Business Plan-Human Resource Component

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1 RiskID Phone Fax ABN Business Plan-Human Resource Component Mid West Group of Councils August 2010

2 1.1 People Current State The four Shires are reasonably aligned in culture with a history of regional co-operation over the past 20 years. They have similar workforces and communities, although the mining activities in Perenjori and Morawa are presenting different opportunities and challenges. By comparison to many country local governments they have stable workforces who are generally competent to deliver services to their communities. Specific roles and positions are hard to identify or compare across the region as where there are position descriptions, they are mostly generic or out of date. Constraints relating to managing the human resources assets are evident in time, skills, capacity and knowledge among the senior and supervisory staff. Some essential services are outsourced or shared. There are good and appropriate relationships across the region and within the Shires between Elected Members and Staff Comparative analysis of functional considerations The current situation in People, HR and Workforce Management across the four participating Shires is outlined in the tables below. Mingenew Morawa Three Springs Perenjori Policy An Organisational policy manual is in place developed by a consultant, with some evidence of implementation in relation to operational procedures across the Shire, but little in legislative and HR management context. Contains a mixture of organisational, operational and governance policy and procedure that would be more effective if documented and managed separately. An Organisational policy manual is in place developed by a consultant, with some evidence of implementation in relation to operational procedures across the Shire, but little in legislative and HR management context. Contains a mixture of organisational, operational and governance policy and procedure that would be more effective if documented and managed separately. Addresses most aspects of the Organisation. There is often not a direct between a policy and An Organisational policy manual is in place developed by a consultant, with some evidence of implementation in relation to operational procedures across the Shire, but little in legislative and HR management context. Contains a mixture of organisational, operational and governance policy and procedure that would be more effective if documented and managed separately. An Organisational policy manual is in place developed by a consultant, with evidence of implementation in relation to operational procedures across the Shire, but less in legislative and HR management context. Contains a mixture of organisational, operational and governance policy and procedure that would be more effective if managed separately. Also the Manual contains some regional council and resource sharing processes.

3 Mingenew Morawa Three Springs Perenjori They address most aspects of the Organisation, although somewhat generic in nature. There is often not a direct between a policy and related procedures There is limited resource available to support development or implementation. Policies and procedures cover Members, Administration, Finance, Personnel, Housing, Council Buildings, Reserves, Parks and Gardens. Works, OSH and Building Approvals. Complaints and Grievances, Code of Conduct, EEO and Purchasing the related procedures. There is limited resource available to support development or implementation. Policies and procedures cover: Administration, Buildings, Finance, Health, Industrial, Law, Order and Public Safety, Plant and Equipment, Roads, Recreation, Town Planning, Economic Development, and Gravel Pit rehabilitation. Reviewed last in 2010 They address most aspects of the Organisation, although somewhat generic in nature. There is often not a direct between a policy and related procedures There is limited resource available to support development or implementation. Policies and procedures cover: Members; Administration; Finance; Personnel; Housing; Council Buildings; Works ; OSH;EEO; Complaints and Grievances; Codes of Conduct Reviewed last in 2010 They address most aspects of the Organisation, and seem more tailored, but policy and procedure do not have direct relationships in many instances. There is limited resource available to support development or implementation. Policies and procedures cover: Administration; Plant; Works; Finance; Housing; Council Buildings, Reserves, Parks and Gardens; Health Building and Planning; Employees; OSH; Reviewed last in 2009 with good review document trail Reviewed last in 2009 Management Plans in place Community Safety and Crime Prevention Disability and Inclusion Waste Management Plan for the Future EEO and Diversity Public Interest Disclosure LEMC Customer Service Charter Community Safety and Crime Prevention Disability and Inclusion Waste Management (In Part) Code of Conduct Plan for the Future Risk Management (in part) LEMC EEO and Diversity Plan Community Safety and Crime Prevention Disability and Inclusion Waste Management Plan for the Future (little evidence of implementation plan) Public Interest Disclosure EEO and Diversity Community Safety and Crime Prevention Disability and Inclusion Waste Management (in part) Plan for the Future LEMC

