Rail - try has been tasked with the most ambitiousinfrastructure agenda in recent history, yet skills shortagesin key areas have the potential to affect the industry’s abilityto perform.Certain engineering and technical skills shortages remain criticalfor rail and the Australian economy in general. The rail industryspecifically is in competition with other industries such as mining,construction, electricity, water and gas to recruit from a dwindling international pool of individuals with these highly sought afterskill sets.
Baby Boom generation will turn 62By 2050, 40 percent of Europe’s total population and 60 percent of its working age population will be people over 60.8Globally, the number of elderly has tripled over the last 50 years and this is expected to further triple in the next 50 yearsIn Australia, by 2020 employees retiring will outnumber those entering the workplace CRUNCH TIME
Challenge - 2008Skills crisis, labour shortage, resources boom - GFC Poor image (1900 technology in 21 century)Strategies – Critical Workforce AreasElectriciansNational training qualificationsTrain controllersTraining, meaningful work, recruitment (cultural fit), multi-usersEngineersGraduates +5, lifestyle (not $), supernumeraries, opportunities to ‘mix and match’,
Downer EDI Rail was established in October 2000 following the merging of Clyde Engineering and the rolling-stock activities of Walkers Pty Limited. Each organisation has over 100 years operating experience in railway rollingstock. Downer EDI Rail then became a key division of Downer EDI following the merger of the Downer Group with Evans Deakin Industries in early 2001. Provides rolling stock services to the A’asian rail industry. Delivers comprehensive whole-of-life asset management solutions to our clients, Downer EDI Rail:Employs over 1900 people across AustraliaOperates 30 maintenance facilities, manufacturing facilities and design centres throughout AustraliaSpecialises in nationwide maintenance servicesOur clients outlay large capital investments in their rolling stock. We work to optimise these assets from the initial scoping, throughout the life of the asset to the point where it needs to be replaced.
Provides rolling stock services to the A’asian rail industry. Delivers comprehensive whole-of-life asset management solutions to our clients, Downer EDI Rail:Employs over 1900 people across AustraliaOperates 30 maintenance facilities, manufacturing facilities and design centres throughout AustraliaSpecialises in nationwide maintenance services
Extending our operations beyond Queensland,QR is moving forward with a national freight strategy and anexpansion of our inter-urban commuter rail infrastructure $12 billion in assets15,000 people Generates over $3.5 billion revenue.Moves 238 million tonnes of freightDelivers to 500 locations nationallyCapital works portfolio - $1.5 billion144km of new track - next 20 years
Launched national recruitment campaign – “QR more than I’d imagined” - strongly support ARA led study into attraction and retention for the industryMale, pale and staleOil, gas and mining Poaching - Australian marketInternational projects - impactQR/Rail not sexy - not EOC – first contactDoes not feature on the radar - job hunters
Job families: • Improve competencies of the workforce through better selection and placement; • Increase training and development participation; • Increase retention of competent employees; • Improve individual performance and contribution; • Provide flexibility to line managers in staffing decisions; • Provide flexibility to line managers when assigning job duties.
Talent brand is critical to both talent acquisition and retentionBlend - culture, reputation, products and services, and the way it deals with and values its workers.Is what differentiates an organisation as a good (or not so good) place to work for potential and current employees.The challenge for organizations' (rail industry) means that they have to change the way they think and behave." Avril Henry, Executive Director, AH Revelations
You are talking about pretty basic stuff - if you are buying a product you want to be aware of the brand and compare it to the competition before you make a purchase decision. The same goes for attracting employees and raising the profile of the organisation.Louis Vuitton – Luxury Good and FashionWoolworths – Fresh Food PeopleHaighs Chocolates - high quality chocolate products Google - Emirates – providing highest possible level of professional serviceFerrariWhat do have all in common?
As an employer, has a low brand awarenessPoor brand image as compared to public engineering companiesPotential recruits – see little value in rail as an employer brandSeen as 19th century organisation operating within the 21st century
Critical Questions What are the major factors at play that are influencing the increased necessity for companies to develop and maintain employer brands? How does an effective employer brand assist in the attraction and retention of quality staff, particularly Generation Y? How do organizations' research and develop an employer brand that delivers results?
It communicates the company's culture and values and helps to ensure employees are passionate about, and fit in with, the organisational culture to help move the company forward. employer brand to be successful, it needs to incorporate more than just an enhancement of recruitment communications or improved internal communications. It should focus on the entire employment experience, organisational personality, goals and values and reflect a true understanding of what motivates current employees and the candidate market. If you are not living the brand values internally then it is very hard to build the brand externally." One of our objectives (in developing our employer brand) is to become an employer of choice.
