tasmanianjobs.com blog

what is the solution?

2011-02-21T11:08:00.003+11:00

I recommend a return to the cub scout days. Be Prepared. Sir Robert Baden-Powell, founder of the Boy Scouts said ‘that a scout must prepare him or herself by previous thinking out and practicing how to act on any accident or emergency so that he is never taken by surprise’.

Prepare yourself and your staff for life after work. Take a three pronged approach to investing in yourselves:

1) Skills and knowledge

Make sure you are employable, productive and relevant to maintain your highest capacity for earning (and saving and investing)

2) Health and well being

The healthier you are the more engaged in life, work and the community you can be. The inverse is also true, there is research supporting the evidence that the more engaged people are in society and community the less likely they are going to be in need of health related services.

3) Financial security

Work out your financial needs for the future and engage a financial adviser to assist you develop the strategy to get you there.

How much is enough?

2011-02-21T11:07:00.002+11:00

Lifestyle is a very personal thing - luxury living for one person may be a modest existence for someone else. Choosing a lifestyle is simple - you live the life you can afford. Regardless of the amount, a plan is required to ensure you are able to live the lifestyle you want when you cease employment.

There are two basic methods for determining how much you need in retirement.

1) Budget approach. Firstly, determine what you will need to meet your expenditure requirements per annum. Then, look at the average life expectancy if you are a male or female and multiply the amount you will need each year to live on by the number of years you expect to live upon retirement.

2) Proportion of current salary. A good rule of thumb is that you will need 60 to 70% of your current working salary per annum to live in retirement. Again, multiply this amount by the number of years you expect to live to arrive at an amount of money you will need in retirement.

Currently, the life expectancy for Australian males is 84 years and 88 if you’re female. So, if you plan to retire at 65, your retirement savings will need to last you around 20 years if you're male and longer if you're female.

For example, a male currently earning $50,000 per annum, intending to retire at 60 years of age, will need $35,000 per year for the remainder of his life. Multiplying $35,000 by the 24 years of life he has remaining (based on life expectancy projections) he will require $840,000 as a lump sum in retirement. He will then need to ensure that this is appropriately invested, to maintain real values. NB these numbers are expressed in present value and do not take into consideration the factors affecting the future value, namely the economic and investment climate, interest rates, inflation, superannuation legislation, taxation reform and, of course, personal circumstances. Nor do they take into account return on investment following retirement.

Needless to say, a 9% compulsory superannuation contribution per annum is not likely to be able to achieve the required amount to meet lifestyle needs in retirement.

For the example above, assuming a 25 year old male commenced employment today, contributing only the SCG 9% of salary on $50,000 per annum with a retirement intention age of 60, invested in a balanced fund earning 8% per annum and management fees of 0.55%, the superannuation accumulation in today’s dollars would be $246,000. This is $594,000 short of what he would require.

In this example, this man, retiring at age 60 in 2046, would be forced to rely on the government to assist him financially to meet his needs. However, in 2046 access to the Age Pension is not possible until age 67 and therefore he would be required to continue work for another seven years, or find an alternative income stream.

That said, as at 20 September 2010, the Age Pension was $18,619 a year for a single person, or $28,070 for a couple, including pension supplement, representing 27.7 per cent of Male Total Average Weekly Earnings.

And I haven’t even mentioned the rampant materialism of our current generations and our extremely high levels of indebtedness in Australia. However, that said, it is projected that consumption will fade due to the growing pressures of an ageing population, continued global financial uncertainty, and the rising costs of transport, energy, petrol and housing.

The conclusion to be made from these musings is that neither the compulsory superannuation guarantee nor the age pension, or a combination of the two, are going to be able to support our needs and wants in retirement.

