bsbhrm513 manage workforce planning - … · 1.2 assess factors that may affect workforce supply...

EBook BSBHRM513 Manage workforce panning

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BSBHRM513

MANAGE WORKFORCE

PLANNING


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Contents

Introduction .............................................................................................. 4

Benefits of workforce planning .................................................................. 4

1.Research workforce requirements.............................................................. 6

1.1 Review current data on staff turnover and demographics ..................... 6

1.2 Assess factors that may affect workforce supply ................................. 8

1.2.1 Labour supply data .................................................................... 9

1.3 Establish the organisation’s requirements for a skilled and diverse

workforce ............................................................................................. 13

1.3.1 Capacity for future demands ..................................................... 15

2.Develop workforce objectives and strategies ............................................. 18

2.1 Review organisational strategy and establish aligned objectives for the

modification or retention of the workforce ................................................ 21

2.1.1 Triple bottom line (TBL) ........................................................... 21

2.1.2 Establishing workforce plan objectives ....................................... 22

2.2 Define whether staff turnover is unacceptable and strategies to address

turnover ............................................................................................... 22

2.2.1 Calculating turnover ................................................................ 23

2.2.2 Causes of turnover .................................................................. 24

2.2.3 Reducing turnover ................................................................... 25

2.3 Define objectives to retain required skilled labour ............................. 25

2.3.1 Retention strategies ................................................................. 25

2.4 Define objectives for diversity and cross-cultural management ........... 27

2.5 Define strategies to source skilled labour ......................................... 28

2.6 Communicating objectives and rationale to relevant stakeholders ....... 29

2.7 Gain agreement and endorsement for objectives and establish targets 30

2.8 Develop contingency plans to cope with extreme situations ................ 30

3.Implement initiatives to support workforce planning objectives ................... 33

3.1 Implement action to support agreed objectives for recruitment, training,

redeployment and redundancy ................................................................ 33

3.1.1 Recruitment ............................................................................ 34

3.1.2 Training and development ........................................................ 35

3.1.3 Skills gap analysis process ........................................................ 35

3.2 Develop and implement strategies to assist workforce to deal with

organisational change ............................................................................ 35


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3.2.1 Lewin ..................................................................................... 37

3.2.2 Beer ...................................................................................... 38

3.3 Develop and implement strategies to assist in meeting the organisation’s

workforce diversity goals ........................................................................ 38

3.4 Implement succession planning system to ensure desirable workers are developed and retained. ......................................................................... 39

3.5 Implement programs to ensure workplace is an employer of choice..... 40

3.5.1 Workforce planning implementation plan .................................... 41

4.Monitor and evaluate workforce trends .................................................... 43

4.1 Review workforce plan against patterns in exiting employee and

workforce changes ................................................................................ 43

4.2 Monitor labour supply trends for areas of over-or-under supply in the

external environment ............................................................................ 44

4.3 Monitor effects of labour trends on demand for labour ....................... 44

4.4 Survey organisational climate to gauge worker satisfaction ................ 44

4.4.1 Focus groups .......................................................................... 46

4.5 Refine objectives and strategies in response to internal and external changes and make recommendations in response to global trends and

incidents .............................................................................................. 46

4.6 Regularly review government policy on labour demand and supply ...... 47

4.6.1 Immigration policies ................................................................ 47

4.6.2 Education and training ............................................................. 48

4.7 Evaluate effectiveness of change processes against agreed objectives . 48

Appendix: Legislation in Australian Business ................................................ 50

References .............................................................................................. 56


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Introduction

It is an important process, predicting the needs of the business or organisation

into the future and making sure the skills and people are available at the right

time. Planning for human resources is a big challenge for business and

managers. What goals does the organisation have? How will we know what

people we need to make sure we can achieve our goals?

This unit describes the performance outcomes, skills and knowledge required to

plan workforce strategies to achieve organisational goals and objectives.

It includes assessing factors that may affect the supply of workers, aligning

workforce objectives with business plans, and designing strategies and

succession plans to ensure a competent and appropriately diverse workforce is

available to meet anticipated changes. The unit covers the research associated

with labour markets and the requirement to match organisational needs with

employee skills and commitment.

This unit applies to human resources managers or staff members with a role in a

policy or planning unit that focuses on workforce planning.

Benefits of workforce planning

Close and effective management of organisational resources – human, financial

and time is the outcome of proper workforce planning. The benefits of workforce

planning are obvious:

Ability to identify future staff requirements and possible skills shortages or

over supply.

Recruitment strategy with a plan, including times and costs.

Identification of skills gaps and plans to address same.

Initiatives for specific recruitment and training can be utilised to address

issues.

May help avoid inefficient staffing levels and costs/frustrations associated.

Accurate identification of needs for staff development.

Potential for retraining to accommodate staff in other areas of the

business.

Right people

Right skills

Right time

Workforce planning


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Planning overview

In order to achieve its goals, organisations need to have staff with the right skills

necessary to achieve the organisation’s goals and objectives. To determine an

organisation’s workforce requirements it is important to research the workforce

requirements based on the organisation’s current and future business plans.

Two business plans in particular are important: strategic and operational plans.

The aim of strategic workforce planning is to identify an organisation’s future

labour requirements and to ensure that it will be able to meet the business

requirements.

By looking at these business plans, an organisation should be able to identify

areas in the business that will grow and need more staff, and those areas that

are likely to reduce in staff numbers (downsize). Organisations need to plan for

the future by carrying out workforce planning.

Strategic plans

Strategic plans set out organisations goals over the next three to five years

(although some organisation’s strategic plans are for as long as 20 years).

Strategic plans are long term.

Strategic plans will look at what is necessary to achieve long term future goals.

It will include funding, staff, time, resources, and skills necessary to achieve

these goals. One of the main functions of workforce planning is to help an

organisation meet its strategic goals by attracting and retaining effective

employees and managing them appropriately.

Strategic planning follows a process such as:

Define mission, vision and values.

Review environmental conditions (internal and external).

Analyse strengths and weaknesses.

Develop objectives and goals.

Develop strategies to meet objectives and goals.

Strategic workforce planning – right people, right place, right time

Operational plans

These plans focus on shorter term goals. They tend to be more detailed and

quantifiable than strategic plans. They are essentially a road map for how to

work in the current financial year.

Strategic and operational plans work together in order to achieve organisational

goals. Strategic plans identify the destination, operational plans, how to get there.


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1. Research workforce requirements

Taking a trip requires planning and organising if you don’t want to get lost, run

out of fuel or spend too much money getting to your destination.

So it is with all management processes. There are sensible, well defined steps to

be taken to make sure you end up on the right track. No plan can result in you

getting lost! This section will cover steps to be taken and the issues you will

need to be aware of to make sure your journey is as well organised and thought

out as possible.

1.1 Review current data on staff turnover and

demographics

Before you can develop a workforce plan, you have to understand the current

workforce. Organisations need to analyse the current workforce to determine areas

where there might be too many or not enough staff, or the skills aren’t the right mix.

Example Your analysis might show that you have too many salespeople and

not enough administrative staff.

A common way for organisations to learn about their workforce is to conduct an

audit of the current workforce. These audits give information about the number,

characteristics, jobs, skills and abilities of employees in the organisation. They

also provide information on:

the size of the workforce

•Skills

•Knowledge

•Attraction

•Retention

•Deployment

•Skills

•Size

•Deployment

•Skills

•Size

Analyse current

workforce

Analyse future

workforce

Identify gaps

Strategies to fill gaps


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the occupations of employees in the workforce

the type of employment (or mode) of the workforce (full time, part time)

the employment status (permanent, casual, contract)

qualifications of employees

training courses employees have completed

employees’ work histories

location of employees if there is more than one worksite

hours worked, including overtime or time-in-lieu

salary rates

awards, agreements or other industrial instruments

staff turnover and demographics.

It is important to review the data after the workforce analysis audit has been

conducted to establish where there may be high levels of staff turnover and to

establish reasons for these levels of turnover.

Having workforce data information means that an organisation can determine

where there are shortages or excesses of staff. You can now begin building

strategies to fill the gap. These strategies may include:

recruitment of new staff

increasing hours of existing staff

offering overtime to existing staff

offering part time or casual staff full time positions

transferring excess staff from one department to another with shortages

reviewing skills that staff have and aren’t using and redeploying or

modifying jobs so that they do

retraining excess staff and redeploying them

promoting skilled staff into appropriate roles

introducing retention strategies to keep staff

making excess staff redundant.

Analysing excesses and shortages in the workforce isn’t a simple matter of

counting off the numbers; it also needs the organisation to determine how those

shortages and excesses relate to the organisations objectives. You need to

analyse the skills gap.

Many organisations do this by reviewing performance appraisal information. By

analysing these appraisals, which outline staff performance and existing

capability, and comparing them to the organisation’s objectives, you can identify

skills and knowledge gaps throughout the workforce.

It’s important to distinguish between skills gaps, and performance gaps.

Performance gaps exist when behavioural areas are not performed to the

organisations standard.


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Skills gaps occur when employees don’t have the required qualifications,

experience or specialised skills to meet the organisation’s needs.

Where gaps exist you need to determine why they exist. They may exist as

performance gaps due to attitude or awareness.

Attitude – ‘I don’t care about it’. Awareness – ‘I don’t know about it’.

Skills gaps, can occur for a range of reasons.

Poor induction not providing information required to achieve objectives.

Unable to find suitable candidates so recruiting anyone who’ll take the job

even if they don’t have the skills or experience.

Not enough employees with the skills required are in the job (demand

outstrips supply).

The organisation has changed its business activities or has introduced new

systems.

Skills gaps put a lot of pressure on those few in the organisation who do have

the skills as they are left to pick up the slack. This leads to stressful work

environments, job dissatisfaction, high attrition rates and ultimately high

turnover (making the skills gap worse).

