Preparing For The Future; Workforce And Succession Planning

Willow Jacobson School of Government, UNC-CH

NCLGIA Summer Conference

Percentage of people close to retirement within 10 years (62)

Percentage of people close to retirement within 10 years (based 62)

Finance Department within 10 Years

Human Resources within 10 Years

The US Population Today

Growth Rate in US Workforce by Age 2010-2020

16-19 20-24 25-34 35-44 45-54 55-64 65-74 75+2010-2020 -2.7 -0.8 -0.2 -0.1 0 0.6 2.6 3.1

-3

-2

-1

0

1

2

3

4

Age Distribution of Workers

74.2 76.1 61.1 65.8 63.9

25.8 23.9 38.9 34.2 36.1

Total Private sector FederalGovernment

State Government Local Government

Knowledge Workers By Age Group and Sector, 2006

46% 31%

40% 39%

54% 69%

60% 61%

Private sector Federal Government State Government Local Government

Projected Retiree Trend: 2003 – 2022 State and Local Systems

159,204 166,456

174,155 183,103

192,307 201,453

210,320 218,732

226,425 233,483

241,097 249,935

260,107

271,761

285,085

300,239

317,403

336,831

358,732

383,368

150000

175000

200000

225000

250000

275000

300000

325000

350000

375000

400000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Year

Pro

ject

ed R

etire

e G

row

th

Projected Retiree Trend for 2003 - 2022

141% Projected Increase in the Number of Retirees in NC Retirement System

between 2003 and 2022

Are You Ready?

Strategic Planning • Organization

Mission Resources

Workforce Planning • Data

Profiles Projections

Human Capital Investment • Reskilling

Redeploying Recruiting Retraining

Why workforce and succession planning? – Changing demographic – Increasing organizational responsibilities – Increasing complexity of governance – Shrinking resources for planning and

development

Reasons for Workforce Planning

Reasons for Workforce Planning

• Contribute to implementing the organization's strategic business plans

• Identify “replacement needs” and increase talent pool • Increased opportunities for “high-potential” workers

and help individual realize their career plans • Improve employees’ ability to respond to changing

environmental demands • To improve employee morale • Cope with effects of changing workforce

Steps 1.Review

2. Identify

3. Analyze

4. Develop and implement

5. Evaluate

Review

Review Your Workforce

Review Your Workforce

• Demographics • Employee Profile

– Age and years of service – Competencies and skills – Knowledge

• Workforce Breakdown

Identify Who is Leaving

Impact and Vacancy Risk Map

High Org Impact/Low Vacancy Risk

*Yellow

High Org Impact/ High Vacancy Risk

*Red

Low Org Impact/Low Vacancy Risk

*Green

Low Org Impact/High Vacancy Risk

*Yellow

Low Vacancy Risk High

Low

Org

aniza

tiona

l Im

pact

Hi

gh

Identify Who is Leaving

• Which jobs in your organization are likely to experience retirements in the next five years?

• What is the impact on your organization?

Environmental Scanning

• Completing a thorough scan provides organizations with information to determine high workforce risk areas.

• Data sources for an environmental scan: – The organization's strategic plan. – External trends that may affect the work of the

organization and the workforce. – Internal workforce factors. – The demand for maintaining and improving the

workforce

Environmental Scanning

• Example Questions Regarding Organizational Strategy – What are the key strategies the organization is implementing? – What new initiatives are underway? What skills are needed to

accomplish these initiatives? • Example Questions Regarding the External Environment

– How will the labor market impact the availability of talent needed? – Are there any state policies or legislative mandates that will impact

the organization? • Example Questions Regarding the Organization's Workforce

– Are there needs and opportunities for skill and talent development? – Are there skill needs beyond what is found at the organization? – Is there high potential staff willing to move into leadership positions? – How is knowledge captured and transferred within the organization?

