STRENGTHENING YOUR BUSINESS THROUGH DIVERSITY A GUIDE FOR EMPLOYERS

Transcription

1 STRENGTHENING YOUR BUSINESS THROUGH DIVERSITY A GUIDE FOR EMPLOYERS

2 Commonwealth of Australia 2012 With the exception of the Commonwealth Coat of Arms and where otherwise noted all material presented in this document is provided under a Creative Commons Attribution 3.0 Australia ( licence. The details of the relevant licence conditions are available on the Creative Commons website (accessible using the links provided) as is the full legal code for the CC BY 3.0 AU licence ( The document must be attributed as the Strengthening your business through diversity A guide for employers. 2 STRENGTHENING YOUR BUSINESS THROUGH DIVERSITY A GUIDE FOR EMPLOYERS

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4 A DIVERSE WORKFORCE Many Australian companies are starting to realise that diversity in the workforce makes good business sense. Diversity in employment means opening up existing possibilities in the community by equally considering all people with the skills and the willingness to work, including: mature-age workers people with disability people who are long-term unemployed Aboriginal and Torres Strait Islander peoples culturally and linguistically diverse Australians. Our community includes people from all walks of life. Considering the mix of staff you have in your business can have a positive impact on the way you do business. Our economy, industries and workforce have changed dramatically from the time of our grandparents, and even parents. Many Australian businesses are realising the value that comes from their workforce reflecting the diversity that exists in our own community, Bill Shorten, Minister for Employment and Workplace Relations said. This booklet, published by the Australian Government, is a guide for Australian employers to understand the support available to diversify your workforce. Why diversify? There are many social and economic reasons that make diversity in the workplace a great business case. Gain access to a growing and often untapped source of potential employees Many organisations, especially those in industries affected by skill shortages, are meeting skills needs by taking the opportunity to employ people from diverse backgrounds, such as mature age workers, Indigenous Australians or people with disability. Matching the demographics of the Australian community Our community, and your customers, come from all walks of life so why shouldn t your employees? It is well known that customers relate best to people like them. Diversifying your workforce can help you better understand and talk to the different members of your community. Increasing the connection with your staff and your community Practices in the workplace ensuring equal opportunity and equal access for all can strengthen workplace culture. This has significant knock-on effects, such as increasing retention and morale. Employing people with disability, for example, is often viewed well by co-workers, and has an overall positive impact on the workplace. To diversify their workplace, organisations often work with community organisations in the area, such as the local Job Services Australia provider, to identify people within the community with both the skills and the right fit for the workplace. This can help organisations increase the connection they have with the communities they work in. Bill Shorten MP Minister for Employment and Workplace Relations 4 STRENGTHENING YOUR BUSINESS THROUGH DIVERSITY A GUIDE FOR EMPLOYERS

