| DIRECTOR'S SPEECH | |
| Title: | Addressing the Nation’s skill shortages Optimising the female skilled workforce |
| Event: | Skilling Australia |
| Location: | Melbourne |
| Date: | 20 September 2005 |
Michael Gill, Ladies and Gentlemen,
Greater female participation in the labour force has been the major
driving force behind the increase in total workforce participation over
the last 25 years, as male participation has declined.
Australia’s increased productivity and economic growth has in part come
from working women across the country – new apprentices straight from
school, women working while studying, career women, Aboriginal women,
migrant women, women managing both work and a family, mature women
returning to the workforce and those women not quite ready for
retirement.
Increased participation and subsequent productivity has been achieved
because Australian business culture has begun a transition with respect
to how women are regarded and treated in the workplace. Many companies
are recognising that equal opportunity as a strategic business
opportunity, if done well,
• retains a skilled workforce
• Improves decision making
• Enhances reputation
• Improves working relationships; and
• Increases profits.
However, despite the transition in business and the growth in numbers of
women in employment,
women’s participation in the workforce is well behind other OECD
nations.
Despite the growth long term retention of women is an issue.
Despite the growth women are not being advanced to management and senior
management positions in greater numbers. Just 10.4% of the ASX 200
company executives are women.
And, despite the growth women on average are still NOT earning the same
pay as men.
Women’s increased participation has been the product of social and
cultural change over the past 25 years. However, if women are to
continue to participate at current levels, or indeed increase their rate
of participation, of which there is significant growth opportunity,
there needs to be further social and workplace cultural change.
Change is scary.
But so too and perhaps more so, is a nation that cannot compete in
global markets, that cannot support its ageing population, that cannot
provide opportunity for its people nor value and respect their
diversity.
Businesses and the people within, that do not accept this last point can
no longer ignore diversity and equal opportunity, otherwise the
sustainability of their business will be in doubt, because the answer to
the problem that demography is destiny, is not solely delaying
retirement of mature workers which our next speaker will touch.
Nor is it attracting skilled immigration, because we’ll be hard pressed
competing with other OECD nations which are also facing the same
destiny.
Increased productivity and participation at the levels needed to address
future skill shortages, deliver for our industries and support our
ageing population will only be reached with the greater attraction and
retention of women throughout the full working life cycle.
2001 literacy rates tell us our girls are smarter in school and they are
going on to attain non-school qualifications in equal or in some cases
greater numbers than men.
The challenges we face as a country and the challenges business face
are, increasing the workforce participation of women, acknowledging the
true value of women in the workplace and importantly improving the
long-term retention of women.
Government, business, men and women, must work together to overcome the
challenges, the systemic discrimination, outdated structures and biases
which undermine a women’s ability to be authentic and participate fully
in paid employment.
Every industry, every organisation and every workplace is different, so
too are the needs of the workforce. There is no one answer, but
employers and employees must work together to come to a common and fair
understanding of flexibility.
For women in particular, increased flexibility in the workplace will be
a key driver for opportunity and advancement at every level, from the
factory floor to the corner office.
Today I would like to focus on the role of business in this partnership,
what we at EOWA are seeing as organisations work towards solutions.
Research tells us that women quit because of
• Negative assumptions about women, their abilities and their commitment
to careers
• Management reluctance to give women line management experience
• Lack of mentoring and exclusion from informal career networks where
men have typically learned the unwritten rules of success
• Inhospitable workplace cultures
• Unequal pay
• Long family unfriendly hours
• Lack of flexibility
If business is going to remain sustainable in the future while facing a
mercenary like workforce of generation X & Y, an ageing demographic and
skills shortages, more businesses need to journey through the four
phases identified by Amanda Sinclair of the Melbourne Business School .
The first stage is denial. The belief that the lack of women is not a
business issue. There may be an aversion to even discuss women with the
justification that business is about 'merit' and that it is 'sexist' to
admit gender.
The second stage recognises the issue but casts as a problem with women
- "the trouble with women is". Prescribed remedies involve women
'learning to adapt', for example only taking minimal time off for
child-bearing etc.
Management of the problem is the third stage. Organisations actively
seek to manage the problem of women's exclusion but most initiatives are
women-focussed. Companies may put in place new procedures and processes,
but they tend to be reactive and after the fact.
Finally there are those who take a leadership role into a new culture.
Commitment to change, recognition that this is driven from the top, but
must also be marked by self examination. The problem is recast not as
women but as the culture itself.
LEADERSHIP
Certainly over the past four years EOWA has seen an increase in the
number of organisations actively seeking to identify the problems and
commit to change. It is these organisations which will attract and
retain the best talent, remaining competitive and sustainable into the
future.