Skills gaps are becoming an increasingly serious problem across the world as a

result of:

rapid changes in technology

introduction of new industries and products

extended period of strong economic growth

increasing reliance on casual and part time workers

ageing workforce reducing the number of available workers

low levels of unemployment in many areas

lack of interest in many traditional industries

increased interest from international organisations enticing Australian

workers overseas.

As a result, skills development has become a priority for many organisations.

Skills gaps can be filled through the development of learning and development

programs. This doesn’t have to mean sending staff back to school, professional

development can happen in many ways, including formal training.

1.2 Assess factors that may affect workforce

supply

It is important to understand there may be internal and external factors which

influence workforce supply, these need to be assessed in each geographical

situation. These factors could include, but not limited to:

technological changes


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economic conditions

industry changes

market conditions/trends

labour force unemployment rates

labour and skills shortages/supply.

1.2.1 Labour supply data

External labour supply data comes from a range of sources.

Australian Bureau of Statistics (ABS) – provides a range of statistics on

economic, social, political and emerging trends. Particularly interesting for

workforce planning is the ABS’s labour force statistics, social trends and

Australian demographics.

Industry groups can provide information about specific industry issues.

University and higher education placement figures.

Number of graduates from the Vocational Education and Training (VET)

sector.

State government reports and data.

Conferences.

Media.

Professional associations.

This external data should paint a picture of how social, technological and

economic trends affect work patterns of people entering the workforce, and

availability of skilled staff in the workforce.

Information about workforce supply can be located through various sources, for

example:

LMIP- labour market information portal

www.lmip.gov.au

At this site The Department of Employment publishes a wide range of

information about the labour market.

http://www.lmip.gov.au/


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The Australian government Department of Employment

Occupational-skill-shortages-information

https://employment.gov.au/occupational-skill-shortages-information#want-to-know-more


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1.3 Establish the organisation’s requirements

for a skilled and diverse workforce

Organisational diversity refers to incorporating a range of people with differences

into the workforce. By incorporating a range of different people, with different skills

and abilities an organisation is able to establish a skilled and diverse workforce.

Some of these differences can include, race, religion, cultural differences,

language, gender, sexual orientation, ages, education levels, family

backgrounds, socio-economic backgrounds and varying levels of physical and

mental disabilities, skills and capabilities.

Employing people from all sorts of backgrounds is an important ingredient in

creating innovative modern workplaces.

Furthermore, there are legal obligations for organisations in relation to Equal

Employment Opportunity (EEO) legislation.

Under this legislation it is unlawful to discriminate against an employee on the

basis of a range of diversity characteristics including gender, sexual preference,

gender identity, age, religion, race, colour, physical or mental disability, marital

status, family and carer responsibility, pregnancy, breastfeeding, national origin,

social origin, political belief/activity, personal association, industrial activity or

physical features.

The principle behind EEO is that all jobs should be awarded on the basis of merit

alone and be fairly applied in the workplace. It requires the identification and

elimination of any discriminatory barriers that cause inequality in the

employment of any person or group of people.

With greater competition between organisations for a limited number of

employees, it makes sense to broaden your potential labour pool as much as

possible by embracing the principles of EEO.

Just to make you aware of the numbers in relation to this issue.

A significant portion of the Australian workforce are migrant workers.

In 2007, 35% of Australia’s population was over 45 years of age, 21%

over the age of 55, and 12.5% over 65.

More than 2,000,000 people of working age in Australia have a disability.

Organisations need to manage diversity with care. It’s important that they

acknowledge differences and adapt workplace practices and procedures to

promote an inclusive environment in which different skills, knowledge,

perspectives, experiences and backgrounds are valued.

Benefits to embracing workplace diversity include:

becoming an employer of choice

improved recruitment outcomes


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higher retention and lower turnover (and associated recruitment, training

and productivity costs)

higher morale

increased productivity

improved innovation

improved relationships with customers, suppliers and other interest

groups

reduced workplace stress and attrition.

A range of inclusive policies can be used to promote diversity:

Anti-discrimination and EEO policies.

o Training.

o Investigations.

o Dispute resolution.

Parental policies.

o Paid (or unpaid) parental leave.

o Providing work based childcare.

Improved accessibility for those who are mobility impaired.

Prayer rooms.

Flexible working arrangements.

o Job-sharing opportunities.

o Home-working.

o Changes in hours and/or shifts.

Example

Equality and Diversity Policy - Transfield Services

Company values - Transfield Services’ values are integral to everything that we do, and

underpin our commitment to equality and diversity in all workplace practices:

We lead the way.

We do what’s right.

We care for each other.

We take responsibility.

Our Commitment - It is Transfield Services’ policy that all employees be afforded:

Equal and fair opportunities in recruitment, remuneration, terms and conditions,

professional development, promotions, transfers and termination of employment.

A fair and safe working environment.

Transfield Services will ensure that no person or group of people will be treated less favourably

than another on discriminatory grounds and that all decisions will be based on merit. Employees are

to be treated according to their skills, qualifications, competencies and potential.


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Transfield Services recognises that within each country of operation exist laws that govern

workplace equality and diversity and is committed to complying with them.

1.3.1 Capacity for future demands

Presently it is not possible to gaze into a crystal ball and get all the answers for

how many staff and what sort of skills the business will need in five years’ time.

Equally you can’t leave it to chance.

Organisations can begin to assess their future demand for labour by asking

themselves some important questions.

According to our business plans, how many employees are we likely to need in our key

operational areas, if things go according to plan?

What goods or services will we be selling in the future?

Will the organisations business activities change in the future?

What methods will we be using to deliver our services in the future?

Are we intending to grow our client base? By how much?

What does delivering good quality customer service require?

How will we be structured in the future? Will we need more managers, more line staff?

What are the critical skills that we need to meet our goals?

What skills don’t we have at the moment that we need?

What skills don’t we need any more?

What can we do to get the skills that we need?

Who in our organisation shows real potential for promotion and development?

How can we best develop them?

Is our operating environment likely to change? How?

What are the new business opportunities that are likely to present themselves?

How will technology affect our business and workforce?

Are any of the key personnel getting ready for retirement?

How can we look more attractive to prospective employees?

If we can’t find candidates with the skills we need already, how can we develop them?

In analysing an organisation’s future need for labour, some predictions will need

to be made about its operating environment, the organisation’s structure and

changes to product or service portfolio. To be able to make some predictions of

this nature, you will need to review both quantitative and qualitative data to

determine employee numbers, occupation types, capabilities and skills.

This can be done in a number of ways.

Scenario planning


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Scenarios are stories about the way the world might turn out if certain trends

continue and if certain conditions are met. A simple five step method is:

Define the problem: Decide what you want to achieve, and think about the

time horizon you want to look at. This will be driven by the scale of the plans

you want to test.

Gather data: Identify key factors, trends and uncertainties that may affect the

plan. Next, identify the key assumptions on which the plan depends.

Separate certainties from uncertainties: You may be confident in some of

your assumptions, and you may be sure that certain trends will work through in

a particular way. After challenging them appropriately adopt these trends as

your ‘certainties’.

Separate these from ‘uncertainties’ or trends that may or may not be important

and underlying factors that may or may not change. List these uncertainties in

priority order, with the largest, most significant uncertainties at the top.

Develop scenarios: Starting with your top uncertainty, take a moderately good

outcome and a moderately bad outcome, and develop a story of the future

around each that fuses your certainties with the outcome you've chosen.

Then, do the same for your second most serious uncertainty. (Don't do too many

scenarios, or you may find yourself quickly hitting ‘diminishing returns’).

Use scenarios in your planning: Scenario planning is a useful way of

challenging the assumptions you naturally tend to make about the situation in

which your plans will come to fruition. By building a few alternative scenarios,

you can foresee more unknowns that may come to pass, and therefore you will

be able to plan measures to counteract or mitigate their impact.

Managerial or expert judgement

This method of demand forecasting requires managers to assess labour

requirements in their department. In doing this they need to take a number of

issues into account, including:

employee turnover

upcoming retirements

resignations and transfers

impact of new technologies and systems

changes in business activities.

Once labour forecasts have been completed for each department, division or

section, they are then consolidated into an overall demand forecast.

Delphi technique

This technique uses a panel of experts who make independent anonymous

forecasts. The HR department then analyses these responses and the results

summarised and circulated, maintaining confidentiality. At the same time, the


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panel is given a shorter set of questions to respond to and so it continues until

consensus is reached.

Ratio trend analysis

This forecast technique is based on past human resources data about growth or

levels of employment as an indicator of future needs. Organisations study past

ratios, such as, how many workers of this skill set were needed to meet this

particular activity in this timeframe. Organisations then predict future workforce

requirements based on predictions of future activity types.

Budget and business plan forecast

This is probably the most common method of forecasting workforce

requirements.

Example The sales budget of a toy manufacturing company would be

translated into a manufacturing plan giving numbers and types of

toys to be made for each period (i.e. wooden, electronic toys etc.).

Using this information, the number of hours to be worked by each

skill category (wooden toymakers, electronic toymakers) for each

budget period can be calculated.

This form of forecasting requires that information about plans or projects that

would result in the need for additional staff of different skills be provided in

advance. Information about any plans that might reduce staff numbers also

need to be provided.

Work Study Technique

This method is effective when the work-load is easily measureable. With this

method the specific activities are predicted and translated into man-hours

required to complete the tasks. Past-experience can assist in ensuring accurate

estimates. Therefore the number of human resources required are calculated

based on the estimations.

Econometric Models

These models use mathematics and statistics to estimate future demand. The

relationship between dependent variables are predicated (manpower/human

resources) and the independent variables (sales, work load etc.)

Estimates based on historical records

Effective resource forecasting can also be achieved using historical records to

predict future needs. This technique is reliable in a stable economic or industry

environment.


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2. Develop workforce objectives and

strategies

Organisations are organic in nature and must change in order to survive.