5 A diverse workforce can save you money Contrary to popular myths, employing people from diverse backgrounds doesn t have to cost your business. In fact, it can make great business sense. For example, mature-age and employees with disability take fewer sick leave days and stay with the same employer longer 1. In addition, by diversifying your workforce, you could be eligible for programs and subsidies funded by the Australian Government. Programs and subsidies are outlined in this booklet. Diversity isn t difficult In practice, employing a diverse workforce is just that diverse. There are potential employees in the community from all walks of life, with different skills and abilities. It s just about finding the person who fits into your business, and the Australian Government provides services all around the country to help you do just that for free. Job Services Australia and Disability Employment Services Job Services Australia and Disability Employment Services are a network of organisations funded by the Australian Government to provide free employment services at the community level. Locally based Job Services Australia and Disability Employment Services providers have strong knowledge of the local employment marketplace, and have networks within the local community to help match employers with the right person to meet their needs. Their services are designed to be flexible and responsive to employer needs, working with businesses to understand the workplace and find the most suitable person. Providers of Disability Employment Services offer specialised assistance, training and job design assistance for employers wanting to employ people with disability, injury or health conditions. These services are free and can also help employers navigate and access the range of support programs and subsidies available for employing a diverse workforce. EMPLOYMENT SERVICES Job Services Australia Call Website: Disability Employment Services Call Website: CASE STUDY Realising the potential of a diverse workforce Woolworths is one company that has harnessed the potential of a diverse workplace. It entered into the Fresh Start Agreement with the Australian Government. The agreement will see Woolworths employ thousands more people across its network of stores Australia-wide. There will be a particular focus on employing job seekers from diverse backgrounds and giving them the targeted training they need to fill the many positions on offer at Woolworths. I had taken a break from work for several years to support my family and when I decided to seek work I couldn t secure a job, said Wendy. I was told about the Woolworths Indigenous Pre-Employment Program, which included courses on leadership and development, retail training as well as retail training in stores. Wendy applied for the program, was accepted and was assigned a mentor who proved a great support. Wendy now works as a bakery assistant and is happy to be back in the workforce. Through the agreement, Woolworths state managers will be able to access streamlined assistance and liaise directly with government about financial incentives, skills, training and support services to help job seekers find work. This includes access to Government initiatives such as Wage Connect, Skills Connect and assistance from employment services providers. Wendy Rankine is a mature-age worker who is employed at one of Woolworths busiest stores in South Australia. Wendy Rankine, a mature-age worker at Woolworths 5

6 MATURE-AGE WORKERS The demographics of our society are changing. The aftereffects of the baby boom combined with advances in health sciences mean the population is ageing as we live longer, healthier lives. Life expectancy has increased to 79.5 years for men and 84 years for women 1. People are living longer and working longer. For your business to stay viable and successful it needs to develop policies to recruit and retain mature-age workers well into the future. Mature-age workers provide significant benefits to the organisations they work for. They come with years of skills and experience that can be passed on to other workers in the business, helping increase the skill level throughout your organisation. They are often also more loyal than other groups of workers, saving money overall through less sick days and increased retention in the workplace 2. The employment and participation rates of mature-age people have shown solid growth over the last 10 years. However, once unemployed, mature-age people can find it difficult to re-enter the labour market 3. Support is available to support mature-age job seekers to participate in the workforce, including access to free professional career advice and a jobs bonus for employers who recruit and retain a mature-age job seeker. Already have mature-age workers in your workplace? Retention is as important as employment when it comes to diversity. There are a number of programs available to support mature-age workers already in the workforce. This includes subsidies to help solidify their years of experience into industry-recognisable qualifications, and assistance with forward planning as older workers approach retirement, to address skills and knowledge gaps in your workplace. Help to employ mature-age workers There is a range of free support available to employ and retain mature-age workers. From programs to help you assess the demographics of your workforce and help you plan to address skills and knowledge gaps, to incentives for hiring mature-age workers, or helping train your mature-age employees. Experience+ The Australian Government s Experience+ services can help employers to assess the demographics of their workforce to identify and address potential skill and knowledge gaps, and to recruit and retain experienced staff. Website: The benefits of hiring mature-age workers Loyalty: employee loyalty saves money on absenteeism, training and recruitment. There is evidence that workers aged over 55 are five times less likely to change jobs compared with workers aged Skilled, experienced and more productive: experienced workers have built up knowledge and skills during their time in the workforce. A study by Australian Health Management found that workers over 55 years of age out performed their younger counterparts 5. Reduced injuries: mature-age workers are less likely to experience work-related injuries than other workers 6. Support in the workplace: mature-age workers bring work and life experience to a business. Using these skills in workplace mentoring programs can reduce staff turnover, train other employees and improve staff morale. Technological competence: do you think you ll have to train a mature-age worker to use your computer system? According to ABS data, mature-age people are the fastest growing users of information technology 7. 6 STRENGTHENING YOUR BUSINESS THROUGH DIVERSITY A GUIDE FOR EMPLOYERS

