The Changing Nature of the Workplace

Paul Baker – NSW Government Social & Infrastructure Sector

TMP/Hudson Global Resources

No Relief in Sight

Source: 2003 World Development Indicators

Projected Average Annual Labour Force Growth Rates1999-2010

0.9

0

0.8

00.10.20.30.40.50.60.70.80.91

United States Europe Australia/ NewZealand

Labour Force Growth will Slow to a Crawl

Data: Watson Wyatt Worldwide 2003

Compound Annual Labour-Force Growth Per Decade

0.8

1.7

2.6

1.6

1.2

0.8

0.40.2 0.3 0.2 0.2

0

0.5

1

1.5

2

2.5

3

Declining Employee Tenure

1/3 in Jobs less than 2

Years

2/3 in Jobs less than 5

Years

½ Employed on Interim or

Contract BasisSource: U.S. Department of Labor (BLS) Employee Tenure Surveys, 2003

05

10152025

50's 60's 70's 80's 90's 00'sDepressio

n Survivors

Pension Seekers

Victims “Free Agent

Nation”

Free Agents:

Australia has a Number of Unique Characteristics

The most significant change in the Australian labour market in the past decade has been the trend to contracting/ casual work.

8M……… Australian Workers

6M……... “Permanents”

2M.…….. “Contractors/ casuals” growing at

20% per annum

Contracting in the USA is double that of Australia. If trend continues then by 2015 the majority of Australian workers will be contractors/ casuals.

Powerful Forces Drive Human Capital Pressures

Human Capital

RetiringBaby Boomers

Globally DeployedWork Force

More TransientLabor Pool

Shortening TechnologyLife Cycles

Acute Shortage of Skilled Workers

Movement to Knowledge Economy

Human Capital Drives Corporate

The Changing Individual Work Paradigm-The Workplace in 2010

Employee will go to the place of employment - some days they will work at home.

The employee wont have a permanent desk.

The employee will work collaboratively with a team.

Each team will have a project manager.

The employees team mates will all be professionals in a variety of fields.

Some of the team will be focused on delivery and customer services.

Others in the team are customers.

Some are permanent employees, some will be contractors.

No one has a job or a job description.

The team will have a sponsor who won’t manage in the way of the nineties.

Each team will have a developmental adviser.

The Changing Individual Work Paradigm

The roles in the team will include technical expertise, some team facilitation, budgeting, purchasing, training, customer relations etc

The individual is accountable for results and for their contribution to the team. Compensation will be variable.

Based on: Is the employee achieving their goals, the teams contributions to the organisation profitability.

The Changing Individual Work Paradigm

The individual will be measured on whether they are growing!

Several feedback mechanisms

The Changing Individual Work Paradigm

The employee will be expected to manage

his or her career continuously.

Career progress will not be measured by

promotions or moving up.

Career will take new shapes and will

rarely be linear.

The Changing Individual Work Paradigm

The Changing Individual Paradigm

Old Paradigm

Paternalistic

Development owned by managers

Defined career paths

Secretive plans for top employees

Organisation information not shared

Compensation rewards upward moves

New Paradigm

Empowering

A partnership for employee development

Multiple ways to move, or grow in place

All employees involved in own development

Open information about company goals, needs and HR systems.

Compensation rewards ones contribution

The Labour Market Employment Trends

There are several different types of labour markets (LM’s) all operating at the one time:

International

National

State

Regional

Local

(http://www.myfuture.edu.au)

The Labour Market Employment Trends

Overlaying LM’s. There are also:

School Leaver

Teenage and

Adult labour markets

And other “niche” LM’s, which are sometimes referred to as “boutique” labour markets.

The LM is dynamic with over 1.8M Australian workers changing their job for another job each year

Significantly different labour markets in areas outside of the major capital cities…. perhaps more prominent outside of the Sydney/ Melbourne labour markets

Regional non - metropolitan labour markets with marked differences in their base characteristics

Distance…. which also expresses itself in dependency on transport and accommodation

Relatively high levels of both youth and adult long term unemployment

Australia has a Number of Unique Characteristics

A Snapshot of “Shifting” Demand

From Manufacturing and Goods To Service Industries….. (Those who provide services to others)

From large companies of 500 or more employees to smaller companies/ self employment

Increasing number of women combining work/ career with raising a family

More flexible work schedules; more than one job with more frequent job changes and a relatively shorter time in each job

Increasing “credentialism” without an apparent corresponding increase in the nature of the job. Qualifications get you to the starting line. Achievement/ outcomes (experience) not qualifications increasingly the new currency for career progression.

Areas in Demand

The Labour Market - A Framework

Technologists - Degree/Post Grad

Technician - Diploma/Assoc Dip/Post Trade

Trade/High level Skill

Operative - Semi and unskilled

Areas in Demand

Job Growth in all areas of the LM except the unskilled/semi skilled areas

Fixed period, Contracting, P/T and casual jobs account for most of this increase across all levels of the LM

Increasing numbers of people eventually entering Job areas outside their initial area

Areas in Demand

School Leaver Labour Market – Overview NSW

NSW School Leavers

60% Attending a Tertiary Institute

40% Not attending a Tertiary Institution

37%Attending Full-time

21%AttendingPart-time

13%Employed

20%Employed

31%Employed

Areas in Demand

School Leavers - Employment by Industry

Retail 30%…..large p/t component

Finance 15%

Recreation 15%…..Hotels, Restaurants, Clubs and other Hospitality

Manufacturing 12%…..Trades/Traineeships

Community Service 10%…..Public Sector, Health, Local Government

Other 18%…..Agriculture, Transport, Utilities, Communications

Jobs/ Careers Which Create Their Own Demand

Actors, singers, musicians, artists, writers, wood carvers, fashion designers, Chefs, linguists, etc

Entertainers and celebrities

Television, Film and Radio..…Presenters, producers, directors, scriptwriters, camera and other production specialists

Specialised Professionals in medicine, finance, IT, oil/gas, construction, science,engineering, design etc

The Labour Market – Skills and Competencies

Traditional hierarchical career paths are no longer appropriate for individuals

Chaos - (Downsizings/ Upsizings/ Re-invention) stands side by side with the individuals need to “get on with it”

Rather than the analogy of the vertical step ladder perhaps the new child's playground ladder which goes “every which way” is a more appropriate concept

Theories in career management are emerging which focus more upon management of oneself in unstable, deregulated and chaotic work environments

The ability to adapt, change, re-invent oneself with a capability to “walk the talk” and “get the job done” (achievement in the work environment)

The Labour Market – Skills and Competencies

Self Employed – Nomads, Globalist’s and Entrepreneurs need skills in:

Selling (how to drum up business)

Finance (to win the bank loan, investment/ venture capital)

Technology

Just as the Industrial Revolution brought people together in workplaces the information revolution is pulling people apart

Work at home

Temporary work sites/ frequent changes

Project based

Balancing one’s lifestyle

The Labour Market – Skills and Competencies

Common traits are: Savvy

Self confidence

Mobility

Flexibility

Willingness to take a risk

Achievement/ outcome oriented

Self sufficiency

Ability to constantly reinvent oneself

Job Seeking Skills – For School Leavers

Need to be on the same level and intensity for all other job seekers in order to compete in the deregulated LM

Requires the school leaver to acquire higher levels of job search and interview competencies

Highly commend the “School To Work Plan” introduced by the VET in Schools Directorate of the NSW Dept Education and Training.