Post on 19-Dec-2015
Building a Business Case for Flexible Work Practices - Extract of Presentation
Presented by
Wendy Lundgaard, Director
AHRI HR Essentials Series 2008 Copyright Win-Win Workplace
Strategies P/L. All rights reserved.
3. Factors affecting labour scarcity
Fertility Rates within Australia (No. of births per woman) 1921 to 2051
1.5
1.8
2.1
2.4
2.7
3
3.3
3.6
Years1921-25
Years1932-34
Years1946-48
Years1953-55
Years1960-62
Years1970-72
Years1980-82
Years1990-92
Year1998
Year2005
Year2006-51
Years (from 2006 - 51 are projections only)ABS: Births - 3301.0 - 1998
Fert
ilit
y R
ate
s
Current labour entrants: 170,000 per annum .
By 2020: 125,000 for the entire decade or 12,500 pa = growth almost stops! (Source: Access Economic, 2002)
Replacement level (2.1)
Businesses reporting labour shortages: 30% affected
0
5
10
15
20
25
30
88 92 96 00 04 08
% of businesses nominating 'suitable labour' as a constrainton output
4
5
6
7
00 01 02 03 04 05 06 07
63
64
65
%
unemployment rate
33 year low
record high
participation rate
Labour market participation rate: Unemployment at 4%
Source: Personal Mortgage Manager National Conference: Sanctuary Cove, Feb 08
February 2008
yearsyears
3. The Labour Market
3. Workforce Landscape
• Lowest unemployment rate in 30 years - below 5% considered “full employment” (Forecast 5.5%)
• Just over 50% of workforce is employed full-time• 50% all employees work overtime – half is unpaid• 51% employees working >45 hr/w want fewer
hours(Source: ACTU in AIM’s Management Today, March 2006)
• Annual growth rate of labour market: 1.5 for past 10 years, 0.7 2005 – 2015, 0.4 in 2015 – 2025.
3. Workforce Participation (eg Vic)
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2005 2010 2015 2020 2025 2030 2035
Average of previous 20 years
Projected growth in Victoria’s working age population, 2005-2035
Source: Department of Sustainability and Environment (2004),Victoria in Future.
50%
52%
54%
56%
58%
60%
62%
64%
66%
1995 2000 2005 2010 2015 2020 2025 2030 2035
actual projected
Sources: ABS, Labour Force Australia, Spreadsheets, Cat No 6202.0.55.001 and Dawkins, Lim and Summers (2005) The impacts of population ageing on labour force participation report to the Dept Treasury & Finance.
Actual and projected workforce participation rates, Victoria 1995-2035
3. Australia’s Aging population
Median (Average Age) 50% of population younger, 50% older
Source; ABS Population Projections Australia 2004 – 2101
3. Net Migration – No solution here!
Projection – Stable levels for next 15 years, followed by modest increase 2021 to 2031
Workforce Participation Rates: Males
Compared to OECD Countries
Workforce Participation Rates: Females
Compared to OECD Countries
Strategy Options for Organisations
Do Nothing:
Fast-track into the
endangered species list!
Or
Embrace the changes necessary to evolve the business!
6. Traditional View of FWP
FWPFWP
Employer Of ChoiceEmployer Of Choice
ConditionsConditionsEmployeeAttractionEmployeeAttraction
OH&S &
Wellbeing
OH&S &
Wellbeing
Employee Benefits
Employee Benefits
Seen as part of the ‘benefits’ offering
6. Contemporary View of FWP
FlexibleWork
Practices
FlexibleWork
Practices
PerformanceProductivity
PerformanceProductivity
Talent & Succession
Mgt
Talent & Succession
Mgt
Labour Supply Pool
Labour Supply Pool
Business Strategy
Business Strategy
Skills &
Capability
Skills &
Capability
Age Management(Retirement)
Age Management(Retirement)
Workforce Planning Strategy
Workforce Planning Strategy
As a strategic
management tool
impacting
attraction,
productivity,
retention
Survival Essentials: Workforce Planning
Align STRATEGY With business plan, strategy & goals
Assess skills DEMAND Current & future demand for
resources/ capabilities/locations
Assess current SUPPLY
Identify GAPS
Evaluate Impact (Adapted from S.Melbourne,HR Monthly Oct 06)
INT: Turnover, age profile, talent EXT: labour market trends
Close Gaps, IMPLEMENTHR & Workforce Planning Strategy
(Attract, Develop & Perform, Retain)
REVIEW
Prioritise Shortfalls