THE PATH TO BEING AN EMPLOYER OF CHOICE

1. THE PATH TO BEING AN EMPLOYER OF CHOICE LYN RUSSELL PSM CHIEF EXECUTIVE OFFICER THURINGOWA CITY COUNCIL DEPUTY PRESIDENT LGMA QLD NATIONAL DIRECTOR LGMA

2. THE CHANGING CULTURE OF LOCAL GOVERNMENT

3. HOW ORGANISATIONS ARE RESPONDING • Being organised differently • Employing and paying people differently • Being managed and led differently • Developing new workforce policies • Training and developing workers in new ways and new skills

4. MANAGEMENT / LEADERSHIP IS CHANGING NOW NEEDS TO MANAGE • Independent professionals • Dispersed workforce • Contingent workforce (casuals, temps, contractors) • Disillusioned workforce • Non-committed workers

5. MANAGEMENT / LEADERSHIP IS CHANGING NEEDS NEW LEADERSHIP SKILLS IN: • Communicating vision • Flexible strategy and tactics • Motivating workers

6. ATTRIBUTES OF MANAGERS AND LEADERS

7. NEW MODELS OF LEADERSHIPRESULTS-BASED LEADERHIPKEY ELEMENTS(Ulrich, Zenger, Smallwood, Harvard 1999) DEMONSTRATE PERSONAL CHARACTER (habits, integrity, trust, analytical thinking) SET DIRECTION (vision, customers, future) MOBILISE INDIVIDUAL COMMITMENT (engage others, share power) ENGINEER ORGANISATIONAL CHANGE (build teams, manage change)

8. THREE CRUCIAL HR CHALLENGES FACING LOCAL GOVERNMENT • The ageing population • Changing workforce expectations • Labour and skills shortages

9. POPULATION AGEING – 4 DIMENSIONS Numerical ageing • Increase in numbers of elderly due to increased life expectancy • 5000 people now over the age of 100 (500 a few years ago). Will generate huge demand for services and local jobs

10. POPULATION AGEING – 4 DIMENSIONS Structural ageing • increase in proportions of elderly – caused by low/falling birthrates Natural decline • More elderly than children, therefore more deaths than births Absolute decline • Inability of replacement migration to replace the lost births and increased deaths

11. POPULATION AGEING – 4 DIMENSIONS Therefore, labour market entry/exit ratio goes negative in 2017. Options • Accept • Buffer – plans, policies, improved conditions • Celebrate – population ageing is full of opportunities

12. Indonesian Demographics Indonesia 2005 Male Female Male Female Population (millions) Source: US Census Bureau

13. Australian Demographics Australia 2005 Male Female Population (millions) Source: US Census Bureau

14. LOCAL GOVERNMENT DEMOGRAPHICS Winter 2004, organisational survey: 5,000 staff from: Blacktown, Burwood, Camden, Cessnock, Dungog, Gosford, Gwydir, Liverpool, Newcastle, Richmond Valley, Rockdale, Rous Water, Shellharbour, Singleton, Tumut, Yass

15. LOCAL GOVERNMENT DEMOGRAPHICS 1 Regional NSW Council

16. POPULATION, PRODUCTIVITY AND PARTICIPATION • Population, productivity and participation are the fundamental equation of skills shortage and the ageing society • We either have to increase our population, raise our productivity or increase participation rates if we want to continue to grow

17. POPULATION, PRODUCTIVITY AND PARTICIPATION • In reality increasing participation rates is the key, but it will bring unique challenges, as we have to learn how to work with a more diverse workforce (aged, disabled, long term unemployed, ethnic, indigenous etc)!

18. WHO CAN AFFORD TO RETIRE? • Average superannuation holding for Australian is $62,000 • 9% will mainly rely on superannuation • 51% will work part time Newspoll Australian Superannuation Association 2004

19. WHERE HAVE THE WORKERS GONE? • Annual net new entrant to workforce now is 160,000 p.a. • By 2010 it will be 75% less or little more than 40,000 p.a. • By 2015 it will fall to 20,000 p.a. • Businesses will have to recruit from non-traditional areas to sustain their workforce! The Australian, September 18-19 2004, Vartina Nissen, Manpower Australia

20. AGEING POPULATION IMPLICATIONS • Need for more and different services • Sea change and tree change • Access and equity issues, transport • Seniors policy/mechanisms • Community wellness • Strategies for inclusion • Impact on volunteerism

21. THE CHALLENGES • Staff turnover; what level is acceptable, and what are we paying to replace our staff? • Effective recruitment strategies • Retention strategies: holding on to our good people • Poaching staff versus “growing our own” • Is skilled migration a solution? • The impacts of baby boomer retirement

22. THE OPPORTUNITIES • Training?...TAFE, Australian Technical College, traineeships, cadetships, on-the-job? • Skilled migration….but why aren’t local employers using it? • Industry restructuring, technology, innovation

23. THE OPPORTUNITIES • Workforce planning and succession planning? • Being an “employer of choice?” • Selling our lifestyle and “sea change”?

