Media Release: 21st August 2024
The Capital Group on behalf of National Skills Week and Indeed
New Indeed report confirms the future of work is skills-based
Over two thirds (69%) of Australian employers say they have a skills gap that’s impacting their organisation and foresee it widening over the next 5 years, according to a new report by global job site, Indeed.
This is in line with the World Economic Forum’s prediction that close to 25% of jobs will undergo transformation in the next five years due to industry changes and advancements in AI.
With Indeed’s research revealing one in three recruiters expecting recruitment to get harder, it’s critical employers find ways to engage and retain employees, and this is where a skills centric approach becomes invaluable.
Indeed’s report—Skillfully Aligned: Closing the gap for a future-proofed workforce—explores skills-based hiring and upskilling as a means to broaden talent pools and future-proof organisations against existing and emerging skill demands.
However skills are not one-size-fits-all. Indeed’s research highlights the generational expectations and nuances employers should consider when adopting a skills-centric approach—emphasising the need for talent leaders to tailor their upskilling and hiring strategies.
Gen Z – flight risks
A third (32%) of Gen Z feel that their career progression hinges on continuous learning. It’s unsurprising therefore that they pose the greatest flight risk if they’re not provided with development opportunities. What’s more, a staggering 73% of Gen Z intend to switch jobs within the next 12 months, and 74% expect to change careers over the next 5 years.
While skill growth and career progression is crucial for retaining this dynamic and ambitious cohort, 27% don’t know where to start to enhance their skills. In providing this group with clear development pathways, employers will better attract and retain them.
Millennials – skills enthusiasts
Almost all (96%) of Millennials believe in the need to improve their skills—with 37% specifically recognising the need to adapt their IT and digital literacy skills. This generation also places a higher value on soft skills than any other generation.
Millennials predominantly believe it’s up to employers to upskill employees. Therefore to retain and engage this generation, organisations should provide clear pathways for skill development, particularly focusing on digital literacy and soft skills.
Gen X – Influential
Autonomy and competency are key priorities for Gen X. They are influential, relationship focused, and creative. However they often think of themselves as already competent, and can therefore be less enthusiastic about adaptability training.
Recognising their inclination towards autonomy, programs should emphasise opportunities for self-directed learning and personal growth. Highlighting the relevance of new skills to their current role and future career aspirations is crucial, as Gen X values staying relevant and adaptable in a rapidly changing industry landscape. Employer-led initiatives that offer upskilling opportunities aligned with industry advancements and technological developments are particularly valued by this generation, over 50% of Gen X employees have shown this sentiment.
Boomers – skill resisters
Overwhelmingly, one in three Boomers believe they do not need to develop and improve their skills (28% versus an average of 6% across every other generation). This mindset has implications on the long-term evolution of a business, as boomers are staying in the workplace longer.
To engage Boomers, it’s essential to address their resistance to adopting new skills. Highlight the tangible benefits of skill development—such as increased job security, relevance in the evolving workplace, and potential for leadership roles— to encourage participation.
Indeed’s APAC Marketing Director, Rachael Townsley, says:
“Skills today have a shorter shelf life, so it’s critical employers take a skills centric approach to future-proof their workforce.”
“An impressive 91% of Aussie workers feel confident in their ability to adapt to role changes, however, half of the workforce don’t know where to start when it comes to developing their skills.”
“Investing in upskilling and reskilling employees will ensure teams are equipped with the latest skills to meet evolving demands thereby strengthening an organisation’s resilience and adaptability.”
“Vocational training is particularly effective for upskilling and reskilling. It focuses on specific skills and competencies needed for a particular job or industry and makes someone’s skillset more applicable and valuable.”
You can read the full report here.
About Indeed
Indeed is the No. 1 job site in the world with 350M+ global monthly Unique Visitors. Indeed strives to put job seekers first while providing quality matches for employers, fast, to support their hiring needs. Every day, we connect millions of people to better work to create better lives, combining the latest in AI technology and the power of human judgment and connection.
About the report
Indeed’s latest report, Skillfully Aligned: Closing the gap for a future-proofed workforce, explores the concept of skills-based hiring. Drawing on fresh data, it offers a comprehensive assessment of the current state of skills within the Australian workforce while also identifying essential skills for future-proofing your business. The report aims to foster deeper dialogue on the viability of skills-based hiring as a cornerstone of Australia’s workforce strategy to address the skills gap. It highlights generational nuances that employers should consider when adopting a skills-centric approach and shares insights from leading skills-first organisations. Additionally, the report provides practical guidance and best practices for organisations looking to implement a skills-based hiring strategy.
Research methodology
The research in this report was commissioned by That Communications Company on behalf of Indeed and conducted by YouGov.
The study was conducted online between 23 – 29 April 2024, involving 1,604 working- age Australians in the workforce. The sample also consists of 509 respondents who identify as having recruitment responsibilities.
Age, gender, and location quotas were applied to the sample and following the completion of interviewing, the data was weighted by age, gender, and location to reflect the latest ABS Australian working-age population estimates.
In this report, ‘small’ businesses are defined as those with fewer than 20 employees, ‘medium’ businesses are defined as those with 20 to 249 employees, while ‘large’ businesses are defined as those with 250 or more employees.