Coates hire business practices divisional structure where their business activities are organised as per market and functions of services in the group into various divisional lines of operations like sales & marketing, finance & accounting, production, etc. The nature of divisional structure at Coates hire helps to make effective business decision based on cluster of division level so as to respond rapidly and rationally to business situation on local demand and is useful to facilitate accountability with alignment of responsibilities, actions and outcomes at each operational level thus ensuring better management and best interest of each division.
Also it permits effective decision making to be shifted downward to improvise ability of firm to respond to market condition and helps to produce better response and performance in market to manage large number of product offerings to different markets with sense of flexibility and adaptation.
The Coates way is the firm’s vision that it intends to attain and uses this as framework to develop strategies that leads to attainment of their corporate goals. The aspect of Coates way includes the purpose which explains the business and current aims of Coates Hire as well as their future strategic purposes. The second aspect is Vision where the way or path Coates Hire’s business is heading is defined while in third aspect Critical success factors are explained which illustrates the manner through which the business would reach to their strategic purposes and vision. The last aspect is Values which explains the behaviour that firm expects from its employees on regular basis at work.
The understanding of the Coates Hire’s business purposes by their employees helps to give strategic direction and clarity to them to ensure that each employee works committedly to attain the purposes and vision of business. This understanding helps to give them get clear understanding of path or approach employees are expected to take to reach to desired objectives and results. These purposes, vision are then driven by key factors of achievement that is expected to be followed at work regularly supported by values of employees which helps to achieve focused direction for employees to attain overarching company goals.
The identification of strengths and weakness of Coates Hire helps to develop a strategic intent and vision that would influence their workforce planning to ensure positive impact over employee’s perception which would make them actively engage with strategic goals and purposes with employees taking responsibility of their efforts. Also identification of firm’s strengths and weakness helps in developing a strategic intention that would address all the weak areas and ensure their improvement through optimum utilisation or enhancement of identified strengths, which would ensure that Coates workforce gets developed eventually with better capability to meet the strong areas and gradually overcome weakness of firm.
The identification of strengths and weakness even helps that workforce planning is developed to improve organisational effectiveness by enabling employees to reflect on their contribution as well as experience of working so that this realisation and self-assessment would empower employees retain their performance and further make more progress. The interpretation of strength and weakness of Coates Hire helps to ensure that workforce planning includes aspects to improve competency of employees and engage them in a culture of development to get best outcomes to meet company’s vision with support of appropriate training and performance development plans that are clear and measurable to be understood by employees and being practised to effectively reach to goals as required to build performance.
The four outcomes of HR support the strategic intention of Coates Hire by clearly alinging the actions with goals and purpose of firm to help drive a focused approach to reach to goals. These strategic intent and understanding of HR outcomes gives employees clear understanding of what must be done to attain the company’s goals and help employees to get engaged with goals by ensuring a positive influnce over their perception that makes them motivated to achieve outcomes as expected. It also supports their development with enhancement of capabilities that help improve employees flexiblity and effectiveness to reach to established strategic intent and vision.
Further it helps employees experince a culture and work environment that is conducive to meet concrete outcomes with better employee reflection, culture and safety that helps to attract and retain best performer making employees more dedicated to achieve strategic goals.
Employee engagement level at Coates Hire measures the commitment level of resources towards the business goals and vision and in Annual surveys as well as in Climate Surveys the employees of Coates are invited to take part which helps to get feedback of employees thus enabling to explore what makes Coates special and what are fields that are needed to be improved to help better employee engagement. These surveys helps Coates understand their resources needs and their expectations in specific areas which supports the firm to become best choice to work for employees.
The data above depicts employee engagement level at Coates against benchmarks in similar business competitors as well as best performers. The data reveals that Coates had attained high level of employee engagement specifically the survey data shows that Coates performed better than other competitor business in areas of career opportunity, quality of location and tasks. The data also reveals certain areas for improvement that consist of work-life balance opportunities, level of recognition related to tasks and level to improve physical work environment
A global survey reveals that the food and drink industry is presently facing continuous threat from increasing shortage of skilled human resources more than climate change, rocketing energy bills and water scarcity. According to Burrows (2016), one in two businesses operating in Australia’s agrifood and wine industry have accepted sufficient supply of skilled of labour as a significant challenge.
