CIPD Response to NCPP Consultation Paper Modernising our Workplaces to Deliver Irelands Competitive

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CIPD Response to NCPP Consultation
PaperModernising our Workplaces to Deliver
Irelands Competitive Social Vision5th
February 2004

• Michael McDonnell, BBS, MSc, Chartered FCIPD
• Director, CIPD in Ireland

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Submission divided into three sections

• A) Drivers of Change
• B) Arenas of Change
• C) Implementers of Change

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Section A

• Drivers of Change
• Economic
• Social

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(Section A) Drivers of Change

• ECONOMIC ISSUES ?
• Social Change
• Economic
• Immigration
• Benchmark against principal competitors
• Global Competitiveness Report (behind Finland,
  Sweden, Denmark all high cost economies)
• Calls for
• Flexible, learning orientated, mobile workplace
• Open to constant change

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(Section A) Drivers of Change

• Economic Issues
• SOCIAL CHANGE ?
• Social
• Better Work-Life Balance
• Infrastructure
• e-Work
• Flexibility
• Not shorter hours and more Holidays!
• Work-force participation
• 2nd Chance education
• Dublin imbalance

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(Section A) Drivers of Change OPPORTUNITIES

• Population Unique in Europe
• 3.9m with 1.2m under 19 years of age
• 960k between 19 34 years
• Only 290,000 over 65
• Education
• Proportion of 25-34 age group with upper
  secondary education 50 higher than UK level
  (2001)
• Proportion of 18 year olds in education (late
  90s)
• - Ireland 74
• - Britain 53
• - next lowest EU country 65)

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Section A Drivers of Change THREATS

• Average Annual Earnings
• Poland 7,000
• Greece 10,000
• Portugal 19,000
• Spain 19,000
• Ireland 28,000 -

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Section B

• Arenas of Change
• Organisational Capability
• Increasing Employee Engagement

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Section B Arenas of Change (Based on) The
People Performance Model
Ability/skill
---------------------- Motivation/
Incentive ---------------------- Opportunity to
participate
Performance is a function of Ability Motivation
Opportunity (AMO Model)
(Boxall Purcell 2003)
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Section B Arenas of Change The People
Performance Model
Ability/skill
---------------------- Motivation/
Incentive ---------------------- Opportunity to
participate
Organisation commitment --------------- motivatio
n -------------- Job satisfaction
Performance outcomes
Discretionary Behaviour
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The People Performance Model
Ability/skill
---------------------- Motivation/
Incentive ---------------------- Opportunity to
participate
Organisation commitment --------------- motivatio
n -------------- Job satisfaction
Performance outcomes
Discretionary Behaviour
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The People Performance Model
Ability/skill
---------------------- Motivation/
Incentive ---------------------- Opportunity to
participate
Front line management - Implementing -
Enacting - Leading -
Controlling
Organisation commitment --------------- motivatio
n -------------- Job satisfaction
Performance outcomes
Discretionary Behaviour
A Model for the Workplace of the Future
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Section C

• Implementers of Change
• Government
• Employers
• Employees
• Trade Unions
• Public Sector

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Section C Implementers of Change

• GOVERNMENT
• Visionary Leadership
• Infrastructure
• Education
• - Pre school structures
• - Education
• - Upskilling in post manufacturing era
• - Equality
• - Government as an employer

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Section C Implementers of Change

• EMPLOYERS
• Employees as stakeholders
• Reward linked to performance
• Employability
• Welfare / Health and Safety
• Benchmarking for constant improvement
• Audit HR practices

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Section C Implementers of Change

• EMPLOYEES
• Adding Value
• Flexibility
• Early warning system on job viability
• Open to performance management
• Partnership and Participation
• TRADE UNIONS
• Promoter of people centred change or barrier to
  change?
• Outmoded focus on collective to determent of
  rewarding the best (custodians of mediocrity?)
• Line and HR Management

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Section C Implementers of Change

• PUBLIC SECTOR
• Open recruitment for senior management positions
• Encourage greater mobility
• Professionalise HR and proper career structure
• Promotion solely on Performance

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In Summary

• Our Objective The development of High
  Performance Workplaces
• Discretionary Behaviour the distinguishing
  feature
• Based on a well researched template covering
• Valued employees
• Clear vision
• Individual development
• Fair reward
• Employee voice
• Performance measurement
• Continuous change
• Effective HR central to implementation of
  template

