ATEM NSW/ACT REGIONAL CONFERENCE JULY Effective Workforce Planning Strategies for Australian Universities

Transcription

1 ATEM NSW/ACT REGIONAL CONFERENCE JULY 2009 Effective Workforce Planning Strategies for Australian Universities

2 GLOBAL ECONOMIC SITUATION 6 of Australia s top 10 trading partners in recession Severe decline in trade, production, jobs, capital investment and confidence Australian Institute for Social Research, The University of Adelaide June 2009

3 GLOBAL ECONOMIC SITUATION In terms of the global economy, 2009 will be the worst year since World War 11 and even since the 1930 s. I don t know that the job losses we have seen so far show the full picture. Unemployment does lag behind other indicators of economic performance, and even after we hit the bottom of this downturn, the job losses will continue to rise. Christopher Portman, Senior Economist, Oxford Economics Australian Institute for Social Research, The University of Adelaide.

4 UNEMPLOYMENT Unemployment goes up like an elevator and down like an escalator PM Rudd

5 Impact of current economic climate Unemployment all states/territories revised previous projections Vulnerable data on skills shortage areas Some early returns to Australia The grumpy groups Focus on mission critical job groups Quality control Legislative and regulatory requirements Crunch time 2 age profile

6 WORKFORCE PLANNING LUXURY OR IMPERATIVE Critical tool for employers to steer through economic crisis Retain mission critical employees and manage workforce exists Understand the workforce cohorts and characteristics Position for current, mid term and recovery requirements Skill shortages will remain and will continue to worsen for many job groups Best achieved through evidence based workforce planning

7 WORKFORCE PLANNING LUXURY OR IMPERATIVE Strong international trends demonstrating big difference between firms who have approached layoffs in a strategic manner or alternative solutions to preserving their talent during difficult times and those who have adopted a knee-jerk approach to job cuts as a way of slashing costs for short-term gains US study shows that firms that substantially cut their workforce did not obtain a significant improvement of their performance

8 WORKFORCE PLANNING LUXURY OR IMPERATIVE Recent US study found that the larger the percentage of employees laid off in an organisation, the larger the actual voluntary turnover rate Major concern is that this increase is from employees the organisation wanted to keep

9 WORKFORCE PLANNING LUXURY OR IMPERATIVE In the current climate, sound workforce planning is more important than ever. To be effective, it should encompass a valid workforce strategy and a prudent tactical plan both for the short term and the long term as well as taking into account the needs of knowledge capture and process optimisation. (Kamph 2009)

10 WORKFORCE PLANNING LUXURY OR IMPERATIVE Fundamental workforce issues will return By 2012, employers will face a workforce in Australia were more than 1 in 6 workers will be aged 55 and over (Mercer 2009, Workplace 2012 Beyond the Global Financial Crisis) The number of young people entering the workforce is insufficient to sustain economic growth in the years ahead at levels that prevail today (McNiven: 2008) Australian Institute for Social Research The University of Adelaide

11 WORKFORCE PLANNING LUXURY OR IMPERATIVE Fundamental issues will return... Scarcity of labour High Cost of recruiting and retraining There are dangers for companies that cut their workforce too hastily. While labour supply is more plentiful at the moment, the demographic tide will turn soon. The talent pool will shrink as the baby boom generation retreats into retirement and as younger and smaller generations enter prime working age. (Boston Consulting Group 2009)

12 Sadly, the economic climate doesn t stop us from ageing - productivity impact regardless of employee characteristics

13 WHAT IS WORKFORCE PLANNING? A management technique used to effectively manage workforce demand and supply. It aligns the needs of a business with those if its workforce, seeking a balance between both.(standards Australia Guidelines on Workforce Planning 2008). A continuous future focused process of shaping the workforce to ensure it is capable of delivering organisational objectives. (Australian Institute for Social Research, The University of Adelaide)

14 PROGRESSING WORKFORCE PLANNNG INTERNATIONAL TRENDS 2008 inaugural Standards Australia Guidelines on Workforce Planning strong sales nationally 18 months (global) shift concept strategic - operational Evidenced based decision making: leadership, systems, capability, integration

15 INTERNATIONAL STRATEGIES OLD REMEDIES FOR NEW ISSUES? PAY CUT/SHUTDOWN SPECIAL ONE-YEAR UNPAID SABBATICAL VOLUNTARY SEVERANCE INCENTIVE PROGRAM EARLY RETIREMENT REGULAR UNPAID SUBBATICAL 40% ANSENTEEISM SWINE FLU VOLUNTARY SEPARATION PACKAGES

16 INTERNATIONAL STRATEGIES OLD REMEDIES FOR NEW ISSUES? RESTRUCTURING STAR WORKER ADDITIONAL DUTIES MISSION CRITICAL JOB GROUPS REAL SKILLS SHORTAGE HARD TO FILL JOB GROUPS Wayne F. Cascio and Peg Wynn 2004

