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  1. 1. The Changing Nature of the Workplace Paul Baker – NSW Government Social & Infrastructure Sector TMP/Hudson Global Resources
  2. 2. No Relief in Sight Source: 2003 World Development Indicators Projected Average Annual Labour Force Growth Rates 1999-2010
  3. 3. Labour Force Growth will Slow to a Crawl Compound Annual Labour-Force Growth Per Decade Data: Watson Wyatt Worldwide 2003
  4. 4. 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 Basis Source: U.S. Department of Labor (BLS) Employee Tenure Surveys, 2003 Depression Survivors Pension Seekers Victims “ Free Agent Nation” Free Agents:
  5. 5. Australia has a Number of Unique Characteristics <ul><li>The most significant change in the Australian labour market in the past decade has been the trend to contracting/ casual work. </li></ul><ul><li>8M……… Australian Workers </li></ul><ul><li>6M……... “Permanents” </li></ul><ul><ul><li>2M.…….. “Contractors/ casuals” growing at </li></ul></ul><ul><ul><ul><ul><ul><li>20% per annum </li></ul></ul></ul></ul></ul><ul><li>Contracting in the USA is double that of Australia. If trend continues then by 2015 the majority of Australian workers will be contractors/ casuals. </li></ul>
  6. 6. Powerful Forces Drive Human Capital Pressures Human Capital Retiring Baby Boomers Globally Deployed Work Force More Transient Labor Pool Shortening Technology Life Cycles Acute Shortage of Skilled Workers Movement to Knowledge Economy Human Capital Drives Corporate
  7. 7. The Changing Individual Work Paradigm-The Workplace in 2010 <ul><li>Employee will go to the place of employment - some days they will work at home. </li></ul><ul><li>The employee wont have a permanent desk. </li></ul><ul><li>The employee will work collaboratively with a team. </li></ul><ul><li>Each team will have a project manager. </li></ul><ul><li>The employees team mates will all be professionals in a variety of fields. </li></ul><ul><li>Some of the team will be focused on delivery and customer services. </li></ul><ul><li>Others in the team are customers. </li></ul>
  8. 8. <ul><li>Some are permanent employees, some will be contractors. </li></ul><ul><li>No one has a job or a job description. </li></ul><ul><li>The team will have a sponsor who won’t manage in the way of the nineties. </li></ul><ul><li>Each team will have a developmental adviser. </li></ul>The Changing Individual Work Paradigm
  9. 9. <ul><li>The roles in the team will include technical expertise, some team facilitation, budgeting, purchasing, training, customer relations etc </li></ul><ul><li>The individual is accountable for results and for their contribution to the team. Compensation will be variable. </li></ul><ul><li>Based on: Is the employee achieving their goals, the teams contributions to the organisation profitability. </li></ul>The Changing Individual Work Paradigm
  10. 10. <ul><li>The individual will be measured on whether they are growing! </li></ul><ul><li>Several feedback mechanisms </li></ul>The Changing Individual Work Paradigm
  11. 11. <ul><li>The employee will be expected to manage </li></ul><ul><li>his or her career continuously. </li></ul><ul><li>Career progress will not be measured by </li></ul><ul><li>promotions or moving up. </li></ul><ul><li>Career will take new shapes and will </li></ul><ul><li>rarely be linear. </li></ul>The Changing Individual Work Paradigm
  12. 12. The Changing Individual Paradigm <ul><li>Old Paradigm </li></ul><ul><li>Paternalistic </li></ul><ul><li>Development owned by managers </li></ul><ul><li>Defined career paths </li></ul><ul><li>Secretive plans for top employees </li></ul><ul><li>Organisation information not shared </li></ul><ul><li>Compensation rewards upward moves </li></ul><ul><li>New Paradigm </li></ul><ul><li>Empowering </li></ul><ul><li>A partnership for employee development </li></ul><ul><li>Multiple ways to move, or grow in place </li></ul><ul><li>All employees involved in own development </li></ul><ul><li>Open information about company goals, needs and HR systems. </li></ul><ul><li>Compensation rewards ones contribution </li></ul>
  13. 13. The Labour Market Employment Trends <ul><li>There are several different types of labour markets (LM’s) all operating at the one time: </li></ul><ul><ul><li>International </li></ul></ul><ul><ul><li>National </li></ul></ul><ul><ul><li>State </li></ul></ul><ul><ul><li>Regional </li></ul></ul><ul><ul><li>Local </li></ul></ul><ul><ul><li>(http://www.myfuture.edu.au) </li></ul></ul>
  14. 14. The Labour Market Employment Trends <ul><li>Overlaying LM’s. There are also: </li></ul><ul><ul><li>School Leaver </li></ul></ul><ul><ul><li>Teenage and </li></ul></ul><ul><ul><li>Adult labour markets </li></ul></ul><ul><li>And other “niche” LM’s, which are sometimes referred to as “boutique” labour markets. </li></ul><ul><li>The LM is dynamic with over 1.8M Australian workers changing their job for another job each year </li></ul>
