Local Government Workforce and Future Skills Report New ...€¦ · Local Government Workforce and...

Local Government Workforce and

Future Skills Report New South Wales

September 2018

Local Government Workforce and Future Skill Needs Report - NSW

LGNSW September 2018

2

Local Government Workforce and Future Skills Report – NSW

LGNSW September 2018 3

Table of Contents Introduction ...................................................................................................................... 4

Map of Responding Councils: New South Wales ......................................................... 5 Executive Summary ......................................................................................................... 5

Recommendations ....................................................................................................... 8 SECTION 1: NSW Local Government Sector Profile ..................................................... 10

Industry Context: ........................................................................................................ 10 Employment Number: ................................................................................................ 11 Employment Distribution: ........................................................................................... 13

Employment Categories: ............................................................................................ 13 Employment Gender Profile: ...................................................................................... 14

Employment Turnover: ............................................................................................... 16

Aboriginal and Torres Strait Islander Participation Levels: ......................................... 17 Culturally and Linguistically Diverse (CALD) Workers: .............................................. 18 People with a Disability: ............................................................................................. 19

Age Profile of the Workforce: ..................................................................................... 19 Average Hours Worked: ............................................................................................. 22 Occupational Profile: .................................................................................................. 23

SECTION 2: Vocational Education and Training (VET) Uptake..................................... 29 Qualification Profile: ................................................................................................... 29

Issues Sourcing Training: ........................................................................................... 31 Apprenticeship/Traineeship Uptake Levels: ............................................................... 33 School Based Apprenticeship and Traineeship Program (SBATs): ........................... 36

SECTION 3: Skill Shortages .......................................................................................... 37

Top Skill Shortage Occupations: ................................................................................ 37 Recruitment Strategies:.............................................................................................. 39

SECTION 4: Unmet Training Needs .............................................................................. 41

Skill Gaps: .................................................................................................................. 41 Unmet Training Needs: .............................................................................................. 42

SECTION 5: Emerging Issues ....................................................................................... 44 Emerging Issues that will impact on Councils’ Future Skilling Needs: ....................... 44 How well positioned are you? .................................................................................... 46 What might hinder staff gaining emerging skills? ....................................................... 49 Future workforce profile: ............................................................................................ 50

Appendix 1 ..................................................................................................................... 52 Acknowledgement: Funding to support the development of this report was provided by the Australian Local Government Association.



Introduction The Local Government Workforce Development Group (LGWDG) comprises representatives

from each state and territory Local Government Association and provides advice on workforce

matters to the Australian Local Government Association. The LGWDG undertook this study to

identify the current and emerging skill needs of local government to better position the sector for

the future.

This research closely aligns to one of the key actions in the NSW Local Government Workforce

Strategy 2016-20201 which guides the work of the sector in mitigating its workforce challenges.

As an industry partner in the NSW Strategy, Local Government NSW (LGNSW) has played an

active role on the LGWDG and in the conduct of this national research.

A major challenge for local government is that it is difficult to determine an accurate national

employment profile. One of the more accessible sources of data comes from the Australian

Bureau of Statistics (ABS) Census of Population and Housing, but this is only available every

five years and whilst it can highlight trends, it does not provide an accurate record of total

employment numbers for the local government sector. It is estimated the Census under-reports

the local government workforce by 19%.2 The tendency of each jurisdiction to collect their own

variable data sets also makes it challenging to aggregate data to achieve an accurate national

profile of the local government workforce.

The absence of a national profile impacts on the ability of the sector to determine current and

future workforce needs and priorities. This is in stark contrast to other industry sectors that have

been able to use national data to effectively attract and retain skilled and talented staff, attract

funding for skills development and advocacy, and address skill shortages.3

It is with this context in mind that the LGWDG commissioned a set of national and jurisdictional

reports which are expected to provide the evidence-base needed to support effective advocacy

in workforce development matters at both a state and national level. This report features the

findings and recommendations for local government in NSW.

In addition to ABS Census data, all national and jurisdictional reports are underpinned by data

from the national Local Government Skills Shortage Survey 2017 (the Survey) to which:

• 45% of councils across Australia; and

• 43% of New South Wales councils responded.

The following map highlights the spread of councils responding to the Survey in New South

Wales. A list of responding councils can be found in Appendix 1.

1 Local Government Workforce Strategy 2016 – 2020, Strategy 1.1 - Collaboratively collect comprehensive data on NSW local government skills shortages, skills gaps, emerging skills and workforce challenges to inform education and training policies, programs and workforce strategies 2 UTS IPPG:CLG (2018) The Local Government Workforce, Trends and Blips on the Radar, p12. As the Census collects data on the “main job held last week”, it does not capture all part-time and casual council workers. In addition, as respondents are asked to nominate “the employer’s business name” related to this main job, the nominated name may not appear as the council name. Employment in council libraries, swimming pools, contracted outdoor services and regional airports is most likely to be under-represented. 3 Profile of the Local Government Workforce, 2014 Report, Australian Centre of Excellence for Local Government



Map of Responding Councils: New South Wales



Executive Summary The world of work in the next two decades will be shaped by technological advances, digital connectivity, globalisation, the ageing population and emerging economic structures. These five mega trends are driving the speed of change and are expected to lead to the restructuring of labour markets throughout Australia, including local government.4 Local government is already feeling the impact of these trends, yet the majority of councils in NSW have done no analysis or forecasting to determine the changing future roles or skills required.5 This report provides a snapshot of the profile of the local government workforce and the key issues in relation to current and emerging skills shortages and skills gaps, and access to and uptake of training in NSW.6 Workforce Profile Local government in NSW features:

• A workforce of 45,570 Full-Time Equivalent (FTE) employees or a headcount of 55,900 (June 2017) employed in 299 different occupations;

• 128 councils ranging in size from 47 to 1,800 FTE employees;

• A workforce where 71% are full-time employees, 13% are part-time and 17% are casual;

• A low average unplanned turnover of 7.2% compared to 8.3% of councils nationally;

• A higher representation of Aboriginal and Torres Strait Islander employees than other sectors of government and the private sector in NSW;

• A much older workforce than the all-industries workforce in NSW, with 54.2% above 45 years of age in local government compared to 40.6% across all-industries;

• An ongoing decline in representation of young employees, with only 13.8% aged under 30 years of age compared to 25.2% across all-industries;

• An increasingly qualified workforce, with 43.9% holding a Diploma or higher-level qualification in 2016 compared to 33.6% in 2006; and

• A significant decline in apprentices and trainees, falling from 5.0% of council FTEs in 2012 to 1.6% in 2017.

4 Hajkowski et al (2016: 18) 5 Local Government Skills Shortage Survey 2017, LGWDG 6 Data is drawn from various Australian Bureau of Statistics surveys, responses from 55 NSW councils to the Local Government Workforce Development Group’s Local Government Skills Shortage Survey 2017 and NCVER reports on apprenticeships and traineeships.



Current and emerging skills shortages and skills gaps

Findings from the Survey reveal:

• 86% of councils in NSW were experiencing a skill shortage and 69% were experiencing skills gaps;

• Engineers, Urban and Town Planners, Building Surveyors, Project Managers and Environmental Health Officers were the top five areas of skills shortage;

• The key reasons for skills shortages are: the inability to compete with the private sector on remuneration, lack of suitably qualified/experienced candidates, regional/remote location, high demand across the labour market, and pressure from key major external projects/developments;

• Shortages in technical and trade occupations represent a critical issue for the future for 10%-20% of councils;

• Whilst 56% of surveyed councils employed cadets and 73% employed apprentices or trainees, more can be done by councils to share resources and “grow their own” with 55% reporting they do not have enough trainees/apprentices to meet their future skill needs;

• 36% of surveyed councils reported unmet training needs. These included leadership and management training, project management, change management, contract management, regulatory services, mental health resilience, property professional training, water/waste water treatment, business process improvement and software training; and

• The greatest challenges in addressing unmet training needs relate to access to training providers locally, difficulty releasing staff, cost and lack of customised training.

Emerging Issues

• 55% of councils have done no analysis or forecasting of changing roles or skills requirements arising from digital disruption and technology changes.

