Skills Utilisation in the Provinces A Taranaki Perspective Craig Stevenson Chief Executive South Taranaki District Council TARANAKI Talent Attraction and Retention Taking on the Challenge Taranaki Economy – Stats • Population = 109,700 • Regional GDP = $5.6 billion • Number of businesses = 14,451 • FTE’s = 47,445 National context • 3% NZ (GDP, Population, Businesses) • Comparatively small base • Powerhouse in key economic drivers – Energy, – Exports, – Primary production/added value – Engineering • Highest GDP per FTE in NZ Taranaki – NZ Comparison GDP (2008$m) 30% New Zealand 20% Taranaki Region 25% 15% 10% 5% 0% es s v ic er i ce rv lS Se na al tio s on ea ic e rs cr rv Pe Re Se l& ity ra un l tu m m Cu Co & s th al ion ic e t rv He ra n is t Se io in ty at er dm uc op tA Ed Pr en & e nm er nc ov na G Fi s, e es ag or s in St Bu t& or sp an de Tr ra l ity il T ita ta sp Re & Ho ale les ho W on g cti rin tru tu ns ac Co uf an m er th O g in er g ne gi s in En es oc Pr od ) Fo &G (O ing in M re tu ul ri c Ag source: BERL Database, 2008 Industry Oil and Gas - Taranaki • 20 O&G fields in production in Taranaki • Active drilling programme • Infrastructure development, supply chain involvement • Processing/production facilities, downstream/added value • Active export industry • Significant economic and social benefits for region Oil and Gas Industry Methanex – added value processing of natural gas Maui – off shore Engineering & Export Development $35m accommodation module for O&G platform in Australia’s bass strait – built in Taranaki Agriculture/Dairy Dairy farming & dairy processing: • 6,403 FTE’s • $678m GDP Plus: Meat processing, poultry processing, small goods. Other manufacturing e.g. timber processing As a region our talent needs are growing Biggest Skill Challenges Attracting and retaining skilled and experienced staff (engineering, specialist/trades areas, O&G) Sustainability of local training providers (Polytechnic – to ensure regional educational/upskilling facilities) O&G Skills and Employment • NZ O&G activity - next 12 months +56% • Ten largest companies next 12 months need: 100+ engineers 70 operators 50 technical staff and many more • Shortages more acute in future years. • Huge need for experienced people. • Often project based – peaks and troughs Taranaki – lower unemployment Unemployment Rate - Taranaki V NZ Taranaki 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 NZ Losing people • Net population loss • 1,124 people arrived and 1,679 departed (-555) Taranaki Arrivals and Departures - year to June arrivals departures 1800 1600 1400 1200 1000 800 600 400 200 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Many of these are our young and talented .... 450 387 400 Age of Long term Departures: Taranaki to 'All countries' Year to June 2012 350 300 234 250 200 162 150 124 142 111 110 85 100 95 78 73 41 50 20 12 3 60-64 years 65-69 years 70-74 years 0 0-4 years 5-9 years 10-14 years 15-19 years 20-24 years 25-29 years 30-34 years 35-39 years 40-44 years 45-49 years 50-54 years 55-59 years Australia (and others) have huge workforce and skill shortages O&G, energy, mining Taranaki is part of their solution Actively advertising and recruiting in our region The Aussie dynamic The "Aussie drain": Net impact on Taranaki population: annual to June 0 2000 2001 2002 -100 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -77 -200 -250 -300 -400 -283 -392 -500 -475 -535 -600 -604 -700 -242 -678 -509 -572 -691 -800 -900 -1000 -885 Fly-In Fly-Out (FIFO) New Zealand/Taranaki workers are commuting on regular basis to Australia to work (family remains here) FIFO explained Long distance commuting Used to fill capability and capacity needs Work is typically in remote locations Workers travel by air, car, bus) to and from worksites Companies provide accommodation/living expenses Work roster; fixed days on & off – 28/28 is not uncommon Targeting populated areas with recognisable skill sets Used in Australia to help service work requirements for major O&G and