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City of SwanWorkforce Plan2013/2014
o n e c i t y d i ve r s e p
l ac e s
‘… The Workforce Planidentifi es our workforce challenges, and provides for a continuous business planning process…’
11
INTRODUCTION FROM THE CHIEF EXECUTIVE OFFICER 2
OVERVIEW OF THE CITY OF SWAN 3
A WORKFORCE PLAN FOR CITY OF SWAN 4
What is Workforce Planning? 4
The Workforce Planning Model and Methodology 5
How the Workforce Plan helps to achieve the City’s Objectives 6
WORKFORCE PROFILE 8
Age and Gender of Employees 8
Type of Employment 8
Years of Service and Occupational Groups 9
Retirement Eligibility 9
Turnover 10
Workforce Diversity 10
Budget FTE and Headcount Report 11
Salary and Rewards 11
Career Development 12
EXTERNAL LABOUR SUPPLY 13
Labour Demand and Supply 14
LOOKING INTO THE FUTURE 16
Impacting Strategies and Factors — Internal and External 16
Signifi cant Workforce Challenges 18
Workforce Strategies 2013 – 2018 20
FTE Requirements 2013 – 2018 21
FTE Cost Modelling 22
Skills and Capabilities for the Future 23
SUMMARY OF ACTIONS IN WORKFORCE PLAN 24
MEASURING OUR SUCCESS 28
Reporting Schedule 28
Workforce Plan2013/2014Table of contents
2
The Workforce Plan identifi es our workforce challenges, and provides for a continuous business planning process to ensure there is suffi cient and sustainable capability and capacity to deliver the SCP objectives now and into the future.
From a workforce perspective, a growing population, aging workforce and constant change in our operating environment provide some challenges. There is a need to ensure the City has the right people with the right skills, at the appropriate time to meet these demands and challenges.
The workforce plan demonstrates our commitment to ensuring the strategies going forward address the potential gaps through improvement of organisational processes, attraction, recruitment, professional development and succession planning.
Our increased focus in each of these areas, as well as a range of supporting initiatives, will enable us to move one step closer in the direction of our vision, “One City, Diverse Places”.
Our communities have expressed their aspirations and priorities for the City of Swan in the form of the Strategic Community Plan (SCP). This plan provides the blueprint for the City’s activities over the next 10 years. In conjunction with the Integrated Planning Framework and the SCP, the City has developed a fi ve year Workforce Plan.
Introduction from the Chief Executive Offi cer
Mike FoleyChief Executive Offi cer
3
Overview of the City of Swan
The City of Swan is a diverse area of land collectively known as the Swan District.
The City of Swan is geographically the largest local government in the Perth metropolitan area and is one of the fastest growing urban corridors in Australia. Stretching over 1,044 square kilometres, the City is a unique blend of residential, commercial, industrial and rural land.
With a forecast population of more than 121,0001 residents (and rising) in 2013, the City is a thriving hub of economic growth, consisting of some of the fastest growing suburbs in Western Australia, two regional centres, several national parks and reserves, major commercial and industrial areas and historically important town sites and rural areas.
Our major tourist attractions, including the magnifi cent Swan Valley and signifi cant Aboriginal and southern European heritage sites, have elevated the City to “must-see destination” status. We always welcome the tens of thousands of local, national and international tourists who visit us every year.
The City of Swan lies on the north-eastern region of the Perth metropolitan area, and combines a diverse range of land uses and economic activities. The City is continuing to grow at a rapid rate especially in the Urban Growth Corridor where our three new suburbs of Bennett Springs, Brabham and Dayton are located.
Located 20 km north east of the Perth CBD, Midland is the gateway to the northern and eastern wheatbelt region, giving it a large customer catchment and employee base.
Currently, the State Government has allocated $44 million over a four year period for an urban renewal program being managed by the Metropolitan Redevelopment Authority (MRA) in partnership with the City. This program includes a 307 bed hospital, a General Practice (GP) Super Clinic with associated speciality and support medical services, new residential and commercial developments, including the redevelopment of the old Railway Workshops and a Midland university.
Midland is not the only area showing positive growth and development opportunities. Other areas within the City are
also rapidly increasing. The Ellenbrook area has seen major population growth over recent years. The suburbs of Bennett Springs, Brabham, Dayton, West Swan, Caversham and Henley Brook are undergoing signifi cant development which will lead to further population increases.
Industrial areas within the City of Swan also continue to thrive and this in turn provides a substantial revenue base to support the sustainability of the City, particularly from the Malaga area. Hazelmere, Viveash, South Guildford and Midvale are also classed as industrial centres within the City.
It is expected that the population within the City of Swan will continue to grow at a rate of approximately 2.47%2 per annum to 2036.
Future residential growth will occur on multiple fronts. These include the Urban Growth Corridor, 1,100 hectares of land encapsulating new developments in Bennett Springs, Brabham, Dayton, West Swan (West) and Caversham; continued growth at Ellenbrook; and potential urban infi ll opportunities throughout the City, all of which will contribute signifi cantly to population growth.
