1. 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

2. 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?

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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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.

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

12. 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

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

14. 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

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

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

17. 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

18. 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