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BEST PRACTICE RESEARCH Attraction, recruitment and retention within the Queensland Tourism Industry

October 2013

Prepared by: Prepared by Norton Rose Fullbright and BDO on behalf of Queensland Tourism Industry Council Queensland Tourism Industry Council PO BOX 13162, GEORGE STREET QLD 4003 Telephone (07) 3236 1445 December 2012

This document has been developed with the support of the Queensland Government

TABLE OF CONTENTS

SECTION 1: EXECUTIVE SUMMARY 2

SECTION 2: WORKFORCE ENGAGEMENT STRATEGY 7

SECTION 3: ENVIRONMENTAL SCAN AND INDUSTRY RESEARCH FINDINGS 14

Workforce Challenges, Programs and Initiatives 16

Career Opportunities and the Skills Passport 21

Recruitment Strategies 23

Retention Strategies 26

SECTION 4: HR PRACTICES AND ENGAGEMENT 36

Employee Value Proposition 38

Appendix 1: Methodology, Approach and Survey Demographics 43

Appendix 2: Summary of Policies & Programs (Commonwealth & State Government) 45

2

SECTION 1: EXECUTIVE SUMMARY

The importance of the Tourism Industry to the Queensland economy

Tourism is one of ‘the four pillars of the Queensland economy’; as a result the State government has

identified the need to continue to invest in the State’s skills system to be more responsive to the needs of

the Tourism Industry.

The Tourism Industry in Queensland directly contributed $10.5 billion to gross state product and supports

approximately 136,000 (5.9%) Queensland jobs1. The Tourism Industry is one of the highest employing

industries in the state. When combined with another 99,000 indirect Tourism Industry jobs it represents

10.1% of total employment in Queensland. Tourism supports 55,700 businesses, representing 12.9% of all

registered businesses in the state.2

The Tourism Industry is made up of a number of sectors including accommodation, adventure tourism,

transportation, travel trade, food and beverage, tourism services, events and conferences, and

attractions. Of all of the sectors food and beverage (cafes, restaurants and takeaway food service etc.)

accounts for the largest share of tourism employment (27%), followed by retail trade (18%) and

accommodation (13.5%)3.

Employment is spread across small, medium and large employers however small businesses represent the

predominant employer profile. Small businesses employing less than 20 employees accounts for 85% of

total Tourism Industry employment. Many of these small businesses (45%) operate seasonally and employ

largely transient and seasonal workforces.

The State Government has laid down a blueprint to help the Tourism Industry achieve a number of key

objectives including an ambition of achieving overnight visitor expenditure of $30 billion by 2020. The

DestinationQ blueprint 2012-2015 also identifies the need to maintain Government’s focus on tourism in

key areas including skills, labour and career development.

Given its current and anticipated contribution to gross state product, it is critical that the industry is able

to present a viable and robust value proposition to attract, retain and engage employees to ensure the

State is best placed to maximise on the contribution of the industry to the broader economic growth and

stability of Queensland.

Industry governance and funding

The Tourism Industry in Queensland is governed and promoted by a significant number of organisations.

This is largely a consequence of the size and importance of the industry to the State. It does however

create a level of complexity that may hinder access to programs for small business owners who make up

the vast majority of employers within the industry.

Collectively there are over 700+ different programs available for employers and employees within the

Tourism Industry. On the whole it would appear that many of the industry programs are under-utilised.

Given the sheer number of programmes and levels of investment made by State and Commonwealth

Governments ($20 million investment package 2012-13 in Queensland, including a $7 million RTO

partnership fund) there is a need to consider the overall effectiveness of these various programs. The

scale and number of programs would also suggest there is a potential for duplication and program

1 Tourism and Events Queensland – Tourism Economic Key Facts 5 July 2013 2 Tourism Research Australia 3 State of the Industry, Australian Government 2012

3

inefficiency. Any such review would allow for improvements in program efficacy and re-direct funds to

areas where they will have the greatest impact.

The lack of program take-up would suggest that more could be done to increase the level of awareness of

the various commonwealth, state, regional and local programs. In addition there does not appear to be a

significant level of collaboration at a local and regional level to help share knowledge and promote

employment opportunities within the Tourism Industry.

Scope and Deliverables of the Engagement

The Queensland Tourism Industry Council (QTIC) called for expressions of interest from potential providers

and engaged Norton Rose Fulbright to conduct research on industry best practice, focussing on the

attraction, recruitment and retention of the tourism industry workforce. Norton Rose Fulbright then

engaged BDO to conduct the research and prepare this report.

The scope of the engagement embraced three key areas, which were to:

Undertake an environmental scan of national and Queensland industry and government initiatives,

associated programs and/or activity related to attraction, recruitment and retention. Identify and

notate best practice activity.

Research and consult with Queensland tourism industry operators, human resource managers and

employees to establish successful attraction, recruitment and retention strategies.

Development of a Queensland tourism industry best practice strategy and plan related and

contextualised to the four tourism sectors (Accommodation, Adventure Tourism, Food and Beverage

and Tourism Services).

The project deliverable was a report that contained:

1. The outcomes of the environmental scan of existing policy/programs in Queensland and around

Australia

2. Recommendations on industry practices, industry needs and recommendations related to attraction,

recruitment and retention of employees within the Queensland tourism industry across the four

sectors

3. A strategy and plan for attraction, recruitment and retention of tourism employees

4. A set of guidelines and tips for industry employers on how to improve employee engagement by

improving HR practices and structures.

Information on the approach and methodology adopted to achieve the deliverables of the engagement is

outlined in Appendix 1.

Section 2 of this Final Report outlines the recommended plan to improve the attraction, recruitment and

retention of the tourism workforce, which has been termed the “Queensland Tourism Best Practice

Workforce Engagement Strategy”. This plan has been informed by our research and consultation findings

and comprises five strategic imperatives and industry required outcomes. Key actions and suggested

priorities have than been devised to achieve each of the five key goals.

Four of these strategic imperatives are related to high-level themes which will mainly require an industry-

wide approach and coordinated action. Industry research and consultation findings pertaining to

increasing workforce engagement, raising the industry profile, fostering industry collaboration and

minimising skill shortages are fully discussed in Section 3 of this report.

The fifth strategic imperative of the plan was to improve HR management practices and structures across

employers generally within the industry, which would contribute at an enterprise level to improving the

attraction and retention of the industry’s workforce. Research and consultation findings more applicable

to tourism industry employers and their staff have been summarised in Section 4 of this Final Report.

4

A booklet prepared for industry employers providing guidelines and tips on improving employee

engagement has been designed as a stand-alone document, and has been provided separately to this Final

Report.

Considerations - The need for Structural Industry Reform

Given the importance of the Industry, the current level of investment by Government and the relatively

low levels of workforce engagement it is recommended that a high level structural review of the Tourism

Industry be considered.

To ensure the Industry is best placed to maximise on its contribution to the economic growth and

sustainability of the State, there is a need for significant structural workplace reforms that will:

Ensure employers are able to meet the future growth expectations of the Industry in a sustained

manner, i.e. Owner/operators are able to meet industry service delivery demands and do so in a way

that doesn't significantly impact their employment cost base

Allow the Industry to shift remuneration arrangements and offerings to be more in line with general

market practice and provide a level of parity with competing industries

Due to not being the focus of this review, these considerations are not further substantiated within the

context of this Report.

It is strongly urged that the recommendations contained within this Report are considered in the broader

context of the need for significant structural reform in order to best place the Industry to achieve a

positive shift in its ability to grow the value of its human capital and increase overall productivity

outcomes.

Best Practice Workforce Engagement Strategy and Recommendations of this Review

The perceived lack of training and development, limited career opportunities, seasonal nature of

employment, and non-competitive remuneration practices all add to lack of overall appeal to the sector

and restricts the potential candidate pool for prospective employers.

Many employers considered that providing more learning and development opportunities, promoting the

benefits of working within the industry, simplified employment conditions and aligning with educational

institutions would assist them to attract more suitable candidates.

Flexibility of employment, job satisfaction and workplace culture are factors that are highly valued by

employees working in the industry. Many employers in the industry are not aware of the value placed on

these aspects of their employment by their employees; and ways for industry employers of all sizes to

develop a more compelling employee value proposition (EVP) have been suggested.

Remuneration, whilst not considered a priority to new recruits, increases in importance after individuals

commence employment within the industry. Opportunities exist for employers to develop salary

structures that have a limited degree of salary progression (perhaps covering the first 2 to 3 years of an

employee’s tenure), implement non-financial reward programs to increase engagement, and perhaps also

to link reward and performance. Although it is acknowledged that such initiatives may also increase

employment costs somewhat, such increases will be more than paid for by reducing unwanted turnover

and hence improving productivity at an enterprise level.

In order to improve the overall attraction, recruitment and retention of employees to the Tourism Industry

it is recommended that the Best Practice Workforce Engagement Strategy plan outlined in detail in the

next section of this Report be adopted and pursued by the Queensland Tourism Industry. The plan

identifies five strategic imperatives for industry to focus on over the next few years, as well as a number

5

of transitional actions to be pursued. A summary and outline version of the plan is shown below, and the

full details are provided in Section 2 of this Report.

Industry and Employment Structure Reforms

Recommendations/Key Actions

1 Government engage key stakeholder groups in a review of the various industry programs to determine

the effectiveness of these programs in promoting tourism as an employment industry of choice

2 Rationalise and redirect funding from ineffective programs to assist with changing the landscape of

the Tourism Industry and its overall attractiveness to the general labour market

3 Undertake significant workplace reforms that allow tourism owners and operators to compete

effectively for skilled and capable employees

3.1 Review of current remuneration practices to determine where and how the industry needs to

improve its overall reward and overall employment offerings

3.2 Review the impact of current award structures and employment terms and conditions on

service delivery expectations

[Refer Section 3; pp 21, 22, 29, 30 and 36]

Raise the industry profile


4 Develop and implement a comprehensive plan that raises the awareness of the various tourism jobs

and career opportunities within the industry. Suggested actions include:

4.1 Develop and showcase actual career profiles of employees working within the industry

4.2 Engaging with key stakeholders and communities to promote awareness of tourism jobs and

careers

4.3 Use appropriate tools and methods to promote employment within the tourism industry to

youth and schools that highlights the various roles and career choices available

[Refer Section 3; pp 32 – 35]

Foster industry collaboration


5 Local and regional support is provided to assist with recruitment and help facilitate collaboration

amongst industry employers. Some of the possible actions would include:

5.1 Develop and establish employer hubs to allow for collaboration and promotion of job

opportunities with the local area and the region more broadly

5.2 Regional Training Organisations (RTOs) facilitate information sharing and collaboration amongst

local industry employers

6 Develop industry “one-stop” regional portals that include tools and resources to assist employers

meet recruitment needs and their employment obligations.

7 Develop and facilitate collaboration amongst industry employers to develop career paths for their

employees that may extend beyond current employment arrangements.


6

Minimise skill shortages


8 Develop and foster collaboration between industry and educational organisations to ensure an

adequate supply of skills and capabilities to meet industry demands. Collaboration could include:

8.1 Develop an Industry Skills Shortage Priority Taskforce

8.2 Local community and regional meetings to discuss industry skills demands, availability and

training requirements

8.3 Introduce mechanisms for employers and employees to promote skills needs and job

opportunities

8.4 Connect employers, job seekers and students – locally, regionally and nationally

9 Develop and implement strategies to help minimise the impact of workforce shortages and retention

challenges faced by seasonal, regional and remote rural employers

9.1 Foster collaboration and partnerships with summer and winter employers to explore the

possibility of the exchange of seasonal and/or part time workers – for example collaboration

could be through the use of primary industries work programs

[Refer Section 3; pp 24, 25, 36 and 37]

Improve HR management practices and structures at the enterprise level


10 Promote the use progressive of human resource practices and structures by tourism employers. Some

of the initiatives could include:

10.1 Provide coaching and mentoring of owner-operators on progressive HR practices including job

sharing, and how to provide flexibility to employees

10.2 Recognise and showcase employers who use effective HR practices to help attract and retain

their workforces

10.3 Educate employers on their legal employment obligations and the cost benefits of improving

retention through creating and managing expectations, promoting more intangible but valued

employment arrangements and rewarding performance

10.4 Provide a range of practical best practice HR guides to employers related to people

management practices and structures that will help them attract and retain the right workers.