• Factors impacting on future skilling needs of councils are: major infrastructure projects, technological change and digitisation, growth within the local government area, attraction and retention of staff, and the ageing workforce.

• The new skills emerging over the next three years are primarily related to the introduction of new technology such as new software systems, CRM systems, GPS tracking, drone technology and online service provision.

• In the future, councils are predicting a significant increase in the use of part-time employees and volunteers, a moderate increase in full-time employees and casuals, and a decrease in the use of labour hire arrangements.

In response to the above workforce skills issues identified by councils, a series of recommendations are made to improve future local government workforce capacity and capability in NSW.



Recommendations This report identifies some concerning issues for skills attraction, retention and development in local government. To successfully implement the recommendations listed below, LGNSW calls on the NSW Government to provide ongoing funding to enable the association to oversee the reporting and monitoring of workforce trends and issues, and to work with its industry partners to implement initiatives to address these challenges.

Recommendation 1 That the NSW Office of Local Government collects headcount and numbers of full-time, part-time, casual employees and contingent workers in its Annual Comparative Reporting, with definitions aligned to those adopted by the Australian Bureau of Statistics. Recommendation 2 That further analysis of the ABS Census of Population and Housing be undertaken to determine the occupations, age groups and regions experiencing greatest movement to and from local government between 2011-2016. The analysis will inform future attraction and retention strategies for regions, occupations and the sector as a whole. Recommendation 3 That LGNSW request the Local Government Association of South Australia share the outcomes of their Active Ageing Employment Program with councils in NSW. Recommendation 4 That local government peak bodies in NSW engage with Skills Service Organisations and Registered Training Organisations to ensure the needs of the sector are met in the design and delivery of VET qualifications and skills sets. Recommendation 5 That LGNSW continues to work closely with the NSW Department of Industry and its Industry Training Advisory Bodies, to ensure that NSW VET funding programs such as “Smart and Skilled”, support Registered Training Organisations that can deliver relevant, accessible, quality training offered in a variety of modes to meet the needs of councils in all areas of the state. Recommendation 6 That the NSW Government reduce the cost of apprenticeship and traineeship training for regional councils by providing a wage subsidy to employers. Recommendation 7 That the benefits of employing school-based apprentices and trainees in local government are communicated to all stakeholders involved, including schools, training providers, students and elected members and staff in councils. Recommendation 8 That LGNSW is funded to provide council access to a pool of suitably experienced and qualified professionals on a temporary basis to facilitate the completion of required works and to mentor colleagues employed by the council



Recommendation 9 That IPWEA NSW, LGNSW and LGEA work with tertiary and vocational education providers to assist councils’ compliance with the proposed legislative requirements concerning qualified engineers and engineering cadets.

Recommendation 10 That LGNSW and its industry partners continue to work with tertiary education providers and councils to increase and coordinate the placement of students and graduates in local government in all areas of professional skills shortages, particularly engineering, planning, building surveying, environmental health, accounting and information technology. Recommendation 11 That LGNSW builds upon the national Local Government Careers website to provide comprehensive online information about career opportunities, pathways into occupations experiencing skills shortages and job vacancies in all councils in NSW. Recommendation 12 That LGNSW investigate funding opportunities for cross-collaboration and promotion of various models and innovative council practices which facilitate the exchange of skills and experience in local government. Recommendation 13 That LGNSW, Joint Organisations and ROCs work together to establish mechanisms through which regional and state-wide training needs are identified and addressed. Recommendation 14 That LGNSW establish a Skills Advisory Committee of ICT professionals to identify training needs, coordinate delivery and source funding for councils, where feasible. Recommendation 15 That ALGA commission research on behalf of the sector, identifying the impact of technology and other drivers of change on current job roles and emerging skills required in local government.



SECTION 1: NSW Local Government Sector Profile

Industry Context:

Local Government in New South Wales:

• Is a significant sector of the NSW economy, spending $10.87 billion in 2016-17;7

• Maintains and upgrades infrastructure and land assets worth $136 billion;

• Employs 45,5708 Full Time Equivalent (FTE) staff or a headcount of 55,7009 employees and is a key driver of employment in regional and remote areas;

• Is comprised of 128 general purpose councils following a merger process in 2016 – 2017 which reduced council numbers from 152;

• Has a workforce spatially distributed across the state, with 42% employed in

urban councils, 41% in regional councils and 17% in rural councils;10

• Ranges in size from the smallest councils with 47 FTE employees up to the largest with 1,800 FTE employees; and

• Has staff in smaller councils who are required to be multi-skilled and perform a range of functions for councils to meet their statutory obligations.

Councils and notably those in rural and remote areas of the State are the epicentre of communities, providing the infrastructure and services to sustain their communities. They are commonly the major employer, generating a pipeline of employment for many occupations.

Councils also are responsible for providing a wide range of infrastructure and community services to residents and visitors which are managed through direct employment and contracting arrangements. These include but are not limited to the administration, management, maintenance and/or development of:

• Infrastructure and property including local roads, bridges, footpaths, drainage, waste collection;

• Recreation facilities such as parks, sport fields and stadiums, golf courses, swimming pools, sport centres, halls, camping grounds and caravan parks;

• Health services such as water and food inspection, immunization services, toilet facilities, noise control, meat inspection and animal control;

• Community services such as child care aged care and accommodation, community care and welfare services;

• Building services including inspections, licensing, certification and enforcement;

• Planning and development approval;

• Facilities administration such as airports and aerodromes, ports and marinas, cemeteries, parking facilities and street parking;

7 ABS Government Finance Statistics 2016-17, Catalogue 5512.0 8 Based on ABS Census Customised Report Data, 2016 9 ABS 2017, Employment and Earnings, Public Sector, Catalogue 6248.0.55.002 10 UTS IPPG:CLG (2018) The Local Government Workforce, Trends and Blips on the Radar, p16.



• Cultural facilities and services such as libraries, art galleries and museums; and

• Water and sewerage services.

The scope of activities provided by councils in NSW encompasses 299 occupations.11

Employment Number:

According to the ABS Survey of Employment and Earnings,12 employment (headcount) in NSW local government was 55,900 in 2016-17. This represents an increase of 2.95% since 2015-16, following a five-year period of employment decline since 2010-11. Uncertainty during this period over council amalgamations is likely to have impacted on workforce numbers, particularly in councils affected by mergers.

Source: ABS 2017, Employment and Earnings, Public Sector, Catalogue 6248.0.55.002

Data obtained from the NSW Office of Local Government (OLG)13 shows the sector in NSW employed 45,570 Full Time Equivalent (FTE) staff at 30 June 2017. This represents an increase of 1.74% or 782 FTE positions over the previous 12 months, affirming the recent upward trend in council employment reported in the ABS data. The NSW Office of Local Government requires councils to report their FTE employment rather than employment by headcount or by type (full-time, part-time, casual). Given the changing profile of the workforce (see Section 5), it would be of benefit for the sector to track changes in the nature of employment over time and to have an accurate basis to compare employment data with the ABS and other jurisdictions.

11 Based on ABS Census Customised Report Data, 2016 12 ABS 2017, Employment and Earnings, Public Sector, Catalogue 6248.0.55.002 13 NSW Office of Local Government Time Series Data 2016-17 - https://www.olg.nsw.gov.au/public/my-local-council/yourcouncil-website

https://www.olg.nsw.gov.au/public/my-local-council/yourcouncil-website




Recommendation 1 That the NSW Office of Local Government collects headcount and numbers of full-time, part-time, casual employees and contingent workers in its Annual Comparative Reporting, with definitions aligned to those adopted by the Australian Bureau of Statistics.

