Understanding HR Metrics to Drive Workforce Culture Presented by Chris Westacott Managing Director - Realise Performance
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1 Understanding HR Metrics to Drive Workforce Culture Presented by Chris Westacott Managing Director - Realise Performance
2 What I am going to cover today Research Reviewed in developing this presentation Background to our study Industry research Realise Performance 2017 Aged Care and Community Services Human Resources Benchmarking Study Using this information to drive workforce culture
3 Research Reviewed in Developing this Presentation 2016 National Aged Care Workforce Census and Survey The Aged Care Workforce 2016 Australian Institute of Management 2016 National Salary Survey Realise Performance 2017 Aged Care and Community Services Human Resources Benchmarking Study
4 Background to the study 2006 Stewart Brown invited Realise Performance to partner with them to provide enhanced technical input their Aged Care Executive Remuneration Survey 2011 Realise Performance took over the survey to allow Stewart Brown to focus on their financial benchmarking In 2016 Realise Performance expanded the scope of the survey to include a range of HR Benchmarks (or metrics) and now offers both products to providers with a range of supporting services This presentation will focus on the HR Metrics and link these back to workplace culture
5 The Aged Care Workforce 2016 the state of the nation 366,027 aged care workers (increase of 4% since 2012) 235,764 in residential care 130,263 in home care and home support outlets 240,317 in direct care roles 87% female in residential 89% female in home care Median age in residential care is 46 (down from 2012 census) Median age in home care is 52 (up from 2012 census) 10% of residential care workforce are casual (down 19% from 2012 census) 14% of home care workforce are casual (down 27% from 2012 census)
6 The Aged Care Workforce 2016 emerging issues Productivity Commission estimates that by 2050 the aged care workforce will need to grow to around 980,000 The ageing of the population is likely to have significant impact on the availability of workers in aged care however the demand for workers is increasing Increasing competition from the disability sector Negative community perceptions of aged care work as an occupation where staff are not valued, no career paths and low pay are still impacting the sector. A different narrative is required.
7 Realise Performance 2017 Aged Care and Community Services Human Resources Benchmarking Study what was covered: Demographics Turnover Boards HR Issues Absenteeism Work Health & Safety Workforce Planning Training & Development Corporate Services Systems
8 Scope of Study 29 participating organisations (5 more organisations than in 2016) Combined turnover $1.49 billion Predominantly Not for Profit All states represented covering metropolitan and regional centres
9 Demographics
10 Demographics
11 Turnover
12 Turnover Table 2: Model of potential turnover savings Cost of Employee Turnover Using Realise Performance 2017 Survey Data Using AIM 2016 Survey Data Using AI Group 2016 Survey Data $694,403 $526,438 $513,026 Potential Saving $167,965 $181,377
13 Turnover
14 Boards
15 HR Issues
16 Absenteeism
17 Work Health and Safety Table 3: WHS Statistics Aged Care and Community Services survey responses compared to 2016 Aged Care and Community Services survey responses Average cost of Claims as a % of total payroll 0.53% 0.63% Average cost of Claims as a % of total revenue 0.34% 0.39% % of reported accidents/ injuries resulting in lost time 17.47% 11.69% Lost time as a % of total hours worked 0.74% 0.44% Average cost of Claims ($) $1, $1, Average cost of Claims attributed to Lost Time ($) $5, $12,710.44
18 Workforce Planning The number of new graduates hired over the last year was low compared to the overall workforce and number of new entrants overall. On average the number of new graduates in the last year per organisation was six (6) employees. The average number of new entrants to the workforce overall in the last year per organisation was 80. Where the average number of new entrants was higher amongst participating organisations, this was predominantly influenced by a bulk recruitment drive for care workers and/or at the AIN level.
19 Training and Development Table 4: Organisational Training and Development Investment Overall Budget Average % of total Payroll allocated to Training Budget Average Training and Development Budget % 1.29% $365,238 $302,905
20 Training and Development
21 Soft Skills - Communication Facial Expressions Posture Eye Contact Space Tone of voice Touch 85% of a leader s effectiveness is determined by their ability to communicate effectively
22 Soft Skills - Moments of Truth Providing skills in customer service is not a nice to have, but a commercial imperative in a customer focused service environment Winning people over is not about manipulating them to like you or do things your way. It is about giving them reasons to respect you enough that they want to engage with you and actually listen to how you can help them achieve their goals.
23 Soft Skills - Mate to Manager Supervisors must have the right skills if they are to be effective
24 Corporate Services what s important
25 Systems what s important
26 Using this information to drive workforce culture Turnover is costly focus must be on attracting and retaining quality staff Absenteeism places extra pressure on other staff and must be managed Work, Health and Safety it s a given people must be confident that when they go to work they will come from work in the same condition as they left Workforce Planning - if we don t plan for our future workforce there will be no workforce Training and Development - must be refocused on the skills the we need as a business for the future to make sure we are competitive not just to meet our compliance obligations
27 Conclusion Investing in people and having the right workplace culture will provide you with a competitive advantage in a consumer focused market.
28 Contact details Chris Westacott Managing Director Realise Performance
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