In addition to the above recommendations and key actions, the researchers were specifically asked to

examine the skills passport concept, including the level of awareness across tourism employee and

employer groups.

On the basis that the Skills Passport has a very low level of awareness and an extremely low usage, it is

recommended that:

The Skills Passport as a stand-alone concept be discontinued and an exit strategy devised

Industry stakeholders making greater use of available Industry forums / aligned strategies and

activities to educate operators and employees of the opportunities to utilise existing social media

infrastructure (such as LinkedIn, Seek, My CV) to fulfil the need to better connect employers and

employees and allow employers and employees to self-promote.


At the time of publishing this Report the Tourism Industry Workforce Plan was being developed.

Recommendations and key actions arising from this Report will need to be considered in light of the

findings and recommendations identified in the industry workforce plan.

7

SECTION 2: WORKFORCE ENGAGEMENT STRATEGY

The recent global economic downturn, the high costs of living, travel and the reoccurring presence of

natural disasters have all contributed to the limited growth and challenges in the tourism sector within

Queensland. The industry has also experienced significant workforce shortages, restricting future growth

opportunities. Recent economic data points to an increase in international and domestic demand for

tourism services which will further exacerbate the need for capable employees.

The Queensland government has recognised tourism as one of ‘the four pillars of the economy’ and aims

to get the industry back on track as Australia’s number one tourist destination by 2020.

The Government’s “DestinationQ” strategy has identified the need to continue to invest in the state’s

skills system to be more responsive to the needs of the Tourism Industry. In partnership with industry

groups the Queensland Government has also introduced a range of initiatives and programs that aim to

directly contribute to the supply and development of the tourism workforce.

There is a critical requirement to ensure an adequate supply of capable workers are ready to meet the

current and future workforce needs of the sector and in turn help support the achievement of the

DestinationQ strategic imperatives.

A key priority is the need to enhance the development and career opportunities available to prospective

employees and to promote the sector’s overall employee value proposition.

This Report provides a best practice strategy and recommendations to assist in improving the attraction,

recruitment and retention of the Tourism Industry workforce. Details of the plan are provided in the

following pages. Later sections of this Report discuss the environment in which the overall tourism

workforce operates, provide a summary of current best practice initiatives and a high level plan to assist

employers attract, recruit and retain a capable workforce. More practical guidelines and tips for tourism

employers have been collated into a booklet form which is presented in Appendix 3.

The Queensland Tourism Best Practice Workforce Engagement Strategy developed as a key deliverable

of this study starts with the overall desired outcome of increased workforce attraction, recruitment and

retention within the Queensland Tourism Industry. Five strategic goals and associated actions were

believed to be critical in achieving this overall objective. The five strategic goals were defined as:

1. Industry and Employment Structure Reforms

2. Raise the industry profile

3. Foster industry collaboration

4. Minimise skill shortages

5. Improve HR management practices and structures at the enterprise level.

The plan outlined on the following pages defines each goal and outlines the objective sought, and the

current and desired future state. The plan also identifies a number of key actions which will be necessary

to achieve each goal. A timeframe/ priority for each action spanning the next two years has also been

suggested, as well as which organisations could be the lead agency for each activity.

8

Queensland Tourism — Best Practice Workforce Engagement Strategy

The next few pages discuss each of the strategic imperatives and key actions in more detail, including a

suggested priority/timeframe. In addition, agencies which could perhaps take the lead for key actions as

well as other agencies which could support such actions have been identified.

Key D

rivers

to

achie

ve th

e

overa

ll o

bje

cti

ve

STRATEGIC IMPERATIVES TO ACHIEVE THE REQUIRED OUTCOME


2. Raise Industry Profile

3. Foster Industry Collaboration

4. Minimise Skills Shortages

5. Improve HR Management Practices and Structures at the Enterprise Level

Short

term

opera

tional outc

om

es

and k

ey a

cti

ons

1-2

years

KEY ACTIVITIES AND OPERATIONAL PRIORITIES FOR INDUSTRY


• review the effectiveness of the extensive suite of industry programs

• rationalise programs and redirect funding

• review remuneration and other reward practices compared to other industries

• review award structures, penalty rates and other employment arrangements

2. Raise Industry Profile

• develop an industry plan to raise awareness of industry jobs and careers

• showcase actual career profiles of tourism employees

• engage industry stakeholders to promote awareness of jobs and careers

• youth and schools promotion

3. Foster Industry Collaboration

• local and regional support is provided to facilitate collaboration

• develop employer hubs to facilitate local and regional employer collaboration

• RTOs to facilitate information sharing amongst local industry employers

• develop ‘one-stop’ regional portals to assist industry employers

• encourage industry employers to develop career pathways for employees outside their

current employment

4. Minimise Skills Shortages

• foster > collaboration between industry and educational organisations

• develop an Industry Skills Shortage Priority Taskforce

• local and regional forums to identify skill demands and training requirements

• seasonal employment exchange programs

• promote flexible work practices to improve retention

5. Improve HR Management Practices and Structures

• coaching and mentoring

• showcase best practice leaders

• education - employer legal obligations and the benefits of reducing turnover

• practical and best-practice HR guides for employers

Overall

Objective

INCREASED WORKFORCE ATTRACTION, RECRUITMENT AND RETENTION WITHIN

THE QUEENSLAND TOURISM INDUSTRY

9

Operational Priorities for Execution

Strategic Imperative 1: Industry and Employment Structure Reforms

Objective: Improved workforce engagement and participation

Current State:

Future State:

Large number of industry programs that have

not been properly evaluated and employment

structures that are not competitive

Effective programs are better funded and

industrial structures are affordable, more flexible

and more competitive

Key actions, timeframe and lead agencies:

ACTION PRIORITY LEAD SUPPORT

AGENCIES

Review existing programs to

reduce duplication and

redundancy, and identify those

programs which more

successfully promote tourism as

an employment industry of

choice

Immediate QTIC

National and

State Government

Departments, TEQ, RTO

industry

Redirect funding to key programs

which will have a more

significant impact on changing

the perception of the industry as

an attractive career choice

Immediate

National and

State Government

Departments,

QTIC

Industry, RTOs, LTOs

Review industry remuneration

and reward structures to assess

where the industry needs to

improve its overall reward

offerings compared to other

industries

Medium –

Longer Term

Department of

Education, Employment

and Workplace

Relations,

QTIC

National Tourism

Alliance, Industry,

QTIC Associations Council

Devise workplace reforms

(involving matters such as

penalty rates and working

conditions) which will have a

positive impact on service

delivery in the industry

Medium –

Longer Term

Department of

Education, Employment

and Workplace

Relations

QTIC

National Tourism

Alliance, Industry,

QTIC Associations Council

Note: Immediate- within 3 months, Medium- Long term 6 -12 months

10

Strategic Imperative 2: Raise the Tourism Industry Profile

Objective: Increase awareness of tourism jobs and career choices in the wider community

Current State: Future State:

General perception of limited career and

development opportunities in the tourism

industry

Tourism industry seen as providing a diverse and

unique range of career opportunities for

employees



AGENCIES

Develop a comprehensive

industry plan that raises

awareness of the various tourism

jobs within the industry

Immediate QTIC

National and

State Government

Departments, TEQ,

industry, RTOs, LTOs

State, private and

independent schools

Develop and showcase actual

career profiles of successful

employees within the tourism

industry

Medium –

Longer Term QTIC

Tourism and Events

Queensland, Industry

Engage with key stakeholders and

communities to promote

awareness of tourism jobs and

careers

Medium –

Longer Term QTIC

Tourism and Events

Queensland RTOs, LTOs,

Industry

Use appropriate tools and

methods to promote employment

within the tourism industry to

youth and schools that highlights

the various roles and career

choices available

Medium –

Longer Term

QTIC,

Tourism and Events

Queensland

State Government

Departments

RTOs, LTOs State and

independent schools,

industry


11

Strategic Imperative 3: Foster Industry Collaboration

Objective: Develop collaborative models to support local needs


Industry collaboration lacks system and

coordinated mechanisms, does not effectively

engage all key stakeholders, and is not part of

an industry master plan

Industry collaboration is planned, purposeful,

involves all key stakeholders and achieves better

attraction and recruitment outcomes



AGENCIES

Local and regional support is provided to assist with

recruitment and help facilitate collaboration amongst

industry employers

Immediate

QTIC,

Tourism and

Events

Queensland

RTOs, LTOs,

Chambers of

Commerce,

Industry

Establish local and regional employer hubs to allow

for collaboration and promotion of job opportunities

within the local area and the region more broadly

Immediate

QTIC,

Tourism and

Events

Queensland

RTOs, LTOs,

Local/Regional

Governments,

Tourism and Events

Queensland,

Regional Training Organisations (RTOs) facilitate

information sharing and collaboration amongst local

industry employers

Immediate

QTIC,

Regional

Tourism

Organisations

RTOs, LTOs,

Local/Regional

Governments,

Industry

Develop an industry “one-stop” regional portals that

include tools and resources to assist employers meet

recruitment needs and their employment obligations.

The portal could include:

list of local and regional vacancies

Access to social media to better promote job

opportunities

Links to existing skills and candidate matching systems

such as LinkedIn and seek.com

Tools and templates to assist with advertising and

recruitment processes

Sample job descriptions to assist with promoting jobs

and defining skills and capability requirements

Access to relevant industry employment programs

including mature age, indigenous and disabled worker

programs as well as foreign or international

student/worker programs

Medium –

Longer

Term

QTIC,

State

Government

Departments

Tourism and Events

Queensland,

Regional Tourism

Organisations,

Employment and

Jobs

Agencies/Network,

Industry

Facilitate collaboration amongst industry employers

to develop career paths for their employees that may

extend beyond current employment arrangements

Medium –

Longer

Term

QTIC,

Regional

Tourism

Organisations

Tourism and Events

Queensland,

State Departments,


12

Strategic Imperative 4: Skills Shortages

Objective: Develop strategies to minimise skills shortages

Current State Future State:

Skills shortages are impacting on the ability of

organisations to service some tourism markets

There is an adequate supply of labour to meet

industry demands across the State



AGENCIES

Develop an Industry Skills

Shortage Priority Taskforce Immediate QTIC

Tourism and Events

Queensland,

Regional Tourism

Organisations,

National and State

Departments, Industry

Foster collaboration amongst

seasonal employers and other

industries

Immediate QTIC

Tourism and Events

Queensland,

Regional Tourism

Organisations, Industry

Promote various job and career

opportunities aimed a wide range

of target audiences, not just

school leavers.

The ‘one-stop’ portal(s) also

enable employers to:

Access relevant industry

employment programs including

mature age, indigenous and

disabled worker programs as

well as foreign or international

student/worker programs

Immediate

QTIC,

Tourism and Events

Queensland,

Regional Tourism

Organisations

National and State

Departments, Industry

Promote the use of better HR

practices (such as flexible work

practices and career models) to

assist with retention

Medium –

Longer Term

QTIC (QTIC, Tourism

and Hospitality - Best

Practice Guide)

Regional Tourism

Organisations.

