Changing work and changing workers… where are the opportunities for ACE providers?

1. Changing work and changing workers… where are the opportunities for ACE providers? Sharon Coates Chief Executive Officer

2. What is IBSA? • Industry portfolio: • Business Services; Financial Services; Cultural and Creative Industries; Printing and Media; Education; and Information and Communication Technologies • Cross industry leadership: • Creativity, innovation and design • Multiple literacies underpinning employability skills • Entrepreneurship, sustainable business skills • Skills required for converging industries and technologies

3. Work ecosystem includes • People • Organisations • Jobs • Environment • Globalisation

4. Changing business characteristics • Multiple business structures • Fluid enterprise to enterprise alliances • Technological convergence • Functional convergence of industries • Occupational blending • Occupational spillage • Growth, stagnation & contraction of industries

5. Complex Workforce Environment • Casualisation - less permanency • Outsourcing, off-shore and remote work • Demographic change • Issues around people in transition • Government initiatives around disability • Migrants and others coming into workforce at later stages – not traditional entrants • Contractors and sub-contracting • Low proportion of organised labour – 21% -23% union members • Call Centres, e-business, global workplaces

6. Changing definitions of work • Blurring of work and non- work boundaries • Volunteerism will become an increasingly legitimate form of unpaid work • Motivations vary

7. Volunteers and the ACE sector • Volunteer workers needs to: • make a useful contribution to the organisation • be satisfied with their role in the organisation • Effective volunteer training and development programs can address both of these needs • ACE is both an employer and potential trainer of the volunteer workforce

8. Volunteer Workforce • 4.5 million adult volunteers serving in 700,000 organisations (2000) • More than 704 million volunteer hours worked per year, contributing $42 billion to Australia’s economy • Growth in adult volunteering from 24% in 1995 to 34% in 2004 • Average hours per volunteer is 3.1 hours per week

9. Volunteering • Most common volunteering activities are: - Fundraising/sales 56% - Management/Committees/co-ord. 45% - Teaching/instructing/informing 44% - Admin/Clerical/Recruitment 41% • People generally choose a volunteer activity reflective of their employment field

10. Recognition of volunteer work • Skill development and recognition of volunteers could benefit from units in a number of Training Packages – Training and Assessment, Community Services, Business Services, Governance Frameworks and specific technical skills – eg Sport and Recreation • See ‘duecredit’ ANTA publication 2002

11. Regional and community expectations • Declining regional populations • Regional economic development strategies including workforce skills • Broader definition of “communities” • Community capacity building

12. Generational differences • Veterans – Loyalty • Baby boomers- What’s in it for me? • X Generation - Empower me • Y Generation – Inspire me • Click & Go generation – 3 clicks and they’re gone • Acknowledgement – Avril Henry AH Revelations - avril@ahrevelations.com

13. What is Innovation?

14. Types of Innovation • Product innovation • Innovation with business processes • Business-model innovation – a changed way of doing business • This is the category that makes the most difference • It is about the way you configure supply chains and distribution channels deal with customers

15. Successful Companies • Companies that have excelled in innovation have made it a ‘competency’ across the entire company • The purpose of innovation is to be competitive, not to initiate innovation for its own sake • Need to assess how competitors are innovating and be distinct • IBSA industries are high up on the innovation league table includes: banks, telecommunications, insurance, news, superannuation (Source: BRW June16 – 22, 2005)

16. Innovation in Business • Is solving the same problem in new ways • New ways of running a business to improve efficiency, service, safety, reliability • The key to innovation is to unlock the talents of people and ensure the focus is on the most important challenges • Innovation is the result of a creative process and it creates value

17. So what is Creativity? • ‘Creativity’ is basically the powerhouse underpinning innovation. • Creativity is an invention process – whereas innovation can be thought of as a managerial practice, fuelled by creativity.

18. Creativity • Increasingly, the new core competency is creativity, the right-brain stuff that smart companies are now harnessing to create top-line growth. • The game is changing. It is not just about maths and science any more. • It is creativity, imagination and, above all, innovation. Ref: The Creative Future by Robert Berner and Diane Brady in Business Week

19. Innovation Messages • All businesses need to embrace creative thinking and innovation • IBSA is embracing innovation in our business practices • TAFEs are complex multi- million dollar businesses • ACE providers can be more nimble and responsive to innovation

20. Why do Providers need to Innovate? • To develop new resources • To improve services to individuals, enterprises and communities • To add value to learners’ experiences • To listen to their staff and foster their development and creativity • To sustain the ‘brand value’ of the educational service • confidence in the outcomes • credibility of the qualifications or other outcomes

21. Innovation Schema • Build a culture that nurtures ideas • Have a process to develop need ideas eg NABC – Need/ Approach/ Benefits/Costs/ • Have a process to filter ideas

22. IBSA work of interest to ACE Three areas in which IBSA is taking a fresh approach: • Essential skills – examining emerging literacies and their relevance to industry and workforce development • Financial literacy – exploring opportunities to tackle financial literacy within VET • Education – building the capability of the education industry’s workforce

23. Emerging literacies Strategy for essential skills to determine: • Literacy skills needed in the IBSA industry sector workforce now and in the future • How those skills are developed • Where, when and with what resources they are developed • What skills and resource gaps exist • What approaches and tools are missing • What solutions are needed

24. What are essential skills? • Essential skills are the skills needed for work, learning and life. They provide the foundation for learning all other skills and enable people to evolve with their jobs and adapt to workplace change.

