It’s becoming increasingly clear that Australia is facing a significant shortage of skilled tradespeople. Across industries—from construction and manufacturing to automotive and electrical—businesses are struggling to attract, train, and retain the skilled workers they need to remain competitive.
While the causes behind this labour gap are varied, there are some consistent contributing factors that experts frequently highlight:
- An ageing workforce and early retirements
- A decline in skilled migration
- Limited access to affordable childcare, impacting workforce participation
Business owners across the country are feeling the strain. At The Alternative Board (TAB), we regularly hear from members who are unable to fill critical roles, despite active recruitment efforts.
The good news? There are actionable steps your business can take to rise above these challenges.
1. Foster a Culture That Puts Your People First
If potential hires perceive your business as indifferent to employee wellbeing, they’re less likely to apply. On the flip side, businesses that invest in their people and promote internal growth create a more attractive proposition for jobseekers.
Start by celebrating your team. Share their wins in your company newsletter, on your website, and across social media. Use your recruitment materials to showcase your commitment to professional development, flexibility, and a positive workplace culture.
When employees feel valued, they become your best advocates—and your strongest asset in recruitment and retention.
2. Shift Towards Skills-Based Hiring
Traditionally, hiring decisions have heavily relied on degrees or formal qualifications. But today’s job market calls for a more inclusive approach.
By focusing on skills—rather than just certificates—you open the door to candidates who may have the hands-on experience, attitude, and aptitude your business needs, even if they don’t fit the usual mould. It’s a smart move in a tight labour market, and it allows you to build a more diverse and resilient team.
3. Upskill from Within
Sometimes, the talent you need is already in the building. Rather than casting the net externally, consider identifying team members with potential and investing in their development.
Whether it’s through short courses, webinars, mentoring or internal leadership programs, training existing staff can not only close immediate skill gaps but also boost morale and loyalty. Employees who see a clear path forward are more likely to stay—and to bring others along with them.
Use performance data and employee feedback to inform your training initiatives. A strategic, tailored approach will yield better results and empower your team to grow alongside your business.
4. Offer Competitive Pay and Benefits
In a candidate-driven market, competitive pay and benefits are essential. Prospective employees are doing their research. They’re comparing salaries, superannuation contributions, flexibility, and leave entitlements—long before they even agree to an interview.
If you haven’t benchmarked your remuneration against industry standards recently, now’s the time. Involve HR in analysing how your packages stack up and where there’s room to enhance your offering.
And remember: this isn’t a one-time exercise. Ongoing review and adaptation of your compensation strategy is crucial to remain competitive and attract top-tier talent.
Turning Challenge Into Opportunity
While the skilled labour shortage presents real difficulties, it’s also an opportunity to rethink how your business attracts and retains talent. It’s a chance to cultivate a stronger workplace culture, evolve your recruitment approach, and empower your existing team to thrive.
You don’t have to face these workforce challenges alone—peer support and shared wisdom can make all the difference.