Tourism and Events

Queensland

State Departments


13

Strategic Imperative 5: Improved HR Management Practices and Structures at the

Enterprise Level

Objective: Improve people management practices and structures across the industry


Many employers are unable to attract the

right staff and retain staff as a result of

inflexible working arrangements, not

promoting the career opportunities that do

exist and not making the most of all the

advantages of working for their business

Employers will have the knowledge and tools to

improve and better capitalise on their

employment offering. Improved retention will

decrease costs, improve productivity and fund

improved benefits

Key action, timeframe and execution path:

ACTION PRIORITY RESOURCES

Establish local and regional

coaching and mentoring programs

for owner operators on

progressive HR practices

including job sharing, providing

flexibility, rewarding

performance

Immediate QTIC Industry, RTOs, LTOs

Showcase best practice leaders

and provide support via local and

regional tourism organisations

Immediate

QTIC,

Regional Tourism

Organisations

Tourism and Events

Queensland

Provide additional people

management and employment

law education

Immediate

QTIC,

Regional Tourism

Organisations

Tourism and Events

Queensland

Develop best practice guidelines

for employers to use all their

attractive employment features

to recruit, retain and engage

their workforce by developing an

attractive employee value

proposition (EVP)

Immediate

QTIC (QTIC, Tourism

and Hospitality - Best

Practice Guide)

Tourism and Events

Queensland,

Regional Tourism

Organisations


14

SECTION 3: ENVIRONMENTAL SCAN AND INDUSTRY RESEARCH FINDINGS

The Tourism Industry in Queensland directly contributed $10.5 billion to gross state product and supports

approximately 136,000 (5.9%) Queensland jobs4. The Tourism Industry is one of the highest employing

industries in the state. When combined with another 99,000 indirect Tourism Industry jobs it represents

10.1% of total employment in Queensland. Tourism supports 55,700 businesses, representing 12.9% of all

registered businesses in the state5.

The Tourism Industry is made up of a number of sectors including accommodation, adventure tourism,

transportation, travel trade, food and beverage, tourism services, events and conferences, and

attractions. Of all of the sectors food and beverage (cafes, restaurants and takeaway food service etc.)

accounts for the largest share of tourism employment (27%), followed by retail trade (18%) and

accommodation (13.5%)6.

Employment is spread across small, medium and large employers however small businesses represent the

predominant employer profile. Small businesses employing less than 20 employees accounts for 85% of

total Tourism Industry employment. Many of these small businesses (45%) operate seasonally and employ

largely transient and seasonal workforces.

Employees in the Tourism Industry engage in little formal training in comparison to the economy as a

whole. 61.4% and 60.2% of all workers in retail trade and accommodation, cafes and restaurants

respectively, had no formal education beyond school. This is relatively high when compared to the

national figure of all employees of 44.2%. Tourism also experiences a high percentage of part-time or

casual workers 44.5%, in comparison to around 25% of employees across all industries7.

Due to the contingent and seasonal nature of employment in the industry, employee turnover is very high

(54%). Although employee turnover in the Queensland Tourism Industry is high when compared with other

industries, it is still marginally lower than the Australian tourism figure of 64%.

Remuneration in the Tourism Industry is coming in below the average across all industries with workers

only earning an average weekly wage of $956 (accommodation & food services), compared to $1,348 in all

industries. The mining industry, which competes for labour directly with tourism, boasts a staggering

$2,267 weekly average8, although it should be noted that roster arrangements (such as 21 days on and 7

days off) require many more working hours per year than most other industry sectors.

The age profile of Tourism Industry workforce is kept relatively low due to the high number of youth

employed by the industry (45.7% between 15 and 24). As age is also correlated with remuneration, the

high proportion of younger workers in part contributes to lower average wages in the Tourism Industry.

This Section of the Final Report presents the research findings based on a study of the many programs

offered to industry employers, as well as direct consultation with industry employers and employees

through the survey and focus groups.

The findings are discussed under the headings of:

Workforce programs and initiatives

Career opportunities and the skills passport

Recruitment strategies

Retention strategies

4 Tourism and Events Queensland – Tourism Economic Key Facts 5 July 2013 5 Tourism Research Australia 6 State of the Industry, Australian Government 2012 7 Australian Bureau of Statistics 2006 8 State of the Industry, Australian Government 2012

15

Table 1: Tourism Industry Workforce Overview (source: Deloitte 2011, ABS 2011/12, Tourism & Events Qld 2013)

Queensland Australia

Total employees 136,000 531,900

Gross Value Added (revenue contribution to the economy) $10.5 billion $37.6 billion

Number of businesses 55,700 293,419

Small Businesses (employing less than 20 employees) 85% 90%

Seasonal businesses 45% 47%

Industry employee turnover rate 54% 64%

Jobs in greatest demand9

The following tourism occupations are experiencing the most common deficiencies - in terms of skills

and/or experience: -

Waiters

Chefs

Bar Attendants

Cooks and

Commercial Housekeepers

Adventure Guides

Projected forecasts predict that the following tourism and hospitality occupations will be in greatest

demand: -

Kitchen hands

Waiters

Café & Restaurant Managers

Any initiatives introduced to assist with attraction, recruitment and retention across the Tourism Industry

will need to consider specific job family demands and be further contextualised to meet specific regional

requirements to be successful.

9 Australian Tourism Labour Force Report - 2011

16

Workforce Challenges, Programs and Initiatives

The industry is perceived to support a mainly transient and seasonal workforce. This perception presents a

significant challenge to employers wishing to attract, recruit and retain employees within the industry.

There are moves to increase the profile of jobs within tourism and to increase the potential career

development opportunities within the industry. The majority of tourism organisations are not of a size or

scale to support extensive training and development of their employees. At the enterprise level, career

opportunities within the company are generally more limited for small businesses – irrespective of the

industry such businesses are part of.

The perceived lack of training and development, limited career opportunities, seasonal nature of

employment, and non-competitive remuneration practices all add to a lack of overall appeal of the sector

and restricts the potential candidate pool for prospective employers.

Some of the more common perceptions around tourism employment and the challenges faced include: -

Social and cultural perception of employment within the industry

Non-competitive remuneration relative to other industries – i.e. mining sector

Limited career pathways and development opportunities

Shortage of skilled employees

Difficulty in providing adequate training and development

Very seasonal nature of employment

Visa or migration issues – many tourism roles are considered unskilled occupations

Additional challenges recruiting in rural or remote areas.

The Tourism Industry outlook is positive with international visitor arrivals increasing over the second half

of 2012.10 Continued and sustained industry growth will have a direct impact on the workforce needs to

support this growth.

Organisations will need to look for innovative ways to attract, engage, develop and retain employees

within the sector. An available, capable and engaged workforce will be critical to the future success of

Tourism Industry organisations. The research findings discussed in this section also discuss career and

skills progression at an industry level, as well as providing feedback and suggestions on the concept and

implementation of a skills passport for the Tourism Industry.

The State Government has laid down a blueprint to help the Tourism Industry achieve a number of key

objectives including an ambition of achieving overnight visitor expenditure of $30 billion by 2020. The

DestinationQ blueprint 2012-2015 also identifies the need to maintain Government’s focus on tourism in

key areas including skills, labour and career development.

Currently there are nine key project areas identified in DestinationQ that focus on improving the quality,

skills and capacity of the tourism workforce. At the time of writing this Report the projects are proceeding

as planned with only a few reporting on ongoing progression.

The projects include:

1 Investigating career development pathways through the concept of a “Skills Passport”

2 Promoting language skills and cultural awareness – of the workforce to meet the needs of visitors,

particularly Asian languages

3 Industry led training - for all jobs in the Tourism Industry

10 Deloitte Access Economics – Tourism and Hotel Market Outlook Q1/2013

17

4 Improve career pathways – starting at school level working through training and education to further

career progression and advancement

5 Review of industrial workplace issues including penalty rates

6 Extending the number of apprenticeships and traineeships – continue to contribute to national efforts

to harmonise the Australian Apprenticeship system and increase awareness of these arrangements

amongst Queensland tourism operators

7 Visas – reviewing 457 Visa (employer sponsored) conditions and arrangements, Worker Holiday Maker

Visa and Guest Worker Visa

8 Operator support and accreditation – improve business performance and service quality amongst

tourism operators through a range of operator support and accreditation programs such as the T-QUAL

tick accreditation

9 Workforce planning - addressing labour and skill shortages within the industry.

Within the Tourism Industry there are a number of initiatives that have been implemented to help

overcome workforce challenges particularly in relation to attraction, recruitment and retention. A

comprehensive summary of Commonwealth and State government policies and programs can be found at

Appendix 2.

Examples of practices specific to the Tourism Industry currently being implemented are listed below.

Attraction & Recruitment & Retention Programs

Program State

Discover Tourism – A portal aiming to target labour and skills issues in the industry. One-stop-shop for

employers and employees

Australia

wide

Works.TV – A new career destination that takes the hard work out of looking for work by providing the

latest employment opportunities and career information across the hospitality and Tourism Industry QLD

Tourism Connect – A website developed for the ACT Tourism Industry that supplies accurate and

relevant information. It provides valuable information for a diverse range of industry members

including an ‘Action Kit’ that allows access to resources and tools to help start and maintain a

successful tourism business

ACT

Queensland Government Tourism Business web portal – Webpage that can assist tourism businesses with

general information on the industry, operations and support QLD

Pacific Seasonal Worker Scheme (PSWS) – Allows Australian employers in the horticulture industry to

employ workers from eight Pacific island countries and Timor-Leste, when they cannot find enough

local workers to meet seasonal demands. A trail of this program has been extended to the

accommodation sector, encompassing jobs such as bar attendants, waiters, housekeepers, kitchen

hands etc.

Australia

wide –

Pilot in WA

Indigenous Small to Medium Enterprise Tourism Strategy – Develop and distribute a set of resources and

tools targeting SMEs in the industry to support and increase awareness and confidence in relation to

employing

QLD

Mature Age Employment Project – Raise industry awareness of the benefits of older workers QLD

Indigenous Champions Network – Purpose is to champion the employment of indigenous people in QLD

18

Program State

mainstream tourism roles

Australian food and beverage skills passport – Developed due to the need for greater connections

between industry and training providers in creating a pool of talented employees whose skills are

relevant, recognised and transferrable across the wine, olive and beverage industries. The Skills

Passport contains a base set of skills and training required by industry for their seasonal workers

including OH&S and HACCP

VIC/

Australia

A Taste of Broome- A multi-arts performance and cuisine based project that brings focus to Broome and

the multicultural community. It encourages local involvement in the Tourism Industry above all

providing employment and training to the indigenous community

WA

Salute to Excellence Awards – Recognition program for senior school students studying hospitality and

tourism. Encourage school leavers to join the Tourism Industry

QLD

Training & Development

Program State

National Workforce Development Fund - $700 million over five years to the industry to support training

and workforce development in areas of current and future skills needs

Australia

wide

Industry-based Training Experience - Wine, Food and Tourism, Students participate in intensive, hands-

on and experiential programs which deliver QCE (Queensland Certificate of Education) recognition and

competencies in carious nationally recognised certificate level qualifications in winemaking, cookery,

food & beverage service and wine chemistry. Part of the Gateway schools program

QLD

Language and Cultural Capacity Building Project – Provide training to up-skill existing workers and new

entrants in Mandarin language and Chinese cultural awareness. QLD

Echo Entertainment Group (Casinos) – provide qualifications for 1,306 new entrant and existing workers

addressing skills needs generated by expansion of properties. QLD

P.R.O Management – Provide qualifications for mature age entrants to the caravan park sector

addressing skill development needs of the industry to fill gaps in skills and labour supply in

rural/remote Queensland

QLD

Wet Tropics Tour Guide Training – Aims at enhancing guide knowledge about the World Heritage Area,

skill sharing techniques and networking opportunities to improve visitor experiences QLD

Culinary Career Start – Paves the way into hospitality with pre-apprenticeship training, encouraging

school leavers to join the industry QLD

Many competing sectors are exploring ways to accelerate the development and capability of their

workforces as well as enhancing the attractiveness of their sector to potential employees. Some of these

initiatives may also be useful for the Tourism Industry once their outcomes are more fully known.

