Australian employers maintain strong demand for skilled migrants

New research has shown that Australian employers' reliance on skilled overseas workers to address local talent shortfalls has remained largely unchanged over the past three years.

A study commissioned by recruiter Robert Half found that 72% of Australian employers have hired a skilled applicant from another country in the past two years. This is consistent with figures from the end of 2021, when 71% of business leaders indicated intentions to recruit international talent for permanent roles in 2022, largely due to difficulties finding the necessary skills within the local workforce.

Of those who have recently employed skilled migrants, nearly half (46%) reported they would do so again. Meanwhile, 26% said they would not repeat the process, and 23% who haven't yet hired international talent stated they would consider it in the future to address any skills requirements. Only a small fraction (5%) have not and would not consider hiring skilled migrants.

Increasing reliance

The survey highlights a growing dependence on overseas talent, with 65% of employers saying that Australia's labour market is now more reliant on skilled migration than it was five years ago. Only 9% of employers believe the country is now less reliant on skilled migrants, while 26% think the dependence remains unchanged.

The research reflects views from 500 Australian hiring managers across finance, accounting, business support, and IT and technology. Respondents were drawn from a mix of small and medium-sized enterprises, as well as large private, publicly listed, and public sector organisations across the country.

"Despite easing employment market conditions, the talent shortage persists in many sectors. Considering international talent offers a significant opportunity for employers to identify highly qualified candidates, especially for higher-level or specialised roles, which in turn helps combat Australia's talent deficit," says Nicole Gorton, Director at Robert Half.

Gorton further stated: "Those from overseas who join the Australian workforce can offer a range of benefits to organisations, such as fresh perspectives and global experience. While it might not be the right fit for every business, tapping into overseas talent can be a valuable strategy for companies aiming to support business continuity and drive growth."

Reasons for hiring abroad

The study identified the top three motivations for employers to seek skilled migrants. A desire for diverse perspectives and innovation was cited by 45% of employers, while both the ability for skilled migrants to rapidly add value and a need for specialised expertise were highlighted by 39% each. Other reasons included the requirement for global knowledge (38%), lack of appropriate local talent (34%), the need for strong business acumen (34%), and intentions for or engagement in global expansion (34%).

The demand for broader perspectives and enhanced creativity suggests that business leaders value not only technical skills but also the diverse insights and experiences that skilled migrants can bring to a company.

Barriers and concerns

However, several concerns were noted regarding international recruitment. Language fluency was identified as an issue by 45% of employers, and 44% cited both cultural differences and a need for local market knowledge. Additional challenges included complex visa processes (33%), government regulations (31%), and the perceived higher cost of hiring from overseas (28%).

These barriers indicate that international recruitment is not without its complications, and businesses carefully weigh these factors before proceeding.

"Like any recruitment strategy, hiring applicants from another country demands a considered approach, it's not a case of 'one size fits all'. International hiring won't work for everyone, especially when considering real-world barriers like visa complexities and legal working rights. It's not a 'silver bullet', but it can be advantageous for some organisations," concludes Gorton.

The survey findings suggest that while Australian employers maintain high levels of engagement with international talent, the challenges and benefits of such hiring are carefully evaluated to suit the needs and context of individual businesses.