Data from the Survey indicates that growth in overall workforce numbers was expected to continue into 2018 with 93% of NSW councils surveyed indicating that workforce numbers will either increase or stay the same in 2018.14

Source: Local Government Skills Shortage Survey 2017, LGWDG

14 Local Government Skills Shortage Survey 2017, LGWDG



Employment Distribution:

Councils vary considerably in size from the smallest (rural council) with 47 FTE employees to the largest (metropolitan fringe) employing just over 1,800 FTE employees.15

Source: v Skills Shortage Survey 2017, LGWDG

Employment Categories: To analyse the demographic characteristics of the local government workforce, the ABS Census of Population and Housing provides the most comprehensive information, even though it is estimated to under-represent the true employment by 19%. According to the 2016 Census, the NSW local government workforce was 47,487 as at August 2016.16 ABS Census data indicates the NSW local government workforce at June 2016 was comprised of:

• 75.6% full-time employees

• 19.6% part-time employees

• 4.8% who were not at work during the census week17 Data sourced directly from 43% of councils in 2017 reveals a slightly different profile:

• 70.6% full-time employees

• 12.5% part-time employees

• 16.9% casual employees Within the Australian Classification of Local Government (ACLG), 22 classes of councils are defined. These have been grouped into three key segments for comparative purposes in this report:

15 NSW Office of Local Government Time Series Data 2016-17 - https://www.olg.nsw.gov.au/public/my-local-council/yourcouncil-website 16 Based on ABS Census Customised Report Data, 2016 17 Based on ABS Census Customised Report Data, 2016





• Rural Agricultural and Rural Remote (ACLG codes RAL, RAM, RAS, RAV, RSG, RTL, RTM, RTS, RTX)

• Urban and Urban Fringe (ACLG codes UCC, UDL, UDM, UDS, UDV, UFL, UFM, UFS, UFV)

• Urban Regional (ACLG codes URL URM, URS, URV) Appendix 1 provides a breakdown of NSW responding councils within each key segment. When analysed by key segments, some minor variations in employment type emerge. As shown below, the Urban & Urban Fringe segment employs a higher percentage of casual workers.18


Employment Gender Profile: ABS data shows that the gender profile of the NSW local government workforce has changed slightly over the last decade, with more females in 2016 than in 2006.

• 2006: 61.4% males and 38.6% females

• 2016: 58.7% males and 41.3% females

Despite this increase, local government still employed a lower percentage of women in 2016 compared to other government sectors in NSW (Commonwealth - 49.9%; State Government - 63.7%) and the private sector - 45.7%.19 Significant variation occurs in the percentage of males/females employed in full-time, part-time and casual work. Males are most likely to work full-time and to a much lesser extent, casually, whilst women dominate the part-time and casual workforce.20

18 Local Government Skills Shortage Survey 2017, LGWDG 19 Based on ABS Census Customised Report Data, 2016 20 Local Government Skills Shortage Survey 2017, LGWDG




When reviewed by segment, male full-time employment is even more pronounced in Rural & Rural Remote councils and Urban Regional councils, whilst female full-time employment is strongest in Urban councils.




Employment Turnover:

The average unplanned turnover in NSW councils (excluding casual, limited tenure, redundant and retiring employees) at June 30, 2017 was 7.2% compared to 8.3% for councils across Australia.21 The range of turnover for New South Wales councils is quite small compared to the range for councils across Australia as seen below:

• Range NSW: 0.6% to 15.6%

• Range Australia: 0.0% to 78.6%






Analysed by segment, councils classified as Urban and Urban Fringe had the highest turnovers of staff and Urban Regional, the lowest. Whilst low turnover may not necessarily be desirable for councils seeking to alter their workforce profile through the recruitment of new employees, further analysis of the characteristics of the labour market exiting local government would be valuable to determine the occupations, age groups and regions where staff turnover is highest and therefore costly for councils.

Recommendation 2 That further analysis of the ABS Census of Population and Housing be undertaken to determine the occupations, age groups and regions experiencing greatest movement to and from local government between 2011-2016. The analysis will inform future attraction and retention strategies for regions, occupations and the sector as a whole.

Aboriginal and Torres Strait Islander Participation Levels:

Councils in NSW were asked to report on the level of Aboriginal and Torres Strait Islander participation within their workforce. Establishing an accurate picture of participation levels is difficult because identification is voluntary.

52.5% of NSW councils who responded to the Survey reported employing Aboriginal and Torres Strait Islander persons. These councils reported employing 406 persons who have identified as Aboriginal and Torres Strait Islander or 2.1% of their workforce. ABS Census data from 2016 shows that within the NSW local government sector, Aboriginal and Torres Strait Islander people made up 0.69% of the working population aged 15 and over.22 This is much lower than the national local government employment figure of 4.1% in 2016.23

Source: Based on ABS Census Customised Report Data, 2006, 2011, 2016

Local Government in NSW has the greatest level of Aboriginal and Torres Strait Islander worker participation than other levels of government and the private sector. At 0.69% it is more than double the state average participation level.

22 Based on ABS Census Customised Report Data, 2016 23 UTS IPPG:CLG (2018) The Local Government Workforce, Trends and Blips on the Radar, p24.



Source: Based on ABS Census Customised Report Data, 2016

Aboriginal and Torres Strait Islander people have a much younger age profile than the non-indigenous population. In 2016, more than half (53%) of Aboriginal and Torres Strait Islander people in NSW were under 25 years old. In comparison, almost one in three (31%) non-indigenous people were aged under 25. For the local government sector with an ageing workforce, increasing the intake of young indigenous workers offers significant benefits for the council, community and young people concerned.

Culturally and Linguistically Diverse (CALD) Workers:

The following chart shows increasing representation of persons employed in NSW local government who speak a Language other than English at home.


38% of NSW councils who responded to the Survey reported employing 869 persons identified as CALD. They represented 7.5% of their workforce.



People with a Disability:

The chart below shows the participation level of persons aged 15 and over who have need of assistance with core activities within the NSW local government sector.


50.9% of New South Wales councils who responded to the Survey reported employing persons with a disability. These councils employed 237 persons who have identified as disabled, equating to 1.2% of their workforce.

The discrepancy between the ABS Census and the Survey data can be partly explained by differences in the questions asked, with the ABS criteria of having “need of assistance with core activities”, unlikely to capture those with less severe disabilities.

Age Profile of the Workforce: The local government workforce in NSW is older than the all-industry average. In 2016, 54.2% of the NSW local government workforce was over the age of 45 compared to 40.6% of the total NSW workforce.24 Conversely, only 13.8% of council employees were under the age of 30, compared to 25.2% of all-industry employees. The following chart shows the age profile of the NSW local government sector over the last 10 years.

24 Based on ABS Census Customised Report Data, 2016




The following trends are illustrated over the last decade (2006 – 2016):

• A continuing decline in the representation of young people (15-19, 20-24 and 25-29 years) in local government in NSW.

• Employees in the 50-54 age bracket now represent the highest proportion of the workforce, followed by those aged 55-59.

In August 2016, employees over 65 years of age represented:

• 3.7% of all employees in NSW local government

• 4.6% of all employees across the Australian local government sector

• 4.3% of employees in all-industries across NSW

• 4.2% of employees in all-industries across Australia

The lower proportion of NSW council workers over 65 compared to other industries suggests that the NSW local government workforce is retiring, or moving to other employment, at a slightly younger age than the Australian workforce. This suggests the need for early succession planning to minimise the impact of rapid exits from the workforce. The following chart shows the age profile of the Indoor (Professional and Administrative) and Outdoor (Operational & Trade) local government workforce where 55.6% of the outdoor workforce is now over 45 years of age.25





Outdoor employees are predominately male, working full-time in physically

demanding jobs, with lower levels of education. Transitioning older workers to other roles if they are physically unable to continue their traditional work can be a challenge for council management. Councils need to be adept at workforce planning and organisational and job design to maximise and accommodate the skills and capabilities of large numbers of older workers.

The Local Government Association of South Australia is conducting a pilot program

called the Active Ageing Employment Program to assist councils to develop and implement strategies to manage an ageing workforce. This program also provides clear advice to staff about options available to them around transitioning to retirement.

Recommendation 3 That LGNSW request the Local Government Association of South Australia share the outcomes of their Active Ageing Employment Program with councils in NSW.



The following chart shows the age profile for the three key segments in NSW.


The Rural & Rural Remote segment is most impacted by an ageing workforce, particularly those aged 55 years and older. Urban and Urban Fringe councils have a higher representation of those aged under 45.

