Ageing Workforce - A Case Study

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Ageing Workforce - A Case Study
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• Introduction
• Labour Market Context
• BCC Response
• Wise Heads
• Good Practice

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Labour Force Age Profile
Compared to Brisbane labour force
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BCC Projected Profile
Average age of BCC employees
of employees over 50 years
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Changes in the Working Age Population
SourceAccess Economics Population Ageing and
the Economy, 2001, p28
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If We Did Nothing?
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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

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• 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 2020s.
• 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

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Impacts On Labour Supply
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The Changing Age Profile Of Labour
Implications of an Ageing Australia, Productivity
Commission April 2005
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Impacts On Economic Growth
Implications of an Ageing Australia, Productivity
Commission April 2005
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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

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BCCs 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

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

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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

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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

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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
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Feedback Staff/Managers 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
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Wise Heads Example 2

• Smart Moves for Wise Heads Career Transition
  Program

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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

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Career Development Process
Discover
Implement
Succeed
Prepare
Research Plan
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45ers 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.
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Supporting the 65ers
By 2025, there will be only three people in work
for every person over 65, 31 compared with the
current ratio of 61.
Save Australia Keep Working, Sherrill
Nixon, Sydney Morning Herald, 28 August 2003.
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Life Expectancy
Australians now have one of the longestlife
expectancies in the world.
www.osconnect.com/pop 2007
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Working with Change
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Life Roles Map
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Partner Initiatives

• Flexible Work Arrangements
• Zero Harm

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Good Practice
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Good Practice

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

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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_at_worklifeint.com
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Our learning - Good practice

• Complex competing tensions
• Short term fixes wont 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