Australia’s ongoing skills shortage isn’t only a problem for employers – it’s also having a serious effect on employee stress levels, according to a new survey.

The research by the Australian Institute of Management VT (AIM) indicated morale drops and leadership and gender divides are also taking hold, as a result of the skills gap.

Employee stress was identified as the biggest effect on employees, with 71% of respondents agreeing that the skills gap had upped employee stress levels.

The survey of 1,850 business executives and professionals revealed that 82% of organisations have a gap in their workforce skills, compared to a 76% gap from the same survey last year.

“Employers must avoid prolonged exposure to the negative flow-on effects of a skills gap. Our survey shows that a skills deficiency hits more than a company’s short-term profits – it erodes employee confidence and prompts skilled workers to seek more attractive employment opportunities elsewhere,” said Susan Heron, CEO of the Australian Institute of Management VT.

The effects of over-stressed workers on a business is clear, with 56% of respondents stating they had witnessed declining staff morale, while 48% said the skills gap resulted in the loss of high performing employees.

Survey respondents said the most glaring skills gap in their organisations was ‘leadership’, with 43% identifying middle managers as the segment of the workforce with the most significant skills gap.

“Getting the most from your middle managers has been an ongoing challenge for employers. Too many middle managers are disengaged and don’t see themselves as leaders capable of inspiring and energising those who report to them. Organisations able to equip middle managers with more effective skill sets will reap the benefits of improved workplace culture and enjoy a competitive advantage in the marketplace,” Heron said.

Of the 18% of respondents who said their organisation did not have a skills gap, the major reason why was ‘strong commitment to training and development’ (68%) ahead of ‘promoting internal job candidates’ (63%) and ‘flexibility when recruiting to look for people with the right core skills base then upskilling them’ (56%).

Mark Sexty, of training organisation Upskilled, said a big problem is that many employees see professional training as unattainable.
“Many people are oblivious to the fact that they could equip themselves with valuable skills with generous assistance via government-funded schemes which could cover the full cost of their training,” he said.

“With the planned injection of funding in this area recently announced, hopefully more Australians will take up the opportunity of professional training, so that they can have a career which matches their potential and one that they can feel proud of.”