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WORKFORCE PLAN 2013-2017 Version 1.0 June, 2013

of 20 | Workforce Plan v20130617 0843 (Final).docx

CONTENTS

1 PILBARA REGIONAL COUNCIL – WORKFORCE PLAN 2013-2017 .................................................................................................................................... 4

1.1 INTRODUCTION ................................................................................................................................................................................................................ 4 1.2 WHAT IS WORKFORCE PLANNING? ................................................................................................................................................................................. 4

2 INTERNAL WORKFORCE ..................................................................................................................................................................................................... 5

2.1 SITUATIONAL ANALYSIS ................................................................................................................................................................................................... 5 2.2 STAFF DEMOGRAPHICS ................................................................................................................................................................................................... 6 2.3 STAFF RETENTION ............................................................................................................................................................................................................ 9 2.4 FINANCIAL ANALYSIS ....................................................................................................................................................................................................... 9 2.5 ASSESSMENT OF THE WORKFORCE ................................................................................................................................................................................ 9

3 EXTERNAL WORKFORCE .................................................................................................................................................................................................. 10

3.1 SITUATIONAL ANALYSIS ................................................................................................................................................................................................. 10 3.2 AN AGING WORKFORCE ................................................................................................................................................................................................ 10 3.3 AVAILABILITY OF LOCAL STAFF ..................................................................................................................................................................................... 10 3.4 SKILLS SHORTAGE .......................................................................................................................................................................................................... 10 3.5 IMPLICATIONS ................................................................................................................................................................................................................. 11

4 STRATEGIC COMMUNITY PLAN WORKFORCE REQUIREMENTS .................................................................................................................................. 12

4.1 SUPPLY DEMAND ANALYSIS ........................................................................................................................................................................................... 12 4.2 RISK .................................................................................................................................................................................................................................. 12


4.3 STRATEGIES TO MEET FUTURE WORKFORCE REQUIREMENTS ................................................................................................................................... 14

5 SECTION 4: MONITORING AND EVALUATION ............................................................................................................................................................... 15

5.1 KEY PERFORMANCE INDICATORS ................................................................................................................................................................................. 15

6 APPENDIXES ...................................................................................................................................................................................................................... 16

6.1 APPENDIX A ..................................................................................................................................................................................................................... 16 6.2 APPENDIX B ........................................................................................................................................................................................................................ 18 6.3 APPENDIX C – PRC RISK MATRIX .................................................................................................................................................................................... 19


1 PILBARA REGIONAL COUNCIL – WORKFORCE PLAN 2013-2017 1.1 INTRODUCTION

Workforce Planning is defined as “a continuous process of shaping the workforce to ensure that it is capable of delivering organisational objectives now

and into the future” (Australian National Audit Officer, 2004). Workforce

planning has become an important part of local government operations as councils needs to know they have the capacity and capability to deliver on

strategies, plans, programs and key services and anticipate the workforce requirements to meet future strategic goals.

The Pilbara Regional Council Workforce Plan (2013-17) will help us plan our

human resource requirements for the next four years.

1.2 WHAT IS WORKFORCE PLANNING?

Workforce planning identifies the human resources and skills required to deliver on the medium to long-term strategic direction of our stakeholders, as outlined

in our Strategic Community Plan. This Workforce Plan outlines a number of

strategies that we must implement to ensure that we have the appropriate resources in place, now and into the future.

The Workforce Plan is also an essential component of the Corporate Business Plan (CBP), which identifies workforce requirements and strategies for current

and future operations over the next four years.

This Workforce Plan:

• Profiles the current PRC workforce;

• Assesses the impact of the external workforce on the PRC current and future workforce;

• Identifies the implications of the Strategic Community Plan outcomes and strategies on the current and future PRC workforce;

• Outlines strategies for addressing the implications; and

• Sets out how the delivery of this Workforce Plan will be monitored.


