Embed Size (px)
Citation preview
Migrating Knowledge Into Performance
4 Hutton Centre Drive • Suite 1050 • Santa Ana • California • 92707• 714.540.8889 phone • 714.540.6113 fax • www.Interliance-knowledge.com
Succession Planning
Brad Kamph
2
Key Challenges You Face
• Large numbers of new people will be hired while the experienced workers are leaving.
– Do we understand the real causes and impact of turnover?
– Are we tracking the knowledge assets that will retire and the gaps that will exist?
• Historically, knowledge assets have been owned by selected “experts.” The organization must “own” the knowledge.
– How are we trapping the knowledge of the organization’s most skilled and experienced employees?
– Is our current workforce capability sufficient to build or support our current system? Which skill depths are too shallow and how much time is left to act?
– Is the organization capable of developing the new level of talent required with the existing systems and processes?
3
The Challenge
• Demand is expected to outpace supply over the next decade. Demand for entry-level line workers will grow at 9% per year, with 10,000 new workers needed through 2010.
• Increased demand and a decrease in supply results in escalating wages.
• Lineworkers are one of the highest paid professions in the United States that does not require a post-secondary education. In May, 2005:
– Electrical lineworkers earned a mean hourly wage of $25.14/hour or $52,290 per year.
– Experienced electrical lineworkers earn well above $32.54/hour. Based on this pay, experienced workers could earn $48.81/hour during overtime.
– Working 20 overtime hours every month, experienced workers could earn over $79,397.60 per year.
4
Employment Rates, Unfilled Positions and Wages All Rising
Hiring Rates and Open PositionsTransportation and Utilites
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Jan-02 Jan-03 Jan-04 Jan-05 Jan-06
Op
en
po
sit
ion
s a
s a
% o
f to
tal w
ork
forc
e
Open Positions Hiring Rate
Hourly wages in the utility industry are increasing 38% faster than average wages for all industries Source: US Department of Labor
Hourly WagesNon-supervisory Utilities
$21
$22
$23
$24
$25
$26
$27
$28
Jan-02 Jan-03 Jan-04 Jan-05 Jan-06
5
Non-Retirement Attrition Affects Recruitment Requirements
• A 7% non-retirement attrition requires 44% more recruits than a 4% non-retirement attrition. The knowledge losses also increase over this time period from 4% loss to a 9% loss.
• The Department of Labor measured “quits” in the Utilities Industries at 19.4% for 2006. Allowing for the estimated retirements of 4.4% annually, this results in an average non-retirement attrition rate of 15%.
Non-Retirement Attrition Affect on Hiring Requirementsfor a 200 Person Organization
0
10
20
30
40
50
60
70
Year 1 Year 2 Year 3 Year 4Time Period
Nu
mb
er o
f N
ew H
ires
R
equ
ired
7% Non-retirment attrition 4% Non-retirment attrition
6
Executives and Managers Do Not Assess the Workforce Risks Equally
When managers were asked:Do you have sufficient time and resources to plan and implement workforce and knowledge initiatives?· 1 in 20 managers reported having sufficient time· 1 in 7 reported receiving additional resources for workforce initiatives
Executive InterviewsDo you feel your company will be able to successfully maintain your workforce
and knowledge assets?
0%
5%
10%
15%
20%
25%
30%
35%
40%
VeryConfident
Confident SomewhatConfident
No Opinionor Not
Confident
Manager's SurveyDo you feel your company will be able to
successfully maintain your workforce and knowledge assets?
0%
10%
20%
30%
40%
50%
60%
VeryConfident
Confident SomewhatConfident
No Opinionor Not
Confident
7
Although “Aging Workforce” Gets the Most Attention, Retirement Makes Up Just 15% of Total Attrition
Reasons Given for Attrition
Career change5%
Other4%
Better opportunity in a
similar job position
53%
Retirement15%
Personal reasons
15%
Work envinronment
8%
WorkEnvironment
8%
8
Missing the Opportunity to Understand Your Employees?
