Wednesday, December 17, 2008

Times are changing...

Times are changing. In a relatively short period of time the Australian, Tasmanian and worldwide economic climate has dramatically altered. This climate is yet another unprecedented scenario that requires a strategic, well thought out approach on a global scale and further ads to the challenges of the unprecedented scenario of worldwide population ageing.

While initial reactions are to scale back and batten down the hatches to ride out the storm, it is important to keep a longer term strategy in mind in terms of skill and workforce development.
While the current economic climate and the impact on superannuation investments may delay the retirement intentions of the large baby boomer cohort, they will retire eventually. These baby boomers have a wealth of knowledge and experience, qualifications and skills that cannot be replaced overnight. Sooner rather than later, more people will be exiting the workforce than entering it. It is important over the longer term that investment in skill development remains paramount, so that those remaining in the workforce and those entering it are well equipped, educated and appropriately trained to maintain productivity in the workplace.

Tuesday, December 2, 2008

Women and Work

I have just completed a thesis entitled Women and Work: An investigation of the utilisation of women in the Australian labour market in comparison with men and the impact, if any, of the presence of a partner and/or child.

Abstract: This thesis set out to examine the utilisation of women and women’s qualifications in the Australian labour market as compared with men. It questioned whether the policy proposal of the Commonwealth Government (2004; 2007) to increase the labour force participation rate of women, to offset the emerging gap between fiscal capacity and fiscal commitments resulting from population ageing, could be misguided and could perversely result in lower fertility rates, the very cause of population ageing.

This thesis finds that women are currently not utilised in the labour market to the same degree as men. However, the issue is not their participation rates per se (which have increased over the years) but rather their relatively low level of labour market attachment and utilisation of educational attainment through occupation. For this reason, policy intervention aimed at increasing female labour market utilisation may be a more effective strategy in increasing productivity than focussing on increasing female labour force participation rates as a solution to the potential fiscal impacts of population ageing.

Tuesday, November 25, 2008

Job seeker resource document

tasmanianjobs.com has produced a 'Job Seeker Resource Document' for Tasmanian employers resulting from tasmanianjobs.com exhibiting at the Reinvent Your Career Expo in Sydney at the end of October.

This resource document compiles a profile of each of the individuals who are interested in relocating to Tasmania and who completed the expression of interest form on the www.tasmanianjobs.com website during the promotion period leading up to, during and post tasmanianjobs.com exhibiting at the Reinvent Your Career Expo in Sydney on 25th and 26th of October 2008.

Each profile is presented as provided by the job seeker, little alteration has been made to the information provided and therefore more accurately reflects the job seeker.

The purpose of this document is for Tasmanian employers to gain an overview of the skill sets and employment and educational backgrounds of those people interested in relocating to Tasmania. Should Tasmanian employers be interested in any of the profiled job seekers, a complete CV and further information can be provided upon request, including contact details for the individual. It is the responsibility of the employer to screen and verify the individual for suitability and compatibility within the workplace. Requests for CVs can be made to lisa@tasmanianjobs.com or on 0400 190 964.

The job seekers are presented by industry sector, followed by occupation.

Where the job seeker requires employer sponsorship to live and work in Australia, and your organisation is interested in assisting in this process, tasmanianjobs.com recommends that you contact the Skilled Migration Unit at the Department of Economic Development and Tourism for further information and assistance. They can be contacted on 1800 440 026 or at businesspoint@development.tas.gov.au.

Should your organisation employ a job seeker as a result of obtaining the individual’s details through this resource document, tasmanianjobs.com will charge a recruitment fee of $275, including GST.

Should you be interested in receiving a copy of the Job Seeker Resource Document please contact Lisa Taylor at lisa@tasmanianjobs.com.

Friday, November 7, 2008

Reinvent your Career Expo Outcomes

As reported last week in InSummary, tasmanianjobs.com exhibited at the Reinvent Your Career Expo in Sydney on the 25th and 26th of October. While still awaiting the final report from the event organisers, tasmanianjobs.com can report that of the 320 (approximate) people that visited the Tasmanian stand during the exhibition, 96 have completed an expression of interest (EOI) for further assistance in finding employment in Tasmania and 42 have registered as job seekers with www.tasmanianjobs.com. Expression of interest forms continue to be completed on a daily basis and job seekers from NSW continue to register on the website.

Of those 96 people who have completed the EOI, the predominant occupations include:

- IT professionals
- Accounting professionals
- HR professionals
- A range of trades, including engineers

Primary reasons for considering relocation to Tasmania include:

- Sea change (getting out of Sydney)
- Housing affordability
- Cost of living
- Employment opportunities

All job seekers advised that they would need to secure employment prior to relocating to Tasmania, or one of the people within a relationship would need to.

The next process for tasmanianjobs.com will be the development of a resource document for Tasmanian employers. This document will profile each of the job seekers, their skill sets, their employment history, educational attainment, preferred location in Tasmania and other professional and personal information. Employers will then be able to request a copy of their complete CV and personal details to follow up with them directly. It is anticipated that this document will be available in late November. Please contact Lisa Taylor for further information, or to register interest in a particular skill set.

The final report from the event organisers will be provided once it is made available to tasmanianjobs.com.

The next Reinvent Your Career Expo will be held in Brisbane in March 2009. If your organisation is interested in further information or participating in future events, please contact tasmanianjobs.com.

Mixed messages in the labour market

Conflicting data has been released this week in relation to the Australian labour market. Anecdotal evidence also suggests that employers are on tenterhooks and playing the waiting game. Projects are being delayed, apprentices no longer required, permanent recruitment is on hold and demand for temporary or casual labour has increased.

According to the ANZ Job Advertisement Series for Australia, the total number of jobs advertised in major metropolitan newspapers and on the internet fell by 5.9% in October to a weekly average of 231,135 per week. This followed a fall of 1.4% in September.

