How to overcome recruitment challenges in Australia

Hiring in Australia is getting tougher. Businesses are vying with one another for talent in a job market that keeps shifting. There are many factors making it increasingly hard for hiring managers to find and keep the right people. These include skills shortages, continuously changing workforce expectations, and tricky compliance rules.

Turning a blind eye to these hiring challenges might seem like the easiest thing to do. But it's a surefire way to hinder business growth and create a revolving door of employees. To build a stable, high-performing workforce, a solid recruitment strategy is imperative.

In this article, we go over some of the biggest recruitment challenges in Australia right now and the impact they're having on businesses. We share practical solutions for how to overcome recruitment challenges and build a strong workforce you can rely on. We also touch on how automation and technology can make the hiring process less of an uphill battle.

The biggest recruitment challenges in Australia

Finding the right people for the job just isn’t as easy as it used to be. Hiring managers are dealing with a range of increasing hiring challenges. And they're not just a pain to deal with. They're slowing businesses down. They're increasing turnover and leaving teams stretched thin. Below, you can find some of the biggest hiring roadblocks in Australia right now and how they're hurting businesses:

Skills shortages across key industries

There's a major talent shortage in Australia. And it spreads across multiple industries. Healthcare, construction, and technology are some of the industries that are struggling the most to find the right candidates with the skills they need.

According to Jobs and Skills Australia, more than 30% of occupations in Australia have skills shortages. Because of this, businesses are forced to compete aggressively for qualified candidates or come up with other solutions. The bottom line is that without skilled workers, projects face delays, customer service takes a massive hit, and business productivity dwindles.

Attracting and retaining top talent in a competitive market

Right now, candidates have more choices than ever. Because of this, there's a fight for skilled workers. And it's rather fierce. If a hiring team doesn't offer strong salaries, amazing growth opportunities, and next level workplace flexibility, it's probably going to struggle to appeal to the best people.

And it doesn't end with attracting the right candidates. A business might be lucky enough to attract qualified candidates. But the next challenge is making sure they stick around. High turnover is rampant in today's job market. Employees don't hesitate to leave if they feel undervalued or see better opportunities elsewhere. 

Businesses that can’t hang onto staff face significant challenges. They can find themselves constantly stuck in an expensive cycle of recruiting and training replacements.

Navigating complex employment laws and compliance

Australian employment laws are strict. And to add insult to injury, they change all the time. Businesses need to keep up with award wages and Fair Work requirements. And if they dare to broaden their recruitment horizons across borders? Then there's local employment laws and visa rules to contend with.

Staying on top of compliance can feel seriously overwhelming. This struggle is especially real for small businesses that don't have dedicated HR teams. Unfortunately, ignoring compliance isn't an option. Incorrectly classifying employees, messing up pay rates, or breaching visa requirements can lead to serious legal ramifications.

Evolving candidate expectations and workplace trends

Today’s workforce isn’t driven by a simple paycheck. There are high expectations that go far beyond money. Employees expect flexibility, the opportunity to learn and grow, and a strong company culture. Businesses that stick to archaic workplace models may find it hard to attract and keep talent.

Modern workplace needs are high up on job seekers' priority lists these days. Things like hybrid work arrangements, four-day work weeks, and mental health benefits. Companies that don't adapt run the risk of losing talent to competitors who do. 

Diversity, equity, and inclusion (DEI) have also become increasingly important to job seekers. Businesses need to proactively showcase these efforts. Otherwise, they may find themselves out of luck when it comes to engaging the right people.

Long hiring processes leading to candidate drop-off

A slow hiring process is also a huge problem. Nobody wants to wait weeks for a response. If a business takes ages to review resumes, conduct interviews, or send job offers, potential candidates will probably move on.

Unnecessarily dragged out recruitment processes can mean missing out on talent. It can also lead to increased recruitment costs in the long run. And there's more. Delayed hiring can put extra pressure on existing employees. It can cause burnout and damage team morale. Businesses with inefficient hiring processes can also end up making rushed decisions for the sake of filling roles. More often than not, this leads to poor hires that don't work out.

