Establishing As An Employer Of Choice

Establishing Your Organisation as an Employer of Choice – Is it possible in

the Public Sector?

PETER WARD FAIM, FAHRI

HEAD OF PEOPLE & CHANGESA WATER CORPORATION

ESTABLISHING YOUR ORGANISATION AS AN EMPLOYER OF CHOICEESTABLISHING YOUR ORGANISATION AS AN EMPLOYER OF CHOICE

• What is a ‘employer of choice’?

• A little about SA Water – a hybrid organisation

• The critical imperatives

• The first five years at SA Water 2001-2006

• The next five years at SA Water 2007-2012

• Private vs. Public Sector – myths and legends

• Summary

Google it…

ONE DEFINITION

Must be sustainable over prolonged period

ANOTHER DEFINITIONCompanies that consider culture to be a competitive advantageDemonstrated by: - Speed to market or exceptional service delivery

- Attractiveness to potential employees- Achievement of above industry benchmarks overtime- High degree of flexibility to change- Forward looking

SO WHAT IS AN EMPLOYER OF CHOICE?SO WHAT IS AN EMPLOYER OF CHOICE?

Recognised, Admired for Leadership,

Culture and Best Practise +

Attract, Retain

Hold Top Talent

+Achieve

Corporate Objectives

REPUTATION COMPETITVE EDGE PERFORMANCE

Looking for the best place to hang your hat? Wise career seekers look at company culture.

Many qualities go into the making of an ‘employer of choice,’ but ultimately it boils down to one very crucial thing: a strong culture.

Cultures distinguish companies in today’s dynamic workplace. A well-defined culture is the foundation of any successful business and should be at the heart of every decision a company makes. It sets the standard for how the company does business and how employees relate to clients and one another. Culture serves as a compass, guiding a company as it meets the challenges of an ever-changing world. And sustaining a strong culture – regardless of economic and business conditions – requires a commitment from everyone in the company.

Robert W Baird and Co2007

IT TAKES A STRONG CULTURE TO BE GREAT AT WORKIT TAKES A STRONG CULTURE TO BE GREAT AT WORK

THE PERFORMANCE CULTURETHE PERFORMANCE CULTURE

This can be defined as:

‘A culture in which individuals, teams and the organisation achieve what they agree to achieve.

Other words that can be used for this are: accountability, achievement, focus, speed, delivery, discipline, meritocracy and rigour.

In a Performance Culture people deliver on their promises. When they say ‘I can do this’, whether it is to meet an annual target or fulfil a commitment to complete a report by Friday, it occurs. Rewards and consequences are aligned to delivery. The results are speed and focus because people are conscious of what they commit to; the assess risks more carefully and complete what they start. This provides confidence that what is targeted will be achieved.’

Carolyn TaylorThe Power of Culture;

Using the Soft Stuff for Business AdvantageAIM

ESTABLISHING YOUR ORGANISATION AS AN EMPLOYER OF CHOICEESTABLISHING YOUR ORGANISATION AS AN EMPLOYER OF CHOICE

• 150 years old mid 2006

• Previously Engineering and Water Supply Department– Mega department for South Australia

– Vertically integrated design to delivery

– 8000+ staff at the peak

• Corporatisation July 1995– Commercial Charter

– Public Service staff transferred

– Metropolitan Operations outsourcing to United Water

– Various B.O.O.T infrastructure

– Dis-aggregation of core business

• Design

• Capital works

• Resource planning and ownership

• Asset owner

• Bottomed at 1100 staff in 2001, now 1350

ESTABLISHING YOUR ORGANISATION ESTABLISHING YOUR ORGANISATION AS AN EMPLOYER OF CHOICEAS AN EMPLOYER OF CHOICE

The Results of ChangeThe Results of Change• Net contributor to state finances – significant value (Turnover $770

million)• Ownership confusion in public arena• Core Public Service VS Commercial Charter impacted stakeholder

perceptions• Vast down sizing lost core skills• Periods of non-hiring• Skewed ageing workforce• Organisation instability

2000 Strategic Review2000 Strategic Review• Staff commitment issues• Risk analysis showed skill loss, ageing workforce and culture

would impact future service delivery and $$ contribution• Culture, HRM elevated to strategic level• Perception most change was by default rather than by design


HUMAN RESOURCES STRATEGYHUMAN RESOURCES STRATEGY

WE THEN LOOKED AT VARIOUS “CHANGE” EXAMPLES

AND ADAPTED A “HIGH ACHIEVING CULTURE” MODEL

SUPPORTED BY CLEAR COMMUNICATION AND TRANSPARENT MEASUREMENT

Relentless pursuit of Vision, Mission, Values, Strategy

Focus on Leadership

and Teamwork

Aligned by simple,

transparent processes &

systems

Staffed by world class capability

Intense performance

driven environment (recognition,

reward & consequence management)

HIGH ACHIEVING CULTURE


THE CRITICAL IMPERATIVES AND THE RESPONSE – THE CRITICAL IMPERATIVES AND THE RESPONSE – The first 5 yearsThe first 5 years

