Attraction and Retention of Skilled Workers in Regional Australia Part 1

The purpose of this research is too critically investigate the current attraction and retention strategies of skilled workers in regional Australia. For the purpose of this article I have removed the identity of the case study organisation and research data as I believe the findings are relevant across all industries, not the health sector alone.

This research was my final MBA project; therefore, it follows a strict academic structure and is heavily referenced. To access the full case study report, findings, and reference list or if you are interested in an in-person or virtual presentation please contact me direct.

2350 words.15 Minute read time.

1.   Introduction

Attraction and retention of skilled workers in regional Australia is a critical and complex talent management issue. This research aims to investigate factors influencing the decisions of skilled workers when accepting or declining positions in regional Australia.

This research aims to analyse the talent management strategies to recommend and improve skilled workers' attraction and retention outcomes in regional Australia. The research finds answers to what involvement communities, organisations, industry, and governments may have in helping attract and retain skilled workers. Qualitative secondary data was collected and analysed using a thematic analysis. Primary data was not collected or analysed.

This article consists of two parts and six chapters; Part one (1) introduction, (2) literature review, (3) presentation of findings and analysis. Part two (4) discussion, and implications, (5) recommendations and, (6) limitations and conclusion.

2.   Literature Review

When researching literature, the research question I posed was; What are the main factors influencing regional talent management strategies of skilled workers? To understand the current environment, I investigated existing theories and arguments in current attraction and retention strategies.

2.1 Human resource management

Lewis and Heckman (2006) conducted a critical review of talent management and identified three critical lanes of thinking around the perception of talent management and attraction and retention strategies. First, talent management is a replacement for human resource management, focusing on staffing, leader growth, succession. Second, talent pool development focusing on worker needs and career development. The final lane focuses only on managing star performers, and poor performers are disregarded. The authors suggest this approach has limitations and is not desirable as filling all positions with star performers is inappropriate in theory and practice. Finally, the authors note that when a talent management system is introduced across an organisation, it may be challenging to differentiate talent management from conventional human resource management.   

Farndale, Scullion & Sparrow (2010) research talent management through a human resource management lens concerned with strategic investments in talent identification, selection, development, planning and retention. The author's research suggests talent management is human capital operationalised, considering the talents competencies, knowledge, social and personality attributes expressed in performing and therefore commercial value.

In addition, Collings and Mellahi (2009) review strategic human resource management perspectives to achieve improved organisational performance. The authors discuss prior research in talent management reporting a paradigm shift in recent years from traditional human resource management related to sources of competitive advantage and strategic human resource management to more contemporary research specifically suited to today's dynamic and competitive environment.  The paper highlights variables to reflect the significance of attitudes and behaviours of talent achieving organisational objectives. The authors present a theoretical model for strategic talent management, discussing four main factors; recognising crucial talent positions, evolving the talent pool, designing a differentiated human resource management framework and outcomes.

2.2 Workforce planning strategies

Hutchings, De Cieri and Shea (2011) studied the workforce planning of the Australian resource sector. Their contribution to the literature provides an important perspective on work practices while dealing with challenges in attraction and retention of skilled workers; skill shortages, worker turnover, aging workforce, and changes in governance, leading to competition in regional locations. The study identified the need for further research into diversity and work life balance. In addition, the research identified strategies and important changes to improve workforce planning in regional areas; career development, competitive remuneration with total rewards management, better communication, and secure work life balance opportunities. The research concludes that regional communities and local government provide support to workers such as; sporting and community activities, better housing, education, and work options for family members for better work life balance.

 2.3 Career Development

Claussen et al. (2014) research investigate middle and senior management's promotion decisions and career development and the side-effects of retention of workers through learning and development programs. The research recognised the impact of social and human capital theories in talent management literature and focused on the social relationships that foster innovation, intellectual capital and eventually company performance. The findings of the research collected had direct implications for career development and talent management programs. Furthermore, the authors found that external networks may benefit senior managers when devising an organisational strategy. 

