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John Cairns
Future of Industrial Relations Conference
October, 2014
Differentiating means from ends: Workforce
Planning and Workplace Relations.
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What we will cover
Introductory Remarks
Three key considerations
Use workforce planning to take a holistic approach to workplace
relations
Direct attention to the hearts and minds – this IS the role of
management
Consider the approach to bargaining
Concluding remarks
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A range of challenges requires a range of solutions
Increasingly complex labour market challenges require a broad range of approaches to workforce management
In 2006, the Victorian Government developed a holistic approach to address such challenges
Such multi-faceted approaches have a number of workplace relations considerations
These broad considerations are relevant as either ïnterests” or “fault lines”.
Developed by the State Services Authority of Victoria
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Increasing role of attraction and recruitment strategies
Drivers:
Increasing skill shortages.
Increasing private sector
competition.
Increasing competition
by other states and
countries.
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Potential directions:
Employment branding strategies.
Reviewing recruitment approaches.
Identifying areas of competitive advantages of public sector employment.
Interests/Fault lines:
External vs Internal selection
Internal wage relativities
Fit for purpose flexibility
Intergenerational difference
Restrictive recruitment rules
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Growing labour supply
Drivers:
Decrease in entry to skills development infrastructure (ex courses).
Responsiveness of universities to government employment needs.
Effect of funding arrangements for university training.
Stewardship role in market.
Inflexibility in matching qualification to task
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Potential directions:
Increasing attractiveness of study for selected courses.
Influence university ciriculum to meet needs of Government.
Redesign roles to increase supply from alternative sources.
Develop policy for skilled migration.
Increase voluntarism models.
Developing partnering models
Interests/Fault lines:
Formal assessment and recognition of skills
Access to overseas skills where in shortage
Improved efforts in co-creation
Demarcations –organisational and functional
Alternative ownership models – PPP’s - skills
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Investing in development
Drivers:
Developing staff to meet retirement gaps.
Shifts in build/buy proposition.
Changing skill sets.
Increased demand and complexity of public service.
Loss of corporate and tacit knowledge
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Potential directions:
Return on investment from L&D.
Succession planning.
Developing a knowledge management approach.
Developing common supporting infrastructure.
Creating room for learning.
Interests/Fault lines:
Streamline training and skills recognition
Targetted vs generalised development
Mutual responsibility to train and learn
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Increasing agility in public sector employment
Drivers:
Restrictions in staffing numbers.
Uniform salary arrangements.
Staff movement rigidity.
Increasing use of diffused funding and delivery models.
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Potential directions:
Review staffing and salary caps.
Reviewing salary levels.
Review salary structures.
Developing adaptive capacity to manage redundant skill and knowledge.
Better managing contracting resources.
Interests/Fault lines:
Pay flexibility for shortage –internal and external relativities
Role of Performance Pay
Flexibility in TCR arrangements
Management of poor performance
Capacity to utilise flexible forms of work
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Improving participation, retention and motivation
Drivers:
Expected retirement of experienced public sector staff.
Increasing age of public sector workforce generally.
Increasing separations resulting from tightness of market.
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Potential directions:
Removing barriers and disincentives to increased participation.
Promoting work-life balance and flexible work practices.
Promoting better health outcomes.
Interests/Fault lines:
Accountability for management behaviour –ex bullying
Win-win flexibility
Fitness, readiness and privacy
Commitment to corporate goals
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Improving workforce planning capability and governance
Drivers:
Increasing significance of labour constraint making workforce issues a strategic issue.
Increased emphasis on demand management.
Increased system wide perspective required.
Increasing data requirements.
Increasing skill required to manage the issues.
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Potential directions:
Improve link between policy setting and workforce planning.
Improve link between departments and agencies.
Improve methods, process and procedures to support workforce planning.
Improve workforce projection capability.
Improve workforce planning capability.