ANZ Head of Australian Economics Warren Hogan, said: “Total job advertisements continued to fall in October, down 5.9% in the month, to be 9.8% lower than a year ago. As a leading indicator of economic conditions in Australia, the latest job advertisements data suggest the global financial crisis has had a substantial impact on the Australian economy. Internet job advertisements fell 5.5% in October, the third consecutive fall in a row and the fourth monthly decline in the past six months.

This month’s ABS Labour Force series reported a different scenario altogether. Employment increased Australia-wide and in Tasmania, the unemployment rate dropped further to 3.7%, compared with the national average of 4.3%. The participation rate remained stable at 62.6%, total employed increased to 242,000 (167,600 of them full-time) and unemployed decreased by 300 to 9,300 persons statewide.

The ABS Labour Force outcome appears at odds with the ANZ Job Advertisement Series and the broad-based slowing in economic activity and is most likely an example of the volatility of the monthly surveys and the lag time required to provide a true reflection of the labour market.

At this stage, this data confirms that at best Australia has experienced only a very moderate response from the labour market to weakening economic conditions and prospects. However, most economic commentators believe the worst is yet to come, consistent with the downward trend in forward-looking indicators and the now weaker economic outlook.

That said, Tasmanian indicators suggest that the magnitude of the impact will not be as significant as in other Australian states.

The Tasmanian Skills Institute

From next year TAFE Tasmania will effectively be split, seeding two new state-wide entities, The Tasmanian Skills Institute and the Tasmanian Polytechnic. This move reflects the changing face of skills and training, with two fairly distinct streams of activity- workforce development for employees and employers, and training for people seeking to learn skills for entry into a field of work.

The Tasmanian Skills Institute will deliver to the first group and have as its foundation TAFE Tasmania’s strong record over recent years. A significant difference will be that its singular focus of activity will allow the Skills Institute to more fully understand the business needs of its enterprise customers and thereby enhance the value of the skills that it teaches its students. To achieve this it has a number of key strategies:

- It will have a demand-facing culture with new senior positions focussing on customer relationships and effective service delivery;
- It will have an emphasis on workplace delivery and assessment, building on TAFE’s nationally recognised track record;
- It will encourage creativity amongst its staff to work with customers on innovative, cost effective and productive workforce development activities;
- The quality of its products and services will remain a top priority, with excellence in vocational skills and training being a core organisational value;
- It will align itself with its business customers by itself having a growth and productivity focus

It will be governed by a board of Tasmanian directors all with extensive and diverse experience in the corporate and SME sectors working with a small but highly regarded and experienced senior executive team.

Further information is available on 1300 362 175 or at www.thetrainingenterprise.com.au

NB Lisa Taylor is a Director on the Board of the Tasmanian Skills Institute.

Monday, November 3, 2008

ANZ Job advertisement series

According to the ANZ Job Advertisement Series, the total number of jobs advertised in major metropolitan newspapers and on the internet fell by 5.9% in October to a weekly average of 231,135 per week. This followed a fall of 1.4% in September. The total number of advertisements in October was 9.8% lower than 12 months ago.


Looking at the different channels for advertising jobs, the number of job advertisements in major
metropolitan newspapers decreased by 12.2% in October to an average of 13,350 per week.
Newspaper advertisements are now 34.7% lower than in October 2007.


The large fall in newspaper job advertisements in October was driven by declines in all states and territories. The largest fall in percentage terms was in Western Australia (-14.8%), followed by Queensland (-14.1%), the ACT (-12.8%), New South Wales (-11.9%), Tasmania (-11.4%), Victoria(-11.0%), South Australia (-5.7%) and the Northern Territory (-4.7%).


ANZ Head of Australian Economics Warren Hogan, said: “Total job advertisements continued to
fall in October, down 5.9% in the month, to be 9.8% lower than a year ago. As a leading indicator
of economic conditions in Australia, the latest job advertisements data suggest the global financial crisis has had a substantial impact on the Australian economy. Internet job advertisements fell 5.5% in October, the third consecutive fall in a row and the fourth monthly decline in the past six months.

“The real weakness has been in newspaper advertising. Newspaper job advertisements fell 12.2% in the month of October and are now down 34.7% in the past year. Annual growth in newspaper ads is now the weakest since 2001. The economy avoided recession then but the unemployment rate rose by a percentage point (from 6% to 7%). The only weaker outcomes for newspaper job advertisements over the past 30 years were in 1991 and 1982 when the economy experienced recession. This will be an important indicator of the extent of the looming downturn in the Australian economy and the likely trajectory for unemployment over the next few years.”

Friday, October 31, 2008

interstate perspective of tasmania


Last weekend tasmanianjobs.com exhibited at the Reinvent Your Career Expo in Sydney. The objective was to promote employment and lifestyle opportunities in Tasmania to qualified, skilled and experienced people considering a sea/tree change to Tasmania.

For the two days of the expo, we were swamped with people enquiring about Tasmania. We anticipate that between the two of us, we spoke to 200+ people each day and ran out of our generic marketing material by early on the second day. The organisers advised us that we were probably the busiest stand, and we certainly had a stand out one visually, as per the photo above.

We received very good media coverage leading up to the Expo, so many of our initial visitors specifically came to see us as a result.

On the other hand, those that had not considered Tasmania as a place to live and work provided some interesting insight into the perception of Tasmania interstate.
Firstly, 100% of people we spoke to were surprised that there were employment opportunities in Tasmania. 100% certainly wanted to visit Tasmania as a tourism destination, if they had not done so already. Those that had, loved Tasmania. No one had considered Tasmania as a state in which to have a meaningful career.
100% of the people we spoke to were at the Expo because 'they wanted to get out of Sydney'. The main reasons cited included housing affordability, cost of living and transport/commuting distances. Many people wanted to live in the country but work in the CBD.
The majority of the people we spoke to were couples; of a range of ages, predominantly younger with children or older; hetrosexual as well as same-sex couples. Many were also mixed race. In addition, there were a number of older (40+) single women, highly qualified and experienced.
I was often asked 'Is Tasmania racist?' or 'Is Tasmania homophobic?' I had never given much thought to this, so found it difficult to answer but would hope that we as a state are more inclusive than we may previously have been.
In any case, I think there are certainly untapped opportunities for Tasmania to attract skilled workers to the state from 'the big Island', but a lot of work needs to be undertaken to improve the perception of Tasmania to our mainland counterparts.

