New ways of thinking - Doing business differently - National Skills Shortage Strategy
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National Skills Shortage Strategy
for Local Government
New ways of thinking –
Doing business differently
National Local Government Skills Shortage Steering Committee
May 2007Local Government Managers Australia PO Box 615 Port Melbourne VIC 3207 T: 03 9676 2755 F: 03 9676 2311 Email: national@lgma.org.au Website: www.lgma.org.au The National Skills Shortage Strategy for Local Government was researched and developed by Bev Kliger under the auspice of the National Local Government Skills Shortage Steering Committee. The National Skills Shortage Strategy for Local Government was funded by the members of the National Local Government Skills Shortage Steering Committee. May 2007
Contents
Glossary of Terms ___________________________ 3 Section 4: Strategic Response to
Skills Shortage _____________________________ 40
Acknowledgements __________________________ 4
4.1 Introduction _____________________________ 40
Executive Summary __________________________ 6
4.2 National Skills Shortage Strategy for Local
Section 1: Local Government National
Government ____________________________ 40
Alliance - Addressing a National Issue _______ 16
4.2.1 Vision ___________________________ 40
1.2 Purpose of the Strategy ___________________ 17
4.2.2 Mission __________________________ 40
1.3 Background_____________________________ 18
4.2.3 Aims ____________________________ 40
1.3.1 National Skills Shortage Forum
– April 2006 ______________________ 18 4.2.4 Strategic Objectives _______________ 41
1.3.2 National Local Government Skills 4.3 Platform of Initiatives _____________________ 42
Shortage Steering Committee _______ 19
4.4 Strategic Objectives ______________________ 43
1.3.3 The Importance of Local
4.4.1 Strategic Objective 1. – Local
Government – Why it matters _______ 19
Government Career Pathways ______ 44
1.3.4 Delivering Key Government
4.4.2 Strategic Objective 2. – Leadership
Services _________________________ 20
in Local Government_______________ 50
1.3.5 Significant Role in the Australian
4.4.3 Strategic Objective 3. – Local
Economy ________________________ 21
Government an Employer of Choice __ 55
1.3.6 Local Government a Major
4.4.4 Strategic Objective 4. Image ________ 60
Employer ________________________ 22
Section 5: Strategies for the Future __________ 63
Section 2: Skills Shortage and
Local Communities _________________________ 23 5.1 Recommendations for Action _______________ 63
2.1 What is Skills Shortage? __________________ 23 5.2 Key Initiatives for Action ____________________ 66
2.1.1 The Causes ______________________ 23 5.2.1 Local Government Centre for
Excellence (Leadership). ____________ 66
2.2 How dramatic is skills shortage for
Local Government? ______________________ 25 5.2.2 New Ways of Working _____________ 67
2.3 Impact of Skill Shortage – Why it matters ____ 31 5.2.3 Training and Professional
Development _____________________ 67
Section 3: Snap Shot of Current Work on
Skills Shortage and Workforce Planning ______ 33 5.2.4 New Worker Attraction _____________ 68
3.1 State projects ___________________________ 33 5.2.5 Promoting Local Government as
Employer of Choice________________ 68
3.1.1 Skills Shortage and Workforce
Planning _________________________ 33 References _________________________________ 70
3.1.2 Ageing Workforce _________________ 34
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3.1.3 Attraction Strategies / Employer
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of Choice ________________________ 35
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3.1.4 Careers Marketing _________________ 36
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3.1.5 Education and Training _____________ 37
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3.1.6 Para-professionals Strategies _______ 38
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3.1.7 Additional Strategies _______________ 39 St
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NatGlossary of Terms
BTRE BUREAU OF TRANSPORT AND REGIONAL ECONOMICS
DEST Department of Education, Science and Training
DEWR Department of Employment and Workplace Relations
DIMA Department of Immigration and Multicultural Affairs
The Department changed its title in early 2007 to Department of Immigration and
Citizenship
DOTARS Department of Transport and Regional Services
Generation Y Australians born between 1980 and 1994, the students in secondary and tertiary education
and those entering the workforce.
LGMA National Local Government Managers Australia
Skills Shortage “A skill shortage exists when the demand for workers for a particular occupation is greater
than the supply of workers who are qualified, available and willing to work under existing
market conditions.”
Steering Committee The Local Government Skills Shortage Steering Committee
The Strategy The National Skills Shortage Strategy for Local Government
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7Acknowledgements
Many people assisted in the development of the Leo Jensen Chair, Local Government Planning
Strategy, providing valuable insight, information and Network (Representing the
expertise. It is impossible to thank all the individuals, Planning Institute of Australia)
however of particular importance and value was the
Heather Nash Representing, Australian Library
information provided by representatives from Local
and Information Association
Government and peak professional bodies who raised
issues and provided examples of good practices. Ross Moody Executive Officer, Institute of Public
Works Engineering Australia (WA)
The depth of knowledge and expertise offered by
the members of the National Skills Shortage Steering Liz Razzano Representing, Local Government
Committee to the project management team ensured Human Resource Managers
that the Strategy was comprehensive and well Gill Hallam Representing, Australian Library
thought-out. The input from the Steering Committee and Information Association
was keenly appreciated as members and proxy
representatives of the Steering Committee provided Bruce Morton President, Australian Institute of
their time voluntarily. The Steering Committee Environmental Health
members and proxy representatives are:
Adrian Beresford Wylie CEO, Australian Local
Government Association
Lyn Russell Director, Local Government
Managers Australia Kaye Mills Manager, Queensland Division,
Chair of the Steering Committee) Planning Institute of Australia
Ray Pincombe Executive Member, Local Waikay Lau National CEO, Australian Institute
Government Managers of Environmental Health
Australia
Di Jay National CEO, Planning Institute of
Chris Champion National CEO, Institute of Public Australia
Works Engineering
Sue Hutley CEO, Australian Library and
Australia
Information Association
Jenny Merkus President, Local Government
Bill Burns Executive Officer, Australian
Community Services
Institute of Building Surveyors
Association of Australia
Michael Sewell Convenor, Local Government
Finance Professionals NSW
Kevin Skauge Chief Executive Officer, Australian
Institute of Building Surveyors
Kevin Lowe National Director, Parks and
Leisure Australia
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NatExecutive Summary This Strategy is developed with a view to focusing
action across the sector on key elements that will
address the effects of skills shortage and seek
Introduction resources and support from stakeholders for
implementation of various responses.