The industrymight not be getting troubled with scarcity of resources as much as it is getting affected due it labour shortage, the impact of which has started to affect the bottom line of companies. Over the past couple ofyears, additional time and costs needed for securing the availability of resources (human) and making them suitable for use has become the principle challenge for companies. According to Sutcliffe and Dhakal (2018), the challenge of finding labour has become unsustainable further leading towards tonnes of agricultural food products of agribusiness companylike Elders Limited been wasted causing a significant loss to the country’s economy.
There has been critical imbalance between supply and demand of labour in the Australian agrifood and wine industry. According to Bruke (2011), with increasingly tightening labour marketsince 2010, Elders has been experiencing difficulties in meeting its demand of skilled workers and has to consider overseas staffs for overcoming this shortage of skills. In this industry recruiting difficulties are long-standing both at white and blue collar levels. Skilled labour shortages have forced Elders in going on a permanent recruitment drive.Itfurther revealed that only 40% of the positions it had advertised were filled and that the ratio of applications per job is 1:1, a situation much drastic than it was in 2009 when then ratio was 1:4 applicants. While no applicants are available for jobs advertised in isolated locations.
Discussion:
According to Zoller (2018), workforce arguably is the most important tangible asset today in Australia’s agrifood and wine industry however, most organizations often fail in carefully planning, measuring or optimizing this asset despite of declaring repeatedly that workforce planning and data-driven decision-making is their top most priority. According to Opengart, et al., (2018), workforce planning is anincreasingly significant domain for both human resources and organizations and hence, is defined as a process that assures organizations like Elders Limited has access to required human capital, current and future for performing effectively. It involves determining the current and future personnel needs besides looking for most suited and cost-effective methods for theirrecruitment and retention.
According to Jacobson (2010), WFP is important because of its potential of presenting significant opportunities to HR teams, senior leadership team and board members in driving the process’s strategic end besides setting the agenda for workforce change further making everyone look towards the future, both for themselves and the company. WFP assist aspiring personnel in pushing themselves forward, reorganizing them into more suited roles and foreseeing the future needs. WFP when employed rightly can help businesses like Elders in early identification and anticipation of problems, circumventdisruptions and abrupt costs.
According to Arms and Bercik (2015), WFP activities benefit in aligning strategic planning with head count and talent planning, creating clear-cut view of talent demand and supply issues by expense area, reporting relationship, and location, furnishing easy-to-use reports and tools to managers for determining the effect of their talent decisions and prioritizing future workforce investments, highlighting issues limiting employees productiveness and cultivating competitive advantage through planned against reactive talent management.
According to Jones, et al., (2017), WFP process includes five key steps:
Identify company’s business strategy: the vision, goals and business strategies of Elder Limited are identified for their impact of staffing requirements besides establishing the future needs influencing the numbers and types of employees required.
Articulate the talent philosophy and company’s strategic staffing decisions: Elder’s commitment on promotions, retention, and preferences to hire people having certain skills and training impact the nature of employees required while planning and forecasting.
Workforce analysis: the demand and supply is forecasted at here followed by gaps identification amidst these two aspects.
Develop action plans: for addressing gaps amid labour demand and supply forecasts action plans are developed consistent with the talent philosophy of Elder and both short and long term recruitment are included.
Monitor, evaluate and revise action plans: with rapidly changing markets and business environments, evaluating theworkforce plans is important to ensure its effectiveness and amendments accordingly.
According Sheehan, et al., (2018), for agrifood and wine industry finding human resources meeting its demands has become hard increasingly, which eventually has created a situation of near-crisis within the industry.A survey reveals that around 70% of food and beverage making companies are facing the brunt of crisis with context to low supply of skilled workers. The food production industry of Australia is heavily dependent on an adequate supply of labour for harvesting, processing, packaging and distributing produce.
The industry has been witnessing a significant increase in the number of businesses facing difficulties in hiring enough workers, and Elders in no exception. The decrease in number of migrant workers has also contributed to this unprecedented challenge. Companies operating in this sector reveal that around 70% of labour suppliers failed in meeting their employment demands. Also there has been a significant decline in the number of people applying in agrifood and wine industry, as reported by the labour suppliers. Other issues hounding the industry are fast ageing manpower and a declining regional workforce.