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And finally .. Some grounds for optimism

• Well established enterprise culture
• Sophisticated Industrial Relations
• Young population unique in Europe
• High value placed on education, lifelong learning
  and adaptability
• The workplace of the future can play a pivotal
  role in the creation of a more inclusive,
  equitable and prosperous Ireland. We wish the
  Forum every continued success

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Anticipating and Meeting the Needs of a Changing
Workforce
Royal Hospital Kilmainham

• Meeting February 5th 2004

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EQUALWorkplace of the Future

• Presentation to Forum
• 5th February 2004

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Format of EQUAL Presentation

• Who we are.
• Why were relevant.
• Examples of EQUAL product and WIP.
• Key messages.
• QA

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Who we are

• Cross sectoral and cross societal Development
  Partnerships funded under EU EQUAL Initiative.
• EQUAL aims to
• identify and address fundamental forms of
  discrimination and inequality in connection with
  the labour market.

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Why were relevant

• Representativeness.
• Policy relevance.
• Innovation.
• Evidence based solutions.

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What we have to offer

• Work life balance.
• Job rotation.
• Supporting partnership.
• Awareness raising equality / diversity.
• Equality / diversity training.
• 3rd level access LLL.

• Guidelines for employers.
• Staff handbooks.
• Diagnostic tools WLB, ethnic diversity.
• Inter-agency protocols.
• Case studies.
• Original research.

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Key Messages

• Our workforce has always been diverse concept
  of diversity needs to viewed from that vantage
  point
• need to better manage diversity
• need to diversify particular workplaces and
  types.
• Keep equality and diversity at the heart of
  on-going deliberations
• include those looking for work as well as those
  already in work
• Recruitment, retention, progression, HR
  practices, LLL etc.

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Key Messages contd.

• Partnership approach between the business
  community, trades unions, the state and its
  agents as well as society at large, including the
  voluntary and community sectors.

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Key Messages contd.

• Forum needs to explicitly include the voluntary
  and community sectors in its deliberations if it
  is to be truly inclusive and comprehensive.
• Forum needs to more directly engage with and
  include SMEs and to develop innovative strategies
  for communication and engagement.

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Key Messages (contd.)

• Future growth dependent on successfully
  mobilising, retraining developing increasingly
  diverse sources of labour
• need strategies for accommodation inclusion
  (WLB, childcare, flexibility, literacy,
  mentoring, coaching, job shadowing, raising
  employer awareness etc.)
• Need to increase quality and breadth of
  in-company training and to implement a coherent
  system of LLL.

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The way forward

• Recently published European Commission report
  entitled The Costs and Benefits of Diversity
  (October 2003)
• Companies that implement workforce diversity
  policies identify important benefits that
  strengthen long-term competitiveness and, in
  certain instances, also produce short and
  medium-term improvements in performance

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Thank You for Listening

• Feel free to contact us
• www.equal-ci.ie

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Anticipating and Meeting the Needs of a Changing
Workforce
Royal Hospital Kilmainham

• Meeting February 5th 2004

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FÁS Submission to NCPP

• Forum on the Workplace of the Future
• Presentation by Roger Fox on behalf of Patricia
  Curtin, Assistant Director General, HRD/Finance
• 5 February, 2004

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Skills and Competitiveness

• Skills and human resources essential to
  competitiveness
• And becoming more important over time-
• Trend to knowledge-based economy
• Flexibility of other policies weakening (e.g.
  fiscal, monetary because of EMU)
• Not just in internationally-traded goods and
  service sectors, but domestic services (public
  and private) as well

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Skills and Labour Supply

• Need to become high skills economy
• Not just top jobs
• Half of all jobs will still be manual or
  routine service even in 2010
• High-quality initial/continuing training
  essential at all occupational levels
• And
• High labour demand to 2010 will require ongoing
  contribution from
• Activation policies for unemployed people
• Increased Participation
• Migration

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Initial Training/Education

• Reduce early school-leaving (ESL)
• Raise proportion of young persons entering
  third-level education
• Provide recognised qualifications for all others
  
• Focus, at all levels, on quality and relevance to
  labour market

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Continuing Training/Education

• Priority should be to increase participation of
  low-skilled workers
• Not just matter for employers role for public
  policy
• Review current public funding approaches e.g.
  consider selective funding of Paid Educational
  Leave
• Importance of national qualifications framework
  to the promotion of a culture of regular
  up-skilling throughout working life

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Labour Market

• Maintain thrust of activation policies
  continual review of tax/welfare incentives
• Female participation -- family-friendly working
  arrangements targeted tax incentives child
  benefit neutral
• Older participation extend activation to 55-64
  review pension structure down-shifting
• Increase employment opportunities for persons
  with disabilities

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Labour Market (cont.)