Changes can be a result of:

new demands

competitor pressure

mergers or acquisitions

changes in technology

changes in product or service portfolio

the need to reduce labour overhead

decisions to outsource work

economic growth or downturn

decentralisation

changes in legislation

new systems and procedures.

Is the organisation’s structure helping them, or hindering them in the

achievement of their objectives?

Organisations that are best able to deal with a changing environment tend to

have a structure that promotes flexibility. One such structure is called a ‘core-

periphery’ structure. It refers to the concept of having a few ‘core’ workers who

are permanent and provide a stable core of ongoing work, and a number of

‘periphery’ workers who come and go on a temporary or casual basis dependent

on demand.

Flexible organisations are flexible in four ways:

The move to organisational structures like this has seen some significant

changes to the Australian workforce:

Functional flexibilityEmployees can be

redeployed to other positions or given new tasks

or responsibility quickly, relies on a multi-skilled

workforce

Numerical flexibility Able to adjust the size of their workforce to meet changes in the level of

demand for labour or the peaks and troughs of an organisation’s business

Working time flexibility Able to alter the standard

working hours of employees by changing shift lengths or rosters or pay overtime so

as not to increase the labour pool

Financial flexibility Allows organisations to

meet wages when additional staff are required

or when workers take on higher level roles or

overtime


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higher levels of casual workers

increases in outsourcing services and activities

increases in contract labour

increases in flexible work arrangements (working from home/remote

access)

increases in self-employed workers

more part time jobs

more short term contracts.

Disadvantages to core-periphery organisations may include:

deterioration of skills bases

reduced workforce stability

lower level of employee loyalty

reduced employee commitment and work ethic

higher turnover costs.

Disadvantages for employees in core-periphery organisations may be:

poor employment conditions

less job security

limited training or development opportunities

limited promotion opportunities

unreliable and fluctuating earnings

limited access to leave and other rights of employment.

Workforce changes

Once you have undertaken analysis of your current workforce and begun to

understand how future events, needs and plans will affect your workforce plans.

You need to identify the gap and implement strategies to avoid this having a

huge impact on the business and its resources.

Predicting the costs

Workforce planning allows organisations to plan for future workforce numbers

and estimate the costs associated with them from one budget period to another.

A workforce plan will identify the current and future workforce requirements, and

the cost elements that drive the budgetary forecast.

The importance of accurately predicting the cost of workforce changes can be

seen when considering that staffing costs represent 60-90% of most

organisations total operating costs. Employees are usually an organisation’s

most valuable assets. They are also the most expensive. This asset needs to be

carefully managed to ensure the business gets value for money with suitably

skilled and an appropriately sized workforce.

There are direct and indirect costs associated with employing people.


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Direct costs are easy to calculate. Basically, they are the employee’s base wages

or salary, plus all cash payments on top of that. These payments may include:

overtime and other penalty rates

shift loadings

cash allowances

bonuses and commissions

leave payments, e.g. sick leave or annual leave —leave loading may be

payable on annual leave payments

any other form of cash payment.

There are two categories of indirect costs:

cost of items that provide a benefit to the individual employee

cost of items that are a part of running a business and a consequence of

having employees.

Common benefits include cars, loans, travel, free or discounted products and

services, parking, insurance, health insurance payment or contributions, mobile

phones, laptops/other computers, education expenses, shares, membership of

professional organisations, and accommodation.

Another frequently-used term is 'on-costs'. This divides employment costs into

two components:

base salary and wages

on-costs, which basically refers to everything else.

If you wish to calculate the total cost of employing an employee, add all the

following items together:

base salary and wages

other direct cash payments such as penalty rates, leave loading,

allowances, etc., but don’t double count basic leave payments — these are

simply payment of normal salary/wages that would be made whether the

employee is at work or not

cash value of employee benefits provided to the employee, including

superannuation contributions

fringe Benefits Tax (FBT) payable on these benefits

value of any incentive and bonus payments

workers compensation premium (per employee)

payroll tax (per employee)

superannuation guarantee charge, where payable

miscellaneous costs i.e. cost of training courses, recruitment fees.


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For what it’s worth, past surveys often estimated on-costs to be around 35-40%

of direct costs. But treat this figure with great caution — here are just a few of

the possible variables:

The percentage will be higher than average if there are many

executive/professional employees. They are usually on salary packaging

arrangements and receive extra benefits.

The percentage will be higher than average if the business has high

workers compensation premiums due to a poor past safety record, or

because it operates in a high-risk industry or has few office employees.

Costs such as workers compensation and payroll tax vary from state to

state.

Other things to take into consideration when calculating the cost of your

workforce plan:

costs associated with eg: redundancy, consultation

training and other development costs

increases in salaries for up skilled workers

employee turnover rates and associated recruitment, induction, training

costs

changes to the product/service portfolio and associated changes to skill

set requirements

remuneration and bonus strategies of an organisation.

2.1 Review organisational strategy and establish

aligned objectives for the modification or

retention of the workforce

A key element in managing your workforce plan, is building objectives and

strategies for modifying and retaining your workforce. There are a number of

key areas.

Triple Bottom Line (TBL).

Redeployment.

Redundancy.

Retrenchment.

Recruitment.

Retention.

Training and development.

2.1.1 Triple bottom line (TBL)

TBL objectives look beyond financial measures of success and also look to an

organisation’s environmental and social performance. These objectives include:


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reducing the organisation’s carbon footprint

reducing waste output

disposing of toxic materials in a safe and legal way

reducing water usage

changing to a paperless office

conducting business in a socially responsible way

working with local communities to improve amenities.

People tend to be more loyal to organisations that share their value system, so

organisations who adopt a TBL approach to business are more likely to attract

and retain employees.

2.1.2 Establishing workforce plan objectives

Objectives need to be clearly measurable if you want to determine if the

workforce plan has been successful. Objectives need to be established before

implementation. Pre-defined measurements ensure that performance objectives

are aligned to the organisations overall goals and objectives.

Measurable Not Measurable

Ensure succession plans are created for all

positions that have a grading of four or more. Create succession plans.

Achieve an average of four days sick leave or less

per employee per year. Reduce absenteeism rates.

Achieve employee turnover rates of less than 3%

per annum. Reduce employee turnover.

Achieve zero industrial actions. Reduce industrial actions.

Ensure labour costs do not exceed labour budgets

each financial year. Ensure labour costs stay low.

Ensure all employees complete 15 hours training

per year.

Ensure all employees participate

in training.

Ensure that there are two employee representative

on the board.

Include employees in

management processes.

2.2 Define whether staff turnover is unacceptable

and strategies to address turnover

Staff turnover relates to the number of employees who leave an organisation.

Organisations try to have the lowest turnover possible, or the highest retention

rates possible.

Turnover costs money

Every time an employee leaves an organisation and is replaced, there is the cost

of attracting, recruiting, training, and retaining a new employee.


23 | P a g e J u l y 2 0 1 5 v 1 . 1

It has been estimated that the cost of replacing an employee is 65% of their

salary, or a minimum of $24 500.

Impacts of high turnover can include:

increased recruitment, induction and training costs

loss of production output from employees that leave until they are

replaced at full capacity

decreased operational efficiency and product quality until new employees

are fully trained

unstable workplace

reduced morale

reduced teamwork

loss of skills/knowledge/expertise.

2.2.1 Calculating turnover

There are a range of methods that can be used to quantify turnover, each have

strengths and weaknesses.

Labour Turnover Index Method

This is a simple way of calculating turnover.

Number of employees who have left an organisation in the period x 100

Average total number of employees during the period

Also known as the Employee Turnover Index, Labour Wastage Index or Crude

Wastage Method.

Although this is a simple method and therefore commonly used and understood,

it can be misleading, particularly in times of downsizing as it will artificially

inflate the turnover figures. It also doesn’t allow for identifying turnover rates in

different skill sets, or amongst high or low performers.

Essentially, turnover quantity isn’t as great a concern as the turnover quality. If low

performing staff is leaving in high numbers, this implies your organisation only

tolerates high performing people. However, if high performing or high potential staff

are leaving in high numbers, then you have serious cause for concern. You also

won’t get any information about turnover diversity from this formula.

The type of employees that are leaving, and those you want to retain, will have

a significant bearing on what initiatives you will introduce to manage turnover.

Example Number of employees who have left the organisation 32

Total number of employees 200

The survival rate method


24 | P a g e J u l y 2 0 1 5 v 1 . 1

This method is concerned with the proportion (%) of employees employed within

a specific period who remain with the organisation after a certain period. It

reveals how many people have left as a percentage of total entrants. This

method can be employed over departments, role types, and work sites.

Example An organisation hires 50 employees in March last year, and in

March this year, there are only 25 left. This is a 50% (25/50)

survival rate. The lower the survival rate, the more focussed action

is required to improve survival rates and reduce turnover.

Length of service analysis

This method of analysis reveals the average length of service of employees who

leave an organisation. This method only deals with employees who leave, which

doesn’t show a picture of the current workforce.

Occupation

Employees who leave by length of service Total

number

leaving

Average

number

employed

Index of

labour

turnover

%

Less

than 3

months

3-6

months

6-12

months

1-2

years

3-5

years

5 or

more

years

Role A 5 4 3 3 2 3 20 220 10

Role B 15 12 10 6 3 4 50 250 20

Role C 8 6 5 4 3 4 30 100 30

TOTALS 28 22 18 13 8 11 100 550 18

The avoidable turnover method

This method measures turnover for avoidable reasons for example

remuneration, working conditions, development opportunities. This allows an

organisation to focus on the causes of avoidable turnover.