A History of the Compulsory Superannuation Guarantee

2011-02-21T11:07:00.000+11:00

In 1992, as a response to the anticipated demographic shift towards older populations, the then Keating Labour Government introduced the Compulsory Superannuation Guarantee as part of a major reform package addressing Australia's retirement income policies. It was anticipated that an increase in age pension payments would place an unaffordable strain on the Australian economy. Since its introduction, employers have been required to make compulsory contributions to superannuation on behalf of most of their employees. This contribution was originally set at 3% of the employees' income, and has been incrementally increased by the Australian government. Since 1 July 2002, the minimum contribution has been set at 9% of an employee's ordinary time earnings. Individuals can choose to make extra voluntary contributions to their superannuation and receive tax benefits for doing so. Subsequent governments have made additional changes to superannuation including the capping of personal contributions and limiting salary sacrificing options. No doubt further changes will also be made in the future as governments attempt to encourage people to stay in the workforce longer.

As superannuation is money invested for one's retirement, strict legislative rules prevent early access to preserved benefits except in very limited and restricted circumstances. Initially superannuation was able to be accessed after the age of 55; however, in 1997 the Howard Liberal Government announced changes to the superannuation system to raise the access age so that by 2025, all Australian workers wishing to access their superannuation would be at least 60 years old. These changes were designed to induce Australians to stay in the workforce for a longer period of time, delaying the effect of population ageing. However, the greater the share of retirement schemes that are privately funded, the less the government can influence labour force participation of older people. Access to financial assistance from the Government in the form of the age pension is available from age 65 for males and 64 for females. The Federal Government has also flagged that the Age Pension age is to increase from age 65 to age 67, effective from year 2023.

Gross National Happiness

2010-12-15T10:18:00.002+11:00

In 1972, at the age of 17, the newly crowned King of Bhutan declared that happiness was more important than economic growth. As such he developed a concept for happiness; Gross National Happiness (GNH). Instead of doing the predictable accumulation of power and wealth during his reign, the 4th King of Bhutan, HM Jigme Singye Wangchuck made the happiness of the people of Bhutan the guiding goal of development. He decided that gross national happiness was a much better way to measure a country’s real wealth than gross national product. He believed that happiness is an indicator of good development and good society. When the nation transitioned from an absolute monarchy to a democratic nation in 2008 the reigning king (the 5^th King of Bhutan) ensured that happiness would remain a priority and he built it into the young country’s constitution. In 1972, channelling growth in GDP towards happiness was considered quite new (if not absurd) but in recent times, GNH has attracted attention. Opinion around the world has started to converge on happiness as a collective goal and a tool to measure happiness has been developed. Additional, research has also indicated considerable benefits to the workplace in that happiness raises productivity by increasing workers' effort.

Productivity and Happiness

2010-12-15T10:17:00.003+11:00

Nothing contributes more to a society’s well-being than productivity. “Productivity isn’t everything, but in the long run it is almost everything.” Economists have long analysed ways to boost productivity through improved skills and education, changing technologies and uses of capital.

Happiness economics typically looks at how macro-level variables such as economic growth affect happiness (standard of living). However, having analysed Bhutan’s philosophy, the question that should be asked, is how does happiness affect economic growth?

Studies have been undertaken to identity whether a rise in happiness might change behaviour at the micro-level, looking specifically at productivity. These studies have confirmed that happiness has large and positive causal effects on productivity. Positive emotions appear to invigorate human beings, while negative emotions have the opposite effect. Happier workers’ effort levels go up, while their precision is unaltered. At the same time, high level (i.e. death in family) unhappiness reduces productivity to a striking degree.

If happiness in the workplace brings increased returns to productivity, then human resource managers, business managers and policy makers need to consider the implications.

There are numerous organisations which have developed tools to measure employee engagement. It’s time for leaders to distinguish between what they can easily count (“are you being paid enough?”) with what employees most value. The intangibles of mission and meaning and happiness are powerful fuel for employers, so finding appropriate ways to measure, and act on, these vital inputs is critical.

