Essay: Human Resource Challenges in Australia - MNG93215

This essay examines two significant human resource management (HRM) challenges confronting the Cotton On Group in Australia: skills shortages and an ageing workforce. It explores the detrimental effects of skills gaps among job applicants and existing employees, highlighting deficiencies in English, computer skills, and problem-solving abilities. The essay emphasizes the importance of effective recruitment strategies and proposes solutions such as employee training through seminars, workshops, and on-the-job training. Furthermore, the essay addresses the challenges posed by Australia's ageing population, discussing the increasing number of mature-age workers and the need for flexible employment opportunities and job redesign to accommodate their needs. It suggests implementing phased retirement options and mentoring programs to facilitate skill transfer between generations, ultimately aiming to mitigate the impact of a non-working population on the economy. The essay concludes by summarizing the key challenges and proposed solutions, reinforcing the need for proactive HRM strategies to address these issues.

Running head: HUMAN RESOURCE CHALLENGES IN AUSTRALIA
Human Resource Challenges in Australia
Name of the student
Name of the University
Author note

1HUMAN RESOURCE CHALLENGES IN AUSTRALIA
Human Resource Management (HRM) refers to function in a company that lays
emphasis on recruitment and the management of the workers in a company. It provides the
direction and the guidance to the people who are working in a company. The department of
the human resources provides knowledge, training, administrative service along with the
management advice that helps in the successful operations of a company. The human
resources helps in the development of an organization and it helps in generating the
organizational culture. Cotton-On-Group refers to largest global retailer in Australia which is
popular for the fashion clothing (Cottonongroup.com.au 2019). This essay discusses about
the challenges that the HRM of Cotton-On-Group have to face in the event of skills shortage
of the employees in a company. The essay also elaborates on the problems that the HRM of
Cotton-On-Group have to face when it is faced with an ageing workforce. The essay also
talks about the solutions that can help the HRM in overcoming the challenges in a company.
Australian Industry Group have reported that the employers would not be able to meet
the increasing demand for the skilled workers that would have a negative effect on the
performance of company. The human resources in Cotton On Group have to face challenges
in the event of skills shortage of the job applicants who are applying for the different
positions in a company. It has been found that there are knowledge deficits among the
employees who apply for the job that has a detrimental effect on the performance of the
company (Hrmonline.com.au 2019). The addressing of the skill gaps among the people of
the existing workforce has bad effect on the performance of a company. The workers of
Cotton On Group lack the skills in relation to the English, computer skills along with the
mathematics that makes the department of the human resources face hindrance in the
functioning of the company. The workers do not have the problem solving along with the
collaborative skills that raises challenges on the path of HRM of the company (Drennan and
Ross 2019). The human resources plays a central role in the process of recruiting and they

2HUMAN RESOURCE CHALLENGES IN AUSTRALIA
should have insight about the labour market conditions. The human resources of Cotton On
Group are faced with a challenging talent market and finding the right person for job is
becoming tough. The employees do not have the work experience and they lack the technical
skills that hampers the development of company.
The human resources of Cotton-On Group should be able to unique skills
requirements in relation to the industry and they should develop the effective strategies that
can help in bridging the skills shortages and the gaps in a company. The employees of the
company can be provided training with the help of conferences, seminars and the workshops
that can help in developing the skills and the knowledge of the employees (Stone and
Deadrick 2015). On-job-training can also be provided to the employees who have joined the
company that can help in improving the skill sets of the employees. It can prove to be
effective in imbibing the employees with the requisite skills that can help in the growth of a
company (Mountford 2013).
According to the census that was carried out in the year 2016, one out of the six
people within Australia is aged 65 years or more than that. The ageing population of
Australia have increased in the last century and it would continue to increase in the coming
years. Estimates have revealed the fact that by end of next decade, one out of the three
Australians would be above the age of 55. Retirement age within Australia is also undergoing
changes at the present age. Proportion of the people who are above the age of 65 years has
been increasing at a steady pace in the recent age. From the year 2006 to the year 2016,
proportion of the people within labour force who are aged 55 have increased by that of 13 %
(Hrmonline.com.au 2019). The trends along with the high cost of the living indicates that
number of the older Australians who are participating in labour force would continue to
increase. The demographics of Australia is changing and it is important that the business
should engage the mature-age workers that can help in reducing effect of the non-working

3HUMAN RESOURCE CHALLENGES IN AUSTRALIA
population on economy. The employers in the present age needs to know how to cater to
demands of the older employees (Stone and Deadrick 2015). The Australians have a healthy
lifestyle however even the healthiest of the workers would be affected by the age related
problems pertaining to the physical strength along with the cognitive ability.
The human resources in Cotton On Group can take recourse to strategies that can help
them in managing ageing workforce. The human resources can develop the flexible
employment opportunities for the older workers that can prove to be useful in
accommodating their needs in a company. The jobs in the company can be redesigned that
can help in accommodating the physical restraints of the employees in a company (Nankervis
et al. 2016). The implementation of the phased retirement option can come to be of use for
the human resources of the company (Rao 2017). The human resources can develop the
mentoring programs that can help in promoting the skill transfer in between the younger and
the older workers. The working within the intergenerational teams can prove to be of great
help in addressing issues pertaining to working within the multi-generational teams.
Human Resources of Cotton-On-Group are faced with the problems due to shortage of
skills of the applicants of the job. The knowledge deficit prevailing in the employees has
negative effect on the area of development of company. Training can be provided to the
workers by taking recourse to seminars along with workshops that can develop skills of
employees. Ageing population within Australia is increasing at a steady pace and it has been
revealed by estimates that in the next ten years one of the three Australians would become
more than 55 years old. Flexible employment opportunities should be made available to the
older workers that can help in accommodation of needs of company.

4HUMAN RESOURCE CHALLENGES IN AUSTRALIA
References
Cottonongroup.com.au (2019). The Cotton On Group | Australia’s largest global retailer.
[online] Cotton on Group. Available at: https://cottonongroup.com.au/ [Accessed 27 Sep.
2019].
Drennan, V.M. and Ross, F., 2019. Global nurse shortages—the facts, the impact and action
for change. British medical bulletin, 130(1), pp.25-37.
Hrmonline.com.au (2019). How to manage the challenges of an ageing workforce - HRM
online. [online] HRM online. Available at: https://www.hrmonline.com.au/mature-age-
workers/manage-challenges-ageing-workforce/ [Accessed 27 Sep. 2019].
Mountford, H., 2013. I'll take care of you: the use of supportive work practices to retain older
workers. Asia Pacific Journal of Human Resources, 51(3), pp.272-291.
Nankervis, A.R., Baird, M., Coffey, J. and Shields, J., 2016. Human resource management:
strategy and practice. Cengage AU.
Rao, M.S., 2017. Innovative tools and techniques to overcome HR challenges
globally. Human Resource Management International Digest, 25(7), pp.1-4.
Stone, D.L. and Deadrick, D.L., 2015. Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review, 25(2), pp.139-145.