7 BUSINESS SUPPORT FINANCIAL SUPPORT Corporate Champions Employers who make a commitment to move toward better practice in recruiting and retaining mature-age workers can receive a package of tailored support through the Corporate Champions program, including help to review current human resource policies and practices and to develop an action plan for positive change. To express your interest in becoming a Corporate Champion, or to receive a copy of a Tool Kit to help you implement age-friendly work practices, experience@deewr.gov.au. Employers of all sizes Australia-wide are welcome to apply. Website: Career Advice The career advice service can help your mature-age staff plan ahead. Professional Career Advisers will work with your staff to explore the opportunities available to stay in the workforce or transition to retirement. This is a free telephone and -based service for anyone aged 45 years and over, so staff can access career advice while at work or in the comfort of their own home. Call Website: CASE STUDY Mature-age employees improve bottom line for aged care service Aged care service provider, Catholic Homes, has improved staff morale and reduced WorkCover claims by continuing to employ and focus on the needs of mature-age employees. Catholic Homes currently employs 231 employees over the age of 50. This accounts for 40 per cent of its workforce and is a number that Manager of Human Resources Dominic Calabro said Catholic Homes expects will continue to grow. Mature workers are an untapped resource suitable for our industry given their life experience, skills and maturity and present as an excellent candidate when considering our workforce needs, Dominic said. Employers need to reframe their perception of mature-aged workers and encourage their managers to adopt a positive attitude and see them as a pool of excellent job candidates. Jobs Bonus From 1 July 2012, a Jobs Bonus of $1,000 will reward employers who recruit and retain a mature-age job seeker aged 50 years or over, payable after 13 weeks in employment. Corporate Champions will receive priority access to the new Jobs Bonus. Call Website: Investing in Experience (Skills Recognition & Training) Employers with mature-age workers (50 years and over) can apply for grants of up to $4,400 (includes GST). These grants are to assist mature-age employees to have their skills formally assessed, gain formal recognition of their current competencies and receive training to fill any knowledge or skills gaps, leading to obtaining a nationally recognised qualification at the Certificate III to Advanced Diploma level. Call Website: CASE STUDY Experience is the key to productivity in manufacturing A northern Melbourne manufacturing company is showcasing how its 55 per cent mature-age workforce can bring benefits to its business. PWB Anchor in Bundoora has been manufacturing metal chains and lifting equipment for domestic, agricultural, construction and mining applications for nearly 90 years. The company focuses heavily on quality assurance and relies on a highly skilled workforce. Operations Manager Matt Wagenhelm said the company has never actively sought to have a high percentage of mature-age workers. It s something that came about naturally through retention of employees and a focus on hiring highly skilled workers. As a small to medium business, it is far more cost effective for us to employ experienced workers, Matt said. PWB Anchor sees benefits from the specialised skills of its mature team members in all aspects of the business. Our more mature and experienced workers can mentor the younger ones in their behaviour, work ethic and problem solving skills. Employees at PWB Anchor in Victoria 7

8 PEOPLE WITH DISABILITY Approximately one in five Australians is classified as having disability 8. People with disability have conditions caused by accident, trauma, genetics or disease, which can restrict their functions in performing tasks. The majority, however, are still able to perform above and beyond the requirements of a whole range of different jobs in Australian workplaces. There are a myriad of different people with disability with different skills, abilities and a willingness to work. The business advantage Australian organisations actively employing people with disability are finding these employees come with significant competitive advantages. They are extremely reliable and have better than average attendance, safety, productivity and retention levels 9,10. They also tend to boost the morale of workplaces overall and help business to understand diversity in customers. Most importantly, they are an untapped resource of skilled employment. Did you know? Employees with disability are rated as average or above average in productivity, flexibility and attendance. Workers with disability have a positive impact on staff morale. Employing people with disability builds customer loyalty and provides business benefits to the employer brand. Employees with disability are an extremely diverse group both in sense of their skills and their needs. Employing a person with disability does not cost more than a person without disability. Financial assistance is also available for workplace modifications. Employees with disability actually have fewer scheduled absences as well as better retention rates. Employees with disability cost marginally less in terms of safety and insurance costs. CASE STUDY Diversity opens doors for small businesses A New South Wales electronics manufacturer has implemented a policy of having people with disability making up 25 per cent of its workforce. Steven Bennet said Benbro doesn t employ people on the basis of their disability, rather on their skills and what they can bring to the company. Benbro Electronics, an electronics equipment design and manufacturing facility in Brookvale, has been recognised with numerous awards for employing people with disability. The first person to apply for a job here had a disability, said Director Steven Bennet. The first thing we asked ourselves was can this person do the job? and the answer was yes, so we hired them. Staff at Benbro Electronics in Brookvale NSW 8 STRENGTHENING YOUR BUSINESS THROUGH DIVERSITY A GUIDE FOR EMPLOYERS