Interests/Fault lines:
Containment vs Engagement
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The dynamics of change are difficult
Public
ownership
Amendable
Management
Powerful
unions
• Vince Graham commentary in Australian –
20/8/14 – very instructive
• Reflects on three powerful forces that makes
change difficult in a public sector setting:
• Public Ownership• Amendable managers• Powerful unions
• Directs itself to the things that need to be
managed
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Lead the difference
We display leadership in all that we
do
Make a difference
We achieveour goals
consistently
We live our values
through our behaviors
Prepared to make a difference
We actively participate in the planning and execution of work
We exercise all our skills and demonstrate our
expertiseStrategies:
• Employees are aware of the
importance, opportunity and
expectations of working for
Sydney and NSW Trains• Driving greater focus and
mutual responsibility on
employee wellbeing especially
high risk areas• Health and presentation
standards are met
Strategies:
• Ensure all staff have the
relevant competences to do all
work as directed within their
skills and training without
regard to demarcation or other
barriers• Accountabilities are clear and
policies and processes enable a
productive work environment
Strategies:
•Promote pride in being part of the Rail Team•Instilling universal cultural signals and developing understanding within individuals regarding their specific
role in the journey•Behaviours consistent with Sydney and NSW Trains’ values demonstrated
Strategies:
• Business objectives
cascaded through an
aligned planning, goal
setting and PDP process• Fostering an environment
where performance
discussions and feedback
are encouraged, required
and welcomed• All staff have individual
performance goals and are
held to account with known
positive and negative
consequences
Strategies:
• Leadership skill and
aspirations improved at
every level• Sound identification and
development programs to
secure, encourage and
retain high performing
leadership talent• Thought leadership,
innovation and
implementation of new
ideas encouraged and
proactively supported.
The Change Agenda – Cultural underpinnings – how we work
Sydney Trains – A case study in cultural
transformation
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Sydney Trains change journey – much of it done in strong industrial
climate
Measuring and
managing culture
Establish Accountability & Performance Planning
Launch & Communicate SPACE
Skills/Talent governance
Absence Control
VSP and Attrition
Re-fresh Capability
Foundation
Work
Pe
rfo
rma
nc
e a
nd
S
kil
lC
ulture
Jan 12 July 2013 Now
Work design changes – ex Depot consolidation
Enterprise Bargain changes
Work
Environ
ment
Launch of
Sydney Trains
Embed momentum
–” the plan”
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A well thought through industrial strategy was essential
• Strategic implementation of programs
• Rigorous observance of consultation
arrangements
• No surprises for unions – strategic information
sharing
• Direct communications with staff – never stop
talking
• Improve management accountability
• Responding to flare ups quickly and decisively
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But the key is management actively seeking to win the hearts and minds of employees
Public
ownership
Amenable
Management
Powerful
unions
•Vision: clarity and consistency of vision
•Communication Style: One way communication vs two
way engagement
•Accountability of management – Ensuring managers
lead from the front
•Clarity and consistency of behaviors: - articulating and
living the values and behaviors
•Hygiene: Dealing with the elephants in the room
•Welfare: management to understand this is the
responsibility of management
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ValuesSafety is at the heart of all
we do; all injuries are preventable
Communicating openly; working effectively together;
sharing ideas and perspectives
Owning our actions; making bold and pragmatic
decisions
Taking pride in our role and in our personal presentation; recognising our value at
work
Striving for excellence; exceeding all expectations;
focusing on the best end result
Strategic
Objectives
Improve customer
experience with rail transport services
Trains on timeImplement
efficiencies across the business
Grow patronage on
public transport
Create and foster
an environment that improves safety
Reform delivery of
rail services
Improve Asset
Reliability
Create an effective
and accountable culture
Drive productivity
and efficient
Create change and resilience
Vision
Our vision is to keep Sydney moving by delivering safe, customer-focused, reliable and clean rail services.
We contribute to the success of transport in NSW by running effective and efficient rail services which exceed our customers’ expectations,
support growth and contribute to the broader community and the economy.
Strategic
ThemesCustomer &
AccessibilityTravel Business Environment Safety Asset People
ExcellenceBehaviours Safety Pride Accountability Collaboration
Vision and clarity of message: Strategy on one page
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The role of engagement vs communication can not be under estimated
Hard systems (head/functions)vs
soft systems (heart/people)
Soft Systems Thinking – use of
Processes for Organisation
Meaning (POM) can help
It describes the interrelationship
between discourse, meaning,
action and different ways
participants view things based on
history, culture and expectations
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Our first stake in the sand: Performance and Accountability Framework to make explicit
authorities, accountabilities and consequences
Business Performance
Objectives (informed by
RSC)
Business Values (TBC)
Driving achievement through
clear specification of objectives
and KPI’s
Driving culture through the right
behaviours of all based on our
vision and values.