Examples of some initiatives both in Australia and abroad are listed below.

19

Initiatives in other sectors (Attraction, Recruitment & Retention)

Program Jurisdiction

UK tourism skills passport – One-stop shop for careers, jobs, training, qualifications, employers and

training providers in hospitality, leisure, travel and tourism

United

Kingdom

Safe Work Australia – The National Occupational Health and Safety Certificate for uses and operators of

industrial equipment is a general requirement of competency based training that is recognised across

the industry thus avoiding duplication, saving time and money

Australia

wide

Dairy Australia Business modules – Dairy operators across Australia can easily follow various modules

that assist in a variety of business improvement areas including recruitment and retention

Australia

wide

British Columbia Go2 organisation – Go2 supports the BC tourism and hospitality industry with a large

number of initiatives that encourage successful growth and development. Programs include industry

promotion, skill training and accreditation and employee resources that assist with recruitment and

retention

Canada

Wal-Mart discounted degrees – Wal-Mart in America subsidises employee’s online university degrees as

a way of improving the quality of their workforce and reducing employee turnover USA

The Gateway to Industry School program (Gateway Schools) is aimed at improving industry-school

engagement, focussing on educating students and providing career opportunities. Supported by

contributing industries, the skill areas emphasised and example programs include:

Equipping students with industry accreditation – Industry aims to ensure that school-based

education and training equips students with the right level of industry recognised skills and

experience to ensure they are ideal candidates for work or further training. For Example the Food

and Wine Tourism project that trains and assists students in completing the Wine and Sprit

Education Trust (WSET) Foundation level awards.

Building local school and industry networks – Local industry – school partnerships allow for the

development of work experience projects, contextualised curriculum, industry visits, professional

development activities, opportunities for school-based apprenticeships and traineeship. For

example the Coal Seam Gas High Schools Project which aims to build awareness and create

knowledge of career opportunities in the industry.

Developing industry-focused Curriculum – Queensland Studies Authority (QSA) endorsed projects

that allow students to engage in industry specific curriculum while working towards their QCE

(Queensland Certificate of Education). For example ‘Cotton in Curriculum’ which is a science based

curriculum situated in the cotton growing regions that relates material to cotton as much as

possible.

Lifting the industry’s image – Promotes the industry’s image and attempts to improve people

perceptions by creating heightened awareness of career diversity and opportunities. The

construction industry has developed a ‘Constructive Kids DVD’ program that provides practical

information about the industry and potential rewarding careers.

QLD

These examples are a sample of the current Policies and Programs that are being implemented in the

Tourism Industry and across other sectors both in Australia and abroad. A more comprehensive summary

can be found at Appendix 2.

20

Summary of observations

When determining the current best practice strategies and formulating future recommendations very few

lessons can be learnt from the long list of current policies and programs. Many of the existing programs

are either in a pilot phase, or have been operational for only a short period of time and consequently little

about their success can be ascertained.

Of the programs that have been running for a more substantial length of time if is often difficult to gauge

their success due to a number of factors:

a) Little to no investigation is done into the direct outcomes of the programs

b) Due to the number of programs and other external factors (economic and environmental) it is

extremely difficult to categorically claim or prove that a change in events is due solely to the

influence of one particular program

c) Of the initiatives that have reported on outcomes and successes, the judgements are almost

always coming from the instigator of the program (government, industry etc.) which can lead to

self-promotion and may cast some doubt about the full validity of the claims being made.

There is no doubt that reform is needed to assess the most effective best industry programs and direct

funding from programs that are not succeeding into programs that demonstrate better value for money.

On the whole it would appear that many of the industry programs are under-utilised. Collectively there

are over 700+ different programs available for employers and employees within the Tourism Industry.

Given the sheer number of programmes and levels of investment made by State and Commonwealth

Governments ($20 million investment package 2012-13 in Queensland, including a $7 million RTO

partnership fund) there is a need to consider the overall effectiveness of these various programs. The

scale and number of programs would also suggest there is a potential for duplication and program

inefficiency. Any such review would allow for improvements in program efficacy and re-direct funds to

areas where they will have the greatest impact.

The Tourism Industry in Queensland is governed and promoted by a significant number of organisations.

This is largely a consequence of the size and importance of the industry to the State. It does however

create a level of complexity that may hinder access to programs for small business owners who make up

the vast majority of employers within the industry.

The lack of program take-up would suggest that more could be done to increase the level of awareness of

the various commonwealth, state, regional and local programs. In addition there does not appear to be a

significant level of collaboration at a local and regional level to help share knowledge and promote

employment opportunities within the Tourism Industry.

Actions and recommendations to address these observations are summarised below. Numbering of the

recommendations reflects the consolidated list of all recommendations shown in the Executive Summary.

Industry and Employment Structure Reforms


1 Government engage key stakeholder groups in a review of the various industry programs to determine

the effectiveness of these programs in promoting tourism as an employment industry of choice

2 Rationalise and redirect funding from ineffective programs to assist with changing the landscape of

the Tourism Industry and its overall attractiveness to the general labour market.

21

Career Opportunities and the Skills Passport

The research has clearly indicated that there is a perception that exists within the Tourism Industry that

employees working in the industry have limited career opportunities available to them. Whether it is a

result of lack of promotion of careers on offer or the poor communication of the opportunities available,

the general view is that if you want to progress you are better off in another industry. Although

employees working in owner-operator environments might support this belief to some degree, there are

definite pathways across the industry more broadly that can be promoted and highlighted to prospective

and existing employees.

Research indicated that from the sample of employees surveyed (70%) believe that career opportunities

existed both within their own organisation and the industry as a whole. Unquestionably, some sections of

the industry are tailored to brief tenures, and the industry needs to learn to embrace that fact. However

industry also has to promote the long-term, stable, rewarding positions that are on offer by across

industry and the opportunities for training and development that already exist.

Skills Passport

The skills passport is a system that attempts to match employee’s skills and capabilities with the skills and

capability requirements of organisations in the Tourism Industry. Whether it is a physical ‘passport’ that

can be produced or an online profile, prospective employees would list qualifications and achievements

that can be presented to employers. Employers could also utilise the system to advertise for roles, and

identify suitable applicants by matching role specific skill requirements with employee skills and

experience.

This Skills Passport system has been introduced in other industries within Australian and overseas. There is

little or no evidence to indicate the level of success of these alternative programs.

The idea of matching an employee’s recognised skills to a particular advertised role is a worthwhile

endeavour and could provide much needed assistance in the recruitment phase for many organisations and

employees seeking employment. The majority of employees (90%) do not have any knowledge or

awareness of the Skills Passport concept. Employers familiar with the system rated it poor or ineffective

(11%), and many (69%) where not familiar or did not comment on its usefulness.

Figure 6: Use and Effectiveness of Skills Passport

22

Most employees (96%) had not used an online skills matching system. Employers did not consider the Skills

Passport system would be very effective at attracting suitable candidates. There are a number of existing

skills matching systems in the marketplace such as LinkedIn, Seek, My CV. These alternative systems

where cited by some employees surveyed as skills matching systems they had used. The Skills Passport

system could be considered a duplication of these existing systems.

Figure 7: Would you consider using a Skills Passport? (Employee Perceptions)

Only 37% of employees surveyed considered using an online Skills Passport with many (45%) being unsure if

they would use an online skills matching system.

The costs and effort involved in developing and maintaining a new online Skills Passport system may

negate the benefits from such a system. A possible viable alternative would be to use existing systems

such as LinkedIn or My CV to help promote the Tourism Industry and search for individual skills and

capabilities using the existing infrastructure. Increasing the awareness and understanding among the

employer and employee groups, of any system is vital for its overall success and acceptance.

Additional concerns were raised with respect to the validity of accreditation and qualifications registered

with online systems (i.e., there is no vetting of information recorded on LinkedIn).

Summary of observations

There are a wide variety of career opportunities within the Tourism Industry. The industry does however

suffer from negative perceptions (perhaps unfairly) that jobs within the industry are transient and do not

provide a “real” career.

The Industry needs to do more to promote careers across the industry and showcase employees who have

been able to effectively manage a career and lifestyle across a variety of roles. Many of the employees

who responded to the online survey felt they had ample opportunities within the industry with many

aspiring to management positions or considering starting their own tourism business venture.

The Skills Passport concept is not well known or understood within the Tourism Industry. The initial

feedback from employers and employees is uncertainty about how it could be best applied and whether it

would actually provide anything further than what is currently available through existing online systems

such as LinkedIn, Seek and My CV.

Skills Passport- Recommendation

The Skills Passport as a stand-alone concept be dispensed with or discontinued

Industry stakeholders making greater use of available Industry forums / aligned strategies and

activities to educate operators and employees of the opportunities to utilise existing social media

infrastructure (such as LinkedIn, Seek, My CV) to fulfil the need to better connect employers and

employees and allow employers and employees to self-promote.

“I haven't used on-line recruitment methods”

“none - have usually been recruited by word of mouth”

“I uploaded my resume onto seek.com profile”

“I have updated my Linked in profile and connections”

“I have used recruitment agency- sent resume”

“ I have used My Cv with Seek and on-line vacancies”

Employee Comments

45%

18%

37%

YesNoNotSure

23

Recruitment Strategies

Methods of Recruitment

Various recruitment methods are adopted by organisations in the Tourism Industry in an attempt to source

suitable candidates. The approaches taken by the organisations that participated in the consultation

ranged from basic and conventional through to more innovative and leading practices. The following table

provides a summary of these current practices and observations.

Table 6: Current Market Practice - Recruitment

Current Practice Research Findings

Word-of-mouth Generally considered the most effective way to recruit suitable candidates. 30.5%

of employees considered Word-of-Mouth as effective or very effective, the second

most noted method was newspaper advertising with 21%

Participant comments and observations

Very cost effective and targets specific individuals

Offering incentives to current employees to spread the word and successful

placement was also common (i.e., recruit a friend or spotters fee)

Organisational websites 20.5% of employees considered advertising vacancies on company websites as an

effective


The benefits included extending the reach outside of immediate vicinity and helps

to promote the organisation itself

Social media Social media is a key way the younger generation communicate, 15-24 year olds

make up 45.7% of the working population in the Tourism Industry in Australia

Doesn’t appear to be greatly utilised, only 8% of employees claimed to use it more

than occasionally.


Effectively online ‘word-of-mouth’

Online recruiting

E.g., Seek.com, MY CV

Linkedin


Used widely by the employee group, however not a common method for employers

Ability to screen and filter searches for both employees looking for work, and

employers trying to find the right candidate

Relationships with education providers


An effective way of recruiting and targeting specific skills

Offering internships and apprenticeships has been popular for some employers

Establishing relationships between institutions and industry will help minimise skills

shortages and develop work related skills for candidates

Targeting mature aged and indigenous groups

Only 19% of employers surveyed involving it in their recruitment processes more

than occasionally


A number of organisations had developed successful programs

24

Barriers to Recruitment

Many employers cited difficulty recruiting employees for specific occupational groups such as head chefs

and specialist managerial positions. On the whole most employers suggested they had little or no difficulty

recruiting for un-skilled positions. The following table provides a summary of some of the challenges faced

by employers recruiting suitable candidates.