2 INTERNAL WORKFORCE 2.1 SITUATIONAL ANALYSIS

PRC currently employs three members of staff, which are supported by a number of external providers. The Figure below outlines the organisational structure of PRC:

Regional Council

Lynne Craigie (Chair)

Project Administrator

Melody Pia

Administrative Assistant

Vacant

Records

Shannon Craigie

Chief Executive Officer

Tony Friday External Service Providers


2.2 STAFF DEMOGRAPHICS

Pilbara Regional Council employs 2 females and 1 male.

The Figure below outlines the distribution of females to males at PRC:

The Figure below outlines the employment types within PRC:

-2 -1 0 1 2 3

26-35 yrs

36-45 yrs

Number of Employees

Age

Gro

up

Female Male

0

0.5

1

1.5

2

2.5

Full-time Part-time


The Figure below outlines the qualifications of employees at PRC:

The Figure below outlines the location of the PRC workforce:

0

1

1

2

2

3

Formal education

Certificate / Diploma

0

0.5

1

1.5

2

2.5

3

3.5

Perth Office Remote


The Figure below outlines the current length of service for all PRC employees:

The Figure below outlines the qualifications of PRC employees:

0

0.5

1

1.5

2

2.5

Less than 2 years

Between 2 and 5 years

More than 5 years

Less than 2 years

Between 2 and 5 years

More than 5 years 0

0.5

1

Formal education

Specific position related external courses

None

Formal education

Specific position related external courses

None


2.3 STAFF RETENTION

Over the past two years, PRC has experienced a workforce turnover ratio of

200% due to strategic realignment with the PRC’s focus according to member councils.1

2.4 FINANCIAL ANALYSIS

PRC has spent approximately $240,000 of its operating budget on employee

costs. This represents less than a quarter of overall expenses.

Year Employee Costs % of Total Budget

2012/13

(Budget)

$243,932 3.3%

2011/12

(Budget)

$224,205 4.5%

PRC has budgeted in the 2012/2013 $5,000 for staff other expenses and $5,000 for conferences and training.

1 Turnover ratio is defined as the ratio of the number of employees who leave the organisation, either voluntarily or involuntarily, to the total number of people of staff.

2.5 ASSESSMENT OF THE WORKFORCE

With such a small organisation like PRC, there is significant organisational risk

with a high turnover that corporate knowledge will be lost in the event of an unexpected or sudden resignation / loss of employee. However it is not

expected that the high workforce turnover ratio will continue.

Operations within PRC are highly centralised, which provides for efficient processes and greater organisational cohesion.

Staff resources are supported by external expertise by the use of external service providers.


3 EXTERNAL WORKFORCE 3.1 SITUATIONAL ANALYSIS

It is widely acknowledged that the national and international workforce is changing. Changes in

the national and state demographic profile, growth

of the mining sector, skills shortages, emerging, and international economic uncertainty add to the

challenges of workforce planning. The local government sector employs approximately

178,000 people nationally, however, local

governments are finding attraction and retention of employees increasingly challenging. There are

three influences that will have a major impact on PRC and its member councils’ operations,

including:

• An aging workforce;

• Availability of local staff; and

• Skills shortages.

3.2 AN AGING WORKFORCE

Across Australia, there are a large number of ‘baby boomers’ who are nearing retirement.

While PRC is not directly affected by this

significant influence, its member councils are. As more of the local government workforce retires,

the more experience, knowledge, and experience

will be lost, unless dramatic action is taken. Local governments (through the advice of PRC) could

suggest to older employees that they elect to move to part-time work and a phased retirement,

rather than complete cessation of duties.

Strategies to encourage young workers to consider careers in local government may also be a key

feature of Workforce Plans across the region.

3.3 AVAILABILITY OF LOCAL STAFF

The PRC Office is based in Perth, Western Australia, and is well positioned to attract and

retain suitably qualified staff. According to the Department of Education, Employment and

Workplace Relations, labour market conditions in

Perth are stronger than those for Australia overall. Please see Appendix A for further details.

3.4 SKILLS SHORTAGE

With the onset of the mining boom in 2001, Western Australia experienced a sudden, and

exponential tightening of the labour market.