• Culture development• Safety• Succession Planning• Performance Management • Pay for Performance• Recognition and Reward• Leadership• Capability Building• Accommodation and Workplace Strategy• Diversity• Policies – Family Friendly, Work Life Balance, Employee Development


Culture describes the behavioural norms that have been established through the messages received about “how we do things around here”

Cultural messages are sent through three channels which all convey what is valued in the organisation

Individuals interpret cultural signals and align their behaviour to the norm

Channel Message sent by

BEHAVIOUR

• Observation of others• Especially key influences• What is said• What is done

SYMBOLS

• Where is time spent• Where resources are invested• Physical environment• What and who is rewarded• Who is involved in what• Voice of key stakeholders• Rituals

SYSTEMS

• Goal setting budgeting• Reporting and measurement• Remuneration• Performance management process


CULTURE DEVELOPMENTCULTURE DEVELOPMENT• Organisation Culture Inventory• Culture model• Focus on leadership• Focus on behaviours, symbols and systems

SAFETY – SAFETY – Zero Harm StrategyZero Harm Strategy• Seven key initiatives• Focus on lead indicators vs. Lag• LTI and SIFR trend downwards• Behaviour based safety


SUCCESSION PLANNINGSUCCESSION PLANNING• Workforce Refreshment 130/380 dignified exits/retirements• Graduate Program• Apprentices / Trainees

SA Water now has 15-24 year old profile better than overall utilities industry

PERFORMANCE MANAGEMENTPERFORMANCE MANAGEMENT• 2 year roll out (over 210 workshops)• Role clarity at the top, cascaded down the business• 1:1’s part of everyday life, 68% all staff had end of year appraisal 2005/06 – goal

is 90+% 2006/07• Review now underway as result of Staff Perception Survey


PAY FOR PERFORMANCEPAY FOR PERFORMANCE• Ability for AS06 and above (equivalents also) to request individual contract• No guaranteed EBA increase, merit increase 0-6%, based on performance and

Mercers Market rate

RECOGNITION AND REWARDRECOGNITION AND REWARD• 1000+ Service Awards for 5 year increments since 2002• Over and Above Awards common place – 200 to 300 per year• Leaders empowered to arrange event and awards for outstanding services• Cost $50,000 - $75,000 pa


LEADERSHIPLEADERSHIP• 250+ staff with 360o feedback (LSI and/or psychometric)• Front-line Management – 230+ participants• Applied Leadership – 135+ participants

ACCOMMODATION STRATEGY ACCOMMODATION STRATEGY (Biggest symbol of inequity)(Biggest symbol of inequity)• Regional Upgrades• New Head Office and laboratory Strategy• Centralised Facilities Management

CAPABILITY BUILDINGCAPABILITY BUILDING• Individual Development Plans• $1.9mm investment since 2002/03 for individual development in addition to core

job training


DIVERSITYDIVERSITY

Gender - Professional ranks 25% vs. ABS benchmark 23%

- Information Services 19% vs. ABS benchmark 16%

- Senior / Middle Management 27% vs. ABS 27%

Indigenous - 1.2% vs. ABS 0.95%

POLICIESPOLICIES

Complete review covering Flexible Leave, Maternity and Paternity, Recognition and Reward, Family Friendly, Work – Life Balance principles, etc

Extensive consultation and engagement of all staff

High degree of customisation to balance business and individual needs


© Corporate Vision Pty Ltd 20035

2003N= 621

2002N= 303

Copyright 1987 Human Synergistics

In association with:

OCI Results: 2002 vs 2003OCI Results: 2002 OCI Results: 2002 vsvs 20032003


CURRENTREALITY

2006

CURRENTREALITY

2006

Staff PerceptionSurvey 2006

Staff PerceptionSurvey 2006 Employee

Engagement Workshops 2004,05,06

Accommodation Strategy

Employee Engagement

Workshops 2004,05,06

Accommodation Strategy

Culture Study

Office of PublicEmployment 2005

Culture Study

Office of PublicEmployment 2005

Dignity at Work(bullying survey)

PHD Student 2006

Dignity at Work(bullying survey)

PHD Student 2006

WorkforceDemographics Analysis

Swinburne University

WorkforceDemographics Analysis

Swinburne University

Women in Engineering Survey

Adelaide University

Women in Engineering Survey

Adelaide University

STOCKTAKE 2006STOCKTAKE 2006

Graduate FeedbackGraduate Feedback

Recruitment Partner

Feedback and Reviews

Recruitment Partner

Feedback and Reviews


THE NEXT THE NEXT 5 YEARS5 YEARS Human Resources & Organisational Development Plan

We will develop a high achieving culture with a talented and diverse workforce.