Table 7: Barriers to effective recruitment

Barrier Research Findings

Attitude Participant comments and observations

Applicants poor attitude and work ethic was often cited by employers as a problem in

recruiting suitable employees

Employers reinforced the need to focus on recruiting for the right attitude and less so on

specific job skills. “Recruit for attitude and train for skill” was a mantra held by many

employers

Mismatched

Expectations


Employees often have the view that working in the Tourism Industry will be easy and

Mature workers often have a good attitude and work ethic and can fill many of the

part-time/casual roles

Indigenous workers often add to the authenticity of the ‘tourist experience’ when

working at organisations that are involved in that area of the industry particularly

in regional areas

Targeting foreign workers


Very effective for lower skilled, physical roles (i.e. Cleaning & fruit picking) and for

roles that require specific language skills

Migrant workers usually more willing to take on more menial and mundane roles

Regional Sponsored Migration Scheme (RSMS 119) has been useful in obtaining

suitable workers for some organisations and overcome 457 Visa limitations

Selection surveys and probation periods


Assists to reduce applicant numbers through online screening

Probation periods allow the employer to assess employee suitability

Candidate management systems also used to help with screening

Recruitment agencies Only 3% of employers and 19% of employees used recruitment agencies more than

occasionally


Used mainly for skilled and specialised positions such as head chef and accountant

Not considered effective for unskilled roles as applicant numbers usually outnumber

vacancies.

“Young employees have a sense of entitlement and think that they are owed something.

They don’t want to do the ‘dirty’ jobs”

25


highly enjoyable. Although this is true for some positions, many others do not live up to

the applicants expectations

Some employers find that being transparent about role requirements during the

recruitment process helps to manage prospective employee expectations

General Industry

Perceptions


Perceptions that the Tourism Industry does not offer career paths is hindering efforts to

attract suitable candidates

Some prospective employees view a vast majority of the jobs as ‘not serious’ and

‘something to do to earn money while travelling or studying’

Location Participant comments and observations

Many individuals are not willing to relocate or travel large distances to work in regional

and remote locations

Employers similarly noted large numbers of applicants not turning up for interviews after

discovering the distance needed to travel

Skills shortages Participant comments and observations

Some roles attract a large number of applicants, however the skill levels of many

applicants is not at the desired level

Certain skilled roles are proving more difficult to fill than un-skilled positions for example

head chef or museum curator

Restrictive Employment

Conditions


Access to hard working, eager foreign workers is seen by some employers as essential to

the industry, however the process is far too difficult

The time and cost involved in visa applications particularly the Temporary Skilled Work

(457 Visa) is hindering employment for some operators

Concerns that many of the roles within the Tourism Industry in which migrant workers are

required have been taken off the 457 skilled occupation list

Minimum wage requirements for the 457 visa also don’t align with wages on offer for the

positions needed to fill

Agency Costs Only 3% of employers stated using agencies more than occasionally

Many of the tourism operators are small businesses (85% of total industry) with limited

budgets unable to meet agency costs


Some of them claiming to only use the service as a last resort due to high agency costs

Lack of Employee

Suitability from External

Recruitment Programs

Only 5% of employers surveyed used external recruiting programs more than occasionally


Some employers feel that government employment programs are solely concerned with

placing candidates and filling roles without due consideration of an individual’s suitability

“I organise interviews & half of them don’t turn up – they realise where we are”

26


for the role

Many applicants are not qualified or even interested in securing the position and are

simply attempting to meet their unemployment benefits requirements.

Retention Strategies

Organisations in the Tourism Industry often find it difficult to attract and retain appropriately skilled and

capable employees. The industry also has to manage the perception of limited career opportunities due to

the very seasonal and transient nature of employment within the industry.

The research indicated clear misalignment between what employers perceived to be effective retention

methods and what employees say they value about employment.

Key retention themes include training and development, flexible work arrangements, and recognition

programs. Competitive remuneration would appear to be a key retention strategy, however employees

were also likely to favour intrinsic benefits derived from flexible working conditions and hours of work.

Figure 2: Effective Retention Strategies

Although considered relatively important from an employee perspective, superannuation and health and

wellness programs where not considered effective methods by many of the organisations surveyed. This

misalignment might represent an opportunity for employers looking to differentiate their employment

offering.

Interestingly, remuneration was not initially seen as important to attract individuals to the industry, it

takes on greater importance once employed within the industry. This needs to be balanced with what

employees felt they valued most about their work. The predominant response was workplace culture,

team members, flexibility, and job satisfaction.

RemunerationIncreases

Promotion

CareerDevelopmentOpportunities

Bonuses&PerformanceIncreases

AdditionalTraining&Development

FlexibleWorkConditions

AdditionalSuperannuation

FlexibleSalaryPackaging

HoursofWork(Flexibility)

Health&WellnessPrograms

InvolvingtheminDecisionMaking

Employer Employee

Low HighImportance

27

It is often argued that remuneration is a hygiene factor (Herzberg) and needs to at least be competitive.

In other words, employees need to be paid fairly for their work so that it doesn’t erode the value they

derive from the work itself and supporting workplace culture. A key challenge for government and the

Tourism Industry is how to provide remuneration equity relative to other industries, in an environment

dominated by small business owners limited in their capacity to provide market competitive

remuneration.

The research also examined why employees leave the industry. Unsurprisingly, employers felt that many

employees leave to pursue work in another industry and/or pursue career opportunities elsewhere. The

perception by many employers was that the mining boom had in fact driven many employees to leave due

to the higher levels of pay available within this industry.

Some employers also commented that due to recent declines in the mining sector some past employees

are now seeking re-employment within the Tourism Industry.

The current market conditions, which are seeing employees returning to the tourism sector, may be

masking an underlying remuneration imbalance. As industry growth and downturn cycles continue to play

out, the Tourism Industry can expect to continue to experience varying (but present) degrees of

competition for its employees in the future. Government policy and investments need to focus on

redressing any potential market imbalance ahead of increased demands and constraints in

capacity/supply.

Figure 3: Why employees leave - Employer perceptions

Figure 3 findings would suggest that employers feel that any employees leave for work in an unrelated

industry and/or as a result of limited career opportunities. The scope of the research did not allow for

further analysis of these reasons however it would speculate that lack of competitive remuneration could

in part be responsible for many exits. Employers also did not perceive employees would leave due to lack

of workplace flexibility (hours of work) but this is cited by many employees as an important element of

why they choose to work with an employer.

Non-competitiveRemuneration

LackofFlexibleWorkingConditions

LimitedCareerOpportunities

LimitedTraining

SeasonalityofWork

StabilityofEmployment

ReturnHome

RecruitedtoAnotherIndustry

QualityofSupervision

HoursofWork(LackofFlexibility)

Low HighImportance

28

Methods of Retention

Employers within the Tourism Industry are using various retention strategies in an attempt to retain skilled

and talented employees. The approaches taken by organisations range from basic and conventional

through to more innovative and leading practices.

The more successful practices have been summarised below. The following table provides a summary of

these practices and observations.

Table 8: Current Market Practice - Retention


Outlining career

development

opportunities

59% of employers believe that a main reason people leave their organisation is limited

career opportunities


Outlining possible career opportunities and pathways to current employees is being

used by some organisations to persuade people to stay

Flexible work conditions

& hours


Consistently mentioned as one of the most valued aspects by employees, offering

flexible work conditions and hours can play an important role in retaining talented

staff

Although offered by some employers, many don’t consider this as an important

retention factor

Remuneration increases 87% of surveyed employees claim that a pay increase would probably or definitely have

an impact on their decision to stay with their organisation.

44% of employers believe that employees regularly leave their organisation because of

remuneration issues


Noted by both employee and employer groups, competitive remuneration is shown to

be a key retention factor

Employees claim they value a number of factors ahead of pay however consistently

mention it as a key retention method

Rewarding & recognising

performance


Individual recognition is commonly cited by employees as a way to make them feel

wanted and appreciated

Examples include; employee of the month, awards nights and publicly acknowledging

their achievements and positive customer feedback

Some employers have embraced the need to offer rewards and recognise good

performance amongst their employees

Training and

development

opportunities

Training and development is quoted (19%) by the employer group as the single most

effective retention initiative


Employees don’t appear to value training as highly so there is an obvious mismatch

between employer and employee perceptions

29


Training and development should be part of an overall employment offering however it

needs to be balanced with flexible work arrangements and competitive remuneration

to be effective

Creating a positive

workplace culture

Creating a strong workplace culture is valued (15%) highly by the employee group


A large number of employees claimed a “love and passion” for their work and having a

great relationship with co-workers as important to them

Organisations who embrace a positive workplace culture are more likely to retain key

employees than those who don’t

Organisations that promote a sense of ‘family’ would also appear to be able to better

retain key employees. These same organisations cite the need to ensure appropriate

cultural fit for new employees for this strategy to be successful

Promoting organisation

values


Organisations that communicate their values where sought after by employees

Some employees stated that they enjoyed being part of something that is “making a

difference” and this was often reflected in the values and behaviours of senior leaders

within the organisation

Mentoring programs Participant comments and observations

Mentoring programs are being used to provide employees career guidance and advice,

assisting them in their career and personal development

Mentoring and cultural awareness programs have proved particularly successful with

indigenous groups for some employer groups.

Barriers to Retention

The following would appear to have the most impact on the industry’s ability to retain skilled employees.

Some barriers are common across all industries however there are some that are peculiar to tourism.

Table 9: Barriers to Retention


Competing industries The number one reason employers claim employees leave is to move to another industry.

59% of employers surveyed believed that it was a regular reason for leaving


Mining has been the one obvious competitor for labour

A move by employees “to another industry” may be masking the lack of competitive

remuneration & career opportunities within the Tourism Industry

“We have created an environment where each and every member of the team is

respected and valued and we celebrate our successes”

“Everyone is leaving to the mining industry. We can’t compete with them, I can’t offer $150,000 for someone to drive a truck”

30


Negative perception of

tourism careers


Some employees use jobs within the industry as ‘something to do’ while they study or

before taking on a ‘real’ career - “This job is just something I am doing while I am

studying”

Many employers don’t adequately demonstrate possible career options to their employees

Some employees believe they need to leave their organisation or the industry to progress

in terms of pay and career

Inability to offer

competitive

remuneration

44% of employers believe that non-competitive remuneration levels pose an enormous

barrier to retention, and is a major determining factor if an employee decides to leave

Only 29% of employees claim competitive remuneration had a high influence on their

decision to join the industry. However their views alter once they commence working

within the industry, with it being the biggest influence on their decision to stay, with 87%

stating it probably or definitely would influence them to stay


The low margins for some operators make increasing remuneration challenging and

unsustainable. Their inability to offer competitive remuneration has an impact on the

calibre and skill levels of recruits and impedes their ability to retain skilled employees

Inflexible working

conditions

The lack of flexibility in working conditions, including hours is resulting in employee

departure. 81% of employees claimed improving flexibility would probably or definitely

influence their decision to stay at their organisation


Some organisations do not have the scale to offer much flexibility to existing employees

without transforming their current workplace arrangements

Many parts of the industry rely on abnormal hours of work to function, which limits their

ability to offer flexible working hours without increasing their overall employment costs

Lack of people

management skills


Some employers fail to recognise the significance of a harmonious workplace and this can

in turn have a negative impact on employee retention

Some employers are not skilled in people management and struggle to deal with

workplace disharmony. Lack of people management skills tends to lead to disgruntled

employees and ultimately employee turnover

Inadequate scale to

support training &

development


Many operators in the industry are small (85% of total industry) and don’t have the

resources to provide adequate in-house training and career progression opportunities

Workplace and industry

reforms


Many employers noted difficulty meeting workplace compliance requirements and

suggested a need for workplace reforms particularly with respect to visa application

processes

Student and working holiday visas only allow for a short working period increasing the

level of administration and compliance

31


Cultural barriers –

indigenous workforce


Work can be difficult for some indigenous employees as a result of their home situation,

food and clothing issues and long travel distances to and from work

Lack of cultural awareness can give rise to cultural insensitivity at the workplace.

