Big Picture by Sheryle Moon

As children, parents and teachers were our mentors, but as adults in the working world, mentors can be hard to find. In Big Picture, industry leaders share their views, experience, advice and tips on making today’s followers tomorrow’s leaders.

Turning the tide on skilled immigration

Posted by Sheryle Moon @ 15:37 35 comments

While we continue to talk about Australia's ICT skills shortage, more than 3,000 potential sponsorships are being blocked by impediments to the 457 visa scheme.

Sponsorship of skilled workers is an important source of workers for the ICT industry. In the past, 457 visa migrants help to bridge Australia's skills gaps, particularly in technical "hotspots" such as .NET, security, Java, C++, Siebel and SAP.

And yet, under regulations which took effect on 1 October, 2007, on-hire companies that seek to sponsor overseas skilled workers can only do so through labour agreements.

This means labour hire firms cannot sponsor 457 workers unless they meet their expenses, keep on their books a percentage of local workers who are receiving training, and invest at least two percent of their gross wages bill on training.

Before you say "but 457 visa applicants are taking Australians' jobs", consider this: since the introduction of the new laws, other countries have continued to recruit Australian ICT professionals. In the seven weeks that followed the laws, there was an outflow of Australians, but no inflow of ICT professionals in Australia.

Unless we turn the tide, we'll have no industry left.

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Talkback 35 comments

    Which recruiter do you work for? Anonymous -- 03/03/08

    "Sponsorship of skilled workers is an important source of workers".

    A commitment to training existing workers rather than a blinkered view of skills based on keyword searches of resumes by recruiters would be a much better source of skilled workers.

    Which recruiter do you work for? Susan Young -- 03/03/08 (in reply to #320096634)

    It's unfortunate the recruitment industry still has an overwhelming reputation, especially in IT, for employing consultants who simply do 'keyword searches' within their databases to find suitable candidates for roles.
    In my experience (which is 9 years in IT recruitment) it is important to understand the actual needs within the organisation and if there can be training of exisiting employees before heading down the recruitment path. More often that not, specialised skills are required to complete projects so in a lot of cases, training exisiting workers isn't an option for most employers. Due to this, the ability to hire candidates from overseas on 457 visas has provided the ICT industry with an extra source of skilled professionals who can hit the ground running. Most Australian companies who have requirements for IT professionals will already be planning their workforce, organising training and building talent models so that they can avert a situation of having no skilled people available. As a client or a candidate, you should be partnering with an IT recruitment consultancy who actually has a team of professionals who do understand the needs of the organisation / person and who can work with you to build a solution. The blinkered view of skills based on keyword searches then will not be an issue.

    Recruiters Anonymous -- 23/03/08 (in reply to #320096642)

    I am a 20-year++ veteran of Telecommunications and IT with a long track record. I'm thoroughly sick of recruiters who don't know up from down, can't define a role, are too lazy to spend more than a few minutes reading a submission that they don't have the education knowledge or experience to understand and who assume knowledge they haven't got. There is no skills shortage, only a flood of offshore people working here cheap because of recruiters' lobbies and the penny pinching attitudes of employers who jump at the chance of getting cheap services. If ever there was a need to regulate an industry, it's the recruitment industry. Admittedly, some recruiters have a backgound in ICT and I respect that. However, I was interviewed about a month ago by two idiots who were both non-technical, didn't understand my cv or ANYTHING TO DO WITH THE TECHNOLOGY - They just wasted my time.

    Sponsorship of Skilled workers Anonymous -- 23/03/08 (in reply to #320096634)

    With that opinion, you have identified yourself as one of the people who have ruined the Australian ICT industry. You may not know it but there are THOUSANDS of ICT people out of work and the county has been flooded by immigrants because of lies propagated by the IT Recruitment Lobby. I'm not saying that the imports are no good; just that people like yourself are naive. Think about this - there are limits of knowledge and wisdom, but there is no limit to stupidity.

    which recruiter? - read the bio and youll see Anonymous -- 24/03/08 (in reply to #320096634)

    This article has its own agenda - which recruiter you ask? read the bio...
    "Recruitment and Staffing Solutions, Australasia for employment services provider, Manpower Services Australia."