Average Hours Worked:

The proportion of Australians aged 65 years and over has been steadily increasing over the last decade, from 8% in 2006 to 13% in 2016.26 This trend is expected to continue.

A way for the government to address the costs associated with this ageing demographic is to increase the age at which people become eligible for the Age Pension – effectively extending their working life. From July 2017, the Age Pension age is 65, from then it rises in stages up to 67 in July 2023. If current Government proposals are accepted, the Age Pension age will be 70 by 2035. This applies to both men and women. Due to this shift in the Pension Age, Australians are increasingly forced into working to older ages. The chart below shows the average hours worked per week by age group in the local government sector in NSW.27 This includes full-time, part-time and casual employees.

26 Based on ABS Census Customised Report Data, 2016 27 Based on ABS Census Customised Report Data, 2016




The average hours worked per week are very consistent over the past 10 years for most age brackets. The exception is the above 65 years of age group where the trend is towards increasing hours worked. The implications of managing a larger older workforce are complex and present opportunities and challenges to councils. Councils will need to:

• capitalise on the knowledge, skills and experience of older workers;

• manage the transfer of knowledge of older workers before they retire; and

• help older employees embrace new skills and new ways of working.

Occupational Profile:

There are approximately 300 different occupations employed across NSW local government,28 representing 63% of all occupations in Australia. Occupations in demand by local government change over time as can be seen in the following table. Major shifts in employment numbers between 2006 and 2016 have been highlighted. The occupations where numbers have declined significantly are:

• Mobile Plant Operators (-313)

• Personal Assistants and Secretaries (-174)

• Road and Rail Drivers (-163)

• Managers (-73)

The occupations where numbers have increased significantly are predominately professional, specialist managerial roles or technicians working in the digital and telecommunications areas of council:

• Specialist Managers (+1,328)

• Design, Engineering, Science and Transport Professionals (+1,288)

• Electrotechnology and Telecommunications Trades Workers (+994)

28 Based on ABS Census Customised Report Data, 2006, 2016



• Business, Human Resource and Marketing Professionals (+627)

• Inquiry Clerks and Receptionists (+577)

• Engineering, ICT and Science Technicians (+444)

• Sports and Personal Service Workers (+427)

• Office Managers and Program Administrators (+379)

• Numerical Clerks (+329)

• General Clerical Workers (+265)

• Hospitality, Retail and Service Managers (+212)

• ICT Professionals (+206)

Occupation (ANZSCO 2006) 2006 2016 Change

10 Managers, nfd 238 165 -30.7%

11 Chief Executives, General Managers and Legislators 414 520 25.6%

12 Farmers and Farm Managers 6 16 166.7%

13 Specialist Managers 2,032 3360 65.4%

14 Hospitality, Retail and Service Managers 818 1030 25.9%

20 Professionals, nfd 92 89 -3.3%

21 Arts and Media Professionals 39 57 46.2%

22 Business, Human Resource and Marketing Professionals 2,548 3175 24.6%

23 Design, Engineering, Science and Transport Professionals 3,248 4536 39.7%

24 Education Professionals 321 383 19.3%

25 Health Professionals 705 708 0.4%

26 ICT Professionals 355 561 58.0%

27 Legal, Social and Welfare Professionals 332 412 24.1%

30 Technicians and Trades Workers, nfd 134 109 -18.7%

31 Engineering, ICT and Science Technicians 1,591 2035 27.9%

32 Automotive and Engineering Trades Workers 942 893 -5.2%

33 Construction Trades Workers 696 641 -7.9%

34 Electrotechnology and Telecommunications Trades Workers 191 1185 520.4%

35 Food Trades Workers 99 91 -8.1%

36 Skilled Animal and Horticultural Workers 1,305 1521 16.6%

39 Other Technicians and Trades Workers 477 605 26.8%

40 Community and Personal Service Workers, nfd 17 5 -70.6%

41 Health and Welfare Support Workers 813 753 -7.4%

42 Carers and Aides 1,349 1498 11.0%

43 Hospitality Workers 48 46 -4.2%

44 Protective Service Workers 65 60 -7.7%

45 Sports and Personal Service Workers 838 1265 51.0%

50 Clerical and Administrative Workers, nfd 29 26 -10.3%

51 Office Managers and Program Administrators 988 1367 38.4%

52 Personal Assistants and Secretaries 895 721 -19.4%

53 General Clerical Workers 2,012 2277 13.2%

54 Inquiry Clerks and Receptionists 1,384 1961 41.7%

55 Numerical Clerks 887 1216 37.1%

56 Clerical and Office Support Workers 668 620 -7.2%

59 Other Clerical and Administrative Workers 2,129 2576 21.0%

60 Sales Workers, nfd 3 4 33.3%

61 Sales Representatives and Agents 94 62 -34.0%

62 Sales Assistants and Salespersons 96 76 -20.8%

63 Sales Support Workers 87 82 -5.7%



70 Machinery Operators and Drivers, nfd 160 306 91.3%

71 Machine and Stationary Plant Operators 769 853 10.9%

72 Mobile Plant Operators 1,982 1669 -15.8%

73 Road and Rail Drivers 1,835 1672 -8.9%

74 Storepersons 198 195 -1.5%

80 Labourers, nfd 938 920 -1.9%

81 Cleaners and Laundry Workers 961 915 -4.8%

82 Construction and Mining Labourers 1,644 1577 -4.1%

83 Factory Process Workers 57 90 57.9%

84 Farm, Forestry and Garden Workers 1,005 1018 1.3%

85 Food Preparation Assistants 44 25 -43.2%

89 Other Labourers 827 797 -3.6%

09 Inadequately described 537 692 28.9%

&& Not stated 44 60 36.4%

Total 39,973 47487 18.8% Source: Based on ABS Census Customised Report Data, 2006, 2016

The chart on the following page shows the gender profile of each occupation in the NSW local government sector. It is clear that certain occupations have a gender bias. For example, women have greater representation in occupations such as:

• Office Managers and Program Administrators

• Personal Assistants and Secretaries

• General Clerical Workers

• Inquiry Clerks and Receptionists

• Numerical Clerks

• Clerical and Office Support Workers

• Other Clerical and Administrative Workers Men have greater representation in occupations such as:

• Specialist Managers

• Design, Engineering, Science and Transport Professionals

• Engineering, ICT and Science Technicians

• Automotive and Engineering Trades Workers

• Construction Trades Workers

• Electrotechnology and Telecommunications Trades Workers29




There are a number of occupations where women have increased their level of representation over the 10 years to 2016. Of note is the significant increase in females in leadership, specialist management and design, engineering, science professional roles. These occupations are listed below together with the increase in number of females:

• Design, Engineering, Science and Transport Professionals (666)

• Specialist Managers (526)

• Numerical Clerks (337)

• Sports and Personal Service Workers (254)

• Hospitality, Retail and Service Managers (194)

