Workforce & Succession Planning Company LOGO Kate Murphy, MPA, CPM, SPHR Workforce Administrator, Iowa DOT Plan Basics, Survey Results & Recommendations for Workforce Planning in Your State Meet the WFP Team Reg 1 East Reg 2 South Reg 3 Midwest Tom Prestash, PE PennDOT Robin Stevens, Georgia DOT Deb Wiley, Kansas DOT Joe Villarreal, Michigan DOT Executive Engineer HR Division Director Spec. Assistant to the HR Bureau Chief HR Specialist HR Division SCOH Rep. Reg 4 West Agenda 1. WFP Basics & Survey Results 2. Novice-Intermediate-Advanced Plans 3. Succession Planning – GA Style 4. Private Sector Update- 3M 5. Process & Recommendations “Writing on the Wall” • Public sector EE’s older than private sector • 50% Public sector jobs require specialized knowledge vs. 29% private sector • Pension plans facilitate early retirements – Abby and Boyd; The Aging Govt. Workforce • Over 37,000 NY state EE’s retired in last 6 yrs • CA State Auditor ID’s HR Mgt- High risk 2007 – 42% CA leadership (13,000 EE’s) out in 7yrs The Workforce Gap 1. WFP Template Basics Clockwise > Annually Set Strategic Direction Monitor, Evaluate & Revise Supply & Demand Workforce Plan Structure Develop Action Plans Implement Action Plans Iowa WFP Model Workforce Planning Model Phase 1 - Prepare for Workforce Planning 1.a - Secure sponsorship 1.b - Build workforce planning project team 1.c - Identify strategic direction 1.d - Engage managers and collect initial data Phase 2 - Conduct Workforce Analysis 2.a - Determine what we need (demand) 2.b - Collect and review current data (supply) 2.c - Assess gaps and devise strategies Phase 3 - Develop and Implement Action Plan 3.a - Develop action plan 3.b. - Implement plan Phase 4 - Monitor, Evaluate and Revise 4.a - Monitor action plan progress 4.b - Enterprise tracking 4.c. - Annual updates WFP Preparation • Secure Sponsorship • Build program team • Identify strategic direction • Interview Managers, create metrics & collect initial data Conduct Workforce Analysis Environmental Scan Factors • Determine Demand (Environmental Scan) • Collect current supply data (Organizational analysis) • Assess Gaps = STRATEGY to overcome gaps What are the key economic factors facing the agency? How will legislative decisions, including the appropriation process impact your agency? How will changes in external workforce composition or patterns (demographics, diversity, growing/ shrinking occupations) impact your agency? Organizational Analysis Factors How will the agency structure look in five years? How will it get there? How many and what types of jobs will be needed to meet current performance objectives as well as future agency strategic goals? Issues Conduct Workforce Analysis Measures 1. Full-time Employees 2. Part-time Employees Temporary Employees 3. Number of Hires Average days to fill 4. Contractor Employees 5. Average Length of Service (LOS) 6. Average Age 7. Total Separation % 8. Female & Minority Separations within 2 years 9. Retirement % FY2009 Data FY2010 Data FY2011 Data Notes Supply Information Job Title 1 Accountant 2 Pay Grade Quantity 1-yr 3-yr 5-yr % Turn in 3 years 26 1 0 0 1 0% 27 2 1 1 0 100% 2 Chemist Assess Gaps-Devise Strategy Workforce Stability Issues Workforce Stability Strategies Need to support knowledge transfer due to potential retirements. Facilitate a seamless transition with retirees and improve bench strength for key positions. Diversity Issues (General Culture)* Diversity Strategies Overall diversity awareness by management teams. Conduct annual diversity training for all supervisors to include information on recruiting for increased diversity. Affirmative Action Issues* (Underutilization) Affirmative Action Strategies and Goals Diverse recruitment for underutilized positions. Develop relationships with minority communities to help in increasing the numbers of protected class applicants on the underutilized certified lists of candidates. Recruiting and Hiring Issues Recruiting and Hiring Strategies Limited pool of highly technical candidates. Develop and implement numerous tools including an H1-B sponsorship process for technically prepared international candidates for only those positions that have a demonstrated inability to fill with qualified candidates. Development Issues Development Strategies Lack of a process for onboarding new hires and transferred/promoted employees. Purchase software for new hire, promotion and performance development. Succession Management Succession Management strategies Key areas will experience retirements/separations and require knowledge transfer. Develop methods to assure continuity of service through transfer of knowledge. Focus on Management and Service Maintenance classes regarding succession management. Focus first on Planning, Programming and Modal division