THE PATH TO BEING AN EMPLOYER OF CHOICE

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THE PATH TO BEING AN EMPLOYER OF CHOICE

• LYN RUSSELL PSM
• CHIEF EXECUTIVE OFFICER
• THURINGOWA CITY COUNCIL
• DEPUTY PRESIDENT LGMA QLD
• NATIONAL DIRECTOR LGMA

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THE CHANGING CULTURE OF LOCAL GOVERNMENT
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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

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MANAGEMENT / LEADERSHIP IS CHANGING

• NOW NEEDS TO MANAGE
• Independent professionals
• Dispersed workforce
• Contingent workforce (casuals, temps,
  contractors)
• Disillusioned workforce
• Non-committed workers

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MANAGEMENT / LEADERSHIP IS CHANGING

• NEEDS NEW LEADERSHIP SKILLS IN
• Communicating vision
• Flexible strategy and tactics
• Motivating workers

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ATTRIBUTES OF MANAGERS AND LEADERS
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NEW MODELS OF LEADERSHIPRESULTS-BASED
LEADERHIPKEY ELEMENTS(Ulrich, Zenger,
Smallwood, Harvard 1999)
SET DIRECTION (vision, customers, future)

• DEMONSTRATE PERSONAL CHARACTER
• (habits, integrity, trust, analytical thinking)

MOBILISE INDIVIDUAL COMMITMENT (engage others,
share power)
ENGINEER ORGANISATIONAL CHANGE (build teams,
manage change)
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THREE CRUCIAL HR CHALLENGES FACING LOCAL
GOVERNMENT

• The ageing population
• Changing workforce expectations
• Labour and skills shortages

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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

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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

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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

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Indonesian Demographics
Indonesia 2005
Female
Male
Female
Male
Population (millions) Source US Census Bureau
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Australian Demographics
Australia 2005
Female
Male
Population (millions) Source US Census Bureau
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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
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LOCAL GOVERNMENT DEMOGRAPHICS
1 Regional NSW Council
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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

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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)!

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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

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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

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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

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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

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THE OPPORTUNITIES

• Training?...TAFE, Australian Technical College,
  traineeships, cadetships, on-the-job?
• Skilled migration.but why arent local employers
  using it?
• Industry restructuring, technology, innovation

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THE OPPORTUNITIES

• Workforce planning and succession planning?
• Being an employer of choice?
• Selling our lifestyle and sea change?

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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

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EFFECTIVE RECRUIMENT STRATEGIES

• Getting a second opinion on candidates
• Referees
• Psychological tests
• Giving feedback to unsuccessful candidates

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RETENTION STRATEGIES

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

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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

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POACHING STAFF vs GROWING OUR OWN

• Price of poaching
• Demise of investment in training
  (apprenticeships, cadetships etc)
• Advantages of home grown workers

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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

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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

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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

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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

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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

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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

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NATIONAL SKILLS SHORTAGE COMMITTEE INITIATIVES

• Progressive leadership approaches, inclusive,
  transformational, inspirational
• Giving staff greater autonomy

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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

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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

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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

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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

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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

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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

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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..!

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SO, IF YOUR ORGANISATION ISNT 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

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SO, IF YOUR ORGANISATION ISNT 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

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SO, IF YOUR ORGANISATION ISNT 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

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SO, IF YOUR ORGANISATION ISNT 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!

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• QUESTIONS/
• DISCUSSION