Finally, economists need to take the emotional state of economic agents seriously. A recent 18-month study of two Nobel economists recommended that the largest countries of the world end their obsession with GDP and consider some new intangible metrics. In essence, they suggested that GDP – which focuses exclusively on tangible production and consumption – no longer should be our sole definition of global success especially at a time when 64% of the world’s GDP now comes from the intangible service industry.

Gross National Happiness Index

2010-12-15T10:17:00.000+11:00

Economic growth is generally the mandate for all governments and economies, under the auspices that greater economic growth results in a higher standard of living. Economic growth is generally measured by a number of indicators, including Gross Domestic Product (GDP). GDP is the term used to indicate the increase of output per capita and reflects the quantity of physical output of a society. GDP is heavily biased towards increased production and consumption, regardless of the necessity or desirability of such outputs.

Economic indicators determine policies, embody values and drive societies in a certain direction. The almost universal use of GDP-based indicators to measure progress has helped justify policies around the world that are based on rapid material progress perhaps at the expense of other more holistic criterion such as environmental preservation, cultures and community cohesion.

With a focus on happiness, and as many contemporary indicators of progress and development do not reflect GNH adequately, the Royal Government of Bhutan directed the Centre for Bhutan Studies (CBS) to develop a GNH index, which is to provide appropriate indicators for Bhutanese development. The government recognised the need for GNH indicators because without some kind of measurement system, GNH cannot guide practical policies and programs, however, with a measurement tool, GNH indicators can become tools of accountability.

The CBS constructed a single number index for Gross National Happiness. The purpose of the GNH index is to reflect GNH values, set benchmarks, and inform and track policies and performances of the country. The index can be broken down into individual component indicators that are useful for different sectors for planning and technical purposes at the ministerial and departmental levels.

The GNH indicators have been designed to include four pillars with nine core dimensions and 72 metrics that are regarded as components of happiness and well-being in Bhutan. The nine dimensions were selected on normative grounds, and are equally weighted, because each dimension is considered to be relatively equal in terms of equal intrinsic importance as a component of gross national happiness.

The nine dimensions are:

1. Psychological Well-being

2. Time Use

3. Community Vitality

4. Culture

5. Health

6. Education

7. Environmental Diversity

8. Living Standard

9. Governance

In Bhutan’s perspective, happiness comprises having sufficient achievements in each of the nine dimensions.

Essentially, by developing an index, Bhutan is measuring those inputs that influence the output (GDP) in a more holistic manner to determine whether they are creating a sustainable success.

As a result, Bhutan, a little, almost-mythical country in the Himalayas, has developed a tool to measure the intangible and is now is revolutionizing how world leaders are looking at the definition of development and success.

the importance of demography

2010-11-04T15:13:00.002+11:00

Population ageing is sometimes overwhelming, often misunderstood, and, more critically, its importance to our economy and livelihood is ignored.
Demography is the study of human populations and thus population ageing.
For all countries and regions (apart from one) economic growth is the mandate for all governments and economies. It is believed that economic growth increases standards of living. It is the term used to indicate the increase of per capita gross domestic product (GDP) and refers only to the quantity of goods and services produced.
Economics is the branch of social science that deals with the production, distribution and consumption of goods and services and their management through the analysis of the Factors of Production. The factors of production are the four resources which enable production; land, labour, capital and enterprise.
Focussing on the labour component, labour is a measure of the work done by human beings. Labour economics seeks to understand the functioning and dynamics of the market for labour. Such analysts are predominantly concerned with labour in terms of labour force participation and unemployment.
But, given that labour must be produced on a daily basis to achieve economic growth it should also be accepted that labour must be reproduced on an intergenerational basis.
This theory results in a concept known as Total Social Production. Total social production is where neither production nor reproduction can take place in the absence of the other. Therefore economic production and demographic reproduction are mutually interdependent.
Most economic analysts see demographic reproduction as secondary to economic activity. This ignorance has been a significant contributory factor as to why we are experiencing population ageing now. What has been missed by policy makers is the ability to ensure that production and reproduction can co-exist.
To manage the implications of population ageing into the future, the role of demography is paramount and can not be ignored any longer. It is time social policy and economic policy co-existed.