9 Help to employ people with disability Employers who want to access the benefits of employing people with disability have a range of support available. Disability Employment Services and JobAccess can help employers with a range of steps, including workplace assessments, searching for employees, job design assistance and information on financial assistance. BUSINESS SUPPORT Disability Employment Services Offers free recruitment services and specialised assistance, training and job design assistance for employers wanting to employ people with disability. Call Website: JobAccess A free information and advice service, funded by the Australian Government, helps employers of people with a health condition, injury or disability. JobAccess advisers provide employers with information about Government support and incentives to assist with hiring people with disability. JobAccess provides financial assistance for workplace modifications, assistive technology, Auslan interpreting and special work equipment. Call Website: FINANCIAL SUPPORT Disability Employment Services Wage Subsidy Scheme Financial assistance of up to $1,500 is available to employers who employ eligible people with disability from the Disability Employment Services program, for a minimum of eight hours a week for 13 weeks. Wage Connect Wage Connect is a new wage subsidy designed to assist job seekers in Job Services Australia and Disability Employment Services, who have been on income support for a minimum of two years and have not had significant employment in that time. Wage Connect provides around $5,700 for placing a job seeker who has had minimal or no recent work experience into work at their assessed work capacity. Enhanced Wage Subsidy From 1 July 2012, an Enhanced Wage Subsidy will be available to assist job seekers who have had difficulty obtaining employment to get a job of at least 15 hours a week for 26 weeks. The Enhanced Wage Subsidy will provide up to $3,000 to employers. Supported Wage System The Supported Wage System encourages employment opportunities for people with disability who are unable to compete for jobs due to the impact their disability may have on their work capacity. The Supported Wage System can only be used in industries with relevant provisions in their industrial awards or agreements. CASE STUDY Lady Luck and a little determination land talented mechanic a job for life For Rob and Karen Lockley, the owners of a thriving small-machine shop in Kingston, Tasmania, employing disability support pensioner Bryan Lines had nothing to do with compassion and everything to do with good honest business sense. I feel blessed to have found this job, said Bryan. You wouldn t believe the number of jobs I d applied for. But as soon I mentioned my heart condition or medication, most people didn t want to know. But what do these guys do? They find me a hoist to raise the machines so I don t have to go crawling around underneath them. I want to keep working here till I can t work a day longer. The 59-year-old Tasmanian was clearly an exceptional mechanic; the fact that he hadn t worked for two years, and had a heart condition and a weak back did not change that. The day we employed Bryan was the luckiest day of our lives, said Karen. The Lockleys luck was the product of a concerted effort by Disability Employment Services provider, Advanced Personnel Management (APM), to help people with disabilities back to work and the determination of one man to return to doing what he does best. Bryan Lines working at the Stihl Shop in Kingston, Tasmania 9