• 87% of organizations do NOT have a goal for non-retirement attrition.
• Those who do, target an average of 6%. Survey respondents reported an actual rate of 11%.
• 33% of companies measure employee satisfaction.
• According to a recent Employee Satisfaction Survey:
– 62% of all employees are presently looking for new jobs.
– 33% of employees report that they are paid a fair market rate, 15% report being overpaid and 52% of employees say they are underpaid. 60% of “underpaid” workers are paid fairly for their job duties, but have inflated job titles.
– Employees most likely to leave have 3 to 10 years of tenure.
– Most HR professionals do not have an accurate understanding of why people leave their job.
9
Your Employees are Browsing Other Jobs
Employees are browsing on-line listings at twice the rate that employers think and are 1.5 times more likely to have gone on interviews.
10
34% of Attrition is Attributed to Employees Moving within the Industry
Over the past two years, what were the reasons given for voluntary attrition?
0% 5% 10% 15% 20% 25% 30% 35% 40%
Other
Left to pursue higher education or another career
Dissatisfaction with management, co-workers, orworking conditions
Retirement
Personal reasons
Left for a similar position in another industry
Left for a similar position within the industry
11
Why Employees Leave
Most employees say they could be convinced to stay in their current job for another year for as little as 10-15% extra pay annually.
12
Skills vs. Attrition
If no action is taken in 5 years, 63% of tasks will be at risk for being performed without a skilled worker available
Skills at RiskTasks Performed without Trained Employees
46%
53%
63%
15%
21%26%
32%
34%28%
16%
12%
7%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Current 1 Year 2 Years 3 Years 4 Years 5 Years
Skills At Risk Retirements
13
Effect of Capability and Costs
Affect of Capability on Costs
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
40% 45% 50% 55% 60% 65% 70% 75% 80% 85%
Average Workforce Capability
Err
or
Ra
te
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Co
st d
ue
to E
rro
rs a
nd
L
ow
er P
rod
uct
ivit
y
Cost of Uncertainty Error Rate
• Employee average skill levels have a direct affect on costs.
• As skill levels increases, the decrease in error rates can be directly translated into decreases in costs for error correction and increases in productivity rates.
• This 200 person case has a cost reduction of $244K per every 5% increase in capability.
• A model with $10K/hr downtime costs has a total value per 5% capability of $576K.
14
Attrition Impact
Skill Level Without Attrition
20%17%
13%10%7%
3%
0%
20%
40%
60%
80%
2006 2007 2008 2009 2010 2011
Base Skill Level Historical Learning Rate
Skill Level with Attrition
31%25%19%13%8%3%
0%
20%
40%
60%
80%
2006 2007 2008 2009 2010 2011
Retirement attrition Skill level with attrition
Attrition skill loss
Without organizational change, development cannot keep up with skill loss
15
Best Practice:Addressing the Workforce Supply Chain
Strategic Measurement System
Retention
Process Optimization
Recruitment
Knowledge Management
Development
16
Consider the Cost/Benefit of Implementing a Comprehensive System
• Inefficient production, errors and failures are caused by some combination of:
– partially skilled employees,
– missing standards and documentation,
– ineffective processes, and
– unreliable equipment.
• Productivity losses due to attrition for departing and replacement employees
A typical company may spend over a quarter of total salary costs on inefficiencies caused by:
Sample Salary Cost Breakdown for Pipeline Company
Effective productivity
26%
Supplemental training
1%Absence
8%
Non-value added36%
Productivity loss due to
attrition5%
Human errors or equipment
failures7%
Inefficient pace of production
16%
Acting as a trainer
1%
17
What is Succession Planning?
• A set of methods used to ensure that there are highly qualified people today, next year, and five years from now
• A process used to develop bench strength, preserve organizational and specialized knowledge, and ensure business continuity
• In the past, succession planning typically targeted only key leadership positions. Today, it includes all job categories.