2.2.2 Causes of turnover

There are many reasons why an employee may leave an organisation, including:

better conditions of

employment job dissatisfaction more pay

Number of employees in area in March this year

Number of employees hired in area in March last year

Total separations – unavoidable separations x 100 (Avoidable Turnover)

Average number of employees


25 | P a g e J u l y 2 0 1 5 v 1 . 1

better career opportunities lack of challenge negative relationships

personal differences lack of resources incompatible values

unrealistic expectations aggressive work cultures perceptions of unfairness

disputes over promotions discrimination, harassment

or bullying health and safety concerns

negotiations of new

agreements poor job security retirement

termination redundancy personal issues (relocation)

An important way of identifying why people leave an organisation is to conduct

exit interviews. These are designed to identify the reasons for leaving and

whether anything could have been done to prevent their departure.

2.2.3 Reducing turnover

There are a number of retention strategies an employer can put in place to

reduce turnover including:

introducing work/life

balance initiatives

providing more learning

and development

opportunities

providing employees with

attractive career paths

improving remuneration providing better facilities reducing work hours

improving work conditions improving morale creating a positive work

environment

consulting with staff on

important issues

providing a safe work

environment

employing staff with

values that align with

those of the organisation

2.3 Define objectives to retain required skilled

labour

Retention strategies are those strategies that help organisations to retain

employees with the skills, knowledge, capabilities and experience they need to

meet their current and future needs. Effective retention strategies will reduce an

organisation’s need to recruit additional employees. Retention strategies should

help employees to see a future for them in the organisation and provide

employees with development opportunities that will assist them to develop their

careers with the organisation.

2.3.1 Retention strategies

Ensuring that an organisation attracts, retains, motivates and develops the

people it needs now and in the future is the basis of workforce planning. A

retention strategy that encourages employees to stay with an organisation is


26 | P a g e J u l y 2 0 1 5 v 1 . 1

essential if that organisation is going to keep the skills, talent, knowledge and

expertise it needs to meet its objectives.

Retention strategies should take into account the specific retention issues an

organisation faces and outline methods for handling them. Some retention

strategies that an organisation might use include:

talent audits – carried out to identify employees that are needed or who

have potential for future promotion

role development – focuses on making the roles within the organisation

challenging, autonomous and interesting

relationship management – employees join organisations, but leave

managers

employee support strategies - give people the tools and equipment they

need to get the job done

o provide productive, challenging job roles

o clearly define job responsibilities and accountabilities

o encourage initiative and innovation

o avoid micro-management

training, learning and development – these opportunities can be strong

motivating factors for staff as it shows an organisation is prepared to invest

time and money in a person. Organisations can work in collaboration with

educational partners (VET providers, High education providers, and school-

based programs) to increase employees work skills

Step 1 Know

yourself

Step 2 Explore options

Step 3 Research careers

Step 4 Make a decision

Step 5 Take action


27 | P a g e J u l y 2 0 1 5 v 1 . 1

performance management – effective performance management systems

help identify employees with potential, build relationships, establish career

paths, increase engagement

career planning/management – a process that leads employees through

a progression of roles to enable them to achieve their short and long term

career goals

reward – appropriate reward (including remuneration) for effort,

performance and achievements is important in motivating staff to stay

becoming an employer of choice – these are organisations that are

attractive to the workforce; they are a great place to work

o provide employees with good career prospects

o provide a positive working environment

o remunerate employees well

o care about employee wellbeing

o provide positive leadership/management

o challenge employees, give them opportunities to grow and develop

o make employees feel valued

o give employees adequate responsibility and autonomy

o allow employees to maintain a balance between work and the rest

of their life

o giving opportunities to travel, or ‘job swap’ internationally

o opportunities for taking sabbaticals

o shorter working weeks/flexible work arrangements

o leadership development programs

o coaching and mentoring programs

o adequate induction training

employee growth strategies- strategies to deal with personal and

professional growth. Good employees want to develop new knowledge and

skills in order to improve their value in the marketplace and enhance their

own self-esteem.

2.4 Define objectives for diversity and cross-

cultural management

Diversity management refers to how managers hire, supervise, use the skills and

promote employees of varied backgrounds. It is important to recognise and

accept that the workforce is changing and becoming more diverse. Diversity

within the workforce brings many benefits, including:

increased innovation: a diverse workforce means a broad range of

ideas, experiences and perspectives


28 | P a g e J u l y 2 0 1 5 v 1 . 1

improved customer service: a workforce that reflects the diversity in

the community will be able to respond efficiently to client’s needs

social responsibility: a diverse workforce will demonstrate to the

community that the organisation is supporting equity and diversity

increased adaptability: workers from diverse backgrounds will bring

individual talents with them, which will allow the organisation to be

flexible and adaptable to fluctuating markets and customer demands

broader service range: a diverse collection of languages and cultural

understanding allows the organisation to provide services globally.

Defining the organisation’s objectives for a diverse workforce will allow

appropriate strategies to be planned and implemented. Strategies can be

implemented to focus on the inclusion of minorities to create a strong, talented,

diverse workforce. The commitment to pro-actively support cultural diversity in

the workplace is driven by social and legal imperatives, as well as good business

practice. Australian legislation prohibits employers from disadvantaging

employees on the basis of their race or ethnicity.

Australian workforce benchmarks:

Australian Public Service statistics provide a benchmark indicator for the

employment of people from culturally diverse backgrounds. Census date

from the Australian Bureau of Statistics (ABS) is also a useful reference

for gaining information on the representation of different ethnic/racial

groups in the Australian labour market.

2.5 Define strategies to source skilled labour

There are a number of sources for skilled labour:

Internal recruitment – there is often an untapped well of people within an

organisation who hold skills and experiences not currently being utilised; it’s cheaper,

quicker and often more productive to the organisation to look to this source.

External recruitment – if your internal search has not been fruitful, or it wasn’t

appropriate to look internally at all, you will need to look externally to your

organisation.

Online recruitment – job boards etc. www.seek.com.au.

Company website advertising – ‘careers’ tabs on organisations websites.

Newspapers – a common, but declining method.

Trade, professional journals and magazines.

Recruitment agencies.

Networking – provides opportunities for managers to meet a range of

people before there is pressure to fill a position.

Employee referrals – ‘friends of friends’ or personal recommendations can

be a cost effective way to source skilled employees.

http://www.seek.com.au/


29 | P a g e J u l y 2 0 1 5 v 1 . 1

Adapt recruitment practices to attract a target demographic.

Promote career pathways to attract skilled, career oriented workers.

Participate in VET in schools work experience to access quality school

leavers.

Directly employ migrants on 457 visas.

2.6 Communicating objectives and rationale to

relevant stakeholders

Stakeholders are anyone who may be impacted, be impacted by or interested in

the workforce planning strategy. They can be a tremendous source for ideas and

support for initiatives, but can equally derail the strategy. They include:

The communication plan needs to inform stakeholders:

Communication is essential in the effective management of this change. Periods

of change to the workforce are very stressful for most people, employees and

managers alike. Making this process open and transparent is an important way

of reducing that stress.

While face to face communications are important in managing this process, due

to the complex nature of workforce planning, these need to be balanced with

Employees directly affected by

changes to the workforce

Line managers and supervisors directly

affected by changes to the

workforce

Employee representative bodies (e.g.

unions)

External parties i.e. clients impacted by

changes to the workforce

Contractors and suppliers affected by changes to the

workforce

Education and training

organisations involved in

workforce planning

Shareholders

The aim and objectives of

workforce initiatives, plans or

changes

How initiatives are linked to

organisational goals and objectives

Reasons for change and implications of

the changes

Benefits to the workforce (if any)

How employees roles will/won’t be

affected

What is required of employees/stakehol

ders

The expected results

Where they can get further information

and who they should contact

Legal rights and obligation

Timeline for the implementation

How to provide feedback


30 | P a g e J u l y 2 0 1 5 v 1 . 1

effective written communications for people to take away and digest in their own

time. These may include fact sheets, memos, noticeboards, newsletters, intranet

notices and so on.

Steps in creating effective written communication tool

Communication has to be kept as a two-way process. That means that

employees and other stakeholders need to feel that they can ask questions and

participate proactively in the process.

2.7 Gain agreement and endorsement for

objectives and establish targets

In order to be successful, workforce plans need be supported by stakeholders.

There are often barriers to agreement which exist because of poorly managed

historical initiatives, disagreement in principle or disbelief in the effectiveness of the

initiatives. Effective ways of addressing and overcoming these barriers include:

clearly communicating how these initiatives align with organisations goals

justifying the costs

showing that initiatives can be implemented with minimal disruption

proving that benefits to the organisation outweigh the negative effects.

In addition, wherever possible, open consultation with employees and other

stakeholders will go a long way at breaking down barriers. Consultation can be

formal or informal, however it is essential that the process is open (although

confidentiality should be maintained), accessible, and honest.

When conducting your stakeholder analysis and developing your communications

plan, it is important to consider how your stakeholders prefer to be

communicated with. Whilst some stakeholders will want face to face meetings,

many prefer using alternate methods. These may include:

2.8 Develop contingency plans to cope with

extreme situations

Collecting and

organising all relevant information

Planning the

document

Drafting the document

Proof reading and editing the document

Drawing up and proof

reading the final copy

WebinarsIntranet / Forums

Telephone / Text

Video Conferences

Email


31 | P a g e J u l y 2 0 1 5 v 1 . 1

Contingency planning is the process of identifying the ‘next best’ situation. What

if something were to go wrong? What if things don’t go according to plan? What

is the ‘next best’ situation?

Situations that may need the activation of contingency plans include:

unexpected staffing shortages due to accidents, illnesses, industrial action

resignation, illness or death of specialised or key personnel

unexpected rise in customer demand

market fluctuations affecting supply and demand for labour

unexpected delays to projects

natural disasters, acts of terror or war.

Quantifying and prioritising risks, problems or extreme situations are a risk

management process. They should be managed in accordance with the

organisations risk management policies and procedures.

Actions available for unforseen situations will vary, but may include:

maintaining a pool of casual, temporary and/or contract workers to

supplement, or replace your permanent workforce for short periods

using labour hire organisations who specialise in finding short term

employees with specific skills

paying overtime or offering time off in lieu (TOIL) if appropriate

using an alternative ‘disaster recovery’ site

cross-training staff

maintaining a contingency fund for costs of extra labour or labour related

support in times of extreme situations.

