In recent years, regional businesses across Australia have faced significant challenges in attracting and retaining reliable workers. Acclaimed Workforce has operated in key regional hubs for almost thirty years, experiencing the ups and downs of our clients resulting from changing weather conditions, seasonal staffing demand, skill shortages and export demand. 

Shortages for semi-skilled and skilled employers have been a consistent issue, and during seasonal peaks, these are intensified. This issue has a significant impact on businesses, affecting productivity and operational costs. Understanding the reasons behind this struggle and exploring potential solutions is crucial for regional business owners and policymakers alike. 

The Regional Labour Market Indicator (RLMI) combines key indicators of spare labour market capacity, from both an employee and employer perspective, into a single, and easy to interpret, summary measure.  Regions are grouped into distinct categories of overall labour market performance, ranging from ‘poor’ to ‘strong’, which provides an accurate and reliable view of labour market performance, relative to the national average.  A strong labour market, that is characterised by a high rate of employment, where employment opportunities are extended to all who want them, is central to a strong economy and prosperous and inclusive society. 

Regional job market statistics are as follows: 

• SA Barossa – Poor (stable) 
• SA South East – Below average (declined) 
• VIC North West – Average (stable) 
• NSW Riverina – Above average (improved) 

While unemployment rates have decreased in regional areas over the last decade, they are still plagued with lower average incomes. Yet, with different ratings in each region, this demonstrates how the combination of challenges makes for unique problems. 

What are the key challenges of sourcing regional staff? 

While there are many challenges organisations face, in our experience those listed below are the biggest hurdles regional employers are forced to overcome. 

• Geographical isolation and attractiveness. Areas like the Riverina and Sunraysia are geographically isolated, both six hours or more away from major cities, which makes commuting impossible. In a country as vast as Australia, many regional areas are located far from major cities, creating relocation challenges. This isolation often leads to a smaller pool of potential employees, limiting the options for businesses. It is also worth noting that some regional areas may be more attractive to city-based candidates than others, whether it is geographical features for hiking and entertainment (beaches, mountains, rock formations, rivers or lakes), food regions with quality restaurants, or art regions where people can become part of a specific community. 

• Smaller local candidate pool. Even regional hubs closer to cities, like the Barossa Valley and McLaren Vale, face more limited candidate pools, as they are competing with companies in the city who pay higher wages. When there’s a relatively small pool of skilled or qualified workers living locally, especially in specialised roles like machinery operation or trades for example, this puts pressure on wages. However, it is also specific skill sets that are scarce, like forklift drivers with experience in handling glass. Given the nature of regional work, shortages can extend to attributes that aren’t skill based, such as work that requires more physicality. All of this makes recruiting at short-notice difficult.  

• Seasonal workforce fluctuations. With many regions tied to horticulture and agriculture, seasonal demand can be high, creating a reliance on temporary workers, including international workers on temporary work visas because local workers aren’t available. A significant amount of effort goes into onboarding sponsored workers, as expertise is needed to comply with visa requirements. Also, supporting a culturally diverse workforce requires effective onboarding, sensitivity, clear communication, and ongoing resources to maintain a productive and inclusive work environment. International workers often return to their home countries, either by choice or visa limitations, which disrupts continuity and increases the ongoing need for recruitment and onboarding. 

• Housing and infrastructure issues. The availability of affordable housing and adequate infrastructure can also create barriers. Many regional areas face housing shortages, making it difficult for workers to find suitable and/or affordable accommodation. Additionally, regional areas don’t have the same levels of infrastructure as cities, whether it be public transport, health care facilities or higher education, which can deter potential families from making the move. 

How can organisations overcome the challenges of regional staffing? 

There are many actions organisations can take, and it will depend on the goals and experiences of each individual employer. For SMEs, some of these challenges may not be possible to address alone without a recruitment partner. Larger organisations may also need assistance, due to the scope and volume of requirements. 

• Focus on workforce planning. Although important in all organisations, workforce planning is critical for regional employment. This includes scoping key job requirements, training and onboarding. Where possible, upskilling existing permanent staff on specialist skills is essential to address potential gaps, while facilitating career paths for retention. However, this should go hand in hand with identifying key barriers to attracting staff, such as housing and transport, and implementing strategies to reduce or mitigate them. 

• Housing and transport assistance. In many regions, reducing housing and transport obstacles is essential for attracting and retaining workers. Mapping housing options such as hostels, local rooms or ‘granny flat’ rentals, share houses and house rentals will aid that understanding. Connecting with locals and real estate organisations may therefore be a short-term strategy to assist permanent and temporary workers find suitable housing. Long-term, it is essential to work with local Councils, state MPs and the business community to support affordable housing projects and improve public transport options. Many organisations provide daily transportation to help their employees get to and from work during the season. For smaller organisations, this can be a joint venture with those companies located around them. 

• Being open to employing international workers. Some workplaces are hesitant due to language barriers or work restrictions (i.e. length of time/number of hours per week a visa permits), yet many backpackers and students are reliable, hardworking, and adaptable. Shifting perceptions can be key to successful placements, as is providing internal supports and outsourcing the recruitment and onboarding function to a respectable labour hire organisation, which can minimise your employment risks. 

• Weighing up salary costs for specialist roles. This tracks back to your skills gap analysis and the identification of specialist skills that are integral to your business. In some instances where the work must be conducted on-site, higher wages may be required to achieve organisational goals and secure the people you need. Additionally, businesses can explore options such as relocation assistance to support workers who are willing to move to regional areas. 

• Remote and flexible working. Not all roles require people to be on-site most of the time. Remote and flexible work can help bridge the gap between regional businesses and specialised skill sets, significantly opening the candidate pool. For those that are required to be on-site, understanding requirements of local parents and what it would take to engage them in the workforce may be useful. Whether that be childcare, job share arrangements, working within school hours or other options. 

• Promoting regional lifestyle benefits.  If the above issues are addressed, effective recruitment campaigns that highlight the unique lifestyle benefits of regional living can help attract workers. Marketing campaigns and community engagement initiatives can play a vital role in promoting these benefits. 

Whichever issues you choose to address in your attraction and engagement strategy, it’s essential to be prepared and plan in advance, particularly for high volume seasonal work. For assistance, contact Acclaimed Workforce today.