4 Management Plans not in place Mingenew Morawa Three Springs Perenjori EEO and Diversity Fraud Control Governance Framework Risk Management Framework Strategic HR Plan Recruitment and Retention Plan Change Management Plan (under development) Displaced Employees Plan EEO and Diversity Fraud Control Governance Framework Strategic HR Plan Recruitment and Retention Plan Change Management Plan (under development) Displaced Employees Plan LEMC Customer Service Charter Fraud Control Governance Framework Risk Management Framework Strategic HR Plan Recruitment and Retention Plan Change Management Plan (under development) Displaced Employees Plan Fraud Control Governance Framework Risk Management Framework Strategic HR Plan Recruitment and Retention Plan Change Management Plan (under development) Displaced Employees Plan HR Roles and Functions Administration 1 (2%) 5 staff ( 10-40% of time ) 1 (2%) 2 (10%) Recruitment 2 (2%) 3 Staff (5%) 2 (2%) Payroll 1 (7.5%) 1 staff (20%) 1 (7.5%) HR Records Management 1 (2%) 1 staff (10%) 1 (2%) Performance appraisal management 2 (2%) 3 staff (5%) 2 (2%) Secretarial work - 1 staff (5%) 1(2%)- 3 (5%) 2 (15%) 1 (5%) 4 (5%) - Advertising Local and State Newspapers Local and State Newspapers Local and State Newspapers Online, Local, State Newspapers Recruitment In-house recruitment In-house recruitment In-house recruitment In-house recruitment

5 Mingenew Morawa Three Springs Perenjori EAP No No No No Current Award /Agreement Award + Federal Agreement Award+ Award + Federal Agreement Annual Human Resource Costs The identified staff and other specialist serves costs to date. They would be difficult to compare across the four Shires as data is recorded differently Mingenew Morawa Three Springs Perenjori Total Staff Costs (admin and outside all cost included) $984,083 $1,582,377 $1,346,966 $1,800,000* Consultants $26,000 $7,436 $24,000 Contractors $36,900 $40,400 $57,680 $48,840 HR Expenditure (total) - $ $1,046,983 $1,630,213 $1,428,646 $1,848,840* Training Budget Outside Staff 10,000 13,050 $12,650 $22,000 Training Budget - Admin Staff 10,600 14,000 12,000 $17,000 Admin Staff Conference Budget 10,500 5,000 0 $ 5000 Training Budget 10/11 (% Staff Budget) $31,100 (3.15%) $32,050 (1.97%) $24,650 (1.83%) $ (2.4%) Midwest Regional Council $24,000 $17,000 $24,920 $29,000 MWC Zero Waste Strategy $10,000 $10,000 $10,000 $10,000 *approximate costs due to way employment costs are budgeted to include some employment related capital costs in housing.

6 SWOT analysis The following analysis is based on observation over the last 13 weeks, review of documentation, Shire information and data, staff meetings, staff and Elected member surveys and the outcomes of the Local Government Structural Reform Checklist process. Mingenew Strengths The culture of the Shire is positive with an effective change management and communication approach in place Desire to work across the region to provide improved facilities and services to the community Strong management evident in works and services area Good working relationship between CEO and Council Stable staff base Locality in relation to the Midwest Regional Centre (Geraldton) Strong community with high sporting and recreational culture Opportunities HR development strategies to underpin strategic direction and local employment opportunity Redevelopment and redeployment of staff to reduce multitasking Review of Organisational structure and the management of resource sharing Progression of amalgamation strategy to build capacity, resources and career paths to meet Proficient Organisational Capacity requirements Additional economic development opportunities with restructure and reform Weaknesses Limited senior and professional staff in organisational structure although resource sharing with Three Springs Policies and procedures in place but not communicated or implemented in full Low OSH management systems compliance Workload and travel for shared finance professionals and CEO high Limited grant writing and community development resources Limited evidence of HR management and employee development HR record keeping and data collection seem inadequate Low level of educational and community facilities and services that may affect recruitment of senior and professional staff Low level of people management skills Limited career paths for staff Inability to adequately meet Local Government Department Criteria in relation to Principal Area 5 Proficient Organisational Capacity Threats Legal or financial consequences in HR and Industrial Relations compliance requirements Staff recruitment and retention constraints in the current and future mining developments Continued availability of consultants, contractors and resource sharing options in current industrial climate. Skills and knowledge loss if not managed well that may affect services and function of the Shire