    Shortage of Skilled Workera Anonymous -- 29/03/08 (in reply to #320096634)

    I am a victim of Recruitment Companies who employ people who haven't got a clue about the industries, frame job descriptions inetly and frankly don't know squat. Last month in Sydney two employees of a large recruitment company interviewed me as a result of my submitting my cv for a 3G role. They both admitted to me that they hadn't the slighest clue about technology and asked me to dumb down what I had written. I tried to do this, but they still didn't understand. After the interview, I never heard from them again. I can only assume that they went back to the company's HR Department and mumbled between them about things they knew nothing about. The real skills shortage in my opinion is recruiters like these who have no product knowledge, only devote three minutes to read submissions they don't understand and simply ruin the industry for everyone. This doesn't apply to all recruiteers by the way. Some actually know what they're talking about and some also come from the industry which is refreshing. What they have to realise is that they selling the talents, know-how and experience of people like me. As well as being an engineer and a project manager, I have a background in business and understand commercialism. If any employees of mine had demonstrated no product knowledge, they'd be out the door quick smart.

    Say no to immigration to IT S S -- 03/03/08

    Ask any recent graduate in IT, you'll know how rosy the market is. It is really time to stop export ready made skills from outside and build skill base in the country. Thanks to government to take a such a bold step

    ICT Skilled Shortage Anonymous -- 04/03/08

    It's just a hype.

    After almost 3 decades in IT, my job was outsourced to India. I was made redundant. I haven't been able to find another job in my lucky country.

    If I'm missing some of the cutting-edge technologies, certainly it will take me a few weeks to acquire the knowledge and master such new sofware products.

    Most important is that I'm an IT professional with solid experience, transferrable skills, high quality education including an Australian MBA, and "I-Can-Do" Attitude. I'm flexible, open-minded and ready to start immediately.

    The $$$ has never been an issue. I'm willing to accept a lower-than-the-market rate.

    Software products are just tools! The genuine question is "Would Shakespeare have been a better writer if he had a word processor?!!!"

    Definitely, upgrading my skills is a cheaper option.

    Moreover, my wife and our three children will be more than happy with me getting a job rather than queueing at the Centrelink.

    By sending Australian IT jobs Overseas, many IT professionals will be forced to take jobs in Security, Taxi, Restaurants, etc. Or, queue at the Centrelink.

    I'm urging the employers and recruitment agencies to re-think.

    Not being able to get a job Anonymous -- 23/03/08 (in reply to #320096702)

    I have been in the industry for a long while and aam suffering dreadfully even though I have a lot of experience and am well qualified. I went to a Telstra Reunion about a month or so ago and 99% of the attendees were unemployed and had been since Beasley proposed privatisation and Howard Championed it, thus creating two monsters - Telstra and Optus. That's where it started and now it's got worse with Telstra being run by a salesman for the modest sum of $11 Million a year and Optus being run by a banker. Deregulation was a disaster created on a false premise and it needs needs to be rethought . If anyone's interested, surf the Web for a series of reports written by the Professor Emirita of the University of NSW's Faculty of Law znd you'll see what as botch the politicians made of it. In Beasley's words, "Plumbers Trying to do Brain Surgery. Now their role has been taken over by Bankers and Salesmen. Why not let Australians run these industries. They built it in the first place. Send all the foreigners home!

    NAB Offshore 264 Staff Anonymous -- 04/03/08

    More jobs going offshore but the recruitment agencies still try to justify brining in workers as well.

    This is a big con job being perpetuated on employees and employers.

    Sheryle Moon is talking crap trap Anonymous -- 05/03/08 (in reply to #320096714)

    "Unless we turn the tide, we'll have no industry left"
    There are thousands of unemployed ICT workers in this country. We need more plumbers and electricians, not programmers !

    Recruiters fail to comply Tony Healy -- 05/03/08

    Sheryle, visa sponsorships are not blocked at all. Any company with a genuine vacancy can still sponsor a 457 visa.

    The only change has been that recruiters must comply with some simple requirements regarding training, yet most are unable or unwilling to do so. Most countries don't let recruiters sponsor temporary worker visas at all, for good reasons.

    One of the factors that killed the Howard government was its slavish acceptance of claims from ITCRA and its ilk, noticeably in Workchoices. Let us hope Labor has more intelligence.

    Labor hire, ITCRA and the ACS are long overdue for a parliamentary inquiry.

    Utter Garbage Anonymous -- 05/03/08

    What a load of tripe!! I can't believe the sheer lunacy of so-called IT experts asking for the IT flood-gates to be opened. THERE IS NO SKILS SHORTAGE!!! With jobs being outsourced on a monthly basis, how can anyone claim there are no skiled IT professionals. Existing professionals could easily be re-trained and those with no experience could be put on a trianing wage. I hate to burst IT peoples' bubble, but IT is not brain surgery!!!! Look in today's myCareer section of The Age (WED 5th March) and there is a story on a secretary who ended up with an IT position before she even got her degree. Try doing that with law or medicine.
    And no one neds the ACS to further their career. It is a totally irrelevant and useless organization.

