EMPLOYMENT TRENDS IN AG · 2018-08-08 · EMPLOYMENT TRENDS IN AG 2018 TMA CONFERENCE 0 1000 2000 3000 4000 5000 6000 2013/14 2014/15 2015/16 2016/17 2017/18 Total Online Job Advertisement

EMPLOYMENT TRENDS IN AG2018 TMA CONFERENCE

w

EMPLOYMENT TRENDS IN AG

TMA Annual Conference | Sydney, NSW

Nigel CrawleyRimfire Resources

July 2018


0

1000

2000

3000

4000

5000

6000

2013/14 2014/15 2015/16 2016/17 2017/18

Total Online Job Advertisement numbers between FY 2013/14 and June 2017/18 (Source – Rimfire Resources Rural Jobs Index)


0

200

400

600

800

1000

1200

1400

1600

1800

2013/14 2014/15 2015/16 2016/17 2017/18

NSW Qld SA Tas Vic WA

Total Online Job Advertisement numbers between FY 2013/14 and June 2017/18 by State


Total Online Job Advertisement numbers between FY 2013/14 and June 2017/18 for Farm Machinery Only

80

90

100

110

120

130

140

150

160

170

FY 2013/14 FY 2014/15 FY 2015/16 FY 2016/17 FY 2017/18


Have salaries increased during the last 12 months?(Source – 2018 Rimfire Resources HR Review – 116 Participants)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018

Yes No


What was the average salary increase received by employees during the last 12 months?

0%

10%

20%

30%

40%

50%

60%

0.1 - 1% 1.1 - 2% 2.1 - 3% 3.1 - 4% 4.1 - 5% 5.1 – 10% More than 10%

2016 2017 2018


Are salaries likely to increase in the next 12 months?


What was the rate of employee turnover within your organisation in the last 12 months?

0%

2%

4%

6%

8%

10%

12%

14%

16%

0% 0.1 - 2% 2.1 - 4% 4.1 - 6% 6.1 - 8% 8.1 -10%

10.1 -12%

12.1 -14%

14.1 -16%

16.1 -18%

18.1 -20%

18+% 20+%


Is the size of your workforce likely to change in the next 2 years?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%

Increase

Decrease

Stay the same

2016 2017 2018


Please indicate what this increase is as a result of

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95%

Growth strategy

Natural growth

Acquisition/merger

Other

2016 2017 2018


In the last 12 months, have you noticed a need to adopt a more flexible staffing approach?

0%

10%

20%

30%

40%

50%

60%

70%

2016 2017 2018

Yes No


What best describes the staff performance reward?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bonus/Incentive Profit Share Commission Share/StockOptions

Long TermIncentive

Other

2016 2017 2018


Which of the following are your main objectives for introducing a staff performance reward system?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Improve businessperformance

Achieve businessgoals

Boostteam/divisionperformance

Enhance individualperformance

Attract potentialemployees

Other

2016 2017 2018


Did employees receive a bonus in the last financial year?

0%

10%

20%

30%

40%

50%

60%

Yes, all staff Yes, some staff No

2016 2017 2018


What roles do you find difficult to recruit for?

0%

10%

20%

30%

40%

50%

60%

Sales Marketing Labour Technical Management Finance andAccounts

Executive Other

2016 2017 2018


Which higher education disciplines did your graduates come from?

0% 10% 20% 30% 40% 50% 60% 70% 80%

Science

Commerce

Economics

Agribusiness

Other


Which roles did you employ graduates directly into?

0% 5% 10% 15% 20% 25% 30% 35% 40%

Dedicated Graduate Program

Sales

Marketing

Customer Service

Technical

Administration

Finance

Farm Production

Analyst

R&D

Supply Chain

Trading

Other


On average, how long does it take for a graduate to contribute meaningfully to the organisation?

0% 5% 10% 15% 20% 25% 30% 35% 40%

Less than 3 months

3 - 6 months

6 - 12 months

12 - 18 months

18 months - 2 years


What has been the greatest benefit to your business in hiring graduates?

0% 5% 10% 15% 20% 25% 30%

They bring innovative ideas

Wages cost (Lower than experiencedcandidates)

Specific skills from their studies/degree

Diversity

Other


On average, how long have graduates been employed within your business?

