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Australia’s Workforce ‘Skills Gap’

Managers give their views on the impact of the escalating skills crisis

Australian Institute of Management - Qld & NT December 2009

Innovation l Culture l People l Strategy l Management l Leadership

Institute of Management - Qld & NT December 2009 Innovation l Culture l People l Strategy

© Australian Institute of Management

This report has been produced by the Australian Institute of Management. Apart from any use permitted under the Copyright Act 1968, no part of this publication may be reproduced without express written consent. Requests should be made to the Australian Institute of Management.

The views and opinions expressed in this document are those of the Australian Institute of Management.

For further information regarding the contents of this report, please contact:

Mr David Hoey

Manager, Marketing and Community

Australian Institute of Management

369 Boundary St, Spring Hill 4000

Phone – +61 7 3227 4888

Email – enquiry@aimqld.com.au

Executive Summary

The response data from our latest survey paints a picture of a nation that is in the midst of a chronic workforce skills crisis.

We surveyed more than 2,000 executives and 76% confimred their organisations have a workforce skills gap.

Furthermore, 71% of survey respondents believe the skills gap is impacting on organisations across their state or territory.

And when we asked each survey participant to name the specific skills gaps in their organisation, ‘leadership’ was ranked the number one problem. The leadership skills gap was ranked highest in the public sector (51%) and lowest in private limited companies (40%).

The response data confirmed our view that skills gaps are most prevalent in the middle management ranks. Fifty one per cent of respondents said middle managers have the most significant skills gap - next highest ranked are customer service employees and senior managers (both

25%).

Of interest is that respondents ranked the top level management of Australian organisations (CEOs, Board directors and business owners) as having the smallest skills gap (8%).

Significantly, for those organisations without a skills gap, a ‘strong commitment to training and development’ was said by respondents to be the main reason why (65%).

©Australian Institute of Management – Qld & NT

And for those organisations with a skills gap, respondents said that investment in training and development is the number one solution being adopted.

The response data also makes clear that investment in training and development is a crucial employee engagement tool.

Sixty nine per cent of respondents said the skills gap crisis is putting ‘more stress on employees’. Clearly, this is an unsustainable situation. If profits and organisational performance are not to take a long-term hit because of the skills gap, organisations need to ensure they have effective skills enhancement, recruitment and retention strategies in place as a top order priority.

and retention strategies in place as a top order priority. Carolyn Barker AM FAIM C hief

Carolyn Barker AM FAIM Chief Executive Officer

Australian Institute of Management - Qld & NT December 2009

Methodology

The Australian Institute of Management has conducted this survey to get managers’ views on the workforce skills gap and to find out how their organisations are responding to the situation. A key survey requirement was to determine the extent of the skills gap within Australian organisations. We defined ‘Skills Gap’ for survey participants as the gap between an organisation’s skills needs and its current employee capabilities.

The survey was sent to all management levels ranging from board members, CEOs and business owners to middle management and team leaders. Survey participants were sourced from the Australian Institute of Management database. The majority of survey responses were drawn from Victoria and Queensland.

The survey was open to respondents on 27 October 2009 and closed on 17 November, 2009.

In total, 2,163 responses have been used in the analysis of our survey results. Results used to conduct the analysis include only those who have completed the full survey.

of our survey results. Results used to conduct the analysis include only those who have completed

Survey Results

We defined ‘Skills Gap’ for survey participants as the gap between an organisation’s skills needs and its current employee capabilities.

Question 1: Do you think there is a skills gap in your organisation? 24% Yes
Question 1: Do you think there is a skills gap in your
organisation?
24%
Yes
No
76%

Diagram 1: Skills gap in organisation

 

1 - 50

51 - 100

101 - 200

201 - 500

501-1000

1001 +

Yes

68%

77%

74%

78%

80%

77%

No

32%

23%

26%

22%

20%

23%

Table 1: Skills gap in organisation

• The vast majority of Australian organisations (76%) have a skills gap according to the survey response data.

• Smaller organisations (1 – 50 employees) have experienced the lowest skills gap (68%) in contrast to large organisations (200+ employees) which have an average skills gap of 78%.

the lowest skills gap (68%) in contrast to large organisations (200+ employees) which have an average

The following question has been filtered to respondents who have answered ‘No’ to Question 1: Do you think there is a skills gap in your organisation?