How to overcome recruitment challenges in Australia

It's clear that finding the right people is hard and that keeping them is even harder. But there's good news. Businesses aren't powerless. With the right approach, they can tackle hiring challenges head-on. Below, you can find some workable strategies that can help your business attract, hire, and retain top talent:

Expand your talent pool with alternative hiring approaches

Does using the same hiring process keep delivering the same disappointing results? Then it could be time for a different approach. Expanding recruitment strategies can make a tremendous difference in finding skilled workers. For instance:

Consider hiring internationally (Employer of Record solutions)

Australia’s job market is tight. But that doesn’t mean that the right people aren’t out there somewhere else. Many businesses are filling skill gaps by tapping into overseas talent. However, this opens another can of worms. Handling visas, global payroll, and foreign employment laws can be a bit of a nightmare.

Thankfully, an Employer of Record (EOR) solution can make hiring international talent much easier. It enables you to hire international workers without setting up a foreign entity. This means access to a far broader talent pool. And without many of the challenges associated with offshore hiring.

Example: A Melbourne-based software company was struggling to find experienced AI engineers. So, instead of waiting for the right local candidate, they used an EOR solution. This enabled them to hire a developer with all the right skills in Singapore.

Partner with universities and training programs

Universities and vocational training programs are full of emerging talent. Building relationships with these institutions can help you gain direct access to qualified candidates... before they even hit the job market!

Offering internships, apprenticeships, or mentorship programs are all great ways your business can nurture future employees and build a reliable pipeline of talent. These partnerships can also enable you to shape candidates' skills to match your industry needs.

Example: A logistics company joined forces with a local university to create a supply chain internship program. Many interns made the move into full-time roles after graduation. As such, the logistics company reduced its reliance on external recruitment practices.

Invest in internal upskilling and reskilling programs

Sometimes the ideal candidates might already be working for you. Rather than searching high and low for external candidates, you might focus on developing the workforce you already have. For instance, by running internal training programs, you can help employees grow into new roles. In turn, you can reduce the need for external hiring.

Upskilling and reskilling can also do great things for employee retention. When it's clear to employees that your company is invested in helping them grow in their career, they're more likely to stick around.

Example: A retail company couldn't find the right digital marketers externally. So, they provided in-house training for existing employees. After completing the in-house training, several staff members successfully moved into marketing roles within the company.

Strengthen your employer brand and employee value proposition (EVP)

A company’s reputation holds a lot of influencing power. Strong employer branding can make it easier to attract talent and keep them around. If a business looks like it'd be a wonderful place to work, potential candidates are more likely to apply. Here are a few ways you can strengthen your employer brand and EVP:

Showcase company culture through social media, careers pages, and job ads

You need to make your positive company culture known. You can do this by showcasing it across several platforms. For example, you can share employee success stories, highlight exciting team events, and detail great workplace initiatives. You can do this through social media, careers pages, and your job ads.

A work environment that presents well, so to say, can be instrumental in attracting and keeping the right talent. It creates an authentic picture of what it’s like to work at the company. Candid and engaging content can help your business stand out amongst an ocean of other businesses. It may also help build trust before a candidate even applies.

Example: A tech startup was facing ongoing hiring challenges. It decided to give its careers page a bit of a makeover. They featured employee testimonials, candid behind-the-scenes office footage, and a variety of down-to-earth team interviews. The startup noticed that, upon doing this, they received a lot more applications from highly engaged talent.

Offer competitive salaries, benefits, and career growth opportunities

Money isn’t everything. But it definitely matters. Ultimately, salaries need to meet or exceed market rates to attract skilled talent. On top of nailing the salary game, it's also highly beneficial if you can provide career development, professional training, and progression opportunities. Because these days, employees want a clear future with the company, not just a job.

To recruit passive candidates, you must go beyond financial and career development incentives. Flexible work arrangements, paid parental leave, and mental health support are very appealing to those looking for work in today's job market.