Professional and trade occupations proved the most difficult fields of recruitment, and local

governments, particularly those in the Pilbara Region, have been significantly affected. In direct

competition with resource companies, local

governments in the Pilbara have been forced to offer exuberant employment packages to secure a

reliable employment base.

Skills shortages and the resultant difficulty in

recruiting staff with specific skill sets has, and is

expected to continue, fluctuating within and between states, and in regional and metropolitan

areas. Please see Appendix B for further information.


3.5 IMPLICATIONS

The above factors are particularly cognisant for

PRC member councils who often have a large employee base, and are located in a regional area

of Western Australia. Availability of local staff is

arguably the most important influence for PRC,

and is highly dependent on the strategic priorities of its member councils. For instance, if PRC

member councils endorse PRC facilitation of a new

bureau service to be based in Perth, PRC will be

forced to recruit staff within the constraints

identified above.


4 STRATEGIC COMMUNITY PLAN WORKFORCE REQUIREMENTS This section specifically deals with what workforce resources are required for delivering our Strategic Community Plan. This section will also help answer what gaps in

knowledge and skills, positions, and employees currently exist in the workforce that will need to be reduced or removed to achieve our vision.

4.1 SUPPLY DEMAND ANALYSIS

The Table below outlines the Supply / Demand Analysis that has been undertaken to identify and analyse gaps in the PRC workforce in relation to the strategic objectives identified in the Strategic Community Plan:

Key Outcome Area

Current Posit ion Future Posit ion Gap

Bureau Services Number of staff static to delivery services currently provided Growth in Services will require significant increase in staff

with specific operation skills

Potential staff

skill sets

4.2 RISK

PRC has identified the following organisational risks relating to workforce. A Risk Review has recently been undertaken, and PRC has a functioning Risk Management Framework (Appendix C).

Context Risk Description Causal Factors Potential Outcomes Existing Controls Risk Rating

HR Failure to adequately

protect health and

Lack of policy, lack of Staff placed at risk of injury Policy support, regular scheduled 7


wellbeing of staff adherence to policy policy refresh for all staff

ICT Ineffective information

systems

Lack of internal capability,

budget constraint

Loss of information,

inefficiency due to systems

ICT outsourced to extenal

provider(s)

6

Strategy Ineffective organisational

development

Lack of internal capability, capacity constraint,

budget constraint

Council incurs 'opportunity cost' of inefficiencies

CEO and staff ongoing professional development

8

Strategy Strategic outcomes not

achieved

Lack of internal capability,

capacity constraint,

budget constraint

PRC exposed to regulatory

and reputational risk

Adherence to DLG integrated

planning framework

9

Operations Loss of premises and/or

facilities

Catastrophic event Inability to conduct business

of Council for a period of time

Insurance, business continuity plan 5

Operations Loss of key staff Overwork, remuneration, culture

Loss of key knowledge, inability to conduct the

business for a period of time

Capture and documentation of all key procedures and processes,

central password vault

11

Compliance Failure to meet financial obligations

Lack of internal capability or knowledge, capacity

constraint

PRC exposed to regulatory and reputational risk

Executive notification system, compliance calendar, 3rd party

oversight

8

Operations Failure to manage assets

adequately /

appropriately

Lack of internal capability

or knowledge, capacity

constraint

PRC exposed to regulatory

and reputational risk

Adherence to DLG integrated

planning framework, policy

support, small asset base

5


4.3 STRATEGIES TO MEET FUTURE WORKFORCE REQUIREMENTS

The strategies listed below are designed to mitigate and manage the internal and external pressures facing PRC.

Management of Workforce

Management of the workforce focuses on identified critical roles, specifically the

skills make that role critical, and seeks to ensure there is current and future

capacity for these to be filled with appropriately skilled in-house staff.

Activit ies:

• Review businesses processes to determine if there are more effective ways to deliver services and train staff accordingly

• Implement staff development strategies and training aimed at staff having the skills to deliver the Strategic Community Plan and Corporate Business Plan.