• Chief Executives, General Managers and Legislators (82)30

Occupation (ANZSCO) 2006 2016 %

Difference

10 Managers, nfd 48 42 -13%

11 Chief Executives, General Managers and Legislators 119 201 69%

12 Farmers and Farm Managers 0 8 -

13 Specialist Managers 702 1228 75%

14 Hospitality, Retail and Service Managers 285 479 68%

20 Professionals, nfd 56 60 7%

21 Arts and Media Professionals 18 30 67%

22 Business, Human Resource and Marketing Professionals 1,728 2247 30%

23 Design, Engineering, Science and Transport Professionals 950 1616 70%

24 Education Professionals 285 340 19%

25 Health Professionals 275 359 31%

26 ICT Professionals 95 134 41%

27 Legal, Social and Welfare Professionals 207 268 29%

30 Technicians and Trades Workers, nfd 7 6 -14%

31 Engineering, ICT and Science Technicians 215 311 45%

32 Automotive and Engineering Trades Workers 3 6 100%

33 Construction Trades Workers 13 7 -46%

34 Electrotechnology and Telecommunications Trades Workers 12 15 25%

35 Food Trades Workers 91 77 -15%

36 Skilled Animal and Horticultural Workers 125 163 30%

39 Other Technicians and Trades Workers 335 388 16%

40 Community and Personal Service Workers, nfd 12 3 -75%

41 Health and Welfare Support Workers 620 579 -7%

42 Carers and Aides 1,281 1418 11%

43 Hospitality Workers 41 28 -32%

44 Protective Service Workers 0 16 1600%

45 Sports and Personal Service Workers 473 727 54%

50 Clerical and Administrative Workers, nfd 18 15 -17%

51 Office Managers and Program Administrators 659 859 30%

52 Personal Assistants and Secretaries 879 710 -19%

53 General Clerical Workers 1,661 1965 18%

54 Inquiry Clerks and Receptionists 1,174 1667 42%

55 Numerical Clerks 667 1004 51%

56 Clerical and Office Support Workers 446 402 -10%

30 Based on ABS Census Customised Report Data, 2006, 2016



59 Other Clerical and Administrative Workers 1,050 1261 20%

60 Sales Workers, nfd 0 4 400%

61 Sales Representatives and Agents 39 35 -10%

62 Sales Assistants and Salespersons 44 42 -5%

63 Sales Support Workers 71 72 1%

70 Machinery Operators and Drivers, nfd 3 5 67%

71 Machine and Stationary Plant Operators 18 25 39%

72 Mobile Plant Operators 15 27 80%

73 Road and Rail Drivers 28 34 21%

74 Storepersons 10 11 10%

80 Labourers, nfd 29 40 38%

81 Cleaners and Laundry Workers 300 254 -15%

82 Construction and Mining Labourers 13 21 62%

83 Factory Process Workers 4 14 250%

84 Farm, Forestry and Garden Workers 104 105 1%

85 Food Preparation Assistants 30 19 -37%

89 Other Labourers 70 84 20% Source: Based on ABS Census Customised Report Data, 2006, 2016



SECTION 2: Vocational Education and Training (VET) Uptake

Qualification Profile:

In 2016, 44.7% of employees in the Australian local government workforce held a Diploma or higher-level qualification which was above the average (41.3%) for all-industry within Australia.31 In 2006, 31.2% of council employees and 31.0% of all-industry employees held a Diploma or higher qualification. On average, such growth in qualification attainment over the last decade is slightly higher in local government than other industries.


Between 2006 and 2016 there was a significant growth in the percentage of NSW local government employees holding post-school qualifications, as shown in the following chart.

Source: Based on ABS 2018, Customised Report Data




In 2016, 28.9% of NSW local government employees held one or more university degree qualifications, slightly lower than the 30.2% national average for all employed persons aged over 15. However, 43.9% held a Diploma or a higher-level qualification in 2016 (up from 33.6% in 2006) compared to 41.3% nationally. The full breakdown of qualifications held by local government employees in NSW is listed below.


Analysis of qualifications held by males and females reveals that:

• More females than males hold tertiary qualifications

• Twice as many males than females hold no qualifications

• Almost three times as many males than females hold Certificate III and IV level qualifications




The chart below lists the percentage of each age group within NSW local government that hold qualifications. It shows that the level of qualification peaks at around the 35-39 age bracket and then declines. To ensure the workforce has the skills required to effectively perform their roles and to adapt to new service demands, ongoing access to qualifications (where qualifications are appropriate) is essential for a productive and innovative local government sector.


Issues Sourcing Training:

In the Survey, councils were asked to outline the key challenges faced when sourcing and delivering VET to their workforce. The main concerns of NSW councils are listed in the following table.

Key Challenges in Sourcing Training % NSW

councils

Finding quality trainers to deliver locally 61.2%

Cost of sending staff away to attend training (travel cost) is too high 53.1%

Course cost too high 51.0%

Lack of time for staff to attend training 49.0%

Sourcing courses with relevant content 46.9%

Lack of support from managers/supervisors to send staff on training courses 18.4%

Sourcing information about what is available 14.3%


These key challenges are inter-related. Councils are required to outlay considerably more on travel costs for trainers or sending staff away to training because quality trainers are not available locally. With 65.5% of NSW councils running below full staff complement32, sending staff away to training is often met with reluctance from managers and supervisors.




Whilst you would expect Finding quality trainers to deliver courses locally would be a key issue for Rural & Rural Remote councils (it was raised by 78% of respondent councils), it was surprisingly cited by 61% of Urban Regional councils.


51% of councils are reporting that the actual cost of courses is too high. Urban and Urban Fringe councils listed this and sourcing courses with relevant content as their top two key challenges. Other challenges mentioned were:

• We require training developed and targeted to our needs;

• Courses and providers not covered by Smart and Skilled Funding;

• Lack of providers who can work with us on work-based approaches;

• Reliance on face to face learning with compliance training; and

• Finding training providers with specific technical skills needed. 46.9% of NSW councils and 45.5% of councils across Australia are saying that Sourcing courses with relevant content is an issue. This is a cause for concern and suggests that:

• The process for designing and reviewing national qualifications is not recognising the sector as an end user of the product. Local Government qualifications make up only a small percentage of the qualifications accessed by councils and it is unlikely that councils are invited to comment on the wide breadth of qualifications utilized by the sector. The capacity of councils to do so is also limited, particularly given the narrow consultation mechanisms, tight timeframes and restricted funding associated with managing training packages.

• Registered Training Organisations (RTOs) may not be customising the training to a local government context.

• Online training is not widely available or tailored to the needs of local government



Recommendation 4 That local government peak bodies in NSW engage with Skills Service Organisations and Registered Training Organisations to ensure the needs of the sector are met in the design and delivery of VET qualifications and skills sets.

Recommendation 5 That LGNSW continues to work closely with the NSW Department of Industry and its Industry Training Advisory Bodies, to ensure that NSW VET funding programs such as “Smart and Skilled”, support Registered Training Organisations that can deliver relevant, accessible, quality training offered in a variety of modes to meet the needs of councils in all areas of the state.

Apprenticeship/Traineeship Uptake Levels: 2017 Apprenticeship and Traineeship data indicates that 58 qualifications from 15 training packages were accessed by councils in NSW. This huge diversity in training reflects the scope of work and range of skills required by local government in NSW. The table below shows the Training Packages that apprenticeships and traineeships are being drawn from across the sector in NSW.33 As the data does not include council employees hosted by Group Training Organisations, the numbers undertaking trades and non-trades qualifications are under-counted.

Training Package Trades Non-

Trades Total

RII - Resources and Infrastructure 25 105 130

CHC - Community Services 0 125 125

AHC - Agriculture, Horticulture and Conservation and Land Management 100 20 120

BSB - Business Services 0 85 85

LGA - Local Government 0 60 60

AUR - Automotive Industry Retail, Service and Repair 55 0 55

NWP - National Water 0 40 40

CPC - Construction, Plumbing & Services Integrated Framework 30 0 30

MEM - Metal and Engineering 20 0 20

UEE - Electrotechnology 20 0 20

FNS - Financial Services - 15 15

ICP - Printing and Graphic Arts 10 - 10

CPP - Property Services 0 5 5

SIS - Sport, Fitness and Recreation 0 5 5

SIT - Tourism, Travel and Hospitality 0 5 5

Source: Based on NCVER Customised Report Data, 2018

According to the Survey, 73% of responding councils in NSW were employing trainees/apprentices (as of June 2017). However, between 2012 and 2017 apprenticeship and traineeship numbers significantly declined. 34

33 NCVER 2018, Australian vocational education and training statistics: apprentices and trainees - September 2017 estimates, NCVER, Adelaide. 34 Local Government Skills Shortage Survey 2017, LGWDG



• Apprenticeship numbers decreased by 64.0% compared to a fall of 12.7% in trades across all-industries in NSW

• Traineeship numbers decreased by 68.3% compared to 70.8% across all-industries in NSW

In July 2017, there were 735 local government employees “in training” under Apprenticeship/Traineeship arrangements across councils in New South Wales compared to 2,215 in 2012.35 This does not include apprentices and trainees hosted by councils under Group Training Arrangements.


In 2012, trainees and apprentices were 5.0% of the NSW local government FTE workforce. In 2017, this figure had decreased significantly to 1.6%. In 2017, apprentices/trades made up just 0.6% of the FTE Workforce.