City of Swan statisticsEstimated resident population (ERP) (2011 ABS)3 114,179
Forecast population – 20132 121,089
Forecast average annual population growth – 2013 to 20362 2.47%
Eligible voters (citizens aged 18+) (February 2013 – WAEC)4 68,558
Residents born overseas5 32,481
Swan residents who have arrived in Australia since 20015
(highest numbers in Ballajura, Beechboro and Ellenbrook)10,272
Most common non-English language spoken at home5 Vietnamese
Proportion of residents who work outside of Swan5 56.8%
Proportion of residents who travel to work in a car5 72.5%
Total number of rateable properties6 49,822
Households with a mortgage5 48%
Average household size (persons)5 2.76
1http://forecast2.id.com.au/Default.aspx?id=223&pg=50002http://forecast2.id.com.au/Default.aspx?id=223&pg=5000
3Australian Bureau of Statistics 4WA Electoral Commission
5http://profi le.id.com.au/swan?WebID=180&DataType=en 6City of Swan
STRATEGIC PRIORITIES(4–5 YEARS)
STRATEGIC COMMUNITY PLAN(10 YEARS)STRATEGIES
COMMUNITY VISION
PLACE PLANS
PLANNING STRATEGYSERVICE PLANS
RESOURCING• FINANCIAL• ASSETS• WORKFORCE
BUDGET(1 YEAR)
CORPORATE BUSINESS PLAN(4–5 YEARS)
City of Swan Integrated Planning Framework
4
A Workforce Plan for City of Swan The City’s Integrated Planning Model is the approach to setting strategic direction (where the City has come from, where it is going and how it will get there) and translating that into services that are delivered to the community, through our Corporate Business Plan. Our Corporate Business Plan is reviewed annually to ensure we continue to provide relevant services to the community with the appropriate levels of resources such as people, fi nancial and assets.
The Workforce Plan 2013/2014 is one of the core components of the City’s Integrated Planning Model. Together with the Asset Management Plan and Long Term Financial Plan, the Workforce Plan details the quantitative and qualitative workforce requirements to deliver our Strategic Community Plan and Corporate Business Plan.
What is Workforce Planning?Workforce planning is a proactive and “continuous process of shaping the workforce to ensure that it is capable of delivering organisational objectives now and into the future”.
Workforce planning helps the organisation to proactively identify and anticipate change (as opposed to simply responding and reacting to events), identify the important issues driving workforce change, and enable us to develop and implement appropriate strategic and operational responses.
It gives management a strategic basis for making human resource decisions and provides a methodical plan to address current and future workforce issues, within and across the organisation.
Effective Workforce Planning will assist in delivering a fl exible and more effi cient workforce that can do the job now, and adapt to a constantly changing environment as well as changing community and customer needs.
1. CURRENT WORKFORCE Workforce Profile Retirements Turnover External Labour Market
2. FUTURE WORKFORCE Internal Factors External Environment Staffing for the Future Organisation Capability
3. ANALYSIS – GAPS AND PRIORITIES
4. WORKPLACE PLAN Objectives and Strategies 5. MONITORING AND EVALUATION OF OUTCOMES
5
The Workforce Planning Model and Methodology
In 2012, the City commenced Workforce planning using the framework below. Employee data was gathered from the City’s Human Resource Information System to construct a profi le of the workforce.
Executives Managers, Business Unit Managers and other key internal stakeholders were interviewed to understand the current and future workforce requirements and this forms the basis of the development of the workforce plan in conjunction with data analysis. In addition to these interviews, the Strategic Community Plan provided vital context for the future challenges/requirements that the City faces.
Further consultation was undertaken to develop and refi ne strategies and actions that were specifi c to Divisions and Business Units.
External data was collected from various sources including Australian Bureau of Statistics, Department of Workforce Development Western Australia, Centre of Excellence and Federal Government websites.
6
How the Workforce Plan helps to achieve the City’s ObjectivesConsiderable urban commercial and industrial development is occurring in the City of Swan, which is accompanied by rapid population and industry growth. This brings with it increasing demands for services and associated challenges. The need for comprehensive planning is therefore imperative to ensure that we understand our community and customer needs.
Extensive consultation occurred with our communities, staff and key stakeholders to develop our Strategic Community Plan (SCP). The Strategic Community Plan sets out our vision, aspirations and objectives for the Swan community over the next 10 years. It is our principal strategy and planning document. This means that it governs all of the work that the City undertakes, either through direct service delivery, partnership arrangements or advocacy on behalf of our communities.
In addition, the clear mandate given by Council is to ensure that the City amongst others, focuses on sustainable growth and has the requisite resources and organisational capability (i.e. Workforce, Assets and Finances), to deliver the SCP outcomes in the most effi cient and effective manner.
‘… The Strategic Community Plan sets out our vision, aspirations and objectives for the Swan community over the next 10 years …’
7
The fi ve theme areas in the Strategic Community Plan are:
Economic: Thriving, Sustainable Business Capacity and Growth The main objectives are to: E1.1 Attract business and investment opportunities.E2.1 Actively support and develop local and new business.E3.1 Strengthen the capacity and integration of the tourism industry.
Natural Environment: Environmentally Sustainable Leadership and StewardshipThe main objectives are to: N1.1 Mitigate City’s carbon footprint, reducing waste and greenhouse
gas production.N2.1 Preserve and protect local ecology and biodiversity of natural
ecosystems.N2.2 Reduce adverse impacts on biodiversity.
Built Environment: Diverse, Connected, Sustainable PlacesThe main objectives are to:B1.1 Facilitate and integrate housing options, local services,
employment and recreational spaces.B2.1 Manage current and future assets and infrastructure.B3.1 Advocate and provide alternative transport.
Social: Connected, Safe, InclusiveThe main objectives are to:S1.1 Determine service requirements and delivery options in the
areas of aged, youth, families and children.S2.1 Strengthen Place based access and delivery of services.S2.2 Build a strong sense of community health and safety.
Governance: A Sustainable and Capable Council The main objectives are to:G1.1 Provide accountable and transparent leadership.G1.2 Promote the City of Swan as a place to live, work and visit.G2.1 Improve capability and capacity.
The Workforce Plan most clearly contains strategies that sit within Governance: A Sustainable and Capable Council. However, optimally skilled, engaged employees are required to achieve these SCP outcomes.