 2.4 Total rewards management

A paper written by Mabaso and Diamini (2018) highlighted the positive correlation of total rewards and organisational commitment. To understand the impact total rewards has on job satisfaction and improve worker performance, six elements of total rewards were observed; performance management, recognition, talent development and career opportunities, compensation, benefits, and work life balance. A multivariate regression analysis determined performance management, talent development and career opportunities have the highest contribution, while work life balance had a negative effect on organisational commitment. The authors acknowledge a total rewards strategy should be promoted to attract and retain skilled workers and motivate talent. In addition, to reduce turnover and increase job-satisfaction related factors, a customised total rewards strategy is recommended.

 2.5 Job satisfaction

The seminal work of Herzberg, Mausner and Snyderman (1959) defined job satisfaction as one of the features of job attitudes and is often identified by extrinsic and intrinsic values of job satisfaction. Furthermore, the values are often the basis of research measuring this multidimensional construct of worker job satisfaction. A study by Cowin et al. (2008) found that there is a complex relationship between self-concept and job satisfaction. The study researched that organisations that embed strategies enhancing workers self-concept are more likely to attract and retain skilled workers. The study found a stronger association between self-concept and retention than job satisfaction alone. Moreover, the authors acknowledge that the environment and other situational conditions impact the retention of workers. The study calls for further research into the impact of these strategies to enhance retention.

A further study by Farooqui and Nagendra (2014) found that for agile and fast pace organisations to stay competitive and grow human wealth in the 21st century, they must consider that the connection concerning job satisfaction and job performance is strongly influenced by person-organisation fit theory. The study discussed Schneider's (1987) seminal work, Attraction-Selection-Attrition framework, to analyse the effect of person-organisation fit and several outcome variables on organisational commitment. The study found that a high degree of congruence with person-organisation fit was critical to managing the recruitment, socialisation, and communication of workers effectively. In addition, the study found that improved person-organisation fit reduces turnover, increases organisational goals and workers personal goals. The authors conclude that additional studies are required to understand critical tenets of the ever-changing workplace and the impact of person-organisation fit on workers.

 2.6 Fit theories - Organisational psychology

van Vianen (2018) conducted an empirical study investigating a wide range of fit concepts, including; person-vocation fit, person-job fit, person-organisation fit, person-team fit, person-supervisor fit and person-environment fit. The research examined the level of personal and environmental attributes and respective outcomes using polynomial regression analysis on fit-outcome relationships. The research demonstrated that when workers personal and environmental attributes are compatible optimal outcomes occur. In addition, the study found that when there are discrepancies in the fit, positive outcomes reduce. Moreover, the author states that other organisational psychology theories, including; self-consistency, social comparison, balanced state, self-affirmation and similarity attraction hypothesis, support fit-theory.  The author concluded, workers have an innate need to belong and fit into the environment seeking validation, predictability and consistency in attitudes, beliefs, and behaviours. The author calls for further research on how workers may adjust to environments that may not fit the requirements and what environmental and individual elements may mitigate misfits.

 Summary

The literature review highlights a research gap between current contemporary theories and the purpose of the research. Therefore, further analysis is necessary to investigate factors influencing the decisions of skilled workers when accepting or declining positions in regional Australia. Furthermore, the research should answer this question; How communities may help organisations attract and retain skilled workers in regional Australia.

3.   Presentation of findings

 The secondary data sources in this report were assessed for suitability, including measurement validity, reliability, and measurement bias. Ethical considerations were studied when collecting data to ensure the secondary data was accurately and thoroughly collected, avoiding subjective judgement (Saunders, Lewis & Thornhill 2009). Yin's (2011) five phases of qualitative data analysis was used to collect and analyse the data. The secondary data was collected from five studies conducted between 2006 and 2020.  The collective research investigated strategies to increase the attraction and retention of skilled workers in regional areas. The full thematic analysis of the secondary data presented in the analysis section of this article is available in the full report.

 3.1 Qualitative data analysis

A thematic analysis of the secondary data revealed three main themes critical to attracting and retaining skilled workers in regional areas; individual, organisation, and environment. Furthermore, relationships between six sub-themes were discovered; (1) community, (2) work life balance, (3) total rewards, (4) career development, (5) job satisfaction and, (6) workforce planning.