mining industries/projects Solutions • Training – long term solution. “Grow new talent” • Attraction from other parts of NZ – acceptable for some roles • Transfer from other industries – acceptable for some roles – need to adjust to O&G culture and H&S requirements. • Immigration – attraction from overseas is critical for specialist skill sets and experience. So what are we doing? Talent Attraction and Retention Taking on the Challenge Your region needs YOU! Active Regional Programme Working with employers “Swap Sides” promotional campaign Free Jobs web: www.taranaki.info/jobs Free lifestyle toolkit - employer recruitment info packs Videos promoting lifestyle benefits of Taranaki Events – attract people to experience the region FIFO campaign Ex-pats video Free Taranaki Jobs Website Taranaki Lifestyle Toolkits • Aid for employers recruiting from outside region • General overview of Taranaki region, living here, moving here, events, working here • Skills in demand - 8 main industry sectors • Hard copy & online www.taranaki.info Swap Sides Campaign • • • • • • • Targeting the skill gaps, grow population Engineering, health and business sectors Nationally and internationally Encourage people to consider moving to Taranaki, Leveraging off RWC 2011 Extensive media strategy Online, billboards www.taranaki.info www.taranaki.info Swap Sides: FIFO - Australia Digital Media – Online Banners on Energy and Engineering Sites • FIFO families sites, mining sites, specialist trades and sector sites sites, job sites, NZ news sites (geo-targeted) and Google network Grow Taranaki Recruitment Service Recruitment and placement services Job ops with Training Skills Investment Subsidy Skills for Growth Straight 2 Work 0508 4 Growth www.taranaki.info Swap Sides: Expats • Animated video targeted at expats • Former Hawera comedian Ben Hurley • Position Taranaki as ideal to live and work • Present Taranaki as the New Zealand we all like to remember and skite about Population 26,500 (and dropping) 14,000 Rateable properties Masses of infrastructure High levels of facility duplication Dispersed workforce STDC chosen as MBIE Case Study Induction Workshop (2½ hours) (Introduction to STDC, it’s culture and working environment) 2nd = 3rd 6th 9th Drive culture from top United Senior Leadership “One Waka” principle Walk the Talk Lead by Example Its OK to challenge Engagement Profile Engaged All NZ Top 25% STDC 32 52 55 Ambivalent Disengaged 55 43 43 13 5 2 Alignment to Vision & Values Sense of Community Clearly articulated VISION, Define the things we VALUE Sense of BELONGING, mutual SUPPORT and OPTIMISM Developing People Performance Culture Focus on DEVELOPING PEOPLE to fullest potential Culture that demands HIGH STANDARDS of performance Developing People Focus on DEVELOPING PEOPLE to fullest potential Induction Workshop (2½ hours) (Introduction to STDC, it’s culture and working environment) “Right people on the bus (Sitting in the right seats) Then figure out where to go” People before Strategy I meet all preferred applicants Favour internal appointments Align with our values Speakers Org logo. Must fit within the line Technical training Generic training – 10 modules Leadership Development 3 stages – offered externally Assist further education Leadership Challenge Vision & Values Innovation & Creativity Teamwork Civil Defence Managing Stress Influential Leadership Cultural Awareness Communication Styles Customer Service Induction Sessions Leadership basics Improving our writing Foundations of Leadership 10 modules to all staff Affordability? Develop & deliver in-house “Train the Trainer” 12 accredited facilitators 85-90% satisfaction Transfer and secondment Acting HGD Flexi work arrangements In conclusion Induction Workshop (2½ hours) (Introduction to STDC, it’s culture and working environment) L&D commitment paying off Right people, treated well Big Professional Family Work life Private life Employee engagement Performance Motivation Morale Loyalty Be Proud Same approach to work As you should to life