Question 2: How is your organisation avoiding a skills gap in your workplace? (Select all that apply)

• Respondents who do not think there is a skills gap in their organisation, believe their organisations have avoided a skills gap by:

Strong commitment to training and development in their organisation

65%

Promoting internal job candidates

57%

Flexibility when recruiting to look for people with the right core skills base then up skilling them

50%

Strong commitment to training and development in organisation

Promoting internal job candidates

Flexibility when recruiting to look for people with the right core skills base then up-skilling them

Recruiting outside the organisation for relevant skills

Using internal resources to boost training

Using external training providers to boost training

Predicting future skills needs

Outsourcing work to an external provider

Conducting a skills inventory

Using baby boomers as mentors

65% 57% 50% 49% 45% 41% 32% 25% 20% 18% 0 10 20 30 40
65%
57%
50%
49%
45%
41%
32%
25%
20%
18%
0
10
20
30
40
50
60
70
80

Diagram 2: Top 10 methods used to avoid a skills gap in organisation

Strong commitment to training and development in organisation

65%

Promoting internal job candidates

57%

Flexibility when recruiting to look for people with the right core skills base then up skilling them

50%

Recruiting outside the organisation for relevant skills

49%

Using internal resources to boost training

45%

Using external training providers to boost training

41%

Predicting future skills needs

32%

Outsourcing work to an external provider

25%

Conducting a skills inventory

20%

Using baby boomers as mentors

18%

Employing skilled people from overseas

15%

Employing skilled people from interstate

13%

Using government resources / funding

13%

Other

2%

Table 2: Methods used to avoid a skills gap in organisation

(Questions 3 – 9 have been filtered to respondents who have answered ‘Yes’ to ‘Question 1: Do you think there is a skills gap in your organisation?’)

Question 3: Why do you think there is a skills gap in your organisation? (Select all that apply)

• Respondents who believe there is a skills gap in their organisation, attribute this to:

» ‘Skills in current workforce do not match changes in company strategy, goals, markets, or business models’ (47%)

» ‘There are too few qualified candidates when hiring for certain types of jobs’ (42%)

» ‘There is no long term commitment to employee learning and development’ (24%)

• CEO/Board Directors (89%) and Business owners (83%) said there is a long term commitment to employee training and development in their

Skills in current workforce do not match changes in company stategy, goals, markets or business models

There are too few qualified candidates when hiring for certain types of jobs

There is no long term commitment to employee learning and development

The organisation does not have sufficient funds to employ people to fill skills gaps

Training budget has been cut

Our organisation has made retrenchments

other (Total)

organisation. This response data provides an interesting contrast to lower level managers where 71% of Middle Management and 75% of Team Leaders/ Supervisors believe there is a long term commitment to employee training and development.

• There is further evidence of a gap between the views of CEO/Board Directors and lower level management when it comes to assessing the reasons why there is a skills gap in their organisations. Five per cent of Business owners and 12% of CEO/Board Directors believe that a reduction in the training budget has been responsible for a skills gap in their organisation compared to 21% of Middle managers and 23% of Team Leaders/ Supervisors who have this opinion.

47% 42% 24% 19% 18% 15% 8% 0 10 20 30 40 50
47%
42%
24%
19%
18%
15%
8%
0
10
20
30
40
50

Diagram 3: Reasons why there is a skills gap in organisations

 

Business

CEO/ Board

Senior

Middle

Team

Professional/

Team

Owner

of Director

Manager

Management

Leader/

Specialist/

Member

Supervisor

Technical

Skills in current workforce do not match changes in company strategy, goals, markets, or business models

42%

52%

50%

47%

38%

46%

36%

There are too few qualified candidates when hiring for certain types of jobs

57%

48%

43%

40%

40%

35%

35%

There is no long term commitment to employee learning and development

17%

11%

20%

29%

25%

31%

24%

The organisation does not have sufficient funds to employ people to fill skills gaps

25%

30%

17%

21%

18%

17%

18%

Training budget has been cut

5%

12%

16%

21%

23%

20%

27%

Our organisation has made retrenchments

3%

13%

12%

18%

17%

23%

20%

Other

5%

3%

1%

2%

2%

1%

4%

Table 3: Reasons why there is a skills gap in organisations by position

Question 4: What skills gaps is your organisation experiencing? (Select all that apply)

• Of real concern is that respondents identified leadership as the number one skills gap across Australian organisations. The top skills gaps identified by respondents are:

» Leadership (45%)

» Professional or industry specific skills (43%)

» Process and project management skills (36%)

» Managerial (31%)

» Communication/ interpersonal skills (31%)

• Large organisations (1000+ employees) are experiencing the highest level of ‘Leadership’ skills gap at 53% compared to 33% of smaller organisations employing 1 - 50 people. This finding underlines the challenges facing larger organisations in particular as they seek to boost performance and get closer engagement with their employees.