3.1.1 Community

Five out of five studies reported that community was the most effective strategy in regional talent management. The research identified that the most significant impact on attraction and retention was environmental factors of workers.  The relationship between community and workers, social support networks, community acceptance, quality of lifestyle and workers innate need to fit in were reported as the most critical aspects of regional talent management (Becker, Hyland and Soosay 2013). In addition, one hundred per cent of secondary data collected found that social support networks in regional areas were currently inadequate, directly affecting the quality of lifestyle of workers and community acceptance.  Moreover, Godwin, Hoang and Crocombe (2016) found that one hundred per cent of research participants were concerned with social isolation and feared not fitting into the regional community.

 3.1.2 Work life balance

Five out of five studies reported work life balance as an influential attraction and retention strategy for a successful regional talent management plan. Work life balance includes considering workers' family needs, including career couples, school opportunities, and housing.  Moreover, workers' rural background and regional exposure before recruitment affect work life balance perception (Godwin, Hoang and Crocombe 2016).  The research data reported that participants with positive rural exposure and regional experience increased long-term retention (Miles et al. 2006).  Furthermore, participants who self-identified as rural were very comfortable in regional locations, whereas those that self-identified as urban were fearful of living and working in a regional area (Godwin, Hoang and Crocombe 2016). 

3.1.3 Total rewards

Four out of five studies reported total rewards, including financial viability, benefits, and incentives, impacted talent management strategies. The data presented financial incentives alone were not enough to retain skilled workers in regional areas. Offering higher remuneration packages without considering other talent management factors was shown as an unsuccessful strategy (Miles et al. 2006). Long-term income sustainability in regional areas concerned population churn and poor economic support in regional areas the significant factors for concern (Godwin, Hoang and Crocombe 2016).

3.1.4 Career development

Four out of five studies reported that career development, including professional opportunities, were highly significant factors skilled workers considered when choosing a position in a regional organisation (McKenzie 2011). The research highlighted regional areas attracting new graduates and being labelled professional nurseries with skilled workers gaining experience and career advancement only to leave once competent (Miles et al. 2006).  The data was supported by a further analysis that concluded that career opportunities in remote locations start with educational bodies and universities creating regional career pathways to fill workforce demand (McKenzie 2011).  Moreover, the data states that career development in regional locations is less competitive (Becker, Hyland and Soosay 2013).

 3.1.5 Job satisfaction

Three out of five studies found that job satisfaction, including the variance of experience exposure available in regional areas, was a successful strategy.  The data revealed that customer relationships, respect, care, teamwork, professional relationships, and environment influence job satisfaction. Furthermore, the least satisfied factors are; personal time, stress, income, organisational management, and professional time (Le et al. 2020). The data highlights a high correlation between job satisfaction, community, work life balance, total rewards, and career development. The interconnectedness of the sub-themes supports the secondary data and their impact on attraction and retention in regional areas (Le et al. 2020). 

 3.1.6 Workforce planning

Two out of five studies found workforce planning, including employment scarcity and security, made little impact on talent management strategies. Although important aspects of talent management were not highly impactful in this research context, the aging workforce and secession planning were not highly impactful. However, the retiring proportion of the current workforce are drivers that may impact future trends in regional Australia (Miles et al. 2006).

 The results of the thematic analysis of data present varying degrees of impact on talent management success. As expected, community and work life balance have a high impact on the success of talent management strategies.

 3.2  Reflections on findings

Successful attraction and retention of skilled workers in regional Australia are critical and complex (Lewis and Heckman 2006).  This research highlights the interconnectedness of talent management strategies and the importance of collaboration of individuals, organisations, and the environment to overcome high worker turnover (Hutchings, De Cieri and Shea 2011). As expected, two significant themes in talent management strategies in regional areas were identified in this research; community and work life balance confirming urban talent management strategies do not work in regional areas (Becker, Hyland and Soosay 2013).  

Next week I will share the discussion, implications and recommendations. (The most important bits of the research!).