18
Succession Planning Entails
• Identifying the competencies or skills that the organization will need in the next 5 to 10 years — both technical and leadership skills
• Identifying key positions for organizational success
• Developing a systematic approach for identifying employees who are potential candidates
• Creating development plans for each candidate, including any training and educational requirements
• Reviewing and tracking the plan continuously
19
Succession Planning Elements
Succession Planning
Organization Structure & Functional Analysis
Job Profiles
Knowledge Management
Strategic Plans & Long Term Goals
Competency Models
Performance Appraisal & Planning System
Successor Identification, Ongoing Evaluation & Tracking
Career Development
Capability Analysis
Attrition Forecast & Impact Analysis
Minimum Hiring Requirements
Migrating Knowledge Into Performance
4 Hutton Centre Drive • Suite 1050 • Santa Ana • California • 92707• 714.540.8889 phone • 714.540.6113 fax • www.Interliance-knowledge.com 2004 Interliance, LLC Proprietary and Confidential
Succession Planning Case Study
21
Organization Strengths
• Organization commitment and focus on customer (community)
• Workforce experience and employee loyalty
• Management team (respect and good rapport)
• Expertise (technical) at Director and Supervisor levels
• Open communication regarding market and business environment and implications for all stakeholders
• Proven ability to focus organization on shared objective (e.g., reliability) and then to achieve and measure results
• Experience using a structured process to support decision making (e.g., capital project evaluation and selection)
• Information systems and infrastructure to support operations, finance and customer service
22
Management Challenges
• Situation
– Retirement eligibility of incumbent in Directors and Supervisors
– Attrition in workforce positions (e.g., lineman, customer service representative)
– Cost of living in is a strong influence on incumbents to leave and a barrier to attracting qualified staff from outside the area
– Limited flexibility to identify and train high potential individuals (from bargaining unit) for future supervisory roles
23
Management Challenges
• Solutions
– Strengthen management capabilities to plan for and to address workforce issues (attrition, rapid training and development)
– Capture knowledge of experienced workforce before attrition or retirement and transfer that knowledge to new personnel
– Implement a structured succession planning process to improve organization readiness and to guide management development
– Assess workforce certainty versus position requirements (job profiles, technical skills, leadership competencies, etc.) to prioritize training and development needs
24
Findings and Conclusions
• Current organization structure (8 director positions) limits opportunities for progression and management development of key personnel
• Retirement of T&D director is an opportunity to address the organization in an integrated way rather than “replace, combine, or eliminate”
• Lack of formal succession planning increases risks from unplanned and sudden attrition in key positions
• Retirement and attrition risk are compounded by lack of processes to capture technical and organizational knowledge
25
Findings and Conclusions
• Perception of duplication of effort in some “support” positions results from roles and responsibilities not clearly understood (defined)
• Management team is more focused on tactical issues versus strategic plans for their respective area(s) of responsibility
• Management’s success in meeting the organization’s business objectives is not clearly measured or tracked.
– Each Director manages his/her area based on their metrics rather than an integrated view driven by metrics linked to strategic objectives.