Australia is confronted with the global phenomena
of technological and demographic changes that are
slowing growth of the workforce and dramatically National Skills Shortage Forum
changing the way we work1. These national and
global trends are contributing to the skills shortage In April 2006, Local Government Managers Australia
threatening Australian Local Government. (LGMA) facilitated a Skills Shortage Forum in Canberra
to explore and define skills shortage issues in Local
Local Government is an employment and economic Government.
driver that delivers key social, environmental and
economic services to communities across Australia2. At the Forum, the Local Government peak professional
To be effective, Local Government requires a skilled bodies committed to work with their members and their
workforce, but it competes with other tiers of sector to ensure Local Government services continue
government and the private sector to attract and retain to meet community needs and expectations by:
skilled staff. • Defining what Local Government stands for and
Nonetheless, Local Government is well positioned to promoting a sector-wide approach to presenting
address skills shortages. Local Government across a positive image
Australia is developing a diverse range of workforce • Educating, raising awareness and establishing
planning initiatives that take into account the different pathways to diverse careers in Local Government
aspects of regional, rural and urban locations. These
workforce initiatives include new ways of working with • Building modern Local Governments,
each other, with local businesses and communities, characterised by new styles of leadership, that
and with its current workforce. will encourage new ways of doing things through
empowerment, knowledge building, work
The breadth and diversity of issues faced by Local re-design and use of technology
Government in addressing skills shortages are
reflective of the challenges faced by other professions • Transforming Local Government into an employer
and industries in Australia. Consequently, investment of choice through adoption of leading HR
in the strategies proposed in this National Skills practices.
Shortage Strategy for Local Government (the Strategy)
provides a unique opportunity to demonstrate the An outcome of the Forum was the formation of a
extensive array of innovations in workforce planning National Local Government Skills Shortage Steering
and development. Moreover, Local Government Committee to:
innovations to address skills shortage could be
emulated by other sectors, organisations and • Audit current initiatives being undertaken to
industries. address the Skills Shortage issues in Local
Government
This Strategy has been created through the
collaboration of national peak professional bodies • Identify and consider the gaps in the various
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who have established a National Local Government initiatives being undertaken
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Skills Shortage Steering Committee (the Steering
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• Develop and promote coordinated sector-wide
Committee). The Strategy’s intended audience
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strategies to address Local Government Skills
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includes the Local Government sector, State,
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Shortage issues
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Territory and Commonwealth Governments,
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peak professional bodies, and education • Negotiate with and advocate to relevant State,
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Territory and Commonwealth agencies to
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and training organisations.
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me 1 Leitch 2006 Review of Skills, Prosperity for all in the global economy – world class skills final report, Treasury www.hm-treasury.gov.uk/leitch
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2 Department of Transport and Regional Services (DOTARS), 2006, Local Government National Report 2004-05 on the Operation of the Local Government
(Financial Assistance) Act 1995 Appendix G
200
7access relevant programs and secure funding major economic driver in many regional communities,
opportunities for the implementation of Local providing the majority of employment opportunities,
Government Skills Shortage strategies stimulating business and delivering social, recreational
and community services. Without effective Local
• Communicate the Forum outcomes and
Government, local economies and communities would
proposed implementation plan to key
struggle to operate, especially in regional Australia.
stakeholders including State, Territory and
Commonwealth Ministers responsible for Local
Local Government is responsible for the planning,
Government.
delivery and maintenance of key and essential
infrastructure and services to communities throughout
The Steering Committee draws on the knowledge,
Australia. Increasingly, it is becoming the principal
interests, skills and expertise of the peak professional
provider of these services to local communities
bodies aligned with Local Government. It brings together
on behalf of State, Territory and Commonwealth
rural, regional, urban and remote Local Governments
Governments.
and their peak professional bodies to develop a strategy
that sets out ways Local Government can respond to
Local Government is also a significant employer in
the challenge of skills shortage. The Steering Committee
Australia, employing approximately 165,000 people, or
draws together representatives from:
1.3 per cent of Australia’s labour force3. Furthermore,
Local Government employment has grown by 18 per
• Australian Institute of Building Surveyors
cent in the 5 years from 2000 to 2005.
• Australian Institute of Environmental Health
In addition, Local Government is a major contributor
• Australian Library and Information Association to Local, State and National economies, with an
• Australian Local Government Association approximate expenditure of $18.3 billion, representing
2.3 per cent of Australia’s Gross Domestic Product4.
