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

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

If We Did Nothing?

 Fertility is decreasing – from a peak average of 3.4 births in , the fertility rate plunged to 1.8 births in , dropping further to 1.6 in  Further declines are projected.  Life expectancy is increasing – on average, we are living almost 20 years longer than we were in  In 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 Cat Economy Jan 2001 Changing Demographics

 “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

Impacts On Labour Supply

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

Impacts On Economic Growth

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

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

Workforce Masterplanning Strategy Shape HR Info & Planning Capability What skills and attributes will the workforce need for the future? What type of workforce do we need for the future? (eg. demographics, employment type, nature of work) 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? HR Data Talent War Workforce Planning Ageing Workforce Demographics Youth Inform capability projects eg Leadership, e-capability

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

Year /04 Research and analysis Demographics Work and Life survey Workforce Planning Workforce planning tool Data packs Communicated concerns and issues re ageing staff

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 Year /05

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 Year /06

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

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”

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

Smart Moves for Wise Heads Career Transition Program 1.Full day - Work and Life Planning 2.Financial session - 2 hours 3.Well 4 Life session - 2 hours 4.One on one planning meeting 5.3 month review 6.12 month review

Career Development Process Succeed Implement Research & Plan Discover Prepare

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

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

Life Expectancy Australians now have one of the longest life expectancies in the world.

Working with Change

Life Roles Map

Flexible Work Arrangements Zero Harm Partner Initiatives

Good Practice

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

Acknowledgements Business, Work and Ageing Swinburne University H95 PO Box 218 Hawthorn VIC Worklife International PO Box 717 Northbridge NSW

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