As if you needed more proof that the age of the digital economy is upon us, right?
Seriously, though. 2020 may have forced companies the world over into adapting digital practices for both workplace and marketplace. But such a shift was inevitable. The pandemic simply sped things up.
And now, we’ve got the numbers to confirm it.
The Upcoming Digital Skills Shortage in Numbers
According to research from Amazon, Australia will need 6.5 million MORE digital workers by 2025.
In addition to this, the current crop of digital workers will need to develop seven new digital skills in the next five years. These include large-scale data modelling, software operations support, web/game/software development, cloud architecture design, and cybersecurity skills. Otherwise, Australia will miss out on billions of dollars in post-pandemic economic growth.
Amazon Web Services commissioned consulting firm AlphaBeta to conduct the survey. They surveyed more than 500 digital workers, including technology experts, business leaders, and policy makers.
However, the survey also revealed a looming shortage of digital workers. In order to prevent this, the number of newly skilled and reskilled workers will need to grow by 79 percent Down Under by 2025.
“Our research shows that business-as-usual approaches to digital skill development won’t get us there,” said Dr. Fraser Thompson, Managing Director of AlphaBeta.
“A digital worker in Australia today has about 6.5 digital skills on average, but all workers – digital or not – will need to gain an additional seven skills to keep pace with technological change by 2025. We also need to go beyond just upgrading existing digital workers – the majority of new skill requirements will be with new job seekers, those involuntarily excluded from the workforce, and workers who do not use digital skills in their jobs today.
“The challenge is huge, but the payoff would be tremendous in terms of stronger economic growth, higher incomes, and a more equitable and resilient economy.”
How Outsourcing Can Help
A couple years back, about a fifth of small business owners cited a labor shortage as the biggest challenge for their sector. Many of them mentioned having to pay well above the market rate just to attract and retain qualified workers.
With the possible shortage of quality digital workers on the horizon, this isn’t likely to improve.
So, many small-medium businesses turned to outsourcing. Why? This practice of hiring remote workers in other countries happens to have key inherent advantages:
1. Access to a wider talent pool.
With outsourcing, you can hire the best of the best from ANYWHERE in the world. Your reach is no longer limited to the talent in your neighbourhood. This is especially useful if you want to tap into the talent pool of countries known for their digital expertise and mobility, such as the Philippines.
Besides, the work from home model also allows certain groups to contribute their unique talents to your business, further expanding your reach. These include stay-at-home moms, the physically handicapped, and working students.
2. Competitive wage rates.
Done properly, outsourcing gives you the best of both worlds. With the exchange rate in your favour, you can easily hire a team of six on the wage of one local worker – and still end up paying a decent and livable wage.
Furthermore, it’s hard to compete with big businesses in the local labour market. Small businesses like yours simply won’t be able to offer the same wages or benefits.
What you can offer, on the other hand, is better schedule flexibility and a close-knit, healthy company culture, which leads us to…
3. Improved employee retention.
More than an impressive salary package, the opportunity to set up a good work-life balance can entice many employees to stay. Working from home allows people to spend time with their families throughout the day, and to work at their own pace.
Working from home while earning Australian dollars without having to leave their home country and their families behind? Now, that’s irresistible.
Best of all, there aren’t any high barriers to entry when you outsource specialised roles. There might be a learning curve, sure, but if you do your homework (or partner with a reputable agency), that won’t be such an issue. All in all, it’s a low-risk, high-reward strategy for coping with the upcoming digital labor shortage Down Under.
Fortunately, Remote Staff has had more than ten years of experience in recruiting and onboarding top Filpino remote talent for various roles. You can bet that we can find the right person for your company’s unique outsourcing needs, be it today or in 2025.