Monday, October 20, 2008

dont't forget to plan for the future

I have heard a couple of reports in the past week or so of employers putting off their apprentices as a result of the recent financial market turmoil and uncertainty regarding the future. While I understand the need for caution and appropriate measures in these challenging times, the risk of this approach and failing to plan accordingly for the future is high and will exacerbate skill shortages in the long term.

The failure to train appropriate numbers of apprentices and trainees during the economic downturn of the late 1980s and early 1990s has been a major contributing factor to the current skill shortage problems we face today. If we don't continue to invest in our future today then tomorrow will hurt even more so.

Monday, October 13, 2008

the issues with interstate migrants

I am continually perplexed by the attitude of many Tasmanian organisations to employing interstate migrants.

Based on a number of discussions I have had with employers recently, it almost appears as though the consensus is that the employment of interstate migrants does not work in Tasmania. Below are some of the comments I have received recently.
  • They expect relocation assistance
  • They don't understand the culture of Tasmanian workplaces
  • There is too high a risk of attrition
  • They come here expecting us to change to the way they want to do things
  • I will only employ someone from interstate if they have moved to Tasmania first
  • They only move to Tasmania for the lifestyle and then think they don't have to work hard
  • They have to come here for the job first and then the lifestyle, otherwise they are lazy
  • They are arrogant
  • I would prefer to poach someone from my competitor before I employ someone from interstate
  • I would prefer to employ a local of lower skills than someone from interstate

I must admit, I have been shocked. What are your thoughts?

Wednesday, October 8, 2008

Collaboration: Education and training providers and industry

The UTAS Faculty of Business has recently launched a Corporate Internship Program aimed at providing a practical link between university study and the corporate environment. By undertaking an internship placement, students have an opportunity to apply the knowledge and skills acquired throughout their university experience to the workplace, and vice versa.

Integration of work and learning provides students with the opportunity to broaden their skills and prepare them for the workplace by developing practical skills sought by today’s employers.

Greater collaboration between industry and education and training providers like this will assist develop our future leaders and thinkers as work ready graduates. Greater engagement by employers with education and training providers will alleviate long term skill shortages and assist reduce the costs of training and recruitment.

Tuesday, October 7, 2008

The extent of segregation between men and women in the labour market in Australia

The policy proposal of the Commonwealth Government to increase the labour force participation rate of women to offset the emerging gap between fiscal capacity and fiscal commitments resulting from population ageing is misguided and misinformed and threatens reproduction, the very cause of population ageing. There is no doubt that the relationship of women, particularly mothers, to the labour force will be increasingly important as the Australian population continues to age, however, the below chart proves that women are currently not utilised in the labour market to the same degree as men.

The Index of Dissimilarity (ID) is a simple technique used to compare differences and/or similarities between two or more populations, in this case, to assess the level of segregation between women and men in the labour market, taking into account age, educational attainment, occupation, the presence or absence of children and the presence or absence of a partner. It generates a single figure index that identifies the minimum percentage of one population that would need to change for the frequency distributions of both populations to be the same.

The chart illustrates the ID for labour force status between men and women for each partner and child status variable combination, by educational attainment, for three broad age groups; 20 to 34, 35 to 49 and 50 to 64 years; as well as for the total population.

Each trend line shows the percentage point difference between the labour force status of men and women by their highest level of educational attainment. Each show the extent to which similarly educated men or women, with the same partner and child status, would have to change their level of labour market attachment for their labour force status to be the same.

Essentially, for all levels of educational attainment, the greatest degree of labour force dissimilarity exists for those partnered with children, and the least for those not partnered with no children. In other words, the presence of both a partner and a child, requires a greater proportion of men and women to change their level of labour force attachment for the labour force status to be the same.

Therefore policy intervention aimed at increasing female utilisation and thus productivity may be a more effective strategy in managing the projected impact of population ageing.

The Importance of Paid Parental Leave

The skill shortages being experienced in Australia today are a direct result of a severe reduction in the birth rate since the early 1970s, caused by women participating in the labour market at an increasingly greater rate.

Any policy addressing skill shortages and/or population ageing should therefore not be considered in isolation of fertility related policy.

Paid Parental Leave provides an opportunity for the government to set in place a policy to achieve an increase in both the level of labour force participation rates and increase fertility to replacement rate (2.1 births per woman in her lifetime).

The recently released Productivity Commission Draft Inquiry Report identifies the importance of paid parental leave to the economy and society. It believes such a scheme would:

· Generate increased child and maternal health and welfare benefits
· Stimulate lifetime employment rates of women
· Increase retention rates for business, with reduced costs for training and recruitment
· Promote the normalcy of combining working and a caring role for children

Any potential parental leave policy introduced in Australia should encourage reproduction, participation in the labour market and maximisation of the utilisation of available qualifications and skills.

The blog ‘The extent of segregation between men and women in the labour market’ discusses the current labour market scenario. An appropriate paid parental leave policy has the potential to close the gap between the utilisation of men and women in the labour market.

Friday, October 3, 2008

discrimination against the 'over-qualified'

I am regularly contacted by people who tell me that they are unsuccessful in obtaining work in Tasmania because they are 'over-qualified'.

This is particularly so for people who are considering moving to Tasmania.

I fail to understand how and why someone can be over-qualified.

I know I harp on about skill shortages (with due reason), however when someone specifically wants to work in Tasmania yet are continually knocked back interview after interview because they are too qualified it makes me wonder whether Tasmanian employers really want to help themselves.

I think it is the right of the job seeker to decide what sort of work they want to apply for. I would have thought having someone highly qualified would have been a positive for the job seeker.

What is it that is preventing organisations employing highly skilled and qualified people?
  • risk of attrition?
  • do they feel threatened?
  • think they have to pay them more?