• Further analysis reveals that the ‘Leadership’ skills gap is highest within public sector organisations (51%) and lowest in private limited companies (40%).

Leadership

Professional or industry-specific skills

Process and project management skills

Managerial

Communication/ interpersonal skills

Technical/ IT /Systems skills

Customer service skills

Sales skills

Entrepreneurial/ Ideas

Basic skills (e.g., typing, writing, internet, phone etiquette)

Other

45% 43% 36% 31% 31% 24% 23% 18% 17% 11% 2% 0 10 20 30
45%
43%
36%
31%
31%
24%
23%
18%
17%
11%
2%
0
10
20
30
40
50

Diagram 4: Skills gaps that organisations are experiencing

 

1 - 50

51 - 100

101 - 200

201 - 500

501 -1000

1001 +

Leadership

33%

37%

42%

48%

47%

53%

Professional or industry-specific skills

43%

43%

44%

40%

46%

43%

Process and project management skills

33%

32%

31%

40%

32%

40%

Managerial

25%

31%

34%

36%

25%

33%

Communication/ interpersonal skills

28%

32%

34%

30%

29%

32%

Technical/ IT /Systems skills

22%

20%

22%

24%

24%

28%

Customer service skills

23%

23%

22%

24%

22%

22%

Sales skills

30%

26%

17%

19%

12%

11%

Entrepreneurial/ Ideas

17%

15%

16%

18%

16%

20%

Basic skills (e.g., typing, writing, internet, phone etiquette)

11%

10%

12%

10%

12%

10%

Other

3%

1%

2%

1%

1%

1%

Table 4: Skills gaps that organisations are experiencing by organisation size

Question 5: Which of the following are experiencing the most significant skills gap in your organisation? (Select all that apply)

• The majority of respondents (51%) said ‘Middle managers’ are experiencing the most significant skills gap within organisations compared to only 8% of CEOs, Board directors and Business owners.

• ‘Middle management’ recognises that their management level is experiencing the most significant skills gap, with 50% of these managers nominating this management level.

Middle managers 51% Customer service employees 25% Senior managers 25% Production employees 23% Sales employees
Middle managers
51%
Customer service employees
25%
Senior managers
25%
Production employees
23%
Sales employees
19%
Administration employees
18%
IT staff
11%
CEOs, Board directors, Business owners
8%
Other
12%
0
10
20
30
40
50
60

Diagram 5: Areas experiencing the most significant skills gap

 

Business

CEO/ Board

Senior

Middle

Team

Professional/

Team

Owner

of Director

Manager

Management

Leader/

Specialist/

Member

Supervisor

Technical

Middle managers

33%

51%

56%

50%

46%

57%

47%

Customer service employees

24%

29%

24%

25%

27%

28%

25%

Senior managers

20%

21%

24%

28%

22%

31%

22%

Production employees

33%

28%

20%

24%

23%

23%

15%

Sales employees

25%

29%

23%

15%

13%

16%

9%

Administration employees

13%

23%

15%

17%

26%

17%

33%

IT staff

9%

15%

8%

11%

16%

14%

18%

CEOs, Board directors, Business owners

13%

9%

8%

8%

5%

8%

13%

Other

8%

18%

11%

12%

6%

16%

7%

Table 5: Areas experiencing the most significant skills gap by position

Question 6: In which departments of your organisation is the skills gap most evident? (Select all that apply)

• A significant number (38%) of respondents believe the skills gap extends across their entire organisation. Further analysis reveals that the larger the organisation, the bigger is the problem. Some 46% of respondents working with large organisations (1001+ employees) said the skills gap is evident across their organisation compared to 27% of respondents with smaller organisations (1 – 50).

