Labor Market Factors That Can Impact on Human Resource Planning of Organizations - Case Study Example

Analysis of external labor market factors that can impact on HR planning of organizations within the health industry in Australia Timeframes The health and community services industry is one of the largest employers in Australia. It accounts for over 9.7% of the total workforce in Australia (Australian Health Directory, 2008). The industry is expected to grow rapidly in the next 5 years (Northern Territory Government, 2008). The evolving demographics are expected to tighten the labor market in this industry. This is expected to offer stiff competition for talents among players in the industry within the next five years. Just like other developed countries, Australian health system depends heavily on doctors and nurses who have trained abroad. Twenty five percent of Australian doctor population is sourced from abroad (Mounir, Khalil and Bauchet, 2009). With the changing workforce expectation such as flexibility, mobility, worklife balance, leadership capability, decision making and learning and development, the Australian health sector will need to employ evidence based approach in the next five years to be able to attract and retain competent workforce in the health system (Australian Health Directory, 2008). Thus, managers in health industry will need to use current and accurate evidence to inform them on workforce decisions and planning models (Australian Government, 2010). Better data to the managers in the industry will enable them make better decisions. This approach is essential since the lead-time required for many emerging skills in the sector need several years to develop and hence managers will continue to depend on sourced skills from abroad. In some states like Northern Territory, the population has been on the upward trend courtesy of high fertility rates in the indigenous population and increased life expectancy (Australian Government, 2010). Thus, there is a growing demand for health services to the population, which is mainly driven by a combination of increased ageing population, community expectation and increased focus on the improvement of outcomes among indigenous communities. This demand is expected to heighten within a time frame of the next five to ten years (Australian Health Directory, 2008). To plan for the expected increase in the workforce during this timeframe, corporate measures such as education and training of new workforce need to begin now (Northern Territory Government, 2008). Players in the industry need to invest in the training of health and community service professionals in order to align the needs that are expected during this time frame and service needs (Harris, 2005). The players in the industry also need to strengthen the capability of their workforce. This strengthening should be in the form of workforce development and should take into consideration both current needs and the expected future needs (Australian Health Directory, 2008). Firms in the industry should strive to acquire the right workforce mix that is able to provide, lead and support high quality services. In addition, firms ought to provide an environment, which promotes learning to be prepared for the expected service needs in the timeframe of the next 5-10 years (Northern Territory Government, 2008). In addition, the firms need to put in place integrated and comprehensive approach to succession management. Large percentage of the ageing workforce population is expected to retire in the health industry (Australian Government, 2010). For instance, 16% of the workforce in the Northern territory is expected to retire within the next five years (Australian Health Directory, 2008). This implies that the sector must be prepared to attract and retain new workforce to replace the retiring workforce. Since it is nowadays challenging to attract and retain staff, players in the industry ought to focus their efforts on growing their own workforce by having a pipeline of capable staff and ensure equitable representation of indigenous people in their workforce (Northern Territory Government, 2008). Firm will need to increase their level of flexibility to enable them effectively recruit to remote communities and hard to recruit positions (Australian Government, 2010). Players in the industry need also to collaborate with communities to promote smooth transition from school to work (Mounir, Khalil and Bauchet, 2009). Given the expected pressure on the workforce within the time frame of the next 5-10 years in the health sector, players need to put into place mechanisms for attracting and retaining high caliber oversees trained staff (Australian Health Directory, 2008). They also ought to embrace generational opportunities. In a timeframe of more than ten years, firms in the health industry, which value their workers, will be in a better position to attract and retain talented workers (Barraclough and Gardner, 2007). This is because supply and demand for health workers in the next ten plus years is likely to continue maintaining inter-country movement of health workers and workforce will be on great demand because of the ever-increasing needs in the industry (Australian Health Directory, 2008). The growth in Australian population and the increased ageing of workforce is expected to increase demand for health workers. Firms therefore need to put into place career structures and pathways, which are a reflection of the staff wishes and needs at workplace (Northern Territory Government, 2008). Thus firms in the health sector should put into place mechanism which enhance employee well being and work life balance that are most valued by workers to be able to remain competitive in long run in the labor market. The approach employed should also be strategic and forward thinking (Harris, 2005). To be prepared for the challenges expected in over ten years to come, firms in the health sector should also put into place structures which ensure effective performance management and feedback system in addition to a culture within organization which is healthy and supportive (Australian Government, 2010). Geography and space The distribution of health workers in Australia is uneven. Statistics show that the number of health workers per 100,000 populations reduces as