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Talent Gap Is A Major Issue In The Productivity Of The Organization

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Write a Business Report, addressed to the CEO of your Organisation, Drawing from a News Item and Providing Recommendations.



In the present business scenario, the competitiveness among the business organizations has increased. The major challenge for the HR professionals is to meet the skill gap and finding the right talent for the organization. With the increased opportunities in the job market, the skilled workforce is frequently switching their job which has resulted in the development of a number of retention strategies (Martin, 2010). The technology based companies in Australia are suffering most from the talent shortage in Australia. Addressing this talent gap is the major function of Human resource management. The Human resource department implements a number of processes of recruitment, selection, training, development and the retention to address this issue. In the human resource management, the managers strategically identify the current and the future workforce requirements of the organization and develop strategies to address (Simons, 2011). In this regard, it is scrutinized that thee issue of talent shortage is emerging in Pexa. The HR department is overseeing the employee benefit design, recruitment, training and development and performance appraisal so that the issue of talent gap is addressed (Mathis, Jackson & Valentine, 2013). However, there is lack of experiences workforce with appropriate skills in Australia. Pexa is Melbourne-based staffing organization with approximately 201 staff members. It is an online platform focused on the property transactions. The organization has a highly competitive work environment with the requirement of skilled and talented workforce. However, in the present business scenario, the company finds it difficult to recruit and retain the most talented workforce in the organization (CRN, 2016).  The present report is developed in response to a recent news article related to the talent shortage in the Australian industries. Similar issues are also emerging in the organization.

In this regard, thee present report, addressed to the CEO if the company, discusses the issue of the skill shortage in Australian business organizations. The report has explored the issue of the contemporary talent shortage problem in Australia. It has also discussed the opportunity of hiring the experienced workforce rather than relying on young workforce.


Discussion of the NEWS and Relevance to Pexa

Pexa is a technology based organization which creates and optimizes the online solutions for property transactions in the country. In its operations, the company has to implement latest technological solutions to optimize the mobile application. Moreover, the company also requires the talented workforce which is acquainted with the latest technological developments. Currently, the organization is facing problems in the recruitment of talented workforce. The skilled people are demanding very high remuneration which is not justified to the company. Other than that, the available workforce does not have the desired skill set.

In the news story, the problem of the talent shortage in Australia is discussed. The news story highlights that the workforce in Australia considers the age as a significant barrier in their career progression. The workforce may face problems in switching in different organization or at different posts at a later age. However, this problem cannot be mitigated by increasing the number of the employer who agrees to hire experienced workforce. The business organizations must also induce a working environment which is supportive of the workforce of different generations. It is also important for the business organizations as recruiting the workforce of different generations can increase the capabilities and the productivity of the organization. However, in Australia a large number of business organizations remain skeptical in hiring employees at senior ages. It is creating talent gap in the country wherein there exists a large number of vacant job posts; however, there are limited talented workforce who can fill these positions (HCA, 2016).

Human Resource Issues Raised

In the news article, the primary human resource issue raised is the attitude of the business organizations to recruit the young and inexperienced professionals. It has created significant skill shortage and thee talent gap in the economy (Lyon & Brenner, 2015). It is due to the perception of the companies that hiring young employees will create a positive and energetic culture in the organization. Moreover, the companies assume that the young people are more eager to work, can multitask and work under pressure. The young workforce is also ready to get hired and can positively impact on the business productivity.

However, hiring experienced employees can contribute a lot to the success of the business. The employees can contribute with their knowledge, contacts and experience (Dries, 2013). Moreover, it can address the current skill shortage situation in Australia.


In addition to it, the news article has also highlighted the situation of the talent shortage in Australia. The primary role of the human resource professionals is to address the talent requirements of the organization. It includes the manpower forecasting and prediction, devising strategy to address them and adopting the retention strategy or internal transfer to meet the talent requirements in the organization (Jackson, Schuler & Jiang, 2014).

However, the presence of the talent shortage along with number of people looking for work is a complex issue. The talent shortage can be defined as the process wherein the employers complain that they cannot find the people with the skills and the background at the compensation that they are willing to offer. Both small and big organizations are suffering from the talent shortage. The employees in the skilled roles are the hardest to find and with the increased gap, the companies are increasingly turning towards the training and development to fill the talent gaps in the organization (Marler & Fisher, 2013).

Currently, the shorter skills cycles in the technology-based industry has also increased the issue of the talent gaps in the organization. When there is absence of talent, the organizations can identify the skills and train the current employees in the same (Dingemans & Henkens, 2014). The current rate of unemployment is also low which makes the acquisition of the workforce more difficult. In this regard, the recruitment of the experienced or the retired workforce seems a feasible option for the organization (Sims, 2007).