Organisations like Deloitte Touche Tohmatsu. CEO Giam
Swiegers says “It’s the toughest thing I have undertaken because I do
not believe I understood the complexity of what we were dealing with
when I started. If people do not make a commitment with regards
advancing women in our organisation then they do not form a part of my
leadership team.”
Today Deloitte Touche Tohmatsu are enjoying higher rates of return from
maternity leave, decreased staff turnover to name just a few of the
important business benefits.
Or the Insurance Australia Group. CEO Michael Hawker says “Clearly there
is a traditional way of running companies which is preventing very
senior and talented women from taking on very senior profit and loss
roles in major companies. It’s a structural problem, because there is a
lot of will to try and make it more diverse, so we have to deal with
them culturally and structurally.”
Tomorrow the Minister for Employment Workplace Relations and I will be
gathering with the finalists of the 2005 EOWA Business Achievement
Awards in Sydney and leaders within the business community. The Awards
recognise leading edge practice in the advancement of women and
recognises the organisations and organisational leaders that have taken
a leadership role into a new culture.
Together with improved workplace flexibility, changed workplace
practices, a focus on appropriate merit based succession planning and
importantly support for working mothers, fathers and families we will
hopefully see continued improved change in the gender profile in
business.
Those getting it right are seeing policies including paid maternity
leave, flexible workplace practices and job pathways, turning into
higher retention rates of women. The outcomes for the organisations are
the retention of a skilled and experienced workforce, higher morale and
reduced costs of recruitment and turnover.
If we agree that increased participation of women is a goal, which means
increasing the numbers of women with families, then we have to stop
treating them as if they are not mothers.
Over the past three years we have seen a significant increase in the
number of organisations offering paid maternity leave. In 2001, 23% of
surveyed EOWA reporting organisations provided paid maternity leave to
their staff. By 2004, this figure had almost doubled to 41%, with
organisations reporting a direct impact on improved retention rates of
women.
Most recently we are seeing an increase in requests for part-time work
after maternity leave being accommodated. We are seeing an increase
across the board in part-time management roles. Importantly, this is
happening at the most senior levels.
Whilst access to part-time work is important, organisations need to look
work organisation and job design, and the practical delivery of
flexibility to ensure women with families are not excluded from
full-time jobs, which offer greater security and financial reward.
We are observing a greater focus on formal succession planning with a
significant increase of women into middle management. Talent management
of high performers is drilling down into lower management and
non-management ranks to identify and foster high potential women.
EDUCATION & TRAINING
It is encouraging to see the increased offering of education and
training to blue collar workers. Cert 111 and Cert IV programs (often in
conjunction with Workplace English Language and Literacy programs) are
being offered to provide talented women who may not have had the
opportunity to progress beyond entry level jobs because of lack of
education, lack of English language skills and family responsibilities.
Investing in education and training of your workforce helps retain
employees, but also enables a business to grow their own skilled
workers. So I would like to share with you what actions some
organisations are taking to address their skill shortages.
When given the chance to do training at work, or to undertake personal
development courses some employees’ resistance is high due to prior
negative experiences of workplace training or even negative experiences
at highschool, in which they may not have seen the relevance of their
studies, or may have been unsuccessful.
Often there is a sense that on-the-job training is merely a patronising
reiteration of skills that employees already have, and therefore a waste
of time, and many people don’t like being tested.
Additionally, some employees don’t understand the importance of having
certification of their skills, especially if they are in a secure job,
or they don’t expect their work to give them any sense of work
satisfaction, but view it merely a means to an end, a way to pay the
bills.
Some female employees from non-English speaking backgrounds may come
from a culture in which training and development is the antithesis of a
woman’s traditional role, or they may lack the confidence to undergo
training, fearing that due to their inability to speak and write English
fluently they will not understand the material presented and will fail
in their endeavours. Add to this the traditional nature of women’s
family responsibilities – in some cultures sole responsibility for
running the household and caring for children and older relatives, and
within this context it is easy to understand a lack of enthusiasm for
on-the-job training.
However, many committed HR Managers are confronting these issues
head-on. In one particular case study a company that manufactures
technical and scientific equipment in a factory environment persisted
with offering their female factory workers courses in Certificate 3 in
Process Manufacturing. The HR Manager persisted despite the protests
from the mainly non-English speaking mature female staff that their
English was not good enough to do the course, and that gaining skills
and learning how to lead others was something that men did. By running
the course within work hours in conjunction with TAFE the company took
pressure off the women to contribute their own time to a course that
they thought would not give them value.
But, the course did give them value. One group of women went through the
training and achieved the Certificate 3 qualification, and this has set
an important precedent. These women not only have a qualification which
makes them more employable, but they have self-confidence, greater
practical skills, and are encouraging other women to follow in their
footsteps.
