bernard salt - kpmg - the future of work: the big picture

Safety Institute of Australia

The Future of Work: The Big PictureBernard Salt

WINNERS

LOSERS

Sydney

Melbourne

Hobart

Adelaide

Perth

Brisbane

Canberra

Australians have always been driven by lifestyle

Source: Based on Australian Bureau of Statistics data; KPMG Demographics

Areas of high population growth (1.5% pa) and net loss between 1992 and 2015

Population1992: 18.0m2015: 24.0m

© 2016 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Australia must develop a culture of innovation

United States Year USbn1. Apple 1976 522 2. Google 1998 5083. Microsoft 1975 4124. Exxon Mobil 1870 3215. Facebook 2004 3116. Berkshire Hathaway 1955 3107. Amazon.com 1994 2988. Johnson & Johnson 1886 2839. General Electric 1892 26610. Wells Fargo 1852 250

Australia Year USbn1. BHP Billiton 1885 1102. Commonwealth Bank 1911 943. Westpac Banking 1817 72 4. National Australia Bank 1893 51 5. ANZ 1835 50 6. Telstra 1901 48 7. CSL 1916 35 8. Wesfarmers 1914 33 9. Woolworths 1924 22 10. Macquarie Group 1970 18

Source: Bloomberg Terminal Data as at 29 January 2016; KPMG Demographics


A generation of prosperity has created a culture of aspiration


Per cent change in Australian GDP by quarter from March 1960 to March 2016

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

3

Mar

-196

0O

ct-1

960

May

-196

1D

ec-1

961

Jul-1

962

Feb-

1963

Sep-

1963

Apr-1

964

Nov

-196

4Ju

n-19

65Ja

n-19

66Au

g-19

66M

ar-1

967

Oct

-196

7M

ay-1

968

Dec

-196

8Ju

l-196

9Fe

b-19

70Se

p-19

70Ap

r-197

1N

ov-1

971

Jun-

1972

Jan-

1973

Aug-

1973

Mar

-197

4O

ct-1

974

May

-197

5D

ec-1

975

Jul-1

976

Feb-

1977

Sep-

1977

Apr-1

978

Nov

-197

8Ju

n-19

79Ja

n-19

80Au

g-19

80M

ar-1

981

Oct

-198

1M

ay-1

982

Dec

-198

2Ju

l-198

3Fe

b-19

84Se

p-19

84Ap

r-198

5N

ov-1

985

Jun-

1986

Jan-

1987

Aug-

1987

Mar

-198

8O

ct-1

988

May

-198

9D

ec-1

989

Jul-1

990

Feb-

1991

Sep-

1991

Apr-1

992

Nov

-199

2Ju

n-19

93Ja

n-19

94Au

g-19

94M

ar-1

995

Oct

-199

5M

ay-1

996

Dec

-199

6Ju

l-199

7Fe

b-19

98Se

p-19

98Ap

r-199

9N

ov-1

999

Jun-

2000

Jan-

2001

Aug-

2001

Mar

-200

2O

ct-2

002

May

-200

3D

ec-2

003

Jul-2

004

Feb-

2005

Sep-

2005

Apr-2

006

Nov

-200

6Ju

n-20

07Ja

n-20

08Au

g-20

08M

ar-2

009

Oct

-200

9M

ay-2

010

Dec

-201

0Ju

l-201

1Fe

b-20

12Se

p-20

12Ap

r-201

3N

ov-2

013

Jun-

2014

Jan-

2015

Aug-

2015

Mar

-201

6

1960s 1970s 1980s 1990s 2000s 2010s

MenziesWhitlam

FraserHawke

GSTGFC


Australians are dividing the lifecycle into ‘thirds’

0 9010 20 30 40 50 60 70 80

1976Child Teen OldAdult

71

2016Child Adolescence Lifestyle OldRetiredAdult

82

1936Child Adult Old

63

Change in life expectancy over 80 years in AustraliaSource: Based on Australian Bureau of Statistics data; KPMG Demographics


Jobs on the rise are based around healthcare

Healthcare

Professionals

16 years May 2016 – up 3.0m (8.9m – 11.9m)

Construction

May 2000 – May 2016 (000)Jobs grown: 3,412Jobs contracted: 327Net jobs added: 3,085

Heal

thca

re&

Soci

al A

ssis

t.

Prof

essi

onal

/Sc

ient

ific/

Tech

.

Publ

ic A

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&

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ty

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m &

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d

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in &

Sup

port

Min

ing

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ade

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& R

ecre

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nce

Oth

er S

ervi

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Educ

atio

n &

Trai

ning

Who

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rade

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iring

&Re

al E

stat

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Med

ia &

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ufac

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g

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ty/G

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ultu

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shin

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spor

t/Pos

tal/

War

ehou

se

Cons

truct

ion


Education

-200

-100

0

100

200

300

400

500

600

700

800


Baby boomers are transforming the workforce by refusing to retire

-100,000

0

100,000

200,000

300,000

400,000

500,000

600,000

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 plus

Change in Australian workforce (full-time & part-time) July 2000 to July 2016

2000: 9.0 million 2016: 12.0 million Net growth: 3.0 million


Gen X Baby BoomersGen Y0.8m or 21% 0.8m or 20% 1.2m or 129%


Australia is growing jobs in caring, selling, managing and “doing” …

Net change in employment by occupation in Australia over 5 years to 2011Source: Based on Australian Bureau of Statistics data; KPMG Demographics