I am really interested in some feedback on this particular topic.

Wednesday, September 24, 2008

what is meant by 'training capacity'?

I received a heart warming response to recent media coverage regarding skill shortages in Tasmania from people offering to share their wealth of knowledge and experience with our youth.

While this is a really wonderful response, it highlights the lack of understanding of the requirements of our training system and what is meant by 'training capacity'.

Industry suggests that training has reached its capacity. It is difficult to increase the current numbers being trained due to the need for appropriately qualified and experienced employees to supervise and mentor apprentices, trainees or graduates and the limitations this places on the number of new entrants that can be trained.

When employers take on an apprentice, they are required to have a certain ratio of fully qualified people in the same discipline to train them on the job. For example an apprentice electrician will spend 4 years undertaking their apprenticeship which will involve ‘school’ and also on the job training by a fully qualified electrician. Therefore if employers do not have enough fully qualified electricians, they can not take on any additional apprentices.

The same situation exists for health care professionals ranging from extended care assistants to heart surgeons and also for accountants and engineers, chefs and plumbers.

Basically, what industry says is that they don’t have enough fully qualified and experienced people in specific occupations to take on any more apprentices/trainees or graduates that require on the job training, supervision and mentoring.

Friday, September 19, 2008

How about this to attract skills?

I am all for developing innovative practices to address skill and labour shortages, but the recent announcement by a North West Queensland Council to sell parcels of land for $1 to attract targetted skill sets, certainly has to be the best one yet!

People interested in the land must meet certain criteria. The town is particularly looking for a vet, a hairdresser and all trades, including truck drivers.

To apply for the land grab, interested parties must have less than $500,000 in combined assets and pre-approval from a bank to build a home. They must complete the dwelling within two years and occupy the residence for at least a year. Applicants will go into a raffle for the seven blocks, to be drawn at noon on October 6. All blocks have sealed road frontages, with power, water and sewerage connections available.

Apparently a town in Tasmania tried a similar tactic recently offering houses to rent for $1.

The community of Levendale was inundated with emails and telephone calls from young families worldwide wanting to escape the rat-race and snare their slice of rural bliss. The traffic on the rural community's website, where people could register their interest in one of the vacant farmhouses being offered for a dollar, was so heavy that it crashed.

What other innovative approaches can we introduce to attract skill and labour to Tasmania?

the upside to the financial market mayhem?

I don't profess to be a financial market expert, I leave that to my lovely husband the financial advisor who is not really enjoying his job at present, but I do believe there is an upside, for employers anyway.

In a very short period of time, since the end of October 2007, the All Ordinaries has lost around 30% of its value. Given that most people have been planning for a self-funded retirement (imposed on them in the early 1980s by the then Australian Government) and therefore more than likely exposed to the volatility of the share market, those planning for retirement have seen a dramatic reduction in the value of their superannuation nest egg. For this reason, people may be forced to delay their retirement intentions and remain in the workforce, particularly those people nearer to retirement age. It may also result in previously retired people having to re-enter the labour market. This is an unfortuate situation for those who were planning SKI holidays (Spend the Kids Inheritance holidays), but potentially a real and effective solution to offsetting the impact of an ageing population on skill and labour shortages.

It is important to recognise however, that those nearing retirement and those re-entering the labour market from retirement scenarios, may have differing needs and desires from the workplace. In order to maximise the productivity, skills and knowledge of those planning for retirement (and potentially resentful that they are still required to work!) it is important to work with them to make sure that the needs of all parties are able to be met.

Thursday, September 18, 2008

what is innovation?

"Innovation" is the catch cry of many as a solution to the various constraints experienced by businesses in achieving short, medium and long term objectives. It is a word that is certainly bandied around with the true meaning rarely understood.

In fact, "innovation" is feared by many in business as a result of the perceived levels of investment in such things as time, research and development and capital, required to be 'innovative'.

Innovation simply means to do something better; improving processes to increase efficiencies and effectiveness. For some this can involve high levels of investment in R+D, but for others it could simply mean outsourcing of low value/low capacity tasks eg book-keeping, IT database management or recruitment.

In order to be 'innovative' you need to allow and encourage creativity in the workplace - not just aesthetically but thinking creatively too. Thinking will challenge the status quo.

Creativity is coming up with ideas that will add value. It can be described as the defeat of a habit by originality. Don't be afraid of making mistakes, its not failure, a person who doesn't make mistakes is unlikely to make anything at all!

Embrace innovation. A small difference or improvement in process has the potential to make a big difference in your workplace or business or life.

addressing new problems with old strategies

The TCCI Education and Skills Summit on Tuesday highlighted again a lack of understanding of the underlying causes of skill and labour shortages in Tasmania and of the educational reforms currently being implemented in the State.

It would appear from the discussions throughout the extremely valuable afternoon that industry expects the government to provide a solution now and and that government expects industry to provide the mechanism for social reform through the employment of the unemployed, disadvantaged and/or marginally attached.

There does not appear to be a middle ground, neither party appears to be taking responsibility for a long term strategic response to this unprecedented predicament. Ron Ward CEO of Veolia and up for re-election on the re-invogorated TCCI Board made a pertinent comment. There needs to be a wholistic approach for a long term strategy and the approach needs a champion. Unfortunately, this critical assertion was lost to the sea of delegates primarily concerned with finding short term, reactive solutions to a long term problem.

The TCCI announced commitment to continuing the pursuit of a solution. I urge those commited to the cause to contact the TCCI, as inertia will be Tasmania's downfall otherwise.

Thursday, September 11, 2008

unemployment rate less than the national average!

How exciting! This is great news for the Tasmanian economy, tough for employers, but great news nevertheless.

The ABS released the job figures this morning. The trend unemployment rate for Tasmania has decreased to 4.1% from 4.2% last month and is now lower than the national unemployment rate of 4.2%.

Around 1,500 more people are employed in Tasmania this month than last month (1,200 of them full time).