    Anyone who says there is no skills shortage Anonymous -- 05/03/08

    Clearly hasn't tried to get a good BA recently.

    The issue is whether recruiters can rort the system Tony Healy -- 05/03/08 (in reply to #320096785)

    The issue here is not whether there's a skill shortage. If there are skill shortages, then genuine employees are completely free to sponsor a 457 visa.

    What Sheryle is whinging about is that her mates in the recruiting industry are no longer allowed to rort the system.

    Sheryle, your post here is blatant lobbying. Are you suppposed to use your blog for this?

    Getting a good BA Anonymous -- 23/03/08 (in reply to #320096785)

    What relevance has this. Obviously they're teaching rubbish you failed or the BA you studied for was based on a load of codswallop! You are certainly not affected because you don't come from the industry. I'm not aware that BAs have really contributed to the ICT industry.

    It takes one idiot... Anonymous -- 27/03/08 (in reply to #320098147)

    BA=Business Analyst... Oh dear

    ICT Skill Shortage?!!!!!!!! Anonymous -- 05/03/08

    What Skill Shortage?

    If the employers spend part of their YEARLY training budgets to upgrade the skills of their dediacted and loyal OZ employees, there won't be any need to send jobs offshore. There won't be that hype of Skill Shortage.

    Rather than doing the right thing, the budget is used to cover up the mistakes of the Senior Management and incompetent Project Managers who failed to launch on time and within budget.

    The tragey is they still keep their jobs and gettheir bonuses while the poor guys like me lose their jobs to some new comers in India.

    It's just a JOKE!!!!!

    Utter BS Anonymous -- 05/03/08

    "Unless we turn the tide, we'll have no industry left."

    Perhaps no IT Recruitment Industry. Come to think of it, I am not sure that is such a bad thing.

    I really hope the government does not fall for this crap.

    I think it's appalling Anonymous -- 05/03/08

    I think it's appalling that Recruitment companies now have to fill in paperwork and spend money on training - when all they want to do is make a quick dollar and leave the industry in perpetual ruin for graduates.

    More shocking is the lack of sympathy offered by other business groups and the general public.

    People don't seem to understand that the Recruitment industry is the hub of IT in Australia, because it's the only thing now left in Australia.

    Australia's IT recruitment industry has a proud tradition of forecasting looming IT shortages, over and over and over again.

    I poo poo these people who seem to think they have cried wolf one too many times!

    Appalling Anonymous -- 29/03/08 (in reply to #320096832)

    I agree that the Recruitment industry is appalling. I can understand that they don't like filling in paperwork probably because they have difficulty writing. There are some good recruiters who use knowledgeable people who have worked in the industry and understand that it's a two-edged sword. Many recruiters see their clients as the company they're recruiting for. However, we, the candidates are also their clients because we rely on them to pass on the submissions we present to someone who has the need, not make half-arsed judgments themselves about things they know nothing about. If ever an industry needed regulation it's the recruitment industry.

    Please explain... Anonymous -- 13/03/08

    http://www.australianit.news.com.au/story/0,24897,23351846-15306,00.html

    Why is it that Australia is the only country that allows recruiters to sponsor temp. workers?

    Let the record show ... Tony Healy -- 25/03/08

    Let the record show that Sheryle's claims are completely wrong. She claims the clampdown stopped the entry of IT workers completely, but Immigration Department figures show there was no reduction at all.

    http://www.australianit.news.com.au/story/0,25197,23351846-15306,00.html

    As a former recruiter with Andersen Contracting and Manpower, surely she would be aware that restrictions on recruiters are not restrictions on all employers. Why did she make such claims?

    There is NO IT skills shortage in OZ. Anonymous -- 25/03/08

    The job agencies are so hopeless at their jobs that we should take a leaf from certain European countries and get rid of them. The are complete time wasters and skew any meaningful data on the real employment situation.

    For those of you looking for IT work may I suggest you stop wasting your time with the agencies and go door knocking direct.

    My last two jobs were found that way and in both instances after getting the job I then had to find an agency to "represent" me. They are useless.

    Recruiter Davo -- 26/03/08

    You say "took effect on 1 Oct 2008"?? Just the first of several big mistakes in your blog or can you predict the future as well?

    Date -Ed. -- 27/03/08 (in reply to #320098643)

    Apologies for the error in date -- it was made in the subediting process. It has been fixed.

    There is one IT Recruiter with a Labour Agreement of Onhire Anonymous -- 26/03/08

    As far as I currently know the only company that currently has a labour agreement for onhire of IT skills is 3W Consulting Contracting & Recruitment
    http://www.3w.com.au

    This is garbage Lord Watchdog -- 26/03/08

    The only way to turn the tide here is for companies to stop sacking workers and handing their jobs to people in India. If you keep sacking people they will eventually leave the industry and work where they feel more needed and wanted.