due to the proportionately large number of possible retirements. Action Plans Hiring Retention Affirmative Action Development Diversity Workforce Stability WFP/Succession Survey •Region 1- East •Maryland- no DOT wide WFP, have WF strategy committee; systematic & across dept., Advanced Leadership Program & Highway Maint. Succession Planning/Dev process. Unionized & not subject to Collective Bargaining. WFP/Succession Survey • Region 1- East • Pennsylvania- No WFP. 2008 Succession Plan. Access SAP reports from state HRIS system to ID candidate pools, monthly data for authoriz. vacant/funded positions, plans by district. WFP/Succession Survey Region 2- South •Tennessee- Statewide Org.Dev. •Strategic Learning Solutions •Alabama- DOT •Succession plan for Civil Engineering (Currently under a hiring freeze) WFP/Succession Survey Region 2- South- Georgia The law of workforce planning Official Code of Georgia 45-20-1:Section f Each agency shall develop an annual work force plan according to statewide criteria and guidelines and shall provide a report of such plan annually to the state merit system for incorporation into the state-wide work force plan to be submitted to the Governor and the General Assembly. WFP/Succession Survey • GDOT Environmental Scan- Agency needs to provide the same level of services with reduced workforce. … hiring freeze on all but critical positions …a freeze on our compensation programs. (Actual attached) • GDOT workforce goal (linked to the agency's strategic goals): – To retool, retain and develop a highly competent, motivated workforce and establish GDOT as an ‘employer of choice’. • Top Positions for WFP – SR. Leadership & Office Heads WFP/Succession Survey • GDOT Evaluation How will success of this strategy be measured? Timeline for implementation? How much money will this strategy save? How much money will this strategy generate? How much money will this strategy cost to implement? – Key Action or Activities Target Completion Date Persons Responsible Status / Progress Update WFP/Succession Survey •Region 3- Midwest •Iowa- DOT •Workforce & Succession plans •2 yrs of Data & Key/Critical positions identified, action plans underway RIGHT PEOPLE RIGHT TIME RIGHT SKILLS RIGHT JOB STATE OF IOWA WORKFORCE PLANNING WFP/Succession Survey •Region 3- Wisconsin •“Retirement vulnerability”-10% or more EE’s eligible to retire •“Critical hiring needs” Hard to fill + Hard to retain + Location Critical core operation High retirement vulnerability Chronically/traditionally underutilized WFP/Succession Survey •Region 3- Midwest •Kansas - in development •Missouri- Annual turnover reports, leadership development program with self direction WFP/Succession Survey •Region 3- Michigan • Potential turnover 2009 - 2014: 27.8% eligible to retire in 5 years 51% state employees 45 or older • 4 step Workforce Plan: • Department Strategic Direction • Conduct Workforce Analysis • Implement Strategic Workforce Plan • Monitor, Evaluate, and Revise WFP/Succession Survey •Region 4 – West-Caltrans •Started in Maintenance-next ROW Currently forty-five percent of Caltrans’ workforce are fifty years of age or older. The Department must ensure it can attract new employees and develop existing staff with the required knowledge, skills, and abilities to replace those who retire. “Caltrans improves mobility across California” Caltrans - Maintenance 1. Review Strategic Plan 7. Evaluate the Plan 6. Develop Priorities & Implement Solutions 2. Identify Work Functions WORKFORCE PLANNING MODEL 5. Analyze Workforce Gaps 3. Identify Staffing Requirements 4. Project Workforce Supply GAP ANALYSIS DEMAND Calculating Projected Workforce Gap Current Required Staffing Level Current Current Anticipated Required Staffing + Vacancies + Workload = Staffing Level - / Overage - Changes Level SUPPLY - - Projected Internal Supply Current Staffing - Projected Attrition Age Demographic Data Budget Projections Attrition Rates FY 2014 Required Staffing Level Equipment Operator II SUPPLY - 1,549 (FY 2009 Staffing Level) 676 FY 2014 Projected Internal Staffing Supply 1,549 (FY 2009 Staffing Level) + - 130 (FY 2009 # of Vacancies) + 0 (Anticipated Workload Changes) = 1,679 ( 2014 Required Staffing Level) Strategic Planning Budget Projections Projected Workforce Gap Supply Strategic Planning 1,679 = Projected Internal = Level DEMAND Gap Analysis GAP 873 - (733 + 140 = 873) = 676 ( 2014 Projected Internal Supply) 733 = FY 2009 # of Employees Age 50+ 140 = 5-year Projected Non-Retirement Attrition Age Demographic Data Attrition Rates GAP 1,003 = FY 2014 Projected # of Staff Needed to Fill Required Level WFP/Succession Survey • Region 4- West- Alaska –WFP & Succession planning under development. –Newly appointed DOT Program Mgr; 8 CBA’s – Statewide guidelines