The Workforce Plan is therefore a key input into the Corporate Business Plan that enables business units to plan for and make decisions on service delivery and resources required to deliver the SCP.
The Workforce Plan also provides an ability to bring a renewed strategic focus to the City’s current employment related programs, policies and plans.
180
160
140
120
100
80
60
40
20
0
Num
ber o
f em
ploy
ees
MaleFemale
>20 20–29 30–39 40–49 50–54 55–59 60–64 65+Age range
112
33
39
33
48
35
59
24
29
813
73
64
78
86
300
250
200
150
100
50
0
Num
ber o
f em
ploy
ees Part time
Full time
ChiefExecutive
Office
Corporate Operations Place Planning
Business Units
1514
115
114
4818
64
16
264
11
8
Workforce Profi leType of Employment Of the total number of employees, approximately 30% are employed on a part time basis. This provides workforce fl exibility particularly for employees transitioning to retirement, or mothers returning to the workforce. This work arrangement also serves to encourage work life balance.
Some Divisions have more part time arrangement as compared to others and this is linked to the nature of the services delivered. Achieving the right balance of part time/full time staff is vital for the City. Effi cient training and streamlined administrative processes are essential to enable Business Units to manage large number of part time staff effi ciently.
Employment type
‘… Effi cient training and streamlined administrative processes are essential to enable Business Units to manage large number of part time staff effi ciently …’
Age and Gender of Employees The City’s permanent workforce consists of 45% female and 55% male. Males and females are proportionately represented across the organisation.
This proportion varies in different Divisions. Operational areas are still predominately male. This is indicative of the large operation focus of parks/garden operations, road construction crews, drainage and fl eet & waste. In contrast female staff are dominant in the administrative functions.
Demographically, the workforce has an average age of 41 years old and there is a reasonable spread across the age groups. Thirteen per cent of the workforce is under 30 and the largest percentage is within the age bracket of 30–49.
Ages within some of the division also refl ects the nature of the industry. The Operations Division retains a mature workforce with a more conventional skill set, whilst the Planning Division has a slightly younger workforce.
Age and gender of employees
300
250
200
150
100
50
0
Num
ber o
f per
man
ent
empl
oyee
s
<1 1–4 5–10 11–15 16–20 21–25 >25Number of years of service
61 6225 2524
240 188
Admin/Business Improvement
Community CareOtherProfessional
Management/SupervisoryTradesSemi-skilled/Technician
Customer Service
2% 16%4%
11%
14%
25%
24%
4%
Chief ExecutiveOffice
Number of employees
Corporate
Operations
Place
Planning
0 50 100 150 200
221
1457
52149
556
79190
55 and overUnder 55
9
Years of Service and Occupational GroupsThe average length of service for staff is approximately seven years.
Approximately 12% of the workforce has 15 years or more of service and this component of the workforce holds a signifi cant amount of corporate knowledge and experience and it is imperative that this is captured and appropriately managed.
Years of service—permanent employees
Occupational GroupsThe fi gure below identifi es the breakdown of the different occupational groups within the City.
Occupational Groups
Retirement Eligibility People are tending to work longer. According to the statistics from Australia Bureau of Statistics, there is an increasing trend of later retirement. The age at which people choose to “retire” has increased over the past ten years.
The impact of the recent global fi nancial crisis on personal superannuation and investments has also meant that people are remaining in the workforce longer than expected.
Twenty-four per cent of our employees are currently eligible for retirement (i.e. 55 years and older) compared to 19% in the WA public sector.
Many of the staff who are eligible for retirement bring with them years of experience and technical “know how”. The loss of corporate knowledge and skills will need to be managed in some areas of the organisation. The likes of Operations and Place will have a greater need to manage an aging workforce.
Retirement Eligibility
20
15
10
5
0
Turn
over
rate
(%)
2010 2011 2012Year
13% 14% 16%
10
Turnover Employee turnover in the City has been stable over the last three years; between 13% and 16%. This average is considered to be healthy and is indicative of a variety of turnover reasons attributed to career advancement, relocation, retirement and performance management.
In 2012, 55% of departing employees were aged between 30–50 years and this is consistent with the current workforce profi le.
The staff turnover in occupational groups such as professionals, sub trades/semiskilled and trades/skilled groups is at 20%, which will require specifi c retention strategies.
Turnover Rates
Workforce DiversityIn producing this Workforce Plan, the City reviewed and analysed the demographic profi le of its local communities versus our current workforce profi le.
This analysis indicates that the demographics of the City’s workforce was largely consistent with the demographics of our communities but that there were areas which could be improved on as demonstrated in the table below.
In order to address these areas of improvement, the City will develop a comprehensive Employee Diversity Strategy which will amongst others include Aboriginal Employment. The City has been improving its indigenous employment via traineeships and skilled positions in many of the diverse roles in the City. More effort will be made to increase our commitment to indigenous employment.
Swan Community*
City of Swan
Females 50.2% 45%
Males 49.8% 55%
Indigenous population 3% of the population
1%
People from a Cultural and Linguistic Diverse (CALD) background
5.3% of population
4%
*Data as of 2012 from id profi le3
As the profi le of the community becomes more diverse due to migration, the amount of employees from CALD (cultural and linguistic diverse) backgrounds has increased and it is predicted that the trend will continue as migration increases.
The City will therefore continue to ensure that the demographic profi le of our workforce refl ects that of the communities we serve.
‘… the amount of employees from cultural and linguistic diverse backgrounds has increased and it is predicted that the trend will continue …’
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Budget FTE and Headcount ReportAs at May 15 2013, the City employs more than 600 FTE (full time equivalent) positions in a wide range of areas such planning, project management, community and Place, engineering, corporate and other services.
