The Growing Gap in ER Skills Among Emerging HR Talent in Australia

As specialist HR recruiters, we have a unique insight into client expectations and the realities of the talent market. Over the last year or so we have noticed a growing misalignment in Employee Relations (ER) capability within junior HR professionals. While organisations are increasingly seeking strong ER expertise, particularly as workplace issues grow more complex and regulated, this skillset is in short supply among early-career HR professionals. My colleague Rachel and I, are seeing this consistently across the market.

Noticing this trend, we reached out to Aaron Gooney, Partner in the Workplace Relations practice at Pinsent Masons for comment.

Why is there a gap?

Over the past decade, HR has evolved significantly, with a stronger focus on strategic initiatives such as talent acquisition, culture, diversity, and employee engagement. As a result, foundational ER skills, once core to HR roles have often been deprioritised in graduate programs and entry-level positions. Many junior HR professionals have built their careers in business partnering, recruitment, and HR operations without significant exposure to the nuanced realities of workplace disputes, performance management, or navigating complex industrial instruments.

Aaron comments: “ER requires a broad skill set, including managing psychosocial risks, handling sensitive grievances, supporting mental health, and guiding managers through complex interpersonal situations.  Many HR professionals, particularly newer professionals, have not had enough exposure to real-workplace situations, especially in high-pressure or legally sensitive contexts. In addition, there has been an evolution in employee expectations, and frequent legislative changes mean that HR and ER decisions can be more complex and scrutinised than they have been previously.”

Why the demand for ER support is growing
Organisations are contending with increasingly sophisticated ER issues, including:

• Rising psychosocial risks and mental health claims following legislative reforms.
• Heightened scrutiny from regulators such as the Fair Work Ombudsman, particularly around compliance with modern awards, wage underpayments, and workplace rights.
• Increased conflict and grievances, often linked to hybrid work arrangements, team cohesion challenges, and shifting employee expectations.
• Post-COVID workforce fatigue and changing work models, creating new challenges in performance management, workplace conduct, and disengagement.
• Cost pressures and restructures driving an uptick in disputes, redundancies, and union activity

These factors demand ER specialists who can balance compliance, risk mitigation, and employee experience.

Aaron agreed and shared that “Workplaces are becoming more complex in terms of workplace issues and legal compliance, as well as fast-paced. It’s not just about knowing the rules, it is also about applying them practically, in a responsive, consistent, and professional manner, while also being the custodian of the organisation’s values and ethos.  Today, an HR professional juggles competing priorities, from recruitment and compliance to employee wellbeing, while also keeping sight of the organisation’s strategic objectives.  Accordingly, having sound ER knowledge is critical.”

Bridging the skills gap

As ER challenges intensify, organisations need to take deliberate steps to build capability among emerging HR talent. Structured training, mentoring, and progressive exposure are key to equipping professionals with the confidence and skills to manage risk and support leaders effectively. Practical approaches include:

• Investing in structured ER training – case-based learning through simulated ER scenarios, with particular emphasis on investigation skills.
• Facilitating shadowing opportunities or structured mentoring programs, enabling early-career HR professionals to observe and learn from experienced practitioners.
• Developing confidence through gradual exposure allowing junior HR staff to build capability step by step rather than being thrust into complex cases unprepared.

Aaron cemented this view by saying “Organisations should focus on practical development.  Mentoring programs that involve work experience shadowing with experienced ER practitioners, running scenario-based workshops and using real case studies to build skills, confidence and assessment competencies.”

If anyone in my network would like to discuss this particular challenge in more detail, please get in touch!

---

---