• Institute of Public Works Engineering Australia
Local Government plays a key role in ensuring
• Local Government Community Services
economic and infrastructure development in local
Association of Australia
communities due to its regulatory function in relation to
• Local Government Finance Professionals planning, building and resource management. At the
same time Local Government is a major provider of a
• Local Government Human Resource Managers
diverse range of services to local communities. These
• Local Government Managers Australia services including roads and related infrastructure,
recreation centres, parks and gardens, community
• Parks and Leisure Australia libraries, community education and support services
as well as home and community care services for older
• Planning Institute of Australia.
people and those with a disability.
The strength of the commitment of the members
of the Steering Committee is borne out with each
organisation providing funding to contract a project The Skills Shortage Problem
manager to develop the National Skills Shortage
Strategy for Local Government. Skills shortage is a major issue confronting Australia’s
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workforce, as the Australian workforce is not growing
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fast enough to keep up with the demand for
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labour and the particular skills required by many
An Important Role
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industries.
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Local Government is an essential component
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The labour market in Australia is ageing,
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of Australian governance, economic and social
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with 37 per cent of Australia’s
development. Significantly, Local Government is the
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3 PricewaterhouseCoopers, 2006, National Financial Sustainability Study of Local Government Commissioned by the Australian Local Government Association o rta
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Natworkforce over the age of 455. At the same time, the • Accelerated demand for services and infrastructure
fall in the number of young people of working age will associated with a dramatic population growth in
lead to a drastic decline in the growth of the Australian regional and rural municipalities chosen for their
workforce. ‘sea change’ and ‘tree change’ lifestyles
• Growth in the population over 65 years of age,
As Local Government’s workforce is substantially
who require aged care and support services as
made up of workers over 45 years of age, it faces a
they become frail and infirmed, but chose to ‘age
significant challenge in filling the employment gaps as
in place’.
older employees retire and leave the workforce. In
particular, Local Government will feel the impact of
This increase in demand for Local Government
the reduction in Australia’s workforce as a substantive
services is borne out in expected growth in
proportion of its workforce sits within the five
employment in Local Government6. However, the
occupations with the highest projected workforce
ability to meet this estimated growth is dependant
reductions:
upon the capacity of Local Government to find
appropriately skilled staff at the same time that it is
• Intermediate Clerical/Service workers
confronted with a current and looming skills shortage.
• Professionals
As a result, Local Government across Australia has
• Tradespeople
recognised the need to develop strategies that will help
• Elementary Clerical/Service workers them attract and retain skilled labour and professionals.
• Associate Professionals. Extensive work is being undertaken on skills shortage
and workforce planning by Local Government
These five occupations encompass key Local associations and peak professional bodies across
Government workforce areas, including planners, Australia. The work encompasses research into skills
tradespeople, environmental health officers, engineers, shortage, perceptions of Local Government as an
building surveyors and building inspectors. employer, development of initiatives to promote and
develop Local Government as an employer of choice,
and investment in training programs in collaboration
The Impact of Skills Shortage with educational institutions.
Skills shortages undermine the capacity of Local
Government to provide essential and desirable
The Strategy – A Response to
services, negatively impacting on local economic
Skills Shortage
development and local communities. At the same
time, the demand for Local Government services is
The Strategy has been developed to:
growing due to a combination of factors, including:
• Present an overview of the complexity of issues
• Growth in the national economy
confronting Local Government
• Transfer of functions and responsibilities to
• Deliver suggested responses
Local Government from State, Territory and
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Commonwealth Governments • Demonstrate examples of good practices
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adopted to address the complex issues relating
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• An increase in the size of the population over
to skills shortages
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55 years of age, with associated increased
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demands for recreational and community • Propose a number of strategic approaches to
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services as people retire and pursue tackle the issue of skills shortage.
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6 Government and Community Safety industry sector estimates developed by Monash University Centre of Policy Studies at December 2005
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7The National Strategy Vision 1. Local Government Career Pathways - To
educate, raise awareness and establish pathways
Australian Local Governments with the capacity to to diverse career opportunities available in Local
provide a full range of high quality, best value services Government.
and facilities that meet their communities’ needs and
expectations. The current issues and strategic responses
developed include:
The National Strategy Mission
• Recruitment – Attracting new recruits and
Maintain a strategic alliance between Local offering career pathways to school leavers
Government peak professional bodies and Australian and graduates through apprenticeships,
Local Governments to promote workforce planning traineeships, cadetships, scholarships,
that meets the future labour needs of Local mentoring and support programs, as well as
Government across Australia. developing para-professional careers
• Retention – Retaining existing staff and
The National Strategy Aims
re-engaging former employees through
professional development, re-skilling and
1. To provide a National Framework to assist
facilitating secondments across Local
Local Government to respond to the challenge
Government and the private sector.
of delivering efficient and effective services
when faced with the current and looming Skills
2. Leadership in Local Government - To build
Shortages
and showcase 21st century Local Government
2. To present a range of ideas on new ways for business practices that empower, build knowledge
Local Government to do business, taking into and effectively use resources and technology.
account:
The current issues and strategic responses
• Professional roles and tasks to be performed developed include:
• Impact of location on attracting employees • Building strong leadership teams that enhance
particularly in rural and regional areas the leadership capacity of Local Government
CEOs and senior staff
3. To promote Local Government as Employer
of Choice eg: ‘Great Place to Work’, with • Working collaboratively and cultivating alliances
opportunities at all career stages across Local, State and Territory Governments
and the private sector to facilitate resource
4. To work collaboratively with key stakeholders,
sharing and alleviate the demand for skilled
including peak professional bodies, State,
workers
Territory and Commonwealth Governments,
to fund and implement a range of innovative • Increasing work participation by the
programs to address the workforce needs of underutilised local populations, to enhance
Local Government today and in the future. local economies, improve local employment
prospects and recognise the key role Local
Government plays in regional areas.