• Migration policy need to move towards a
  national Green Card system
• Human Resources policies at the level of the
  firm, to play a constructive role in both the
  acquisition and deployment of skills

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Anticipating and Meeting the Needs of a Changing
Workforce
Royal Hospital Kilmainham

• Meeting February 5th 2004

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Skills, Education and Training in the Workplace
of the Future
Anne Heraty, Chairperson Presentation to
the National Centre for Partnership and
Performance 5th Feb. 2004
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• About the EGFSN
• Chronology
• 1997 Dr. Chris Horn, Founder Chair, Iona
  Technologies
• 2001 Dr. Danny OHare, President Emeritus, DCU
• 2004 Ms. Anne Heraty, Founder CEO, CPL
  Resources Ltd.
• Composition
• Business
• Employees
• Education
• Government departments
• State agencies
• Reports to both the Minister for Enterprise,
  Trade and Employment and the Minister for
  Education and Science

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• Responsibilities
• Advise Government on skills and labour supply
  issues for the enterprise sector
• Advise Government on projected requirements and
  make recommendations on the steps required to
  address identified needs
• Regularly follow up with the bodies responsible
  for implementing these recommendations, to
  facilitate and assess progress on implementation
• Consider strategic issues in developing
  partnerships between business and the education
  and continuous training sectors, in meeting the
  skills needs of business

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• Responsibilities (cont.)
• National Training Advisory Committee merged with
  EGFSN, in Jan. 2004
• Expanded EGFSN has acquired additional
  responsibilities
• To advise the Minister for Enterprise Trade and
  Employment on the overall strategy for enterprise
  training in Ireland
• To identify best practice on enterprise training
  and its application to public policy
• To advise the Minister on the priority training
  needs of the enterprise sector with as view to
  raising the skills of people in employment
• To advise the Minister on the relevant aspects of
  the National Training Fund, as set out in Section
  7 of the National Training Fund Act, 2000.

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• Three Principal Challenges
• Slowdown in global economy
• More intense competition
• Rising costs

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• Enterprise is central to Quality of Life
• Workplace is Pivotal to future Enterprise
• Skills central to workplace
• In the economy ahead, there is only one source
  of competitive advantage skills.
• Lester Thurow, 1994.

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• Enterprise in a Knowledge Economy
• Internationally-traded Services
• High-Tech Production
• Product Development
• Research
• Work Environment in a Knowledge Economy
• Cerebral
• Multi-disciplinary
• Multi-cultural
• Ubiquitous ICT
• High levels of technical vocational skills
  (tertiary qualifications)
• Generic Skills

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• Emerging Challenges for Education Training
  Sector
• Maintaining Relevance
• Maintaining Standards
• Popularity of Sciences and Mathematics
• Modern Languages
• ICT
• Generic Skills
• Imbalances in access
• Demographics
• Participation rate in senior cycle education
• Variation in educational attainment by
  background, gender

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• Life-long Learning
• 573,000 in the workforce currently have not
  attained Leaving Certificate CSO, Census 2002
• LLL must become de rigeur in the workplace part
  of the culture
• Task Force on Life-long Learning
• National Adult Learning Council
• Linkage between business and education

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• Characteristics of a Progressive Workplace
• Responsive timely accommodation of external
  changes
• Flexible/Adaptive
• Creative/Innovative
• Continuous and incremental improvements in
  competitiveness
• Up-/Re-skilling
• - Workplace must support and encourage Lifelong
  Learning
• High Performance Management practices
• Facilitates maximum contribution of all staff

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• Conclusion
• Education and Training pivotal to future
  prosperity
• There is an onus is on both employers and
  employees to make LLL a reality
• Investment in skills as vital as in investment in
  infrastructure

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Anticipating and Meeting the Needs of a Changing
Workforce
Royal Hospital Kilmainham

• Meeting February 5th 2004