The schedule below provides a breakdown of the different occupational groups within the City. In addition to its permanent and fi xed term workforce, the City has also has an extensive pool of casual employees (circa 230) who in the main are employed to meet variable and cyclical demand for services in areas such as libraries, leisure centres and our visitor centre.
Division Budget FTE
Permanent Fixed Term
Total Casuals
Chief Executive Offi ce 33.62 23 6 29 0
Corporate 74.42 71 9 80 0
Operations 287.08 269 7 276 5
Place 188.11 201 30 231 224
Planning 67.48 61 5 66 1
Total – City of Swan 650.71 625 57 682 230
Salary and RewardsThe City offers competitive salaries as well as a range of fringe benefi ts to its employees such as discounted leisure centre membership, additional employer superannuation contributions, RDOs (rostered days off) etc. to ensure that is able to attract and retain “the right people”.
Conditions of employment are in the main set out in the Local Government Industry Award (LGIA) as well as Enterprise Bargaining Agreements (EBAs) for the relevant employees.
A job classifi cation system was developed and implemented in 2010 to ensure relativity (internal and external), market competitiveness and fairness in the salaries of employees. Salary increments are implemented annually based on employee performance as demonstrated in the employee’s annual Performance and Development Review.
12
Career DevelopmentA signifi cant number of employees have been appointed and promoted to more senior roles at the City. Notwithstanding this, the City has increased its focus on the development of its employees as a result of the development of its Workforce Plan to ensure that its employees have the capabilities and competencies to deliver the organisational and business outcomes in the short, medium and long term.
To this end, the City currently offers opportunities for secondments (internally and externally), acting higher duty roles, involvement in special projects etc. Employees also have access to our Study Assistance Program by which the City offers both fi nancial assistance and study leave to obtain job related qualifi cations.
‘… The implication on demand for skills and labour for the City is therefore that the labour market will continue to be competitive for the foreseeable future … ‘
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External Labour Supply Statistics provided by Department of Education, Employment and Workplace Relations (DEEWR) confi rmed an employment growth in the number of professional positions between May 2011 and May 2012. DEEWR predicts that there will continue to be growth in these professional groupings in WA albeit at a reduced rate compared to 2011 and 2012.
WA Employment by occupation May 2011 and May 2012
May 2011
May 2012
(‘000s) %
Managers 148.6 155.2 6.5 4.4%
Professionals 240.3 260.3 20.0 8.3%
Technicians and Trades Workers 218.1 224.6 6.5 3.0%
Clerical and Administrative Workers
174.5 168.4 -5.7 -3.3%
Labour market data and the Job Outlook Report by the Department of Education, Employment and Workplace Relations forecasts a strong growth in demand for skills and jobs in marketing, construction, community care and health promotion. The growth for tourism and trades is predicted to be moderate over the next fi ve years.
The demand for skills and labour in the resources sector has not created any noticeable impact on labour supply in WA and predictions are that this trend will continue and fl uctuate depending on the approval start up of major projects such as Gorgon and Wheatstone.
The implication on demand for skills and labour for the City is therefore that the labour market will continue to be competitive for the foreseeable future. The City will therefore have to constantly review its Workforce Strategies to ensure that it is able to attract and retain competent and capable employees to deliver the requirements set out in the Strategic Community Plan as well as the business outcomes specifi ed in the Corporate Plan.
14
Labour Demand and Supply Occupational Group External
Labour Market Demand*†
Current competition for labour
Recent Recruitment Experience
Professions
Architect High Private Sector N/A
Engineer – Civil High Mining /Oil and Gas N/A
Engineering Manager High Mining /Oil and Gas N/A
Engineering Technician High Mining/Oil and Gas N/A
Design Drafter High Oil and Gas N/A
Landscape Architect Medium Construction companies N/A
Surveyor High Mining N/A
Building Surveyor High Private Sector and other Local Government
N/A
Environmental Health Offi cer High Other Local Government N/A
Local Area Planner Medium State Government and Private Sector
Diffi cult to attract candidates with right experience
Business Improvement Medium Private Sector Diffi cult to attract candidates with appropriate skill levels
Tourism Marketing Medium Other Local Government N/A
Project Manager – Construction High Construction companies Candidates with right skills/experience limited
Maintenance Planner High Mining/Oil and Gas
Library Systems Technician Medium Other Local Government N/A
Trades/Operators
Electrician High N/A
Fabricator High Mining N/A
Motor Mechanic High Mining; Oil and Gas N/A
Heavy Duty Mechanic High Mining N/A
Welder High Mining N/A
Plant Operator High Construction; Oil and Gas Diffi cult to attract right experience
Truck Driver – HR Licence Medium Mining N/A
Management/Supervisory
Organisational Planning High Mining N/A
Civil/Earthworks Supervisors Medium Mining N/A
Maintenance Supervisor High Mining/Oil and Gas N/A
Sports Centre Manager High Other Local Government and Private Sector
N/A
Marketing and Communication Coordinator
High Private Sector Competition for people with e-marketing and IT skills.
15
Occupational Group External Labour Market Demand*†
Current competition for labour
Recent Recruitment Experience
Community Care
Bus Driver High Mining/Not for Profi t organisations
Some diffi culties in recruiting people to drive larger vehicles
Activities Assistance High Community Groups and Not for Profi t organisations
Hard to fi ll part time roles for unsociable hours
Customer Service
Customer Advocate High Other Local Government and Not for Profi t
Limited number of good candidates
Customer Liaison Offi cer Medium Private Sector and other Local Government
Diffi culty attracting temp positions
Place Manager High Community groups/Not for profi t organisations
No recent experience
Admin/Business Support
Contract Administrator High Mining N/A
Business Analyst High Mining N/A
Library Clerk Medium Local Government Quality of pool limited
* External Labour Market Demand is based on WA State Priorities Occupation List 2012 and occupations identifi ed as Industry critical with high or medium growth in demand expected for 2012–2015.
