THE PATH TO BEING AN EMPLOYER OF CHOICE

LYN RUSSELL PSMCHIEF EXECUTIVE OFFICER

THURINGOWA CITY COUNCILDEPUTY PRESIDENT LGMA QLD

NATIONAL DIRECTOR LGMA

THE CHANGING CULTURE OF LOCAL GOVERNMENT

LOCAL GOVT. EMPLOYEE. 1980 LOCAL GOVT. EMPLOYEE 2007• Enforcer of policy• Rules and regulations• Protect the Council• Risk averse• Bureaucrat• Subordinate• Delegated authority• Impersonal• Reactive• Specialist• Avoid change• Do things right

• Problem solver• Guidelines• Respect the customer• Risk manager• Team member• Stakeholder• Empowered• Customer oriented• Proactive• Generalist; multi skilled• Embrace change• Do the right things

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

MANAGEMENT / LEADERSHIP IS CHANGING

NOW NEEDS TO MANAGE• Independent professionals• Dispersed workforce• Contingent workforce (casuals, temps,

contractors)• Disillusioned workforce• Non-committed workers

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

MANAGEMENT / LEADERSHIP IS CHANGING

ATTRIBUTES OF MANAGERS AND LEADERSMANAGERS LEADERS

PlanReactAccommodateDistant relationshipGroup orientationFormalImpersonalCoerceControlTransactAvoid changeAvoid riskDo things correctlyFollow a planStabilisePosition powerMonitor

EnvisionActInitiateFace-to-face contactIndividualised orientationInformalPersonalEncourageDelegateTransformThrive on changeTake risksDo the correct thingsCommunicate a visionAdvancePersonal powerEmpower

NEW MODELS OF LEADERSHIPRESULTS-BASED LEADERHIP

KEY ELEMENTS(Ulrich, Zenger, Smallwood, Harvard 1999)

DEMONSTRATE PERSONAL CHARACTER

(habits, integrity, trust, analytical thinking)

MOBILISE INDIVIDUAL COMMITMENT

(engage others, share power)

ENGINEER ORGANISATIONAL CHANGE

(build teams, manage change)

SET DIRECTION(vision, customers, future)

THREE CRUCIAL HR CHALLENGES FACING LOCAL

GOVERNMENT1. The ageing population2. Changing workforce expectations3. Labour and skills shortages

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

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

POPULATION AGEING – 4 DIMENSIONS

Therefore, labour market entry/exit ratio goes negative in 2017.

Options1. Accept2. Buffer – plans, policies, improved

conditions3. Celebrate – population ageing is full of

opportunities

POPULATION AGEING – 4 DIMENSIONS

Indonesian Demographics

FemaleMale Indonesia 2005

Population (millions)Source: US Census Bureau

FemaleMale

Australian Demographics

Australia 2005 FemaleMale

Population (millions)Source: US Census Bureau

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

1 Regional NSW Council

LOCAL GOVERNMENT DEMOGRAPHICS

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

• 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)!

POPULATION, PRODUCTIVITY AND PARTICIPATION

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

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

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

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

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

• Workforce planning and succession planning?

• Being an “employer of choice?”• Selling our lifestyle and “sea change”?

THE OPPORTUNITIES

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

• Getting a second opinion on candidates– Referees– Psychological tests

• Giving feedback to unsuccessful candidates

EFFECTIVE RECRUIMENT STRATEGIES

RETENTION STRATEGIES

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

RETENTION STRATEGIESTHE 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

POACHING STAFF vs “GROWING OUR OWN”

• Price of poaching

• Demise of investment in training (apprenticeships, cadetships etc)

• Advantages of “home grown” workers

BRINGING IT ALL TOGETHER

The skills crisis in local government now requires strategic action to be taken at four levels:

1. National level – ALGA/LGMA/professional associations/Federal Government

2. State level – LGAs, LGMA, professional associations, State agencies

3. Regional level – ROCs, shared services, strategic alliances, informal arrangements

4. Council level

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

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

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

• 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

BRINGING IT ALL TOGETHER

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

• Progressive leadership approaches, inclusive, transformational, inspirational

• Giving staff greater autonomy

NATIONAL SKILLS SHORTAGE COMMITTEE INITIATIVES

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

QLD Professional Staff Recruitment Working Group – State funding

to employ a project officer to help develop a skills formation

strategy for local government

EXAMPLES OF SKILLS INITIATIVES: STATE LEVEL

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

COUNCILS WORKING TO BECOME EMPLOYERS OF

CHOICEProviding 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

• Enterprise bargaining• Remuneration strategy• Performance management• Career planning and development• Consultative mechanisms• Workplace health and safety/zero harm

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

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……..!

COUNCILS WORKING TO BECOME EMPLOYERS OF

CHOICE

SO, IF YOUR ORGANISATION ISN’T YET AN EMPLOYER OF

CHOICE……?1. 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

2. 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

SO, IF YOUR ORGANISATION ISN’T YET AN EMPLOYER OF

CHOICE……?

3. 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

SO, IF YOUR ORGANISATION ISN’T YET AN EMPLOYER OF

CHOICE……?

4. NEVER STOP LEARNING• Keep up to date via professional development,

formal and informal training, mentoring, reading, study tours, conferences etc. Be a role model!

SO, IF YOUR ORGANISATION ISN’T YET AN EMPLOYER OF

CHOICE……?

QUESTIONS/DISCUSSION