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Broken Hill Menindee Wilcannia Wilcannia Broken Hill Milparinka Far West NSW Silverton Sunset Strip Menindee White Cliffs Tibooburra Tilpa Ivanhoe Far West NSW Workforce Development Study Regional Development Australia Far West 2016 This report is dated October 2016 and incorporates information and events up to that date only and excludes any information or event occurring after that date. All surveys, forecasts, projections and recommendations contained in this report are made in good faith and on the basis of the information supplied by the respondents. RDA FW has made all reasonable enquiries necessary in preparing this report. 2 Table of Contents 1.0 Executive Summary 5 1.1 Methodology 7 2.0 Profile of the Far West 8 2.1 Economic Profile of the Far West 8 2.2 Employment 9 2.3 Tertiary participation rates in Far West NSW 11 2.4 Projected employment growth in Australia by industry 12 2.5 Unemployment 14 2.6 Population 14 3.0 Key findings from the survey of employers 17 4.0 Survey results 17 4.1 Demographic profile of responding businesses 18 4.2 Technology use in the region 19 4.3 Growth aspirations 20 4.4 Plans for growth 21 4.5 Current workforce demand 22 4.5.1 Recruitment 22 4.5.2 Impact of recruitment difficulties 25 4.5.3 Retention of staff 25 4.6 Future workforce demands 27 4.6.1 Promoting further opportunities 28 4.7 Current employment v’s future employment 30 4.8 Training and education 31 4.8.1 Satisfaction with current training options 32 4.8.2 Accredited v’s non accredited training 32 4.8.3 Training needs 33 4.8.4 Paying for training 34 4.8.5 Assistance for training 35 4.8.6 Training for skills or training for the sake of training 35 4.9 Customer service 37 4.9.1 Measuring customer service 37 4.10 Barriers to growth 38 3 4.11 Required support 39 4.12 Generic employability skills 40 4.12.1 Communication 40 4.12.2 Teamwork 41 4.12.3 Problem solving 41 4.12.4 Personal and social responsibilities 42 4.12.5 Initiative and enterprise that contribute to economic outcomes 42 4.12.6 Planning and organising that contributes to the long and short term strategic planning 43 4.12.7 Self-management that contributes to employee satisfaction and growth 43 4.12.8 Learning that contributes to ongoing improvements and expansion in employee and company operations 44 4.12.9 Technology that contributes to effective carryout of tasks 45 4.12.10 Generic employability skills satisfaction 45 4.13 Employer expectations and advice 46 4.14 Drug and alcohol testing 46 4.15 Transferability of skills 47 5.0 Development of the Far West workforce planning strategies 49 6.0 Key focus areas 51 5.1 Job readiness 51 5.1.1 Options for consideration 51 5.2 Generic employability skills 52 5.2.1 Options for consideration 53 5.3 Aligning training to the needs of the region 54 5.3.1 Options for consideration 54 5.4 Workforce attraction and retention 56 5.4.1 Options for consideration 56 5.5 Guidance and support for employers 56 5.5.1 Options for consideration 57 5.6 Transferability of skills 57 5.6.1 Options for consideration 58 4 1.0 Executive Summary In 2016 RDA Far West committed to undertake research into the workforce capacity of the Far West region. The purpose of the study was to build an evidence base around workforce issues affecting the region to inform the future planning, training and development needs to position the region to take advantage of current and emerging growth opportunities. The study focused on several associated areas, including; Current and future workforce demand in the Far West How, and the extent to which, the region can meet the demand Skills gaps and shortages Current strategies for recruitment and retention of workers The capacity of the region to meet current and future training needs What skills employers need to grow their businesses The work-readiness of the region's job seekers This document represents the research report which responds to the research questions listed above. It provides an overview of the region’s economy and labour profile, the results of the survey of employers and key focus areas with suggestions to consider in the development of any workforce planning strategies. Employers surveyed were drawn from a wide range of industries and included small, medium and large businesses from across the region. The research indicates wide-ranging opportunities in the region. There is a desire for growth from business with over 50% planning for growth in the next 1-2 years and another 27% planning to grow in the next 3-5 years, of which 63% are planning for moderate growth. This is significant and indicates an underlying strength in the region’s economy. However, the optimism demonstrated by employers for growth is under threat with skills gaps and difficulties in attracting and retaining a workforce hindering plans for growth and negatively impacting on many businesses with 38% of respondents reporting they have advertised positions in the past 12 months they could not fill, and another 42% that have settled for an employee that didn’t meet all of their expectations or requirements at the interview. A significant number of employers, 38%, reported this situation had impacted the organisation with missed opportunities and 34% reporting low productivity as a consequence. A number of skills gaps have been reported and coordinated strategies to increase the region’s skill base and capacity could help to address some of the recruitment issues faced by employers. It appears there is a range of factors that are impacting on the ability of businesses to recruit and retain staff, including a lack of basic and specialised skills. There are opportunities for collaboration and improved communication across the region, better alignment of training to employer needs and substantially better promotion of the region to ensure perception and reality closer align. There will always be barriers and issues that cannot be addressed, for example, the location of the region, however, there are also a number of strategies that could be employed to increase 5 the region’s skill base. A Workforce Planning and Development Strategy could be developed as the next stage of this project to position the region to take advantage of current and emerging growth opportunities. A number of focus areas are listed below and provide a starting point for further consultation, collaboration and the development of strategies to address the identified barriers. Job readiness - The common perception amongst respondents was that job seekers, especially young people and the long-term unemployed are not ready for work, however, the evidence suggest that if young people and the long-term unemployed can become job ready, employers are willing to consider employing them. Job-ready skills are modelled and developed in a range of situations, families, schools and employment service providers all contribute to the job readiness of an individual, but despite this, some still appear to be missing out on acquiring these skills. Align training to the needs of the region – Any growth of the region’s economy or diversification of industries will need to be underpinned by affordable and accessible high-quality training that aligns with the region’s needs. Whilst more than half of employers surveyed were satisfied with current training options in the region, only 17% believed the training aligns to the needs of the region and more than 50% were not confident the region could meet their training needs over the next 5 years. Several employers raised significant concerns about training options for apprentices in the region and cited these issues as a barrier to employing apprentices. Workforce attraction and retention – With the decline in the population of the region, and the desire by business to grow, it appears strategies will need to focus on both upskilling the region’s workforce and attracting workers to the region. Understanding and maximising the transferability of skills - The Far West has flourished for more than 130 years and given the cyclical nature of some of the region’s key industries, mining and agriculture, the transferability of skills has obviously been recognised and utilised in the past. However, given the declining population and reported difficulties in attracting and retaining staff, it appears more critical now than ever that individuals and industry in the region recognise and maximise the use of transferable skills. 6 1.1 Methodology Quantitative research The Methodology of this study included the development of an online survey to capture as many employers as possible within the resource restrictions of the organisation. The survey was developed in consultation and trialled with Executive Officer’s from other RDA’s in NSW to ensure its suitability in both content and structure. The survey was heavily promoted across the region’s media, and individual invitations to complete the survey were forwarded to over 500 employers. Comprehensive coverage in all regional media helped to promote the survey and the purpose behind it. A partnership with the University of Sydney Business School provided additional resources to support the online survey with Computer Assisted Telephone Interviewing (CATI) to further engage with employers and better understand current and future workforce needs. To ensure a broad cross section of employers from across the region were interviewed RDA FW was guided by the Economy ID’s regional profile of businesses in the region. 7 2.0 Profile of the Far West This section provides an overview of the economic and labour market profile for the far west region drawn from existing research and available data.
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