There has been an increase in the participation rate to 62.4 (from 62.1 in July 2008). This equates to around 1,500 people more people participating in the labour market than in July 2008.

The number of unemployed people decreased by around 100 persons to 10,300.

This is great news as I have said and we can all be very proud that our state is performing well above our weight.

Monday, September 8, 2008

Occupational Skills Shortage Analysis Report

Lisa Taylor Consulting recently completed an Occupational Skills Shortage Analysis for Skills Tasmania.

The objective of the analysis was to:
- Define skill shortages in Tasmania
- Identify and explain the causes of skill shortages in Tasmania
- Classify skill and labour shortages
- Profile Tasmania’s industry sectors based on contribution to the economy
- Identify specific occupational shortages
- Identify occupations not in short supply in Tasmania
- Identify the impact of skill and labour shortages on Tasmanian industries, the economy and the community.

The findings of the Occupational Skill Shortage Analysis provides a comprehensive foundation from which Skills Tasmania can determine the relative economic and social significance of skill shortages in different occupations and industries in Tasmania. This will enable Skills Tasmania to make informed decisions to develop priorities for skill acquisition and development strategies. In particular, this analysis provides Skills Tasmania with a critical insight into the impact of skill shortages on the economic, workplace and social spheres of the Tasmanian community.

The final report has now been published and is available on the Skills Tasmania website.

The covering letter and report can be accessed through the below links.

Introductory letter from Mark Sayer, General Manager, Skills Tasmania www.skills.tas.gov.au/systemtas/research/skillshortagestherealstory.pdf

Occupational Skills Shortage Analysis Report
http://www.skills.tas.gov.au/systemtas/research/skillshortagesreport.pdf

Friday, September 5, 2008

The realities of skill and labour shortages - an industry perspective

The guest speaker at my Rotary lunch this week was the President of the Institute of Foresters of Australia, Peter Volker.

Peter has been targetting community services groups to raise the profile of the career of a Forester. According to Peter, the greatest challenge facing the industry at present is the inability to attract people to consider a career as a Forester.

Peter believes there are a number of factors contributing to the industry's predicament. Firstly, the general negative perception of the forestry industry, and secondly that a Forester is required to undertake a 4 year university degree, predominantly science and engineering focussed. Peter says the industry requires 80 new entrant Foresters per year, however at present the five universities offering the course in Australia are producing around 20 per year. The degree entails around 35 contact hours per week and numerous field trips which require days and weeks away at any one time. Peter believes that the cost of undertaking a university degree to students is so excessive that the student is required to work on a part time or casual basis for survival purposes. Given the extent of contact hours required for a Forester education, part time work is not possible and therefore prevents people from considering a career as a Forester.

While these two issues may be very real factors in contributing to the Forester industry's inability to attract new entrants, it again highlights the lack of understanding of the causes of skill and labour shortages.

Almost every industry in Australia (and world wide) will experience the same challenges in attracting people to the careers offered within their industry. Each one will have their own specific barriers to overcome, whether it be the perception of the industry, the non-traditional working hours required, the physical or seasonal nature of the industry or some other barrier.

Industries are already competing against each other to attract the diminishing supply of labour to their sector. Industry will have to start early in educating students (and their parents) about the opportunities within their sector and continue to invest and be proactive in attracting and maintaining their workforce through retention strategies.

The early bird catches the worm = success comes to those who prepare well and put in effort.

Push to give men equal rights to flexible work

The below article appeared in the Courier Mail yesterday and can be found on the News website, link provided below.

This comes down to my mantra that you can't fix new problems with old strategies. The ageing population and resulting skill and labour shortages mean that the status quo is not going to work anymore. It requires compromise and foregoing some elements of traditional cultures (eg the mother being the primary care giver) so that all members of our society and community can effectively co-exist (hopefully happily, productively and prosperously!).


A FAMILY Discrimination Commissioner with the same powers as the Sex Discrimination Commissioner has been proposed to ensure men get equal rights to flexible work conditions.

Sex Discrimination Commissioner Elizabeth Broderick suggested the new commissioner to champion the rights of men as the Rudd Government moves to overhaul the Sex Discrimination Act. Ms Broderick yesterday said the current work culture that made it easy for women to do part-time work, get leave to care for children and get maternity leave disadvantaged both men and women, and entrenched gender inequity.

Women were disadvantaged because they were placed on the "mummy track" and their careers stagnated when they used these flexible work provisions.Men were disadvantaged because although these flexible work conditions were available to them on paper, work culture prevented men from using them.

More than one third of men were working longer than 45 hours per week with fathers of young children likely to work longer hours, Ms Broderick said. A male worker told her during her recent listening tour that he was seen as letting the team down when he asked for access to flexible work conditions." Try to be the person who walks in and says, 'I'm going to work an eight-hour day - start work at eight and walk out of the office between four and five o'clock'. They're going to stare at you when you leave," he said.

Ms Broderick said creating workplaces that supported both men and women to balance paid work and shared caring responsibilities was critical in achieving gender equality. Under the current Sex Discrimination Act, men can make a claim about discrimination only if they are sacked for asking for part-time work. Women have greater rights and can make a case if they suffer indirect discrimination such as being placed on a mummy track without promotion if they work part-time.

Ms Broderick wants to change the Sex Discrimination Act so men also have the right to take action for indirect discrimination if they are put on a daddy track after requesting flexible work conditions. But she said the best way of protecting men's rights was to have a family responsibilities commissioner with their own Act.

Ms Broderick said the scope of the Act needed to be expanded to cover sex discrimination and harassment in text messaging and social networking sites such as Facebook.

http://www.news.com.au/business/story/0,27753,24289177-5012426,00.html

what are your thoughts?

Thursday, September 4, 2008

ABS Population Projections

Today the ABS released its population projections for the period 30 June 2007 to 2056.

Assuming the medium level assumptions, the ABS Series B projects population growth for all states and territories in Australia, except Tasmania.

