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How Senior Leaders Can Tackle Australia’s Not For Profit Workforce Shortage


As Australia’s Not For Profit sector braces for an unprecedented rise in demand, senior leaders in large and very large care organisations face a pressing question: “Is your workforce planning prepared for the future?”


With a rapidly aging population, a growing NDIS and growing needs for service across the Not For Profit space, workforce shortages, and increasing service demands, recruitment in the sector is undoubtedly complex. However, emerging strategies offer a path to turn these challenges into opportunities for organisations to employ.



The Workforce Challenge: An Aging Population Meets an Aging Workforce


Australia is witnessing a significant demographic shift. The Aged Care sector alone will likely face a shortage of 110,000 direct care workers over the next decade, growing to 400,000 by 2050. Complicating this is the fact that the workforce itself is aging, with nearly half of today’s employees expected to retire within the next 15 years.


For leaders in Not For Profit organisations, these statistics point to a worsening of an already problematic situation. Without proactive measures, the sector risks collapsing under mounting demand with too few workers to meet the needs.



Recruiting and Retaining Talent: A Persistent Dilemma


Low wages, limited career growth, and demanding working conditions have created a perfect storm in recruitment. Whilst the (now not so recent) Fair Work Commission's 15% wage increase for direct care workers was a welcome improvement, the gradual 18-month rollout has in all probability impacted the effectiveness of the increase in retaining talent long-term. Rural and regional areas, with their limited infrastructure and employment incentives, face even tougher challenges.


How can organisations position themselves as competitive employers while simultaneously ensuring meaningful, sustainable care? The answer lies in multi-faceted recruitment strategies that address both immediate and long-term systemic issues.


Strategies to Overcome Recruitment Challenges


1. Refining Operational Efficiency Without Compromising Care

In times of budget constraints, organisations may feel pressure to cut costs, but operational efficiency doesn’t have to mean reduced care quality. Consider these approaches to optimise resources while easing workforce strain:


  • Streamline Administrative Processes: Invest in workforce management systems that digitise scheduling and automate routine tasks. One Victorian provider saw a 22% improvement in rostering efficiency through digital transformation, freeing up staff for direct care and reducing burnout—all contributing to better staff retention.

  • Flexible Rostering & Staff Mobility: Offer adaptable work schedules that promote a work-life balance. Particularly in remote areas, this strategy has reduced the strain of long commutes and tough working conditions for care staff.



2. Diversifying Your Talent Pipeline Through Skilled Migration

Skilled migration remains an underutilised opportunity. Streamlining visa processes and creating partnerships could pave the way to attract a global workforce, especially in regional and underserved areas.


  • Learn from the PALM Scheme: The Pacific Australia Labour Mobility (PALM) scheme brought in 1,245 workers by mid-2024, demonstrating modest success. Expanding such initiatives, while offering temporary housing arrangements, can accelerate the integration of skilled migrants, plugging gaps in the workforce, particularly in rural regions.

  • Targeted Migration Partnerships: Programs in Queensland and South Australia have shown success by offering skilled migrants temporary housing, effectively alleviating recruitment challenges in regional areas. Expanding these community-driven efforts could play a key role in attracting much-needed talent.



3. Breaking Down Gender Barriers: A Path for Both Genders

Not For Profit remains a highly gendered industry, with only 10-11% of its workforce being male. Increasing male participation could help bridge the workforce gap while providing further diversity and resilience.


  • Promote Male Reskilling Initiatives: Encouraging men from industries such as construction or retail to reskill into Not For Profit roles has shown promise. Offering tailored qualifications and clear entry pathways for men could help bring balance to the workforce demographic.



4. Leveraging Technology and Training to Attract Modern Workers

By adopting cutting-edge technology, the Not For Profit sector can build a workplace that appeals to younger, tech-savvy candidates.


  • Promote Social Value through Technology: With $312 million allocated to digital transformation in the Federal Budget, this is the time for Not For Profit organisations to adopt innovative care models. The early adoption of AI-based scheduling and patient management software not only improves efficiency but also enhances job satisfaction by reducing administrative burdens.

  • Invest in Upskilling and Career Pathways: Creating clear career development paths through training, coaching, and mentorship is essential for employee retention. Empowering junior staff with leadership opportunities can ensure they see Not For Profit as a long-term, viable career.



5. Meet the needs of an aging population with an aging workforce

The Australian HR Institute (AHRI) identifies that only 12% of HR professionals would agree that they proactively recruit older workers into a range of positions and only 5% of HR professionals note that they would use mature age specific advertising and job sourcing techniques. This ageist approach to recruitment, would mean that organisations are not readily tapping into what could be an incredible market of candidates with life experience and valuable skills to boot!


  • Promote roles specifically to mature job seekers. Consider where to advertise, how to advertise and what benefits to offer.

  • Consider how to create an induction process with age inclusivity at the core; identify what a mature employee may need assistance on over a new school leaver.



Shifting Perceptions: Elevating Not For Profit as a Valued Profession


One of the core challenges affecting recruitment is the negative public perception of Not For Profit work. High-profile investigations like the Royal Commission into Not For Profit Quality and the sector’s handling of the COVID-19 pandemic have eroded its image.


  • Industry Image Campaigns: Sector leaders must advocate for a shift in how Not For Profit is viewed. Elevating its reputation to be on par with other healthcare professions could make it a more attractive career choice. Community engagement, better media representation, and celebrating Not For Profit workers’ contributions can significantly boost its appeal to prospective employees.

  • Youth Engagement and Vocational Pathways: Building direct pathways from schools and vocational institutions into Not For Profit should be a core long-term strategy. Targeted internships, apprenticeships, and placement opportunities can encourage younger workers to choose Not For Profit as a lasting career.



Conclusion: Leading the Future of Not For Profit


Faced with the looming workforce crisis, the Not For Profit sector has no choice but to innovate—and transform—its recruitment and retention strategies. Whether optimising operational efficiency through technology, expanding the talent pipeline via skilled migration, or reshaping the industry’s public image, the future of Not For Profit lies in proactive leadership.


Are you ready to take the next steps toward building a resilient workforce? By embracing flexibility, modernising the work environment, and ensuring stronger industry branding, the sector can offer not just jobs, but careers people seek to grow in.


As the sector evolves, it’s no longer just a question of how we prepare for the future—it’s about how we lead it.

 

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