performing team to dive deep into its findings and look at implementing some of them in your own business. And I know it’s from the US, but this correlation is pretty compelling. Fortune 100’s “Best Companies to Work For” consistently outperform the S&P 500 in terms of stock market returns. Additionally, a study by the University of Warwick found that happy employees are up to 20% more productive than their unhappy counterparts. There is a lot of research out there which all points to the same thing: great place to work = good company performance. Whether or not you measure that, it’s hardly surprising that some good times, a bit of goodwill and recognition makes a positive difference to how you perform as an organisation. Retention The term "employee retention" refers to an organisation’s ability to keep its employees engaged, motivated, and committed to the company over time. High levels of retention are synonymous with high performing organisations. Retention and BBQ’s The humble work BBQ is a great way to bring people together, show some appreciation and reinforce that fun, positive work culture. And all of that feeds into improved retention. We often combine our barbequing talents with clients. We love to cook up the good stuff including halal meat, homemade burger patties, marinated chicken and even a roast on a spit! Much more than a sausage in a bun, and people definitely appreciate the extra effort. Most businesses try and put on something, even if it’s the Christmas wind up, and the extra effort is worth it. However, doing things that will be engaging, motivating and create a positive work environment is more than just BBQ’s or things like breakfast or bringing in the mobile pizza van. But done well, the staff BBQ is a fantastic part of your retention mix.

Jobs and Skills Australia has released their latest Recruitment and Outlook Survey for the September 2023 quarter and it has revealed some interesting insights for the industry. The latest findings confirm that companies are still finding it difficult to hire Trade Qualified and Skilled Blue-Collar Professionals, whilst finding Semi and Unskilled Workers has become even easier, with a decrease of 26% since last year. This major contrast highlights the need for a different recruitment strategy for each occupation group. We believe that both groups must be approached differently in order to get the best results for your business.

In Ross Clennett’s recent blog post on leadership and performance, he highlighted one of Australia’s most comprehensive studies on the correlation between leadership and high performing organisations. Despite it being completed in 2011, the research is just as relevant today and offers several valuable insights and ideas for any Manager, Supervisor or other leader who aspires to build high performing teams. 

Your operation can enjoy considerable improvement when the business relationship you have with your agency, and in particular your Recruiter or Account Manager, focuses on operational improvement. And the flow on effect might also improve the quality of your own work life and sanity!