Bosses cite better work ethic for hiring foreigners

Employers cite a lack of qualified local candidates and a ‘better work ethic’ as reasons for a desire to recruit foreign workers.

Australian HR Institute chief executive Sarah McCann-Bartlett.

Four in 10 organisations recruit overseas workers, with employers citing a lack of qualified local candidates, the “better work ethic” of foreign workers, or their cost-cutting policies that result in a desire for cheaper overseas labour, new Australian HR Institute research finds.

The survey of 607 senior business decision-makers showed employing overseas nationals was more prevalent in the public sector than in the private sector, with an inadequate number of qualified local applicants given as the main reason for employing foreign workers.

The other main reasons given for hiring overseas workers included their alignment with organisational values (41 per cent), a better work ethic (38 per cent), commitment to the organisation’s values (34 per cent), foreign language skills (33 per cent) and cutting costs (31 per cent).

Almost one-quarter of organisations said it had become easier to hire workers from overseas compared with three years ago, while 12 per cent said it had become harder.

The most popular reason cited for this improvement was that Australia was considered a more attractive country to live and work in (54 per cent).

Other reasons included increased mobility for overseas workers (43 per cent), a loosening of visa eligibility (39 per cent), and an easier-to-understand immigration system (35 per cent).

AHRI chief executive Sarah McCann-Bartlett said research showed the low unemployment rate was creating significant skills gaps and causing real recruitment difficulties for employers: “While there is often the perception that employers hire overseas workers to fill temporary, low-skilled roles, this research indicates employers are primarily using migrant labour to fill roles requiring skills, qualifications and experience.”

More than three-quarters of organisations surveyed said they were taking measures to upskill their workforce through mentoring schemes; work placements for adults; internships; graduate programs; and apprenticeships.

Australia is suffering from a shortage of managers and administrative workers. Picture: iStock

Ms McCann-Bartlett said although there were signs the economy could be reaching a turning point, ongoing high employee turnover would continue to come at a financial cost and hamper productivity through staff vacancies and the time taken to train new hires.

Professional occupations had the highest density of skills gaps at 39 per cent followed by managers (36 per cent), clerical and administrative workers (33 per cent) and sales workers (32 per cent).

Ms McCann-Bartlett said employers were “pulling all the available levers” to fill skills gaps.

“If we look at the organisations currently, employers are telling us they have gaps in their organisations. Some of those gaps are due to ongoing high turnover rates,” she said.

“They are then unable to recruit externally because Australia’s unemployment is sitting at a very low level. Internally, they haven’t been investing sufficiently in training and development so their internal talent pipeline is not as strong as it needs to be. Specifically, they haven’t been investing in management and leadership training, which we know is key to uplifting proficiency and skills.”

The research showed partnerships with schools, universities and TAFEs could be effective ways for organisations to create robust talent pipelines.