Contingency plans should contain the following:

a definition of the ‘risk/problem/extreme situation’ – the trigger

a description of how the business function will operate while the plan is in

effect – business continuation

information on variations or variables impacting the plan

details of how problems causing the interruption can be fixed while the

plan is in effect – treatment

a definition of the conditions that will terminate the contingency plan

estimates of the cost of implementing the contingency plan

Identify potential problems or extreme situations that may occur

Quantify and prioritise potential risks, problems or extreme situations in terms of likelihood and impact

Identify actions that can be taken to avoid, manage or minimise impact of risks, problems or extreme situations


32 | P a g e J u l y 2 0 1 5 v 1 . 1

a summary of the plan detailing the who, when, how of the plan.


33 | P a g e J u l y 2 0 1 5 v 1 . 1

3. Implement initiatives to support

workforce planning objectives

3.1 Implement action to support agreed

objectives for recruitment, training,

redeployment and redundancy

At times, organisations need to reduce the size of the workforce. This can be as

a result of downturn in the economy, reduction in demand for products/services,

new technology changing the skills makeup of the workforce, closure of a

department etc.

As a first step, organisations should attempt to redeploy staff. Redeployment is

the process of moving employees from one area or role where they are no

longer needed, to a vacant position in another area. Redeployment isn’t always

possible however, and when this is the case, organisations need to consider

redundancies or retrenchments.

Redundancy is the process of reducing the number of employees when the

number is higher than required. These may be limited to a particular area or

department, or may go across the whole organisation. Employees are made

redundant because their services are no longer required by the organisation.

Redundancies can be forced, where the employee doesn’t have a choice, or

voluntary. Voluntary redundancies occur when an organisation offers the

employees a financial incentive to leave the organisation voluntarily.

It’s important during voluntary redundancies, that an organisation allows the

right employees to leave and retain those employees that are still needed for

current and future activities. Employees with the most knowledge, experience

and performance levels will be the first to accept redundancy, as they are most

confident of finding a new job. These, however, are the sorts of employees that

the organisation usually wants to keep. The organisation should always retain

the right to refuse an application for voluntary redundancy where it doesn’t meet

its needs.


34 | P a g e J u l y 2 0 1 5 v 1 . 1

Retrenchment occurs if a position is deemed to be redundant (that is the duties

and tasks of the position are no longer required to be performed); then the

person holding that position is either redeployed; or retrenched if no

employment opportunity exists.

Organisations should provide assistance for employees who are being

retrenched, offering them counselling and support if required.

3.1.1 Recruitment

Recruitment is the process of attracting and selecting people who will best meet

an organisation’s current and future needs.

Ensure affected employees are

clearly informed of the situation so they can prepare to find

another job

Give employees formal period of

notice

Ensure conditions for redundancies set out

in employment contract enterprise agreements etc are

complied with

Provide suitable references

Provide severance pay

Review job design Prepare job analysis Advertise position

Highlight employer of choice benefits to attract

quality applicants

Short list applicants against selection criteria

Interview shortlisted candidates

Evaluate candidates against job

requirements: skills, knowledge, experience,

qualificatrions and attitude

Reference check leading candidiate

Select the successful applicant and make offer

of employment


35 | P a g e J u l y 2 0 1 5 v 1 . 1

3.1.2 Training and development

Training and development initiatives enable organisations to modify their

workforce by developing new skills. Training and development initiatives allow

an organisation to align their workforce capability with their objectives and

future needs.

A Training Needs Assessment (TNA) should be undertaken. This will identify:

knowledge and skills needed to perform the job

gaps in knowledge and skills

appropriate interventions that can close these gaps.

Done correctly, a training needs analysis will provide information so that training

programs are developed based on identified needs, and are appropriate to

individuals.

3.1.3 Skills gap analysis process

Identify the organisation’s needs and objectives.

Identify required competencies, skills and knowledge needed to meet

those objectives.

Identify the standards to which competencies and skills need to be

performed.

Assess employees’ current skills, competencies and levels of performance.

Determine the skills/performance gap.

Develop appropriate learning programs/approaches to meet identified

gaps.

Organisations can then use this information to develop a training needs report,

training plans and a learning and development budget with which to fill the gap.

This can then be used to develop a workforce plan.

3.2 Develop and implement strategies to assist

workforce to deal with organisational

change

Change management strategies will vary dependant on the nature or type of

change. Organisational change can fall into one (or more) of several categories,

each with their own nuances.


36 | P a g e J u l y 2 0 1 5 v 1 . 1

Change is inevitable. It can’t be stopped. But it can be managed. It’s important

that your workforce is helped through this process as change is often

unexpected, and unwelcome. Resistance to change is quite normal; however

actions to disrupt, obstruct or prevent the change process, will only cause harm

to the organisation, and ultimately the employees within it.

In order to overcome the resistance, you need to understand the reasons for it.

These can include:

•Involves major, drastic, revolutionary or fundamental changes to an organistion

•Include mergers, publicly listing, mass redundancies

•Very threatening

Transform-ational Change

•Gradual, evolutionary or small changes to structure, systems, procedures, activities, people and culture

•Includes small additions to product/service portfolio

•Relatively non threatening

Incremental Change

•Long term, organisation wide changes concerned with changes to the strategic vision of the organisation or values

•Take into account competitors, economic factors, social environment, strategic goals

Strategic Change

•Concerned with changes with an immediate impact on working arrangements

•Includes changes to procedures, structures, technology or systems

Operational Change

•Intentional, deliberate, premeditated change using predetermined strategies

Planned Change

•Not intentional and unforseen as a result of spontaneous events such as natural disasters or unexpected death

Unplanned Change


37 | P a g e J u l y 2 0 1 5 v 1 . 1

lack of trust in management

fear that familiar routines, working methods or conditions will be

eliminated

fear that change will reduce their status

fear of loss of job security

lack of understanding of the benefit of change

belief that change is not needed at all

fear that the organisation is ‘moving ahead without me’.

Consequences of not managing change will include loss of key employees,

increased stress, productivity drops, loss of market position and failure to

achieve the change objectives.

There are a range of change management models that have been developed to

assist management in achieving effective change. Some of the more common

models are:

Lewin’s ‘Unfreezing Changing Refreezing’ model

Beer’s ‘6 Step Change Model’

3.2.1 Lewin

The best known change model centres on a three phase approach to change:

Unfreezing – requires management to prepare the organisation for change.

They need to show why change is needed and motivate them to accept its

introduction. Essentially, they must create some dissatisfaction with the current

situation in order to make the organisation more willing to change

Changing – management organise, initiate and implement the changes.

Employees are reminded why the change is needed, what is expected of them,

and how they will be affected. They are also given training and support in order

to help them cope with the changes

Refreezing – management reinforces the desired outcomes of change through

using special bonuses, pay increases, promotions and recognition. Changes are

therefore viewed positively and become normal and embedded into the

workplace.

•Prepare for change

Unfreeze

•Implement changes

Change•Embed change in workplace

Refreeze


38 | P a g e J u l y 2 0 1 5 v 1 . 1

3.2.2 Beer

Beer outlines six steps to achieving effective change. Beer focuses heavily on

task alignment where employee’s roles, responsibilities and relationships are

organised to solve organisational problems. His stages are:

mobilise commitment to change through joint diagnosis of problems

develop a shared vision of how to organise and manage change to achieve

goals

foster consensus and commitment to the new shared vision and the

competence to bring it about

spread the word about the change without pushing it from the top or

management

institutionalise change through formal policies, systems and structures

monitor changes to ensure that they are solving the identified problems

(the reasons for change) and adjust as needed.

Key methods of assisting staff to work through change include providing

training, communicating openly and effectively, leading positively and providing

what guarantees you can. Other methods that can be used if available include

providing counselling, rewarding the behaviours that contribute to the change,

developing transitional action plans, giving people time to adjust to the change

and develop the new skills required.

3.3 Develop and implement strategies to assist

in meeting the organisation’s workforce

diversity goals

Strategies and behaviours that promote inclusive practices include:

Recruitment Fair and equitable recruitment practices.

For example Anti-discrimination and EEO policies.

Induction Incorporate diversity awareness in induction training.

Coaching and

support

Providing coaching and support to workers who were previously

disadvantaged in the workforce.

Cross-cultural mentoring and working relationships.

Working conditions Offering flexible working conditions to attract minority groups.

For example parental policies.

Facilities Providing quality, accessible and affordable child care options.

For example improved accessibility for those who are mobility

impaired, prayer rooms.


39 | P a g e J u l y 2 0 1 5 v 1 . 1

Communication Using inclusive language in formal and informal organisational

communication.

Training Providing training to enhance skills and career opportunities for

diverse employees.

Providing training for managing cultural diversity.

3.4 Implement succession planning system to

ensure desirable workers are developed

and retained.

Succession planning is the process of planning for the smooth continuation and

success of an organisation if key employees or leaders leave. It allows for key

employee’s positions to be filled should the employee go on extended leave.

Succession planning involves the identification and preparation of suitable

replacements from within the organisation, through mentoring, training or job

rotation. It focuses on developing high-potential employees. In order to be

effective, succession planning must be an open process that doesn’t alienate

employees.

Succession planning can be conducted in a number of ways. A common way is to

get existing personnel to identify potential replacements on a short, medium or

long term basis (these may be different people based on current skill sets). They

can also identify any development needs and can act as mentors to candidates.

This can be very successful, however it also has the potential to favour certain

people based on perceptions and relationships.

Alternatively, the organisation may create some succession planning pools where

a selection committee of senior managers and HR practitioners use pre-

determined criteria to evaluate employees over a certain level. These individuals

then have development plans designed for them.