http://doa.alaska.gov/dop/epic/workPl anDevelop/ 2. Progress Diagram Novice Alabama Alaska Kansas Intermediate Iowa Maryland Michigan Pennsylvania Tennessee Wisconsin Advanced California Georgia Missouri 3.Workforce & Succession Planning Robin C. Stevens Company LOGO Division Director, Human Resources Georgia Department of Transportation Succession Planning! Georgia Style Succession- Georgia Style! Strategies ● Identify, engage and motivate high-potential employees ● Assess needs and create development plan ● Accelerate development Outcomes ● Retention of high-potential employees ● Preservation of organizational knowledge and expertise ● Qualified leadership candidates Key Features–Participant Selection Selection o Who: Succession Planning Steering Committee o How: Self-nomination, requires sponsors, application process o Basis: Superior performance and high potential – “learning agility” ● Two tiers: mid-career and early-career participants o Begin with mid-career participants for near term needs Participant development targets specific position Mid-career tier may be phased out in 2-3 years o Early-career participants Individual development targets leadership competencies Key Features - Development Methods ● Individual Development Plan ○ Multi-rater assessment & General managerial skills assessment ○ Learning contract for each with success standards and timeline ○ Approved by Succession Planning Steering Committee & Managed by Succession Planning Coordination Team Learning Strategies - Job re-assignment ○ In-place special assignment ○ Mentoring — organizational knowledge: decisions ○ Coaching — personal effectiveness: behavioral Networking- Coursework and Training Critical Success Factors ● Two things that loom large in the literature, plus one 1. Leadership investment: Sustained dedication of time, attention and effort by committee members and mentors o GDOT has Steering Committee – 11 senior staff members, o Mentors, Networking Session Leaders -- senior staff & o Coordinating Team 2. Dynamic support: Effectively supported and energized with Individual Development Plans 3. Face Credibility Is it fair? Is it effective? GA Estimated Costs • Steering Committee and Mentors – Lillian Eby, UGA Applied Psychology – Orientation to principles/facts about Succession Planning: $1000 – Mentors workshop: $1000 • Full Program, First Year – CVIOG – Program GDOT custom leadership competencies into multi-rater 360: $2500 (one time cost) – Multi-rater 360+ two other leadership assessment tools + coaching session: $1150 per person – Additional coaching session at 6-8 months: $200 per person (long term--train internal staff) • Second Year – Objective managerial skills assessment =Provider/cost not determined • Note: Federal training dollars may be used to cover costs; no match required Succession Planning Program • Program Goal: – The creation of a qualified candidate pool for leadership positions, prepared to lead Georgia DOT effectively in accomplishing our mission. – Based on New Jersey DOT program – This is our first “intake” of 18 months long managed program MENTORS Critical to the Program Mentor functions • Provide positive recognition and constructive feedback • Share their knowledge of the organization’s unwritten rules • Model the right way of getting things done Benefits for Mentors • Re-engagement, networking opportunities, learning from the participants and discovering methods Leader Competency Profile 3 Competency/Definition Utilizing Communication Predictor Behaviors • Communicate effectively with employees that have Articulating ideas, thoughts diverse backgrounds and facts clearly, orally and • Write concise, precise, in writing; grasping the and, if necessary, tactful meaning of written and reports and spoken information, correspondence interpreting body language • Make concise, easily and applying it to job-related understood verbal situations; listening and explanations communicating in an • Make clear, professional attentive fashion while and engaging analyzing information, presentations; tailor asking questions and presentations to maintaining awareness of audiences; use underlying messages; being appropriate graphics, effective at presenting maps, or slides information to various sizes • Explain technical issues and types of groups in a non-technical, easyto-understand manner Leadership Behaviors • Advocate the ideas, principles and actions that advance the Department's mission in a compelling manner • Present concepts, goals and changes in Department strategy to internal and external stakeholders in order to secure support or approval • Prepare documents that represent the position of your group or the Department regarding an issue or challenge GDOT Curriculum Month 1 Activity Q and A with the Commissioner. Participants meet with the