Tasmania's population is projected to increase slowly before levelling out by around 2040 and then decreasing marginally from 2051 onwards (571,000 people in 2056). Tasmania's share of population is projected to decline from 2.3% at 30 June 2007 to 1.6% in 2056. During the same period, Tasmania's population is projected to age at a greater rate than any other state or territory with the median age at 30 June 2007 being 39.1 increasing to 45.7 by 2056. Natural increase is also projected to decline during this period, with deaths first exceeding births in 2035–36.

The implications for Tasmania are profound.

Essentially, there will be no end to the current skill and labour shortages we are experiencing. It is projected that more people will be exiting the workforce in Tasmania than entering it by late 2009 or early 2010.

Short to medium term opportunities as a result of an ageing population include greater demand for products and services targeting an active, older age group and an increase in voluntary services to the community.

However, the diminishing supply of labour and subsequent growth in older age groups will place increasing pressures on our health and community services sectors. As a result there will be greater demand for the provision of public services yet are required to be funded by a depleting tax revenue base.

The Tasmanian Government set up the Demographic Change Advisory Council (DCAC) as a key advisory body. The DCAC has released a number of discussion and issues papers relating to demographic change in Tasmania. The DCAC is currently calling for submissions to its latest paper, Strategies Discussion Paper, which details proposed initiatives for addressing the implications of demographic change in Tasmania.

More information about the Demographic Change Advisory Council (and a copy of the Strategies Discussion Paper) is available at http://www.dcac.tas.gov.au/

Tuesday, September 2, 2008

New state government grant program - Workforce Participation Program

The Department of Economic Development and Tourism today launched the Workforce Participation Program, aimed at assisting Tasmanian businesses deal with the challenge of skill shortages.

$2.3 million is available per year in grants through the Workforce Participation Program.

Grants will be provided to organisations that provide employment for a person who has not been employed in the previous three months, and who faces a barrier that prevents them from working. The grant funding is to be utlised to assist the person overcome the barrier, whether it be training, child care, transport or other barriers to workforce participation.


There are two grant schemes available:

1. Grants for employers - grants of up to $7 000 per job are available to encourage employers to fill vacancies and satisfy demands for labour by employing Tasmanians that they usually do not consider

2. Grants for Community Enterprise - funding is available to create and facilitate employment opportunities through community enterprise for Tasmanians. Funding will be calculated on $7 000 per job. Please note this program replaces Partnerships to Jobs.

For further information, including a copy of the guidelines and application forms see
http://www.development.tas.gov.au/workforce/wpp.html

Friday, August 29, 2008

impressive job advertisement

I was really impressed with a job advertisement recently placed with tasmanianjobs.com and I wanted to share it with you and get your thoughts...

The advert is for an Officer Manager with a newly opening dental hygiene clinic. It is best to read the whole advert which you can access from this link http://www.tasmanianjobs.com/jobs/view/index.php?id=3271

The advert starts as follows, but as I said, it is best read in entirety (the link to the PDF job advertisement attachment)

The position title will be ‘Office Manager’ but should probably be aptly titled ‘All Knowing All Fix It Boss Lady’. The first and about only rule that I wish to impose, is that no person works “for me” but rather“with me”, as without high quality staff, I do not operate and my business ultimately fails. This business is new and will go through considerable transformation over the coming 6 - 12 months, and therefore will be as much as mine as it will be yours.

Please, have a look and share your thoughts.

Wednesday, August 27, 2008

an interesting day...

I have had an interesting day thus far.

It started with presenting at the National Heads of Student Administration (HOSA) conference on 'Labour dynamics and trends in managing staff'. While the content of the presentation was at times quite complex and confrontational, it was an incredibly engaging experience. Essentially, I outlined why we are experiencing the skill and labour shortages we are and provided some guidelines and resources on how to develop strategies to effectively manage an organisations workforce into the future. While some of the delegates may have had difficulty accepting what I was saying, they certainly acknowledged the issue. We then proceeded to have very interesting discussions over morning tea. I left the conference on a high...

A copy of the presentation (slides only) is available at http://www.tasmanianjobs.com/about/newsletters/

I then attended a focus group luncheon based on the Demographic Change Advisory Council's Strategies Discussion Paper, Strategy 1 : Sustaining Tasmania's Workforce. The objective of the focus group was to discuss the initiatives presented in the paper and come up with alternative or additional initiatives. Representatives from Economic Development and Tourism and Skills Tasmania outlined their current initatives in addressing the issue of sustaining Tasmania's workforce. Much of the discussion around the table was focussed on what industry should be doing to engage our youth, the unemployed and all others not participating in the labour market that want to work. Of the 20 people around the table there was only one direct industry representative. All other representation was from government agencies, unions, educators, not for profit organisations and one representative from the TCCI (and me!). The discussions focussed on the supply of labour and how to get these people into the workforce rather than any discussion of demand for labour. In addition, there seemed to be very little understanding of what skill shortages are and what causes them. When demographic change was explained as how and why it contributes to the labour shortage and its implications for Tasmania, one participant stated that they didnt think industry understood demographic influences.

She made a very good point, and I started wondering why industry may not understand what is happening in the labour market today. I wondered whether government actually tries to engage with industry in forums and conferences such as the one I attended today, and then if they do, why doesn't industry get involved? Essentially government is trying to provide information and develop strategies and initiatives that will assist attract and retain a skilled workforce in Tasmania. Ultimately the majority of these skilled people will be employed by industry.

Why are industry not involved?

More information about the Demographic Change Advisory Council (and a copy of the Strategies Discussion Paper) is available at http://www.dcac.tas.gov.au/

Tuesday, August 26, 2008

media awash with skills issues

Recent newspaper articles highlight the degree of impact that the skill and labour shortages are having in Tasmania (not surprisingly).

What strikes me is that many industry bodies are all kicking and screaming about the skill and labour shortages (and rightly so) and there are a few people or representative bodies that offer advice or bandaid solutions, yet no strategic effort to work together to address the issues is evident. It would appear that there is great opportunity (and demand) for greater collaborative efforts between industry peak bodies, government (at all levels) and other stakeholders.

