On August 13th, 2024, Joseph Lam wrote an article in The Australian with the title, "Just 1pc of Australian technology graduates read for work, report warns".
Although the title is attention-grabbing, it is important to examine the facts supporting the assertion. Is it true that 99% of graduates who are unprepared for the workplace are being hired by employers or are too many of them unable to secure graduate employment? This raises questions about the effectiveness of our higher education system and the potential impact on our nation's productivity and economy.
The report referred to by Joseph Lam is the Australian Information Industry Association's (AIIA) State of the Nation 2024 report. The data in the report comes from a survey of AIIA member organisations and this is the 5th year they have produced this report. So, there are historic metrics and the trend for the work-readiness of graduates is down from 3% in 2023 to a new low of just 1 percent.
As a result, 65% of employers are introducing post-employment development initiatives to address the skills gap. However, this means that over a third of graduates are commencing their careers without guidance or assistance to bridge this gap. This situation does not position Australian graduates favorably for a successful career right after university.
Australia's technology employers are confronted with tough decisions regarding their recruitment strategy. They can opt to boost their training and development budgets, proceed with a more cautious and selective hiring approach, or seek work-ready skills abroad. Simon Bush, the CEO of AIIA, pointed out that numerous Australian companies are recruiting tech professionals from India, the Philippines, and Vietnam. None of these choices are ideal, especially considering that with improved planning and initiatives, Australia could avoid this scenario.
Australia has always prided itself of being a smart country. But being work ready is far more passing university exams. Work-readiness involves applying knowledge in the context of a work environment. Only when knowledge is applied does it become a skill. For decades, the Australian IT industry has been debating whether we have a skills crisis or skills surplus. Industry must do more than just blame the education system.
The issue of poorly defining the skills problem leads to a lack of consensus on a solution. The development of work-readiness skills should not be delayed until after graduation. Instead, work experience and internships should begin well in high school and continue throughout the tertiary education program. This approach benefits not only students but also employers and the nation as a whole.
40 years ago, Germany went through a reckoning on the mismatch between graduate skills and available jobs. Universities changes their degree admission requirements to require a sponsor organisation to assure relevant practical experience was available in tandem with the course of study. This arrangement was not unlike an apprenticeship where the course takes longer but the outcome is absolutely ‘work ready’.
For over two decades, the ACS Foundation has championed the integration of work placements into the career plans of Australia's companies, universities, and students. The Foundation has not only advocated for this change but has also facilitated it by placing hundreds of students into work placements annually. However, there is still much to be done, including a shift in industry culture. Similar to the legal and medical professions in Australia, which require internships as part of the educational process before graduation and certification, the ACS Foundation suggests that the IT industry should adopt a similar practice for the advancement of our nation and its future.
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