• Promoting ability in staffing by redesigning roles, introducing flexible working options and better management and use of contract workforce.

Promoting local government as employer of choice

Poor community perceptions and lack of community understanding of the role

of local government may need to be addressed through outreach programs

targeted at students, residents, EEO groups and businesses.

Activities:

• Promoting flexible and family-friendly work practices, scholarship programs, graduate development programs, internships and traineeships to wider employment market

• Ensure all attraction and retention programs demonstrate career paths available to employees

Non-tradit ional labour pools

Non-traditional labour pools can include women, indigenous people, carers,

single parents and migrants. Initiatives relating to these groups can be found in workplace equity and diversity. PRC has considered many of these options, and

is likely to continue developing recruitment strategies which encourage these groups to apply for positions.


5 Section 4: Monitoring and Evaluation This section will ensure we are tracking well against implementation of our Strategic Community Plan. Here, we outline the key Performance Measurement Indicators

that will provide an opportunity to hold us accountable. The impact of the strategies and actions outlined in this Plan are monitored and reported each year through our Corporate Business Plan and Annual Report. As a minimum, Council will undertake a full review of this Plan every four years.

5.1 KEY PERFORMANCE INDICATORS

Indicator Measure Current Target

2013/14 2014/15 2015/16 2016/17

Recruitment, retention and selection processes are

efficient and effective

Workforce turnover ratio

100% 0 0 50 0

Length of time to recruit

45 - - 30 -

Employee satisfaction Employee

satisfaction survey

- >80% >80% >80% >80%


6 APPENDIXES 6.1 APPENDIX A

The table below shows a lower unemployment rate in Perth (as defined by Employment Service Areas) compared to the Australia average (4% and 5%, respectively), and a higher workforce participation rate (79.1% and 76.7%, respectively).

Labour Market by Profile, Pilbara vs Perth vs Australia

Pi lbara Region Perth Austral ia

Adult population (15+) 52,634 1,376,599 18,098,642

Annual % change 2009-10 3.5% 2% 1%

Employment 28,350 929,900 11,440,600

Annual % change to Sept 2011 2.7% 1.1 1.3%

Unemployment rate 3.5% 4 5%

Annual %pt change to Sept 2011 1.8% -0.4 pts 0.1 pts

Participation rate (15-64) 57.3% 79.10% 76.6%

Annual %pt change to Sept 2011 0.7% -0.4 pts 0.3 pts


Source: Australian Bureau of Statistics, cat. no. 6291.0.55.003, September 2011.

The Figure below shows the unemployment rate for Perth is below the National rate.

Source: ABS Labour Force data, September 2011, 3 month averages

The Figure below shows employment in Perth by Industry, compared to the Australian average. It shows there are significantly more individuals involved in

the construction and mining industries in Perth than the remainder of Australia.

Source: Australian Bureau of Statistics, cat. no. 6291.0.55.003, September 2011.


6.2 Appendix B

In 2011, DEEWR conducted a survey of recruitment conditions in Australian

capital cities. Employers were asked about their single greatest concern for the next six months.

• 44% responded that recruitment difficulties were their greatest concern for the next six months.

• 28% responded that low or uncertain demand was their greatest concern.

• 9% of Perth based respondents said that they did not have any concerns for the next six months.

• The Figure below provides a snapshot of these concerns by industry (Perth), compared to all capital cities:

Source: DEEWR survey of Recruitment Conditions in Capital Cities March/April

2011.

Across all industries the Figure above shows that employers in Perth were far more likely to report that skills shortages / recruitment difficulties was their

single greatest concern for the next six months than was the case for all capital cities (44% compared with 32%).


6.3 APPENDIX C – PRC RISK MATRIX

The table below outlines PRC’s Risk Matrix that that combines the level of consequence and likelihood rating to determine the level of risk from Low to Extreme:

Risk Acceptance Criteria

The table below outlines the risk acceptance decision making criteria based on the existing control rating and level of risk that reflects PRC’s risk tolerance:

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