A Platform of Initiatives
3. Local Government as an Employer of
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To aid implementation of the National Strategy, a Choice - To promote the use of flexible
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Platform of Initiatives (the Platform) has been created and leading edge human resource
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based on the four strategic objectives of the Strategy. management practices that transforms
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The Platform demonstrates the activities, partnerships Local Government into an ‘employer of
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and collaborations currently being undertaken by Local choice’.
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Governments, State and National Local Government
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Associations and peak professional bodies. eg
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NatThe current issues and strategic responses information and tools that the Centre would provide
developed include: may include:
• Conducting research to understand the
• Operating as an information clearinghouse
motivations, aspirations and needs of the
regarding activities being undertaken across
current and future workforce
Australian by Local Governments and other
• Developing flexible human resource practices bodies
to retain the current workforce, by providing
• Articulating the National Local Government
workers with opportunities for career diversity
Employer of Choice brand and value propositions
and flexibility that accommodates both
to promote Local Government
professional and personal aspirations.
• Developing Employer of Choice templates
4. Image Building – A Local Government Brand and guides of good practice, to facilitate
- To develop and promote a positive public benchmarking and the development of
image of Local Government as flexible, cutting responsive HR practices
edge and responsive to its constituents – local
• Providing a range of toolkits for the sector, for
communities, local businesses and its workforce.
the promotion of Local Government careers at
The current issues and strategic responses schools, tertiary institutions and at local, national
developed include: and international careers’ expos
• Establishing a national Local Government • Facilitating or brokering employment exchange
Brand and promoting Local Government as an programs within the Local Government sector
industry with common values that provides a and between other sectors (public and private) in
range of services to local communities Australia and internationally.
• Promoting Local Government as an
The Centre could be established and operated by an
employment and industry sector that provides
existing peak professional body. Its implementation
a diverse range of career and employment
may be overseen by an Advisory Committee made
opportunities.
up of the members of the Steering Committee.
The Advisory Committee would provide policy and
Strategies for the Future – strategic planning advice for the Centre.
Recommendations for Action
Through smart redesign of job functions and adopting
Five key initiatives are proposed to address skills progressive employment practices, Local Government
shortages facing the sector. The five initiatives need can develop New Ways of Working to address the
to be actioned by the Local Government sector in demand side of skills shortage by:
collaboration with State, Territory and Commonwealth
Governments. • Developing and adopting up-to-date employment
practices and job design (eg: part-time work, job
Establishing a virtual Local Government Centre share and family friendly work places)
for Excellence would provide a unique opportunity
• Providing career pathways for ‘para-
to showcase, promote and develop best practice
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professionals’, thereby ensuring that Local
in Local Government workplace developments,
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Government makes efficient and effective use
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as well as all aspects of good governance and
of professional, skilled and technical staff (eg:
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Local Government management. The Centre
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planning assistants)
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would provide information and tools to
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improve Local Government operations • Advocating for Government funded incentives to
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and performance. The activities, attract and retain skilled staff in rural and remote
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regions (eg: taxation incentives).
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7Promotion of the New Ways of Working in Local migrant communities. Such projects would
Government could be fostered with the Minister for include training, support and mentoring over a
Vocation Education and Training awarding Local reasonably substantive period (at least 2 years) to
Government Scholarships for Leadership in Regional maintain participation in the workforce.
Workforce Development.
• Promotion and development of skilled migration
A range of Local Government Training and programs and protocols for Local Government,
Professional Development projects is needed to for example:
address supply shortage in relation to both attraction
− Establishing one of the peak professional
and retention, including:
bodies as a designated national body that
DIMA Industry Outreach Officers work with
• Research and analysis of Local Government
for the provision of service to assist Local
career pathways and training and professional
Governments access skilled migrants
development needs
− Developing regional skilled migration programs
• Establishment of Local Government Group
with Local Government being the lead agency
Training Enterprises to service a number of Local
collaborating with local chambers of industry
Governments. The Local Government Group
and commence.
Training Enterprises will:
With these strategies in place, Local Government will
− develop apprenticeships and traineeships in
be well positioned to promote itself as an Employer
collaboration with training providers
of Choice. Promoting Local Government as
− organise job placements and provide and Employer of Choice will assist in progressing
supervision and support community understanding of Local Government and
it’s role as a responsive, community-engaged and
• Development of training programs for the mature-
multifaceted sector with a multitude of diverse and
aged workforce that encompasses re-skilling to
rewarding career options. This requires:
enable experienced workers to act as mentors,
coaches or trainers of newly engaged workers
• Developing a National Local Government
• Instigating professional development programs Employer of Choice brand and benchmarks
that facilitate the upgrading of qualifications for use at career expos within Australian and
of current Local Government staff, as well overseas
as secondments and exchange programs
• Establishing regional Employer of Choice
between Local Governments and between Local
alliances between Local Government, Chambers
Government and the public and private sectors.
of Commerce and Industry and businesses to
promote regional employment
Attracting New Workers is essential if Local
Government is to tackle the decline in the natural • Developing a national marketing campaign to
rejuvenation of the Australian workforce. Two key promote the national Local Government Brand.
recommendations to increase supply of Local
Government workforce are:
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• Development of Employer Demand
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Demonstration Projects at the regional level
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for recruitment, employment and retention
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of underutilised local populations groups,
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including people with a disability, sole parents,
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those over 50 years of age, long term
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unemployed, indigenous, and refugee and
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NatSection 1: Local Local Government is well positioned to face the Skills
Shortage challenge and to develop new ways of
Government National working with neighbouring authorities, local businesses
and its workforce.