24. EFFECTIVE RECRUITMENT STRATEGIES • Ensuring selection and promotion is based on merit, not seniority or other factors • Using defined selection criteria to assess and compare candidates • Using selection panels to ensure a balanced approach • Ensuring panels are well briefed and competent

25. EFFECTIVE RECRUIMENT STRATEGIES • Getting a second opinion on candidates • Referees • Psychological tests • Giving feedback to unsuccessful candidates

26. RETENTION STRATEGIES REWARDS ARE CHANGING • Broad banding • Fee based contracts • Bonuses • Competency based arrangements • Profit sharing • Non-monetary rewards • Self-managed benefits

27. RETENTION STRATEGIES THE RISE OF THE “GOLD COLLAR” WORKER • New skills in short supply • Workers who can name their price • Suits independent contractors • Challenge of attracting and retaining such workers • The increasing importance of employer reputation / attitude to workers • Importance of good “people policies” and strategies

28. POACHING STAFF vs “GROWING OUR OWN” • Price of poaching • Demise of investment in training (apprenticeships, cadetships etc) • Advantages of “home grown” workers

29. BRINGING IT ALL TOGETHER The skills crisis in local government now requires strategic action to be taken at four levels: • National level – ALGA/LGMA/professional associations/Federal Government • State level – LGAs, LGMA, professional associations, State agencies • Regional level – ROCs, shared services, strategic alliances, informal arrangements • Council level

30. BRINGING IT ALL TOGETHER • There is a need for a full understanding of the size and complexity of the skills shortage issue across local government – through research, surveys, taskforces • There is a need for implementation of remedial strategies in the short, medium and long term

31. BRINGING IT ALL TOGETHER • Potential short term solutions includes: • Skilled migration programs • Graduate recruitment programs • Training courses for para-professionals • Sharing resources across Councils • Using Local Government Week to build brand awareness of local government as a career destination • Improving remuneration packages

32. BRINGING IT ALL TOGETHER • Potential medium/long term solutions include: • Developing image marketing strategies for local government • Promoting careers in local government • Entry level programs – “growing our own” • Flexible exit strategies for older workers

33. BRINGING IT ALL TOGETHER • Employment of target groups – women, workers with disabilities, NESB • Greater investment in training and development • Succession planning • Restructuring to achieve internal efficiencies, including process improvements and greater use of technology

34. NATIONAL SKILLS SHORTAGE COMMITTEE INITIATIVES Priorities identified in addressing the skills shortage issue: • Image marketing for local government • Becoming an “employer of choice”: eg. Flexible work arrangements, pay, work and family initiatives, merit • Growing our own people – traineeships, cadetships, entry and exit strategies, upskilling

35. NATIONAL SKILLS SHORTAGE COMMITTEE INITIATIVES • Progressive leadership approaches, inclusive, transformational, inspirational • Giving staff greater autonomy

36. NATIONAL INITIATIVES UNDERWAY • National Skills Shortage Committee comprises all national professional bodies in local government • Members have put in funding to employ a project officer • A draft national strategy has been completed in 2007 and is seeking implementation funding

37. EXAMPLES OF SKILLS INITIATIVES: STATE LEVEL QLD Professional Staff Recruitment Working Group – State funding to employ a project officer to help develop a skills formation strategy for local government

38. REGIONAL INITIATIVES • Local government graduate programs – clusters of Councils • Regional Organisations of Councils – partnership with university to offer engineering cadetships • Shared services arrangements eg. Armidale/Dumaresq strategic alliance

39. COUNCILS WORKING TO BECOME EMPLOYERS OF CHOICE Providing guidance/checklists on good HR practices in: • Workforce analysis and planning • Succession planning • Merit based recruitment and selection • Diversity management • Work and family balance strategies

40. COUNCILS WORKING TO BECOME EMPLOYERS OF CHOICE • Enterprise bargaining • Remuneration strategy • Performance management • Career planning and development • Consultative mechanisms • Workplace health and safety/zero harm

41. COUNCILS WORKING TO BECOME EMPLOYERS OF CHOICE • Employee wellness • Flexible work policies and practices • Work redesign • Optimising technology • Leading change • Employee assistance and safety nets

42. COUNCILS WORKING TO BECOME EMPLOYERS OF CHOICE • Employee relations • Investment in flexible learning and development strategies • Leadership development • Measuring HR outcomes AND ……..walking on water too……..!

43. SO, IF YOUR ORGANISATION ISN’T YET AN EMPLOYER OF CHOICE……? • ADD VALUE • Actively participate in corporate planning processes and continually put skills and ageing issues on the agenda (eg. During SWOT analysis) • Submit useful discussion papers/agenda items to your executive team • Arrange for visiting speakers to attend meetings to educate on key issues

44. SO, IF YOUR ORGANISATION ISN’T YET AN EMPLOYER OF CHOICE……? • BE A PLAYER • Actively participate on corporate committees and project teams to ensure HR dimensions of projects are addressed • Nominate HR staff for internal and external recognition awards, leadership programs etc. and say what good things they are doing

45. SO, IF YOUR ORGANISATION ISN’T YET AN EMPLOYER OF CHOICE……? • KEEP LOOKING OVER THE NEXT HILL • Keep up to date with emerging trends, best practices, and what progressive organisations are doing, and regularly feed that back to your leaders

46. SO, IF YOUR ORGANISATION ISN’T YET AN EMPLOYER OF CHOICE……? • NEVER STOP LEARNING • Keep up to date via professional development, formal and informal training, mentoring, reading, study tours, conferences etc. Be a role model!

47. QUESTIONS/ DISCUSSION