A RECENT Ai Group-Deloitte survey has found skills shortages are clearly limiting industry’s ability to innovate.
While we knew skills shortages constrain industry’s productivity, this finding added another layer of complexity to this issue.
According to the Skilling for Innovation survey, of the 68% of businesses citing skills shortages, almost two in every three say this shortage is affecting their ability to be innovative.
Without innovation, the risk is Australia will continue to undershoot in the global competitiveness stakes as our offshore rivals adopt and adapt their technology, processes and practices to become more productive.
The report serves to highlight yet again the critical importance of tackling skills shortages in Australia through better resourcing and creative solutions. It suggests policies that help to boost Australia’s skills base will have a direct and positive effect on business innovation.
This report has added further weight to Ai Group’s calls for the Federal Government to implement practical solutions to upskill and reskill the workforce and will underpin my contribution as a member of the recently established and industry-led Skills Australia.
The Federal Government’s establishment of Skills Australia is an important step forward in lifting Australia’s capability. There are few areas more important to Australia’s economic prospects and few areas more important in supporting the aspirations of individuals.
Our latest report estimates that as many as 240,000 full-time employees are needed to satisfy current skills needs. The majority of vacancies are for technicians and tradespersons, however, significant shortages also exist for managers, professionals and engineers, along with labourers and process workers.
Businesses recognise the need for a mix of generic or ‘soft’ skills for innovation, with communication skills considered to be the most lacking, according to our Skilling for Innovation survey.
Expenditure on upskilling is expected to lift moderately in 2008, with businesses planning to increase their average spend as a percentage of turnover to 0.54% from 0.46% previously.
However, the survey found that costs, as well as access to and availability of formal in-house training, may be factors restricting current upskilling efforts. The departure of staff following training is also considered a major barrier to upskilling.
The survey results are very powerful. They put education and skills in a sharper light than they have been before.
Ai Group, together with the Australian Council of Trade Unions and other leading employer and union groups, recently presented the Federal Government with a 10-point plan aimed at tackling these skills shortages, which are acting as a constraint on industry in so many ways.
What we called for together included:
• A renewed focus on apprenticeship completions;
• A long-term strategy to improve Australia’s investment in education and training;
• Skill infrastructure partnerships between public and private sectors;
• Lifting Year 12 or Certificate III completion rates;
• A national vision and consensus on the future of TAFE; and
• A review of the traineeship program.
A key element of the plan is to support teachers, trainers and their leaders to improve their qualifications and knowledge. It also centres on making education and training more responsive to the needs, interests and aspirations of the learners.