Top 10 Insights 2024
Skills First
As industry increasingly values skills over qualifications in the evolving job market, we need to encourage broader adoption of a skills-first approach.
Emerging technologies are transforming the skills needed in the workforce, with many employers advising that they prioritise the recruitment of employees with skills and experience over accredited qualifications.
Insights from our members and collaborators says hiring for skills is becoming the preferred recruitment method across Australia.
They tell us that organisations that don’t give non-degree-holding candidates a chance to demonstrate their skills are at risk of missing out on an untapped pool of talent.
We’ve heard that people who have transferable generalist skills with a broad set of competencies, which enable them to perform well across various tasks and disciplines, are also becoming increasingly important as job roles and tasks change quickly. At the same time some job roles are becoming more specialist in their scope. Industry feedback indicates that digital skills are a requirement at almost every job level.
However, this raises an important question: Are we facing a skills shortage, a skills mismatch, or both? Understanding this distinction is crucial to designing targeted solutions that address workforce gaps effectively.
Better Together - The Jobs and Skills Report 2024 from Jobs and Skills Australia provides additional context for this discussion.
Transforming insights into Action
FSO will be focused on defining the entry level employment pathways which are relevant to industry. By describing the knowledge, skills and attributes needed in the work place we will communicate needs more clearly to the training sector and provide industry a clearer skills-focused way to articulate their needs.
CBA banks on skills and potential
Brendan Hopper, Chief Information Officer for Technology at Commonwealth Bank Australia uses a skills-based approach when it comes to hiring talent.
“We haven't hired based on what certifications people have for many years - we hire based on a combination of current skills and potential,” he says. “If you can demonstrate your skills and learn, then there's an abundance of opportunities.”
“We look for people who ask a lot of questions and immediately get curious and lean into the problem to understand it. We always bet on those people if we can.”
When it comes to upskilling staff internally, Brendan takes a practical approach that can continue to evolve with the modern workforce.
“It's 70 percent experience, 15 percent surrounding them with people who can already do it, and then the other 15 percent is formalised training,” he adds.
“Because of the skills gaps we hire for attitude, potential and skills, not just qualifications. We know that a large amount of learning has to happen on the job.”
Marc Washbourne, Founder & CEO at ReadyTech, EY Technology Entrepreneur of the Year and FSO Board Director.
Hear Marc talk more about ‘skills first’ on a recent HEDx podcast. Listen on Apple Podcasts or Spotify.
What we’ve learned from our expert stakeholders
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Versatility in cognitive, analytical and interpersonal skills is increasingly valuable for the entire workforce, as these skills are crucial for adaptability and effective collaboration.
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Project management, business acumen, emotional intelligence and communication skills are essential for teamwork and leadership.
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Technical expertise in data analysis, AI development, blockchain and cyber skills is becoming important across all three industries and critical for innovation.