• For organisations employing 1 – 50 people the most critical skills gap exists in ‘Sales/ Customer relations’ departments (35%). This finding mirrored the response data for organisations employing 51 – 100 people.

response data for organisations employing 51 – 100 people.   1 - 50 51 - 100
 

1 - 50

51 - 100

101 - 200

201 - 500

501 -1000

1001 +

Total

Across the organisation

27%

33%

34%

38%

42%

46%

38%

Sales / Customer relations

35%

35%

29%

25%

24%

18%

26%

Manufacturing / Production

16%

14%

16%

22%

9%

8%

13%

Marketing / Corporate communications

13%

19%

14%

9%

10%

10%

12%

IT

10%

7%

11%

6%

7%

19%

11%

Engineering

8%

8%

8%

13%

13%

8%

10%

HR

9%

5%

7%

6%

10%

10%

8%

Finance

8%

7%

8%

5%

6%

8%

7%

Consulting

10%

5%

9%

6%

5%

6%

7%

Legal

1%

4%

1%

2%

2%

1%

2%

Other

4%

4%

4%

5%

4%

7%

5%

Table 6: Departments in which the significant skills gap is most evident by organisation’s size

Question 7: What is your organisation doing to address the skills gap? (Select all that apply)

• The top four responses to this question are:

» Training & development for employees with identified skills gaps (50%)

» Recruiting outside the organisation to hire relevant skilled talent (39%)

» Promoting internally (33%)

» Using internal resources to boost training (33%)

• The response data shows that 62% of CEOs/ Board Directors and 56% of Senior managers believe ‘Training and development for employees with identified skills gaps’ is occurring within their organisations.

However, when looking at lower level managers e.g. - Team Leader/ Supervisor, we see that just 42% believe that training and development has been undertaken to address the skills gap. This points to a significant disconnect between top and lower level management when it comes to the application of training and development to fill the skills gap.

• 48% of CEOs/ Board Directors believe their organisations address the skills gap by showing ‘Flexibility when recruiting to look for people with the right core skills base then up skilling them’. However, when examining the response of those managers who play a key role in recruiting employees, we see that middle managers (30%) and Team Leader/ Supervisor (25%) have less support for this point of view.

Training and development for employees with identified skills gaps

50%

Recruiting outside the organisation to hire relevant skilled talent

39%

Promoting internally

33%

Using internal resources to boost training

33%

Flexibility when recruiting to look for people with the right core skills base then up skilling them

31%

Using external training providers to boost training

27%

Outsourcing to an external provider

22%

Predicting future skills needs

20%

Conducting a skills inventory

19%

Sourcing labour from interstate / overseas

13%

Using baby boomers as mentors

12%

Using government resources / funding

10%

Company does not appear to be addressing the skills gap

6%

Other

2%

Table 7: Methods used to address the skills gap

 

Business

CEO/ Board

Senior

Middle

Team

Professional/

Team

Owner

of Director

Manager

Management

Leader/

Specialist/

Member

Supervisor

Technical

Training and development for employees with identified skills gaps

42%

62%

56%

48%

42%

45%

40%

Recruiting outside the organisation to hire relevant skilled talent

37%

48%

45%

39%

29%

32%

27%

Promoting internally

29%

36%

34%

34%

34%

27%

36%

Using internal resources to boost training

37%

31%

34%

35%

29%

29%

35%

Flexibility when recruiting to look for people with the right core skills base then up skilling

33%

48%

36%

30%

25%

20%

20%

Using external training providers

26%

32%

32%

22%

27%

27%

25%

Outsourcing to an external provider

28%

27%

17%

23%

24%

24%

22%

Predicting future skills needs

29%

27%

22%

20%

12%

16%

18%

Conducting a skills inventory

9%

26%

23%

17%

14%

17%

7%

Sourcing labour from interstate / overseas

20%

20%

12%

12%

9%

13%

9%

Using baby boomers as mentors

17%

17%

12%

9%

13%

10%

11%

Not addressing the skills gap

1%

0%

4%

7%

5%

14%

13%

Other

1%

3%

1%

3%

3%

2%

2%

Table 8: Methods used to address the skills gap by position

Question 8: What negative impact do you think the skills gap is having on your organisation? (Select all that apply)

• Alarmingly, the survey data shows that the skills gaps in Australian organisations are putting ‘More stress on employees’. Exactly 69% of respondents believe this to be the case. This finding on the level of employee stress is linked to other outcomes of the survey - ‘Lower staff morale’ (52%) and ‘Losing some high performing employees’ (42%). As market activity picks up in the improved economic climate, we can expect the operational tempo of organisations to be increased. The negative impacts identified in this survey will be exacerbated unless the skills gaps are overcome.