17 WORKFORCE PLANNING VERY IMPORTANT DURING DOWNTURNS Show me the evidence... If layoffs are inevitable, then they should be done with sound workforce planning which necessarily includes engagement with the workforce

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19 WHAT DO YOU KNOW ABOUT YOUR WORKFORCE? Accurate profile complete workforce - all occupation groups x industry, sector, region Cohorts new entry, mid career levels, transition Working arrangements Working life intentions Drivers of recruitment and retention Barriers to recruitment and retention Trends and projections Lessons learned

20 WHAT DO YOU KNOW ABOUT YOUR WORKFORCE? Impact of the sector aging demographics level of interest in and capacity to work productivity impact Competition for your workforce in next 5-10 years Job redesign capacity Risk assessment of supply source Mission critical job groups Contingent workforce crisis management

21 REMEMBER Regard it as an opportunity- new discipline Clarify roles and responsibilities strategic and operational Remember blockage often at the top! Build leadership capabilities in workforce planning Resource to integrate Collaborate to compete

22 IS YOUR BOSS FAKING IT... IN STRATEGIC WORKFORCE PLANNING? Jeffrey Kluger 11/2/09 Health and Science Competence: Is Your Boss Faking It? Article on: Leadership skill

23 A FRAMEWORK FOR WORKFORCE PLANNING Based on Standards Australia Guidelines Governance and Leadership Executive buy-in strategic and operational Strategic and operational Strengthening capabilities new discipline Systematic approach to data gathering, analysis and reporting Mission critical, global/national skill shortage, hard to fill Risk assessment of supply and supply source analysis Workforce development strategies including succession planning, closing the gap, capability and career framework Agency autonomy Consistency in language and reporting Integration /mapping

24 ARE YOU READY FOR CRUNCH TIME?

25 WHO IS RESPONSIBLE? EVERYONE

26 GETTING STARTED

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33 UNDERSTANDING THE CURRENT, INCOMING AND EXITING WORKFORCE Current workforce (cohorts and characteristics) Mobility history (exits and entries) Mobility projected (exits and entries) Service/product demand projections x timeframe Supply gap analysis x timeframes Risk assessment of supply and capacity to deliver Workforce development strategy

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38 WHAT S HAPPENING IN OTHER INDUSTRIES/SECTORS? Denial Acceptance Individual action Competition Collaboration Conceptual Strategic Operational JSM 2008/2009 Agriculture Construction Food Energy International Aid Non Govt sector Emergency Services Local Government Aviation Planning Infrastructure Primary industries Mining Administration Defence Education Health Risk Management Aged care Finance Community Services Whole of Govt Economic Development Transport, Storage, Logistics Forestry

39 WORKFORCE PRESSURE POINTS Worker fatigue not just older workers Workplace bullying The language of ageism in the workplace Productivity impact of economic climate

40 LESSONS LEARNED Limited awareness of vulnerability Workforce development confusion Role and responsibilities Executive engagement Political standoff Delegation level/skills Workforce engagement Systems vulnerability Core data Questions to ask Questions to answer Black hole data Integration

41 COMMON BARRIERS TO WORKFORCE PLANNING Low level executive commitment Failure to link with business directions Focus on quick fix Ignoring key workforce segments Using old strategies to tackle new problems Relying on anecdotal or limited data Too much data Omitting risk assessment Confusing language Job/role design closed view Level of delegation for operational workforce planning

42 MAKE SURE THE SIGNPOSTS ARE CLEAR Critical element in making sure the signposts are accurate and that yours are noticed by the right people!

43 WORKFORCE DEVELOPMENT Differentiate between must-have and nice to have learning and development Take the opportunity to develop mission critical skills to be ready when the economy improves Keep in contact with regrettable turnover employees Tailor your approach to performance management Inspire confidence brand and employer of choice

44 POSITIONING AUSTRALIA TO COMPETE Australian workforce plan Regional workforce plan Industry and sector workforce plan Systematic approach to workforce data and analysis Role and responsibilities engagement and accountability Leadership and governance

45 THE GLOBAL RECESSION AND AUSTRALIA S PRODUCTIVITY CHALLENGE When the crisis is over and when we put our foot on the economic accelerator, we don t want to be constrained by inadequate human capacity Hon. Julia Gillard, April 2009

46 A GLOBAL STORY... We believe HR leaders who implement workforce planning strategies will improve overall workforce effectiveness, including reducing turnover of newly hired executives increase business performance, cut talent turnover risk and increase revenue. Employers who are not addressing future workforce changes will have significant challenges, especially given the fast paced and ever changing business world in which we all operate. Cindy Keaveney, Executive vice president with Aon Consulting and co-leader of the Human Capital Consulting practice...outcomes of a 2008 Benefits and Talent Survey of more than 1,100 organisations, Chicago, USA.

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