Source: Based on ABS Census Customised Report Data, 2012-17 and NCVER Customised Report Data, 2012-17

35 NCVER 2018, Australian vocational education and training statistics: apprentices and trainees - September 2017 estimates



54.5% percent of councils surveyed in 201736 indicated they did not have enough trainees/apprentices to meet their future skill needs. These respondents listed the following key factors constraining the employment of additional trainees/apprentices:

• Lack of Funding o Budgetary Constraints o Restricted funding for new positions o No positions until someone leaves o No funding from Commonwealth to support this (Norfolk Island)

• Lack the internal capacity (supervisors) to support trainees and apprentices o Workload restraints

• Lack of clear workforce strategy in relation to trainees/apprentices o As a merged entity we are still developing our Workforce Strategy and

Traineeship programs

• Not our focus at the moment with the amalgamation

• Perceived need to fill vacancies with skilled workers

• Shortage of quality applicants

• Lack of access to information about the process/requirements

• Current structure and lack of succession planning

Some councils have indicated they are establishing programs to increase the number of trainees and apprentices. Below are some of their comments:

• We have a dedicated program in place to increase these roles – but it takes time to develop a business case and to “sell” the benefits to recruiting managers

• A structured targeted selection program is being designed

• Currently changing our process to manage 100% internally

In the May 2018 Budget, the NSW Government announced that from 1 July 2018, new apprenticeships would be fee-free, effectively saving students around $2,000 for their training. Whilst this represents a cost savings to those employers who pay these fees on behalf of their apprentices, it may not be sufficient to incentivise employers to recruit more apprentices. In states such as Queensland and South Australia, the Government has provided wage subsidies to assist councils with the cost of employing apprentices and trainees. Such a scheme would help councils, particularly in regional NSW, to benefit from the employment of young apprentices and trainees.

Recommendation 6 That the NSW Government reduce the cost of apprenticeship and traineeship training for regional councils by providing a wage subsidy to employers.




School Based Apprenticeship and Traineeship Program (SBATs):

The adoption of SBATs across NSW local government has been historically very low. The table below shows the uptake fluctuating with a slight increase between 2016 and 2017, up to a high of 65 students in 2017. The majority (60) of these are in Traineeships.

In Training

2012 2013 2014 2015 2016 2017

School Based Apprentices and Trainees (SBATs)

50 50 45 40 50 65


Given the enormous scope of occupations encompassed by the local government sector, it is ideally placed to support SBATs as a way of “growing your own” staff locally and providing a pipeline of employment for young people in the community. SBATs should also be considered as a key recruitment strategy to counter the rapidly ageing local government workforce.

Recommendation 7 That the benefits of employing school-based apprentices and trainees in local government are communicated to all stakeholders involved, including schools, training providers, students and elected members and staff in councils.



SECTION 3: Skill Shortages

Top Skill Shortage Occupations:

85.5% of councils who responded to the Survey in NSW are currently experiencing a skill shortage. Councils were asked to list their top five skill shortage areas. In two out of the three segments, engineers were listed as the top skill shortage occupation. The table below shows how skill shortages vary across the Segments.37

Segments Top Skill Shortage Occupations

1 2 3

Rural & Rural Remote

Engineers Supervisors/Team Leaders Plant Operators

Urban & Urban Fringe

Town Planners Engineers Building Surveyors/Certifiers

Urban Regional Engineers Town Planners Building Surveyors/Certifiers


Councils were also asked to consider a list of key Professional and Technical/Trade occupations and to indicate against each if they were experiencing a current shortage, and given this shortage, if they were forced to recruit less skilled applicants. Thirdly, councils were asked to indicate if this skill shortage occupation would be a critical issue in the future.

The top 10 professional skill shortage occupations listed by councils are:

Rank Professional Occupations Percentage of Councils

Current Shortage

Forced to Recruit Less Skilled

Applicants

Critical Future Issue

1 Engineers 52.7% 25.5% 45.5%

2 Urban & Town Planners 41.8% 25.5% 40.0%

3 Building Surveyors 38.2% 20.0% 38.2%

4 Project Managers 21.8% 18.2% 21.8%

5 Environmental Health Officer 21.8% 12.7% 23.6%

6 Building Surveying Technicians 18.2% 10.9% 16.4%

7 Engineering Technicians 16.4% 10.9% 12.7%

8 Asset & Facilities Managers 16.4% 3.6% 10.9%

9 Human Resource Professionals 14.5% 5.5% 16.4%

10 Contract Managers/Officers 12.7% 9.1% 12.7%




Shortages in technical and trade occupations were not as commonly reported as those in the professional areas, however they still represent a critical issue for the future for 10% - 20% of councils. The top 10 technical and trade occupations experiencing skills shortages are:

Rank Technical & Trade Occupations Percentage of Councils

Current Shortage

Forced to Recruit Less Skilled Applicants

Critical Future Issue

1 Supervisor/Team Leader 14.5% 14.5% 16.4%

2 IT/ICT Technicians 14.5% 9.1% 7.3%

3 Labourers 12.7% 7.3% 10.9%

4 Trades - Construction 12.7% 5.5% 9.1%

5 Trades - Plumber 12.7% 1.8% 7.3%

6 Trades - Automotive 10.9% 3.6% 10.9%

7 Trades - Electrical 10.9% 1.8% 12.7%

8 Waste Water/Sewerage Operators 10.9% 5.5% 10.9%

9 Trades - Mechanical 9.1% 1.8% 12.7%

10 Accounts/Pay Roll Clerk 9.1% 3.6% 20.0%


The survey also revealed some new and specialist areas of skills shortage in NSW, they are:

• Team Leader Content & Discovery

• Heritage Officers

• Architectural Designers

• Digital Archivists

• Change Management Specialists

• Fire Service/Building Fire Inspection

• Procurement Manager

• Web Design & Marketing

• Economic Initiatives Co-ordinator

• Media/Communications Officer

Councils in NSW expect that shortages will increase beyond 2017 levels in the next 18 months in the following key areas:

• Environmental Health Officers

• Supervisors/Team Leaders

• Trades – Electrical

• Trades – Mechanical

• Accounts/Pay Roll Clerks

The key drivers/reasons behind the current skill shortages in order of importance are:

• Inability to compete with the private sector on remuneration

• Lack of suitably qualified/experienced candidates

• Location – regional/remote locations

• High demand across the labour market

• Pressure from key major external projects/developments

• High turnover

• Unable to attract professionals to work in local government



Councils in NSW are currently under significant pressure to meet their legislative and community responsibilities, particularly in areas related to planning and infrastructure development. The capacity of councils to access a pool of suitably skilled professionals for short and medium-term projects has obvious benefits for local government, the community and the professionals involved who bring and gain broad experience from their placements.

Recommendation 8: That LGNSW is funded to provide council access to a pool of suitably experienced and qualified professionals on a temporary basis to facilitate the completion of required works and to mentor colleagues employed by the council.

The Institute of Public Works Engineering (NSW Division) (IPWEA) has responded to councils’ concern about the acute shortage of engineers by proposing state legislation which will require all councils to have a suitably qualified engineer and support engineering cadetships across all Government projects. LGNSW is working with IPWEA NSW on the implementation of this initiative which will see an increase in the number of engineering cadets working in local government. Councils and education providers will need to be guided and supported during this transition phase.

Recommendation 9: That IPWEA NSW, LGNSW and LGEA work with tertiary and vocational education providers to assist councils’ compliance with the proposed legislative requirements concerning qualified engineers and engineering cadets.

Recruitment Strategies:

To fill vacancies in the top five skill shortage occupations, NSW councils have attempted to recruit from:

• Within the local area – 98% of councils

• State Wide – 100% of councils

• Interstate – 88% of councils

• Internationally – 20% of councils

On average it is taking just over two months for councils to fill vacancies in both Professional and Skilled/Technical positions. The range across responding councils was 1 – 4 months.

