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Ageing Workforce - A Case Study

Ageing Workforce - A Case Study . Introduction Labour Market Context BCC Response Wise Heads Good Practice. Labour Force Age Profile. Compared to Brisbane labour force . BCC Projected Profile. Average age of BCC employees. % of employees over 50 years .

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Ageing Workforce - A Case Study

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  1. Ageing Workforce - A Case Study

  2. Introduction • Labour Market Context • BCC Response • Wise Heads • Good Practice

  3. Labour Force Age Profile Compared to Brisbane labour force

  4. BCC Projected Profile Average age of BCC employees % of employees over 50 years

  5. Changes in the Working Age Population Source:Access Economics ‘Population Ageing and the Economy’, 2001, p28

  6. If We Did Nothing?

  7. Changing Demographics • Fertility is decreasing – from a peak average of 3.4 births in 1960-62, the fertility rate plunged to 1.8 births in 1980-82, dropping further to 1.6 in 2005. • Further declines are projected. • Life expectancy is increasing – on average, we are living almost 20 years longer than we were in 1920. • In 1960-61 the growth of younger people entering the labour market was 21/2 times that of today.* • In that period the age group 15 – 24 grew by 67,000. Between 2000 & 2001 it grew by 25,000 and in 40 years it will grow by 11,000.* • For every new young person entering the labour market today there are seven workers over the age of 45 years available.* ABS Cat32222.0Economy Jan 2001

  8. “Access Economics has reported that the working age population* grows by 170,000 people a year. • But trends already in place will see the working age population grow by just 175,000 for the entire decade of the 2020’s.” • *15-64 years • Population Ageing and the Economy updated estimates 2005 • The Australian government Department of Employment and Workplace relations projects a shortfall of workers of up to 170,000 by 2010 in Australia. • ‘The Bureau of Labour Statistics projects a shortfall of 10 million workers in the United States in 2010, and in countries where the birth rate is well below the population replacement level, (particularly in western Europe), the shortage will hit sooner, be more severe and remain chronic.’ Ken Dychtwald Harvard Business Review March 2004

  9. Impacts On Labour Supply

  10. The Changing Age Profile Of Labour Implications of an Ageing Australia, Productivity Commission April 2005

  11. Impacts On Economic Growth Implications of an Ageing Australia, Productivity Commission April 2005

  12. The Picture For Brisbane City Council • Our workforce is ageing and on current projections, a large percentage of these will be in physically demanding roles • Many of our mature age staff will also need/want to work beyond traditional retirement age • Need to retain our mature age people, redesign work so that it is attractive and possible for them to stay and be productive

  13. BCC’s Response:The Workforce Masterplanning Project • Need to reshape our workforce to achieve the best demographic shape and capability possible for the future given the challenges we face • Need to keep the organisation energised, flexible and sustainable through knowledge/ experience/skills/innovation inflow • Need to constantly monitor and analyse (at all levels) our workforce data with external trends in order to become more proactive in identifying “hotspots”

  14. Workforce Masterplanning Strategy Demographics What type of workforce do we need for the future? (eg. demographics, employment type, nature of work) Ageing Workforce Youth Shape Inform capability projects eg Leadership, e-capability Workforce Planning HR Info & Planning Capability HR Data Talent War What skills and attributes will the workforce need for the future? How can we use HR Information and planning to ensure we have the right people with the right skills in the right place at the right time?

  15. 2026Vision for the City of Brisbane Organisation 2012 strategies • Clever Workforce • Our culture • Our workforce • Our partnering capabilities • Great Employer • Our vision & strategy • Our systems & processes Our business outcomes We aim to be a great employer with a clever workforce

  16. Year 1 - 2003/04 • Research and analysis • Demographics • Work and Life survey • Workforce Planning • Workforce planning tool • Data packs • Communicated concerns and issues re ageing staff

  17. Year 2 - 2004/05 • Research and analysis • Educated HR and divisional staff in workforce analytics. • Workforce Planning • Annual workforce plans by each Division • Ageing Workforce • Specific Interventions - Wise Heads

  18. Year 3 - 2005/06 • Research and analysis • Continuing manager education. • Workforce Planning • Annual Workforce plans • Age directions paper • Predictive tools and benchmarking • Ageing Workforce • Initiatives - Wise Heads • Succession planning • Hot Skills • Fit for Work / Well for life

  19. AIM: to reduce the impact of physical work on mature age bodies by using ideas and suggestions from the accumulated wisdom of the staff Wise Heads: Example 1

  20. Feedback: Staff/Manager’s Comments “It was good for younger workers regarding succession planning” “The project raised issues for council – that we are vulnerable to skills losses and brain drain” “It gave staff a chance to raise issues for addressing later” “ It raised value of mature, competent and experienced mature age workers with management “ “The project identified the need for workforce and succession planning - need to grow Wise Heads” “The value of mature workers as key corporate knowledge holders was raised”

  21. Wise Heads: Example 2 Smart Moves for Wise Heads Career Transition Program

  22. Smart Moves for Wise HeadsCareer Transition Program Full day - Work and Life Planning Financial session - 2 hours Well 4 Life session - 2 hours One on one planning meeting 3 month review 12 month review

  23. Career Development Process Discover Implement Succeed Prepare Research & Plan

  24. 45+’ers Abound 80% Of future workforce growth in the next decade will come from people older than 45 years of age.** ** Australian Bureau of statistics, Labour force projections 2004.

  25. Supporting the +65’ers By 2025, there will be only three people in work for every person over 65, 3:1compared with the current ratio of 6:1.*** *** Save Australia – Keep Working, Sherrill Nixon, Sydney Morning Herald, 28 August 2003.

  26. Life Expectancy Australians now have one of the longestlife expectancies in the world. www.osconnect.com/pop: 2007

  27. Working with Change

  28. Life Roles Map

  29. Partner Initiatives • Flexible Work Arrangements • Zero Harm

  30. Good Practice

  31. Good Practice In table groups develop 6 practical ways to be a good practice employer in the current ageing labour market

  32. Acknowledgements Business, Work and Ageing Swinburne University H95 PO Box 218 Hawthorn VIC 3122 03 9214 4321 Worklife International PO Box 717 Northbridge NSW 1560 02 9431 7333 info@worklifeint.com

  33. Our learning - Good practice • Complex – competing tensions • Short term fixes won’t get the desired result • Ongoing review - HR practices • Ongoing analysis – metrics and pilots studies • Strategic dialogue with managers • Build manager skill level • Needs are still emerging • Respond flexibly - retain staff

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