• Accountability for some key functions, e.g., service (product) development should be more clearly defined and communicated
26
Organization Analysis
Findings
• Bench strength below General Manager position quickly narrows; Assistant GM position recently established to address issue
• Relatively equal Director positions limit progression opportunities to develop functional management and leadership skills
• Narrow spans of control at Director level risk “overloading” direct reports with initiatives and projects not linked to business objectives
• Narrow spans of control at Supervisor level are driven by the need to provide planning and people management for bargaining unit positions
• Task content of both Supervisor and Team Leader positions limits time available to lead/manage/coach direct reports
• Supervisor positions are “first step” out of the bargaining unit and require cross-functional training and management development
27
Best Practices Cite Spans of Control Increasing at Lower Levels, but …
Level 1
Direct Reports
Span of Control “Pyramid”
Level 2
Level 3
Level 4
Level 5
28
10
4
4
1
0.3
0
AverageSpan of Control
Position Title
CEO - Level 1
Supervisor - Level 3
Leader - Level 4
Director - Level 2
Apprentice - Level 6
Technician, Operator,Customer Rep - Level 5
ActualSpan of Control
… Existing Structure Reflects Relatively Narrow Spans of Control
29
High LowSpan of Control
Factor Descriptions
Similarity of Functions Performed by Direct Reports
IdenticalEssentially alike
SimilarInherently different
Fundamentally distinct
Geographic Location(s) of People Being Managed
All togetherAll in one building
Separate buildings; in one location
Separate locations; in one geographic area
Dispersed locations and geographic areas
Complexity of Functions Performed by Direct Reports
Simple and repetitive
RoutineSome complexity
Complex and varied
Highly complex and varied
Amount of Supervision Required
Minimum Limited Moderate Frequent Constant
Amount of Coordination Required
Minimum interfaces with others
Limited interfaces
Moderate interfaces
Large number of interfaces
Extensive interfaces
Amount of Planning Required
Minimum Limited Moderate Considerable Extensive
Span of Control Analysis
30
Review of functional responsibilities
Findings
• Core functions are covered and responsibilities defined; but in support and growth areas responsibilities are not clearly defined
• Responsibility for “expansion of infrastructure” and “design new services” appears to reside with only the GM position
• The “power supply” function seems to have divided responsibilities across the organization
– In the management of the contract the system control group, reporting to engineering, seems to have day-to-day responsibility but could not determine who monitors the contract to ensure compliance on both sides, how the contract for generation assets is managed, etc.
31
Review of functional responsibilities
Findings
• “Regulatory compliance” function responsibilities were not clearly defined; does not seem to be a coordinated organizational effort
• “Risk management” appears to be a secondary function (assigned to HR) and several interviewees were handling parts of the function
• Could not identify a clear area where the organization is coordinating “infrastructure planning” function; consensus seems to be that the system has grown as big as it can and sales will level off
32
Measurement Model
Findings
• Organization does not clearly identify how each group (department) supports and drives achievement of business objectives
• Measures, in general, were viewed as a burden on the organization as opposed to a tool to better manage toward business objectives
• A set of financial and operational measures (including APPA benchmarks) is tracked; however its current use as a management tool was not apparent
• Measurement appears driven by each Director for his/her functional area rather than a core set of business measures deployed across the organization
• Concerns about the number and value of functional measures could be alleviated by use of an integrated set of measures linked to business objectives
33
July Aug. Sept. Oct. Nov.
Job Profiles and Competencies
• Develop Competency Models (Managerial, Technical, and Interpersonal)
• Develop Assistant General Manager, Director and Supervisor General Profiles
Organization Alignment
• Alignment with Value Proposition (Mission) and Capabilities