The importance of employer branding for Generation Y The demographics of the workforce are changing and businesses need to be sensitive to the different values and expectations of Generation Y. Companies will need to manage changing workplace motivations and expectations through their employer brand. "Generation Y really focus on the ethical stance of companies when considering potential employers. They look at things like annual reports to assess the gender and age make up of the board members to form an opinion of the corporate culture. In terms of attracting these people, they will want to work for organisations that are socially responsible. This should be demonstrated in the various channels that potential employees come into contact with an organisation if you are going to be best placed to attract these people." Nigel Barcham, Managing Director, Robert Half ANZ.When developing an employer brand, organisations must take these new generational realities into account, or risk alienating this group of employees. "We make sure we manage the careers of the finance staff, ensuring they obtain the experiences, qualifications and challenges they want...so they are meeting their own career goals." Simon Jones, CFO, AgriQuality.This new demographic tends to be more career loyal and less company loyal. They want to know what the organisation will offer them. Work is something that fits into their lives, rather than the other way around as in previous generations. Cross-functional training, strong provision for career development, work-life balance and opportunities for overseas travel are all top priorities for Generation Y"Gen Y's are sending the message to the corporate and public sector: If you're not willing to have good leadership...challenging work, not willing to mentor me, then I'm not coming to work for you." Avril Henry , Executive Director, AH Revelations.Incorporating corporate social responsibility (CSR) into an employer brand will become increasingly important when attempting to attract Generation Y employees who will assess an organisation's ethics and CSR policy when choosing an employer. Employer branding must also take into account the realities of managing Generation Y, providing greater transparency, job flexibility and opportunities. "Have a weekly meeting that you invite Gen Y's to, tell them what is happening in the organisation. Tell them how what you are doing in your department feeds into that, tell them about how the work they are doing feeds into that. Tell them what is coming up in the future. Allow people to job share or rotate through jobs or to try new things they haven't tried before. Invest in training and developing, not only the skills of the Gen Y's but the skills of the people who are managing them. The challenge for organisations means that they have to change the way they think and behave." Avril Henry, Executive Director, AH Revelations.
Traditional strategies do not workIdentify and establish key points of difference to their competitors ultimately will be the most successful in attracting the best candidates for the job4 most important EOC attributesexcel in people leadership,create a compelling employment offer for employeesaccelerate development of their peopleculture and values are viewed as critically important.“Hewitt Associates
On average, the ‘best employers’ receive five job applications for every 2.8 received by other employers; the average staff turnover is around 15 percent compared to 20 percent; share prices tend to be higher than for other companies in the same sector; average revenue growth between 1998 and 2000 was 48 percent versus 25 percent for others, and profit growth was 62 percent versus 18 percent. All of this requires a long-term investment of five to seven years of constant effort on behalf of the employer.
There is no ‘quick fix’ solution to critical skills shortages, especially given the complexities of global and national skills shortages, ageing workforces, fluctuating global financial markets.Rail industry will continue to face attraction and image problems unless it takes a whole-of –industry approach to rebrand itself, including potential joint media and public relations initiatives . Cultural change in the public sector and improvements in areas such as recruitment practices, could do much to reduce the image of bureaucracy. In addition, rail needs to engaged far more strategically with educational providers and industry skills councils so as to embed rail into vocational and university curriculums . Finally progress , any progress towards harmonisation of rail technologies will improve the portability of rail skills and reduce the perception of ‘pigeon holing‘.