According to Bhagra and Sharma (2018), apart from dealing with shortage of labour, the nature of agrifood and wine industry is also undergoing a dramatic change with constant technological evolution permeating every aspect of competitive companies like Elder. The new norms of research, testing, supply chains, plant operations, food and worker safety, transportation, marketing and sales are defined through automation and connectivity. A skill gaps analysis in Elder reveals specific gaps in skills revolving around basic IT knowledge, numeracy, literacy, advanced IT and other technical and practical skills.
According to Christo-Baker, et al., (2017), to address the identified skill gaps at Elders the management should focus of development strategies through cross-training. For optimizing the existing in-house resources cross-training is a great way to improve the skills gap. By promoting and supporting employees to cross-train in areas where a need for talent exist, the company will get not only support in shoring up the immediate shortcoming but will even build more skilled talent within the workforce to improve knowledge transfer all over the business.
Techniques used for forecasting labour demand and supply through WFP process
In order to forecast labour demand and supply workforce planning need to be followed along with using technique for Human Resource Planning so as to project existing and future staffing requirement to eliminate exposure to surplus or shortage of workforce. Managers use various methods to forecast flow workforce into, within and out of company so as to estimate level of future workforce demand. Also the WFP process uses procedures to facilitate employee’s development and skill enhancement through assessing level of competence and overall productivity so that skills can be developed with training and development planning.
The forecasting technique used to forecast labour demand and supply includes demand forecast which is quantitative element of WFP process that estimates future need of workforce and is based on factors like determining employment pattern in firm for atleast past 5 years so as to forecast future demand, identification of retirement, resignation, termination, death etc to determine replacement need, identification of productivity and arranging improvement for employees skills and potential through training which would result to high level of productivity, growth and higher demand for employment of competent workforce as well as identification for recruiting and selecting more competent resources so as to expand growth objectives of firm.
Demand forecasting is done through techniques like workload forecasting, ratio-trend analysis, echometric models etc. In workload forecast stock of workload and flow of operation is analysed and labour demand is estimated by calculating working capacity of labour in terms of man hours for each unit and then number of estimated employees. Using statistical techniques like ratio trend analysis the ration is computed from previous data in terms of number of employee for each department and for future work capacity that may allow change in structure, job, methods and hence future workforce estimation is made. Another method is econometric technique which is developed based on estimation of previous statistical data to form correlation between variable (production, finance and others) that impact workforce need.
Supply of labour is forecasted through means of estimating supply of workforce in consideration to estimation of existing workforce inventory and future availability. The stock of current workforce is estimated with identification of head count, age inventory, skills, experience and capabilities inventory, salary grade inventory, local and non-local wise inventory and with past performance and future potential inventory. Also labour wastage is estimated in context to turnover rate so as to estimate future labour needs.
According to Sharma (2016), for addressing WFP at Elders People Strategy should be the key HR strategy, developed with focus on best HR practices, the strategic objective of WFP, considering Board Members view, and consultation with staffs.To equip WFP, reinforcing performance mindset (defining and embedding WFP values and behaviours), shifting the focus (enhancing national staffs skills and capacities), building WFP’s talent (Developing career frameworks and skills, providing learning and growth opportunities) and providing impactful leaders (mobilizing senior leaders, enhancing leadership and management capabilities) will be the four imperatives. According to Belenzon and Tsolmon (2016), since diverse workforce is engaged at Elders, it frequently faces various issues in maintaining the workforce diversity. The issues arise in situations revolving around generational and age differences.
The workplace comprising of diverse range of ages often gives rise to conflicts amidst employees of different generations. For example, a more collaborative working approach is preferred by the millennial while Baby Boomers are more reserved eventually leading to communicational conflicts. According to Busse, et al., (2017), Political factors like government type and its stableness, legislativechanges (employment laws, contracts over staff rights), social and employment legislation, probable changes in Australian political environment,Economic factors such as unemployment and labour supply, labour costs, Social factors such as growth rate of the populationand age profile, and Technological factors like effect of reduction in communications costs and increased remote working are affecting the labour demand and supply in Elders.
