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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.
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