Clarifying authority and
responsibility through the
development of level
performance standards
Identifying and developing talent
to promote succession planning
Disciplined
and aligned
performance
system
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Being Accountably for WHAT we do
• At the core of our business planning are the promises we make to each other – this is not just compliance
• Strong alignment to business planning approach
• Differentiate between critical objectives and specific objectives
• Critical objectives to be SMART and specific objectives to be milestone driven
• Initial focus on first round recording of objectives and their assessment
• Focus of attention moving forward– Developing SMART objectives– Making and receiving
promises
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Clarity and consistency of behaviours
• How we do things is as important as what we do – Clarity of our expectations– Credibility and trust– A means to call good and bad behaviour– Dealing with the urgent and the important– S.P.A.C.E common sense approach based
on focus group work in the organisation
• Differentiate between three levels of employees – the behaviours are ubiquitous, they way they will manifest themselves will be different
• Already used as part of recruitment as part of PD’s and recruitment process
• Performance process in the initial instance will involve:
– Developing specific commitments of what will be done to demonstrate behaviours
– Manager employee assessment and weighting
– Pulsing to organisation on these behaviours
Safety
Pride
Accountability
Collaboration
Excellence
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Further workshops and interviews aided articulation of specific supportive behaviours
of each level (3 of 3)
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Organisation Welfare: Dealing with the personal impact of change
Change and wellbeing
ttraditionally seen as mutually
exclusive
Change can positively or
negatively impact on employee
wellbeing through increases
morale, distress and relative job
satisfaction
Wellbeing is affected by a
combination of personal
characteristics, organizational
climate and specific work
experiences
Cotton P and Hart P, Occupational Wellbeing and Performance: A review of organisational Health Research, 38(2003) Aust. Pyscologist 118
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Hygiene factors - The elephants in the room
Need to address squarely those things that are barriers to great performance
These are important signalling activities
In Sydney Trains:
Absence Management
Performance Management
Middle Management resistance
Senior Management Capability
Industrially this required:
Clarity of intent and follow through
Respect for rights while maintaining momentum
Pragmatic implementation without compromising objectives
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Collective bargaining styles
Will avoid the inclusion/exclusion debate
While recognising legitimate interests – there is still an important trade off to be considered
Distributive bargaining remains predominant –especially in traditional industries
Opportunities to advance in 1980’s have diminished –from employer and union perspectives
The productivity agenda may see a focus in this areas re-emerge –especially where unions retain significant influence
Containment
Engagem
ent
Interest based bargaining
• Bargaining style: interest based (win/win)• Relationships: High trust/open exchange• Domain of discussions: vulnerabilities• Logic of discussion: Building platform for change
Distributive Bargaining
• Bargaining style: zero sum negotiation (win/loose)• Relationships: Low trust/positional• Domain of discussions: Strengths• Logic of discussion: Rules/entitlements
Government
Passive
Management
Powerful
unions
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Queensland Health Nurses – a case in point
What was the enabler
2002 failure of negotiations – major conflict and unsatisfactory outcome. Parties dissatisfied with status quo
Union conflicted by impact of industrial action on ”professional identity”
QH politics of shooting bambi and major systemic issues around retention of staff and shortage of health resources
Union and nurses generally too “powerful’ to be ignored
Strong feeling of a higher shared purpose – commitment to health care
How were the discussions different Much more lengthy discussions about interests – very time consuming but
far more productive discussion – exploring/expanding issues rather than narrowing issues
Much more emphasis on joint work – “joint initiatives of high mutual value”– the scope of bargaining significantly expanded
Quality of outcomes better but requires intensive investment
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Queensland Health Nurses – a case in point
Challenges
Confronts prevailing operating models
For unions – requires strong leadership:
inconsistent with conflict model
Inconsistent with organizing/representative model
For employer –
Requires high level of trust and information sharing
Requires investment of significant time and
resources
Stakeholders can confuse trust for being soft
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Concluding remarks
The realities of the labour market require a holistic
perspective on managing industrial environments in
the public sector
In a number of industrialised public sector
organisations such as rail, considerable change is
being prosecuted in a highly organized industrial
environment
The role of managers to win the hearts and minds of
employees is crucial to this
While most organisations find themselves in a
distributive industrial environment, there may be
opportunities to explore other models to accelerate
change