  15. 15. <ul><li>Significantly different labour markets in areas outside of the major capital cities…. perhaps more prominent outside of the Sydney/ Melbourne labour markets </li></ul><ul><li>Regional non - metropolitan labour markets with marked differences in their base characteristics </li></ul><ul><li>Distance…. which also expresses itself in dependency on transport and accommodation </li></ul><ul><li>Relatively high levels of both youth and adult long term unemployment </li></ul>Australia has a Number of Unique Characteristics
  16. 16. A Snapshot of “Shifting” Demand <ul><li>From Manufacturing and Goods To Service Industries ….. (Those who provide services to others) </li></ul><ul><li>From large companies of 500 or more employees to smaller companies/ self employment </li></ul><ul><li>Increasing number of women combining work/ career with raising a family </li></ul><ul><li>More flexible work schedules; more than one job with more frequent job changes and a relatively shorter time in each job </li></ul><ul><li>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. </li></ul>
  17. 17. Areas in Demand <ul><li>The Labour Market - A Framework </li></ul><ul><ul><li>Technologists - Degree/Post Grad </li></ul></ul><ul><ul><li>Technician - Diploma/Assoc Dip/Post Trade </li></ul></ul><ul><ul><li>Trade/High level Skill </li></ul></ul><ul><ul><li>Operative - Semi and unskilled </li></ul></ul>
  18. 18. Areas in Demand <ul><li>Job Growth in all areas of the LM except the unskilled/semi skilled areas </li></ul><ul><li>Fixed period, Contracting, P/T and casual jobs account for most of this increase across all levels of the LM </li></ul><ul><li>Increasing numbers of people eventually entering Job areas outside their initial area </li></ul>
  19. 19. 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% Attending Part-time 13% Employed 20% Employed 31% Employed
  20. 20. Areas in Demand <ul><li>School Leavers - Employment by Industry </li></ul><ul><ul><li>Retail 30%…..large p/t component </li></ul></ul><ul><ul><li>Finance 15% </li></ul></ul><ul><ul><li>Recreation 15%…..Hotels, Restaurants, Clubs and other Hospitality </li></ul></ul><ul><ul><li>Manufacturing 12%…..Trades/Traineeships </li></ul></ul><ul><ul><li>Community Service 10%…..Public Sector, Health, Local Government </li></ul></ul><ul><ul><li>Other 18%…..Agriculture, Transport, Utilities, Communications </li></ul></ul>
  21. 21. Jobs/ Careers Which Create Their Own Demand <ul><li>Actors, singers, musicians, artists, writers, wood carvers, fashion designers, Chefs, linguists, etc </li></ul><ul><li>Entertainers and celebrities </li></ul><ul><li>Television, Film and Radio..…Presenters, producers, directors, scriptwriters, camera and other production specialists </li></ul><ul><li>Specialised Professionals in medicine, finance, IT, oil/gas, construction, science,engineering, design etc </li></ul>
  22. 22. The Labour Market – Skills and Competencies <ul><li>Traditional hierarchical career paths are no longer appropriate for individuals </li></ul><ul><li>Chaos - (Downsizings/ Upsizings/ Re-invention) stands side by side with the individuals need to “get on with it” </li></ul><ul><li>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 </li></ul><ul><li>Theories in career management are emerging which focus more upon management of oneself in unstable, deregulated and chaotic work environments </li></ul><ul><li>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) </li></ul>
  23. 23. The Labour Market – Skills and Competencies <ul><li>Self Employed – Nomads, Globalist’s and Entrepreneurs need skills in: </li></ul><ul><ul><li>Selling (how to drum up business) </li></ul></ul><ul><ul><li>Finance (to win the bank loan, investment/ venture capital) </li></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><li>Just as the Industrial Revolution brought people together in workplaces the information revolution is pulling people apart </li></ul><ul><ul><li>Work at home </li></ul></ul><ul><ul><li>Temporary work sites/ frequent changes </li></ul></ul><ul><ul><li>Project based </li></ul></ul><ul><ul><li>Balancing one’s lifestyle </li></ul></ul>
  24. 24. The Labour Market – Skills and Competencies <ul><li>Common traits are: </li></ul><ul><ul><li>Savvy </li></ul></ul><ul><ul><li>Self confidence </li></ul></ul><ul><ul><li>Mobility </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Willingness to take a risk </li></ul></ul><ul><ul><li>Achievement/ outcome oriented </li></ul></ul><ul><ul><li>Self sufficiency </li></ul></ul><ul><ul><li>Ability to constantly reinvent oneself </li></ul></ul>
  25. 25. Job Seeking Skills – For School Leavers <ul><li>Need to be on the same level and intensity for all other job seekers in order to compete in the deregulated LM </li></ul><ul><li>Requires the school leaver to acquire higher levels of job search and interview competencies </li></ul><ul><li>Highly commend the “School To Work Plan” introduced by the VET in Schools Directorate of the NSW Dept Education and Training. </li></ul>
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