Employee satisfaction and organization changeis another factor affecting the labour demand within the industrywhere the former is mainly related to poor working conditions and low wages.It is reported that 86% of workforce engaged in this industry are paid lower wages with little or zero access to paid sick leaves and health benefits further dissuading people’s interest to work in this industry, driving in acute labour shortagewhileElders undergoingtransitional organization change by replacing manual production procedure with an automated process has also affected its demand for skilled labours, which is currently deficit.
Finally it can be conclude that for ensuring higher performance Australian agrifood and wine industry should focus on meeting theWFP challenges in the current economic climate by developing and sustaining exclusive workforce planning programsbesides breaking down the conventional barriers ofcompetent workforce planning.
Workforce planning is a very vital Human Resource activity which is needed to be undertaken by every organization in order to determine the number of job shortages in the organizations and the expected skill levels in order to fulfil those positions in the company so that a company can plan its employment and recruitment strategy accordingly. In case of the Australian labour market there is observed a demand supply gap due to lack of effective supply of qualified human resources in order to fulfil the vacancies of the company.
There are various challenges which are relevant to the workforce of the company such as ageing population and lack of eligible staffs to fil the vacant positions of the company. The workforce planning strategy of Elders will focus on decreasing the employee turnover rate of the company and increasing the employee retention of the company and will also focus on improving diversity and intercultural management in the company.
Elders is a leading rural Australian based agribusiness company which offers various products and service such as rural services, financial planning, real estate, insurance and home loans. The board and management team of the company remains committed to meet the highest standards of corporate governance, business integrity and professionalism with due respect to all their stakeholders.
Phase 1: Workforce future functional requirements
The future functional requirements of the workforce of the Elders company need for highly productive employees who would be multitasking in nature, highly motivated employees who could work without any directions and supervisions, highly adaptable and flexible employees who could adapt themselves to any kind of situation in the market and highly creative and innovative employees who would be expert in adapting to the requirements of any new technological advancements.
Phase 2: Workforce Analysis
Environmental Scan
The PEST analysis of Elders Australia is as follows:
Political- As stated by Hewins- Maroney and Williams (2013) the political factor which affects the Elders Company is the political stability of the country in which they operate and the policies of the government of Australia such as taxation policies, minimum wage policy and anti-discrimination policies.
Economic- According to M2 Presswire (2013) the economic factor which affects the Elders Company is the purchasing power of the customers as economic fluctuations affect the buying power of the customers. Another economic factor which affects the companies is the fluctuations of exchange rate in the economies in which the company operates.
Sociocultural- As opined by Birch (2014) the socio-cultural factors which impacts the Elders Company is the purchasing patterns of the customer and the characteristics of the demographics population such as age, income and educational qualifications.
Technological- The technological factors which affects the Elders Company is the rate of technological advancements in the countries where the company is located as the rate of technological advancements in those countries determine the effectiveness of the operations of the company.
Current market, supply and demand forces
As opined by Capeluck (2016) in the current labour market, Australian employment growth is slowing down sharply after a very sharp period in2017. In the Australian labour market, unemployment holds steady at 5.5%a little above the 5% level where wage pressures are expected to build.
Current demand for staffing resources
The current demand for staffing resources of theElders company is approximately 2200 employees who are proficient in working with new technological advancements and who possesses various industrial certification or degree in order to match the requirements of the company.
Future demand for staffing resources
The future demand for staffing resources in theElders companyis estimated through scenario based planning which is approximately 3000 employees. As stated by Esposto (2013) in the future Elders will look for employees who would be highly skilled in various kinds of technological advancements. In the future the company will also require multi-tasking employees who would be ready to adapt to any kind of situation and would be ready to relocate in any part of the world.
Demand/supply analysis and discrepancy
As opined by Bahn and Cameron (2013) the demand of labour for the Elders Company is expected to increase as a result of the increasing demand for the products and services of the company and also as a result of diversification. Therefore Elders Company would require constant supply of highly skilled labour in various job positions in order to meet the expectations of the company, market and their customers. However the supply of demand is expected to decline as a result of the ageing workforce and due to skilled individuals working in non-compatible jobs and therefore in order to address the gap Elders company would have to focus on recruiting candidates globally.