Example: A mid-sized tech company was finding it hard to attract the right people for senior engineering roles. They revamped their benefits package to include a four-day workweek option, professional development funding, and straightforward promotion pathways. Within just a few months, they noticed a 35% increase in the number of applications they received. Even better, these applications were from experienced professionals open to new opportunities.

Collect and showcase employee testimonials and success stories

Happy employees are a company’s best advocates. And candidates tend to trust employees more than corporate messaging. So, by having real people share their experiences, you can add even more credibility to your business. Consider adding testimonials to your job postings, on LinkedIn, or on your company website to ramp up candidate engagement and applications.

Success stories from employees who have advanced within your organisation can be particularly influential. Typically, candidates love to see a business supporting growth, valuing its people, and proactively creating a great work environment. If you want to give your business a competitive edge in recruitment, build a solid reputation for employee satisfaction.

Example: Hiring managers at a financial services firm noticed that their recruitment efforts weren't paying off like they once used to. They decided to add a section to the careers page on the company website that shared positive employee stories. Mostly, this included videos of team members sharing why they love working at the company. Within a few months, they noticed a considerable increase in job applications from qualified candidates. Some of them even mentioned that the employee testimonials were a major reason they decided to apply.

Streamline hiring processes with automation and technology

A slow recruiting process usually doesn't translate to a positive candidate experience. Thankfully, the latest recruitment technologies can help speed things up. They make it possible to go through resumes faster, schedule interviews quickly, and handle applicants without the mountains of admin. Here are some ways you can streamline the hiring process with tech:

Use AI-driven tools to screen resumes and schedule interviews efficiently

Manually reviewing applications one-by-one is a seriously time-consuming process. AI-powered tools can filter resumes and flag top applicants. They can even schedule interviews... automatically! This saves a lot of time. It enables your hiring managers to focus on what matters most, like engaging with the best candidates.

Another benefit of using AI-driven tools in the hiring process is the reduction of unconscious bias. AI doesn't care much for subjective factors. It has tunnel vision for skills and experience. Because of this, your business can benefit from a fair hiring process. This often results in a workforce that's well-qualified and more diverse.

Example: A consulting firm's hiring process was entirely manual. They decided to switch to an AI-powered recruitment platform. They predefined hiring decisions which the system used to scan resumes. By doing this, they cut down hiring time by 40%.

Implement an applicant tracking system (ATS) to manage recruitment workflows

An ATS is a great tool for organising a hiring process from start to finish. A good ATS can keep an eye on applications and manage interviews. It can also keep important candidate data in one central place and improve compliance. For instance, an ATS can facilitate the consistent application of hiring criteria across all candidates. This lowers the risk of discrimination claims or improper hiring practices.

Example: A retail company found it increasingly difficult to stay on top of applications. So, they decided to implement an ATS. They noticed that this made their recruitment process a lot more straightforward. They also filled vacancies much faster and benefitted from a more consistent approach to their hiring decisions.

Provide a seamless candidate experience with digital onboarding

A poor candidate experience doesn’t just hurt the hiring process. It creates a negative ripple effect that impacts long-term retention, too. If a new hire’s first experience with your company involves missing paperwork, infuriatingly slow IT setups, or instructions that leave them feeling confused, their enthusiasm is likely to vanish fast.

Luckily, digital onboarding can take most of the heavy lifting out of the equation. This means you can create a wonderfully positive first impression... without even breaking a sweat. Candidates can fill in all their paperwork online, access their training materials, and get their system logins sorted out. And they can do all this before their first day. Getting onboarding right is one of the best things you can do for your business. It makes new employees feel welcome and enables them to hit the ground running so they can thrive in their new role.

Example: A construction firm was having a hard time with employees throwing in the towel in the first few weeks of their employment. They discovered that this was mostly because of an infuriating onboarding experience. To fix this, they introduced a digital onboarding system. It enabled new employees to complete all forms online and go over the necessary safety training before their first shift. This resulted in a much more positive onboarding experience, and consequently, fewer first-week dropouts.