• Identify 2 or 3 options (functional groupings) and +/- for each
• Validate with stakeholders and evaluate trade-offs
• Develop roles and responsibilities for new organization
• Develop implementation plan and implement (may be phased)
Succession Planning
• Utilizing organization roles and responsibilities and job profiles, identify needs (skills, competencies, etc.) for each position
• Identify potential candidates for near-, mid-, and long-term
• Develop individual succession and development plans
• Identify competency gaps and develop closure plans
Strategic Measurement
• Develop measures linked to objectives and deploy to functions
• Develop management logic diagrams for key measures
• Develop agenda/format for monthly meeting
• Conduct training for Directors and direct reports
• Rationalize/prioritize initiatives and programs
Maintain Technical and Organization Knowledge
• Set policy and procedure architecture and prioritize development
• Use process mapping to document key processes and functions
• Develop job standards for bargaining unit positions
• Conduct workforce certainty analysis
Path Forward
34
Existing Issues of Workforce Capability
Typical results of the workforce certainty analysis
The inefficiencies resulting from partially skilled employees affect the bottom line, even before any attrition impact
35
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52
Boiler Ash and Economize Ash System
Limestone Transfer System
Ball Mill System
FGD Sump System
Vacuum Filter Dewatering System
Thickener and Thickener Underflow System
Ash Handling Systems
Slurry Feed Limestone Storage Tank System
Flush Water System
Emergency Diesel Fire Pump
FGD Recirculating Water System
Circulating Water System
Main Turbine Steam System Turbine Turning Gear System
Thickener Overflow Water System
Service Water System
Sootblowing System
Auxiliary Steam System
Number of Respondents (of 52 with Demographic Data)
11 years or more 6 to 10 years 3 to 5 years Less than 1 year
Depth of Knowledge Highest Areas of Capability
36
0 1 2 3 4 5 6 7 8 9 10 11 12
Plant Cooling Water SystemBoiler Fuel Feed System
Boiler Water Steam SystemMain Turbine Oil System
Electrical SystemExtraction Steam Hi/Lo Pressure Feedwater Heater
Hydrogen Seal Oil SystemCondensate System
Main Turbine Steam SystemBoiler Water Chemical Feed and Water Sample
FGD Control SystemPower Distribution System (138k-V and 14k-v)
Power Distribution System (345-kV)Feedwater System
Main Turbine Control SystemMakeup RO and demineralizer
Generator and Generator Excitation systemUPS and DC Electrical System
Combustion Air and Flue Gas SystemCondensate Polishing System
Control SystemCombustion Control System
Number of Responses
11 years or more 6 to 10 years 3 to 5 years Less than 1 year
Depth of Knowledge Lowest Areas of Capability
37
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52
Boiler Ash and Economize Ash System
Limestone Transfer System
Ball Mill System
FGD Sump System
Vacuum Filter Dewatering System
Thickener and Thickener Underflow System
Ash Handling Systems
Slurry Feed Limestone Storage Tank System
Flush Water System
Emergency Diesel Fire Pump
FGD Recirculating Water System
Circulating Water System
Main Turbine Steam System Turbine Turning Gear System
Thickener Overflow Water System
Service Water System
Sootblowing System
Auxiliary Steam System
Number of Respondents (of 52 with Demographic Data)
11 years or more 6 to 10 years 3 to 5 years Less than 1 year
Depth of Knowledge Highest Areas of Capability
38
Data Analysis
yesDo problems occur frequently with this task?
How large is the attrition risk?
How high is the average certainty?
no
low
medium or high
low
medium or high
Process Reengineering
Analysis
TrainingAnalysis and
Implementation
Continue Current
Processes
39
Knowledge Capture Priorities
• Knowledge capture priorities are based on:
– Level of present standards
– Attrition risk
– Problem occurrence
– Business importance
– Task frequency
Priorities for Standardization
0
2
4
6
8
10
12
Co
ntr
ol
Sy
ste
m
Co
al
Ha
nd
ling
Sy
ste
m
Ele
ctr
ica
lS
ys
tem
De
min
era
lize
r
Ste
am
an
dW
ate
rS
oo
tblo
win
g
Bo
iler
Wa
ter
Ch
em
ica
lF
ee
d/S
am
ple
Co
mb
us
tio
nC
on
tro
l
Pri
ori
ty
0%
20%
40%
60%
80%
100%
Le
ve
l of
Sta
nd
ard
iza
tio
n
Priority Level of Written Standardization
40
Process Improvement Priorities
• Process improvement priorities are based on:
– Medium or high level of present standards
– High certainty
– High problem occurrence