† Skills Shortage report produced in June 2012 by DEEWR that summarises national skills shortage research in a variety of industries.
250,000
200,000
150,000
100,000
50,000
0
Fore
cast
pop
ulat
ion
2006 2011 2016 2021 20312026 2036Forecast year (ending June 30)
16
Looking into the FutureAfter analysing our current workforce profi le we will ensure that we have the right people, with the right skills and capabilities at the right time to appropriately respond and deal with our changing community and business environment.
Several impacting factors and strategies for the future of the City are described below. Whilst being cognisant of the challenges ahead, these drivers for change have implications for our Workforce which we will proactively manage and respond to, to ensure that we are consistently able to deliver to our community and customer expectations through our people.
Impacting Strategies and Factors— Internal and External
Place StrategyThe City’s Vision is “One City, Diverse Places” and it is committed to the delivery of services at the following Places—Altone, Midland, Ballajura, Ellenbrook, Rural/Bullsbrook. Our Strategic Community Plan and Place strategy therefore means that:
The City would need to assess the level and range of services required at our respective Places; and
Business Units will be required to deliver their services in a more cross-functional and matrix structure. This will require that employees over time are more multi-skilled and are able to deliver a wider range of services particularly in areas such as Planning, Operations and Place.
Population growthSignifi cant population growth will continue to have a direct impact on the City especially in regard to the demand for the delivery of services to its communities/Places. Continuous growth will happen due to infi ll in established areas and growth in new suburbs—for example, Ellenbrook and new developments in the Swan Urban Growth Corridor that includes Caversham, West Swan (West) and Whiteman, Bennett Springs, Brabham and Dayton.
More people will move into areas served by existing Places, and some new Places may be needed in the future.
Population growth may result in:
Increased demand for services and facilities such as refuse collection, leisure and library services and the age specifi c community for different age groups such as youth groups and aged care; and
Increased need for economic development/activity. The City’s ability to attract business and investment would be a key factor.
With the increasing number of households as well as urban development, the need for planning services will increase.
Forecast population
17
Change in population demographics Government policy and demand for services are changing in response to the change in demographics with the increasing number of CALD citizens as well as the growth in young families settling in the City. The social challenges created by FIFO (fl y-in fl y-out) workers as well as an aging population will:
Increase our communities needs for social services in respect of the above changes.
Make the demand for children, youth and aged care services a key consideration for future planning in services and facilities.
Increase focus on the affordability of housing and associated social services demands. A review of the current service model may be required to meet demands.
Local Government Reform and AmalgamationLocal Government reform may increase the scope and volume of services to be delivered in the short to medium term. Whilst specifi c details are not known, there may be signifi cant integration issues to manage including:
Different approaches to implementation of the Place Strategy with an amalgamated local government.
The use of contracted services—e.g. rubbish collection and delivery of community services through NGOs (non government organisations) versus in-house service delivery.
Differences in systems and technology, work practices, standards and procedures.
Different workforce arrangements, Enterprise Bargaining Agreements and organisation culture (jobs, remuneration, structure and staffi ng).
Use of TechnologyServices and work processes are constantly evolving to take advantage of technology, including:
Increased use of iPads, Skype, Wi-Fi and social media to access information and provide decentralised/mobile services; by staff and customers.
Increased use of “virtual services” e.g. eLibrary, online planning approval systems and other digital applications.
Decentralised offi ces, telecommuting, remote access to services (e.g. using Skype at Place).
CCTV security (fi xed and mobile) making it easier to identify and report incidents.
Community ExpectationsCommunity service expectations are constantly increasing.
Our communities utilise and expect a wider range of services.
The community is better informed and more knowledgeable.
We are increasingly expected to deliver services, customer support and information outside business hours and on weekends.
Policy and Legislative ChangesChanges to policy, legislation and regulations are going to have an impact on our operations. Most of these changes (Public Health Act, Building Act, OSH Act etc.) have a direct impact on our workload, costs and existing resources.
Ageing WorkforceIt is estimated that approximately 25% of the City’s workforce will retire in the next 5–10 years which in turn could be infl uenced by such factors as personal fi nancial position, health and job satisfaction and competency etc.
If we do not continue to focus on career and succession planning, we could encounter a situation where our service delivery to our communities and customers might be impacted due to a loss of corporate knowledge and experience.
Impact of volatile market conditions on the workforce In the most recent resources boom, the City faced challenges in attracting and retaining “the right people with the right skills”. Early indications are that these challenges have decreased, but this experience highlights the impact of job market volatility on the workforce.
The City could therefore experience peaks and troughs in the demand for skills and labour and should constantly assess and analyse the labour market and be able to respond appropriately by means of our Workforce Plan and strategies.
These signifi cant short-term variations in labour demand and supply make workforce planning all the more imperative but also more complicated.
18
Signifi cant Workforce Challenges
Population growth: does not necessarily equate to a growth in City resourceIt is estimated that the City’s current population will increase by approximately 40% to 50% by 2021. Our Strategic Community Plan provides a detailed understanding of community expectations over the next ten years. Community demand for services is expected to increase with population growth. This is already occurring due to the increase in the number of young families and senior citizens in the City.
These changing demographics will lead to an increase in the need for certain services. A spike in demand is expected for services including parenting groups, early childhood programs and aged care amongst others. Further infrastructure within the Urban Growth Corridor such as roads, cycling tracks, parks and leisure centres will also be required.
