The Federal Government views social inclusion as a policy approach that can promote better integration of programs and initiatives across government departments and also across levels of government. While the concept has been criticised for its lack of definition, Government statements about it have consistently referred to its desire to find ways to make social inclusion more concrete through finding practical, local projects that increase opportunities for disadvantaged individuals and communities. Key emphases are homelessness, disability and mental health, indigenous disadvantage, pre-school education access and employment.
As the ANZ’s Saul Eslake and the Business Council of Australia’s Michael Chaney have recently expressed: reducing disadvantage is now both a moral and economic imperative for Australia. In its submission - Reducing Barriers to Employer Uptake from Groups with Low Participation in the Workforce - to the Federal Government this year, the Business Council of Australia claims that over the next twenty years Australia will face the dual aging population challenge of an increasing number of welfare dependents against its declining taxpaying workforce.
Currently there are just five workers paying income tax for every one person reliant wholly or mainly on welfare payments. This is compared to 22 workers for every welfare recipient in the mid 1960’s and the Federal Government’s Intergenerational Reports highlight the further expected decline in this ratio. The limited pool of employees will act as a break, slowing economic growth. The Australian minerals boom and consequent employment shortages has provided an example of the issues likely to face employers and the economy more broadly in the future. In dealing with these challenges Australia must undertake steps to improve the productivity of it's existing workforce including through increased education and skill levels, currently being addressed through the Productivity Places Program.
But skilled employment is only part of the employee shortage picture and while employers compete for human resources, Australia faces a second major challenge. Despite more than a decade of sustained economic growth there remain around 2.3 million people on welfare who are outside the main stream economy and therefore continue to miss out on Australia’s prosperity. Lack of employment is a key contributor to social exclusion, connected with a myriad of problems from mental health through to intergenerational poverty. Australia’s unemployed and “non-participants” in the workforce represent a substantial untapped resource. In 2007 the Business Council of Australia undertook research which estimated that around one million individuals who are currently not participating in the workforce have the capacity to be in productive employment if key barriers were addressed. Improving hiring and retention rates of individuals from these disadvantaged groups offers multiple benefits for the individual business through to the economy more broadly.
So faced with the prospect of greater competition for limited labour resources in the future, what can Business do to make hiring from disadvantaged groups a success? It is important to note up-front that recruiting new employees involves risks. Internal strategies for addressing these risks need to be adjusted when hiring from more disadvantaged pools in order to ensure that the initial hire is a success and that the employee is retained. Following are ten factors, which businesses experienced in this area, including Rio Tinto, Toll Holdings, NAB, IBM, and Qantas, have nominated as contributing to their success in hiring and retaining staff from disadvantaged groups.
1. Be clear about the business’ motivations in hiring from disadvantaged groups. The most successful organisations in this area have been those where the specific hiring program has an appropriate ‘fit’. For example, a mining company which operates in remote communities which hires Indigenous youths.
2. Direction and leadership regarding the importance of hiring and retaining from these groups needs to be reinforced by the CEO and supported by senior management and its’ business management practices.
3. Businesses need to ensure that the staffing, hiring and retention policies are directly tied into the business plan and vision. Investment in human capital requirements must be treated as seriously as any physical capital investment, including planning and lead times. Organisations such as Rio Tinto have had greater success where the objective of increasing hiring and retention from these groups is directly reflected in manager’s key performance plans. Ensuring that relevant management’s performance indicators include successful hiring and retention of individuals will directly contribute to problem solving within organisations.
4. Start small. Keep it simple, manageable and real. Hiring one person will assist that individual and may also have positive impacts in shifting attitudes for others in the workplace. Beyond this there will be further positive impacts on the individual’s family, peer group and wider community such as changing perceptions regarding what is feasible amongst their peers. Conversely, starting a large program which is insufficiently resourced and does not succeed can have detrimental impacts on both the individuals involved and the business.
5. Prior to the recruitment process use business networks, government and employment provider resources to develop an initial understanding of the target group. Roles, training and business practices may need to be adjusted. For example, some target groups typically perform well in a team environment but not in an isolated position. However, do not assume that one size fits all. Businesses should ensure that sufficient time is spent on understanding an individual’s specific challenges and requirements. There also needs to be effective emphasis on helping individuals develop an understanding of the business and specific expectations of them.
6. The business needs to ensure their goal of increasing hiring and retention from low participating groups is backed by investment over an effective length of time and with adequate resources. Hiring from disadvantaged groups involves long term commitments. A business can expect positive returns on their investment in an individual but this will generally be over an extended period. Resources will be required for training and mentoring of individuals. Appropriate site or workplace preparation including infrastructure changes and training for those who will work with the individual is crucial. Flexibility may also be needed regarding that group’s performance in the initial months.
7. Start with a site or department which displays the most compatible and ‘healthy’ culture where the individual is most likely to succeed.
8. Where the benefits are clear but the risks appear to outweigh them, consideration should be given to a program of work experience. Work experience programs provide a valuable community contribution, with the individuals involved benefiting directly. They also allow the business to trial the potential costs and benefits of a longer term commitment to an employee.
9. Develop a long term relationship with potential employment service providers, such as Status. Long lead times allow more targeted training by the provider with greater capacity to ensure direct relevance to the organisation.
10. Mentoring has a proven track record of success. Experienced businesses recommend using the mentoring services facilitated by employment providers and establishing a parallel mentoring program within the organisation. Companies such as Qantas for example, employ external people with specialist skills in training and mentoring rather than taking their existing employees off line.
Social Inclusion therefore is not just about poverty and the provision of welfare – it is about active citizenship and participation, ensuring all Australians can participate in the economic, social and civic life of the nation. |