• Cause for alarm is that 40% of respondents said the skills gap is having an ‘Impact on profits/ performance goals’ in their organisations. The figure is even higher among Business Owners, with 55% having this view. Business owners who are leading small organisations with limited resources are particularly exposed to the impact of the skills gap on profits and performance.

More stress on employees 69% Lower staff morale 52% Losing some high performing employees 42%
More stress on employees
69%
Lower staff morale
52%
Losing some high performing employees
42%
reduction in customer service standards
41%
Impact on profits / performance goals
40%
Impact on strategic planning
39%
Losing market share to competitors
23%
Little to no impact
2%
Other
2%
0
10
20
30
40
50
60
70
80

Diagram 6: Negative skills gap impact on organisations

 

Business

CEO/ Board

Senior

Middle

Team

Professional/

Team

Owner

of Director

Manager

Management

Leader/

Specialist/

Member

Supervisor

Technical

More stress on employees

76%

69%

59%

72%

69%

83%

80%

Lower staff morale

45%

38%

43%

58%

59%

63%

65%

Losing some high performing employees

34%

27%

35%

46%

52%

49%

53%

Reduction in customer service standards

46%

36%

35%

44%

45%

48%

44%

Impact on profits / performance goals

55%

36%

39%

43%

32%

41%

40%

Impact on strategic planning

42%

38%

37%

42%

38%

41%

31%

Losing market share to competitors

36%

19%

22%

26%

16%

24%

16%

Little to no impact

1%

3%

1%

2%

5%

2%

0%

Other

3%

2%

2%

1%

2%

2%

4%

Table 9: Negative skills gap impact on organisations by position

Question 9: Within which generation, do you think the skills gap is most prevalent in your organisation?

• Generation X employees are named by respondents as the generation with the ‘most prevalent’ skills gap in their organisation (49%). Interestingly, the top rated ‘skills gap’ generation identified by Generation X respondents was their own generation (46%).

Silent Generation (aged 65 - 84)

0%

Baby Boomers (aged 45 - 64)

18%

Generation X (aged 31 - 44)

49%

Generation Y (aged 15 - 30)

33%

Table 10: Generation with most prevalent skills gap

 

Silent Generation (aged 84 - 65)

Baby Boomers (aged 64 - 45)

Generation X (aged 44 - 31)

Generation Y (aged 30 - 15)

Silent generation (aged 84 - 65)

4%

0%

0%

0%

Baby Boomers (aged 64 - 45)

14%

15%

21%

20%

Generation X (aged 44 - 31)

68%

52%

46%

46%

Generation Y (aged 30 - 15)

14%

33%

33%

34%

Table 11: Generation with most prevalent skills gap by Generation

Y (aged 30 - 15) 14% 33% 33% 34% Table 11: Generation with most prevalent skills

(All respondents have answered Question 10.)

Question 10: Within your state or territory, do you think there is a skills gap
Question 10: Within your state or territory, do you think there
is a skills gap in the marketplace?
29%
Yes
No
71%

Diagram 7: Skills gap in state or territory

 

Silent Generation (aged 84 - 65)

Baby Boomers (aged 64 - 45)

Generation X (aged 44 - 31)

Generation Y (aged 30 - 15)

No

18%

24%

34%

37%

Yes

82%

76%

66%

63%

Table 12: Skills gap in state or territory by generation

• Response data to this question underlines the extent of the skills gap in the marketplace. Seventy one per cent of respondents believe the skills gap extends beyond their organisation and has an impact across their state or territory. This finding underlines the widespread nature of the skills gap problem.

(The following question has been filtered to respondents who have answered ‘Yes’ to ‘Question 10: Within your state or territory, do you think there is a skills gap in the marketplace?’)