40 | P a g e J u l y 2 0 1 5 v 1 . 1

Diagram: Succession planning

3.5 Implement programs to ensure workplace

is an employer of choice

Potential employees generally have more choices in where they work and are

consequently becoming pickier, and not relying simply on salaries to determine

where they work. Employees are less loyal and see jobs as short term steps in

their career path. As a result, organisations need to make efforts to become an

attractive employer option, or employer of choice.

There are many ways an organisation can become an employer of choice.

Business ethics and social responsibility

Many modern employees expect organisations to be aligned to their own

personal values. They are less likely to work for organisations who do not

actively contribute to the communities within which they operate, or have an

impact on. This extends to environmental responsibility, corporate and financial

ethics, and contributing to local charities.

Work-life balance

People are often ‘time poor’ and sacrifice downtime in order to complete some

work task. Downtime is important time for people to spend with loved ones,

attending to spiritual needs or simply time to oneself to relax and rejuvenate.

Organisations that actively promote a more balanced, proportional view of where

work fits into life have become very attractive propositions to candidates. For


41 | P a g e J u l y 2 0 1 5 v 1 . 1

the organisation, it reduces turnover, workplace stress, improved productivity

and higher morale and motivation.

Career development

It is not uncommon for employees to leave an organisation because ‘I just can’t

go any further in my career here.’

Many people are looking to progress along a career path, whether that is

vertically up the ladder, or horizontally across the skill sets. Organisations that

offer training, study leave, graduate programs, management trainee programs

and promotion from within, are more attractive propositions.

Financial benefits

These benefits aren’t necessarily just in salary; they can include higher levels of

superannuation, salary sacrifice options, loyalty bonuses, staff discounts, and

insurance or extra leave periods.

Diagram: Employer of choice

3.5.1 Workforce planning implementation plan

An effective implementation plan should:

Ensure that all relevant legal requirements have been identified and met.

Ensure that all objectives are met.

Communication

Employee relations

WHS

Diversity

Work-life balance

Ethics

Environment

Experience

Innovation

Reward and recognition

Continuous improvement


42 | P a g e J u l y 2 0 1 5 v 1 . 1

Be concise but complete with no important information left out.

Be written in plain English without jargon so that all persons required to

use it can understand it.

Clearly identify the workforce plans, initiatives and changes to be

implemented.

Explain why workforce plans, initiatives and changes are being introduced

and how they will contribute to the achievement of organisational goals or

objectives.

Explain why workforce plans, initiatives and changes are expected to

deliver the outcomes sought.

Identify timeframes for the implementation of workforce plans, initiatives

and changes.

Implementation plans, like other plans, are made up of several parts.

Plan definition – identify what the plan is trying to achieve, why it’s

important, and how you will know it has been achieved.

Agreement, policy, and procedure objectives and outcomes – outlines

the context of the workforce plan, the delivery model or means of achieving

the outcomes, who will be responsible for implementation.

Benefits statement – description of the measureable benefits of

implementation.

Evaluation method – describe in detail how success will be measured

(performance indicators etc.).

Governance – outline of how the plan will be managed, in particular,

accountabilities, rules, procedures for decision making etc.

Scope – explain activities included in the plan, and those not included.

Schedule – what will happen and when?

Work breakdown structure – more detailed schedule breaking major

phases of work into specific actions and tasks including resources,

dependencies and timelines for doing so.

Resources – list of all resources required to implement the initiatives.

Budget – outlines the budget to ensure effective implementation.

Risk assessment and management – how you intend to manage the risks

associated with implementation.

Communication plan – details of key stakeholders and how you will

maintain effective communications with them.

Quality assurance – details of the quality measures you have put in place to monitor the implementation process.


43 | P a g e J u l y 2 0 1 5 v 1 . 1

4. Monitor and evaluate workforce trends

Workforce plans should be reviewed constantly. They need to be evaluated

against changes in the makeup of the internal workforce and external conditions.

A key area to review is employee turnover. Why are people leaving the

organisation? This changes over time. As your workforce changes, as external

conditions change, as organisational culture and norms change, so do the

reasons for leaving. Workforce plans need to be adjusted in line with this.

4.1 Review workforce plan against patterns in

exiting employee and workforce changes

The exit interview is conducted by an HR practitioner with the express purpose

to determine what has caused someone to leave, and what, if anything, an

organisation could have done to stop it. They should also shed light on what the

employee feels about the organisation. Exit interview questions should generally

be open ended in nature to allow for as much free thought and expression.

Typical questions include:

Why have you decided to leave the organisation?

How would you describe your relationship with your supervisor/manager?

What can you say about communication with your supervisor/manager?

How would you describe the organisation?

In your time at the organisation, what was most satisfying for you?

In your time at the organisation, what did you find frustrating?

How challenging was your role?

What opportunities were you hoping for that weren’t given to you?

Did you receive enough training and development?

Were you given sufficient and appropriate feedback about your performance?

Did you feel your achievements were recognised?

What could the organisation have done to keep you from leaving?

If you were asked what it was like to work here, what would you say?

What would make you want to work for an organisation? What is most important to

you?

You will need to analyse the results of exit interviews before any strategies can

be developed.


44 | P a g e J u l y 2 0 1 5 v 1 . 1

4.2 Monitor labour supply trends for areas of

over-or-under supply in the external

environment

Demographic trends have a significant impact on Australia’s labour force. It has

been calculated that between 2010 and 2020, more people will retire than will

join the workforce. Organisations will face increasing competition for a limited

number of workers.

Globalisation and the rapid advancement of technology are changing the way

organisations can access and utilise labour. Organisations can form virtual teams

with workers based at various demographic locations. Solutions for supply of

workforce may come from accessing and attracting skills workers from other

countries.

Another trend in the workforce is the increased participation of women in the

workforce in Australia:

Female labour participation rate have risen from 45% to 55% in the last

20 years.

Women now represent about 47% of the overall labour force in Australia.

4.3 Monitor effects of labour trends on demand

for labour

Like all markets, developments in the labour market reflect the interplay of

demand and supply. There are three labour trends notable in Australia’s current

labour market:

A weakening in the growth of labour demand.

Decline in the growth of labour supply (aging population).

Slower growth of wages.

Organisations need to monitor the labour market trends and anticipate how they

will impact on their industry. Effective planning for future needs will allow the

organisation to ensure they maintain their workforce.

As the labour supply declines, organisations may need to review their job design

and create more flexible roles that are job share; or part-time; to secure skilled

aged workers.

4.4 Survey organisational climate to gauge

worker satisfaction

Organisational climate refers to the way that individual employees, and groups

of employees feel about the characteristics and quality of their organisation’s

culture. It is subjective in nature and explores beliefs, feeling, assumptions and

perceptions. A positive organisational climate will generally mean that


45 | P a g e J u l y 2 0 1 5 v 1 . 1

employees have greater job satisfaction and are less likely to look for alternative

employment.

Organisational climate impacts on:

employee retention

job satisfaction

employee wellbeing

absenteeism

workplace stress

performance levels

goal attainment

innovation

productivity

profitability

Ways to measure organisational culture and climate include:

ideology questionnaires

culture inventories

climate questionnaires or surveys

employee satisfaction surveys

opinion surveys

organisational climate questionnaires/surveys.

These questionnaires or surveys seek to assess organisations in terms of

elements that encapsulate or describe perceptions about an organisation’s

climate. They ask questions in a number of categories:

Autonomy Whether employees feel they are given the freedom to determine

their own work priorities, procedures and goals.

Conflict Whether the organisation encourages exposing problems or prefers

ignoring problems. Also are managers interested in, and open to, the

opinions of employees.

Fairness Whether or not employees feel that an organisation’s policies are

objective, reasonable, and logical and applied consistently.

Identity Whether employees feel valued by the organisation and have a

sense of belonging.

Recognition Whether they are recognised and rewarded for contributions to the

organisation.

Resources How much time employees are given to complete tasks and meet

performance standards?

Responsibility Whether employees feel trusted to carry out important work.

Risk Perception of how risky and challenging their job is, and to what

degree their organisation values playing it safe or taking calculated

risks, might also relate to the organisations value of innovation,

creativity and change.


46 | P a g e J u l y 2 0 1 5 v 1 . 1

Standards The importance placed on doing a good job, performance standards

and implicit and explicit goals.

Structure Employee’s feelings about restrictions and freedom to act, also focus

on how formal or informal the environment is.

Support How helpful, considerate and supportive managers and colleagues

are and to what degree the organisation values mutual support and

often relate to whether employees feel encouraged to make, and

learn from, their mistakes.

Trust Whether they are able to communicate with the superiors over

sensitive or personal matters.

Warmth How friendly and sociable the environment is.

Consider the following when designing a survey:

The sequence of items should be logical, preferably from easier to answer

to more difficult. Easy items encourage completion, so a difficult opening

question may encourage people not to complete, or complete truthfully.

Items that have the same or similar subject matter should be grouped

together to make it easier to respond to.

Survey should ask for facts wherever possible. Where opinions are

necessary, the scenario or context is important to capture as well.

Most respondents prefer to answer multiple-choice, yes/no or scaled

questions. Not only is this easier to tabulate, it can make for more

objective and accurate answers.

Where it is appropriate to ask freeform questions, make sure you leave

enough space for respondents to answer.

Make sure that your questions ask for information that will be easy to

remember. Don’t go too far back in time, or ask about obscure events.

Wording must be clear and easy to understand.

Questionnaires can be asked as a survey, or an interview. Interviews generally

allow for more detailed investigation, provided the interviewer builds a good

rapport with the respondent.

4.4.1 Focus groups

A focus group is a semi-formal interview in a group setting. A facilitator leads

the discussion encouraging members to take part openly with the purpose of

gaining insight from a target group. The interaction of the group can often

present information that may not have presented itself individually.