Career Opportunities

As has been mentioned previously, research has clearly indicated that there is a perception existing within

the Tourism Industry that employees working in the industry have limited career opportunities available to

them. Whether it is as a result of a lack of promotion of careers on offer or the poor communication of

the opportunities available, the general view is that if you want to progress you are better off in another

industry. Although employees working in owner-operator environments might support this belief to some

degree, there are definite pathways that can be promoted and highlighted to prospective and existing

employees.

Research indicated that from the sample of employees surveyed (70%) believe that career opportunities

existed both within their own organisation and the industry as a whole. Unquestionably, some sections of

the industry are tailored to brief tenures, and the industry needs to learn to embrace that fact. However

the industry and its employers also have to promote the long-term, stable, rewarding positions that are on

offer by the industry and the opportunities for training and development within the enterprise and in the

industry more broadly.

Figure 4: Rating Career Opportunities

32

Discussing Career Opportunities

Findings show that although most employees believe that career opportunities do exist within their

organisation, it is most often not communicated until performance discussions are undertaken.

Figure 5: Discussing Career Options

Employees surveyed felt that career paths are rarely communicated in an employee’s offer letter (66%),

during induction training (68%) and to a lesser extent at time of initial recruitment (40%). Increasing the

level of communication and discussion may highlight the development needs of individual employees and

assist organisations by planning and managing capability shortfalls in a more proactive manner for the

benefit of both employee and the organisation.

Summary of Observations

Most organisations appear at ease filling un-skilled job vacancies with the exception of regional and

remote employers where location is a major barrier. Some low paid menial jobs can be challenging to fill

with suitable candidates.

The majority of organisations and employees felt that word-of-mouth is the best form of access to

employment. Organisational websites also provide a mechanism for employers to easily promote job

vacancies. Targeted newspaper advertising is also seen as an effective recruitment method.

There did not appear to be any major innovation to traditional recruitment methods.

Some organisations use candidate management systems to assist with the volume of applications for some

roles. These systems seem to be more prevalent for larger organisations and less so for the smaller

businesses who tended to rely largely on word of mouth and existing employee networks.

Online systems and social media, although in use, did not appear to be considered an effective medium.

Given the rise in digital resources and social media it can be expected that the use of online social

networks will increase over time, and organisations of all sizes could be making better use of these tools.

Targeting specific employee groups such as mature age, disabled and indigenous workers has not been

taken up with any fervour by the industry. Where employers have taken up employing these groups they

cited the need to ensure appropriate cultural awareness training for employees to help with integration

and understanding of social customs and promote cultural tolerance within the workplace.

Most employers and employees agree that the industry needs to do more to help change the perception of

lack of career opportunities within the industry and the impact this is having with recruiting suitable

candidates.

33

There are a wide variety of career opportunities within the Tourism Industry. The industry does however

suffer from negative perceptions (perhaps unfairly) that jobs within the industry are transient and do not

provide a “real” career.

The Industry needs to do more to promote careers across the industry and showcase employees who have

been able to effectively manage a career and lifestyle across a variety of roles. Many of the employees

who responded to the online survey felt they had ample opportunities within the industry with many

aspiring to management positions or considering starting their own tourism business venture.

Organisations should do more to help promote careers within their own organisation and perhaps consider

informal agreements with other tourism organisations as a way of allowing individuals to progress further

within the industry. Many organisations in other industries have commenced promoting past-alumni

programs in the hope that by staying in contact with past employees they may one day return and/or refer

friends or contacts as potential employees.

The industry needs to continue to promote the benefits and career opportunities available to employees.

The current perception of “no career” may in fact be valid for many individual employees working for

owner-operator style organisations where size and scale limits the immediate promotional opportunities.

This does not necessarily hold when individuals look outside their immediate employment arrangements

where the variety of employers and diversity of roles is widespread.

The industry needs to consider promoting careers within the industry and that career progression

opportunities do not end with their current employer. The possibility of continuing development within

the industry is not currently promoted well. Collaboration at a local or regional level would also help to

promote a more diverse and multi-organisational career path for many current employees.

Employee perceptions of the value of competitive remuneration seem to change after they commence

employment within the industry. Remuneration, whilst not a significant attractant or impediment to the

joining the tourism industry takes on a higher priority for some individuals who have worked in the

industry for a while. Tourism organisations need to work harder at offering competitive remuneration and

other intrinsic benefits to employees in order to retain them over the medium to longer term.

Employers do not appear to adequately acknowledge the value derived by the work and work environment

in which their employees operate. Many employees considered the most valuable aspect of their roles

were the work itself and the camaraderie and enjoyment they derived working with colleagues.

Organisations would be well served by increasing the level of people management skills to ensure

workplace harmony and increase the overall job satisfaction of their employees.

Employers and employees both identified the need for flexible work practices and flexible working hours

as a major appeal for some employees. Organisations need to work hard to provide flexibility of

employment hours and conditions to prospective employees. The potential for job sharing was not raised

amongst either group but would suggest that job-sharing arrangements might assist smaller operators to

provide a level of flexibility and still meet work demands.

Strategic Goals aimed at raising the tourism industry profile, fostering industry collaboration and dealing

with skills shortages, collectively contain key actions which will address the observations and research

findings outlined in this section.

34



Industry and employment structure reforms


3 Undertake significant workplace reforms that allow tourism owners and operators to compete

effectively for skilled and capable employees

3.1 Review of current remuneration practices to determine where and how the industry needs to

improve its overall reward and overall employment offerings

3.2 Review the impact of current award structures and employment terms and conditions on

service delivery expectations.

Raise the industry profile


4 Develop and implement a comprehensive plan that raises the awareness of the various tourism jobs

and career opportunities within the industry. Suggested actions include:

4.1 Develop and showcase actual career profiles of employees working within the industry

4.2 Engaging with key stakeholders and communities to promote awareness of tourism jobs and

careers

4.3 Use appropriate tools and methods to promote employment within the tourism industry to

youth and schools that highlights the various roles and career choices available

Foster industry collaboration


5 Local and regional support is provided to assist with recruitment and help facilitate collaboration

amongst industry employers. Some of the possible actions would include:

5.1 Develop and establish employer hubs to allow for collaboration and promotion of job

opportunities with the local area and the region more broadly

5.2 Regional Training Organisations (RTOs) facilitate information sharing and collaboration amongst

local industry employers

6 Develop industry “one-stop” regional portals that include tools and resources to assist employers

meet recruitment needs and their employment obligations

7 Develop and facilitate collaboration amongst industry employers to develop career paths for their

employees that may extend beyond current employment arrangements.

35

Minimise skill shortages


8 Develop and foster collaboration between industry and educational organisations to ensure an

adequate supply of skills and capabilities to meet industry demands. Collaboration could include:

8.1 Develop an Industry Skills Shortage Priority Taskforce

8.2 Local community and regional meetings to discuss industry skills demands, availability and

training requirements

8.3 Introduce mechanisms for employers and employees to promote skills needs and job

opportunities

8.4 Connect employers, job seekers and students – locally, regionally and nationally

9 Develop and implement strategies to help minimise the impact of workforce shortages and retention

challenges faced by seasonal, regional and remote rural employers

9.1 Foster collaboration and partnerships with summer and winter employers to explore the

possibility of the exchange of seasonal and/or part time workers – for example collaboration

could be through the use of primary industries work programs.

36

SECTION 4: HR PRACTICES AND ENGAGEMENT

Key findings from interviews, focus groups and survey submissions have been consolidated and analysed.

Given the relatively low industry participation in the survey it was not possible to segment findings across

industry sectors or identify specific location differences.

The low level of engagement in part is a consequence of the multiple demands and requests for

information and assistance from employees and employers within the Industry. The general perception

was that some participants at focus groups had raised issues previously in different forums. There was also

an underlying apathy and feeling that not much will come of their feedback.

There have been a number of common themes arise from the research which has been analysed and

interpreted with regards to their application across all sectors and locations.

The Employee Value Proposition framework has been used to help contextualise findings and to

incorporate best practice traits drawing on broader industry experience.

The key findings have been summarised around the key themes of explaining the Employee Value

Proposition model which is a critical part of attracting potential employees to the industry generally and

specific enterprises, as well as recruitment and retention practices. Findings are also discussed as they

relate to career opportunities focussing more at the enterprise level.

Employee Value Proposition — What matters to employees?

Maximising attraction and retention is an issue facing all employers, including those in the Tourism

Industry. Organisations are realising that in order to attract and retain talented employees it is essential

to consider the whole employment offering to employees – it is no longer just about pay and remuneration

levels alone.

When developing an employee value proposition it is important to consider a number of dimensions

outside the traditional remuneration and reward practices. Organisations need to consider how their

current Employment Arrangements (i.e. flexible work practices), Career and Development opportunities

and Management and Leadership style impacts on employee perception of their workplace. A well-

developed employee value proposition can have a positive and sustained organisational benefit.

Employers who are able to articulate and implement a total employee value proposition are more likely to

provide a positive and supportive experience for employees and in turn help attract and retain a talented

workforce.

The following diagram serves to illustrate the four key dimensions and the variables that underpin an

organisation’s employee value proposition.

37

11

A critical consideration when developing programs that support an organisation’s employee value

proposition is to understand clearly what drives employee decisions around the four key dimensions. It is

not enough to implement initiatives without considering employee perspectives. On many occasions what

an employer and employee perceives are in many instances not aligned, and we have found evidence of

this in the research and consultation conducted in the current study.

Alignment between employee values and employer perceptions is essential for the success of any

initiatives aimed at attracting and retaining key talent.

Findings from the research discussed in this section have been contextualised using the Employee Value

Proposition Framework.

11 Figure 1: BDO’s Employee Value Proposition Framework

38

Employee Value Proposition

For organisations the challenge is to find quality employees, with the necessary skills, knowledge and

experience, to meet the role expectations within their organisations.

The reasons why an employee chooses to work for an organisation can and will vary according to individual

circumstances and work preferences. The key reasons why an employee chooses to work within an

industry are usually consistent with the reasons they choose employment with a certain organisation

within that same industry. Individuals will think about their personal circumstances, compare options, and

then choose to take up a position based on what they perceive to be the best value for them on offer.

An Employee Value Proposition (EVP) is the balance of reward and benefit, work policies and practices,

and overall experienced by an employee in return for their work. An EVP for an organisation describes why

an employee’s total work experience is better than any other organisation or industry. Organisations who

are able to clearly articulate and understand this are more likely to attract and retain quality employees.

Attraction Reasons Table 2: Attraction Reasons

According to the research the most cited reasons

individuals are attracted to the Tourism Industry

includes; working with people, the job itself,

opportunity to travel, diversity of work and the career

opportunities.

Survey responses indicated that the top 3 reasons

where well aligned from an employer and employee

perspective. Interestingly remuneration was not a high

priority for employees considering work within the

industry.

What can the industry and employers do to attract more suitable candidates?

Responses were sought from employees and employers about what would help to attract more suitable

candidates to the industry. Although there were some consistent themes, it appeared that what had

attracted individuals initially was not necessarily the same when considering opportunities to attract more

skilled employees to the sector.

Table 3: Attracting suitable candidates

Employer Comments Employee Comments


Promote Industry Benefits

Simplify Employment Conditions

Education Alignment

Reduce Unemployment Benefits

Competitive Pay


Flexible Working Hours

Career Options

Increase Industry Profile

Training and development opportunities where considered more important by both groups, with

employees ranking competitive remuneration as the highest priority and employers not considering

remuneration a high priority. This inconsistency would suggest that although employees surveyed did not

Attraction Reasons – Top 3

Employers Employees

- Working Conditions - Lifestyle

- Lifestyle - Working Conditions

- Career Progression - Career Progression

39

initially consider remuneration of importance for themselves, competitive remuneration becomes more of

an issue once employed within the industry.

Both employees and employers considered that the industry would need to do more to promote itself to

prospective employees by promoting the benefits of working within the industry and the varied career and

development opportunities available.