This week the AMA says the Launceston General Hospital is imploding due to staff shortages, and those that are left are 'voting with their feet' and leaving due to burnout.

The new MBA head said he was concerned about the ageing demographic of the industry and that he would need 220 apprentices per year to be recruited to maintain the existing workforce (let along grow it).

Tasmanian fruit growers are enthusiastically welcoming the possibility of Pacific Islander workers to assist with fruitpicking during the harvest season but are concerned about a lack of public transport and worker accommodation. However, the industry also acknowledges the competition for labour during this period as it coincides with the peak tourism season which has a high demand for retail and hospitality casual labour.

International students lament the inability to secure employment in Tasmania once they have completed their degrees. A spokesman for UTAS said that "students chose to enrol in university courses for the degree only. We don't guarantee or provide opportunities for work or residency after graduation".

The TCCI suggests that a solution to overcoming the cultural integration issues for international students is to encourage participation in work based apprenticeships and traineeships.

These are but examples of what is going on in Tasmania, but who is leading the way???

Friday, August 22, 2008

how to win a war

I have just attended a seminar at the School of Government, UTAS, where Professor Harry Gelber used two war time examples to illustrate how military wars have been won. The wars in question were the 1860 invasion of Beijing by the British and French and the 1940 campaign by the Germans to occupy France.

Regardless of which war, Professor Harry Gelber believes that the art to winning a war is not necessarily decided by the level of military and artillery capacity, but by a combination of strategy and tactics, on-going training and drilling, logistical and administrative preparation allowing for housing (shelter), provisions and weather as well as, very importantly, enthusiasm and morale. In addition, the winning of a military war is also highly dependent upon strong leadership.

A comment from the floor also identified that once the battle had commenced, tactics and strategy needed to evolve with change, challenges and unanticipated issues.

I couldn't help but make comparison with the current 'war for talent' we are experiencing. It is not the level of artillery (remuneration) that will win this war either. Sure, it will be a factor, but it is the leadership, strategic approach, committment to on-going investment in skill development, support and engagement with staff (morale) that will make an organisation the victor in the war for talent.

Wednesday, August 20, 2008

stunned

Reading the BRW this week, I was stunned by economist Mark Wooden’s comments that he does not believe in skill shortages, and that if they do exist it is purely because business is not prepared to pay what the skilled people are worth (The Big Fix, August 7-13, 2008). Unfortunately, it confirms to me that economists do not appreciate or acknowledge the importance of demography in our economy and the subsequent failure to recognise the need for generational replacement of labour (total social production). We have a skill and labour shortage because we have not reproduced enough to replace our existing workforce. It is exacerbated by a strong economy.

Total social production expands on the economic theory of modes of production in which labour is required on a daily basis. Total social production argues that labour must be reproduced on both a daily and intergenerational basis.

Essentially, the concept of total social production is that neither production nor reproduction can take place in the absence of the other. Most economic analysts see demographic reproduction as secondary to economic activity. Such analysts are predominantly concerned with population in terms of labour force participation and the unemployment rate. However, total social production argues that economic production and demographic reproduction are mutually dependent. Total social production theorists argue that economic dependence reflects a general inability (or failure) to acknowledge and integrate the generational replacement of labour.

This failure has already affected, and will continue to affect, the future supply of labour. Hence, we have skill and labour shortages (or people shortages).

Tuesday, August 19, 2008

Another Employer of Choice Breakfast... but refreshingly different

This morning I went to an Employer of Choice Breakfast hosted by the TCCI and sponsored by Hazell Bros. As you can probably imagine, I go to a lot of conferences, breakfasts and events related to the skill and labour market. However, this one was different. Refreshingly different.

For the first time in a long time, the concept of Employer of Choice didn't focus on Gen Y, or flexibility in the workplace or paid maternity leave, but programs that are actually measurable in improving both business profitability and employee welfare. Hazell Bros provided examples of the programs that they use to better engage with their employees which has direclty resulted in signficant decreases in workers compensation insurance premiums, retention and absenteeism.

Hazell Bros recognise that it is often difficult to separate work from life (and vice versa) and therefore outsources the provision of an employee assistance program (EAP). While EAPs have been used in the workplace since the 1940s, they have traditionally focussed on drug and alocohol related issues affecting an employee in the workplace. It is now more common for employees to experience stress, relationship problems, depression and even conflict in the workplace. These issues can have a detrimental affect on workplace performance.

Hazell Bros believes that providing the means to address personal issues through the workplace provides benefits to both the business and the community.

Tony Newport from Newport & Wildman advised that affective EAPs are an essential tool in the workplace have the following attributes:

1) listen and validate
2) never promise what can not be delivered
3) assert what can't be done
4) acknowledge when a supportive strategy is not working
5) assert what needs to be done

Today's breakfast demonstrated that the Employer of Choice concept is not a soft and fluffy concept as is often intepreted, but can provide real workforce planning solutions with direct results.

Monday, August 18, 2008

Accentuate the positive, eliminate the negative – Tasmanian workplace practices

Many Tasmanian organisations are adopting innovative practices to attract, retain and motive their staff through approaches which meet the needs of both employee and employer.

· A financial services provider rewards and recognises its staff on a monthly basis at a morning tea whereby individual employees are recognised for their efforts across a range of spectrums and gifted with an appropriate reward.


· A restaurateur took his full time staff to Melbourne for an all expenses paid trip in thanks and recognition of their dedication and hard work over the 6 week Christmas New Year period. NB a hairdressing salon owner has been doing the same thing for five years, with no turnover during that period.

· A regional manufacturing firm provides a petrol allowance for those living a long way away and one Friday afternoon per month off for an employer funded BBQ and beers.

· Two businesses less than three years old, one in the IT industry and the other in the administrative sector, provide both share options and profit sharing to new employees in an effort to both differentiate from larger, established businesses but also to create loyalty and productivity through vested interest.

