1 An Ageing Workforce Opportunities for RTOs

2 Part one: Australias Demographics What makes the next decade any different to the previous three (or more) decades?

3 Australian Baby Boomers are retiring The numbers of young people joining the workforce are reducing in number in all western countries Australias fertility rate is 1.7 … … this is below replacement levels

4 Fertility Rates within Australia: 1921 to 2051 Source: ABS Cat No Replacement Rate 2.1

5 Source: ABS Cat No

6 During the past 40 years labour growth has helped fuel Australias GDP growth rate Over the past years Australias labour force has grown by an average of around 180,000 per annum and may better that in 2005 and Access Economics predicts that during the decade beginning 2020, this will have dropped to an average of around 19,000 per annum The decline in the supply of young people has commenced and will accelerate sharply in the next decade

7

8 With the retirement of the baby boomers Tas, SA, NSW & Vic will be the first states to feel the impact. WA and Qld will be affected slightly later. So far, labour supply is able to keep pace by extending employment to those previously marginally employed Despite this, serious skills shortages have already appeared in many industries Predictions indicate that by 2010 serious labour shortages could exist in some industries

9 What does the decline in growth mean? Fewer workers means reduced labour supply reduced skills availability potential negative impact on ability to produce goods or services in Australia

10 SO: Numbers of young people are declining relative to the population Numbers of older people are increasing relative to the population Many employers are already facing skill shortages Skill shortages are predicted to get worse as the baby boomers leave the market with their knowledge and skill Employers, especially in small/medium businesses, may face serious labour shortages

11 QUESTION Where will labour growth come from in the near future?

12 As the decline in the supply of younger employees starts to bite, employers will be looking for assistance. They will need literate, skilled, knowledgeable employees Many employers will need to work hard to retain their competent older workers Many will need to recruit from groups with historically lower levels of participation

13 One group for employers to consider is older workers … Already skilled, experienced They bring a training investment with them Have attitudes of loyalty, persistence, quality Have a knowledge of products, customers, systems Represent the age of many of the customers who will increasingly be mature age themselves.

14 1.What are the implications for employers in retaining older workers? 2.What are the implications of this for training providers? 3.What are the implications for students? 4.How will the future differ from the past for RTOs?

15 Implications Part two: Implications Older workers will be critical to labour supply Despite best efforts only a fraction of the training budget goes to workers over 45 If employers need to retain older workers it is unthinkable that they could be 20 years without skilling What might be needed?

16 Implications for Employers Employers may have to revise employment practices to make the workplace more flexible more interesting and varied healthier And they will have to make training and promotion opportunities open to people of all ages to encourage competent older workers to remain in the workforce

17 Employers will expect RTOs to analyse… roles, responsibilities and staffing requirements job design and task breakdowns career pathways and qualification mapping processes the linking of current training materials

18 specific learning resources diversity training customised training Employers may need design and development of:

19 … and practical approaches to: cultural and behavioural issues recruitment practices OH&S requirements …. targeted to HR Professionals, Managers, Employee Relations staff and Recruitment Personnel

20 Employers will also need support and advice that assists them to: manage skills requirements retain staff attract new employees

21 Implications for Learners Learners will need : A lifetime perspective on learning Recognition of prior knowledge, skills, experience and learning (especially important!) Taking into account the needs of individuals and their past experiences and fears

22 Learners will also need: Training activities and materials that are: Flexible, responsive and demand driven Succinct and detailed, tailored to the learners work environment Workplace-based learning Tied to immediate work requirements Modified to work circumstances Cost effective and accessible

23 Training Professionals can … Work with employers, industry, recruitment and HR management Reinforce a life course perspective Address entrenched attitudes and barriers Provide a non-threatening training environment Foster a demand driven approach to skills development Emphasise recognition of prior learning and experience Customise activities and services In short, be learner-driven

24 Training providers may wish to … Identify challenges for industry and client groups Review current courses/services offered Analyse current methodologies and practices, with particular emphasis on older learners Consider staffing, resource and facility requirements Identify professional development needs for the team Create new approaches and innovative services

25 So, where to begin? RTOs are advised to: 1. Identify the implications of this demographic shift 2. Plan for change 3. Upgrade professional skills 4. Work closely with employers and with learners AND … 5. Adopt Principles of Good Practice to guide further work (see separate template next slide)

26 PRINCIPLES OF GOOD PRACTICE The training professionals in this business follow these guiding Principles when working with older learners: We work in partnership with employers to ensure that all employees, regardless of age, are encouraged to participate in training, learning and development opportunities for the full course of their working lives We encourage workers and intending workers of all ages to recognise that continual upskilling is of critical importance to them in maintaining employment and in developing the potential throughout their working lives Together with managers and learners develop: Flexible pathways to extend skills and learning, including on-the-job learning, coaching and structured training opportunities short modules, and recognition of prior learning and current competencies cont/

27 PRINCIPLES OF GOOD PRACTICE (cont) The training professionals in this business follow these guiding Principles when working with older learners: We recognise the richness of experience in older learners and take these into account when designing and delivering training to them We recognise that many older learners may feel apprehensive in returning to learning, and provide learning opportunities that are sensitive to this possibility We work to dispel negative stereotypes about older learners through the promotion of positive case studies and encouraging older learners to share their experiences Market learning opportunities for older learners and measure the learning participation rate to ensure that they are not being overlooked when training opportunities present

28 You are invited to amend this template so it best fits your RTO business