4.5 Refine objectives and strategies in

response to internal and external changes


47 | P a g e J u l y 2 0 1 5 v 1 . 1

and make recommendations in response to

global trends and incidents

In 2008 the world experienced a significant and abrupt economic downturn, in

what is now known as the Global Financial Crisis (GFC). The impact of the GFC

on some economies was extraordinary (Greece for example is undertaking very

significant ‘austerity measures’ in order to repay very large loans to their

European Union associates). Australia, whilst not untouched by the crisis, has

weathered it better than most.

Notwithstanding this, some organisations have collapsed (ABC Learning), others

have survived. Employment types have shifted dramatically from permanent full

time staff to a heavier reliance on contractors and consultants to reduce

overheads and improve flexibility. The GFC impacted on many retirement plans

with older workers needing to remain in the workforce to shore up

superannuation losses on the share market.

4.6 Regularly review government policy on

labour demand and supply

Government policies that impact on labour supply and demand include:

4.6.1 Immigration policies

As Australia experiences shortages in certain skill sets, Australian organisations,

and government, need to look abroad or invest in skills gap education. As

education has a delayed impact on supply, a more immediate solution is to

encourage skilled migration into the country.

Example At the end of the 2006/07 financial year, Australia welcomed

144,000 immigrants (excluding humanitarian migrants); the

highest number of immigrants Australia has ever recorded. Of this

amount, 68% were skilled migrants and their dependents.

Not only are these migrants skilled, they are skilled in specific areas

of shortage. Certain occupations are awarded higher ‘immigration

points’ than others, based on labour supply for the skill. Skills on

the skilled occupation list at that time included:

construction project manager

project builder

Engineering manager

production manager (Mining)

child care centre manager

medical administrator

nursing clinical director


48 | P a g e J u l y 2 0 1 5 v 1 . 1

primary health organisation manager

welfare centre manager

accountant (general).

Obviously these skills become filled over time and other gaps appear. We need

to be aware that there are changes continually occurring. Most organisations

have a specific time period whereby they review their workforce needs in

relation to this area.

There is a focus on allowing entry into Australia of target skilled immigrants rather

than individuals who may compete against the domestic workforce for jobs.

4.6.2 Education and training

Education and training is impacted at both State and Federal Levels. Policy

changes at either level can have serious impacts down the line. Federal

government provide the lion’s share of funding for education and training which

is generally distributed through state governments.

4.7 Evaluate effectiveness of change processes

against agreed objectives

The effectiveness or performance of workforce plans need to be monitored and

analysed on a regular basis to determine how successful an organisation is in

achieving its objectives. Succession plans and leadership development will

generally take a few years to show results.

Analysis of performance will generally show performance gaps, where outcomes

do not meet objectives. These usually occur for one, or several of the following

reasons:

Lack of commitment by key individuals

Lack of understanding or knowledge

Lack of resources

Failure to consult

Changes in internal and external environments

Failure to communicate effectively

Implementing unnecessary changes at the expense of necessary ones

To identify whether changes need to be made, consider:

Are current workforce plans and initiatives working well?

Are there any shortfalls in current workforce plans or initiatives?

Can current workforce plans and initiatives be improved?

Are there any recurring problems or issues?

Is there a better way of doing things?


49 | P a g e J u l y 2 0 1 5 v 1 . 1

Have the priorities or objectives of the organisation changed?

Have staff numbers increased/decreased?

Are other organisations in the industry doing things differently?

Have changes occurred in the labour market?

Have external events/influences impacted on the organisation’s labour

demand or supply?

Reviewing and updating workforce plans regularly is part of the continuous

improvement process. This continuous process is imperative to the successful

operation of an organisation. It is often based on the Kaizan or PDCA cycle and

is integral to quality and quality control.

Plan Plan changes aimed at improvement and identify and analyse

opportunities for improvement:

Identify quality requirements.

Evaluate current processes and outputs.

Develop problem solutions.

Plan the improvement.

Develop action plans, monitoring and checking processes.

Do Test, trial or implement the change. Monitor, test and record the results.

Check Check or study the test, change or intervention. Is this working well?

How well is it working? What was learned? What went wrong? Decide on

several measures which can be used to monitor the level of

improvement:

Check actual outcomes against intended or expected outcomes.

Identify areas for further improvement/adjustments.

Identify and measure the quality improvements.

Act Adopt the change, abandon it, or run through the cycle again. Analyse

performance measures to determine whether it is worth continuing with

a particular change. If it consumed too much time, was difficult to

adhere to, or even led to no improvement, then it might be necessary to

consider aborting the change and planning a new one:

Develop a new implementation plan to address any improvements

that were expected but not achieved.

Identify further opportunities for improvement.

Plan

Do

Check

Act


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Appendix: Legislation in Australian Business

This section is intended to provide an introduction to commonly used legislative and

regulatory instruments that impact on businesses in Australia. The legislation referred to

below is by no means exhaustive, but its relevance to compliance requirements is

imperative. The information provided here is not to be used as a means of providing legal

advice to others. The document is intended to provide general legislative and regulatory

compliance guidelines relating to business activities. The document is to be used as a

starting point for your own research into a particular issue. In today’s business environment

private organisations, irrespective of their business structure, as well as public sector

agencies are bound by the compliance requirements impacting on their operations. You

must remember Australian businesses are obligated to comply with a range of laws.

Legal compliance is mandatory in all business organisations. Non-

compliance is not tolerated. Ignorance of the law is no excuse!

Legislation is a set of rules, regulations or guidelines passed by an Act of parliament

(state, or Commonwealth).

Regulations support legislation and set out standards, procedures and guidelines in the

compliance of the legislation. These rules and guidelines assist organisations in properly

carrying out compliance requirements as per the relevant legislation.

Standards are usually in the form of codes of practice and relevant industry standards.

Standards apply to both private organisations and public sector agencies and departments.

It must be noted - standards are not law as such but non-compliance of the prescribed

standards and codes of practice will be evidence in itself of a breach of the legislation and

regulations and expose the person or organisation to potential liability.

General Consumer Protection Laws

The Australian Consumer Law gives effect to the most significant and extensive consumer

law reforms in Australia since 1974. It commenced on 1 January 2011 and provides a single,

national consumer law implemented through the laws of the Commonwealth (including the

Trade Practices Act 1974 (Cth), to be renamed the Competition and Consumer Act 2010

(Cth)) and of each state and territory. Federal Consumer laws govern how businesses

interact with their suppliers, customers and other businesses. They also outline the legal

rights of businesses and business owners when potential legal issues arise.

Legislation that impacts on business operations.

Managers need to be aware of legislation relevant to their particular managerial

functions and industry. Employers and managers are required to understand legal

compliance issues within their respective organisations and be able to carry out

compliance at all times as part of the management process.

Managers are both professionally and legally accountable for their conduct and work

practices within their areas of responsibility. Both the common law and statutory

provisions are legally binding on managers when conducting business operations.

Managers are therefore required to comply with the legislative and regulatory provisions

that impinge on their particular business operation(s). A failure on the part of the

manager or business owner to comply with legislative requirements will subject him or

her to potential liability. This liability will also extend to the organisation itself.

Depending on the nature of the liability, the manager or business owner may well be

liable to civil action and or criminal prosecution. An example of this would be were the

manager or business owner is found to have been negligent in the workplace under the

respective workplace legislation. The business owner may well face a negligence claim as

well as a potential criminal prosecution. Liability would also extend to the organisation, if

the organisation is a corporation registered under the Corporation Act (Cth). In the case

of a partnership structure, each of the partners would be liable.

Remember government regulations and legislation are dynamic and change

often. It is your responsibility to remain up to date.


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Access to state and Commonwealth Acts and Regulations can be found online at a

number of sources. Some useful internet sites are:

Business.gov.au , ComLaw, Freedom-of-information, Fair work , Comcare

Often federal legislation is different to that of each state, make sure you are compliant

with the correct legislation. If you are not sure, check!

Issue Legislation Details

Affirmative

action

Equal Employment Opportunity

(Commonwealth Authorities) Act 1987

Anti-bullying Fair Work Act 2009

Work Health and Safety Act 2011

People who believe they're being bullied in the workplace can

apply to the Fair Work Commission for help in resolving the issue.

Bullying occurs when a person or group of people, repeatedly

behave unreasonably towards a worker. The behaviour also has to

be deemed a risk to the worker's health or safety.

Anti-

discrimination

Anti-discrimination is covered

under the following federal

legislation:

Age Discrimination Act 2004 (Cth)

Disability Discrimination Act 1992

(Cth)

Racial Discrimination Act 1975 (Cth)

Sex Discrimination Act 19Fair Work

Act 2009 (Cth)

Disability Discrimination and Other

Human Rights Legislation

Amendment Act 2009 (Cth)

Australian Human Rights

Commission Act 1986 (Cth)

Racial Discrimination Amendment

Act 1980 (Cth)

Equal Employment Opportunity

(Commonwealth Authorities) Act

1987

State and territory legislation

follows federal Acts. For example:

Anti-Discrimination Act 1990 (QLD)

Together, they prohibit discrimination on the basis of: gender,

sexual preference, political opinion, trade union activities,

colour, race and ethnicity, social origin, religion, nationality,

family responsibility, irrelevant medical record, irrelevant

criminal history, age, marital status, carer status, parental

status, breastfeeding, disability or pregnancy.

Managers need to ensure that performance-management processes do not contravene anti-discrimination legislation. A manager can be seen to discriminate against employees when they treat those with a particular attribute (i.e. age, gender, parental status, disability) less favourably than employees without that attribute or with a different attribute. Employers and managers are also considered to be acting in a discriminatory manner if they impose an employment condition that:

an employee with a particular attribute cannot comply with

a higher percentage of people without an attribute can comply with

a higher percentage of people with a different attribute can comply with

is universally applied and that people with an impairment or a disability cannot meet

is unreasonable.

Competition

laws/

Consumer

laws

Product

liability

regulation

Australian Consumer Law (ACL).

