Hiring Too Slowly Is Costing Australian Businesses: Why Global Teams Keep Growing
News · 2026-09-10 · 5 min read
Many Australian businesses are paying a hidden price. It is the cost of not being able to hire people quickly enough. This cost often stays invisible in the accounts until the damage is done. New workforce research from ConnectOS, a company that specialises in offshoring, now gives clear figures on the problem. For years, many HR and operations leaders have suspected it. A slow hiring process is not only an internal problem. It also hurts revenue and the trust of customers.
This topic is useful for job seekers too, including readers in Indonesia and across the region. It shows how employers think about talent, and which skills they want most.
The Hidden Price of an Empty Role
Some people see an open position as a small, short-term problem. The research does not agree. About one in three employers in the survey said hiring problems had already lost them customers. A similar share said the quality of their service had dropped. Nearly a third had missed project deadlines. More than a quarter had lost contracts or seen them delayed. Over a quarter had even said no to new business. Put together, this is more than a recruitment issue. It becomes a limit on how far a business can grow.
Before many of these firms started hiring offshore, important local roles stayed empty for 30 to 60 days at a time. In a busy market, that is long enough to damage a client relationship or ruin a project schedule.
Saving Money Is No Longer the Main Reason
This year's results show that offshoring is growing. More interesting is the reason it is growing, and how the types of offshore roles have changed. Two drivers now sit almost level at the top: skill shortages and rising wages. Each was named by around four in ten employers. Costs and risks linked to compliance come close behind. Cost savings used to be the usual reason to go offshore. Now it has moved further down the list.
The figures support this. Nearly two-thirds of the businesses surveyed already have offshore teams. Of the rest, two-thirds are actively planning to increase that investment over the next two years. Very few are cutting back.
Bigger Jobs Are Moving Offshore
The kind of work sent offshore tells an even clearer story. Customer support is still the most common function. But many roles that were once seen as too sensitive or too specialised are now a normal part of global workforce plans. These include IT and engineering, data and analytics, finance, cybersecurity, and even legal and HR. Employers say offshore roles have become clearly more strategic and more knowledge-based over the past three years.
The Countries Employers Are Choosing
South-East Asia is still the main region for this trend. The Philippines remains the top single destination. India and Eastern Europe come next. Vietnam and Malaysia are growing as other options. Each one offers a different mix of skills, cost and rules. This shows that employers are spreading their teams across several markets instead of relying on just one.
AI Changes the Work but Not the Need for People
Many people expect AI tools to reduce the need for offshore staff. The research shows something different. Two-thirds of employers already use AI in some way. Offshore teams are adopting it as fast as their onshore colleagues, and sometimes faster. The fastest-growing roles in offshore teams include data analyst, AI engineer and automation specialist. These jobs are growing, not disappearing.
So what does this mean? AI is taking over routine tasks. At the same time, employers need more people who can use good judgement, understand data and manage AI systems in real situations. However, training has not kept up. Nearly a third of employers give their offshore teams no formal AI training at all. That gap is worth fixing before it turns into a weakness against competitors.
Offshore Staff Are More Loyal Than Expected
A common belief is that offshore teams change staff often and do not feel committed. Data from the employees themselves says otherwise. Most offshore workers in the survey said they were proud of their employer. They planned to stay for the next year, and they rarely thought about looking for another job. Their engagement scores were well above both Australian and global benchmarks.
Still, loyalty has limits. A meaningful share of workers said they would leave for a better offer. Flexibility and pay were the strongest reasons to stay. In other words, a stable offshore team still needs real investment. Location alone is not enough.
Many Firms Are Unsure About the Rules
For employers building or growing offshore teams, compliance may be the most practical lesson. Most businesses agree that compliance expectations have risen sharply over the past three years. Yet only about a quarter feel truly confident about how they handle compliance today. Close to a third do not even know which regulatory standards apply to their offshore arrangements. This is a real risk, because rules on data privacy, information security and modern slavery keep getting stricter around the world.
Looking at the Long Game
The businesses that gain most from global talent will not simply chase the cheapest labour market. They will treat offshore capability as a core part of how they operate. They will invest in AI-readiness, clear compliance and a good employee experience, with the same care they give their local teams. While skill shortages continue and jobs become more specialised, the gap between reactive offshoring and careful global workforce planning will keep growing.
A Practical Note for Job Seekers
For workers in Indonesia and everywhere else, the message is simple. Skills in data, technology, finance and AI are in demand, wherever the job is based. Keep learning, and prepare a clear English-language CV that shows what you can do. Employers value people who can think, adapt and work well with new tools.
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