    There is a real possibility that Labor will revert to their old ways and open the immigration floodgates again like Bob Hawke did. That, along with the corporate love affair with hiring slaves that are paid $0.86 an hour will do the damage that you want to avoid.

    I agree - the ICT skills shortage is mostly hype! Anonymous -- 30/03/08

    This acticle is exactly why I have never joined the ACS. Essentially they and the recruiters are in on this together as this creates disruption and churn in the job market which makes the recruiters loads of money and the ACS seem relevant.

    Thank god I am not alone in thinking this... retraining and upskilling are the answer... I still know many graduates unable to to find work due to indian ICT immigrants coming over in the last 12 months. I was quite shocked by this!

    Shame on you Sheryle...

    Look at the evidence Anonymous -- 01/04/08

    Today's Australian, again, reports of the skills shortage (http://www.australianit.news.com.au/story/0,24897,23462126-24169,00.html). Businesses all over the country are saying "we can't get enough good people".

    If the readers of this blog can't find a job, or the right job, maybe the problem is with them, not with the industry. Heaven knows there are enough companies out there keen to hire...

    Can't get enough good people? Anonymous -- 01/04/08 (in reply to #320098983)

    There are lots of good IT people everywhere both employed and unemployed in Australia.

    A good step in solving the perception of a "skills crisis" is to get rid of those that contribute to it - like those crappy job agencies, and those crappy employees making milk for them.

    It still amazes me that Prime Minister Kevin Rudd's wife made millions out of unemployed people. Talk about a false industry.

    Put an end to this charade now, and focus on building stronger work/career environments rather than generating churn for the sake of the middleman's cut.

    IT is a lousy career option Ex IT Guy -- 01/04/08

    I agree that IT is plagued by the recruiter phenomenon and the antics of the ITCRA and ACS however there are deeper causes for malaise that IT finds itself in.

    For starters ageism is rampant.

    Once 40 comes then, although no employer will tell you, it's adios amigo. Roles/jobs become harder to get. Telephone calls/emails go mysteriously unreturned.

    Secondly, IT suffers (deservedly) from a terrible image. IT people are, generally, at the bottom of the corporate tree and and really seen as nothing more than walking cost-centres.

    Thirdly, and this is a biggie, the threat of offshoring/overseas labour is very, very real.

    A skills shortage in Australia, whether it be real or imagined, is easily cured by the stroke of the immigration minister pen.

    Additionally, it's no secret that companies of all shapes and sizes continually strive to drive down IT costs using whatever means are at their disposal - offshoring is a key strategy in the pursuit of their corporate cost reduction goals.

    In 2002 I saw the train coming and was lucky enough to be accepted to a College of Medicine in my State. I'm on the home straight now and it's safe to say that I've never (never) regretted my decision to leave a long and unhappy IT career.

    I'd suggest others do the same.

    This would make a good April Fools day joke Anonymous -- 01/04/08

    I guess it got published early.

    What is lacking in this country is some sort of initiative to help Aussies get outsourced to wealthier nations, to move up the food chain.

    Either that or help them get re-aligned so they become 'good enough' for the employers. Not just certification, but a real retraining course targeted at a cooperating employer.

    Employers can't have it both ways Ranier Wolfcastle -- 02/04/08 (in reply to #320099014)

    The quote here is "can't find enough good people".

    This smacks of shoddy hiring practices. Other posters have pointed out ageism. I'd like to point out the ramapant keyword matching being used by agents and hiring managers as well as the phenomenon of paying peanuts and expecting a flood of candidates.

    Scenario number 1 involves hiring manager tells agent I want someone with 5 years XYZ experience, 4 years of ABC, 4 yeas of EFG and so on. Agent advertises and then generally rejects anyone with less than 5 years XYZ experience, 4 years of ABC and so on.

    Agent and Hiring manager then cry "skills shortage".

    Scenario no. 2 involves hiring manager advertising a role with pretty specialised skills and 10 years experience in said skills for $60k p.a. and then wondering why he/she has no candidates.

    Hiring manager then cries "skils shortage".

    Employers in this country have no idea generally, and agents are just parasites.

    How many times have we in IT dealt with the slick pommy backpacker masquarading as an agent who could not even spell IT?

    Immigration to australia PK -- 11/12/08

    I have launched a new site. You will find lots of information there. Visit:

    <a href="http://www.migrate2australia.net">Migrate2Australia</a>

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Sheryle Moon

Sheryle Moon

CEO, Australian Information Industry Association

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