To help combat skill shortages, a small number (9.1%) of councils are employing staff (total of 19 staff) on 457 visas to fill vacancies in the following fields:

• Urban/Town Planning

• Media

56% of New South Wales councils who responded to the Survey are using cadetships (or ‘growing their own’) to combat skills shortages. These 31 councils employ a total of 146 cadets in the following occupations:



Number of Councils Employing Cadets

(from 31 responses)

Occupational Area

27 Engineering

16 Town/Statutory Planning

4 Building Certifying

4 Building & Construction

3 Environmental Health

3 Library Services

2 Asset & Property Management

2 Accounting/finance

2 Information Technology

2 Community Services

1 GIS

1 Human Resource Management

1 Legal Services


Recommendation 10 That LGNSW and its industry partners continue to work with tertiary education providers and councils to increase and coordinate the placement of students and graduates in local government in all areas of professional skills shortages, particularly engineering, planning, building surveying, environmental health, accounting and information technology.

Recommendation 11 That LGNSW builds upon the national Local Government Careers website to provide comprehensive online information about career opportunities, pathways into occupations experiencing skills shortages and job vacancies in all councils in NSW.



SECTION 4: Unmet Training Needs

Skill Gaps:

A skill gap is the gap between the skill level of the employee and the skills needed to perform their job role, as desired by their employer.

69% of councils who responded to the Survey are experiencing skill gaps. Key areas listed by councils as being the most critical in terms of skills gaps were:

Occupations with Critical Skill Gap

What new skills are required Drivers behind the skills gap

Urban & Town Planners - Demonstrated Experience - Lack of experience

- High demand

Strategic/Developmental Planning

- Experience in major development and planning

- Ability to pay

- High demand

Engineers - Lack of breadth of experience

- Local Government experience

- Supervisory skills

- Project managements

- Exposure

- Shortages

Design Engineers - Specialist design skills - Ability to pay – salary attracts entry level candidates

Project Managers - Experience in major development and planning

- Contract Management

- Ability to work across a diverse portfolio of projects which engage

multiple stakeholders

- Ability to pay

- Market shortage

Information Technology - Geospatial technology - Change in technology

Labourers - IT skills - Lack of training provided by council

Waste/Water Operators - IT skills - Changing technology

Leadership/Management and Supervisory Roles

- Leadership and communication

- Managing performance and development

- Changing unsettled environment

- Many people in acting

positions

- Lack of succession

planning

Rating Professionals - Knowledge of NSW Rating - Unique industry

Building and Health Inspectors

- Evidence procedures and investigation

- Ability to attract candidates

Procurement - Local government context - Limited training offered in this area

Councils are using a combination of strategies to address skill gaps including opportunities to act up, secondments, on-the-job training, coaching and mentoring and provision of targeted training programs. The following chart shows that most councils (72%) are using targeted training programs to address identified skill gaps, with a small proportion (18%) using secondments.




Recommendation 12 That LGNSW investigate funding opportunities for cross-collaboration and promotion of various models and innovative council practices which facilitate the exchange of skills and experience in local government.

Unmet Training Needs:

36% of councils who responded to the Survey had reported unmet training needs. The following table provides an overview of some of the key areas of unmet need and the reasons listed by councils for this gap. The key reasons given were:

• Staff availability

• Limited access to RTO locally

• Cost of specialized courses (software) programs

• Training programs not specific to the needs of local government Property Professional training has emerged as an area of unmet need and a Skills Advisory Committee has been established by LGNSW to look at current and future training needs of property professionals. Each of the unmet training needs listed in the table was raised by one council, apart from Leadership and Management training which was cited by more than one council.



Unmet Training Need Reason

Business Process Improvement - Resourcing staff - staff availability

Change Management Training - Need targeted, customised training that is delivered at the 'right' time

Contract Management - Access to RTO

Project Management - Access to RTO

Leadership & Management Training - Leadership Programs specific to local government are not offered locally

- Leadership programs that are available outside our local area are usually one-day courses rather than a development program delivered over a period of time

- Amalgamation: leadership training was put on hold until we had a full management team in place and things had

settled down from the restructure process.

- Amalgamation and change of leadership

Mental Health Resilience - Small number of reputable providers and costly to deliver in house

Supervisor Training - Lack of suitable training and limited budget

Aquatic Centre water quality - Lack of training provider

Property Professional's Training - Property Professional training in a local government context is not available

Regulatory Services - Certificate IV Local Government Regulatory Services is not offered locally

- Staff need to travel for some subjects and study under a distance education model that is not always ideal.

Evidentiary procedures - Resourcing shortages – difficult to release staff for training

Water/Waste Water Treatment Training

- Hard to source training provider

Manual handling - Not seen as a priority

Specific Software Training - Too expensive to get specialised trainers


In respect to reducing course costs, efficiencies can be gained by working collaboratively to deliver specialist training where there are common needs. This brokerage function can be potentially performed by single councils, Joint Organisations, Regions of Councils and peak bodies such as LGNSW. Cross-council collaboration on the identification and delivery of training needs should be encouraged through the establishment or strengthening (where they currently exist) of regional and state-wide learning and development networks.

Recommendation 13 That LGNSW, Joint Organisations and ROCs work together to establish mechanisms through which regional and state-wide training needs are identified and addressed.



SECTION 5: Emerging Issues Emerging Issues that will impact on Councils’ Future Skilling Needs:

Councils were asked to provide details of any internal or external factors that will impact on their future skill needs – things like changes to legislation or major new infrastructure projects planned in their region. The table below gives an overview of the key factors listed by NSW councils. Of the 42 councils who responded to this question, 29% list major infrastructure projects – either their own or external projects – as having the greatest impact on their future skilling needs. Technological change was second, with 26% of councils. 26% of councils listed growth within the local government area as having a major impact on future skilling needs. All councils that listed growth as a key factor were in Urban or Urban Regional areas.

Internal/External Factors Impact

Major Infrastructure Projects - Increased level of specialised labour needed

- More highly skilled/experienced project managers required

- More experienced engineers, project managers and supervisors needed

- More experienced contract management staff needed

- Increased DA staff to cope with significant workload increases

- Lack of qualified staff to undertake projects will result in longer completion times

- Limits staff availability to attend training

Technological Change and Digitisation

- Move away from paper-based systems

- Increased need for upskilling of existing staff

- Workforce will move to a new generation of digital savvy staff

- IT and digital literacy skills needed

Growth within local government area - Need to recruit more staff

- Need ability to process high volume development applications

- Increased demand for development officers, Planners,

Infrastructure, and Civil works staff

Attracting and Retaining Staff - Councils cannot compete with private sector wage rates

- Unable to source candidates/attract talent

Ageing Workforce/Local Population - Key employees retiring without employees trained to backfill

- Loss of key corporate knowledge/no knowledge exchange

- High turnover and loss of skill – skill gap – shortages

Amalgamations - Increase in staff level of responsibility

- Introduction of new systems and processes

- Re-alignment of resources

- Restructure of the organisation

- Replacement of IT platform

New Legislation/Regulation - Change to Child Care legislation – need for skilled staff during lunch breaks

- Changes to Chain of Responsibility legislation for Heavy Vehicles – insufficient knowledge of safety requirements

- Transfer of clients to NDIS

IPART & additional financial focus - Upskill financial staff or recruit staff

Asset Management - Appointment of asset management staff




Councils were asked if they had undertaken any analysis or forecasting of changing roles and skills requirements of their workforce, specifically due to the impact of digital disruption or to advances in technology.

• 54.5% answered No

• 30.9% answered Yes

• 14.5% did not answer Councils were asked to identify new skills emerging over the next three years because of technological advances/digital disruption. They were also asked to specify how they intended to address these new skills.