Question 11: Why do you think there is a skills gap in your state or territory? (Select all that apply)

Not enough commitment to training and development in organisations

56%

Poor succession planning

52%

Ageing workforce

41%

Skilled people are going overseas to work

17%

Skilled people are going interstate to work

17%

Enduring strength of the economy

15%

Other

14%

Table 13: Reasons for skills gap in state or territory

• ‘Not enough commitment to training and development in organisations’ (56%) was seen as the top reason for the skills gap within the state or territory of the respondent.

• The extent of ‘Poor succession planning’ (52%) identified in this survey points to poor future outcomes given Australia’s ageing workforce. Succession planning will need to be improved when Baby Boomers exit the workforce in large numbers in coming years.

• Responses from ‘Other’ included:

» Not enough skilled people entering the industry

» University education providers are not teaching the required skills for the industry to have a ‘positive relationship’ with the community in which it operates as ‘Very important’.

(All respondents have answered Question 12 and 13.)

Question 12: In your organisation, which generation do you believe is the most loyal? 80
Question 12: In your organisation, which generation do you believe
is the most loyal?
80
70%
70
60
50
40
30
25%
20
10
3%
2%
0
Silent Generation
(aged 84 - 65)
Baby Boomers
(aged 64 - 45)
Generation X
(aged 44 - 31)
Generation Y
(aged 30 - 15)

Diagram 8: Most loyal generation

 

Silent Generation (aged 84 - 65)

Baby Boomers (aged 64 - 45)

Generation X (aged 44 - 31)

Generation Y (aged 30 - 15)

Silent generation (aged 84 - 65)

33%

3%

2%

1%

Baby Boomers (aged 64 - 45)

58%

86%

58%

51%

Generation X (aged 44 - 31)

6%

9%

38%

38%

Generation Y (aged 30 - 15)

3%

2%

2%

10%

Table 14: Most loyal generation by Generation

• The most loyal generation perceived by all respondents is the Baby Boomers (70%), ahead of Generation X (25%).

• Only 2% of all respondents believe that Generation Y is the most loyal generation to their organisation. Further analysis of survey data reveals only 10% of Generation Y respondents believe their generation is the most loyal. This displays a strong preference for employee mobility within Generation Y. The implications of this finding are that organisations need to work hard to retain and motivate Generation Y employees by actively engaging with them and investing in their development.

Question 13: Does your organisation utilise the skill sets and ‘knowledge bank’ of long standing
Question 13: Does your organisation utilise the skill sets
and ‘knowledge bank’ of long standing employees?
16%
25%
Yes
No
Unsure

59%

Diagram 9: Utilising the skill sets and ‘knowledge bank’ of long standing employees

sets and ‘knowledge bank’ of long standing employees   1 - 50 51 – 100 101
 

1 - 50

51 – 100

101 – 200

201 – 500

501 – 1000

1001+

No

14%

16%

25%

25%

32%

33%

Yes

79%

67%

59%

58%

50%

47%

Unsure

7%

17%

16%

17%

18%

20%

Table 15: Utilising the skill sets and ‘knowledge bank’ of long standing employees by organisation size

• Disturbingly, only 59% of respondents said their organisation is utilising the skills sets and ‘knowledge bank’ of long standing employees. This represents very poor utilisation of workforce capabilities.

• Up to a third of large organisations (1001+ employees) are not utilising the skills sets and ‘knowledge bank’ of long standing employees; in smaller organisations (1 – 50 employees) the figure is 14%. With Australia’s ageing workforce, the ability to utilise the skills sets and knowledge bank of long standing employees will become a key factor in organisational performance.

(Question 14 and 15 have been filtered to respondents who have answered ‘Yes’ to Question 13: Does your organisation utilise the skill sets and ‘knowledge bank’ of long standing employees?)

Question 14: How has your organisation utilised the skills sets and ‘knowledge bank’ of long standing employees?

Have such employees been involved in:

Training new employees

69%

Mentoring programs

54%

Custom design systems / processes

39%

Other

4%

Table 16: Methods used to utilise the skill sets and ‘knowledge bank’ of long standing employees

• Organisations most frequently utilise the skills sets and ‘knowledge bank’ of long standing employees in ‘Training new employees’ (69%). While 54% have used such employees in ‘Mentoring programs’ and 39% have used them to ‘Custom design systems / processes’.

Question 15: Have those initiatives been used across the organisation or in separate business units?