7 Morawa Strengths The culture of the Shire is positive with an effective change management and communication approach in place Desire to work across the region to provide improved facilities and services to the community Strong leadership and administrative management Good working relationship between CEO and Council Stable staff base Educational and community facilities and services that may assist in senior and professional staff Strong economic growth potential with mining developments OSH management systems compliance demonstrated in audit, with only work to do in Emergency Response before reaching compliance status. Economic development strategy and staff resource Skills and knowledge in Health and Development services Opportunities HR development strategies to underpin strategic direction and local employment opportunity Development or redeployment of staff to reduce multitasking Increasing the focus of training and development through improved performance appraisal processes. Progression of amalgamation strategy to build capacity, resources and career paths to meet Proficient Organisational Capacity requirements Additional economic development opportunities with restructure and reform Weaknesses Organisational policies and procedures in place but not all communicated or implemented in full Health Building and DCEO role combined posing a risk in staff turnover. Limited evidence of focussed HR management and employee development HR record keeping and data collection seem inadequate Inability to adequately meet Local Government Department Criteria in relation to Principal Area 5 Proficient Organisational Capacity Inefficient performance management system that does not link position descriptions with KPIs to appraisal process. Threats Legal or financial consequences in some HR and Industrial Relations compliance requirements Staff recruitment and retention constraints in the current and future mining developments Skills and knowledge loss if not managed well that may affect services and function of the Shire Ability to meet the current and future needs in service delivery without a clear understanding of roles, functions and KPIs

8 Perenjori Strengths The culture of the Shire is positive with an effective change management and communication approach in place Desire to work across the region to provide improved facilities and services to the community Strong leadership and administrative management Good working relationship between CEO and Council Stable staff base Educational and community facilities and services that may assist in senior and professional staff Strong economic growth potential with mining developments OSH management systems compliance demonstrated in audit, with only work to do in Emergency Response before reaching required Compliance status. Economic development strategy and staff resource Skills and knowledge in Health and Development services Opportunities HR development strategies to underpin strategic direction and local employment opportunity Development or redeployment of staff to reduce multitasking Increasing the focus of training and development through improved performance appraisal processes. Progression of amalgamation strategy to build capacity, resources and career paths to meet Proficient Organisational Capacity requirements Additional economic development opportunities with restructure and reform Weaknesses Organisational policies and procedures in place but not all communicated or implemented in full Limited evidence of focussed HR management and employee development HR record keeping and data collection seem inadequate Inability to adequately meet Local Government Department Criteria in relation to Principal Area 5 Proficient Organisational Capacity Outside workforce development and appraisal does not appear robust Threats Legal or financial consequences in some HR and Industrial Relations compliance requirements Staff recruitment and retention constraints in the current and future mining developments Skills and knowledge loss if not managed well that may affect services and function of the Shire Ability to meet the current and future needs in service delivery without a clear understanding of roles, functions and KPIs

9 Three Springs Strengths The culture of the Shire is positive with an effective change management and communication approach in place Desire to work across the region to provide improved facilities and services to the community Reasonably stable staff base Strong community Sound financial and health services skill base Weaknesses Organisational policies and procedures in place but not all communicated or implemented in full Limited evidence of focussed HR management and employee development HR record keeping and data collection seem inadequate Inability to adequately meet Local Government Department Criteria in relation to Principal Area 5 Proficient Organisational Capacity Plan for the future not linked to organisational implementation Management structure does not appear to be working efficiently and effectively in shared resources area OSH management systems inadequate to meet compliance, although no evidence of unsafe working environment Relationship between CEO and Council not optimal Inefficient performance management system linking position descriptions with KPIs to appraisal process. Opportunities HR development strategies to underpin strategic direction and local employment opportunity Review of management structure to increase effectiveness and efficiency with underpinning skills and capacity analysis Increasing the focus of training and development through improved performance appraisal processes. Progression of amalgamation strategy to build capacity, resources and career paths to meet Proficient Organisational Capacity requirements Additional economic development with restructure and reform. Threats Legal or financial consequences in some HR and Industrial Relations compliance requirements Staff recruitment and retention constraints in the current and future mining developments Skills and knowledge loss if not managed well that may affect services and function of the Shire Ability to meet the current and future needs in service delivery without a clear understanding of roles, functions and KPIs