The organisation has a better workforce, motivated and skilled.
In another company that makes windscreen wipers, management pushed
employees, to complete Certificate 3 in Business, offered during work
time. At first there was some resistance, but the training was much more
successful than they ever imagined it would be as seventy three percent
(73%) of employees who did the course in work time voluntarily decided
to undertake further studies in the form of Certificate 4 or Diploma
level studies in their own time.
The success in this case was not only that the employees gained a
qualification but also that they gained a sense of their own abilities,
increased their confidence and self-worth and perceived their company in
a fresh new way. Remember that this is a group of workers that may not
have gained any basic schooling past year 10 level.
In those companies where there is a smaller workforce, or implementing a
widespread training course is not an option due to cost, project
management is a way of upskilling workers. One particular electricity
provider sought to increase the skills of four of its female employees
by recruiting them onto a Project Management team responsible for their
$1 million Enterprise Resourcing Program – a project to contract service
providers for all aspects of the business- everything from sourcing
machinery components to deliver the electricity, IT suppliers, and
software developers. The women were involved in all stages of the
project life-cycle, such as collecting business requirements, finding
solutions, comparing packages, and testing. As a result of this project
all four women were trained in Project Management, Movex and Train the
Trainer. Since this training opportunity 3 of these women have been
promoted into higher operational roles in the company. The company wins,
the women win, their family wins.
Education and training is important at every level. As we have heard
skill shortages are having an effect at the trade level and in the
professions.
Engineering organisations facing the skills shortage are targeting
schools to build interest in the maths and sciences to attract students
into the profession. One firm particularly targets girls schools,
running a bridge building competition. They understand where there is an
untapped market.
One company knows where there is the greatest number of female students
internationally, and they are not telling anybody.
FUTURE
The competition for skills is tough and it is tight, so with just 57.4%
of working age women participating in the workforce, how does business
connect with the women, to attract and retain this hidden but skilled
workforce?
First, Make a commitment to cultural change?
Make it clear that cultures of sexual harassment are just not tolerated.
Remove systemic discrimination in pay, promotion, recruitment and work
organisation, and around pregnancy and families which currently send
messages to women that their hard work, loyalty and experience is not
valued or wanted.
.
Secondly, follow through on commitments to flexibility, not just for
female employees but women and men.
Policies are not enough, the challenge is in the implementation and
imbedding flexible work practices into the day to day.
Needed in business today is the repositioning of the issues of work/life
balance and flexibility. Traditionally, exclusively seen as a woman’s
want, the tide is changing as access is seen as central to all employees
enjoying a fulfilling and rewarding work/life whilst making a
significant contribution to an organisation.
A recent work/life balance survey in a male dominated workplace showed
that 73% of men in the company wished to realise greater work/life
balance.
Give managers the skills and training to manage a diverse flexible work
force. Help them understand the benefits for the business and help them
put in place at the line level, job sharing, part-time and job redesign.
Third, put in place a strategy to move women into non-traditional work.
Don’t stand for it when male workers tell them they are not welcome, as
one company recently reported to us. Provide support for the women, give
them buddies, give them mentors, but most of all break down the culture
of exclusion and bullying.
If the women won’t come to you, go to them. A car yard after failing to
attract female candidates as part of a strategy to match customer
profile, went to where the women look for work. They re-advertised but
this time in the real estate and hospitality sections of the local
paper. This lateral recruitment strategy cost the organisation little,
but was highly successful and delivered high returns.
Word of mouth is powerful, demonstrate change and commitment within the
organisation and existing employees will sell your organisation to their
networks. Our research tells us that employers of choice for women
attract women.
CONCLUSION
In conclusion, I see three immediate continued challenges for Government
and Business so that those women I spoke of at the beginning,
Apprentices straight from school, career women, Aboriginal women,
migrant women, women starting a family, women managing both work and a
family, mature women returning to the workforce and those women not
quite ready for retirement, can overcome the challenges they face,
participate fully within the workplace and meet their own ambitions, be
it just doing their job well or taking on formal leadership positions
within their organisations.
These are
• The challenge of building greater awareness around the hidden barriers
that prevent many women from advancing long-term in business.
• The challenge of really addressing the issues of pay equity, so that
women that have contributed to the economy, worked and supported
families do not end up in poverty in their most senior years.
• The Challenge of getting the work / life balance right for women and
men with or without families, and getting it right for business.
Overcoming these challenges are central to an organisation’s future
sustainability, capability and competitive advantage.
Smart businesses are recognising this. They are out there taking action
to position themselves to attract and retain the currently hidden labour
market that will be integral to their workforce of the future – women.
Thank you.
| END OF SPEECH |