We have a clear mandate and commitment to deliver services as detailed in our Plans and we will need to deliver them within the approved resources (i.e. workforce, assets and fi nancial). A signifi cant increase in the number of employees would be considered unsustainable and would add considerable cost.
The requirement for both human resource effi ciency and employee engagement to deliver our SCP and business outcomes are therefore signifi cant drivers of the Workforce Plan.
At present and more importantly in the future, workforce effi ciency and effectiveness depends on the City’s ability to:
Attract and retain employees with the right skills.
Consistently align the performance objectives of all of its employees to the SCP and the overall Vision and of the City.
Consistently develop employee performance capability.
Create a productive organisation culture that focuses on and delivers consistent employee performance.
Appropriately manage, reward and recognise employee performance.
Use appropriate and cost effective technology to deliver performance effi ciencies.
Workforce adaptability: the ability to respond to change Throughout the workforce planning process, a constant theme has emerged: change.
The City has experienced signifi cant growth and change over the past 20 years from semi rural/urban shire to one of the biggest Local Governments in terms of geographical size, as well as population. However, at present, the rate of change is unprecedented. These changes are varied and include type of services being delivered to our communities, the change in demographic of our communities, legislative changes and requirements, potential local government reform and amalgamation, streamlining of administrative processes as a result of advancement of technology; to name a few.
In most instances, these changes have signifi cant implications for our workforce at many different levels and the ability to adapt and excel in times of change is of critical importance to the City.
Our Place Based Strategy is an example of our ability to develop and deliver services to our diverse communities/Places. This means that we recognise that a “one size fi ts all” model of service provision does not optimally deliver the outcomes specifi ed in the SCP.
With the full implementation of the Place Based model, the workforce will be more decentralised as a result of a greater focus of service delivery at Place service hubs rather than a centralised offi ce. This has far reaching implications. It changes the way the City operates, from the nature of services required at different areas, to the need for multiple physical offi ces, travelling required by employees and the necessary technology/infrastructure to access information and to provide services remotely.
The City is committed to providing its workforce with the necessary support and development opportunities to make this transition as effi cient and effective as possible.
This guidance and support amongst others consists of:
Leadership development and coaching to effectively manage change and performance.
Establishment of multidisciplinary/matrix teams to work more collaboratively across different functions.
Learning and development opportunities for employees to upskill and gain knowledge/skills in addition to an employee’s traditional job competencies.
Health and wellbeing programs to ensure that employees are both mentally and physically able to meet the challenges.
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19
An Ageing Workforce: meeting its challenges According to data release by the Australian Bureau of Statics in 2010, the Australian population is aging. Those aged from 50 to 59 years grew from 1.8 million to 2.6 million during the ten years from 1996–2006 and similar trends can be observed in other age groups (see graph below). The same shift can be seen in the demographic profi le of the workforce. In Western Australia people aged 45 years and older account for 37% of the eligible labour force in 2007 compared with 31% ten years earlier.
The population demographics from 1996–2006
Another factor to be considered is that the age at which people are choosing to retire has increased over the past decade. This will increase further with the Federal Government’s announcement in the 2009/10 budget to increase the pension age to 67 years from 2023. Life expectancy has also increased due to medical advances and a general increase in the standard of living (see graph below). In contrast, Australia’s lower rates of fertility (which is consistent with other fi rst world countries) indicate that the number of younger workers entering the labour market will continue to fall.
Life expectancy rate in Australia over 1981–2009
Source: Australia Historical Population Studies
Approximately 25% of the City’s workforce will retire in the next 5–10 years and this segment of our workforce holds signifi cant corporate knowledge and experience. If left unchecked, the City could face the prospect of having a large amount of corporate knowledge and experience walking out of the door with no appropriate replacement. Further, market volatility and economic environment in the resources industry will create challenging variations in the demand for skills and labour.
A concerted and planned effort to mitigate the impacts of an ageing workforce is required and it is being done in a two-pronged approach: 1. The City actively supports
employees to remain in the workforce beyond the average early retirement age of 60.
2. Concurrently it also needs to create opportunities for younger, less experienced employees and emerging leaders, which will enable the City to proactively identify and manage the risk of loss and transfer of corporate knowledge and skills.
Our Workforce Plan takes cognisance of these challenges and addresses them in the following ways: Career and succession planning for
critical roles, particularly for those roles whose incumbents are in the “likely to retire” segment of our workforce.
Where agreed with the employee, a work shadowing arrangement is put into place and the employee mentors another employee identifi ed as their successor in the role.
Flexible work and transition to retirement work arrangements for the relevant employees.
Corporate knowledge management and capturing by means of process mapping etc.
20
Workforce Strategies 2013 – 2018Workforce strategies were identifi ed and developed in response to our workforce challenges. These strategies were developed in consultation with a wide cross-section of stakeholders which included the CEO, Executive Managers, Business Unit Managers and a signifi cant number of core members of various Business Units such as Coordinators and Supervisors.
The Strategic Community Plan was used as a pivotal reference document to guide and provide context for development of our Workforce Strategies. The City delivers services to its communities in the main by means of its employees and the linkage of the SCP to the Workforce Plan is clearly demonstrated by the SCP Outcome (G2), Optimised use of City resources – Improve (employee) capability and capacity.
The strategies in the Workforce Plan are not a once-only fi x-all to be used, then shelved. Our workforce strategies will be reviewed annually to determine whether they are relevant and in step with any changes to community and customer needs and expectations, as well as our changing environment and labour market.
Our Workforce Strategies are grouped into key areas of workforce management and they provide a template for the implementation the Workforce Plan for the next fi ve years.
Workforce Planning and Resourcing Attraction and Recruitment Leadership Development
Analysis of internal and external environment, including labour demand and supply.
Determining short, medium and long term resource requirements.