Workplace issues and challenges
The potential workforce issues and challenges which the Elders Company faces are as follows:
Develop strategy: recommended solutions
The recommended solutions to reduce shortages in staff and skill required are as follows:
Steps towards implementation plan
As stated by Phipps (2016) the workforce retention strategy of the Elders company should focus on hiring the right people at the right job right from the beginning so that they do not tend to quit the company in the near future. The workforce retention strategy should also focus on providing competitive salary and benefits to the employees so that they remain motivated to achieve the objectives of the company and remain committed in future to the company.
As stated by Davis, Frolova and Callahan (2016) the diversity strategy of the Elders Company should focus on recruiting individuals from diverse cultural backgrounds and promote a diverse workforce. As stated by Ewoh (2013) there should be no restrictions or limitations in the company in hiring candidates from diverse cultural backgrounds so that everyone would enjoy the same benefits in the company.
As stated by Wall (2013) the cross cultural management strategy of the Elders Company should focus on managing the various cultures so that there arises no issues in the workforce due to cultural differences. As stated by Kathirvel and Febiula (2017) in order to facilitate cross-cultural management, the Elders Company should mostly focus on encouraging open communication between the employees which would help in reducing cross cultural issues and would help in increasing the bonding and understanding among the employees.
Expected Costs
The expected costs of the Elders Company so as to implement the Workforce retention strategy is AUS $ 1.5 million which includes the cost of hiring new employees and providing then with competitive salary and benefits.
The expected cost which is associated with implementation of the workforce diversity strategy in the company is AU$ 1 million which includes the hiring and selection of candidates from diverse background.
There are no such costs for implementing the cross-cultural management strategy in the company.
Action Plan
|
Goals |
Responsible for implementing |
Timeline |
Expected outcome |
|
To reduce the employee turnover rate to 10% at the end of the next year. |
HR manager of the Elders company |
12 months |
Reduction in employee turnover of the company. |
|
Increasing the employee retention rate by 15 % at the end of the next year. |
HR manager of the Elders company |
12 months |
Increase in employee retention of the Elders company |
|
As stated by Kishi (2014) increasing the woman representation of the Elders company by 10% by the end of the next year. |
HR manager of the Elders company |
12 months |
Increase in the number of woman employees in the Elders company |
|
Increasing the disabled representation of the company by 5% at the end of the current year. |
HR manager of the company |
6 months |
Increase in the representation of disabled community in the Elders company |
|
As stated by Li. (2014) increasing representation from indigenous communities by 15% at the end of the next year. |
HR manager of the company |
12 months |
Increased representation of individuals belonging from indigenous communities in the company. |
|
As opined by Viegas-Pires (2013) reducing inter-cultural issues and grievances among the employees to 0% at the end of the current year. |
HR manager of the company in consultation with the team leaders of the company |
6 months |
No reports of cultural issues or disputes in the company. |
Communicating the workforce plan to stakeholders
The workforce plan will be communicated to the stakeholders of the Elders Company via the website of the company, the intranet network, through the annual meeting of the company and annual report. After communicating the action plan to the stakeholders, the Elders Company would be focusing on obtaining feedbacks from the stakeholders and accordingly would make changes in the action plan for modifying the various issues which would be experienced during implementation.
Strategies to reduce gaps and shortages
The strategies to reduce gaps and shortages in action plan are as follows:
Monitoring and evaluation of action plan and strategies
The action plan and strategies implemented by the Elders company must be regularly monitored and evaluated in order to ensure the effectiveness of the action plans and strategies implanted by the company. As stated by Russell et al. (2013) in order to evaluate the plan, feedbacks and inputs must be collected from the employees through employee satisfaction surveys so as to identify gaps or issues in the action plan and eventually develop appropriate action that can be taken.
Conclusion
From the above report it is evident that there is a supply demand gap which is observed in terms of workforce in Elders Australia. The main reasons which have been accounted for the creation of supply-demand gap in terms of workforce are ageing workforce and lack of qualified individuals to fill the vacant positions of the company as qualified individuals are mostly involved in working with un-compatible jobs. Therefore Elders Australia needs to focus on developing effective workforce retention, diversity management and inter-cultural management strategies in order to respond to the supply demand gap.
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