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Strong hiring prospects for Australian SMEs in H2

July 31, 2023
in Business
Strong hiring prospects for Australian SMEs in H2
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In a resolute response to Australia’s ongoing skills shortage, nearly half of the country’s employers (46 per cent) are set to bolster their workforce by hiring staff for vacated positions in the second half of 2023, a considerable rise from six months ago.

This surge in hiring intentions, revealed by specialised recruiter Robert Half’s independent research, marks a significant increase from six months ago when 39 per cent of businesses had such plans.

As the nation grapples with a tight labor market and a soaring demand for qualified candidates, company growth, performance, the availability of skilled individuals, and economic forecasts are driving the imperative need for recruitment.

The latest findings underscore the growing challenge faced by businesses in securing qualified candidates for vacant positions. With the nation’s unemployment rate remaining at historic lows and job mobility soaring, employers are feeling the pressure to proactively secure the best talent available.

When asked about the key factors influencing their hiring decisions, Australian employers cited company growth as the most significant driver, with 34 per cent attributing their recruitment needs to this factor. Company performance followed closely behind at 29 per cent, reflecting the correlation between business success and the demand for additional personnel.

Moreover, the scarcity of qualified candidates remains a prominent concern for 23 per cent of employers, emphasizing the ongoing skills gap that continues to be a major hurdle in the hiring process. The economic forecasts are also playing a significant role in shaping hiring decisions, with the same percentage (23 per cent) of employers taking these predictions into account.

Despite these robust hiring intentions, the survey revealed a sense of stability and confidence among businesses, as only 11 per cent of employers foresee hiring freezes or layoffs. The overwhelming majority are optimistic about their growth prospects and are actively seeking to expand their teams to meet the escalating demands of the market.

Regional analysis revealed that Western Australian businesses have the most ambitious hiring plans, with 44 per cent aiming to expand their headcount. Meanwhile, 41 per cent of companies in Queensland and Victoria, and 40 per cent in New South Wales, share similar intentions.

Notably, both large companies and small to medium-sized enterprises (SMEs) are equally enthusiastic about recruiting staff during the latter half of 2023, with 42 per cent of each category expressing their hiring intentions. This marks a significant shift for SMEs, as only 30 per cent had similar plans at the beginning of the year, highlighting a newfound business confidence.

The findings from this comprehensive survey provide valuable insights into the evolving recruitment landscape in Australia. As businesses navigate the challenges posed by the skills shortage and the demand for top-notch talent, their proactive approach to hiring and strategic workforce expansion becomes paramount for sustained growth and success.

“As the new financial year commences, attitudes around hiring decisions have been refreshed for the next six months and beyond. Budget and project approvals have kickstarted the need for companies to strategically hire for new or vacated positions in order to support growth initiatives and strengthen their service offering to stay ahead of their competitors,” said Nicole Gorton, Director at Robert Half.

“The skills shortage in Australia remains but the urgency or velocity of that demand is impacted by the prolonged period of macro-economic uncertainty. By the same token, for companies who plan to hire in the near future, we see they are taking a very deliberate and strategic approach to their decisions. With more stakeholder approvals and time needed to get new hires over the line, organisations are ensuring the talent they bring in is the best they can find, and who bring serious added value to their bottom line.

“Companies know that stagnancy is the enemy of growth, so they are working within their limits to tactically hire headcount while sticking to company-set boundaries. This is precisely what is shaping today’s hiring landscape, and while hiring to support specific initiatives and projects has seen the need for new talent, it has often resulted in freezing headcount in other areas of the business.

“While companies continue to take a cautious approach to expand their teams, they understand that having cutting-edge technical capabilities on their side to replace vacated roles is essential to staying ahead and starting off the new financial year strong,” concludes Gorton.

Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Dynamic Business – https://dynamicbusiness.com/topics/news/strong-hiring-prospects-for-australian-smes-in-h2.html

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