10 Summary Outcomes Across the four Shires the top three issues and opportunities are outlined in the table below. Strengths Weaknesses The culture of the Shires is positive with an effective change Organisational policies and procedures in place but not all management and communication approach in place communicated or implemented in full Desire to work across the region to provide improved facilities and Inability to adequately meet Local Government Department Criteria services to the community in relation to Principal Area 5 Proficient Organisational Capacity Stable staff base Limited evidence of focussed HR management and employee development Opportunities Progression of amalgamation strategy to build capacity, resources and career paths to meet Proficient Organisational Capacity requirements Additional economic development with restructure and reform HR development strategies to underpin strategic direction and local employment Threats Ability to meet the current and future needs in service delivery without a clear understanding of roles, functions and KPIs Staff recruitment and retention constraints in the current and future mining developments Legal or financial consequences in some HR and Industrial Relations compliance requirements

11 2 Amalgamated State 2.1 People In the amalgamated state the Shire would be in a stronger position to progress the strategic objectives by having a sound understanding of the workforce in relation to skills and knowledge, that will allow them to have effective and efficient work teams with a more focussed approach to specific functions and services. In addition integrating similar roles and functions across the four Shires will bring a wealth of knowledge and experience together where the best practices of the region can form the basis of the new Shire s practices and processes and service levels. With additional professional support in governance and compliance, human resource, IT and records management, the Shire will be positioned to be an employer of choice and be better able to compete in the competitive employment markets. The proposed ward management structure that will effectively manage operations, will allow the CEO and the specialist economic and community development team to work on the business of organisational and regional development and growth. The Shire staff will also be better resourced and supported to develop and manage the sustainability requirements of the Federal and State Government in long term financial planning, asset management, strategic and workforce planning as well as risk management. Elected Members will be better resourced in training and development, as well as better remunerated for their contribution to the Shire Analysis of functional considerations Policy The amalgamated entity will have the rare benefit of being able to implement and communicate best practice policies and procedures as the integration of the four workforces and new staff affords the opportunity to reach all staff and induct them to the new Shire. Many staff will have contributed to compiling and / or reviewing policy during the transition period which gives rise to more awareness and ownership. The establishment of a specialist human resources resource will ensure that the Shire maintains and builds on this best practice opportunity. The proposed policy manuals will include

12 Governance, Organisational, Human Resources and Occupational Safety and Health Manuals that will be made available in all relevant areas as well as electronically recorded and version controlled. Plans The New Shire will comply with legislative requirements and government recommendations in relation to Organisational plans for the effective management of the workforce. These will include: Change Management Plan Community Safety and Crime Prevention Customer Service Charter Disability and Inclusion Plan EEO and Diversity Plan Emergency Management and Evacuation Fraud Control Plan Governance Plan Human Resources Plan Industrial Relations Management plan LEMC Occupational Safety and Health Public Interest Disclosure Recruitment, Retention and Displaced Employees Plan Risk Management Plan Strategic Workforce Plan Some of these plans are currently in place and they will be appropriately integrated, the rest will be developed in the transition phase. Appropriate legislative reporting and audit requirements will be built into the processes that underpin them.

13 Cultural integration and development The Change Management and Communication Plan approved and implemented in the planning phase will be used as the basis for cultural integration and a key focus of the transition phase will be to involve all staff across the region in the development of processes, policy and workflows. This will be supported by a Change Management Peer Support group of employees who will have full access to the CEOs and the Project officer to ensure an early intervention approach to cultural issues arising. Human resource structure The new Shire will have a key focus on human resource management led by the CEO and resourced through a dedicated HR and OSH Manager. All Managers and Supervisors will receive training and development in people and workforce management to enable them to carry out their responsibilities in this area. This will be under pinned by robust systems and processes and effective record keeping. Industrial relations support will continue to be provided on contract to ensure up to date and impartial professional advice as required. The Human Resources Manager will be accommodated in the same Ward as the CEO and have a role in the strategic and operational planning activities of the Shire. It is anticipated that little new accommodation or infrastructure will be required to accommodate this position. Critical to the success will be the implementation of an electronic Human Resources Management System that should be installed and populated in the transition phase.

