Avoiding Profit Impacts
from Skills Shortages |
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Tess
Walton - In the loudest warning yet of the potential
cost of changing labour market conditions to the bottom
line, BHP Billiton have attributed the shortage of skilled
labour as a major industry pressure which contributed
to increased costs (and hence lower than possible profits)
in their interim 2005 results announced late February.
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As
BHP stated, increased activity across the resources
sector was a significant contributor to this challenge,
but it also reflects the growing use of contingent workers,
and of course the shortages in trades, and in tertiary
mining and engineering skills.
But
those of us not in the mining or engineering industries
can not afford to be complacent - as the labour market
rapidly tightens up to 2010 (see our analysis
of the government forecasts for more details), these
shortages will expand to include most professionals
and para-professionals, and clerical, sales and services
staff - skills which affect all employers.
However,
good workforce planning can enable you to proactively
address these issues, including using financial skills
and tying the workforce to profit. Some of the workforce
planning activities which can help in this area include: |
- Link
the Workforce to the Business Strategy. Whether
you are in the public or private sector, it's highly
likely that your organisation has annual reports (and
even strategic plans) readily available. Good workforce
planners will use business documentation to engage
executive and gain focus workforce at the strategic
level. As the people specialists, you need to know
what strategic capabilities are important to the business
now and in the future, and how particular workforce
groups align to these, and to the strategy. But just
asking executives won’t get the answers for you.
Translate each of the organisation’s key strategic
objectives into a workforce impact - i.e, “If
this strategic objective is to be achieved the workforce
will need to look like..”. Remember your description
needs to be quantitative as well as qualitative.
- Estimate
Impacts to the Top and Bottom Line. ne of
the most effective ways to get your executive to pay
attention to your is by estimating the impact that
shortages can have on your business, using basic financial
measures found in your annual report. What does it
cost the organisation to be over/under skilled and/or
over/under staffed? These concepts can be easily converted
into dollars.
- Incorporate External Data into your Workforce
Planning. There is much rich data available
from the ABS, DEWR and others which can enable you
to identify future challenge areas for your organisation
- use it! Look for other sources, too - especially
the newspapers and business magazines that are what
your executive are reading. Being able to link your
workforce impacts to an article they may have read
in mainstream press can go a long way to providing
credibility and relevance. Also don't forget what
your competitors are doing - changes in the labour
market aren't just driven by demographics
Of course, this is just a selection of the activities
you can do, and as usual it's a menu - not every activity
is right for every organisation. For more, you can read
our February newsletter to understand how
you can use workforce planning to focus your retention
efforts.
If you need assistance determining how labour market
changes will affect your business, and how you can minimise
the future cost impacts, you can attend one of our Strategic
Workforce Planning Workshops in Melbourne in April
(or other cities later this year), or contact
us for an obligation free conversation about your
workforce planning needs.
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Telework
for Australian Employees & Businesses |
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The
Australian Government have released the report Telework
for Australian Employees and Businesses: Maximising the Economic
and Social Benefits of Flexible Working Practices.
The report (released by DEWR and DCITA) is the result of almost
a year's consultation
and research by the Australian Telework Advisory Committee.
Some
of the key findings of the report are: |
- Despite
research that teleworkers can be up to 40 percent more productive,
many workers and businesses are still reluctant
- Telework
is not an option for all occupations and industries, but
can deliver outcomes such as a greater capacity to attract
and retain quality staff
- Impediments
to the uptake of telework are attitudinal, educational and
management related
- Telework
offers the potential to facilitate greater workforce participation,
including for mature age workers
The
report discusses Telework's definition, importance and barriers
- including OH&S, privacy concerns and possible job fatigue
- as well as discussing ICT needs, providing and ICT support
checklist, and detailing several case studies.
Whether
your organisation has considered, implemented or currently
rejected Telework as part of a flexible work policy, we recommend
that you read this report, and consider including some of
the findings in your workforce planning.
Download
the report |
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Thought
for the Month |
| "Businesses
that...don't ask themselves what that demographic profile
will look like in four or fives years time, may well find
themselves in a few years waking up...and asking where do
I find the workforce that I need?"
Workplace
Relations Minister Kevin Andrews |
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In our next issue... |
Fantastic
New Tools - Next month we'll be launching some
exciting new tools to help with your workforce planning
initiatives - watch this space! |
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