10 LONG-TERM UNEMPLOYED There are a number of reasons why a person may be out of the workforce for a long period of time. Statistics by the Australian Bureau of Statistics show that some of the top employment issues for long-term unemployed people (those who have been unemployed for more than a year) are also issues of diversity. This includes people who are discounted during the application process because of health or disability (16.6 per cent), considered too old (8.9 per cent) or too young/inexperienced (10.7 per cent) 11. Approximately 17 per cent of long-term unemployed people cannot find work due to a shortage of positions in their skilled sector. Long-term unemployed people can also suffer from discrimination due to their employment status, with many discounted at the application stage because of the myth that long-term unemployment comes because of unwillingness to work. An untapped resource Long-term unemployed people are an untapped resource in our economy. Many have transferrable skills from other industries or a strong will to get back into work, which can be applied across any number of positions in an organisation. The first step is in ensuring your organisation and the organisations you use for recruitment (such as temp and recruitment agencies) don t discount applicants based on their recent unemployment status. Free employment services, such as those provided by Job Services Australia and Disability Employment Services can also work with you to find an employee that will fit your particular skills and culture fit. Help to employ the long-term unemployed FINANCIAL SUPPORT Wage Connect Wage Connect is a new wage subsidy designed to help you to reduce the costs of taking on new staff. The wage subsidy of around $5,700 for each job placement, or around $220 per week (pre-gst), targets employers who take on job seekers with minimal or no recent work experience. Wage Connect can help offset initial training and labour costs. At the same time, it provides eligible job seekers with the opportunity to gain work experience, improve their future prospects and move off income support. Call the Employer Hotline CASE STUDY Diversified workforce brings success for Aussie manufacturing business Blown Plastics, a plastic manufacturer in Elizabeth, South Australia is reaping the rewards of having diversity in its local workers and has received national recognition for its commitment to a varied workforce. The company employs roughly 100 employees who, without fail, keep the factory operating 24 hours a day, five days a week, producing beverage containers, car parts and medical equipment. The workforce ranges in age from 17 to 61 and includes skilled and unskilled Indigenous and non-indigenous Australians with varied employment histories in manufacturing, administration, quality checking and sales roles. We ve got one guiding principle when hiring new workers and that is to find the person most suitable for that particular job whether that person has disability or has had trouble finding work in the past doesn t come into it, Darryl Mansfield, Operations Manager said. What we always look for is honesty and a willingness to learn and with those two qualities we will try to bring the best out of anyone once they are here. 10 STRENGTHENING YOUR BUSINESS THROUGH DIVERSITY A GUIDE FOR EMPLOYERS

11 INDIGENOUS AUSTRALIANS Many Australian businesses are finding there are unique advantages to actively seeking Indigenous Australians as part of their workforce strategy. Aboriginal and Torres Strait Islander people have a unique demographic mix. As Australian families get smaller and older, our Indigenous population gets bigger and younger 12. Indigenous Australians have strong linkages with community networks, especially in regional and rural areas, through which they can provide in-roads into new networks and strong links with the local community. They can also provide fresh skills and perspectives based on their own culture and help increase the cultural knowledge and awareness of non-indigenous staff. Help to employ Indigenous Australians The Australian Government is committed to closing the employment gap between Indigenous and non-indigenous Australians. To meet this commitment, there are a number of services available to help employers find and employ Indigenous Australians. Job access programs, such as those run by Job Services Australia can help employers find Indigenous employees that meet their particular skills needs. BUSINESS AND FINANCIAL SUPPORT Indigenous Employment Program The Indigenous Employment Program (IEP) provides a range of support to meet the needs of employers, Indigenous Australians and their communities. IEP offers tailored solutions to assist employers recruit, train and provide sustainable employment. CASE STUDY Numbers speak louder than words Russell Freeburn always found it easier to relate to numbers rather than words but didn t know how to translate this into a career path. Growing up in regional New South Wales, 33-year-old Russell had never enjoyed school and recalls how, when it came to a career, he was uncertain about what the future might hold. I jumped straight from high school into a Bachelor of Social Science but it wasn t right for me. English was never my strong point I had only just learned how to read three years before finishing school, Russell said. Not ready to part with the idea of gaining a fulfilling career, Russell eventually applied for an apprenticeship in light vehicle mechanics. The apprenticeship was hard work but it was also the most rewarding thing I have ever done. The hands-on training he received during his apprenticeship allowed Russell to finally work in a job he is not only passionate about, but one that plays to his natural strengths. Russell was offered a management position with Gibbo s Auto Spares after completing his retail traineeship making him their youngest manager ever. Advancing his career further, Russell now resides in Sydney working for JLG Industries as NSW Parts Manager. Support is also available under the Indigenous Wage Subsidy, which includes Career Development Assistance to help Indigenous workers in achieving accredited training, tickets (such as Stop/Go) or licenses (such as forklift) within their first 26 weeks of employment. Call the Indigenous Employment Hotline Russell Freeburn working at Gibbo s Auto Spares 11