Employers also considered that an increasing alignment with educational institutions would assist in

promoting the industry to school leavers. Programs aimed at promoting the industry to school students

would help manage negative perceptions about the industry and serve to demonstrate the diversity of

roles and opportunities that exist within the industry.

Rewards & Recognition

Employee and employer views on items such as base pay, pay progression, short and long term incentives,

awards and recognition programs, superannuation and flexible salary packaging arrangements did not rank

highly as attraction reasons. However, remuneration and pay arrangements appear to take on a higher

level of importance to employees once employed within the industry.

Some employers believe that advertising starting salaries did not help them attract suitable candidates.

Feedback from employers suggested that most acknowledged that the pay levels are below market

average.

According to recent salary survey data12, the hospitality and Tourism Industry ranked 3rd lowest by average

remuneration at $56,501, the highest average remuneration of $130,213 was recorded by the mining

industry. The only industry sectors below hospitality & tourism included call centre & customer services

($53,786) and administration and office support ($52,082). The low average remuneration for the Tourism

Industry may be impacting on the industry’s ability to retain skilled candidates given the rising level of

importance remuneration takes for employee survey respondents.

Employment Arrangements

Employment Arrangements include items such as hours of work, work/life balance, health & wellness

programs, induction programs, diversity & equity, and flexible work arrangements.

Employee groups continually cited job satisfaction, working with people and flexible work arrangements

as some of the most valued aspects of working within the industry. With regards to flexibility in work

arrangements, flexible hours of employment was highly valued by many.

Table 4: What employees’ value

Employer Comments Employee Comments

Workplace Culture

Work Environment

Flexible Hours

Job Security

Competitive Remuneration

Workplace Culture

Team Members

Flexibility (including hours)

Job Satisfaction

Location

12 Seek - Advertised Monthly Salary Survey Data – June 2013

40

Many employees cited a deep passion for their job and of working with a great team. The need for

affiliation and job satisfaction was absent from employer comments.

Employees mentioned diversity of work repeatedly as a reason they were attracted to working in tourism.

Building a broad range of skills that are required to deal with different situations can also benefit the

employee for future career opportunities.

Management & Leadership

The quality of management and leadership plays an important role in attracting individuals to an

organisation. Organisational values and direction, decision-making and involvement, and quality of

supervision can influence an individual’s perception of an employer and their workplace.

Although it didn’t rate as highly when compared with other factors, working at an organisation that treats

employees fairly, demonstrates strong values and ethics, and ‘makes a difference’ are important factors

influencing an employee’s decision to join or leave an organisation.

Smaller operators who focused on “family” values and promote a strong team culture in the workplace

were able to retain their employees for longer periods.

Career & Development

Table 5: Career & Industry Profile

A common perception of the Tourism Industry is that it

provides limited career opportunities. The ability of

organisations within the industry to attract and retain

skilled employees is impacted by this negative

perception.

Both employees and employers recognised that career

progression is an important factor to attracting

employees to the industry. Providing training and

development opportunities was consistently seen by

employers as a mechanism to both attract and retain

employees.

Some employers suggested the need to align closely with

educational institutions to assist with attraction and

promotion of the many and varied career opportunities

that the industry has to offer. Career development also

appeared to be of greater importance to employees and

of lesser importance to employers.

Summary of Observations

In summary there are a number of factors that influence individuals considering employment within the

Tourism Industry. Intrinsic factors such as job satisfaction and a desire to work with people should not be

underestimated as key reasons why individuals seek out employment within the industry.

Many employers considered that providing more learning and development opportunities, promoting the

benefits of working within the industry, simplified employment conditions and aligning with educational

institutions would assist them to attract more suitable candidates to the industry.

Whilst employees agreed that increased training and development opportunities would help attract more

candidates, a marked difference between the two groups was the importance of competitive

remuneration. Although competitive remuneration had not necessarily attracted individuals initially to the

Employer Comments

“Promote industry as long term career option”

“Improve the profile of a career in tourism to ensure we attract and train motivated staff who are willing to stay in tourism despite its transient and seasonal nature”

“Make tourism an appealing career to school leavers”

41

industry, their needs change. Employees placed a much higher priority on the need for competitive

remuneration once employed within the industry. More competitive remuneration may also help with

retention of existing employees and the attraction of higher calibre candidates. Although providing more

competitive remuneration for experienced employees may marginally increase wages costs, this will be

more than compensated for, by increased retention and hence productivity.

A critical and somewhat overlooked fact by employers is the desire for increased workplace flexibility for

many of the individuals currently employed within the sector. The need for flexibility could be in part

driven by the predominance of 25 to 40 year old females (42%) working within the industry that were

surveyed.



Improve HR management practices and structures at the enterprise level


10 Promote the use of progressive human resource practices and structures by tourism employers. Some

of the initiatives could include:

10.1 Provide coaching and mentoring of owner-operators on progressive HR practices including job

sharing, and how to provide flexibility to employees

10.2 Recognise and showcase employers who use effective HR practices to help attract and retain

their workforces

10.3 Educate employers on their legal employment obligations and the cost benefits of improving

retention through creating and managing expectations, promoting more intangible but valued

employment arrangements and rewarding performance

10.4 Provide a range of practical best practice HR guides to employers related to people

management practices and structures that will help them attract and retain the right workers.

Refer to QTIC, Tourism and Hospitality – Best Practice Guide

42

Appendices

Appendix 1 – Methodology, Approach and Survey Demographics

Appendix 2 – Summary Policies & Programs (Commonwealth & State Government)

Note: A booklet entitled “Guidelines and Tips for Industry Employers on Improving Engagement” has been provided as a separate stand-alone document.

43

Appendix 1: Methodology, Approach and Survey Demographics

The approach adopted by BDO in meeting the scope and deliverables of this engagement involved a

number of distinct activities which were then analysed to assess common themes and outline relevant best

practices in Queensland and other jurisdictions.

Specifically, research, data gathering and industry consultation involved:

A desktop review of existing research material which was summarised and contextualised to

support the project objectives

Summarising findings from previous reviews and existing approaches across the tourism sector and

contextualising these findings with other industry wide perspectives i.e., Tourism 2020 and other

industry and state based initiatives

Industry consultation. Given the approved research budget and tight timeframes (48 person-days

effort spread over 9 weeks), the consultation approach was restricted to primarily surveying

employers and employees via an online survey. A series of focus groups with Tourism Industry

employers and employees were also held at Cairns and Brisbane to help gather additional

qualitative information.

The online survey was made available to solicit the feedback from employees across the four sectors. The

survey sought input on what attracted employees to the industry, how they perceive career options within

the sector and where they are most likely to seek employment in the future.

In addition an online survey was made available to nominated HR Managers & Operators for each region.

The survey sought input and their perceptions on what attracts employees to the sectors, and the

constraints and opportunities of retaining them.

Consultations were also held with identified stakeholders from industry associations and other relevant

organisations to solicit their views.

The primary research phase had some limitations in terms of sample sizes which were smaller than

expected and also the relatively small numbers of tourism employees and employers who participated in

focus groups. These factors were regularly reported to QTIC as the engagement progressed, and has

meant that the deliverables produced for this engagement have been concentrated on the industry as a

whole as well as being targeted at industry employers more generally.

The survey was issued to the Queensland Tourism Industry Council (QTIC) membership and made

available more broadly through various Region Tourism Offices and other online means. Only 32

employers and 71 employees responded to the survey

Focus group invitations were issued to the QTIC membership in selected regions. 4 Four focus groups

in total were scheduled for 2 locations, Brisbane and Cairns, 2 for employers and 2 for employees.

There were no acceptances for the employee groups - the 2 focus groups for employers were held with

only 15 attendants in total

44

Survey Demographics

Two surveys were developed, one soliciting views

from employees working within the industry and

the other from employers (including owners,

operators and/or HR managers).

The surveys were made available online to

survey participants. Paper versions of the surveys

were also made available and responses included

in the overall analysis.

Industry engagement and overall survey

responses were low. As a result information

gathered from the surveys has been used to

generate high-level themes only.

We would caution using specific survey findings

without further consultation with key

stakeholders to confirm the validity of the

overall findings.

Table 1 – Workforce

Employers Employees

Total Reponses 32 71

- Male 41% 26%

- Female 59% 74%

Full-time 44% 73%

Average # of emp 58

Employee Turnover 25%

Table 2 - Age Profile

Age group Employers Employees

>20 11% 0%

21-25 19% 9%

26-30 26% 27%

31-40 20% 27%

41-50 11% 21%

51-60 8% 15%

60+ 5% 1%

Information was gathered and segmented by

Region and Industry Sector. The limited number

of responses have not allowed for detailed

analysis of results by either segment.

Table 3 - Region in which organisations operate

Region Employers Employees

Brisbane 29% 40%

Gold Coast 20% 9%

Sunshine Coast &

Wide Bay

26% 13%

Mackay &

Whitsundays

9% 3%

Townsville 0% 1%

Cairns 17% 14%

Other 21%

Table 4 - Sector in which the organisation

operates

Sector Employers Employees

Accommodation 31 29

Tourist Services 29 16

Adventure Tourism 8 12

Food & Beverage 15 24

Other 17 19

45

Appendix 2: Summary of Policies & Programs (Commonwealth & State Government)

Objectives Focus areas Policies & Programs

Commonwealth

Tourism 2020

December 2011

Tourism operators can meet their

labour and skill needs to deliver high

quality customer service to all

visitors. Including those from Asia

Increase supply of labour, skills and

Indigenous participation

Policies

Implement the 8 Hot Spots pilots

Simplification of 457 visa processing guidelines

Develop template labour agreement for the Tourism Industry

Participate in Fair Work Act review

Programs

Pacific Seasonal Worker Pilot Scheme to tourism in Broome

Regional Sponsored Migration Scheme allows regional employers to

sponsor foreign nationals

Pilot program to facilitate skills transfer between indigenous and non-

indigenous businesses

Labour and Skills Connect online solution for education, training,

recruitment and retention

T-QUAL Strategic Tourism Investment Grant to provide business skills

training for indigenous people

Indigenous Employment Program aims to increase employment and

economic development opportunities for indigenous Australians

Queensland

Tourism and

Hospitality Workforce

Development Plan

June 2012

Deliver training and skill-

development outcomes that are

business orientated and designed to

meet world class tourism product

and services standards

Provide existing and new workers

with the opportunity to enhance

Attraction, Recruitment and Retention

Mobile and seasonal workforce

Greater portability of skills and

qualifications

Pathway programs

Recognition of prior learning (RPL)

Policies

Develop and promote career pathway opportunities aimed at raising

the profile of the Tourism Industry to attract and retain a skilled

workforce

Promote the ‘tourism story’ focussing on the environmental, economic

and social contribution of tourism to the wider community, at a

whole-of-state and regional level

46


their skill levels through formal

training.