Workforce Planning and scheduling.
Maintain a competitive Employee Value Proposition to attract and retain “the right people”.
Develop and implement robust and fi t for purpose recruitment techniques and strategies.
Appropriate use of recruitment technologies (e.g. online media, e-job boards etc).
Active management of our applicant candidate pool.
Training and accreditation of all recruitment panel members.
Continued development and implementation of our leadership program.
Development and implementation of our Leadership Competency and Accountability Matrix.
Continued development and implementation of our of management accountability framework.
Structures, Process and Job Design Employee Retention, Engagement, Safety & Health
Manage Employee Performance and Development
Review of Business Unit (BU) structures to optimise (Place etc.) service delivery.
Review Position Descriptions to align with Business Unit structures.
Clearly defi ne employee accountabilities.
Maintain a competitive Employee Value Proposition (salaries, fringe benefi ts, fl exible work arrangements and environment) to retain “the right people”.
Actively measure and manage employee engagement.
Maintain a safe and healthy workforce and workplace.
Clarifi cation on Employee performance expectations.
Succession planning for critical roles. Link employee learning and development to performance expectations and accountabilities.
Ongoing development and expansion of our e-learning infrastructure.
21
FTE requirements 2013 – 2018Over the past four years the City has increased its FTE establishment by between 1.5–2% per annum. In 2012/13 this fi gure was 3.5% as it included additional resources identifi ed through the newly developed Strategic Community Plan. Future FTE growth projection is factored at a rate of 2% from 2014/15 onwards.
The table below shows the current organisational FTE for 2013/14 and the forecasted FTE establishment for 2014/15 to 2017/18. These fi gures will be reviewed on an annual basis in consultation with both internal and external stakeholders.
FTE 2013/14 Establishment
FTE 2014/15 Forecast
FTE 2015/16 Forecast
FTE 2016/17 Forecast
FTE 2017/18 Forecast
653.44 666.51 679.84 693.44 707.30
The breakdown of forecasted FTE for each division throughout fi nancial years of 2031–2018 is listed below. The forecasted FTEs were made in consideration of the Strategic Community Plan. The costs for the increase in FTEs were calculated as part of the Long Term Financial Plan.
‘… Our workforce strategies will be reviewed annually to determine whether they are relevant and in step with any changes to community and customer needs and expectations, as well as our changing environment and labour market … ‘
22
FTE Cost Modelling In the fi rst year of employment the total cost of employment for 1 FTE is estimated at an average of approximately $103,094.00
The underlying assumptions include:
One-off pre-employment and recruitment cost estimated at 20% of employee’s salary. These costs include recruitment advertising and recruitment agency fees where incurred, pre-employment medical, drug and alcohol testing, offi ce equipment and furniture, motor vehicle where required, induction and training costs, information technology set up costs, employee security card access etc. and any other role specifi c equipment required.
The average salary at the City is $73,296, which is the maximum of our job classifi cation level 6 for the current fi nancial year.
Ongoing employee benefi ts are estimated at an additional 20% of annual salary. This includes superannuation, leave, worker compensation and insurance and fringe benefi ts tax where applicable.
The total cost of employment is therefore = one of cost of recruitment/7 years average length of employment + ongoing cost of employment = 25%.
Projected Staff Increase 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018
Total number of new FTE positions 7.9 13.1 13.3 13.6 13.9
Total cost of new positions $723,798 $1,248,234 $1,311,646 $1,388,166 $1,468,452
Note: Total cost includes an average annual salary adjustment of 3.5 – 4%.
23
Skills and Capabilities for the FutureCritical workforce skills and capabilities required to enable our employees to deliver the City’s Vision of “One City, Diverse Places” as well as the delivery of our Strategic Community Plan, were identifi ed through the Divisional Workforce Plans.
The skills and capabilities across the fi ve Divisions are listed as follows: Change management – manage workplace and cultural change, lead continuous improvement,
infl uence and gain support of key people.
Performance Management – manage employee accountability and the delivery on business outcomes, provide performance feedback and actively manage both poor and superior performance as well as the understanding and implementation of HR processes.
Leadership and communication skills for all Managers, Coordinators and Supervisors as well as Management accountability training.
Frontline customer service skills – more community expectations and customer service requirements at Place.
People management skills – ability to consistently recruit the “right” people, manage team and individual performance, develop and retain good staff.
Project Management – coordinate and manage projects, work on a project basis, integrate Place based projects across City of Swan.
Safety leadership and management – to make visible, priority, reduce incidents, contractor duty of care.
Place based service delivery – develop capability for Place services, more community expectations, changing customer base – age, CALD.
Mechanical/technical skills for changes in technology of vehicles, tools, equipment.
City of Swan systems and process effi ciency – equip current and potential Managers and Coordinators to use all key systems and processes. Develop new processes, improve existing processes, workplace effi ciency and productivity.
Community engagement – deal with requests, interests, concerns and complaints from community and councillors, coordinate and manage relationships with community stakeholders.
IT systems and technology – know the options, assess feasibility, equip staff to use (e.g. systems, data bases, internet, GPS, iPads).
Identifi cation of business trends and new developments in the Small and Medium Enterprise areas.
Business management skills – analysis of business results and identifi cation of business trends and data, manage service levels and business (workforce, fi nancial and assets).
Contract Management – services, standards, costs and safety.
Marketing and communication – promote services, use social networking, develop websites, eMarketing. Develop and coordinate community information and education programs.
Commercial and entrepreneurial approach – identify opportunities, develop sponsorships, processes, workplace effi ciency and productivity.
24
Summary of Actions in Workforce Plan The specifi c details and timeframes of the Workforce Strategies are shown in the tables below.