The standards are enforced by the

ACCC Australian Competition and

Consumer Commission. The

regulator for Australian consumer

protection legislation in Australia -

Competition and Consumer Act

2010 (Cth)

Provides regulations on unfair contract terms, consumer rights

guarantees, product safety laws, unsolicited consumer

agreements, lay-by agreements and penalties, and other areas.

Further information see Australian Consumer Law: Legislative

and Governance Forum on Consumer Affairs.

Copyright Copyright Act 1968

Federal legislation applicable

throughout Australia.

The copyright law of Australia defines legally enforceable rights

of intellectual property which includes creators of creative and

artistic works.

http://www.business.gov.au/

http://www.comlaw.gov.au/

http://www.oaic.gov.au/freedom-of-information

http://www.fairwork.gov.au/about-us

chttp://www.comcare.gov.au/the_scheme/the_src_act


52 | P a g e J u l y 2 0 1 5 v 1 . 1


Employee

rehabilitation

and

compensation

Safety, Rehabilitation and

Compensation Act 1988 (SRC Act)

(Cth).

Workers Compensation and

Rehabilitation Act 2003 (Qld)

Worker Compensation Act 1987

(NSW)

Workplace Injury, Rehabilitation

and Compensation Act 2013(VIC)

The SRC Act 1988 covers:

Commonwealth and ACT public servants

employees of Commonwealth and ACT statutory authorities and corporations

Australian Defence Force members for injuries before 1 July 2004

employees of corporations with a licence to self-insure under the SRC Act.

The SRC Act provides rehabilitation and workers’ compensation

to employees covered by the scheme for a work related injury.

QLD legislation established a workers compensation scheme for

Queensland which provides benefits for workers who sustain

injury in their employment, and also for dependants if an injury

results in the workers death.

Employment contracts

See also

independent

contractors

This comes under the general law

of contract and determines the

legal relationship between

employers and employees, and sets

out the terms and conditions of

employment. Employment law is

also governed by the Fair Work Act

(Cth).

Note: many of the legal

requirements mentioned here also

refer to employment relations

under the Fair Work Act 2009

Particular issues covered include:

codes of conduct that employees are required to comply with

contractual requirements for both employers and employees under a contract of employment

organisational policies that employees need to observe, these requirements are generally set out by Human Resource Management Department

the grounds upon which an employer can terminate without notice

period of notice an employee needs to be given when employment is terminated with notice

how and when an employee’s performance will be appraised or reviewed

how the employee will be renumerated for their work. The Act set out the rights and obligations of employers and employees, and the legal nature of the contract, i.e. is it based around an award or industrial agreement? Or a separate individual contract governed by common law. The Act imposes duties on employees and employers. These duties are analogous to the conditions stipulated in a common law contract of employment. A contract of employment is to be distinguished from a contract for employment (Independent contractor).

Environmental

Australian, state and territory governments, and

local governments jointly administer environmental

protection. There are many pieces of legislation

which apply, check which one applies in your

situation. The following are some examples:

Environment Protection and Biodiversity Conservation Act 1999 (Cth)

Waste Reduction and Recycling Act 2011 (Qld)

Environmental Protection Act 1994 (Qld)

Nature Conservation Act 1992 (Qld)

Queensland Heritage Act 1992

Sustainable Planning Act 2009 (Qld)

Federal legislation governs the process of assessment and

approval of national environmental and cultural concerns.

State and territory environmental protection legislation applies

to specific business activities.

For further information, see business.gov.au: Environmental

legislation.


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Ethical

principles

There is no specific legislation that

deals with ethical standards and

conduct. However in terms of

legislation governing the public

service sector there are laws that

apply. Eg: the Public Sector Ethics

Act 1994 applies to Queensland

Public Service.

No specific legislation exist that

applies to relevant industry delete

this. The following legislation

impacts on ethical behaviour and

conduct in general.

Crime and Corruption Act 2001

(Qld)

Public Interest Disclosure Act 2010

(Qld)

Standards detail the kind of behaviour a company or person with

sound ethics should and should not engage in. These standards are

normally contained in the Human Resource manual of each

organisation. (Look at the HR manual at your workplace).

Unethical actions will destroy trust and credibility.

Ethical principles include: honesty, integrity, promise keeping,

loyalty, fairness, caring, respect for others, legality,

commitment to excellence, leadership, reputation,

accountability and avoiding conflicts of interest. Ethical

principles and considerations are generally dealt with by separate

pieces of legislation depending on the legal matter involved.

Common Law has implications as well with regard to Ethical

considerations. As always seek legal advice for your specific

issue.

Each business should have relevant HR policy and procedures

covering this for their practices.

Freedom of

information

Freedom of Information Act 1982

(Cth)

The FOI Act provides a legally enforceable right of access to

government documents. It applies to Australian Government

ministers and most agencies, although the obligations of

agencies and ministers are different.

FOI allows individuals to see what information government

holds about them, and to seek correction of that information if

they consider it wrong or misleading.

Human rights The Australian Human Rights

Commission Act 1986 (Cth)

Australia is a signatory to Treaties and Conventions dealing with

Human rights which legally binds Australia to Human Rights Laws.

Independent

contractors

See also

employment

contracts

Before entering into a contract,

determine whether someone is

classified as an independent

contractor or an employee. This will

determine the rights and

responsibilities of each party.

Independent contractors are self-employed and provide a

service to a business.

They negotiate their own payments and work arrangements,

and can work for a range of clients at any given time.

Indpendant contractors are required to take out their own

private superannaution, workers compensation, and in many

cases professional indemnity insurance.

Industrial

relations

legislation

Fair Work Act 2009 (Cth) The current Commonwealth legislation is a principal Law that

governs Industrial relations in Australia.

The Act deals with workplace disputes, unfair dismissal, and

anti-discrimination. Allows workplace disputes to be settled by

enterprise bargaining between employers and unions in the

workplace. If the dispute is not able to be settled, it then goes

to Fair Work Ombudsman and Fair Work Commission. The QLD

legislation -Industrial Relations Act 1999 (QLD) governs public

service employees as well statutory authorities such as City

Council employees. This group of employees do not fall within

the ambit of the Commonwealth legislation.

Privacy Privacy Act 1988 (Cth) There are specific requirements for the management of

sensitive information e.g. medical records.


54 | P a g e J u l y 2 0 1 5 v 1 . 1


You must be aware of your

obligations under the Australian

Privacy Principles (APPs).

Australia has national privacy

legislation, overseen by the Office

of the Australian Information

Commissioner (OAIC). This

regulates how businesses collect,

access, and store personal

information and communication.

Legislation applies to a number of different activities and

sectors. Australian states and territories also have individual

privacy laws that may apply in the workplace and affect

business in each jurisdiction. A new set of privacy principles

was introduced in March 2014. The principles cover how a

business handles personal information, including the:

handling and processing of personal information

use of personal information for direct marketing

disclosure of personal information to people overseas.

Racial

discrimination

Racial Discrimination Act 1975

Sex

discrimination

Sex Discrimination Act 1984

Trade

practices

Australian Consumer Law (Trade

Practices Amendment (Australian

Consumer Law) Act (No. 1) 2010;

Trade Practices Amendment

(Australian Consumer Law) Act (No.

2) 2010)

From 1 January 2011, Australian Consumer Law reforms

introduced a new regulatory environment for competition and

consumer protection laws in Australia. The Competition and

Consumer Act 2010 replaces the Trade Practices Act 1974 (Cth)

(TPA). All references to ’TPA‘ refer to provisions of the

Competition and Consumer Act (from 1 January 2011) and the

former Trade Practices Act (up to 31 December 2010). See

Competition laws and Competition Laws in this table for more

information. Competition and Consumer Act 2010

Unfair dismissal Or unlawful dismissal

The primary piece of legislation relating to unfair and unlawful dismissal is Fair Work Act 2009 (Cwlth).

Under this legislation, employees can claim their dismissal was

harsh, unjust or unreasonable, not a case of genuine

redundancy or the dismissal was not consistent with the Small

Business Fair Dismissal Code.

Work health

and safety

Work Health and Safety Act

2011(QLD)

Some states still use their own

occupational health and safety

(OH&S) laws, so be sure to check

with your state as to the particular

areas you need to comply with.

Under health and safety legislation,

employers have a duty to ensure

that employees' working

environments are safe and pose no

threats to their health and

wellbeing.

Under this legislation, risks to health and safety also includes bullying and violence in the workplace. Bullying can be defined as repeated, unreasonable behaviour directed at employees that poses risk to health and safety. Management needs to ensure that in carrying out their duties, their behaviour cannot be construed as bullying. Particularly relevant when addressing poor employee performance. They should be careful not to:

verbally abuse employees, exclude or isolate employees

set employees impossible tasks or assignments

harass employees, psychologically or otherwise, or intimidate employees

intentionally withhold information vital for effective work performance

assign meaningless tasks to employees are not job related.

Workplace

diversity

This federal and state legislation covers workplace diversity and equal opportunity in Australia:

Australian Human Rights Commission Act 1986 (Cth)

Age Discrimination Act 2004(Cth)

Sex Discrimination Act 1984(Cth)

Racial Discrimination Act 1975(Cth)

Racial Hatred Act 1995(Cth)

Disability Discrimination Act 1992(Cth)

http://www.comlaw.gov.au/ComLaw/Legislation/ActCompilation1.nsf/current/bytitle/83C2B3F207F6B920CA25780D007BE2A8?OpenDocument&mostrecent=1


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Workplace Gender Equality Act 2012 (Act)

Fair Work Act 2009(Cth)

Equal Employment Opportunity (Commonwealth Authorities) Act 1987

State-based anti-discrimination and WHS laws

Remember:

You need to be aware of your own responsibilities. Legislation changes, keep up to date.

Non-compliance is not tolerated and ignorance of the law is no excuse!


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References

Cole, K, 2012. Management: Theory and Practice. 5th ed. Frenchs Forest:

Pearson Australia.

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