Attracting Talent To Rail Industry
Tony Wiggins AHRI Queensland Vice President andConvenor Attraction, Recruitment and Retention Forum HR Manager Queensland Health 1
My contribution today… analyse the current strategies used by the rail industry, rail HR practitioners and possibly your organisation to attract skilled staff 2
Outline Analyzing the current strategies in place to attract skilled staff to rail What is working well and lessons learnt for 3 organisations Attraction, Branding and Gen Y 3
Current situation• Ambitious agenda• Skills shortages - performance• Certain skills shortages remain critical• Competition• International pool• Australia - skilled trades, engineers and technicians - ranked 1st, 3rd, 6th• Little research - attraction and branding 4
Rail and ageing workforce FTE 2005 250 200 150 100 50 0 20 23 26 29 32 35 38 41 44 47 50 53 56 59 62David Ellwood (Dean of Harvard University`s Kennedy School of Government) in J. Barrett "An impending work crisis" ( Newsweek, 2002) Source: BCG analysis 5
Rail and ageing workforce Demography poses an risk for many companies Loss of competence Declining productivity Lower motivation Increasing costs Less innovation "If there is a crisis, it will be too late“ Mindset cause the talent shortage Little bit of imagination - beat the skills shortage 6
2009 - Privatisation Westrail Granted 49 year lease Controls 5100 km rail infrastructure - SW W Aust Access management, signalling, controls, communications, rail construction ... 240 employees 500 million tonnes hauled per annum 8
Challenge - 2008 Skills crisis, labour shortage, resources boom - GFC Poor imageStrategies – Critical Workforce Areas Electricians National training qualifications Train controllers Training, meaningful work, recruitment (cultural fit), multi-users Engineers Graduates +5, lifestyle (not $), supernumeraries, opportunities to „mix and match‟, 9
2000 - Merger Clyde Engineering + Walkers 2001 - Merger Downer Group with EDI Provides rolling stock services to the A/Asia 1,900 people (rail) 25,000 (group) 30 facilities centres – A/AsiaChallenges Branding – 1 EDI Downer group Not seen as a sexy career 10
StrategiesGraduates Structured, strong robust program Ongoing coaching and development Transitioned into the businessApprenticeships Linkages with schools – cadets (Newcastle) Manufacture Sydney trains Sponsorship local football teams 11
Location - Queensland based/national entity Assets - $12 billion People - 5,000 Revenue - >$3.5 B Freight - 238 M tonnes p.a. Locations – delivery 500 Capital works portfolio - $1.5 billion 144km of new track - next 20 years 12
Challenge Male, pale and stale Oil, gas and mining Poaching - Australian market International projects - impact QR/Rail not sexy - not EOC – first contact Does not feature on the radar - job hunters 13
Strategies – Critical Workforce Areas Rebranding QR 2000 “QR more than I‟d imagined” It is not trains, it‟s logistics Fresh look - going places, new opportunities Female, graduate and fresh International Recruitment – expat engineers Bowen Basin projects 14
Strategies – Critical Workforce Areas Australia Social Media Thinking outside square/ transferable skills Designing job families Recruitment - cultural fit “Not just a job, a lifestyle” Financial, career, work and lifestyle benefits 15
Different problems, similar strategies Recruitment + cultural fit On-boarding Learning and development Lifestyle Job variety Career development Employer of Choice 16
Townsville Hospital Tired of living to work, rather than working to live? Fed up with traffic slowing you down? Interested in professional development & achievement? Want to be an integral member of a service dedicated to caring for the community? Then why not consider a rewarding career working in tropical North Queensland? 18
Attraction and Branding Critical to talent acquisition and retention Blend - culture, reputation, products and services, and the way it deals with and values its workers. Difference - place to work - potential and current employees. Challenge - the way rail currently thinks and behaves. 19
Where is rail at the moment? Has a low brand awareness Poor brand image Potential recruits - see rail as little value Seen as 21
Employer brand - critical questions What are the major factors that are influencing rail to develop and maintain employer brands? How will an effective rail brand assist in the attraction and retention of quality staff, particularly Generation Y? How does the rail industry/individual rail entities undertake research and develop an employer brand that delivers results? 22
Asking critical questions leads to … Culture and values Employees are passionate about, and fit in. More than recruitment Focus - candidate market Living the brand values internally - build the brand externally – attract high demand recruits Draw people in, right people in & with the right fit. Less time to hire Objective - employer of choice (EOC) 23
Gen Y, branding + recruitment “If youre not willing to have good leadership, challenging work, not willing to mentor me, then I‟m not coming to work for you” Avril Henry , Executive Director, AH Revelation 24
EOC Traditional strategies - not any more! Identify and establish key points of difference 4 most important EOC attributes Excel in people leadership Create a compelling employment offer for employees Fast track development of people Culture and values are viewed as critically important. Hewitt Associates 25
EOC - Bottom Line Results Job applications – x2.5 Staff turnover - 15% compared to 20% Sector share prices - higher Revenue growth – 2 times higher Profit growth – x4 higher Long-term investment of 5-7 years 26
HR strategic partners in business Sourcing - Recognition and Involve Onboarding Cultural Fit Rewards EveryoneSource: BCG Creating People Advantage 2008 Leadership and Interesting and Culture Fun
Where to from here? Past and Future Current Solutions Restraints Whole of Industry Global and national Approach - skills shortage Rebranding Fluctuating global Cultural Change financial markets Harmonisation of Ageing workforce Rail Industries 28