Sustainable TAFE from a HR Perspective HR in sustainable organisations Presentation by Bob Welsh, CEO VicSuper Chairperson Sustainability Victoria Victorian TAFE Association HR Conference 2006 Sustainable TAFE from a HR Perspective Yarra Valley Conference Centre, Dixons Creek Wednesday 4 May 2006

The three issues that I will cover today What is a sustainable organisation? Does HR have a seat at the executive table in a sustainable organisation? And if so, how?

Sustainability “Helping to raise the quality of life for all people while preserving ecological integrity.” Ecos Corporation

What is a sustainable organisation? An organisation that achieves its objectives creating a net benefit – economically, socially and environmentally – for all stakeholders.

If your organisation is a company Sustainability means increasing long term shareholder value (financial performance) through integrating and improving economic, social and environmental performance. It is about embracing the opportunities and managing the risks deriving from economic, social and environmental developments

An example – personal mobility The automobile Economic Product quality, supply chain management, customer relationships, brand management Social Your safety and the safety of others people management practices Environmental Carbon emissions Renewable fuels

Another example – TAFE Economic Education quality, brand development, funding and emerging markets strategy Social Social inclusion policies, education services to students, curriculum development People management practices Environmental Carbon emissions, resource use efficiency, business opportunities in curriculum development

A sustainable company creates value A sustainable company will increase long term shareholder value because it: sees the risks and acts early, and seizes the opportunities before competitors do

A seat at the executive table Does HR have a seat at the executive table in a sustainable organisation? YES – directly or indirectly Because people management practices matter

What the research tells us. People management and financial performance Is there a link between people management practices and financial performance in a sustainable organisation? What the research tells us.

Research findings The research shows people management practices are positively correlated with financial performance in:- Performance driven workplaces Emotional engagement Leadership behaviour

Performance driven workplace Probability of a positive correlation with financial performance Performance driven workplace % probability Performance related remuneration >95 Usage of knowledge management systems % of employees hired on a validated selection test % of employees with job specific training % of workplace outplaced due to poor performance

Probability of a positive correlation with financial performance Emotional engagement % probability Lower % of qualified employees leaving the company >90 Superannuation plans with sustainability component

Leadership behaviours Probability of a positive correlation with financial performance Leadership behaviours % probability Use of employee-oriented measures of financial performance in regular management reporting >90 Systems to handle employee grievances >95 Employee benefits in excess of legal requirements >85

Obtaining a seat at the executive table How should HR professionals obtain a seat at the executive table in a sustainable organisation?

HR the key to more value added Need to demonstrate to the CEO the link between people management practices and organisation performance.

HR the key to more value added This means:- Creating a performance driven workplace Aligning company and personal values Connecting performance and engagement through leadership

Sustainable TAFE from a HR Perspective HR in sustainable organisations Presentation by Bob Welsh, CEO VicSuper Chairperson Sustainability Victoria Victorian TAFE Association HR Conference 2006 Sustainable TAFE from a HR Perspective Yarra Valley Conference Centre, Dixons Creek Wednesday 4 May 2006