I'm back

2010-11-04T15:11:00.000+11:00

I’m back. My gorgeous little boy turned one last month and what a year it was. Now that he is healthy and happy, I thought it was time to reconnect with the world again. While I have managed to keep abreast of what has been happening in Tasmania economically, politically and socially, I have to admit being a full time mum has prevented me from digesting and analysing all the relevant information, policies and data sufficiently enough to provide you all with an insightful newsletter, InSummary.
Also last month, I presented to the Tasmanian Council of Professional Services a snap shot of population ageing, Tasmania and the implications for the labour market. During the time that Rory was sleeping, I beavered away; analysing data and policies, developing charts and working out ways to present the information which is sometimes overwhelming and often misunderstood in an informative, educational and challenging way. During this time, I had more energy, felt less tired, was engaged in the workforce again, was highly productive, was happier, and, more than likely, a better mother.

This scenario begged the question, if I could be both a good mum and highly productive in the workforce, why not consider a higher level of engagement in the labour market? Given I have no family in Hobart, I had to find formal care for Rory for the days that I would be working. Not only are most childcare services ‘full’, I discovered that we would not be entitled to any government concessions or rebates due to combined income assessments. In addition, we did not receive the Baby Bonus and are not entitled to any ongoing Family Tax Benefits. So, when I consider the cost of care and that almost half my income would go in taxes (from which I do not benefit), the next question is why would I, a highly educated, skilled, productive person, return to the workforce when there is no foreseeable financial gain? Any benefits would be purely self-fulfilling.

I know I am not alone.
With population ageing, shrinking workforces and skill shortages this is a ludicrous scenario.

tasmanianjobs.com announcement

2010-07-02T09:26:00.000+10:00

advertising with tasmanianjobs.com is now FREE

What: All employment vacancies

All education and training courses

How: Login as an advertiser at http://www.tasmanianjobs.com/ (or register as an advertiser at http://www.tasmanianjobs.com/advertise/register/)
Follow the prompts to advertise

Why: Instantly connect with over 3500 registered jobseekers

http://www.tasmanianjobs.com/

NB : any design, management or administration of advertising campaigns will continue to incur management fees as agreed prior to advertising.

Should you be interested in sponsoring, contributing to or advertising in the regular InSummary newsletter or quarterly job seeker newsletter, please contact me.

Studying interstate and the impact on skill shortages

2010-06-10T14:42:00.000+10:00

We know, and accept, that Tasmania is the oldest state in Australia, that we are ageing at a faster rate than any other state and that there are more people exiting the workforce than entering it. We know, and accept, that the ageing of the state is due to longer life expectancies, migration and, until recently, loss of people in the working age groups and thus reproductive age groups. Tasmania recently surpassed the Northern Territory for the highest birth rate and we are now producing children at a greater rate than the replacement rate (2.1 births per woman). This could be due to a number of reasons, all of which we are unable to detail here. However, one reason may be that, encouragingly, Tasmania is closing the gap on interstate migration losses to other states.

In 2002/03, Tasmania reverted from ongoing annual net losses in interstate migration, to a gain. Since then, apart from 2006/07, Tasmania has been welcoming more people to our state than fare welling. However, hidden in these numbers has been that we had continued to lose more people than we gained in the working age groups. This loss has now been contained to the 15 to 29 year old age group for the past three years.

Interstate movements are recorded and reported by Medicare, therefore we can not ascertain the specific reasons for this age group leaving the state. However, anecdotal evidence and a process of elimination would indicate the following reasons could be significant contributors:

• Employment opportunities
• Travel
• ‘greener pastures’
• Relocating with family/friends
• Study

Many post-school and tertiary education courses are not provided in Tasmania, in particular allied health professions. Below is a true example of a young Tasmanian’s experience in having to study interstate.