· A number of organisations provide the three days between Christmas and New Year as leave in lieu of work well done (in addition to standard annual leave).

· A statewide financial services organisation employs final year finance or accounting undergraduates, contributes to their fees and provides extensive study leave with the view of providing relevant experience to students as well as securing graduates with experience into the future.

· A not for profit association offers a nine day fortnight (as full time) to employees who are able to complete the required 76 hours productively during flexible work arrangements.

· A business in the IT sector provides its employees with their birthdays as a leave day.

· A community welfare organisation offers its employees three half days per year to go to a child’s sporting or cultural event or attend another community event.

· A number of organisations sponsor a corporate team in a sporting fixture or event or support their staff in a charity event like Movember, Relay for Life or World’s Greatest Shave.

While these approaches may seem simple enough, all organisations report that these innovative practices have provided them an edge in both recruitment and retention as well and employee loyalty and satisfaction.


what are your thoughts?

Friday, August 15, 2008

The opportunity cost of working in Tasmania

I am regularly contacted by people wanting to relocate to Tasmania. These people have usually identified that Tasmania will provide for their lifestyle of choice (understandably!), but they have concerns about the opportunities for meaningful employment here.

For all choices that are made there is an opportunity cost. In choosing the lifestyle that Tasmania has to offer the opportunity cost is the higher income foregone from working interstate. While Tasmanian wages and conditions are on an upward trend there is still a differential between salaries in a similar position in Tasmania and in a major city on the mainland. As the demand for skilled labour intensifies worldwide this differential is not likely to change.

It has previously been argued that Tasmania’s cost of living is more affordable than our mainland counterparts, apparently justifying our lower wages. However, a number of external factors have contributed significantly reducing this relative affordability, including interstate rates, the drought and the oil price.

The questions for relocators to ask are, what is the value of a lifestyle in Tasmania? Is it at least equal to the wage differential? What is the opportunity cost of not relocating to Tasmania?

The questions for employers to ask are, can you afford not to attract and retain the skills and labour you require?

Wednesday, August 13, 2008

Tasmania's population debate

Last week's Employer of Choice Conference in Launceston created a media frenzy following Bernard Salt's and Natalie Jackson's presentations on population ageing, the labour market and the implications and opportunities for Tasmania.

All three of Tasmania's state political leaders entered the debate, along with the TCCI and the Sustainable Population Australia Tasmanian branch, however Associate Professor Natalie Jackson, Demographic Analytical Services at the University of Tasmania believes that if there is to be a debate about an optimal size for Tasmania's population, then it is important to understand the following facts:

1. Calls for a debate on an optimal size for Tasmania’s population miss the point about population ageing and composition. Across Australia, even with a net international migration gain of 140,000 per year, the next decade will see the nation’s population aged 65+ grow by 43 per cent while all other age groups combined will grow by only 7 per cent.

2. Similarly, between now and 2028, Australia’s population is projected to grow by 5.8 million (27%), but that will involve a doubling of the population aged 65+ years, against growth of 16% for all other age groups combined.

3. Arguing that we don’t want Tasmania to become a retirement village similarly misses the point. The next 20 years will see relatively wealthier, healthier retirees. It is likely that encouraging more of them to come here – whether to live or to visit -would stimulate the economy enormously; and stimulate jobs in the retail, hospitality and building sectors that would keep more of Tasmania’s young people here. (I [Natalie] have referred to this previously as Clayton’s population growth: the growth you are having when you no longer have growth).

4. Despite the present small increase in birth numbers, the excessive loss of Tasmanians aged 18-38 years over the 1990s continues to play the major role in the state’s future demographic fortunes, as does the continuing net outflow in this demographic. Before thinking about population size per se it would be germane to shore up the glaring bite in the age structure. These are the people who have the babies, keep the schools, retail and housing industry going, and are needed to replace the state’s baby boomers (who incidentally plan to retire earlier than their mainland counterparts). Note that this outflow did not stop even during the recent period of net migration gain, while in the 2006-07 year, net interstate migration removed a further 1,220 persons aged 10-34 years.

5. When talking about growth targets, some thought should be given to when it is hoped they could be achieved by, and thus whether or not they are feasible. For example, to achieve a population size of 600,000 by 2020 would require a consistent annual net migration gain of approximately 4,000 per year. At a net gain of 2,000 per year it could be achieved by the mid-2030s.

6. Tasmania’s ‘low’ population growth needs to be seen in the context of Europe, where zero growth is now the norm and will be permanently so; the result of population ageing. Keep in mind that Australia’s growth rate is unique in the developed world, and in fact is presently above that for the entire world.

Tuesday, August 12, 2008

Where are the opportunities for Tasmania’s youth?

Recently tasmanianjobs.com has increasingly been contacted by graduates lamenting the fact that they can not secure a meaningful job in Tasmania. It may be a case of over supply of graduates for the available jobs in Tasmania, but it may also be that employers are reluctant to employ or invest in recent graduates. With access to suitably qualified people being the number one constraint for Tasmanian businesses for 17 consecutive quarters, as identified by the TCCI Business Expectations Report released last week, it would appear that Tasmania’s youth, and particularly graduates, are an under-utilised resource for addressing skill and labour shortages in Tasmania.

These graduates are reporting to tasmanianjobs.com that they are being offered opportunities interstate, however would prefer to stay in Tasmania. Essentially, young Tasmanians are being forced to leave the state to gain meaningful employment opportunities in their preferred career path.

While Tasmania is reporting it’s lowest ever unemployment levels, currently 4.3% and equal to the national rate
[1], the breakdown of unemployment and participation rates by age group provide a poignant insight into the realities of Tasmania’s labour market.

The above chart details the unemployment and participation statistics for Tasmanians by age group. As illustrated, it is Tasmania’s younger age groups that have the highest rates of unemployment. With the ageing of the population and imminent cross over of more labour market exits than entrances, Tasmania’s youth provides a real opportunity to retain skilled, educated persons and labour supply in the state.




[1] ABS 6202.0 Labour Force July 2008