The labour force paradigm has shifted in a post-global financial crisis environment.
WHAT a difference a year makes.
During the past 12 months, Western Australian employers have faced renewed competition to find and retain skilled workers. This time around, however, the labour force is more focused on secure, longer-term employment.
The Australian Institute of Management WA says that, in the current environment, there has been a noticeable impact on employer and employee views of the job market.
Speaking to WA Business News, AIMWA executive director Patrick Cullen said a lot of movement in the job market during the boom was based on money, but this was unsustainable.
“In the past year employees have learned a lot, I think, and it has no longer been just about moving from job to job just for a higher salary, which many did during the boom," he said.
“Staff are seriously thinking about what they want in a job, in a career, and in an employer, and that means they're thinking about this beyond the dollars.
“The good employers have learned a lot about how to challenge staff and engage them as we move into a more buoyant economy.
“To survive as the economy continues to grow, organisations will need to continue focusing on what makes them unique and attractive as an employer of choice."
Perth-based executive search and talent acquisition service, Briscoe Search & Consulting, also found there was less mobility in the job market compared to the four years to 2008.
The firm's managing director, Brian Briscoe, said while greed among job seekers was prevalent during the boom, fear in the market post-GFC had led to people seeking secure, long-term careers that aligned with their personal values.
Mr Briscoe said the state's largest employers had become more diligent in their selection processes, positioning themselves as employers of choice and offering retention incentives to workers, such as flexible working hours or extended paid parental leave.
Some employers, however, had been forced to slash their numbers to lower operational costs and implement other measures to manage large rosters.
Contrary to Mr Briscoe and AIMWA's views, Perth senior regional director of global specialist recruitment firm Hays, Jane McNeill, said now the job market had improved, unhappy staff would be exploring their options for work.
“This means it's critical for employers to focus on their retention strategies," she said.
“For most companies, salary increases or bonuses were not an option this year, but recognition shouldn't be solely focused on monetary rewards."
Ms McNeill said a top retention tip was improving employees' work/life balance by offering flexible and reduced work hours.
Alcoa of Australia was this month recognised for its work/life culture when it was named the 'employer of choice' at the annual Australian Mining Prospect Awards.
The award is presented to an organisation that has successfully attracted, trained and retained staff through innovative and unique strategies.
Alcoa was commended for its commitment to the work/life blend, diversity initiatives, successful employee engagement programs, strong safety record, employee volunteering programs and the lifestyle that a career at Alcoa offers.
During the downturn, the mining company implemented a range of measures in relation to managing its 4,200-strong WA workforce, such as reducing the number of consultants and contractors and introducing across-the-board salary freezes.
Alcoa minimised the number of new employees through natural attrition - not replacing people when they left the company unless they were critical to the business.
Salary rises were deferred for most employees, with many people also taking voluntary redundancies.
Alcoa's executive director of people, environment and corporate affairs, Kim Horne, said despite a strong Australian dollar working against it, the company continued to invest heavily in staff during the downturn.
“Providing equal opportunities for both men and women to realise their career potential has been a central strategy for Alcoa for many years," he said.
Mr Horne largely credits the fact that 60 per cent of employees have been with the company for more than 10 years to Alcoa's flexible work policies.
To further boost morale, Alcoa encourages employee engagement through a suggestion scheme, which offers staff cash incentives if they come up with smart business ideas.
“Our philosophy is that we have a more productive and engaged workforce if our people are encouraged to make suggestions for business improvement, and are in turn listened to by the business. Last year we accepted over 10,000 suggestions," Mr Horne said.
In a sign of positive workplace morale, the company's return to work rates following maternity leave remain at 90 per cent, with data suggesting the organisation's ability to offer part-time work for those returning from maternity leave has had an impact on the retention of women.
Another major employer is Wesfarmers, which expanded its Australian workforce by 20 per cent in the past year.
The company now has more than 201,000 workers in Australia, of which 25,382 are in WA, up from 24,988 last year.
Acting general manager, corporate affairs, Keith Kessell, said Wesfarmers hoped to expand its Australian workforce this financial year by 6 per cent.
“In the 12 months to June we increased our Australian workforce by 9,000 and this was at a time when thousands, hundreds of thousands of jobs were being shed around the world," Mr Kessell told WA Business News.
To manage its growth in the downturn, Wesfarmers reduced working hours across its group, predominately affecting its Target, Kmart, and Bunnings stores, froze pay for all senior managers until 2011, and reduced the rate of projected salary increases.
Western Power also boosted its staff roster, recruiting 212 people in the past year, bringing its local workforce to 2,780.
Staff turnover rates declined 5.5 per cent after many people deferred retirement as a result of lower superannuation returns.
Company spokesperson Marisa Chapman said it was difficult to attribute this trend to the economic downturn as Western Power had already implemented employee engagement and cultural transformation programs pre-GFC.
She told WA Business News the company experienced an increase in applications for advertised vacancies during the crisis.
“There remains a shortage of skilled talent, these bunkered down and became passive participants in the labour market," she said.
As part of a streamlining process and cost review, Western Power in June 2009 removed 110 roles through natural attrition, directly affecting 38 employees.
“The indirect cost review focused on achieving greater efficiency within the business and improving productivity, with the two main aims of reducing Western Power's reliance on contractors and consultants, and reducing the number of roles in some support functions across the business," Ms Chapman said.
Reduced superannuation returns also curtailed the retirement plans of the older cohort of the Health Department workforce, resulting in an increase in hours worked by part-time staff.
There were 1,746 resignations in the year to October and 3,135 new starts.
“The Health Department has had to increase staffing to meet increased health care demands resulting from population increases and an ageing population," a department spokesperson said.
“Compared to other large public sector employers, WA Health faces a complex challenge in modelling its future workforce skills profile."
In contrast, two giants of the mining industry, and possibly the driving forces of WA economic prosperity, Rio Tinto and BHP Billiton, highlighted their exposure to the global financial crisis in January when mass redundancies were rolled-out in WA.
BHP sacked 2,200 jobs in the state as part of a move to reduce its global workforce by 6000, or about 6 per cent.
Also in January, Rio Tinto announced its aluminium division, Rio Tinto Alcan, would reduce its global workforce by 1,100.
That announcement came after the company in December said it would shed 14,000 jobs from its global workforce because of the economic crisis.
A Rio Tinto spokesperson told WA Business News that, although the company was forced to minimise its workforce as part of its "debt-reduction strategy", it still invested heavily in training indigenous workers.
BHP suspended its Ravensthorpe nickel mine in WA because of falling metal prices and also cut production at its Mount Keith nickel mine near Kalgoorlie with the production cuts forcing 3,400 redundancies of contractors and employees in Australia.
The mining giant now has more than 18,000 permanent employees and contractors in its WA operations, covering operations in iron ore, aluminium, and petroleum.
BHP's Sustainability Summary Report 2009 said adjustments were made to business operations due to a decline in short-term demand for some resources.
To manage its remaining workforce, BHP continued to use mostly contractors to drive down costs, while extending parental leave to a global minimum 18 weeks for the primary caregiver.