one move away from metropolitan areas (Northern Territory Government, 2008). The metropolitan areas have approximately 2,500 workers per a hundred thousand people while in the outskirts the number is approximately 2,000 workers per the same number of people (Australian Health Directory, 2008). Players in the industry therefore need to put into place mechanism to address this differences since the needs in rural setting for health workers is higher than that in the metropolitan setting (Australian Government, 2010). Public policy The Australian government has put in place various mechanisms to address proper management of health workforce (Barraclough and Gardner, 2007). One of these initiatives was the adoption of a national health workforce strategic framework in 2004 by the Australian health ministers (Australian Health Directory, 2008). This framework provides guidance for Australian workforce policy, education and training and health workforce development. In addition, Australian health workforce released a report in 2006, which was aimed at identifying and addressing issues affecting health workforce (Northern Territory Government, 2008). Furthermore, the council of Australian governments agreed in 2006 to a significant package reforms for the health workforce. This was aimed at promoting quality service provision, training and development of workforce and reducing the gap between service providers in different regions of the country. State of the economy Australian population is experiencing a rise in the number of single parents and dual income families. This implies that people will increasingly seek to fit work with life needs. The labor demand in health industry is expected to expand with time given that the workforce is increasingly ageing, the population is increasing and the needs of the communities are on the rise in the health sector (Australian Health Directory, 2008). Thus, the industry players need to be prepared on how to replace the staff that is expected to retire in the near future. The Australia is meditating on implementing e-healthy strategy and it has been noted that there is a shortage of health IT skills within the health industry (Northern Territory Government, 2008). Thus, the demand for these skills is on the rise and players in the industry need to put into place ways of attracting this workforce from abroad to help in provision of these services and training other workers (Borowski, Encel, and Ozanne, 2007). Industry players need to encourage their workforce to enhance prevention campaigns rather than treatment in the first quarter of 2011 given the increase in the incidence of chronic diseases, high indigenous population and geographic dispersion of the population within Australia. Relevant examples A relevant example of health sector organization is the Northern territory Government Department of Health and Families (DHF). The territory has a high incidence of chronic diseases, high population dispersion and high indigenous population, which affect the workforce needs of the firm. The firm has many areas of skill shortage in the health sector (Australian Health Directory, 2008). The territory currently relies on foreign sourced workforce in the health sector. However, the territory has put in place plans to be self sufficient in production of workforce it needs (Northern Territory Government, 2008). The territory is also in ambitious plan of closing the gap in life expectancy between the indigenous communities and the wider Australian population. The firm is focusing on a person and family centered health system and creating a diverse workforce with new boundaries (Australian Health Directory, 2008). The firm is also rearranging work, acute treatment, care and prevention to improve access by ageing population to health care. The DHF is also encouraging partnership with private enterprise, government and community sector to support social inclusion. To address challenges facing the firm, DHF has adopted a balanced and strategic approach to workforce planning which focuses on people and the population health needs. Conclusion and recommendations Several external factors affect workforce planning in health sector in Australia. This includes demographic, geographic, economic factors and factors affecting public policy. To plan for workforce in Australian health industry we recommend the following: The Australian health sector should employ evidence based approach in the next five years to be able to attract and retain competent workforce in the health system. To plan for the expected increase in the workforce during the next five to ten years, corporate measures such as education and training of new workforce need to begin now. Given that firms which value their workers, will be in a better position to attract and retain talented workers in over the next ten years Australian health sector need to put into place career structures and pathways, which are a reflection of the staff wishes and needs at workplace. To reduce disparities in workforce serving urban and rural setting in Australia, health sector need to put in place incentives which attract workers to rural setting. Reference Australian Government. 2010. Health administration. Available at http://australia.gov.au/topics/health-and-safety/health-administration [Accessed 27th Feb. 2011] Australian Health Directory. 2008. Health professionals in demand. Available at http://www.healthdirectory.com.au/health_workforce/ [accessed 27th Feb 2011] Barraclough, S., and Gardner, H. 2007. Analysing health policy: a problem-oriented approach. Sydney: Elsevier Australia. Borowski, A., Encel, S., and Ozanne, E. 2007. Longevity and social change in Australia. Queensland: UNSW Press. Harris, M. 2005. Managing health services: concepts and practice. Sydney: Elsevier Australia. Mounir, M., Khalil, I., and Bauchet, J. 2009. Ambient Assistive Health and Wellness Management in the Heart of the City: 7th International Conference on Smart Homes and Health Telematics, ICOST 2009, Tours, France, July 1-3, 2009, Proceedings. New York: Springer. Northern Territory Government. 2008. 2008-2011 Strategic Workforce Plan at a Glance. Available at http://digitallibrary.health.nt.gov.au/dspace/bitstream/10137/345/1/pol_StrategicWorkforcePlanataGlance.pdf [Accessed 27th Feb. 2011] Read More