New Skills Emerging Over Next 3 Years

Strategies to Address Skill Need

Data Analytics – business and data analysis

- Creating of new positions and inclusion in existing positions - New systems and training delivery required - Change leadership needed - New software systems to strengthen data for decision making - Enterprise Content Management approach – subject matter experts

need to lead education requirements - CRM system – training to be developed when rolled out

Adaptation to new technology - New Customer Service Centre – visitor management centre – inhouse training

- Recruitment - Specific training to enhance technology literacy

General IT Skills - Change of IT platform - Plan for new job roles yet to be identified

Increased mobile technology and field-based apps

- Increase in hand held devices/tablets/iPad and training for field-based staff

- Work based mobile technology strategies - Training for roll out of new mobile tech

Electronic/Online forms - Electronic/online timesheets and records - Computer literacy training

GIS / Interactive Mapping - Increased use of GPS tracking on fleet and equipment – introduction of devices and training

Tech Savvy Workforce - Training in how to use technology - Increase in skill level and comfort level of staff - Creation of a more mobile workforce - Electronic meeting facilities – inhouse training

Digitisation of Data / Digital Literacy

- Shift to on-line service provision will require a transformation strategy - IT Strategy and team business plans to identify digitization

opportunities - Introduction of Cloud computing - Ongoing staff training

Introduction of Cloud based functionality

- Staff training

Upgrade of Software and systems

- New phone systems - Introduction of Civica and Authority programs - New software packages - New corporate systems – internal and external training

Drone operators - Sewage, storm water drains, progress of new urban development – courses and investment in technology

- Staff enrolled in Certificate III Aviation

Agile and Flexible Leadership skills

- Leadership development program - Novel and adaptive thinking training

PR, Marketing & Communications

- Digital and Social media courses and job coaching

Standardization of Services - Computer literacy Source: Local Government Skills Shortage Survey 2017, LGWDG



Staff training in all areas of implementation and application of ICT systems has emerged as a common need for councils. The sector would gain from greater collaboration on the identification of training need and the procurement of training to be delivered to multiple councils on a more cost-effective basis.

Recommendation 14 That LGNSW establish a Skills Advisory Committee of ICT professionals to identify training needs, coordinate delivery and source funding for councils, where feasible.

How well positioned are you?

The way we do business, connect, socialise, travel, and live is changing. The CSIRO predicts that the world of work in the next two decades will be shaped by five key trends: technological advances, digital connectivity, globalisation, the ageing population and emerging economic structures. These mega trends are driving the speed of change and are expected to lead to the restructuring of labour markets throughout Australia.38 The Committee for Economic Development of Australia (CEDA)39 predict that almost five million jobs, or 39.6% of the Australian workforce, will face a high probability of being replaced by computers in the next 10-20 years, and a further 18.4% face a medium probability of having their roles eliminated.

The nature of work is expected to shift and redefine the composition of the workforce. The number of permanent employees is expected to diminish as organisations outsource non-core work to freelancers, part-timers and casuals, to enable firms to be more agile and accommodate accelerating changes in business strategy.

Advances in computer technologies will influence how workers perform work, allowing them to work remotely, and to be connected to colleagues using Cloud technologies. New skills are expected to emerge, to create roles that do not yet exist.

Skill-sets will change, and career paths centred on a specialisation within a narrow stream will offer less resilience than career paths that develop a worker’s competence in generic/soft skills such as project management, digital skills, adaptive thinking, team work and problem solving etc.

It is expected that organisational structures will be flatter, and workers will be assigned to teams based on their skills and potential to learn. The role of leaders will be to attract and nurture talent; coach, develop and inspire teams to innovate, improve work processes and build the organisation’s adaptive capacity.

Assumptions that determine how an organisation is structured, and the effectiveness of human capital strategies to attract and develop talent and build the organisational culture to maintain competitive advantage, will need to be reviewed.

As new technologies emerge in the future the demand for some skills will wain while others will increase.

38 Hajkowski et al (2016: 18) 39 CEDA (2015: 24) Australia’s future workforce, Melbourne



It is expected that soft skill intensive occupations will make up almost two-thirds of the workforce in the future.40 These soft skills are:

• Creativity and entrepreneurial skills

• Cross cultural awareness

• Social intelligence

• Novel and adaptive thinking

• New media literacy (e.g. social networking)

• Ability to understand concepts across multiple disciplines

• Critical thinking, analysis, and problem solving

• Design mind-set

• Ability to discriminate and filter information for importance)

• Ability to work productively, drive engagement, and demonstrate presence as a member of a virtual team41

It is in this context that councils were asked how well positioned they were regarding soft skills and how they intended to address this emerging skills gap. Between 40-60% of councils who responded to this question said they needed to improve their position in 10 out of the 11 soft skill areas listed below. The top three areas in which councils were least well positioned were:

• Ability to work productively, drive engagement, and demonstrate presence as a member of a virtual team

• Digital Skills

• Ability to understand concepts across multiple disciplines

To address these emerging skills gaps, councils will be mainly looking to upskill existing staff. To a lesser extent they will look to import skills/recruit externally. Very few will be seeking to use shared service arrangements to address skill gaps.

40 Deloitte Access Economics, Soft skills for business success, (2017: 8), Deloitte Australia 41 Deloitte Access Economics, Soft skills for business success, (2017: 8), Deloitte Australia



What might hinder staff gaining emerging skills?

Councils were asked to list the key factors that might hinder staff gaining these emerging soft skills needed in the future. The table below shows the range of factors listed. Some of these factors are aligned, like Resistance to Change (17%) and Culture of the organization/mindset (26%). The impact of these two factors when combined would put them at the top of the list above Budgetary Constraints. These are internal factors that council has control over and can plan to address. The same is true of Lack of Workplace Planning and lack of Leadership in this area.


Councils are not well positioned in regard to soft skills and need to consider how they intend to address this issue. It is such a big issue that an industry wide approach is recommended.

Recommendation 15 That ALGA commission research on behalf of the sector, identifying the impact of technology and other drivers of change on current job roles and emerging skills required in local government.



Future workforce profile:

Councils were asked to list the types of workers they currently employ to deliver services and to also indicate how they anticipate this profile might change in the future. In terms of the current workforce profile, all councils (36) who responded to this question employ full-time, part-time and casual workers. A significant proportion use:

• Labour Hire Arrangements – 72.5%

• Independent Contractors – 86.3%

• Volunteers – 76.5% To a lesser extent, councils use:

• Freelancers – 15.7%

• Service Centres – 11.8%

• Fly In Fly Out Workers – 7.8%

The Future Workforce Profile is mapped out in the following chart. In the future councils are predicting the following trends:

• A significant increase in the use of Part-Time Employees

• A significant increase in the number of Volunteers

• A moderate increase in the use of Full-Time and Casual Employees

• A small increase in the use of Service Centres and Independent Contractors

• Little change in the number of Fly In Fly Out or Freelance Workers

• A decrease in the use of Labour Hire arrangements

Local Government Workforce and Future Skill Needs Report - NSW


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Appendix 1 Councils in NSW that responded to the Local Government Skills

Survey by ACLG region

Council ACLG Rural & Rural Remote

Bland Shire Council RAL

Bogan Shire Council RAM

Carrathool Shire Council RAM

Forbes Shire Council RAL

Gunnedah Shire Council RAV

Junee Shire Council RAL

Lachlan Shire Council RAL

Leeton Shire Council RAV

Lockhart Shire Council RAM

Narromine Shire Council RAL

Norfolk Island Regional Council RTS

Snowy Monaro Regional Council RAV

Temora Shire Council RAL

Tenterfield Shire Council RAL

Upper Lachlan Shire Council RAL

Warren Shire Council RAM

Yass Valley Council RAV

Urban & Urban Fringe Blacktown City Council UDV

Camden Council UFL

City of Sydney Council UCC

Fairfield City Council UDV

Georges River Council UDV

Ku-ring-gai Council UDV

Liverpool City Council UFV

North Sydney Council UDL

Penrith City Council UFV

Randwick City Council UDV

Ryde City Council UDV

The Hills Shire Council UFV

Waverley Council UDL

Wollondilly Shire Council UFM

Woollahra Council UDM

Urban Regional Ballina Shire Council URM

Cessnock City Council URM

Dubbo Regional Council URM

Eurobodalla Shire Council URM

Lake Macquarie City Council URV

Maitland City Council URL

Mid-Western Regional Council URS



Newcastle City Council URV

Orange City Council URM

Port Stephens Council URL

Queanbeyan-Palerang Regional Council URM

Rous County Council URM

Shellharbour City Council URL

Shoalhaven City Council URL

Singleton Council URS

Tamworth Regional Council URM

Wagga Wagga City Council URM

Wingecarribee Shire Council URM

Wollongong City Council URV

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