Case Study: Anna completed year 12 in Hobart in 1996. With a desire to become a physiotherapist, but realising she could not study in Tasmania, Anna was successful in being awarded a $20,000 per year scholarship by the Department of Health and Human Services (DHSS) to study interstate. Anna was accepted to the University of NSW. Wanting to live and work in Tasmania when she completed her studies, Anna would contact the DHHS seeking placements in Tasmania for all of her rounds. She was advised that this was not possible as they had an existing arrangement with the University of Adelaide. Upon completion of her qualification, Anna still wished to return to Tasmania and applied for positions in Hobart, Launceston and the North West. Following up with the DHHS after being unsuccessful, she was advised that while her grades were good, they were not as good as other applicants. Anna worked interstate as a physio for a number of years before recently returning to Hobart, with her husband, but is no longer working as a Physiotherapist.

Conclusion: Given the age structure of our population and the rate of ageing, demand for occupations in the allied health professions will increase significantly, in a short time period. Regardless of whether or not our young people receive a scholarship to study interstate, we should be ensuring that there is a process in place to provide placement training and employment opportunities to Tasmanians wishing to return home.

Importantly, any strategy should not be limited to those in the allied health professions, but any occupation where education and/or training is not provided here.

Skill shortages on a personal note

2010-06-10T14:32:00.002+10:00

I have been making a noise about skill shortages in Tasmania since 2004, but now it has gotten personal. My son Rory was born with a cleft palate and conductive hearing loss. At six months he was supposed to have surgery to repair the cleft and insert grommets to (hopefully) fix his hearing, not only did we ‘slip through the cracks’ once, but we had the surgery cancelled 20 minutes before scheduled due to staff shortages and not enough skilled nursing staff to provide the level of care he would need post-op. Further investigation revealed that the Royal Hobart Hospital is incredibly short of paediatric intensifists with almost 100% turnover. Since Rory was born he has seen, many ongoing, a paediatrician, sonographer, audiologist, plastic surgeon, ear nose and throat surgeon, osteopath, physiotherapist, speech pathologist, orthotist, radiographer, GP and clinic health nurse. The majority of these occupations are not educated in Tasmania and I am indescribably thankful that these wonderfully professional people have all chosen to live and work in Tasmania. Rory has since had his surgery, and four weeks in things are looking up.

Industry Life Cycles

2010-04-14T15:10:00.000+10:00

Much like product life cycles, industries experience a similar cycle of life, capturing the way many industries evolve through their formative eras, growth and patterns of maturity. Just as a product is developed, introduced to the market, adopted, grows, matures, and eventually experiences decline, so too do industries. The stages are the same for all industries, yet industries cycle through the stages in various lengths of time. Even within the same industry, various organisations may be at different life cycle stages. Strategies of an organisation as well as of competitors vary depending on the stage of the life cycle. Some industries need to make strategic decisions during the maturity phase to extend the life, and even find new uses for declining products, thus extending the life cycle.

The growth of an industry's sales over time is used to chart the life cycle (see right).

The distinct stages of an industry life cycle are: introduction, growth, maturity, and decline.

Important to note is that the life cycle model assumes that an industry is clearly distinguishable, however in many instances emerging industries are hard to define, and often appear as segments of established industries.

Overview:
Industries begin in a period of fragmentation as companies experiment with different approaches. With time, a scalable approach emerges as a dominant model, often because it yields greater efficiencies than available alternatives. As the dominant model develops, an industry goes through a shakeout as unaligned organisations are forced to exit. Eventually, organisations find it difficult to improve their productivity on the dominant model at high rates, volume growth hits a point of diminishing returns, and the industry enters maturity. Ultimately, as volumes drop because of saturated demand, exhausted supply or uncompetitive environments, the industry moves into decline.