Alliance - Addressing Nonetheless, as Local Government provides a
a National Issue range of services and functions across a number of
professions and trades, it is imperative that strategies
and actions are taken up by the sector as there can
Introduction be no single overarching response. Recognising this,
Local Government delivers key social, environmental Local Governments across Australia have developed
and economic services to communities across a range of workforce planning initiatives to address
Australia7. The key attributes of Local Government skills shortages. These initiatives are diverse and take
are8: account of the different issues confronted by regional,
rural and urban Local Governments.
• A wide and established national network of public
administration, including a significant presence in Thus, the breadth of the challenge and diversity of
rural and regional Australia responses instigated by Local Government represents
a microcosm of the skills shortage and work design
• Strong links to the community and accountability issues confronting a number of Australian professions
to the communities it represents and industries. Consequently, investment in proposed
strategies set out in the National Skills Shortage
• Practical service orientation and good
Strategy for Local Government provides a unique
organisational skills which make it capable of
opportunity to demonstrate an extensive array of
innovative, speedy and flexible responses
innovations in workforce planning and development
• Embedded links with local business and industry, that could be emulated by other sectors, organisations
putting Local Governments in a good position and industries.
to foster ‘bottom up’ approaches to regional
development
1.2 Purpose of the Strategy
• Information dissemination to support
Commonwealth regional policy development and This Strategy has been developed in collaboration
implementation with national peak professional bodies and the Local
Government sector to:
• An ideal entry point for access to information
about other governments’ services and
• Present a national framework of the skills
programs.
shortage challenges being experienced
To be effective and efficient Local Government requires • Propose a range of nationally agreed strategic
a skilled workforce. However, it is confronted with responses to address skills shortage in Local
the challenge of attracting and retaining skilled staff Government requiring investment
against competition from other tiers of government
• Outline the significant role of Local Government
and the private sector. The challenge stems from
Nat
in Australia’s economic prosperity, physical and
national and global demographic and technological
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environmental development and management,
changes. At the same time that the Australian
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social service provision, social inclusion, and
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population is continuing to age, resulting in
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community cohesion and stability
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reductions in the growth of the workforce,
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technological advancement is dramatically
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changing the way we work9.
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ca 7 Department of Transport and Regional Services (DOTARS), 2006, Local Government National Report 2004-05 on the Operation of the Local Government (Financial
lG Assistance) Act 1995 Appendix G
ov 8 Cited in National Price Waterhouse Coopers, 2006, National Financial Sustainability of Local Government commissioned by Australian Local Government Association
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me from DOTARS, Submission No 103, p 39, in House of Representatives, SCEFPA, 2003, Rates and Taxes: A Fair Share for Responsible Local Government, p 91
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9 Leitch 2006 Review of Skills, Prosperity for all in the global economy – world class skills final report, Treasury www.hm-treasury.gov.uk/leitch
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7• Provide an overview of current activities and At the Forum, the Local Government peak professional
innovations currently underway across Australia bodies committed to work with their members and
by numerous Local Governments and various their sector to ensure Local Government services
professional associations. continue to meet community needs and expectations
by:
The Strategy’s intended audience includes
individual Local Governments, State, Territory and • Defining what Local Government stands for and
Commonwealth Governments, peak professional promoting a sector-wide approach to presenting
bodies, education and training organisations, and a positive image
employer and employee organisations.
• Educating, raising awareness and establishing
pathways to diverse careers in Local Government
This Strategy was developed with a view to
focusing action across the sector on key elements • Building modern Local Governments,
that will address the effects of skills shortage and characterised by new styles of leadership, that
seek resources and support from stakeholders for will encourage new ways of doing things through
implementation of various responses. empowerment, knowledge building, work re-
design and use of technology
1.3 Background • Transforming Local Government into an employer
of choice through adoption of leading HR
1.31 National Skills Shortage Forum – April 2006
practices.