(Select all that apply)

• It is positive to see that of those respondents who said that their organisation is utilising the skills sets and knowledge bank of long standing employees that this is being done ‘Across the organisation’

(72%).

Across the organisation

72%

Sales / Customer relations

13%

Manufacturing / Production

10%

Engineering

8%

IT

6%

Finance

5%

Marketing/ Corporate communications

4%

Consulting

4%

HR

3%

Other

4%

Table 17: Shows the utilisation of the skills sets and knowledge bank of long standing employees within organisations

Table 17: Shows the utilisation of the skills sets and knowledge bank of long standing employees

(All respondents have answered the following question.)

Question 16: Does your organisation have programs in place to utilise the skills sets of retirees or former long term employees?

17% Yes 18% No Unsure 65% Diagram 10: Programs in place to utilise skills sets
17%
Yes
18%
No
Unsure
65%
Diagram 10: Programs in place to utilise skills sets of retirees
or former long term employees
skills sets of retirees or former long term employees   1 - 50 51 – 100
 

1 - 50

51 – 100

101 – 200

201 – 500

501 – 1000

1001+

Yes

25%

15%

16%

17%

18%

15%

No

66%

72%

67%

64%

63%

61%

Unsure

9%

13%

17%

19%

19%

24%

Table 18: Programs in place to utilise skills sets of retirees or former long term employees by organisation size

• Only 17% of organisations have programs in place to utilise the skills sets of retirees or former long term employees. Surprisingly, these programs are most prevalent in smaller organisations (1 - 50) at 25% and are least likely to occur in organisations employing 1001+ employees (15%). Australia’s ageing workforce means that such programs will become a business imperative for pacesetter organisations seeking to achieve a competitive advantage.

(Question 17 has been filtered to respondents who have answered ‘Yes’ to Question 16: Does your organisation have programs in place to utilise the skills sets of retirees or former long term employees?)

Question 17: What programs do you have in place?

(Select all that apply)

Mentoring

60%

Advisory group

32%

Retirees/ long standing employees association

20%

Flexible work opportunities

12%

Other

10%

Table 19: Types of programs in place

• Mentoring programs (60%) are the most popular programs in place to utilise the skills sets of retirees or former long term employees.

• Responses in ‘Other’, include:

» Volunteer programs

» Alumni

» Involvement in training programs

• Responses in ‘Other’, include: » Volunteer programs » Alumni » Involvement in training programs 17

Demographics

Position

Business Owner

5%

CEO/ Board Director

7%

Middle Manager

32%

Professional / Specialist / Technical

11%

Senior Manager

30%

Team Leader/ Supervisor

11%

Team Member

4%

Generation

Baby Boomers (aged 64 - 45)

45%

Generation X (aged 44 - 31)

45%

Generation Y (aged 30 - 15)

8%

Silent generation (aged 84 - 65)

2%

Organisation sector

Advertising/ Marketing/ Media

2%

Agriculture/ Forestry/ Fishing/ Environmental

2%

Charity/ Not for profit

1%

Construction

3%

Consulting/ Professional Services

8%

Cultural/ Recreational Services

1%

Education/ Training

5%

Engineering

2%

Finance/ Insurance

11%

Government Administration

9%

Health/ Community Services

11%

IT/ Communication Services

8%

Manufacturing

11%

Mining

2%

Property/ Business Services

3%

Retail Trade

4%

Science/ Pharmaceutical

1%

Tourism/ Hospitality/ Leisure

3%

Transport/ Storage

4%

Uniformed/ Emergency Services

1%

Utilities

5%

Wholesale Trade

3%

Gender

Female

41%

Male

59%

Education

 

PhD

2%

Post Graduate Qualification

39%

Under Graduate Degree

23%

Diploma Level

18%

Certificate Level

7%

Completed Year 12

6%

Less than Year 12

5%

State

ACT

1%

NSW

5%

QLD

14%

SA

1%

TAS

2%

VIC

77%

Organisation size

 

1 – 20 employees

2%

21

– 50 employees

17%

51

– 100 employees

11%

101

– 200 employees

12%

201

– 500 employees

17%

501

– 1000 employees

14%

1001 + employees

27%

Organisational status

 

Private Limited Company

37%

Public Limited Company

25%

Public Sector

20%

Not for profit

13%

 

Partnership

3%

Owner Managers/ Sole Trader

2%