12 CULTURALLY AND LINGUISTICALLY DIVERSE AUSTRALIANS Australia is one of the most culturally diverse countries in the world. Our cities and many regional areas are made up of a rich mixture of backgrounds from all continents across the globe. This highly diverse culture presents a great opportunity for any organisation doing business in Australia, as these individual cultures also represent a large part of the consumer buying power. This is just one of the many reasons why your workforce should have a mixture of cultures representing the wider population. Other cultures can bring a different perspective to your business and help you understand and tap into niche cultural markets. They can provide invaluable language and cultural skills or help you access global markets. Many workers, especially those who have worked outside Australia, bring invaluable expertise that can be utilised and shared for the benefit of our economy. Help to employ culturally and linguistically diverse Australians There are a range of services available to help employers find job seekers from culturally and linguistically diverse backgrounds. Job Services Australia can help businesses find staff from all backgrounds with the right skills to meet business needs. Programs are also available to help integrate English language training for employees. BUSINESS SUPPORT Workplace English Language and Literacy Program (WELL) The Workplace English Language and Literacy Program can help you to integrate English language, literacy and numeracy training with accredited vocational training delivered in the workplace. Funding is available for training projects, resource projects and strategic projects. Call Website: CASE STUDY Diverse employees make for positive corporate culture Brisbane-based Carter Newell Lawyers is proactive in employing people with disability. The firm s Disability Support Program provides employment opportunities for people with disability, ranging from mild impairments to physical restrictions. It s a chance for us to help transition employees who have experienced a disability back into the workforce, Human Resources Manager Belinda Parish said. It allows us to be a supportive and diverse organisation. Belinda collaborates with local Disability Employment Services provider Job Placement Ltd for assistance in recruitment and support. Job Placement Ltd ensures job seekers abilities match the requirements of the position. There are currently eight people with disability employed at Carter Newell Lawyers, making up five per cent of its workforce. Often employers take the view that it might be too difficult or complicated to embark on this type of employment strategy, however there is a positive impact for the business and all the employees. 12 STRENGTHENING YOUR BUSINESS THROUGH DIVERSITY A GUIDE FOR EMPLOYERS

13 READY TO TALK ABOUT DIVERSITY? Job Services Australia: Disability Employment Services: Indigenous Employment Line: Experience+ :

14 REFERENCES 1 Australian Bureau of Statistics (2012), Gender Indicators, Australia 2 Australian Bureau of Statistics (2006), National Health Survey: Summary of Results, Australian Bureau of Statistics (2006), Work-Related Injuries, Australia 3 Australian Government Department of Treasury (2012), Delivering a Stronger, Fairer Future May Australian Bureau of Statistics (2006), Labour Mobility Survey 5 Australian Health Management (2006), Baby boomers give employers a bang for their buck 6 Australian Bureau of Statistics (2006) Work-Related Injuries, Australia, Cat. No Australian Bureau of Statistics (2009), Disability, Ageing and Carers, Australia: Summary of Findings 8 Australian Bureau of Statistics (2012), Gender Indicators, Australia 9 ` Graffam,J., Shinkfield, A., Smith,K., & Polzin, U. (2002b) Employer benefits and costs of employing a person with a disability. Journal of Vocational Rehabilitation 10 Australian Safety and Compensation Council (2009), Are People with Disability at Risk at Work? A Review of the Evidence 11 Australian Bureau of Statistics (2011), Job Search Experience Australia 12 Australian Bureau of Statistics (2006), Population Characteristics, Aboriginal and Torres Strait Islander Australians 14

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