Australia has taken significant steps to address the persistent skills shortage that has plagued businesses in recent years. This includes amendments to the country's migration laws to attract global talent and meet the national demand for specialised workers.

Despite these efforts, a recent study by recruitment firm Hays revealed that 88% of employers in Australia continue to struggle with skills shortages.

“The skill and talent shortage in Australia remains a challenge, despite recent changes to migration law aimed at attracting more high-end skills,” Dr Connie Zheng, co-director of the University of South Australia's Centre for Workplace Excellence, told The Guardian.

However, a critical opportunity may be overlooked. Could tapping into regional talent pools, with the flexibility afforded by hybrid and remote work models, hold the key to filling these persistent gaps? A new research paper suggests that it might. 

READ MORE | Solving the skills gap

Truths about talent in Australia’s regions

We’re all familiar with this narrative: regional workers are less skilled, less driven, and simply not on par with their urban counterparts.

But the Regional Australia Institute’s (RAI) in-depth study, "Against the Odds: Realising Regional Australia's Workforce Potential," dispels these outdated and damaging assumptions. Here are some of the facts about regional talent that business leaders tend to overlook, according to RAI:

1. The regions have capable, young talent

Regional Australia possesses a wealth of ambitious young workers keen to take on meaningful roles. However, a persistent lack of opportunities, due to biases favouring major cities, prevents them from realising their potential. 

The RAI study estimates a potential 9% increase in workforce participation from this population, underscoring the talent base that languishes underutilised. 

2. Experienced skilled workers are carelessly dismissed

In a counterproductive situation, many companies dismiss a vast pool of experience possessed by older workers in regions during a frantic search for skills.

Over 38,000 skilled individuals face ageism and location-based biases. This short-sightedness, highlighted by the RAI study, is frustrating and economically unsound. 

3. A vibrant diversity is being overlooked

The RAI study also exposed a troubling disparity: despite encountering systemic discrimination, approximately 25,224 Aboriginal and Torres Strait Islander job seekers within regional Australia remain untapped by the economy.

Dismissing these unique perspectives and skillsets represents not only a missed economic opportunity (a potential 12.9% participation increase within this group), but also a fundamental failure to build a just and inclusive society.

4. Investing in regional talent is cost-efficient

It is no secret that the cost of living in the regions, compared to the cities, is significantly cheaper. Exploring talent beyond the cities, where rent and commodities are less expensive, can help your HR team craft competitive yet budget-friendly salary offers. 

Remote, hybrid work offers no more excuses

The Australian Bureau of Statistics (ABS) reports that as of August 2023, at least 37% of the country's workforce worked remotely.  While slightly lower than the 40% seen in 2021 at the height of the pandemic, this percentage remains 5% higher than pre-pandemic levels.

Jane Menzies, a business professor at the University of the Sunshine Coast, told The Guardian that this decrease possibly results from people yearning for human connection.

“It could also be that organisations have put their foot down around wanting employees to return; however, this approach is very autocratic and not participative and could result in employee turnover,” she explained.

Yet, the ABS report is clear: regular remote or home-based work is highly feasible for most Australian managers and professionals (60%). Thus, remote and hybrid arrangements remain viable for leveraging regional talent. 

People moving from the cities to the region

Last year’s Regional Movers Index report documented an intriguing trend amongst Australian Millennials, the country's largest working-age group: many consistently choose regional living over capital cities.

According to the report that came out last November 2023, capital-to-regional migration accounted for 11% of total relocations, a few percentage points higher than the 9.1% of people migrating from the regions to the capital cities.

Kim Houghton, Regional Australia Institute’s chief economist, attributes this movement to house accessibility and availability in the regions, things that are important amidst today’s rising cost of living.

There’s no doubt that this trend bolsters the case for the often-neglected potential of regional talent to help mitigate the ongoing skills shortage.

Moreover, the government has also mounted programs to invite skilled migrants to Australian regions to boost the workforce beyond the cities. 

READ MORE | Inside the Australian Regional Visa Program: a pathway to residency?

Winning the best talent in the regions

Numbers don’t lie – exploring regional talent pools in Australia is a viable strategy against the skills shortage. But before you start doing so, make sure you have at least tried to ponder upon these concepts:

1. Reimagine job functions

Identifying which functions in your organisation are fit for remote, hybrid, or onsite work arrangements. This will allow you to map out which roles you can source locally, regionally, or even globally to offshore outsourcing providers.

2. Forge regional connections

Cultivate partnerships with regional universities, local governments, and industry groups to build talent pipelines and awareness. At this time, you are likely facing less competition in the regions, and building a strong presence early will pay dividends later.

3. Focus on the big picture

The appeal of regional living—lower costs, strong community ties, and improved work-life balance—is undeniable to many professionals. You can use this to make a competitive but cost-friendly offer to the region's available talent pool.

4. Invest in development

If you have successfully built a team in the regions through remote or hybrid work arrangements, follow it up with skill acquisition initiatives. This will create a pipeline of future-ready professionals to help you grow.

Remember, looking for skills in the region shouldn’t prevent you from still pursuing your local or even global talent pools. It’s just a matter of where you see professionals from the regions fitting into your overall talent strategy.