Priorities for Process Improvement
0
1
2
3
4
5
6
Bo
tto
m A
sh
an
d P
yri
teS
ys
tem
SD
AS
cru
bb
er
Mo
du
le
As
h R
ec
yc
leS
ys
tem
Ba
ll M
illS
ys
tem
SD
A C
on
tro
lS
ys
tem
Fo
xB
urr
o
Lim
e S
lurr
yF
ee
d S
tora
ge
Sy
ste
m
Ba
g H
ou
se
Pri
ori
ty
0%
20%
40%
60%
80%
100%
Pro
ble
m F
req
ue
nc
y
Priority Problem Frequency
41
Skill Development Priorities
• Skill development priorities are based on:
– Low skill levels
– Forecasted attrition losses
– Operational needs
– Business importance
Plant Operator Training Priorities
0
2
4
6
8
10
De
min
era
lize
r
Ele
ctr
ica
l Sy
ste
m
Co
al H
an
dlin
g S
ys
tem
Ma
in T
urb
ine
Ste
am
Sy
ste
m
Co
mb
us
tio
n C
on
tro
l Sy
ste
m
Ste
am
Sy
ste
m
Co
mb
us
tio
n A
ir a
nd
Flu
e G
as
Sy
ste
m
Bo
iler
Fu
el F
ee
d S
ys
tem
Bo
iler
Wa
ter
Ch
em
ica
lF
ee
d/W
ate
r S
am
ple
Sy
ste
m
Pri
ori
ty f
or
Tra
inin
g
0%
20%
40%
60%
80%
100%
Fu
ll C
ert
ain
ty
Priority Process Certainty
42
Key Steps
• Determine Succession Planning Objectives
– Organization goals and strategy
– Organization structure assessment, including future open positions
– Attrition forecast
– Workforce analysis and bench strength assessment; prioritization of skill gaps and key positions
• Establish succession planning targets, key knowledge transfer methods, and infrastructure (process, systems, tools, R & R)
• Identify successors
• Identify development objectives/plan
– Career development program
– Mentoring
– Job shadowing
– Training and development plan
• Monitor progress of succession planning process & successors; evaluate and revise
43
How Do You Identify Successors?
• Identify positions requiring a successor.
• Assess candidates against required core competencies for the position requiring a successor.
• Manager selects successor(s).
• Managers meet with employees to discuss succession plans (where applicable) and create career and performance development plans.
44
Job Profile
• The job profile is a performance management tool that describes clearly the:– Job purpose and accountabilities
– Scope of work
– Expected results and performance measures
– Reporting mechanisms
• The job profile is used:
– To communicate what it takes to do the job
– To identify what is expected and how it will be measured
– To provide a living document for self-managing performance and results using measures and standards
– To provide a means for identifying the competencies required to do a job
45
Competency Model
• The competency model identifies the skills, capabilities, expertise/talent, and character traits that are key to successful performance.
• There are three major classifications of competencies:
– Technical/Job Specific: Identifies the position-specific competencies required to be successful in a job
– Team: Inclusive of all individuals, irrespective of level or status, establishes the required individual characteristics to fit within the organizational culture
– Leadership: For each management level, defines the vision, standards, and quality of leadership to succeed within the organization as a leader and manager
46
Successor Identification
Name ReadinessCurrent
Performance/Effectiveness
Long-term Potential Overall Path Action Plant
John Smith 2 3 2 Manager
Increased delegated assignments and training program in team competencies
Pat Jones 2 3 3 ManagerIncreased delegated assignments and coaching
Bobbie Wong 2 2 1 Manager Performance development plan
Readiness: Use 1 to 3 scale.
• A “3” indicates mastery of own assignment plus key competencies required for next position.
• A “2” indicates ability to move within the next 6 to 12 months.
• A “1” indicates candidate is still building skill/competency within own job.
Current Performance/Effectiveness: Use 1 to 3 scale.
• A “3” indicates exceptional results and performance in current role.
• A “2” indicates strong results/competencies in current role.
• A “1” indicates acceptable to low performance/competencies in current role
Long-term Potential: Use 1 to 3 scale.
• A “3” indicates an exceptional demonstration of leadership/team competencies beyond what is currently required in his/her job.
• A “2” indicates consistent demonstration of leadership/team competencies beyond what is currently required in his/her job.
• A “1” indicates leadership/team competencies at or below current job requirements.
Overall:
• Green indicates an overall score of 8 to 9.
• Yellow indicates an overall score of 6 to 7.
• Red indicates an overall score of 3 to 5.