Each of the phases carries implications for how organisations organise, compete and exploit technical progress. The emergence of a dominant model is critically important to industry evolution because these models generate opportunities to achieve economies of scale and scope. Industries eventually enter a mature phase in which volume growth slows down because organisations hit the limits of technical opportunity in the dominant model. Organisations often shed activities that could be subcontracted efficiently, and pared down product lines to enhance efficiency incrementally. An industry moves into decline when aggregate sales volume drops. Avoiding a war of attrition becomes a major strategic imperative. Inefficient organisations may diversify out of the industry and may seek to consolidate.

Introduction
In the introduction stage of the life cycle, an industry is in its infancy. A new, unique product or service offering may have been developed and patented, thus beginning a new industry. At this stage, an organisation may be alone in the industry. It may be a small entrepreneurial company or a proven company which used research and development funds and expertise to develop something new. Significant financial investment is undertaken at this stage of the life cycle, often without financial reward. Organisations attempt to establish a niche for dominance within an industry during this phase by establishing early perceptions of product or service quality, technological superiority, or advantageous relationships with vendors within the supply chain to develop a competitive advantage.

Growth
During the growth phase more organisations identify opportunities within the industry. The industry experiences more product standardisation at this stage, which may encourage economies of scale and facilitate development for production efficiency. The key issue in this stage is market rivalry. Because there is industry-wide acceptance of the product, more new entrants join the industry and more intense competition results. The duration of the growth stage, as all the other stages, depends on the particular industry. During the growth stage, the life cycle curve is very steep, indicating fast growth, however financial investment remains a significant requirement to facilitate this growth through such activities as marketing, property, plant and equipment investment and ongoing product development (R+D).

Maturity
As the industry approaches maturity and demand for the product or service lessens, the industry life cycle curve becomes noticeably flatter, indicating slowing growth, however profit margins may continue to increase. In mature industries, there are usually fewer organisations, and those that survive will be larger and more dominant. Organisations may compete on quality to separate their product from other lower-cost offerings, or conversely the organisation may try a low-cost/low-price strategy to increase the volume of sales and make profits from inventory turnover.

Decline
Declines are almost inevitable in an industry. If product innovation has not kept pace with other competitors, or if new innovations or technological changes have caused the industry to become obsolete, sales suffer and the life cycle experiences a decline. In this phase, sales are decreasing at an accelerating rate, causing the plotted curve to trend downward. There is usually another, larger shake-out in the industry as competitors who did not leave during the maturity stage now exit the industry. Yet some organisations will remain to compete in the smaller market. Mergers and consolidations will also be the norm as organisations try other strategies to continue to be competitive or grow through acquisition and/or diversification.

Prolonging the life cycle
The life of an industry or organisation can be prolonged through strategic efforts to maximize profits through increasing efficiencies. Management efficiency can help to prolong the maturity stage of the life cycle. Production improvements, like just-in-time methods and lean manufacturing, can result in extra profits. Technology, automation, and linking suppliers and customers in a tight supply chain are also methods to improve efficiency. Alternatively, the strategy may be to differentiate the product or service offering based on quality. Research indicates that those industries and organisations that survive longer are those that are the most strategic, forward thinking and innovative for the duration of the life cycle, often with ongoing and superior commitments to research and development, post entry into the market. In addition, it is those organisations that innovate and develop an industry (early entrants) that tend to survive longer than later entrants to the market. However, it is also important to note that it is the structure of demand which is just as important to industry success as innovation and technological capability.

Conclusion
Many of the large organisations that have closed their doors, or scaled down operations, in Tasmania in recent years have been in the traditional, predominantly manufacturing, industry sectors and generally owned by national or multinational companies. While regarded as ‘institutions’ of the regions in which they were located, it is this length of time of establishment which has contributed to the ultimate closing of the plants in Tasmania. Each has been in the maturity phase of the industry life cycle, and essentially the strategic approach by management has been to increase efficiencies and prolong the industry/organisation by reducing costs and consolidation.

