Blog Archives

Why is it even a contest? Roads and Rail vs Tech and Digital.

It makes us feel we’re a nation on the move seeing the worker bees in High Vis vests bringing impressive infrastructure spending to life. Cities and populations are growing and we need improved roads and rail services. Great. But what happens at the end of the line?

Building roads and rail doesn’t, in and of itself, add to our GDP. It creates jobs for now, on the tax payer’s dime, filtered through major construction companies. It’s a centuries old model that makes sense and is understood by the electorate as a necessary and valuable addition to our cities and regional centres.

But all this visible ‘concrete’ activity means we risk a drift into the ‘also-rans’ of world economies if our Federal and State Governments don’t get more critical workforce planning sorted. We’re far from being known as global leaders in technology and digital. Consider the following recent observations:

  • John Durie in The Australian wrote that Israel’s ‘start-up nation’ success is built in part on a model of generous government incentives.
  • What should an accountant say to a successful early stage start-up who asks the question, “Why don’t we move to Singapore, where the tax incentives are very attractive?”
  • At the Rampersand Investor briefing on November 11th, two of the growing tech businesses lamented the lack of government grants and incentives, in spite of the fact that they are the future big employers governments need to realise their ‘jobs jobs jobs’ rhetoric.  
  • In the next three years alone the Robotic Data Automation Services sector is forecast to grow by $2B globally (HFS Research, 2018).  Where is Australia in this growth?
  • Ginnie Rometty, IBM’s CEO says we need to change our approach to hiring, as 100% of jobs will change in the future and AI is coming at us fast.
  • How will Australia attract more global tech players to our shores if our tech and digital talent has to go abroad to build their own stellar careers?

The cry of Jobs jobs jobs has become a hollow call out if we don’t Work work work on being future ready. Industry can’t do it alone, universities can’t do it alone. This requires high level resolve at a government level to create an environment to supercharge the virtual traffic routes of tomorrow. And if that means employer and employee incentives and grants, the short-term costs will be Australia’s gain in the longer term.

Am I the only Jo Public who is alarmed by our collective Federal and State Governments’ lack of vision?

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Posted in Slade Executive, Technical & Operations, The world @work

Resourcing the new Infrastructure State. A challenge for Victoria?

Victoria – The Infrastructure State. It could be a number plate. The Melbourne Metro Rail project is underway, level crossings are being replaced, plans for ‘sky rail’ continue to cause controversy and an airport train could be back on the agenda. For roads, the Tulla freeway is being widened, the West Gate and Bolte will get improvements, and the Victorian Government is considering a proposal to build the ‘missing link’ Western Distributor.

Last December at the Engineers Australia Transport Year in Review, I listened with interest to Corey Hannett, Coordinator General, Major Transport Infrastructure Program on the current infrastructure program of works scheduled for Victoria. From a project resourcing point of view, the Government’s main concern is the lack of skilled project leaders to deliver this ambitious program of works.

Key themes presented were:

  • Ensuring the right balance between public and private resources to manage multiple, overlapping projects within optimum timelines
  • Sourcing skilled project leaders across different disciplines, including CEOs, Project Directors, and Senior Project Managers
  • Diversity in the Construction sector

From an executive recruitment perspective, these concerns certainly mirror our experience when consulting with organisations in building, construction and engineering over the last 12 months: Demand for experienced, diverse and specialist talent is at a premium. As the momentum for construction work Australia-wide continues to gather pace, the question remains how do we address this to help the immediate needs of Victoria?

There are serious concerns about poaching staff being felt across the sector, which is experiencing significant problems with retention (a fact that’s not lost on us when headhunting). Here are three points that were raised to consider when hiring, which also resonated with me:

  • When considering a candidate’s abilities, look for transferable skills, taking the time to consider all of their work history, not just the first page of the CV
  • You don’t need someone who has done the exact same job, you need someone who can do the job
  • Victorian employers may benefit from staff attrition with the completion of major projects interstate or could source talent from other sectors where demand has subsided, such as mining (particularly in WA and QLD)

I will be a keen observer over the next few years to see whether we have the appetite to meet the talent demands of the Infrastructure State.

What measures do you think are needed to address talent shortages for major infrastructure projects in your state? Share your point of view to continue the conversation.

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Posted in Slade Executive, The world @work

Managing funds with a social conscience

We’ve got the sun. We’ve got the space. With renewables fast becoming big business abroad, it’s obvious that the industry has huge potential here in Australia.

It’s great when you see a local company taking on the challenge. Recently one of my clients, a boutique infrastructure fund manager, was preparing to launch a fund focusing on investment in solar energy. Their initial fund raising target was $25 million, and with the prospect of subsequent equity to be raised at a later date, aimed to raise a total of $75 million. According to the fund manager, when fully invested, we would be talking $100 million. Those are considerable dollars in anyone’s book.

The fund expects to drive the expansion of the solar market by creating employment, supporting Australia’s only panel manufacturer and will produce associated social benefits, such as displacing diesel within remote indigenous communities. In terms of environmental benefits, the project will abate approximately 260,000 tonnes of CO2 annually, equivalent to powering almost 50,000 homes per annum.

The fund was looking for an executive to raise funds from the High Net Worth investor market, but only required support on a part-time basis. They engaged me through Slade Executive to recruit an experienced BDM. The position had the dual appeal of flexibility for a business development professional who was looking for something different from the usual fare in managed funds distribution.

The successful candidate (an outstanding individual, highly experienced in the sector) has a young family and was attracted to the role by the opportunity to make a difference to the environment, not only for the future benefit of their children. They were also comfortable with taking some financial risk (the role is heavily performance based), but most importantly, the candidate believed in the goals of the fund.

While I’m not about taking credit for someone else’s hard work, my candidate has done a fantastic job. In fact they raised $100 million straight-up and the fund has now been closed. Sometimes we recruiters cop a bit of flak for the odd rogue in our midst who has left their social conscience at the door. Ditto the finance industry. So it’s a nice feeling when the stars align and everyone benefits while making a contribution to better the world we live in.

What socially responsible commercial projects have you been involved with?  How has working with an innovative partner in the corporate sector changed your Point of View?

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Posted in Accounting & Finance, The world @work