47
Bench Strength
Position Incumbent
Successors
1 2 3
Manager, A Time Ford Pat Jones Kathy Garcia John Smith
Manager, B Jack Wong Margie Rich Frank Fryberger Brad Ta
Manager, C Nancy Schultz Peggy Parsky Martin Levin Steve Ballinger
Manager, D Tracy Greene John Deene Rick Bower Mark Freeze
Director George Somebody Nancy Schultz Tim Ford Jack Wong
VP Terry Anybody Michael Allen Bob Sterling Wendy Ahn
Migrating Knowledge Into Performance
4 Hutton Centre Drive • Suite 1050 • Santa Ana • California • 92707• 714.540.8889 phone • 714.540.6113 fax • www.Interliance-knowledge.com
What Key Steps Can You Take?
49
Increase Organizational Profile
• Be recognized as an organization where people want to work.
– Create a communications strategy to promotes the importance and value of public power to the community
– Tout any recognition that your utility receives from the community or other organizations.
– Highlight your employees’ contributions to the community through charitable work and volunteer activities. If your utility has an outstanding safety record or a line crew that does well at the Lineworkers Rodeo, let it be known in the local media.
– In addition to reaching a diverse population of potential employees, this message should be communicated to customers, policymakers, and students in high schools, technical schools, and two- and four-year colleges.
• Students need to know there are high paying, interesting jobs.”
50
Expand Recruitment
• Scholarships
• Career counselors at high schools
• Outreach to minority, military, and displaced workers
• Internships
• Others?
51
Review the Benefits Package
• The utilities have to put together more competitive pay packages to retain their talent and recruit. They have a lot of competition because workers can go to other firms. The situation is only going to get more attractive for the average worker in the industry.
• Utilities should be prepared to offer the following benefits:
– Flexible work schedules
– Four-day, ten-hour work weeks
– Educational opportunities
– Career planning and development
– Stock grants and profit sharing
– Achievable bonus structures
– Retirement and pension programs
– Cost-of-living adjustments
– Relocation assistance, including spousal employment assistance programs
52
3. Create a Diversified Recruitment Approach
2005
What are your most effective recruitment strategies?
53
Most Successful Recruiting Methods
How successful has your company been using each of the following methods used for recruiting?
0 5 10 15
Internet banner ads
High school outreach programs
Scholarship programs
Event sponsorship
Outside of your local geographic area
Trade publications
External recruiting companies
Local print advertising
Job fairs
Employment agencies
Internet job position postings
Posting on company website
Signing bonuses/relocation expenses
Very Successful Somewhat Successful Not Very Successful Do Not Use No Response
54
Create a Retention Program
• Exit interviews and trending
• Employee satisfaction surveys
• Promote employment past retirement age; longevity benefits
– FirstEnergy is seeking to retain the Baby Boomers in its operations workforce. According to Wilkins, “Let’s say we want to retain a maintenance crew worker with 30 years experience. We’ll offer him the day shift permanently. That means no more shift rotation. We might also eliminate that person from the draft – the roster of people who can be called in during an emergency situation,” he added.
• Career development program
• Succession planning
55
Think Out of the Box
• Retraining programs for displaced workers
• Part-time/flex time work
• Pay for performance
• Accelerated workforce development program
• Create technical leadership positions
56
Checklist for Action
• Clearly identify the organization vision
• Identify your measures of success
• Evaluate organizational impact and capability
• Assess present workforce capability in relationship to your business needs
• Develop roadmap of implementation for short and long term plans
• Develop and implement a communication strategy
• Implement prioritized plans
– Recruitment
– Career Development/Skill Development
– Performance Evaluation
– Knowledge Management
– Process Improvement
– Succession Planning
57
Interliance ClientsEnergy, Utilities and Process Industries
Migrating Knowledge Into Performance
4 Hutton Centre Drive • Suite 1050 • Santa Ana • California • 92707• 714.540.8889 phone • 714.540.6113 fax • www.Interliance-knowledge.com
Contact Information:
Interliance Consulting, Inc.4 Hutton Centre Drive, Suite 1050
Santa Ana, CA 92707(714) 540-8889 Office(714) 540-6113 Fax
