Tackling Australia’s Skills Shortage: Why Workforce Planning Matters

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Across Australia, the skills shortage is more than just an economic concern—it’s a daily operational reality for business owners. From healthcare and construction to early childhood education and IT, we’re seeing chronic talent shortages that are affecting productivity, service quality, and staff wellbeing. At our consultancy, clients regularly come to us overwhelmed by unfilled roles and high turnover. The good news? A structured approach to workforce planning and development can make a significant difference.

1. From Reactive Hiring to Strategic Planning

One of the biggest mistakes we see is businesses hiring reactively—scrambling to fill roles only after someone resigns or demand spikes. This approach leads to poor hiring decisions, overreliance on temp staff, and burnout among existing employees.

Workforce planning means thinking ahead. It involves understanding your current workforce, forecasting future needs, identifying gaps, and implementing strategies to address them. For example, one aged care client had no plan in place despite knowing that a third of their senior nursing staff would retire within five years. With support, they built a simple 12-month workforce plan, identified internal talent, and introduced succession pathways to future-proof their team.

2. Development Over Dependency on Recruitment

Many businesses pour time and money into recruitment while under-investing in their current people. But with Australia’s unemployment rate remaining historically low, the most reliable talent may already be working for you. Upskilling and developing internal capability is often faster, more affordable, and better for culture than recruiting externally.

In the early childhood sector, we helped a client facing leadership shortages design a six-month internal development program. Educators were given mentoring, leadership training, and project experience. As a result, the business filled key roles, improved retention, and built loyalty from within.

3. Building Career Pathways for Retention

Staff retention is just as critical as attraction—and career development is a key factor in why people stay. Yet too many organisations fail to offer clear pathways for progression.

A structured development plan—whether formal training, mentoring, or secondment opportunities—helps employees envision a long-term future with the business. And it pays off: in one case, a regional health provider saw their clinical turnover rate drop by nearly 10% after implementing quarterly career planning conversations with team members.

4. Make Workforce Planning a Business Priority

Solving the skills shortage won’t happen with short-term fixes or one-off recruitment campaigns. It requires a mindset shift: treating your workforce like a long-term investment, not a last-minute resource.

If your business is constantly scrambling to fill gaps, it’s time to get proactive. Start by understanding your workforce, identifying future needs, and developing the people you already have.

Conclusion: Take the First Step Today

Workforce planning doesn’t need to be overwhelming—it just needs to start. Whether you’re running a childcare centre, managing a regional aged care facility, or scaling a tech company, the principles are the same: clarity, consistency, and commitment to your people. The sooner you act, the stronger your position will be in a tight labour market.

Not sure where to start? Let’s talk. We can help you design a practical workforce plan tailored to your business needs.

Nick Hedges is the founder of Resolve HR, a Sydney-based HR consultancy specialising in providing workplace advice to managers and business owners. He recently published his first book, “Exiting underperforming Team Members – The Inside Scoop”. It is a practical response to the most pressing HR challenges, which can be found at https://resolvehr.com.au/.

Disclaimer: The contents written do not constitute legal advice and do not cater for individual circumstances.   The information contained herein is not intended to be a substitute for legal advice and should not be relied upon as such.

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