0%

5%

10%

15%

20%

25%

30%

35%

Less than 6months

6 - 12months

12 months -2 years

2 - 3 years 3 - 5 years 5 - 10 years 10+ years


w

EMERGING SKILLS IN AG

TMA Annual Conference | Sydney, NSW

Nigel CrawleyRimfire Resources

July 2018


Industry snapshot - Fast Facts

AUSTRALIAN AGRICULTURE

Value of Australian farm production

$53 billion

Industry contribution to Australia’s GDP

2%

Percentage of world agricultural production

1%

Producing sufficient food to feed

60 million people

Percentage of agricultural produce exported

65%

Percentage of of Australia’s tradable exports

15%

Median age of industry workers

50 years

People employed in the agricultural sector

270,000 (or 2% of the population)

People employed in the food, tobacco and beverage manufacturing sector

223,000

Percentage of agricultural employees living outside capital cities

89%

Source: ABARES


AGRICULTURE GROWING IN IMPORTANCE

1

1.4

1.6

2.1

2.3

2.4

2.7

2.8

2.8

2.9

3.1

3.2

3.3

7.6

8

8

8.2

11.9

13.3

16.2

0 5 10 15 20

Media

Banking

Business

ICT

Telecomunications

Construction

Water & Waste Services

Manufacturing

Health

Public Admin

Retail & Wholesale

Transport & Logistics

Other Education & Training

Wealth Management

International Education

Oil

Tourism

Gas

Mining

Agribusiness

• Australia is transitioning from the mining boom to the dining boom

• Global demand for food increasing rapidly –70% more food required by 2050

• Australia can’t feed the world but it can increase production and exports

• Success will depend on our competiveness

Source: Delloite Access Economics, Positioning for Prosperity

Sectors of relative comparative advantage for AustraliaRelative advantage score

Australian average (5.2)


CHALLENGES

• Declining productivity

• Managing drought

• Ageing farmers

• Less farms

• Higher input costs and declining cash income

• Tightening lending criteria

• Quality and quantity of our infrastructure and transport networkSource: RIRDC, ABS, Neil Clark

Australian farmer population by age group

0%

20%

40%

60%

80%

100%

1976 1981 1986 1991 1996 2001 2006 2011

55+

35-55

<35

Number of Australian Farms(thousands)

120

130

140

150

160

FY06 FY08 FY10 FY12 FY14 FY16


CURRENT AGRI SKILLS LANDSCAPE

• Near record levels of employment

• The number of people employed in regional and rural Australia is falling

• Labour is more mobile and transferable and the workforce is ageing


• Competition for both skilled and unskilled labour is fierce – not just in regional and rural Australia

• Generally, businesses have not focussed enough on the management of people and the development of their workforce



• Generational change – employers cannot assume loyalty

• Demographic change – more females working in more “traditional” roles


• More agri grads but less from farming background


• Increasing legislation

✓ OH&S

✓ Employment law

• Technologically ‘savvy’ workforce

• Workforce ‘skill sets’ changing



SO, WHAT DOES ALL THIS MEAN?

• Attitudes towards work are changing

• Jobs are seen as more transactional

• We all need to embrace workforce planning

• We are in a market with high labour mobility and skills transference

• There is (and will be in the future) a talent shortage

• The market has swung from an employer driven market to a candidate driven market


SO WHAT WILL THE FUTURE LOOK LIKE IN REGARD TO SKILLS & AGRI?

• Speed of technology development is rapid

• Digital ag is rapidly becoming standard operating practice

Source: Digital Farmers Conference, AFI June 2018

• Everyday there are new technology challenges for farmers to embrace



• Biggest gap is not so much the understanding of the technology, rather how people will interact with it


* Still a need for grower trusted advisors to explain this technology and get it adopted.


• Digital Ag provides opportunity for new entrants

• Startups and technology developers bring excitement and new ways of doing things

• Rural communities are getting more connected




• Digital Ag is providing consumers transparency and traceability they demand (provenance)

• Helps producers talk to the consumer




ONE EXAMPLE OF CONSIDERABLE SKILL SET CHANGE IN THE AGRI SECTOR THAT IS GROWING RAPIDLY…

Corporate farming

• Expectation of skills, such as:

✓ Leadership

✓ People management

✓ Budgeting

✓ Financial analysis

✓ Understanding of new technology

✓ Operational and corporate reporting

✓ Presenting to a Board

• All this in addition to running the farm or farms


GOT A QUESTION

OR JUST WANT TO KEEP IN TOUCH?

THANK YOU

Nigel Crawley1300 380 [email protected]

EMPLOYMENT TRENDS IN AG · 2018-08-08 · EMPLOYMENT TRENDS IN AG 2018 TMA CONFERENCE 0 1000 2000 3000 4000 5000 6000 2013/14 2014/15 2015/16 2016/17 2017/18 Total Online Job Advertisement

Documents