Employer Breakfast 4th May 7:30 am

Menaka Cooke,

HR Director

Zumtobel Lighting Division

Thorn Lighting Pty. Ltd.

Skilling the Existing Workforce in NSW

Training is a benefit

• Training is not a cost – it is a benefit

• A bigger benefit if government subsidises your staff training!

• To become the lucky country – we need competent, intelligent and skilled staff

• As Manufacturing faces global competition (& cheaper labour overseas) - our workers need to be competent and multi-skilled to meet changing business demands

• Workers need to know the 2-way deal – They need to be literate, numerate, skilled for themselves

– The company and the workers need to be responsive to customer demands –

• Companies need to broadcast their investment in their workers NOT just in plant and equipment – if they are to stay competitive

Training and the new business environmentGovernment and business reform has had deep impacts on companies

– WorkChoices and Case law; changes to IR institutions

– Deregulation of markets – financial, service, legal, manufacturing

– Booming economy especially finance, technology & service sectors

– High inflation; wages growth of 5+ %

– Population growth is 0% ZPG (ageing baby boomers); needs and expectations of Gen X & Y

– Jobs are growing… but skills shortage is huge

• Today’s top skill shortage is in Sales staff (professional and business to business)

• Followed by Engineers, Skilled Trades, Accountants, Technicians,

• IT Staff, Drivers, Mechanics, Receptionists and Admin Assistants!

(Manpower 2006 White Paper)

Upskilling & re-skilling - now and in the future

WHERE JOBS ARE BEING LOST & WHERE THEY ARE GROWING?

Need new ways to have a solid workforce – recruitment & retention

•Migration, Re-skilling of older workers, Offshore, Flexibility

•Training and development is a key plank in any Employer’s retention strategy

•Train workers now to fulfill your business’ needs + contribute to their future careers

Business need drives the ‘war for skills’

• Evaluate each section and grade of workers (training needs analysis) – also look at National Competency framework – see what a job needs– What are the competencies required to do each job– What competencies/skills & education does each worker have– What is the gap? Ask your managers what they need of the staff to get a good job done

• Evaluate the business strategy and plan– Where is your business going? What is the competition and what are they

doing to get ahead?– What are your business’ unique differentiators? – What are its assets… plant, people & equipment– What could be done better or differently to increase sales or market share– How can your employees help in this improvement? How will you use

and invest in their skills?

What next? Partnering to get a Skills provider

• First identify your business needs (vis a vis people)• Form some view on training plans especially in view of company and

regulatory requirements, cost constraints and timelines• Identify a Registered Training Organisation (RTO) in sync with your

business• RTO may be able to assess staff competency against workplace skill

requirements• May also help in identifying current competency and prior learning • Should help you in establishing performance measurements before and

after training aligned to company goals and business plans (ROI)• Must have latest research and learning methodology

Partnering with an RTO • The Registered Training Organisation should advise you on education

programs and courses available

• Capable of delivering high quality training flexibly to optimise learning outcomes

• Able to tailor a training course to your business’ unique needs

– Customising of core competencies

– Contextualising course content (in line with workplace needs)

– Aligning training with strategy and culture

• Together draw up a training schedule with no. of participants, competencies required and how training will be delivered

Our experience: accessing training

• Process took months; can be very convoluted

• Assessing employees (skills and education)

• Suggesting qualifications for workers who qualify for Australian Apprenticeship financial incentives

• Convincing Production Managers and supervisors!!

• Communicating with workers about the program

Australian Apprenticeships• A training and employment agreement that involves a full

qualification• The collective term for all traineeships and apprenticeships

2 types:• New employees who have been with employer less than 3 months

full-time or the part-time equivalent • Existing workers with no previous qualification or where their

qualification or Trade Certificate was more than 7 years ago can be signed up to an Existing Worker Traineeship

• Up to $4,400 of financial incentives to the employer from the Australian Government, administered by the Department of Education, Science and Training (DEST) and Australian Apprenticeships Centres

Funding the costs of training delivery in NSWNormally –• New employee + Australian Apprenticeship: NSW Department

of Education & Training funds training delivery• Existing worker + Australian Apprenticeship: Employers use the

Australian Government incentives received to pay for the training

If your business is in an emerging or high growth industry• Existing workers may be eligible for publicly funded training

through the Strategic Skills Program (SSP), administered by the NSW Department of Education & Training

• SSP funded training is available independently of whether the worker is signed up to an existing worker traineeship

• SSP funding may also be accessed for “skill set” training ie. not a full qualification

• Other funding is available to support workers needing language, literacy and numeracy training , through Workplace English Language and Literacy (WELL) program

Current training on site

• Previously enrolled our new Customer Service Centre staff (up to 10 in Business Admin Certificate)

• Now 73 people enrolled in Cert III (Process Manufacturing) which includes elements of Competitive Manufacturing

• Moving to a new site at Wetherill Park this month• Competencies which training will focus on

– Quality, OH&S, Continuous Improvement, Communication, Teamwork

• Part of the induction in new work processes and systems • And building a new culture!

How long does it take to access funding

• After the Registered Training Organisation identifies who workers are, the AAC (Australian Apprenticeships Centre) provider comes and signs them up to an Existing Worker Traineeship

• Some weeks later the company receives the Australian Government employer financial incentives for the traineeship, organised through AAC – up to $4400 per person

• Under Strategic Skills Program (NSW), employer works with RTO to identify their workforce skill needs

• The RTO is busy in the meantime, setting up strategies and programs in consultation with the employer…

• The training starts – individual, workshop, on-the-job• As soon as the money comes in, the RTO invoices the employer for its

fees to provide the training

Benefits of the training accessed

• Skills to help employees now in improving productivity and their own marketability

• Confidence in their own skills and ability to participate in changes happening around them (confidence to take the lead if possible because the veil of ignorance is shattered)

• Learning & practicing new skills/ideas immediately (reduces the fear)

• Internal promotion opportunities (we made it clear that in future to become supervisor/team leader was linked to education and upskilling)

• Boosted employee confidence - that they were being invested in (not exploited)

Some challenges in accessing training

• Need for ongoing admin support

• Staff willingness to undergo training – how do you sell the concept

• Need to work with supervisors that after agreeing with the schedule, staff must be released to do the training

• Some staff are afraid of showing their ignorance or at times illiteracy and lack of numeracy (We were able to access one-on-one coaching as well as taking a person through active on-the-job supervision learning rather than marking a book…)

How is this training different?

• To other training options available – need not be off-the-shelf training

• Is it unique? Focused on individual needs?• Is it tailored to meet business needs?• Is it team-aligned? (besides business and individual)• Can it be linked to production and manufacturing

benchmarks? Ie. the ROI to the business or the output measures set to identify the results of training

In conclusion

• Retention (fire-proofing against skills shortage) strategy

• Morale booster

• Productivity enhancer – right skills in the workplace

• Bottom-line savings to the business

• Competitive advantage to survive economic hard times