Workplace Planning and ResourcingActions Responsibility 2013/2014 2014/2015 2015/2016 2016/2017 SCP
links (refer to p.6)
Budget per
Annum
Review employee agreements and conditions to enable more fl exible use of staff and increase mobility to different location.
HRBusiness Unit Managers
X XB1.1; S1.1; S2.1
N/A
Monitor service delivery levels/options to the community and make appropriate changes to human resources as required.
Business Unit Managers X X X X S2.1 N/A
Determine more effi cient administrative process and commence on process improvement.
ExecutiveBusiness Unit Managers
X X X S2.1 N/A
Review and update workforce FTEs forecasts and strategies annually according to service level requirements specifi ed in the Corporate Business Plan.
HRBusiness Unit Managers
X X X X S2.1 N/A
Improve quality of HR data and analysis to enhance decision making of human resources.
HR X X X G2.1 N/A
Identify critical roles as part of workforce planning process and develop succession plans. Identify and develop immediate and longer term replacement.
Business Unit ManagersHR
X X X X G2.1 N/A
Structure, Process and Job Design Actions Responsibility 2013/2014 2014/2015 2015/2016 2016/2017 SCP
linksBudget
per Annum
Determine long term optimal structure of Business Units to enhance mobility/fl exibility of workforce.
ExecutiveBusiness Unit Managers
X X X X S2.1 N/A
Review and update all position descriptions to clearly defi ne roles and accountabilities of employees.
HRBusiness Unit Managers
As required
As required
As required
As required S2.1 N/A
25
Attraction and Recruitment Actions Responsibility 2013/2014 2014/2015 2015/2016 2016/2017 SCP
linksBudget
per Annum
Monitor labour/workforce demand and supply data and produce management information on skills shortage for distribution to executive managers and managers as part of Workforce Planning process.
HR X X X G1.1 N/A
Review the City’s attraction methods and promotional materials. Proactive management candidate pool in skills shortage areas.
HR and external consultants
X X X X G1.2 $20,000
Maintain ongoing relationships with professional bodies/associations/local community to enhance “employer of choice” reputation.
HR X X X X G1.2 TBA
Review and improve our Employee Value Proposition where possible. HR X X X G1.2 TBA
Develop and deploy recruitment training for all recruitment panel members.
HRBusiness Unit Level employees
X X X G2.1 TBA
Review and improve our online recruitment system, appropriate use of social media etc.
HR X X X G2.1 $20,000
26
Employee Retention, Health and SafetyActions Responsibility 2013/2014 2014/2015 2015/2016 2016/2017 SCP
linksBudget
per Annum
Monitor turnover trends and indicators of external competition such as remuneration.
HR As required
As required G1.2 N/A
Review current rewards and recognition system and recommend changes to Executive Management Team.
HR X X X G1.2 N/A
Update fl exible workforce arrangements/policies within the City. Emphasis to be placed on telecommuting, job sharing and post retirement employment arrangements.
HR X X G1.2 N/A
Continue with wellness programs such as cancer screening, physical health assessment and participation in City to Surf.
OSH X X X X G1.2 $30,000
Ensure the continued improvement and compliance of the City’s Health and Safety program and initiatives.
OSH X X X X G1.2 N/A
Leadership Capability and AccountabilityActions Responsibility 2013/2014 2014/2015 2015/2016 2016/2017 SCP
linksBudget
per Annum
Continue to develop and deploy the Leadership Development Program.
HR and Executive Managers
X X X X G1.2 $150,000
Development and deployment of the management accountability framework that will inform manager and leaders of different levels of operational accountabilities.
HR and OPD X X X G1.2 N/A
27
Performance and Development Actions Responsibility 2013/2014 2014/2015 2015/2016 2016/2017 SCP
linksBudget
per Annum
Development and deployment of an Employee Performance framework.
Manager HR, Executive Managers
X X X G2.1 TBA
Implement a Learning and Development framework which links with and is aligned to the Employee Performance framework etc.
HR and all city staff X X G2.1 TBA
Continue to expand our online learning capability and align it to the L&D and Employee Performance frameworks.
HR X X G2.1 $21,000
Support the development and deployment of our Customer Service program.
Place Division and HR X X G2.1 $75,000
28
Measuring Our Success
Report areas of focus Reporting schedule
Level of reporting Audience Frequency Generated by
Community Services Perception survey regarding delivery of SCP
Organisational Level Employees of the City Biannually OPD
Measurement of Business Unit outcomes Divisional LevelBusiness Unit Level
Executive ManagersBusiness Unit Managers
Annually OPD
Projected and actual FTE numbers and budgets as per plans (Workforce and Financial Plans)
Business Unit Level Executive ManagersBusiness Unit Managers
Annually Finance HR
Turnover trends for all staff (overall % and by tenure)
Organisation Level Divisional Level Business Unit Level
Executive managersBusiness Unit Managers
Annually HR
Workforce Profi le (age, gender and CALD)
Organisation Level Divisional Level
Executive Managers Annually HR
Number of Succession Plans completedOrganisation Level Divisional Level Executive Managers Annually HR
Profi le of new recruits by age, gender, previous employment, source of recruitment
Organisation Level Divisional Level
Executive Managers Business Unit Managers
Annually HR
Number of leaders who attended leadership program and feedback
Organisation Level Divisional Level
Executive Managers Annually HR
Number of skills development applications Divisional Level Business Unit Managers Quarterly HR
OPD = Organisational Planning and Development Business UnitHR = Human Resources Business Unit
Reporting ScheduleThe ultimate measure of success of the Workforce Plan is if the workforce is able to meet the challenges described in the report. To ensure the strategies provide the workforce and infrastructure/systems the City needs, the following schedule has been developed to track and monitor progress.
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