Attracting & Retaining the Right People

Inspiring LeadershipBecoming the Employer

Of Choice

Mentoring Exec & Snr Managers

Career Planning

Development Planning• Organisational• Business Unit

• Personal

Skills Development Program

Youth & Special Programs

• Graduate• Apprentice

• Trainee• Indigenous• Disability

Technical / Operational Development Program

Change Management

Peter Ward

Competency Assessment Framework

Responsibility

Tina Gevaux Chris Glasson

Growing Capability

Replenishment

Recruitment & Selection

Values

ALP / FLM

Development Centre

OCI / LSI

Staff PerceptionSurvey

Remuneration

Performance MgmtProcess

Policies & Practices

Enterprise Bargaining

New ClassificationSystem

Training NeedsAnalysis

Corporate 5 Year Capability Development

Plan

Scholarships

Contract Review

Induction

Resourcing

LeadershipCompetencies (PW)

Succession Planning (CG)

Joint initiative HR/OD

Chris21 Review(CG)

Talent Management (TG)

Coaching (TG)

Workplace Behaviours

WORKFORCE PLANNINGWORKFORCE PLANNINGIDENTIFIED KEY AND CRITICAL ROLE REPLACEMENTIDENTIFIED KEY AND CRITICAL ROLE REPLACEMENT

2007 2008 2009 2010 2011 TOTAL

W&W Systems, Treatment and Operations 1 2 2 1 4 10

Water Quality 1 1 1 1 4

Dam Design and Maintenance 1 1 2

Trade Waste 1 1 2

Special Engineering Functions 4 2 3 1 2 12

Asset Management 1 2 3 4 10

Environmental Management 1 1 2

System Planning and Modelling 2 1 3

Research and Development 2 2

Sciences 4 2 2 2 10

Trades (Co-ordinators and Specialists) 4 3 3 3 2 15

Network Operations: Technical 2 2 1 2 2 9

Professional 1 1 1 2 5

Support 2 1 2 1 6

District Leaders 3 2 3 3 3 14


ADDITIONAL RESOURCING & COSTS FOR REPLENISHMENT AND IMMEDIATE SKILLS ADDITIONAL RESOURCING & COSTS FOR REPLENISHMENT AND IMMEDIATE SKILLS (In addition to Current Workforce Plan)(In addition to Current Workforce Plan)

2007/8 2008/9 2009/10 2010/11 2011/12TOTAL(000’s)

WI Trainees$330k

(8 people) $330k

(8 people)$330k

(8 people)$330k

(8 people)$330k

(8 people)$1650

Apprentices$270k

(10 people)$620k

(20 people)$1050k

(30 people)$1550k

(40 people)$1190k

(34 people)$4680

Graduates$490k

(6 people)$440k

(6 people)$440k

(6 people)$440k

(6 people)$440k

(6 people)$2250

Technical Trainees -$300k

(5 people)$600k

(10 people)$900k

(15 people)$900k

(15 people)$2700

Temp Transitional$1010k

(11 people)$765k

(8 people)$1625k

(18 people)$1425k

(16 people)$1195k

(13 people)$6020

Hydrologist & Hydrogeologist

$159k(2 people)

$165k(2 people)

$172k(2 people)

$179k(2 people)

$279k(3 person)

$954

Civil, Mechanical and Electrical Engineers

$487k(4 people)

$454k(4 people)

$373k(3 people)

$220k(2 people)

$123(1 person)

$1657

Resourcing Co-ordinator

$79k(1 person)

$82k(1 person)

$85k(1 person)

$89k(1 person)

$93k(1 person)

$428

TOTAL($,000’s)

$2825 $3156 $4675 $5133 $4550 $20339

TOTAL(people)

42 54 78 90 81


• Demonstrates commitment to succession and values current workforce

• Allows strong internal development and promotions by filling from the bottom

• Confirm commitment to strategic culture and people management

• Excellent marketing tool

BENEFITS OF WORKFORCE PLANNING APPROACHBENEFITS OF WORKFORCE PLANNING APPROACH


Level 2 arrival point from the stairs facing the atrium

Level 2 Hub

Level 2 North

Level 2 HubLevel 2 North

Level 2 Meeting Rooms

Level 3 Meeting Rooms Level 3 Reception

Level 4 Hub

Level 2 Lab Write Up Area

Level 3 Reception

Level 4 Hub

Level 5 Hub

Level 3 Reception

Level 4 HubLevel 4 Workpoints

Level 5 Hub

Entrances to Level 3 Training Rooms

Level 5 Workpoints

PRIVATE Vs. PUBLIC SECTOR MYTHSPRIVATE Vs. PUBLIC SECTOR MYTHS

• Performance Management is possible in the Public Sector

• Public Sector people work just as hard as the Private Sector

• Private Sector processes can work in the Public Sector

• Public Sector processes are needed in the Private Sector (Governance, Risk

Management, etc)

• Lots of things in the Public Sector are immune to political change so you can

think/act strategically and not just budget cycle


SUMMARYSUMMARY

Immediate Manager Supervisor Performance

Job Satisfaction

Employer of Choice

Organisational Commitment

OH&S

Commitment to External CustomerService

STRENGTHS

Career Development

(particularly system of promotion)

Performance Review Effectiveness

(particularly career planning)

Internal Customer Service

& Organisational Cohesion

Communication Effectiveness(particularly input/opinions)

IMPROVEMENT AREAS


Establishing As An Employer Of Choice

Business

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