Workforce trends encouraging

HOW ARE WE GETTING THERE?

The process will be driven by implementing four enabling strategies: System alignment; Teaming; Informed decision making; and Reshape thinking. System Alignment System alignment within the NPT organisation involves a three-phase approach. Align the personnel and training continuum. This means aligning the recruiting process with the Schools; and the Schools with the Fleet for comp log progression. Whole of ship posting plans need to be in sync with the FAS, so that position pre-requisite and advanced level training occurs. We have made good progress here. Align NPT HRM activity with Fleet, FEGs and Projects; and with DPE and the other Services, especially on remuneration and employment conditions issues. Teaming Managing the workforce is everyone’s business. The NPT organisation is only responsible for some elements. The complexity of issues and ownership means that teaming and developing robust relationships between organisations is vital. Teaming is being developed within NPT and externally with Fleet and the FEGs. However, this must be progressed further. In particular, the relationship with capability development and project areas needs more attention. Informed Decision Making The development and use of lead indicators are central to informed management and decision making. We must also work on developing a through-life costs approach to the workforce so that we better understand the personnel costs of policy driven issues such as op tempo; and the financial costs associated with decisions such as changes to employment conditions. This will assist us to operate and live within our means. We must reshape thinking to adapt to a more challenging recruiting environment in the future, along with changing workforce expectations. Innovative approaches to crewing and flexible employment practices must be embraced. Use of automation to reduce dependence on personnel numbers must be explored. The all-of-one company philosophy must be broken down, paving the way for targeted retention initiatives. We are making progress in all of these areas but there is much resistance. Ongoing financial pressures reinforce that a new approach is needed. We need to change before we are forced to, and we cannot afford to delay.

Ongoing shortfalls in the Navy workforce, coupled with the current high operational tempo, continue to place pressure on the management of Navy’s personnel issues. CDRE Simon Hart, Director General Navy Personnel and Training (DGNPT), explains the details of the current situation and what he and his organisation are doing to ensure a stable and sustainable workforce in the future.

The current workforce situation contains some encouraging trends, but also some ongoing and major challenges. The overall size of the permanent naval (PN) grew by 304 in the last financial year, the first growth for a number of years. The expectation is that the PN workforce will grow again this year. Recruiting achievement, particularly for sailors, has been very good for the last two years, with indications of continuing good results.

More good news is that there are over 2,000 people in the training force, the highest level for seven years. The challenge is to maintain this level for the foreseeable future.

Improvements have not been even across the workforce. There are significant shortfalls in a number of key categories that are critical to providing Navy’s operational capability. These critical categories provide a focus for recruiting, retention and rationalisation initiatives.

Separation rates have diminished slightly from last year’s levels, but are still too high. It will take at least another few years of good recruiting and stable retention rates to fully recover and grow the workforce. We, across all of Navy, need to understand and target retention issues while rationalising the loadings on our workforce.

Funding for future workforce requirements is a major issue. Capability projections indicate that we will need a workforce estimated to be about 14,500 in 10 years time - above the current White Paper ceiling of 14,000. This emphasises the need to rationalise workforce requirements to levels that will enable us to ‘live within our means’; particularly in an environment where the recruiting base will be diminishing.

Overlaying the stresses on our personnel situation is the current high op tempo. The training system is operating at near maximum levels but op tempo is limiting the availability of bunks-at-sea for consolidation training. Fleet assets are not available for key training activities such as PWO and ASAC sea weeks. Additionally, the priority of deploying units means that more people are not available for training opportunities.

Three principal strategies are being employed to manage this complex situation:

• Stabilise the workforce
• Ensure its sustainability
• Evolve for the future

All three elements are inter-woven.

‘Stabilise’ does not mean that we resign ourselves to making do at the current strength. It is about keeping recruiting at current or better levels; rationalising or reducing the workforce requirement; maximising training throughput and managing op tempo issues. Reducing separation rates, particularly in the critical categories, is crucial. A sustained reduction of just two per cent in the separation rate will have a significant effect - doubling the growth in PN numbers and halving the recovery time for most critical categories.

‘Sustain’ is about doing things now to secure the medium term by developing a flexible framework for enduring solutions to current and looming problems. It is a command and leadership issue. Key sustainment components are funding, retention, training, respite, work structures and practices. Navy can have an affordable, sustainable workforce while operating at the full capacity of current and future capability. As an example, CAPT Kerr and his team at DNPR(E&L), in consultation with the Surface Combatant FEG, have just completed a restructuring of the Anzac MT scheme of complement. This has resulted in a sensible rationalisation of the MT category numbers required and will reduce pressure on the MT category overall.