Number Change 2006-2011

1 Aged or Disabled Carer 30,800

2 General Clerk 30,100

3 Child Care Worker 21,000

4 Electrician (General) 20,100

5 Checkout Operator 20,000

6 Accounts Clerk 17,600

7 Program or Project Administrator 16,000

8 Office Manager 16,000

9 Truck Driver (General) 14,400

10 Sales Assistant (General) 14,000


11 Teachers’ Aide 13,900

12 Miner 13,600

13 Barista 13,400

14 Chef 13,100

15 Accountant (General) 13,000

16 Carpenter 11,500

17 ICT Project Manager 11,500

18 Solicitor 11,400

19 Primary School Teacher 11,400

20 Fitter (General) 10,700


… but is contracting jobs in typing, assembling, farming and “filling”

Net change in employment by occupation in Australia over 5 years to 2011



11 Dairy Cattle Farmer -3,000

12 Sewing Machinist -2,600

13 Safety Inspector -2,500

14 Switchboard Operator -2,500

15 Mixed Livestock Farmer -2,400

16 Credit or Loans Officer -2,200

17 Residential Care Officer -2,200

18 Analyst Programmer -2,100

19 Integration Aide -2,000

20 Telecommunications Technician -1,900


1 Secretary (General) -28,700

2 Corporate Services Manager -14,400

3 Product Assembler -7,800

4 Mixed Shelf Filler -6,400

5 Crop & Livestock Farmer -6,600

6 Medical Laboratory -5,500

7 Office Cashier -4,700

8 Metal Engineering Process Worker -4,500

9 Real Estate Representative -3,500

10 Vineyard Worker -3,100


Is there an OH&S risk associated with an older truck driving workforce?

Age profile of Truck Drivers (General) between the 2006 and 2011 Censuses


2006: 121,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

2011: 135,400Change: 14,400 or 12%Aged 50+: 40%


Net growth in population aged 65+ over 100 years in AustraliaSource: Based on Australian Bureau of Statistics data; KPMG Demographics

Australia is embarking upon an “era of ageing”

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

1950

1954

1958

1962

1966

1970

1974

1978

1982

1986

1990

1994

1998

2002

2006

2010

2014

2018

2022

2026

2030

2034

2038

2042

2046

2050

1950 20001975 2025 2050

1950: 0.7m2016: 3.7m2050: 7.9m

© 2016 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation. Source: Icons made by Freepik from www.flaticon.com; KPMG Demographics

Points to consider

The oldest Boomer is now 70 … they

are looking to redefine the

retirement stage of the lifecycle by

remaining longer in the workforce

1

Business opportunities in

succession planning, health & wellness,

reward travel, downsizing, spirituality,

technology, re-partnering

2

More workers working into their

60s increases safety and risk factors … business needs to recalibrate work tasks so as to

minimise OH&S issues

3

The ageing workforce can lead to greater

diversity of management and

operational thinking … older workers hold

corporate memory, business connections and strategic insight

4


Introducing Australia’s bachelor hot spot …

Mullumbimby1.63:1

Roxby Downs1.88:1

Hotspot suburbs for single men and women aged 25-34 at the 2011 Census

“Highway of Love”


Barrier Highway


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Bernard Salt Demographics

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© 2016 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMGInternational Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Liability limited by a scheme approved under Professional Standards Legislation.

The information contained in this document is of a general nature and is not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided for information purposes only and does not constitute, nor should it be regarded in any manner whatsoever, as advice and is not intended to influence a person in making a decision, including, if applicable, in relation to any financial product or an interest in a financial product. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

To the extent permissible by law, KPMG and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise).


Our houses have changed … and so too have our expectations

Today1950s


Australia has a globally unique cosmopolitan culture

Source: relevant local census data; KPMG Demographics

Proportion of city population comprising international-born residents as measured by local censuses


Smartphone technology has changed the way we live and work

Source: KPMG Demographics

Work within boundaries

Loyalty to Organisation

Organise life around work

20th Century

Work without boundaries

21st Century

Loyalty to Self

Organise work around life

Soft skillsTechnical skills


From Boomers to Xers and Ys … and finally to Zeds


HierarchicalIndulged their kidsDepression era parentsSandwich generation

Retirement

BABYBOOMERS

■ Born 1946 – 1964■ Today 52 – 70

YGENERATION

Special … bubble-wrapChaotic connectionEntrepreneurialsDisappointed generation?

Skilling up

■ Born 1983 – 2000■ Today 16 – 33

Parents results-orientedYouth in straitened timesHighly educated, globalPragmatists … fixers

School kids

ZGENERATION

■ Born 2001 – 2019■ Today 0 – 15

Forgotten generationWrong place … wrong timeNo workplace guiltAngsty about Ys

Peak work

■ Born 1965 – 1982■ Today 34 – 51

XGENERATION


New acronyms for our newest tribesPUMCINS …

→ Professional Urban Middle Class In Nice Suburbs

…NETTELs ←Not Enough Time To Enjoy Life

KIPPERS …→ Kids In Parents Pockets Eroding Retirement Savings

…LOMBARDS←Lots Of Money But A Real Dickhead


bernard salt - kpmg - the future of work: the big picture

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