Transcript Title of Project or Presentation - Win

Building a Business Case for Flexible
Work Practices - Extract of Presentation
Presented by
Wendy Lundgaard, Director
 Copyright
Win-Win Workplace
Strategies P/L. All rights reserved.
AHRI HR Essentials Series 2008
3. Factors affecting labour scarcity
Fertility Rates within Australia (No. of births
per woman) 1921 to 2051
3.6
Fertility Rates
3.3
3
2.7
Replacement level (2.1)
2.4
2.1
1.8
1.5
Years
Years
Years Years
Years
Years
Years
Years
1921-25 1932-34 1946-48 1953-55 1960-62 1970-72 1980-82 1990-92
Year
1998
Year
2005
Year
2006-51
Years (from 2006 - 51 are projections only)
ABS: Births - 3301.0 - 1998
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)
3. The Labour Market
Labour market participation
rate: Unemployment at 4%
7
%
participation
rate
Businesses reporting labour
shortages: 30% affected
30
65
% of businesses nominating
'suitable labour' as a constraint
on output
25
6
20
record
high
unemployment
rate
64
15
February 2008
10
5
5
33 year low
4
63
00
01
02
03
04
05
06
07
0
88
92
years
Source: Personal Mortgage Manager National Conference: Sanctuary Cove, Feb 08
96
00
years
04
08
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)
Actual and projected workforce participation
rates, Victoria 1995-2035
Projected growth in Victoria’s working age
population, 2005-2035
45,000
66%
40,000
64%
Average of previous 20 years
35,000
62%
30,000
60%
25,000
58%
20,000
56%
15,000
54%
10,000
52%
5,000
50%
1995
2005
2010
2015
2020
2025
2030
2000
2005
2010
2015
2020
2025
2030
2035
actual
Source: Department of Sustainability and Environment
(2004),Victoria in Future.
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.
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
Seen as part of the
‘benefits’ offering
FWP
OH&S &
Wellbeing
Employer
Of Choice
Employee
Benefits
Employee
Attraction
Conditions
6. Contemporary View of FWP
Flexible
Work
Practices
Age
Management
Performance
Productivity
(Retirement)
Skills &
Capability
Workforce
Planning
Strategy
Business
Strategy
Labour
Supply
Pool
Talent &
Succession
Mgt
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
INT: Turnover, age profile, talent
EXT: labour market trends
Identify GAPS
Close Gaps, IMPLEMENT
REVIEW
Prioritise Shortfalls
HR & Workforce Planning Strategy
(Attract, Develop & Perform, Retain)
Evaluate Impact
(Adapted from S.Melbourne,HR Monthly Oct 06)