Merit & Workforce Planning

1. Merit & Workforce Planning Donna Terrazas PTC/SC – May 2005

2. What is Merit? • Equal opportunity in selection and promotion • Open competitive process • Objective, job-related decisions based on assessment of qualifications • Absence of favoritism

3. What is Workforce Planning? Analysis of future organizational needs and development of action plans to address needs Options: • Retain current workforce • Eliminate the work • Do the work differently • Fill through external recruiting • Fill by developing employees

4. The Inherent Conflict • Workforce Planning often viewed as “anointing the heir” or favoritism • Only “special” folks get “special” assignments • No definition of “special” exists • No formal competition for “special” exists • The “heir apparent” is typically unchallenged

5. Tools to Manage Pre-Selection • Objective needs analysis • Assessment of alternatives • Focus on competencies • Systematic approach • Communication

6. Workforce Planning at EBMUD • Identified REAL staffing needs and options early • Built a plan to address greatest needs first • Partnered with top management • Accepted that multiple solutions would be needed • Learned that workforce initiatives take TIME!

7. We Started Early • 2000 – Presentations to management and the board • 2001 – Initial planning for the LEAD Academy began • 2003 – First LEAD Academy held • 2003 – Initial planning for Pathways began • 2004 – Early Design for Management • 2005 – First Pathways begins

8. EBMUD Staffing Needs • Older workforce than most other utilities • History of internal promotions in many operations and maintenance areas • New hires often older than the average • Jobs typically highly technical • Retirement plan enhanced in 2003

9. EBMUD Resources • Many well established training programs in place • Selection and promotion based on merit through an open competitive process • Top management aware of aging workforce issues and willing to support workforce planning efforts

10. Our Strategy • Focus on employment categories rather than specific positions • Forecast/predict potential retirements by category based on eligibility over 5 years • Factor in regular turnover and “domino effects” • Identify categories where the greatest impacts are likely to occur soonest

11. EBMUD Demographics in 2003 • 2000 employees; average age 47 • Workforce 68% boomers (nationally 44%) • 70% managers/supervisors in Lab and ISD retiring within 2 years • 65% of first line field supervisors retirement eligible within 5 years • 60% of superintendent level retirement eligible within 5 years

12. Issues • Too little time to develop staff for lab and ISD leadership • Some District functions could be out-sourced or restructured but not field operations • Retention highly variable by occupation • O&M department willing to partner with HR on substantial WFP development programs

13. The First Target - Supervisors • Matriculating from entry level through journey in the field takes about 5 years • 98% of all first line supervisors have been promoted from within • Combining all foremen job classes, there are over 50 target positions and 250+ in the “feeder pool” • Development needs cross department lines

14. Issues & Conflicts • Many lower level employees lack fundamental skills: • Math & writing • Leadership • Cash incentive to promote is small • Union resistance and distrust • Department seeking to create a higher performance standard

15. Program Elements • Creating the “Success profile” • Defining what we will train and what we won’t • Establishing qualifications to participate • Determining how training will be delivered • Marketing • Open competitive process • No guarantees of promotion

16. Second Target – Superintendents • Middle level supervision • Higher level skills and 2 years college needed • Increased future job expectations • Technology • Environmental/municipal regulations • Tighter fiscal environment • Many foremen/supervisors in logical feeder pool also retiring

17. Issues • Variety of technical operational areas • Maintenance • Water and wastewater operations • Skilled trades • 75%+ positions historically filled by promotion • Eclectic feeder pool • Highly variable levels of readiness

18. Program Elements • Success profile that crosses technical disciplines • Cross departmental involvement • Competitive process to participate • Application • Pre-test • Panel interview • File review • Individualized training

19. Assessing for Training Needs • Math, English, Reading Comprehension • Critical analysis writing project • Cognitive skills tests • Leadership survey • 360 evaluation • In-basket situational judgment test • B-Pad • Readiness interview

20. Why It Works • Training sold as a privilege – not a requirement • Standards to both compete and participate in these “special” training programs are clearly stated • There are REAL promotional opportunities waiting • All impacted managers are involved

21. To Date: • All LEAD and Pathways participants selected through a competitive process • 2 LEAD Academies completed – a third is planned • Pathways began in January 2005 and participants are completing their ICDPs • Holding vacancies for both Lead and Pathways target positions

22. On the Horizon • Design & implementation of OJT components for LEAD graduates • Still learning the best ways to use assessment information for development • Management Development program design completed with kickoff in January 2006

23. What we’ve learned… • WFP is a major undertaking! • High staff demands • Substantial time investment • Comprehensive workforce analysis is the essential first step • Program design and development must involve cross functional top managers • Everything takes longer than you think it will

24. And… • When you raise expectations – you must be able to deliver • Hold trainees accountable for their own learning and promotion • Attendance, homework, ICDP contracts, etc. • Management buy-in and support is critical • Won’t stop appointment of “heir apparents” • People will surprise you!

25. WFP In Summary • Identify current & future staffing needs • Develop “success profiles” • Assess qualifications of current staff • Identify and analyze “skills gaps” • Develop strategies to address the gaps • Create competition for opportunities to develop

26. And… • Start early! • Repeat the WFP message in many forums • Roll up trend data to illustrate the issues • Change the focus from pre-selecting a person to developing a strong pool • Involve others in developing solutions • Communicate consistently

27. Thanks!