International Local Government Infrastructure and Asset Management Conference

1. International Local Government Infrastructure and Asset Management Conference Delivering the next generation of infrastructure projects amid strong competition for skilled workers Bob Paton Promoting productivity, sustainability and strategic workforce development in manufacturing.

2. Manufacturing Skills Australia • about MSA • workforce development • engineering workforce • today’s workforce • attracting and retaining talent

3. Manufacturing Skills Australia • national body responsible for ensuring that manufacturing enterprises have the workforce skills they need to be globally competitive • one of 11 national Industry Skills Councils established and funded by the Australian Government and supported by industry • ASIC registered public company – not for profit, owned by 14 industry organisations (7 employer, 7 unions) with an 11 person Board of Directors • operate in the vocational education and training (VET) sector as well as whole of tertiary sector

4. Roles for Manufacturing Skills Australia Major roles span: • develop and maintain national, industry endorsed Training Packages - to establish skill standards and provide a framework for skills development • support the implementation of training - through advice and resources, workforce development support and brokerage of Government funded programs

5. Roles for Manufacturing Skills Australia (cont.) Major roles span: • provide leadership to support economic and environmental sustainability • provide government with industry intelligence - to inform the development of policies and programs aimed at workforce development.

6. Manufacturing Skills Australia • Manufacturing Industry Skills Council – ABN 88 006 441 685 • Company owners/members ASIC registered public company Owned by 14 industry organisations (7 employer, 7 unions)

7. Manufacturing Skills Australia Governance structure Board of Directors 11 people appointed by company owners/members • Board Sub-Committees • Executive Committee • Audit and Risk • Aeroskills • Furnishing • Manufacturing, Engineering & Sustainability • Process Manufacturing & Laboratory Operations • Textile Clothing & Footwear • NSW ITAB Chief Executive Officer MSA staff

8. Coverage of Manufacturing Skills Australia MSA coverage spans across manufacturing from: • petrochemicals to clothing • watchmaking to shipbuilding • shoes to mining equipment • mattresses to jewellery • laboratories to concrete pipes • welding to windows • fitters to violin makers • cement to textiles • plastics to steel • cabinet makers to aircraft engineers. Does not cover: food/pharmaceuticals or forest products/paper.

9. Addressing skills needs in industryWorkforce development • business planning • workforce organisation • workforce capability and needs analysis • current skills held • identifying skills gaps • filling skills gaps • up-skilling existing workers • recruit existing-skilled workers • buy in (contractors)

10. Demand for engineering workers • The current level of investment in private infrastructure projects as a result of the mineral boom is unprecedented. • By mid-2013 in Queensland alone, for infrastructure projects with a value in excess of $300 million, some 30,000 construction workers a month will be needed across the mining, coal seam gas/liquid natural gas and public infrastructure sectors. (Construction Skills Queensland)

11. Workforce challenges facing the engineering industry • the ageing of the engineering workforce • the very low number of women in engineering • access to education and training in regional areas • mobility of the workforce resulting from some sectors being perceived as more attractive • widening gap between supply and demand for engineering workers • trade qualified workers tend to retire at the standard retirement age unlike less qualified or more qualified workers

12. Workforce challenges facing local government engineering employers • only 20% of the engineering workforce is employed in the public sector, mainly in rail • large demand fluctuations in government investment in infrastructure • outsourcing of engineering work has led to the loss of relevant skills from the public sector

13. Today’s workforce • consists of three generations – Baby boomer, Generation X and Gen Y • financial constraints will mean that baby boomers are likely to work past retirement age • baby boomers tend to hold management or senior roles in organisations • the other generations may feel there are limited career options • there are less people in the Gen Y workforce than there are people in the Baby boomer workforce

14. Australian population 2012 Gen Y v Baby Boomer

15. The engineering workforce • The professional engineering workforce

16. The engineering workforce • The engineering workforce - technicians and trades

17. Developing, engaging and retaining your current workforce Attracting and retaining skilled staff requires you to become an ‘Employer of Choice’.

18. Developing, engaging and retaining your current workforce Factors that create excellence: • The quality of working relationships • Workplace leadership • Participation in decision making • Clear values • High levels of personal safety – physical and psychological • Feedback • Autonomy and uniqueness • Sense of ownership and identity • Learning • Having fun • Community connections

19. Strategies to attract the best talent The Gen Y workforce • under 30 • technology savvy • highly interconnected • high level of social consciousness • want to work for organisations that reflect their values

20. Strategies to attract the best talent Gen Y at work want: • to continue to learn and grow • to make an impact and contribute to the company’s vision • frequent ongoing coaching by their managers • public recognition • ongoing feedback • flexibility

21. Retaining and developing talent People who enjoy their work, particularly its intrinsic features, are more likely to remain with their employer. The ‘learning climate’ of an organisation determines the extent to which skilled employees are retained and how their skills are used to greatest effect.

22. Retaining and developing talent • Factors that impact retention include: • opportunities to learn and progress in a career • application of high-performance work practices • access to nationally recognised training

23. Retaining and developing talent The use of nationally recognised training has been strongly linked in the research • to employees deciding to stay with an organisation, and • with employers being better able to use the full range of their employees’ skills

24. Retaining and developing talent • Create an organisational climate in which employee learning, growth and development are fostered and where people feel that their best opportunities and experiences for the future will be realised. • Training is a crucial component of the learning climate of an organisation, but equally important is ensuring that training is mutually beneficial. • The old ways don’t work.

25. Mature age workers The advantages of retaining older workers: • avoiding labour and skills scarcity and associated costs relating to recruitment and retirement • retaining valuable experience and retention of knowledge within the organisation • improving work satisfaction, thereby contributing to improved quality and productivity • creating greater flexibility and synergy through workplace diversity

26. MSA is a proud member of the Industry Skills Forum The Industry Skills Council Forum (‘ISC Forum’) plays a key role in bringing together the 11 Industry Skills Councils (ISCs) to progress cross industry priorities and support the effective operation of Australia’s National Training System. The ISC Forum recognises that ISCs are autonomous, not for profit, independent bodies under the Corporations Act, governed by their respective boards, and which choose to come together for the common good. The ISC Forum’s initiatives will support the ISCs’ formal roles and responsibilities and supplement each Council’s individual activities and charter. www.isc.org.au

27. Level 3, 104 Mount Street North Sydney NSW 2060 (PO BOX 289 North Sydney NSW 2059) AUSTRALIA Phone +612 9955 5500 Fax +612 9955 8044 Email info@mskills.com.au Webhttp://www.mskills.com.au