In the above section of the report, the issue of the talent gap in the technology companies has been identified. The talent gap is a significant issue in the human resource management of the organization and can hamper the productivity and the performance of the employees. It refers to the phenomenon wherein the companies have the jobs for the people; however, they cannot find the suitable candidates for the posts. In the present context, following recommendations are made to fill the talent gap in the Australian companies:

The recruitment of the retired workforce seems a feasible solution to address the current talent gap. However, it is important that the companies establish a positive work environment so that there is minimum friction between different generations. It is an established fact that diversity and the inclusiveness of the workforce increase the productivity of the organization (Rau & Adams, 2014). It is also essential in fostering innovation and research in the business organizations which is crucial for the organization success in the contemporary times. Therefore, creating a positive work environment for the workforce is beneficial for the organizations. The business companies should create a positive work environment in the organization to increase the productivity of the employees. They should also understand the needs of the senior employees and change the organization’s policies accordingly (Beehr & Bennett, 2014). The companies can partner the senior employees with the junior employees of the organization so that the senior employees can mentor their juniors with the desired skills. It will also be possible to create a friendly and harmonious work environment with creating inclusive teams (Radovi?-Markovi?, 2013).

The business organization should also adopt a recruitment strategy wherein the skill set and previous experience is given the highest priority. The companies should also implement the recruitment strategy according to the job profile. If the job does not demand heavy work than the companies may can easily hire senior people at such posts (Armstrong-Stassen, 2008).

In order to address the talent gap issue, the companies can also implement the training and development for the up skilling of the current employees. The existing employees of the organization are familiar with the organization culture and processes or operations of the organization. Therefore, if the companies can increase the skills set of these organizations; it will be beneficial to address the talent shortage and the skill gap. It will also be beneficial for the organization as the company will not need to run an induction program for the new employees (Nappinai & Premvathy, 2013).



It can be concluded that talent gap is a major issue in the productivity and performance enhancement of the organization. The companies need to address the current talent gap so that the operations of the organizations can run smoothly. There are a number of strategies which can be employed to address the current talent gap such as retention strategies, employee training and the recruitment of the retired workforce. The technology companies of Australia are having serious issues in finding the talented employees due to short life time of new technology and low unemployment rate. The organization can focus on creating a positive work environment in the organization so that the employees can establish a harmonious organization culture between the senior employees and the junior employees.




Armstrong-Stassen, M. (2008). Organisational practices and the post-retirement employment experience of older workers. Human Resource Management Journal 18(1), 36-53. 

Beehr, T. A., & Bennett, M. M. (2014). Working after retirement: Features of bridge employment and research directions. Work, Aging and Retirement, wau007.

CRN. (2016). Here are the best tech companies to work for in Australia. Retrieved on 28 March 2017 from

Dingemans, E., & Henkens, K. (2014). Involuntary retirement, bridge employment, and satisfaction with life: A longitudinal investigation. Journal of Organizational Behavior, 35(4), 575-591.

Dries, N. (2013). The psychology of talent management: A review and research agenda. Human Resource Management Review, 23(4), 272-285.

HCA. (2016). Is the ‘retired’ workforce the solution to the talent shortage in Australia? Retrieved on 28 March 2017 from

Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), 1-56.

Lyon, L., & Brenner, A. (2015). Bridging the data talent gap: Positioning the iSchool as an agent for change. International Journal of Digital Curation, 10(1), 111.

Marler, J. H., & Fisher, S. L. (2013). An evidence-based review of e-HRM and strategic human resource management. Human Resource Management Review, 23(1), 18-36.

Martin, J. (2010). Key Concepts in Human Resource Management. SAGE.

Mathis, R.L., Jackson, J.H., & Valentine, S.R. (2013). Human Resource Management. Cengage Learning.

Nappinai, M.V., & Premvathy, N. (2013). Employee Attrition and Retention in a Global Competitive Scenario. International Journal of Research in Business Management, 1(6), 11-14.

Radovi?-Markovi?, M. (2013). An Aging Workforce:Employment Opportunities and Obstacles. Cadmus, 1(6), 142-155.

Rau, B. L., & Adams, G. A. (2014). Recruiting older workers: Realities and needs of the future workforce. The Oxford handbook of recruitment, 88-109.

Simons, R. (2011). Human Resource Management: Issues, Challenges and Opportunities. CRC Press.

Sims, R.R. (2007). Human Resource Management: Contemporary Issues, Challenges, and Opportunities. IAP.


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