Commissioner for a one hour Q&A session. Have participants prepare questions prior (Leadership, Legal issues, Politics) etc. Objectives Competency Face to face meeting with Commissioner Smith Gain comfort and confidence with executive leadership Gain understanding concerning org issues and have high level questions answered 3,10 2 Meet with mentors with a specific question in mind as to how the participant can better manage their team or to discuss challenges facing participant’s current job. Mastering team leadership Improving management processes Learning from experienced mentors 3,4,8,9,13 3 Legal Issues for GDOT. Have Sandra or Matt meet with participants to discuss real legal issues facing the leadership of the Department. Understand legal issues facing the department Meet and build a relationship with Sandra and her staff 1 4 Reading Assignment. Read a book on leadership and present your findings to your Mentor. Discover different leadership philosophies and authors Share findings with mentor 1,11 Meet board members, understand their role in transportation policy/leadership role Gain confidence in meeting with and talking to board members 3,4,5 5 Meet the GDOT Board. Have a “working lunch” to meet with several of the board members to discuss transportation issues, leadership, and the future of GDOT 4. Private Sector -3M 3M Operations 60 Countries, 35 with laboratories 3M operates 35 distinct business units 3M holds 569 U.S. Patents In 2007, $24.5B in sales Employees:76,000, including 7,000 Researchers Headquarters: St. Paul, Minnesota “You have to try to train people how to think, you have to get them to imagine... to “see forward”... to think their way through circumstances which are unusual and different. That is what separates really great companies from average companies.” George W. Buckley 3M Chairman, President & CEO Questions from the Survey • AK-How to Succession planning with union EE’s and CBA’s? • MD- How have you established career pathing for critical positions? Did you change classifications to accommodate the development of candidate pools? • Various states- How do you start WFP with no budget and possibly 1 FTE? 5. ***** Recommendations -Program ChampionDept. Director/Secretary Division Director Professional Staff Head Count vs. Content Reps from Divisions Commit Resources Get started Now! Lessons Learned I • • • • • • • • • Research, identify, and use best practices. Take small initial steps. Do not be overly paperbound. Understand your data requirements. Use the advisory task force (workforce planning team) representing your agency. Set realistic time lines. Keep it simple. Clearly define expectations and responsibilities. Keep top leadership involved and ensure they are involved in the review stages. Communicate, communicate, communicate. Focus on being helpful to field offices. Voluntary use of the process is preferred over mandatory or forced compliance. Lessons Learned II • Address difference between "head count" and "head content." In other words, it’s not just about "keep the bodies"; it’s about keeping and developing quality employees with the right skills. • The program cannot be dictated or led by HR- rather it needs department leadership and broad base of involvement. • Once established, plans are often left unchanged & become outdated or irrelevant. • Emphasize employee development-cut preventable turnover and build bench strength. • Follow up and keep up the momentum. References • Abbey, Craig & Donald J. Boyd. The Aging Government Workforce. Rockefeller Institute, 2002 • www.cs.state.ny.us/successionplanning/resources/difference betweenworkforce.htm • High Risk Update, HR Mgt, CA State Auditor 3/2009 http://bsa.ca.gov/pdfs/reports/2008-605.pdf • Rothwell, Wm. J. Effective Succession Planning. • www.das/hre.iowa.gov/documents/workforce_planning/WFP DiversityAATemplate-06-09-09FINAL.doc • Seeing Forward: Succession Planning at 3M. © SHRM Foundation 2008 DVD • U.S. Forest Service. U.S. Department of Navy. Workforce Assessments and Human Capital Planning Conference, 11/01, Washington, D.C. References • State of Georgia. Strategic Workforce Planning Guide. www.gms.state.ga.us/agencyservices/wfplanning • http://sao.hr.state.tx.us/Workforce/guide.html#Model • Tennessee Workforce Planning Guide, SLS, 2/2009 • Richard Oyen, Succession Planning: 5 Costly Errors to Avoid. SumTotal, 2004-2009 • Cotton, Ann, 7 Steps of Effective Workforce Planning Univ. of Baltimore, IBM Center for the Business of Government. Special Thank You! • Mary Harker, Bernie Padilla, Jack Basso & Christine Beauvais- for sponsoring the WFP Sub committee and making this program possible! • State DOT Leadership from Iowa, Georgia, Kansas, Pennsylvania and Michigan who donated the staff time & resources of sub committee members.