14 2.1.2 SWOT analysis Strengths The culture of the Shires is positive with an effective change management and communication approach in place Across the region desire to provide improved facilities and services for the community and maintain economic stability and local identity. Stable staff base that is generally competent and the ability to redeploy or embraced redesign of their roles and functions to effect the necessary changes to deliver more effectiveness and efficiency where required. Opportunities Progression of amalgamation strategy to build capacity, resources and career paths to meet Proficient Organisational Capacity requirements Increased efficiencies and effectiveness in services and functions through restructure and redesign. Ability to attract higher level of professional and management skills and knowledge Ability to better influence the future of the region through increased grant funding and other resources and Elected Member training and development Weaknesses Common vision and expectations not yet established enough to instil trust and confidence in staff and community Uncertainty in final organisational structure and locations of service teams Uncertainty of funding arrangements and adequate financial resources to meet expectations and requirements Threats Non acceptance of change in workforce and community Staff recruitment and retention constraints in the current and future mining developments Inability to implement effective organisational structural change that meets strategic objectives

15 3 Transitional Action Plan People Issue Task Objective Required Action and Timeframes Progress against Actions Identification of the current staff skills and knowledge Capacity Audit and Gap Analysis In progress and 50% of staff have completed initial self assessment. Industrial Relations All current awards, benefits salaries and wages identified Staff and interviews and validation with managers to be scheduled and carried out. By October 2011 Skills and knowledge register to be compiled By December 2011 Current position descriptions compiled and validated By February 2011 Personal records, financial data reviewed and staff interviewed By February 2011 Commenced Harmonisation plan researched and developed Plan compiled in consultation with legislative and peak bodies, unions and IR specialists By March 2011 Staff Training and Development Agreement developed and negotiated for the new Shire in consultation with employees and the unions Identification of training needs or recognised prior learning opportunities to address current gaps and build capacity Sourcing appropriate and available skills Agreement negotiation process carried out though to logical end. Post amalgamation. Review of capacity audit and gap analysis outcomes - By November 2010 Research training needs and

16 and knowledge training providers Determining budget and availability of staff with current workload to attend identified programs and courses Finalisation and implementation of the training calendar service providers Nov Dec 2010 Review budget and availability of staff By December 2010 Complete and implement training and up skilling By December 2010 HR Structure Recruit for HR Manager By January 2011 Workforce Planning to meet requirements for the new Shire Organisational Structure Process map all services and functions of existing and new Shire to identify required roles, functions and services Services and functions to be identified and mapping carried out in consultation with management and staff By January 2011 Position Descriptions Align with available skills and knowledge with required roles, functions and services Position descriptions compiled and validated for all roles in the new Shire Map appropriate staff to requirements By February 2011 Position descriptions developed in consultation with all stakeholders. By March 2011 Determine redeployment, job redesign, recruitment requirements and develop the workforce plan including EEO based process for internal staff transition and integration into new roles and positions Train relevant staff in recruitment, application and interview processes. Identify gaps in skills and knowledge and commence consultation with staff re potential roles or functions. Plan to recruit for gaps. By April 2011 Identify staff who will participate in the recruitment process or need to apply for positions and implement appropriate training. By April 2011 Not Commenced

17 Appointing roles and positions for new Shire Policy and Procedure Governance and HR Related Plans Formally appoint all positions through redeployment or recruitment Further development of policy and procedure manuals to ensure the best of the region are enhanced and built upon These plans will be built in consultation with relevant stakeholders and aligned to the strategic direction and approved governance models Consult, negotiate or recruit as appropriate to fill all positions on Organisational chart. By June 2011 Policy needs fully scoped and current ones reviewed Update and integration of policies into appropriate manuals By March 2011 Manuals completed in draft and forwarded for review and approval By May 2011 Manuals implemented Post Amalgamation Required plans identified Integration and compilation of formal plans By March 2011 Completed Commenced Completed Manuals completed in draft and forwarded for review and approval By May 2011 Communication and Change Management Continued implementation of the communication and change management plan Manuals implemented Post Amalgamation Staff peer support group trained and implemented September 2011 Identify and appoint EAP provider Commenced with Volunteer staff members identified

18 by September 2011 Staff focus group and meeting schedules finalised for the transition period By October 2011 Manager and supervisor training schedules finalised and implemented By October 2011 Integration process planned and implemented By October 2011 Staff and Elected Member resurvey By February 2011 Not Commenced Not Commenced

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