Better use of skills, better outcomes: a research report on skills utilisation in Australia

Skills utilisation is an important element of workforce development and is increasingly recognised by governments and policymakers as just as valuable to productivity as skills acquisition. In tight labour markets where employers are keen to maximise the skills of their workforce, skills utilisation has the potential to drive innovation and lead to positive outcomes for both employers and employees. This report seeks to deepen the understanding of what skills utilisation means in the workplace. Skills Australia has consequently explored the conceptual and operational challenges associated with skills utilisation in policy and practice. Using qualitative research methods, Skills Australia has captured the views of 11 Australian organisations through a series of in-depth interviews with managers and employees. The research also links these empirical findings with the previous literature on skills use, and explores its relationship with high performance working (HPW) and human resources management (HRM) practices. Key findings include: skills utilisation is often triggered by tight labour markets and the need to attract and retain employees when faced with strong competition for skills and labour; skills utilisation is delivered through practices such as job redesign and skills audits, autonomy and employee participation, job rotation, and multi-skilling and knowledge transfer; improved skills use is enabled by leadership and management, good [human resources] HR practices, communication and consultation, and employee motivation and commitment; interviews with employers show that they are reaping the benefits of skills utilisation through outcomes such as improvements to innovation, productivity, profitability, staff retention and safety; and from the case study research, a list of critical success factors was identified to help inform policymakers on the conditions required for skills utilisation to thrive.

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