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