Salaries need to lift to address skills shortage - study

A new report suggests companies need to up their wages to combat a growing skills shortage.

The 2017 Hays Skills Index found a talent mismatch, resulting in a gap between what employers want, and what's available.

The Index found a lull in workers available for IT, construction, and engineering jobs.

Hays managing director Jason Walker says it's not helped by the fact wages aren't rising to lure in workers.

"That's in areas in the high-skilled industry such as engineering, technology, the construction and civil construction market, where there's a significant amount of work going on," he said.

Mr Walker says incentives are also a good way to compete for workers - particularly as he notes a lot of companies are simply unable to offer more money.

"A lot of these projects are priced earlier on in the piece, so two to three years ago - and a lot of those wages are already built in," he explained.

"Of course, a lot of organisations don't have the coffers to actually increase the salaries."

Mr Walker says if money can't be used as a lure, other incentives need to be looked at in order to get more people into the jobs.