1 / 10

AEP Workforce Planning and Process

AEP Workforce Planning and Process. August 26, 2008. CEWD Midwest Region Meeting. The AEP Workforce Today. The AEP workforce is aging The average age of an AEP worker is 47 24% of AEP workers are currently eligible for retirement. AEP enjoys a stable workforce

foy
Download Presentation

AEP Workforce Planning and Process

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. AEP Workforce Planning and Process August 26, 2008 CEWD Midwest Region Meeting

  2. The AEP Workforce Today The AEP workforce is aging • The average age of an AEP worker is 47 • 24% of AEP workers are currently eligible for retirement AEP enjoys a stable workforce • The average AEP employee has 17.7 years of service

  3. Workforce Planning: Why? Business Drivers • Higher-than-normal turnover due to aging workforce • Attrition will outpace employees ready to step into next level of job family • A decade of cost-cutting has reduced overall skilled complement and on-the-job training opportunities • Historical approach to training may require four – five years for new hires to attain required skill level • Aging workforce is a national issue • Demographically, there are fewer workers available to replace aging baby boomers • Projected retirements require greater advance planning • Need to anticipate and address changing skill sets • Continued opportunity to increase diversity of workforce

  4. Workforce Planning Process Analysis • Needed data is determined & gathered • Data is analyzed and factors are identified that might impact the workforce • Determination of the workforce needed to achieve AEP’s Business Goals and Strategies Analysis Plan Creation / Revision • Strategies are selected to address the specific workforce challenges of that business unit. • A plan to achieve the future workforce is defined based on the strategies selected. • A Talent Management Review meeting is held with the leadership of the Business Unit to review and approve the plan moving forward. Analysis Plan Creation /Revision Execution • The Strategies selected and approved are implemented. • Individuals are assigned and carry out various actions to achieve the plan. • Business leadership reviews and monitors progress of plan execution.

  5. Defining the Need Applied predictive modeling to 2008 workforce to quantify expected retirements • Employee age plus years of service is a strong predictor of potential retirements • AEP history shows that employees with age and years of service totaling 90 or more will retire within five years • Over a historic 5 year period, 8.3% of the workforce retires • Positions that have more than 8.3% of the workforce with ages and years of service totaling 90 or more will experience greater than normal retirement rates • Other Turnover • Terminations for reasons other than retirements average 8.8% every 5 years • Turnover for a normal 5 year period is about 17%

  6. Defining the Need, continued • Generally, AEP positions will experience turnover of 18.9% over next five years • Projected turnover 2008– 2012 only 1.8% greater than historical average • However, some locations and job families will experience turnover significantly greater than 20%

  7. FROM 2008-2012, AEP IS PROJECTED TO LOSE 18.9% OF ITS EMPLOYEE POPULATION TO RETIREMENT AND OTHER TURNOVER • Versus a 17.1% historical norm for 5-year turnover

  8. THERE HAS BEENSIGNIFICANT PROGRESS WITH REPLACING CRAFT TURNOVER

  9. FRONT LINE LEADER TURNOVER IS ESPECIALLY CONCERNING 2008 Projected 5-year turnover among Supervisors

  10. Attract Retain Talent Workforce Planning Strategies

More Related