In April 2006 the National Local Government Managers
An outcome of the Forum was the formation of a
Australia (LGMA) facilitated a Skills Shortage Forum in
Steering Committee to:
Canberra to explore and define skill shortage issues in
Local Government. • Audit current initiatives being undertaken to
address the Skills Shortage issues in Local
The Forum was opened by the Commonwealth
Government
Minster for Local Government, Territories and Roads,
and attended by a number of Local Governments, • Identify and consider the gaps in the various
national Local Government peak professional initiatives being undertaken
bodies and representatives of the Commonwealth
• Develop and promote coordinated sector-wide
Government including the Departments of
strategies to address Local Government Skills
Employment and Workplace Relations (DEWR),
Shortage issues
Immigration and Multicultural Affairs (DIMA), Education,
Science and Training (DEST), Local Government • Negotiate with and advocate to relevant State,
unions and trainers. Territory and Commonwealth agencies to
access relevant programs and secure funding
opportunities for the implementation of Local
Government Skills Shortage strategies
• Communicate the Forum outcomes and
proposed implementation plan to key
stakeholders including State, Territory and
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Commonwealth Ministers responsible for Local
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Nat1.3.2 National Local Government Skills 1.3.3 The Importance of Local Government
Shortage Steering Committee – Why it matters
The Steering Committee draws on the knowledge, Local Government in Australia delivers substantial
interests, skills and expertise of the peak professional levels of government services (community, social,
bodies aligned with Local Government. It brings health, physical, regulatory and environmental
together Local Governments, rural, regional, urban amongst others), manages considerable economic
and remote, and their peak professional bodies to activity, and provides significant employment across
develop a strategy that sets out ways in which Local the country.
Government can respond to the challenge of skills
shortage. The Steering Committee draws together In many rural and remote communities Local
representatives from: Government is the major employer, the primary
economic driver and the only level of government
• Australian Institute of Building Surveyors delivering essential social and community services.
• Australian Institute of Environmental Health 1.3.4 Delivering Key Government Services
• Australian Library and Information Association
The majority of the 703 Local Governments are
• Australian Local Government Association outside urban areas as 77 per cent (543) are in
regional Australia (91 Indigenous bodies)10. Figure 1
• Institute of Public Works Engineering Australia
below illustrates the State and Territory spread of Local
• Local Government Community Services Government between urban and regional locations.
Association of Australia
Figure 1 – Australian Local Governments Urban and
Regional Spread
• Local Government Finance Professionals
• Local Government Human Resource Managers
• Local Government Managers Australia
• Parks and Leisure Australia
• Planning Institute of Australia
The strength of the commitment of the members
of the Steering Committee is borne out with each
organisation providing funding to contract a project Source: DOTARS 2006, Local Government National Report 2004-5
on the operation of the Local Government (Financial Assistance) Act
manager to develop the National Skills Shortage 1995
Strategy for Local Government.
Local Governments are the drivers of good
governance across Australia, particularly in regional
areas. They are authorised to provide an extensive
range of functions for local communities including
advocacy, service delivery, planning, community
development and regulation11. Increasingly Local
Nat
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Governments are becoming the principal providers
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of services to local communities on behalf of State,
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Territory and Commonwealth Governments.
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7Local Government does it all – it plans, delivers and • Cultural/education (libraries, art galleries and
maintains key infrastructure such as roads, bridges, museums) planning, development, management
footpaths, and water and sewerage systems for its and delivery
communities. At the same time Local Government
• Advocacy for local communities for service
develops and provides a range of social services
delivery and development.
including health, welfare, safety and community
amenities. Examples12 of the extensive functions and
Local Government is the major economic driver in
services provided by Local Government include:
many regional communities providing the majority of
the employment opportunities, stimulating business,
• Engineering (public works design, construction
social, recreational, community service development
and maintenance of roads, bridges, footpaths,
and delivery.
drainage, waste collection and management)
• Water and sewerage management Put simply, without an effective Local Government
local economies and communities struggle to operate,
• Health (water and food safety, immunisation,
especially in regional Australia.
toilets, noise control, meat inspection, and animal
management and control) 3.4.6 Significant Role in the Australian
Economy
• Building (inspection, licensing, certification and
enforcement)
In 2003-04, Local Government expenditure was
• Strategic land use, environment and heritage approximately $18.3 billion, representing 2.3 per cent
planning as well as statutory land use of Australia’s Gross Domestic Product13, making Local
development approval Government a major contributor to National, State
and local economies. For example, Local Government
• Social planning, and social impact assessment
expenditure in transport and communication was
• Public order and safety, including emergency and approximately $4.6 billion in 2003-04, the equivalent
disaster management of 25 per cent of total Local Government expenditure.
In the same period, Local Government expenditure
• Administration of quarries, cemeteries, parking on housing and community amenity, at 24 per cent
stations and street parking of total Local Government expenditure, contributed
approximately $4.4 billion to State and local
• Environment, land care and natural resource
economies.
management
• Management of recreation facilities (golf courses, The significant contribution made by Local
swimming pools, sports grounds and courts, Government was recognised in the Hawker report14.
recreation centres, halls, kiosks, camping The report acknowledged that Local Government
grounds and caravan parks successfully delivers services across Australia in
its own right and on behalf of State, Territory and
• Community services (child care, elderly care and
Commonwealth Governments.
accommodation, refuge facilities, family services,
meals on wheels, youth projects, affordable
housing, counselling and welfare)
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12 Information drawn from Department of Transport and Regional Services (DOTARS), 2006, Local Government National Report 2004-5 on the operation of the Local St
Government (Financial Assistance) Act 1995 ge
13 ibid page 4 o rta
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14 House of Representatives Standing Committee on Economics, Finance and Public Administration, 2003, Rates and Taxes: A Fair Share for Responsible Government
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Nat3.4.7 Local Government a Major Employer
Section 2: Skills
Local Government is a significant employer in
Australia. DOTARS estimates that in February 2005,
Shortage and Local
165,100 people were employed in Local Government
nationally which equates to Local Government
Communities
employing just less than 1 per cent or 0.83 per cent, of
“Supply and demand for skills are influenced by a
the total Australian population. This estimate includes
range of factors which are complex and include
all age groups. If we restricted the number to people
levels of activity in employing industries, occupational
over 18 years of age the proportion of working age
‘wastage’ (workers no longer working in occupations
Australians employed by Local Government would
that use their qualifications), training levels,
be substantially higher. In fact, a recent PwC report
introduction of new technologies which require new
estimated that Local Government employs around 1.3
skills, and specialist skill requirements for particular
per cent of the Australian labour force15.