Engaging with the non-traditional

workforce

Ensure workforce mobility and seasonal workforce issues are linked to

workforce planning at a whole-of-state and regional level

Flexible training delivery is required to support the pool of casual,

mobile and seasonal workers, to be better able to respond to an

increasingly global labour market and subsequent labour mobility

Develop a skills and qualification recognition system to support labour

mobility within and beyond the Tourism Industry

Develop and support pathways programs to assist with improvements

in attraction and retention within the training system

Improve access pathways to VET training through better consumer

information and greater employer-trainer and industry engagement

Develop a funding model that is industry led and tied to workforce

planning strategies developed by industry

Recognised Prior Learning requires greater promotion with improved

and cost-efficient systems to encourage and assist candidates through

the process

Recognise training pathways associated with non-accredited training

Provide support to businesses and operators that will enable them to

better engage with the non-traditional worker

Programs

Webpage that can assist tourism businesses with general information

on the industry, operations and support

Works TV provides the latest employment opportunities and career

information across the industry

Cookery training opportunities for over 700 people seeking to enter

industry or upgrade skills

Gateway schools program aimed at improving industry-school

47


engagement

Chinese language and cultural awareness – raising the level of

proficiency of operators to provide better products and service

Indigenous Hospitality Pre-employment -8 week training course for

those interested in gaining skills to work in the industry

Indigenous champions network – increases operators awareness of how

to encourage and maintain increased participation the indigenous

Seasonal worker program 3 year trail

Mature Aged Project promoting the benefits of older workers (45+)

Salute to Excellence recognising and celebrating high achievers in

year 12 training in tourism or hospitality and encouraging them into

the industry

Wet Tropics Tour Guide Training assists the industry expand their

knowledge of the World Heritage Area and create information, skill

sharing and networking opportunities

Victoria

Victorian Tourism

Workforce

Development Plan

2010-2016

Increase supply of labour to the

Tourism Industry to deliver high

quality service standards which meet

visitor needs and expectations

Support the provision of sustainable

employment conditions which, in

aligning with the relevant awards

offer packages that will attract and

retain individuals with the relevant

qualifications and experience and

ensure that tourism is seen as a long-

term career opportunity

Making tourism a career of choice

Supporting sustainable workforce

structures

Retaining quality people

Growing the tourism workforce

Training and skilling the tourism

workforce

Supporting small business excellence

Growing the tourism workforce in

regional Victoria

Policies

Increase tourism business awareness of and participation in the

Victorian Skills Pledge

Assess individuals skills and experiences as part of gaining RPL through

a registered training provider

Establish tourism ambassadors program

Leverage off the relatively high take-up of hospitality courses

undertaken through VET-in-schools to promote tourism careers to

senior students

Develop measures to promote tourism employment and career

prospects to individuals returning to work

48


Ensure education and training

systems deliver the skills and

knowledge required to accommodate

the needs of both individuals and

businesses in the Tourism Industry.

This will include training that is easy

to access and that prior learning is

recognised

Support employees and employers in

the Tourism Industry, particularly

small businesses, to address current

and future workforce needs through

the provision and awareness of

information and advisory support

groups

Address labour and skill shortages

common to regional Victoria

Actively provide advice to tourism employees and employers

negotiating workplace agreements

Ensure tourism employees and employers are aware of the

modernisation of awards relevant to the Tourism Industry

Identify reasons and develop actions to address factors which

influence tourism employees choosing to stay or exit the industry

Investigate impediments to the national recognition and portability to

training qualifications and certification in tourism occupations

Investigate the establishment of a national long service leave

entitlements scheme

Roll-out a tourism leadership program to deliver professional

development and networking opportunities

Develop seasonal workforce management plans tailored to needs of

individual destinations

Negotiate labour agreement to secure appropriately skilled overseas

worker to fill identified labour gaps

Ensure high demand tourism occupations are considered under the

State Migration Plan and reviewed annually

Improve businesses access to sponsored skilled migration visas

Include high demand tourism occupations on the General Skilled

Migration Skill Occupation List

Engage businesses to develop and implement workforce strategies

that focus on training and skill development which will make

employment more attractive

Ensure training packages are integrated and meet the needs of the

Tourism Industry

Evolve Victoria’s Tourism Excellence Program to increase the

involvement of tourism businesses focusing on staff recruitment and

49


retention strategies

Increase industry awareness of the Tourism Channel

Programs

Skills Pledge publicly acknowledging business efforts to invest in skills

development.

Skills Stores provides individuals with advice about current skills and

experience and access to registered training organisations

Tourism ambassadors and road shows to provide individuals

information on career opportunities in the industry

Internet based portal that aims to promote careers in tourism and

providing information on employment and training

Leadership program brings together diverse groups of people in an ‘in

situ training’ environment that facilitates networking and mentoring

by industry leaders

Victoria works offers a suite a programs that connect people to

employment and training, focusing on mature age, youth, indigenous

and parents returning to work

Restaurant and Catering Association labour agreement to provide

access to overseas cooks and chefs

Securing Jobs for your Future – Skills for Victoria package delivers a

demand driven training model and a broader range of innovative

practical courses

Victorian Training Guarantee provides eligible individuals with

government subsidised training that can be accessed anytime and

available for further higher training

Victorian Certificate of Applied Learning for year 11 and 12 students

is an alternative learning stream focussing on practical work-related

50


experience

Apprentice Kickstart Extension provides funds to employers to

encourage commencements of young people in skill shortage trades

Tourism Excellence Program provides the impetus for businesses to

increase their professionalism through improved management

systems, career mapping strategies and focus on superior customer

service

Local Skills Partnerships Program enables regional local governments

to build their economic development capacity and capability through

supporting the recruitment of a highly skilled workforce

Western Australia

State Government

Strategy for Tourism in

Western Australia 2020

Expand hotel, aviation and workforce

infrastructure to support the growth

Provide every visitor with the

opportunity to have an Aboriginal

tourism experience

Infrastructure

Indigenous

Policies

Industry training and participation

Alignment of skills inflow through immigration

Industry training and development initiatives

Tourism and hospitality workforce participation

Opportunities and pathways for Aboriginal employment in tourism and

hospitality, including through traineeships and cadetships

Developing a program of cross-cultural training and awareness

opportunities for both employees and employers

Programs

Hospitality Passport gives talented apprentice chefs and hospitality

trainees an opportunity to learn and earn in some of the State’s top

restaurants and hotels

FutureNow is a training council that facilitates the continual

improvement of workforce skills to drive productivity and deliver a

competitive edge now and for the future

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LiquID - ID and discount card exclusively for hospitality employees,

certifies training and provides access to a range of discounts

Tourism Employment Plans in Broome are delivering regional solutions

to ease the immediate labour and skills pressures supported by

regional committees

South Australia

Tourism Industry

Workforce

Development Strategy

2007-2012

March 2007

Position tourism as an employer of

choice to targeted sectors of the

current and future labour market and

promote career opportunities

accordingly

Develop strategies to improve

retention and career pathways

within the industry

Deliver training for continuous

improvement in skills for employees

and employers consistent with

industry needs

Recruitment

Retention and progression

Enhancing skills

Policies

Determine best fit ‘segments’ within the current and future labour

markets and promote these segments

Promote industry experience (skills gained) of students and/or past

students and employees to provide a realistic understanding of career

and employment opportunities

Continue to advocate to the Federal Government for legislation that

influences the industry’s capacity to attract and retain employees

Align the industry with Commonwealth and state initiatives to support

participation by a broad range of social sectors

Support the implementation of the FTH Skills Council SHIFT.COM

website proposal

Increase the capacity to up-skill when required and recognise prior

learning as part of training processes

Encourage industry sectors to work together to identify job-share and

exchange opportunities, and develop and recognise competency-based

skill sets across locations and businesses

Continue to encourage and facilitate access to flexible training

arrangements within the workplace

Support new delivery models that effectively meet education and

training needs in regional tourism areas

Support and extend the Appetite for Success program to key

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occupational areas within the Tourism Industry

Continue to provide, facilitate and promote a range of networking,

training, mentoring and business development information and

opportunities specifically to cater for tourism businesses

Raise tourism businesses’ awareness of training and the benefits of

integrating flexible employment and workforce planning into business

practices

Strengthen human resource management practices and customer

service excellence within the National Tourism Accreditation Program

Liaise with non-tourism specific organisations to ensure that tourism

businesses can capitalise on business development training and

mentoring opportunities

Conduct a skills audit/training need analysis on Aboriginal tourism

businesses to provide an indication on skills gaps within this sector

Programs

Workforce development Program provides grant funding for industry-

wide workforce projects

Mornington Peninsula Tourism Traineeship Program offering young

students opportunities to undertake training and work experience

Tasmania

Tasmanian Hospitality

Industry Skills Plan

June 2012

Enough people to do the work

required, to the standard required,

to consistently deliver a world class

experience.

People employed in the hospitality

and tourism industries have

appropriate skills and attributes to

deliver quality experience

Improving recruitment, induction and

retention strategies

Building skills to meet the needs of

customers

More effective promotion of hospitality

career and education pathways into

schools

Development of a training culture

Policies

Feasibility study into regaining Tasmania’s reputation for

internationally recognised hospitality graduates

Industry reference group for VET and RTO discussions

Design, develop and deliver induction and in house training tools

Design and develop skill set for Training Champion

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People with experience and

expertise are retained within the

industry because they have the

opportunity to grow and build

satisfying careers

Businesses in the industry have the

right information, management

systems and processes in place to

maximise the contribution of their

people

The industries have structures and

mechanisms in place to address

future workforce and skill needs on

an ongoing basis

within the hospitality industry

Programs

Tourism Business in the Digital Age helps tourism businesses develop

online capabilities to engage with the digital environment

Workforce Participation Program aims to increase participation by

encouraging ‘people with potential’ to enter the workforce

Pilot Workforce Planning Program helping businesses develop and

adopt workforce plans focussing on retaining mature aged worker

approaching retirement

Hospitality Industry Employment Portal that provides information on

career, training and vacancies

Northern Territory

Northern Territory

Tourism Strategic Plan

2008-2012

Address skills shortages problems

associated with seasonality,

competition from other industries,

economic growth and the casual,

itinerant nature of the tourism

workforce

Competition for skilled workers

Limited investment in skills

development by employers

Limited supply of skilled labour

Strong economic growth

Policies

Assist tourism operators target mature age workers, indigenous

workers and apprentices

Educate operators on the role of working visitor placement agencies

Investigate establishing job sharing systems with other tourism regions

in Australia that have complementary tourism seasons

Programs

Tourism Employment Plan –Red Centre is delivering regional solutions

to ease the immediate labour and skills pressures supported by

regional committees

Indigenous Workforce Participation initiatives program aims to

increase workforce participation for indigenous Territorians by

assisting industry and business to plan establish practices and system

54


that engage and expand the numbers and skills

National Tourism Training Academy to up-skill and assist finding work

for indigenous people

New South Wales

Tourism Towards 2020

The NSW Tourism

Industry Plan

March 2011

Implement training and workforce

development programs in partnership

with industry

Enhanced Tourism Industry skill,

knowledge and professionalism

Policies

Complete a NSW Tourism Skills Development and Workforce Planning

report

Support skills development through industry based training

Support industry associations to help their members attract and retain

skilled people

Provide capacity building programs to industry

Support the extension of working holidaymaker and other tourism-

related visa policy

Upgrade training assistance to small tourism businesses

Provide training support for tourism businesses

Programs

TAFE voucher system enables businesses to have greater flexibility in

planning training and development strategies by enabling individuals

to allocate money towards training they don’t need to use

immediately

Education and Training Committee brings a listing of those

educational bodies around the state offering internship programs

Tourism Employment Plans are delivering regional solutions to ease

the immediate labour and skills pressures supported by regional

committees

Services Skills

Australia People working across tourism and

hospitality will be appropriately

Creation of a highly skilled workforce

Access to quality employment

Policies

Creating a more responsive training and learning system

55


Tourism and

Hospitality Workforce

Development Strategy

2009

skilled and able, through the

application of their expertise, to

contribute to the growth and

development of a sustainable,

productive and profitable industry

Shaping the future through better

workforce planning

Expanding the traditional workforce

Better recognition of learning skills

Accelerated pathways

Focus on management and business skills

People currently not in workforce and welfare to work targeted

groups

Engaging indigenous workers

Managing the generational change: Young people and mature aged

workers

Using overseas workers

Improved attraction and recruitment

Enhanced retention strategies

Flexible work practices and employment arrangements

Improving industry image and the provision of career pathways

Better information and analyses of data at a regional level

Destination management planning and labour force mapping to assist

workforce planning

Provide high quality workforce information, tools and services

Programs

Workforce Futures Program delivering a practical approach addressing

labour and skills issues

Skills advisor network utilises advisors to help businesses through a

process of planning, development and implementation to address

workforce needs

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