We use the term ‘evolve’ because that is how the future workforce is created, with changes that are likely to be evolutionary rather than revolutionary. Particular workforce requirements linked to elements of capability evolve at different rates. A set of principles currently being considered by CNSAC directly link the size, structure and disposition of the Navy workforce to the whole-of-Navy work requirement and contain in-built flexibility to meet evolving circumstances.

‘Stabilise’ does not mean that we resign ourselves to making do at the current strength. It is about keeping recruiting at current or better levels; rationalising or reducing the workforce requirement; maximising training throughput and managing op tempo issues. Reducing separation rates, particularly in the critical categories, is crucial. A sustained reduction of just two per cent in the separation rate will have a significant effect - doubling the growth in PN numbers and halving the recovery time for most critical categories.

‘Sustain’ is about doing things now to secure the medium term by developing a flexible framework for enduring solutions to current and looming problems. It is a command and leadership issue. Key sustainment components are funding, retention, training, respite, work structures and practices. Navy can have an affordable, sustainable workforce while operating at the full capacity of current and future capability. As an example, CAPT Kerr and his team at DNPR(E&L), in consultation with the Surface Combatant FEG, have just completed a restructuring of the Anzac MT scheme of complement. This has resulted in a sensible rationalisation of the MT category numbers required and will reduce pressure on the MT category overall.

We use the term ‘evolve’ because that is how the future workforce is created, with changes that are likely to be evolutionary rather than revolutionary. Particular workforce requirements linked to elements of capability evolve at different rates. A set of principles currently being considered by CNSAC directly link the size, structure and disposition of the Navy workforce to the whole-of-Navy work requirement and contain in-built flexibility to meet evolving circumstances.

Recommendations

Following the address by DGNPT, CDRE Simon Hart at CN’s Leadership Conference, a Sustainable Workforce workshop was conducted. This required the 320 conference participants, separated into 30 groups, to consider a set of questions relating to workforce planning and management. The questions were:

• What criteria should be used to select and prioritise workforce sustainability initiatives?
• What are the key ingredients to creating a sustainable workforce?
• What are the management processes required to manage a total workforce?
• What factors should define future workforce practices and productivity for Navy?

Submissions from all groups were analysed to produce summarised key recommendations which follow:

• That a set of activities to clearly define future workforce needs be established using existing work on the MT/MTE categories with the aim of reviewing Navy workforce requirements. This work would begin with a focus on critical categories before being rolled out across all categories.
• That existing information on personnel issues be thoroughly reviewed to identify key issues and plan for their resolution. This would include analysis of ‘Your Say’, exit interview, and Employer of Choice documentation. The review would establish action plans and ensure that actions are scheduled across the recommendations to provide a coordinated program of activity.
• That the visibility and predicability of career and respite planning arrangements be assessed with a view to improvement; so that planning timeframes and advice to individuals provide them with information to support aspirations and personal needs within a Navy context.
• That these activities be framed against baselines for improvement and measurable objectives; and that the results are widely disseminated.
  

NPT has given detailed consideration to these views and recommendations in framing the way ahead.

NPT responds

On October 22 last year, DGNPT commissioned the Workforce Sustainability Program. This project addresses the disconnects, gaps and inconsistencies which impact negatively on the achievement of a sustainable workforce to meet Navy capability requirements. Outcomes will inform Navy workforce management and the Defence Workforce Plan.

In the first phase of the program, a coherent strategy has been developed for the management of the Navy workforce. Key achievements during this phase include:

• the development of the Navy ‘Critical Category Balance Sheet’ concept — a framework for considering workforce information and strategy
• the development of a Navy Category Management Reform program based on the excellent work done with the MT category
• the activity based costing of the Training Resources and Outputs Model (TROM)
  formation of the Navy PMKeyS Remediation Project Team
• development of a model to cost training by rank within a PQ/category employment group - this provides an accurate cost of separation.The next phase of the project is centred on six strategic development projects by NPT.
• Develop NPT ability to shape capability development workforce related decisions
• Map and redefine the Navy HR system with a view to rationalisation and refocussing the outlook
• Develop a framework and strategy to conduct Navy-wide task/job analysis as a basis to ensure alignment of training is achieved
• Continue to improve personnel and workforce decision-making by improved data availability, analysis and decision-making processes
• Investigate and map Navy workforce requirements conduct a coordinated set of workforce management activities aimed at rationalising workforce requirements and utilisation
• Develop and implement a strategy to position Navy as an Employer of Choice
  

These projects are currently being progressed. The Navy community can be confident that the NPT Organisation has visibility of the key personnel issues and is attempting to tackle them head on.
Feedback on this article or any matter raised in it is welcomed. Send comments to sustain@austdefence.gov.au. For more detail go to the Corporate Information and Resources folder under http://npt.sor.defence.gov.au/default.html

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