working environments. Mismatches between the
location of workers with particular skills and employers
Moreover, DOTARS outlines that Local Government
seeking those skills is [sic] also an issue which affects
employment has been increasing steadily since 2000.
occupational labour markets, and often, employers are
It is estimated that Local Government employment has
looking for specialist skills within an occupation”16.
increased by 18 per cent in the 5 years from 2000 to
2005.
2.1 What is Skills Shortage?
Skills shortage is a major issue confronting Australia,
not just Local Government. Australia’s workforce
is not growing fast enough to keep pace with the
labour and skill needs of a range of industries. Given
the extent of the problem, it is not surprising that
there are numerous definitions of skills shortage. For
the purposes of this Strategy we are adopting the
definition used in the Bureau of Transport and Regional
Economics (BTRE) 2006 report on skill shortage17:
“A skill shortage exists when the demand for
workers for a particular occupation is greater
than the supply of workers who are qualified,
available and willing to work under existing
market conditions.”
(Shah, C & Burke, G 2003, Skills shortages: concepts, measurement
and implications, Centre for the Economics of Education and Training,
Monash University)
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ov 16 Department of Employment and Workplace Relations 2006, Australian Jobs www.workplace.gov.au/NR/rdonlyres/D89DF430-C009-4E7F-812E-1BA4235428E1/0/
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17 Bureau of Transport and Regional Economics, 2006, Working Paper 68: Skill Shortages In Australia’s Regions
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72.1.1 The Causes 3. The third level relates to the Personal Dimension
of work preferences and worker considerations,
Understanding the causes of skills shortage in Local
ie: supply side considerations entailing:
Government provides the framework for developing a
strategy setting out responses that can address the • Career and vocational development
challenges facing Local Government. However, as the
• Work conditions
BTRE18 paper outlines skills shortage occur as a result
of a combination of factors. We can set out the • Perceptions of industry
factors contributing to skills shortage at three levels:
• Life stage and family commitments
1. The first level is national Macro Socio-Economic • Liveability – access to social networks,
factors that revolve around: recreation activities and essential services such
• Technology change as housing, health and education
• Globalisation19 • Secondary job opportunities – work availability
for family members
• Ageing Population
An important aspect of the personal dimension is
• Structural Change
the different expectation and attitudes to work that is
attributed to Generation Y, Australians born between
Ageing of the population is the most significant
1980 and 1994, the students in secondary and tertiary
demographic change occurring in Australia that will
education and those entering the workforce. Studies
impact on the workforce as the ‘baby boomers’ (born
propose that this new generation seeks career and
between 1946 and1964) reach retirement. Research
work-life balance, work that makes a contribution to
highlights that there is a reduced desire to remain in
society and recognition of their work24. This impacts on
the workforce for those of retirement age (mid 50s to
job design and work relationships as stratification of the
early 60s)20. Overall participation rates are projected to
workforce by age or tenure will no longer be accepted25.
drop from around 63.5 per cent in 2003-4 to 56.3 per
cent by 2044-4521.
Additionally, a Human Rights and Equal Opportunity
Commission (HREOC) report outlines that workers
Part of the structural change is the growth of women
(usually women) with caring roles for dependent
especially older women in the workforce, and the
children, older family members or friends requiring
decline in the male workforce. Workforce participation
care require “workplace diversity programs” to ensure
by women has dramatically increased by 12.5 per cent
recruitment and retention26.
in the last 25 years to 2005 to 56.9 per cent22. Overall,
women make up 46.7 per cent of full-time workforce
and majority of part-time employees, 74 per cent23. 2.2 How dramatic is skills
shortage for Local Government?
2. The second level relates National Workforce
Issues affecting a number of industries in The structural changes to the labour market
Australia which relate to: across Australia have major ramifications for Local
Government employment. Australian Bureau of
• Training and Education Statistics figures indicate that at March 2005 there
were 3.7 million people aged 45 years and over in the
7
• Wastage
200
labour force, that is 37.7 per cent of the workforce27.
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Local Government’s workforce is substantially
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19 It is estimated that at least 1 million skilled Australian workers are working overseas at present
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20 National Centre for Social and Economic Modelling 2005, University of Canberra, Analysing Australia’s Ageing Population: A Demographic Picture, Paper presented to ‘Australia’s Ageing Population Summit 2005’,
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Financial Review Conferences, Sydney, http://www.natsem.canberra.edu.au/publications/papers/cps/cp05/cp2005_012/cp2005_012.pdf
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21 Productivity Commission 2005, Economic Implications of an Ageing Australia, Research Report, http://www.pc.gov.au/study/ageing/finalreport/index.html
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22 Department of Employment and Workplace Relations, 2006, Australian Jobs 2005 gy
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23 DEST, 2006, Government and Community Safety Industry Skills Report , Draft
t ra
24 Sheahan, P 2006, Talking Point – Generation Y in the Public Sector, PS News, http://www.psnews.com.au/TalkingPoint19September06.html S
e
25 ibid
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26 Goward P et al. 2005, Striking the balance: Women, men, work and family, Discussion Paper, Human Rights and Equal Opportunity Commission, Sydney, p97, o
Sh
http://www.hreoc.gov.au/sex_discrimination/strikingbalance/index.html ls
27 Department of Employment and Workplace Relations, 2006, Australian Jobs 2005 l
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NatDespite high employment and projected job growth Figure 2 – Proportion of full-time and part-time
employees by industry
in Australia, the workforce growth is declining
dramatically. The net annual growth of the Australian
workforce, which has been 175,000 per annum for
the past five years, will fall to 140,000 this year and
is estimated to fall as low as 40,000 per annum by
201228.