Stay compliant with Australian employment laws

Of course, recruitment involves hiring the right people. But a large part of it also involves following the rules (and there's a whole lot of them). Australian employment laws are pretty rigid. And non-compliance typically doesn't end well. It's super important that your business stays up-to-date on Fair Work requirements, wage laws, and visa regulations. Here's how:

Regularly update hiring policies to align with Fair Work and award requirements

Employment laws change all the time. So, if you don't take a proactive approach to updating your hiring policies, your business could land itself in hot water. Even slight errors that occur by mistake, like underpaying staff because you weren't aware of the latest industry award rates, can lead to serious consequences.

Regular audits are one of the best ways to help your businesses stay on the right side of the law. HR teams should revise employment contracts and hiring policies at least once a year to steer clear of expensive mistakes.

Example: A national retail chain forgot to update its casual employment contracts when Fair Work brought in the new conversion rights. Luckily, they uncovered this fairly quickly during an audit. So, they were able to reevaluate their employment contracts and advance internal training on workplace rights. As such, they reduced the risk of legal quarrels and Fair Work investigations.

Use HR software to manage contracts and payroll

Staying compliant with employment laws is far from easy. This is especially true if your business has contracts, tax forms, and payroll records strewn across multiple platforms. HR software can help you keep everything neatly in one place. As a result, compliance can become much less of a feat. With the right HR software in your corner, you can make sure your hiring policies align with the Fair Work requirements. At the same time, you can put payroll adjustments, tax calculations, and keeping up with award rates and autopilot.

The best HR software can also level up your hiring process. It can help you generate legally compliant employment contracts and manage digital signatures. It can also help you make sure payroll details are set up correctly right from day one. This means you can onboard new hires faster, minus all the compliance risks and payroll nightmares.

Example: A growing hospitality group wasn't managing to onboard new employees quickly. This was mostly because of paperwork delays and having to set up payroll manually. They implemented HR software. It enabled them to generate compliant contracts, track tax file numbers, and change pay rates according to industry awards. As a result, they could set up their new hires in payroll with a few clicks and their compliance errors dropped majorly.

Consult legal experts or use Employer of Record (EOR) services for compliance

If you choose to tap into global talent markets, things can get complicated very quickly. No two countries have the same employment laws, tax rules, and worker protections. If you don’t fully understand local regulations, you risk legal problems, financial implications, or compliance fails. All of which could totally derail your plans to expand.

Enter an EOR. With an EOR on your side, you can legally employ international talent without setting up a legal entity. The EOR takes on the role of legal employer. They take care of all the chaotic stuff. This can include payroll, tax reporting, benefits, contracts, and compliance with local labour laws. This means you get to benefit from hiring global talent. And without having to deal with the red tape of international employment laws.

Example: A Sydney-based SaaS company wanted to hire a developer in the UK. But they didn't have the resources to set up a UK entity. So, they partnered with an EOR, which took care of payroll, local tax requirements, and employment contracts. This meant that the company could expand into the UK market without having to contend with compliance risks or extra admin work.

Simplify recruitment with Rippling

Hiring in Australia is tough, with many challenges to overcome. With Rippling on your side, however, it all becomes a lot easier. As an all-in-one workforce management platform, Rippling helps you put hiring, onboarding, and compliance on autopilot. This means you can recruit, pay, and manage employees effortlessly, both locally and globally.

Automate your recruiting process

Rippling streamlines hiring from job posting all the way through to offer acceptance. It enables you to track applicants and manage interviews all in a single system. Plus, it can auto-generate offer letters, collect e-signatures, and run background checks with just a few clicks. This means you can reduce time-to-hire and attract better candidates. Ultimately, your recruitment process can run like a well-oiled machine!

Get onboarding right every time

With Rippling, you can make sure your new hires are good to go before they even start. The platform enables you to collect tax forms, set up payroll and benefits, and provision IT accounts and work devices in a matter of minutes. The result? New hires get an awesome onboarding experience. And your business benefits from faster productivity.