Examples of the issues faced by these companies have included:

• Inability to maximize economies of scale

• Decentralised industry/organisation

• Increased operating costs

• Increasingly uncompetitive due to labour costs and geographical location

• Declining demand

• Lack of ongoing investment in research and development, skills and plant and equipment

• Requirement to innovate and differentiate product offering

• Ageing infrastructure

• Lack of skill base

Wish list for the new Government
Based on the discussions above and to ensure ongoing economic growth and employment opportunities for Tasmanians, the following is a wish list for our newly elected government to consider.

• Cease propping up businesses in the maturity/decline phases of the industry life cycle

• Proactively encourage investment in industries that take advantage of Tasmania’s competitive and comparative advantages

• Support the investment in research and development for Tasmanian based companies in priority industry sectors

• Provide a competitive business environment

• Assist industries/organisations strategic development and capability to adapt in the face of change

• Work with industry, employers and unions to ensure that workers are undertaking ongoing skill and workforce development to enable transfer between industry sectors

• Provide post year 10 education and training aligned with industry needs that will enable Tasmanians to secure employment into the future.

Times are changing...

2008-12-17T17:30:00.000+11:00

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.

Women and Work

2008-12-02T11:08:00.002+11:00

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.

Job seeker resource document

2008-11-25T15:24:00.002+11:00

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.

Reinvent your Career Expo Outcomes

2008-11-07T13:41:00.000+11:00

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

2008-11-07T13:40:00.000+11:00

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

2008-11-07T10:16:00.001+11:00

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.

ANZ Job advertisement series

2008-11-03T13:21:00.002+11:00

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.”

interstate perspective of tasmania

2008-10-31T12:11:00.007+11:00

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.

dont't forget to plan for the future

2008-10-20T08:52:00.004+11:00

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.

the issues with interstate migrants

2008-10-13T16:53:00.002+11:00

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?

Collaboration: Education and training providers and industry

2008-10-08T10:19:00.001+11:00

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.

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

2008-10-07T17:57:00.003+11:00

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

2008-10-07T17:50:00.001+11:00

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.

discrimination against the 'over-qualified'

2008-10-03T09:55:00.002+10:00

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.

what is meant by 'training capacity'?

2008-09-24T09:24:00.004+10:00

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.

How about this to attract skills?

2008-09-19T08:19:00.008+10:00

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?

2008-09-19T08:19:00.005+10:00

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.

what is innovation?

2008-09-18T12:53:00.006+10:00

"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

2008-09-18T12:53:00.003+10:00

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.

unemployment rate less than the national average!

2008-09-11T12:11:00.004+10:00

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.

Occupational Skills Shortage Analysis Report

2008-09-08T10:13:00.001+10:00

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

The realities of skill and labour shortages - an industry perspective

2008-09-05T13:20:00.003+10:00

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

2008-09-05T13:05:00.003+10:00

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?

ABS Population Projections

2008-09-04T16:45:00.004+10:00

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/

New state government grant program - Workforce Participation Program

2008-09-02T14:09:00.003+10:00

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

impressive job advertisement

2008-08-29T09:31:00.003+10:00

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.

an interesting day...

2008-08-27T14:49:00.003+10:00

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/

media awash with skills issues

2008-08-26T10:43:00.002+10:00

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???

how to win a war

2008-08-22T16:07:00.003+10:00

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.

stunned

2008-08-20T13:37:00.002+10:00

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).

Another Employer of Choice Breakfast... but refreshingly different

2008-08-19T11:59:00.004+10:00

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.

Accentuate the positive, eliminate the negative – Tasmanian workplace practices

2008-08-18T12:31:00.000+10:00

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?

The opportunity cost of working in Tasmania

2008-08-15T08:35:00.001+10:00

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?

Tasmania's population debate

2008-08-13T08:54:00.003+10:00

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.

Where are the opportunities for Tasmania’s youth?

2008-08-12T09:28:00.005+10:00

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