Transcript Slide 1

Broad context…
• Increasing integration of world’s economies
resulting in changes in competitiveness
• Emergence of BRIC economies
• Accelerating technological innovation
• Increased pressure to improve environmental
outcomes and more sustainable resource use
• Ageing population
Current Forces
The World
Class Skills for World Class
Industries Report….
• Analyses the perspectives of employers on the
current state of skilling in Australia
• Develops an understanding of future skilling
needs
• Provides a set of strategic policies to impact on
skilling
The centrality of skills …
 The Report highlights that skills are seen as
integral to competitiveness.
 There are three main implications for skilling:
the need for higher level skills
the need for a broader range of skills
skills need to be updated more often
The importance of skills…
STRATEGIES FOR REMAINING COMPETITIVE OVER THE NEXT
THREE YEARS
Strengthening growth opportunities
93
Building the skills base
85
Introducing new products and services
80
Upskilling existing and older staff
79
Building strong supply chains
78
Introducing new technology and processes
78
Being lean (driving down costs)
78
Benchmarking company performance
70
Securing export markets
40
Developing offshore production facilities
19
0
10
20
30
40
50
60
70
Per cent of sample agreeing
80
90
100
What do firms look for in their employees….
95
96
Flexible and adaptive
95
95
Willing to learn on the job
94
96
T eam workers
94
94
93
95
T echnically competent
Committed to excellence
Good communicators
88
Appropriately experienced
87
88
92
86
Multi-skilled
84
Committed to the company
56
Have formal qualifications
Comparable with the best
in the world
IT proficient
55
36
30
92
90
62
67
55
40
50
Now
60
70
Per cent of sample
80
In 3 years
90
100
Skill shortages a major threat to
competitiveness …
BARRIERS TO COMPANY SUCCESS OVER THE NEXT THREE YEARS
Inabilty to secure skilled staff
74
High cost of skilled labour
70
Competition from low
cost countries
63
Competition from domestic
producers
59
Insufficient labour flexibility
57
Insufficient domestic
market growth
47
Inability to retain skilled
staff
46
Poor innovation culture
23
Inability to secure export
markets
20
0
10
20
30
40
50
Percent of sample agreeing
60
70
80
Skills in demand: where the skills
shortages are…
DIFFICULTIES SECURING SKILLS (BY TYPE OF EMPLOYEE)
IN THE LAST 12 MONTHS
T rades
T echnicians and paraprofessionals
Engineering professionals
Apprentices and trainees
64
48
46
36
Managers
Labourers and process workers
Other professionals
Clerical and administrators
IT professionals
0
36
35
26
19
15
10
20
30
40
50
Per cent of sample agreeing
60
70
Impact of skill shortages
IMPACT OF SKILL SHORTAGES ON BUSINESS
Higher overtime levels
72
Added costs to production
67
Reduced productivity
63
Production delays
58
Reduced staff morale
56
Damage to the industry overall
49
Work needs to be outsourced
47
Lost contracts
35
0
10
20
30
40
50
60
Per cent of sample agreeing
70
80
Higher skilled jobs……….
Managers and administrators
% of total employment
7.85%
Growth in past 2 years
1.07%
Associate professionals
% of total employment
Growth in past 2 years
Professionals
% of total employment
Growth in past 2 years
Tradespersons and related workers
% of total employment
12.61%
Growth in past 2 years
(0.16%)
19.18%
0.76%
12.7%
0.24%
Lower skilled jobs……….
Advanced clerical, sales & service workers
% of total employment
3.87%
Growth in past 2 years
(0.17%)
Intermediate production & transport
workers
% of total employment
8.48%
Growth in past 2 years
(0.22%)
Intermediate clerical, sales & service workers
% of total employment
16.35%
Growth in past 2 years
(1.03%)
Elementary clerical, sales & service workers
% of total employment
10.25%
Growth in past 2 years
(0.09%)
Labourers and related workers
% of total employment
8.7%
Growth in past 2 years
(0.16%)
Qualifications for jobs and the qualification
profile…
Potential qualifications pathways for jobs
•
•
•
Jobs that currently and potentially have a
university pathway
Jobs that currently and potentially have
a VET pathway
Jobs not requiring qualifications
Current qualifications profile of the population
•
•
•
University qualifications
VET qualifications
No qualifications
% of employment
24.0
62.3
13.7
% of 15-64 pop.
20.0
29.9
50.1
Action to overcome skills shortages
ACTION TO OVERCOME SKILL SHORTAGES NOW AND IN THREE YEARS
Employers signal a step-up in their
efforts to meet skill needs …
FORMAL AND INFORMAL LEARNING, AUSTRALIAN COMPANIES,
NOW AND IN THREE YEARS, PER CENT OF TURNOVER
New products & processes - Australian
Companies 2005
NEW PRODUCTS AND PROCESSES, AUSTRALIAN COMPANIES, 2005
Per cent of annual turnover
Per cent of annual turnover derived from
•
New products & services (introduced in last three years)
10.4
Per cent of annual turnover spent on:
•
•
•
•
New technology
Research & Development
Skills Acquisition & Training
Environmental Management
Source: Survey of Australian employers 2005
5.2
4.2
4.0
2.5
Barriers to upskilling
BARRIERS TO UPSKILLING EMPLOYEES
T raini ng c an't be ac c ommodated
around work demands
Ins uffi c ient fi nanc i al inc enti ves
from government
Ins uffi c ient experi enc ed peopl e
to ac t as trainers or mentors
56
52
43
Ins uffi c ient ti me to pl an and
c o-ordinate training
42
41
T raini ng i s not s uffic iently fl exibl e
Lac k of unders tanding of s ki ll
defi c ienc ies among empl oyees
37
Diffic ul ty in retaining s taff after
traini ng
36
Relevant traini ng not avail abl e
34
E mployee res i s tanc e
34
T raini ng i s too expens ive
34
A dmini s trative l oad/paperwork is
too demanding
Uncertai n what is required to meet
future needs
0
30
25
10
40
30
20
P er cent of sample agreeing
50
60
What needs to be done?
 Australia not yet skilling in a world class way.
 The responsibility for change is shared
between:
–
–
–
–
–
employers
individuals
employer groups
providers
governments