25. Essential skills explored… • Essential skills explored with stakeholders through focus group sessions were: • Critical thinking • Spoken and written communication • Numeracy • Social literacy • Information literacy • Technology literacy • Visual literacy • Multimedia literacy • Financial literacy

26. Essential skills unpacked… • ‘Literacy’ is not a generally understood or agreed term • Critical thinking, language, literacy and numeracy underpin all other skills • Some of the ‘new literacies’ might be seen as simply combining topic knowledge with critical thinking and LLN • The use and development of visual literacy is not well understood or acknowledged in education and training

27. Initial consultation outcomes • Spoken and written communication and numeracy are of primary importance • Information literacy is crucial but is often restricted by traditional literacy skills (the ability to make meaning from words) • Social literacy is highly rated - as well as a need for ‘business literacy’ • Emphasis is needed on self-management, self-direction and self-assessment • ‘Mental agility’ – the ability to think – is the most highly valued skill in some industry sectors

28. Where to from here? • Define fundamental literacy skills and relationships to other new essential skills • Draft strategy developed and available for feedback on the IBSA website early in 2006 • Strategy finalised by mid 2006 • Strategy implementation within Integrated Skills and Qualifications Framework during 2006-2007

29. ACE provision of essential skills • Mature workers - RPL • Older adults who are retired • Welfare to Work programs • Pre-employment programs • Financial literacy programs for small businesses, young adults and community members in partnership with service clubs and other organisations including RTOs

30. Why do we need financial literacy? • Changing work environments, rising numbers of casuals and contract workers • Increased range of financial products, investment and debt opportunities • Greater consumer responsibility for savings, investment and superannuation decisions • Increased community demand for transparency and accountability

31. Business benefits of a financially literate workforce • More focused and less stressed workforce • Lower rates of absenteeism • Greater employee understanding of business financial imperatives • Better financial decision-making - improved productivity and reduced waste • Improved retirement planning – allows workforce planning and the retention of experienced older workers

32. Financial literacy units of competence Certificate I in Financial Services • Develop and use a personal budget • Develop and use a savings plan • Develop understanding of debt and consumer credit • Develop understanding of superannuation • Develop understanding of the Australian financial system and markets

33. Self-directed financial literacy resources IBSA is: • Adapting an on-line program for use in the ACE sector • customising for SMEs • expanding use by local government • promoting the value of financial literacy to employers • measuring the impact of financial literacy resources through data collection

34. A role for the ACE sector • Deliver tailored financial literacy programs based on IBSA resources available early in 2006 to a wide range of learners, including small business • Develop approaches for the delivery of accredited financial literacy units and qualifications • Participate in the Foundation’s Financial Literacy Educators and Trainers Network – www.understandingmoney.gov.au • Help employers to establish personal development programs for their workforce

35. The Education Industry • Contribution to GDP in 2004 4.2% • Projected contribution to GDP in 2009 3.8% • Total employment of 666,100 in 2004 and annual growth projected over the next 5 years of 1.3%.

36. Education Sector Trends • Ageing • The demographic profile of the education industry is an ageing workforce. • TAFE, the major public provider of VET will be hardest hit by retirement of teachers in the future • Shift in demand from School education market to VET and ACE market as Australia ages • Education industry will have to provide capabilities to support work-force re-entry, career change and life-long learning.

37. IBSA initiatives for education industry • Skills clusters and qualifications for people giving vocational career information • Qualifications for people working in the international education market • Skills clusters and qualifications for industry specialists and school teachers who’ll be working in ATCs • Business and ICT skill development for ACE and VET managers teachers

38. Overall implications for the education industry • Workforce skill development is now recognised as underpinning entire industry performance and sustained competitiveness and standard of living • Need for “soft” skills/employability skills for work and citizenship • Skills shortages • Competition between industries for staff – people shortages • Anticipating emerging skill sets required for hybrid and portfolio careers • Planning for the renewal of the education workforce • Competition in the education market place – including for staff • Different learning styles of Gens X & Y and the baby boomers’

39. What space can ACE occupy? • Capitalise on partnerships and alliances • Employers need training solutions that meet their business’s particular mix • Individuals will be increasingly responsible for their own development • Nimble providers can target micro and small business with innovative learning models • Mature workers and older citizens will need upskilling and reskilling –particularly in use of converging technologies and financial literacy

40. We can do more for less? • By embracing creative thinking in designing innovative learning and innovative ACE operations – ie by changing the way we do business • By recognising that successful innovation is dependent upon being able to leave behind thinking and practices that have past their ‘use by date’ .

41. Visit IBSA at • Register for our Newsletter • www.ibsa.org.au