Building a Business Case for Flexible Work Practices - Extract of Presentation

Presented by

Wendy Lundgaard, Director

AHRI HR Essentials Series 2008 Copyright Win-Win Workplace

Strategies P/L. All rights reserved.

3. Factors affecting labour scarcity

Fertility Rates within Australia (No. of births per woman) 1921 to 2051

1.5

1.8

2.1

2.4

2.7

3

3.3

3.6

Years1921-25

Years1932-34

Years1946-48

Years1953-55

Years1960-62

Years1970-72

Years1980-82

Years1990-92

Year1998

Year2005

Year2006-51

Years (from 2006 - 51 are projections only)ABS: Births - 3301.0 - 1998

Fert

ilit

y R

ate

s

Current labour entrants: 170,000 per annum .

By 2020: 125,000 for the entire decade or 12,500 pa = growth almost stops! (Source: Access Economic, 2002)

Replacement level (2.1)

Businesses reporting labour shortages: 30% affected

0

5

10

15

20

25

30

88 92 96 00 04 08

% of businesses nominating 'suitable labour' as a constrainton output

4

5

6

7

00 01 02 03 04 05 06 07

63

64

65

%

unemployment rate

33 year low

record high

participation rate

Labour market participation rate: Unemployment at 4%

Source: Personal Mortgage Manager National Conference: Sanctuary Cove, Feb 08

February 2008

yearsyears

3. The Labour Market

3. Workforce Landscape

• Lowest unemployment rate in 30 years - below 5% considered “full employment” (Forecast 5.5%)

• Just over 50% of workforce is employed full-time• 50% all employees work overtime – half is unpaid• 51% employees working >45 hr/w want fewer

hours(Source: ACTU in AIM’s Management Today, March 2006)

• Annual growth rate of labour market: 1.5 for past 10 years, 0.7 2005 – 2015, 0.4 in 2015 – 2025.

3. Workforce Participation (eg Vic)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2005 2010 2015 2020 2025 2030 2035

Average of previous 20 years

Projected growth in Victoria’s working age population, 2005-2035

Source: Department of Sustainability and Environment (2004),Victoria in Future.

50%

52%

54%

56%

58%

60%

62%

64%

66%

1995 2000 2005 2010 2015 2020 2025 2030 2035

actual projected

Sources: ABS, Labour Force Australia, Spreadsheets, Cat No 6202.0.55.001 and Dawkins, Lim and Summers (2005) The impacts of population ageing on labour force participation report to the Dept Treasury & Finance.

Actual and projected workforce participation rates, Victoria 1995-2035

3. Australia’s Aging population

Median (Average Age) 50% of population younger, 50% older

Source; ABS Population Projections Australia 2004 – 2101

3. Net Migration – No solution here!

Projection – Stable levels for next 15 years, followed by modest increase 2021 to 2031

Workforce Participation Rates: Males

Compared to OECD Countries

Workforce Participation Rates: Females

Compared to OECD Countries

Strategy Options for Organisations

Do Nothing:

Fast-track into the

endangered species list!

Or

Embrace the changes necessary to evolve the business!

6. Traditional View of FWP

FWPFWP

Employer Of ChoiceEmployer Of Choice

ConditionsConditionsEmployeeAttractionEmployeeAttraction

OH&S &

Wellbeing

OH&S &

Wellbeing

Employee Benefits

Employee Benefits

Seen as part of the ‘benefits’ offering

6. Contemporary View of FWP

FlexibleWork

Practices

FlexibleWork

Practices

PerformanceProductivity

PerformanceProductivity

Talent & Succession

Mgt

Talent & Succession

Mgt

Labour Supply Pool

Labour Supply Pool

Business Strategy

Business Strategy

Skills &

Capability

Skills &

Capability

Age Management(Retirement)

Age Management(Retirement)

Workforce Planning Strategy

Workforce Planning Strategy

As a strategic

management tool

impacting

attraction,

productivity,

retention

Survival Essentials: Workforce Planning

Align STRATEGY With business plan, strategy & goals

Assess skills DEMAND Current & future demand for

resources/ capabilities/locations

Assess current SUPPLY

Identify GAPS

Evaluate Impact (Adapted from S.Melbourne,HR Monthly Oct 06)

INT: Turnover, age profile, talent EXT: labour market trends

Close Gaps, IMPLEMENTHR & Workforce Planning Strategy

(Attract, Develop & Perform, Retain)

REVIEW

Prioritise Shortfalls