Australian Recruitment Practices: A Literature

Australian Recruitment Practices: A Literature Review on current Australian recruitment practices

for

Australian Workforce and Productivity Agency

By

Denise Jepsen B. Psych (Hons), M. Org Psych, PhD, PGCert HE, MAPS, FAHRI, Martha Knox-Haly BA (Hons), MA (Hons) MBA PhD MAPS and Daniel Townsend BA(Hons) BA Psych

Macquarie University North Ryde, New South Wales 2109 T: (02) 9850 7111 F: (02) 9850 7433 mq.edu.au ABN 90 952 801 237 Macquarie University CRICOS Provider Number

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Contents

Executive summary...................................................................................................................... 6 1 Introduction ........................................................................................................................... 9 2 Main Recruitment Strategies ............................................................................................... 10

2.1 Use of technology ........................................................................................................ 10 2.2 Outsourcing, insourcing and private recruitment agencies ........................................... 15 2.3 The `war for talent' ....................................................................................................... 17 2.4 Other trends................................................................................................................. 19 3 Sector, Skill and Geographic Differences ............................................................................ 21 3.1 Health Care and Social Assistance sector ................................................................... 21 3.2 Retail and Hospitality sectors ....................................................................................... 26 3.3 The Construction sector ............................................................................................... 27 3.4 The Manufacturing sector ............................................................................................ 30 3.5 Education and Training sector ..................................................................................... 31 3.6 Professional, Scientific and Technical sector ............................................................... 34 3.7 Skill level and geographic segmentation ...................................................................... 36 4 Recruitment Drivers ............................................................................................................ 41 4.1 Drivers in general......................................................................................................... 41 4.2 Drivers across different sectors.................................................................................... 41 4.3 Supply and demand across sectors ............................................................................. 41 5 Social Media ....................................................................................................................... 43 5.1 Social media in recruitment .......................................................................................... 43 5.2 Recruitment social media examples............................................................................. 44 5.3 Recruitment agency use of social media ...................................................................... 44 6 Workforce Planning............................................................................................................. 45 7 Applicant Skills.................................................................................................................... 46 7.1 Traditional job search techniques................................................................................. 46 7.2 Access to organisational information............................................................................ 47 7.3 Online interviewing....................................................................................................... 47 8 Skills Mismatch ................................................................................................................... 49 8.1 Overskilling and skills mismatch in Australian labour markets ...................................... 49 8.2 Recruiter awareness of skills mismatch ....................................................................... 49 8.3 Skills assessment in top 20 ASX listed companies....................................................... 52 8.4 Skills mismatch summary............................................................................................. 54 9 References ......................................................................................................................... 55

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Appendix A: Project Aims, Methods, Limitations, Future Research and Authors ........................ 65 Appendix B: List of Generalised and Specialised Job Boards .................................................... 69 Appendix C: Key Findings on Australian Health Workforce Shortages ....................................... 72 Appendix D: HWA Health Sector Workforce Reports ................................................................. 73 Appendix E: Recruitment Sourcing Strategies by Sector ............................................................ 75

List of Tables

Table 1: Recruitment Processing and Sourcing Metrics ............................................................. 14 Table 2: Search Parameters for Use of Competencies or Skills Assessment ............................. 51 Table 3: Evidence of Skills Matching in Top 20 ASX Listed Companies ..................................... 53

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