Expand globally with Rippling's EOR

Thinking of tapping into global talent pools? Rippling’s EOR service lets you employ workers in 100+ countries without the hassle of setting up a local entity. It makes complying with local laws, payroll, and taxes a breeze. Plus, it generates legally sound contracts that fit each country.

Comply with Australian employment laws

Rippling takes a lot of the heavy lifting out of complying with Fair Work and award wage requirements. It offers compliance updates and built-in compliance checks. This means there's a lot less for you to think and worry about. You can avoid payroll errors and mitigate compliance risks and legal issues with ease. The best part? It doesn't require any extra manual work on your part.

One platform for HR, Payroll, IT, and Spend

Rippling connects every part of workforce management in one system. This means your HR, IT, Payroll, and Finance teams can work cohesively from a single source of truth. Employee data updates straight away across all functions. And payroll runs perfectly without frustrating setbacks or mistakes. You can say goodbye to bouncing between an array of tools. Because with Rippling, you can recruit, onboard, pay, and manage your employees in one place.

Recruitment FAQs

What is the recruitment process in Australia?

The recruitment process can vary from one business to the next, but typically follows these core steps:

1. Job posting and sourcing candidates: Businesses advertise job vacancies. They often do this on job boards, social media, company websites, and through recruitment agencies.
2. Screening and interviews: Talent acquisition teams read through applications. They then conduct initial screenings and add the best candidates to a shortlist.
3. Testing candidates' skills: Depending on the role, businesses may run some practical tests or assessments. The purpose of these is to assess candidates' technical and soft skills.
4. Interview process: Shortlisted candidates go through one or more job interviews with the hiring team.
5. Reference and background checks: Before making a hiring decision, employers substantiate a candidate’s work experience, qualifications, and right to work in Australia.
6. Job offer and onboarding: Finally, the best candidate gets a formal job offer. Upon accepting it, they go through the onboarding process.

What is the biggest challenge in recruitment in Australia?

The biggest challenge is finding and hanging onto skilled workers in an extremely competitive market. Businesses battle with:

• Skills shortages: Many industries just don't have enough qualified talent. This makes hiring the right people difficult.
• Employer branding: Without a solid reputation, businesses may be out of luck when it comes to attracting good candidates.
• Long hiring processes: Getting recruitment right can often mean a long and resource-heavy process. This presents a bit of a double-edged sword though, as slow recruitment can mean losing talent to faster-moving competitors.

Businesses can work around these challenges, though. But it usually requires them to invest in excellent hiring managers, innovative recruitment software, and their employer branding. Agile companies that can quickly adapt to changes in the market are often the ones to see better results in hiring.

Can an Australian business employ people from overseas?

Yes, they can. There's a few ways Australian businesses can employ people from overseas:

1. Sponsoring a visa: Employers can sponsor skilled migrants through various programs. An example is the Temporary Skill Shortage (TSS) visa (subclass 482).
2. Hiring remote employees internationally: Businesses can engage global talent as contractors. They can also use an EOR to hire full-time employees overseas, legally.
3. Global talent programs: Australia has migration pathways for highly skilled workers. An example is the National Innovation visa (subclass 858).

When hiring globally, businesses need to pay close attention to international visa, tax, and employment law requirements.

What is the best recruitment software for small businesses?

The best recruitment software for small businesses depends on what the small business actually needs. Some platforms are built mainly for job ads and applicant tracking. Others take care of the whole hiring and HR process from A to Z.

For small businesses, Rippling can be an ideal choice. Many small businesses don’t have a dedicated hiring team. So, Rippling's automatic recruitment workflows can be a real plus. It can help businesses save time, money, and resources while still securing top talent. 

The platform makes simple work of everything, from advertising jobs and tracking applicants to onboarding, payroll, and compliance. And it’s a totally scalable solution. So, it grows with the business. This makes hiring and workforce management much easier now and in the long run.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.