Figure 2 below indicates that the majority of
government employees are full-time with only 17 per
cent of part-time employees, compared with a national
industry level of 28 per cent for part-time employees. Source: ABS, Employee Earnings, Benefits and Trade Union
However, Figure 2 also reveals high proportion of part- Membership, cat. no 6310.0, August 2005.29
time work in industries linked to Local Government
employment, for example, cultural and recreation The data on employment by industry does not
services and health and community services. separate out Local Government employment.
Nonetheless, we can ascertain from Figure 3
below that industries with high Local Government
occupations beyond Government Administration and
Defence30 such as cultural and recreation services
and health and community services also have high
proportion of their workforce over 45 years of age.
Figure 3 – Share of Employment by industry (%) aged 45 and over, 2005
All Industries
Retail Trade
Accomodation, Cafes and Restaurants
Cultural and Recreational Services
Finance and Insurance
Construction
Personal and Other Services
Property and Business Services
Wholesale Trade
Communication Services
Manufacturing
Mining
Electrity, Gas and Water Supplies
Transport and Storage
Government Administration and Defence
Health and Community Services
Education
Agriculture, Forestry and Fishing
0% 10% 20% 30% 40% 50% 60%
45-54 55+
Source: DEWR, Australian Jobs 2006, p2631
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31 Drawn from DEST 2006 Draft Industry Skills Report Government and Community Safety Industry
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7An analysis32 of the workforce in Government Local Government will experience a dramatic
Administration and Defence revealed the majority impact of this reduction as its employee numbers
(90 per cent) of those over 45 years of age stated an fall substantially within the five occupations with the
intention to retire at some stage, only slightly more highest projected reductions:
than half (53 per cent) had decided when this would
be33. • Intermediate Clerical/Service workers
• Professionals
At the same time Australia is experiencing a dramatic
reduction in natural rejuvenation as there is a decline • Tradespeople
in the numbers of young people of working age. It is
estimated that there will be a drastic decline in growth • Elementary Clerical/Service workers
of the Australian workforce partially due to reduction • Associate Professionals
of inflows of young people, by 21 per cent (37,000)
over the next five years (2005 to 2010)34. This decline These five occupational areas encompass key Local
in natural rejuvenation in the workforce is expected Government workforce areas including planners,
to continue with an expected reduction of an average tradespeople, environmental health officers, engineers,
each year of 57,000 from 2020 to 203035. building surveyors and building inspectors.
Employment levels will reduce within the next three We can identify the particular challenges confronting
years in a number of sectors of relevance to Local Local Government related to the multiple factors that
Government. Department of Workplace Relations have led to skills shortage in Australia. Below is a
(DEWR) estimates reductions in employees in the summary of these causes and key challenges.
following areas due to ageing:
1. Macro Socio-Economic Factors:
Figure 4 – Forecast Reduction in Employment Levels
(‘000 employed persons) due to Population Ageing, by
• Technology Change – the development of
Occupation 2004-05 to 2009-10
information technology and communication
systems reducing the demand for current skills
Advanced
Clerical/Service Workers, and changing the nature of the skills required.
4.3%
Intermediate
Tradespersons, 28.9%
Clerical/Sales/Service This has led to a mismatch between skills in
Workers, 39.3%
demand and skills held by the current workforce
Associate Professionals,
19.3% • Globalisation – loss of skilled labour migrating
Intermediate
overseas, exacerbating the loss of supply of
Production/Transport
Workers, 17.6%
professionals
Professionals, 38.3%
• Ageing Population – Local Government has an
Elementary
Clerical/Sales/Service
ageing workforce with approximately 50 per
Managers and Labourers, 18.5%
Workers, 23.1%
cent of the workforce approaching retirement
Administrators, 5.5%
age in an era when many people are choosing
early retirement at 55 years of age, leading to a
Source: Monash Centre of Policy Studies forecasts in DEWR
Workforce Tomorrow 2005 substantial loss of experience and knowledge36
• Structural Change – Local Government work
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arrangements traditionally focus on full-time,
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and contract work arrangements.
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32 Carried out by DEWR Government Administration and Defence Educational Profile, May 2004
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33 Hudson, 2006, 20:20 The Evolving Workplace y
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34 The working-age population grew, on average by around 175 000 people every year from 2000 to 2005, this will fall to 138 000 in 2010 and an average of about 57 000 a year in the period
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2020 to 2030 partly due to relatively low fertility rates.
35 ibid ge
36 Jorgensen, B 2004, 20:20 Australia Series, ‘The Ageing Population: Implications for the Australian Workforce’, Hudson Global Resources and Human Capital Solutions,
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http://au.hudson.com/documents/emp_au_Whitepaper_ageism.pdf Sh
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