Identify

Looking Ahead

Plan for the Future

• Understand the competencies and skills you will need to manage your organization and provide service to your citizens

• Individuals • Departments • Organization wide

1. What changes will impact how you work and the services you provide in the next 5-10 years?

2. Consider the following factors: • Environmental • Political • Technical • Changes to the laws

What human resources will you need?

• Identify critical positions • Consider talent (knowledge, skills, expertise)

needed • Think organization-wide • Consider the market

Questions?

Analyze

Analyze Skill Gaps

Workforce Requirements (Demand) • Number • Competencies • Grades • Locations

Workforce Supply • Number • Competencies • Grades • Locations

The Human Resource Gap

Considerations

1. Are these hard-to-fill positions?

2. What will you have to pay?

3. Will others leave at the same time

Develop and Implement

Develop HR Strategies

1. Create individual development plans 2. Clarify roles 3. Review department plans with the

management team 4. Address your organization’s position on

specific skill groups

Reinvention/Retooling

• Are there alternative ways to get the work done – other than hiring new workers …

• OR • … should the job be done at all?

Recruitment

• How effective are your current practices? • What changes will you have to make to recruit

the talent you need? • What can you do in the short-term? • Long-term?

Factors to Consider

• Recruiting the next generation requires: – Technology – Flexibility – Marketing – Compensation – Rethinking retention

Leadership Training

INDIVIDUAL LEARNING PLAN FOR LEADERSHIP POSITIONS SAMPLE STEPS THREE AND FOUR

Directions: Use this Individual Learning Plan to help develop the skills for higher-level leadership positions. Work with your manager to reach agreement on objectives and strategies.

Employee’s Name Job Title

Department Years in Position

Manager’s Name

Job Title

Department

Years in Position

Today’s Date

Plan Covering Date

to

Below list the competencies, activities, responsibilities, duties, tasks, or essential job functions of a higher-level leadership position in which you have developmental needs and to which you aspire.

Learn protocol and intricacies of Board of Supervisors meetings;

Learn about budget preparation and justification at the department level; and

Facilitation skills and making effective presentations.

INDIVIDUAL LEARNING PLAN FOR LEADERSHIP POSITIONS SAMPLE STEPS THREE AND FOUR

Directions:Use this Individual Learning Plan to help develop the skills for higher-level leadership positions. Work with your manager to reach agreement on objectives and strategies.

Employee’s NameJob Title

DepartmentYears in Position

Manager’s Name

Job Title

Department

Years in Position

Today’s Date

Plan Covering Date

to

Below list the competencies, activities, responsibilities, duties, tasks, or essential job functions of a higher-level leadership position in which you have developmental needs and to which you aspire.

Learn protocol and intricacies of Board of Supervisors meetings;

Learn about budget preparation and justification at the department level; and

Facilitation skills and making effective presentations.

Learning Objective

Methods and Strategies to meet the Objective

Resources Needed to Achieve Objective – Information, Money, Training, Equipment and/or Time

Deadline or Benchmark Dates

How will success of each learning objective be measured?

Verified? Yes ( ) No ( )

I want to learn more about interacting with elected officials and how decisions are made.

I will attend meetings with Department Head and BOS members including individual meetings, work sessions and BOS meetings. I will meet with the Department Head afterward to assess, evaluate and discuss the meetings.

Time to attend meetings. Time with Department Head for review and discussion.

4 months. Goal is to attend 4 individual meetings with BOS members.

Department Head will discuss content, answer questions and evaluate each meeting with me. I will conduct one individual meeting with a BOS member that the Department Head will observe.

I want to learn more about the budget process including preparation, presentation and justification.

I want to learn to conduct public meetings and make effective presentations.

I will work with an experienced Budget Analyst. I will attend budget training workshops I will take over public meeting facilitator role from Department Head. I will need to take a PowerPoint class.

Time to attend budget class Time to attend budget meetings • PowerPoint class • Time to take classes • Money for classes if not

offered by HR • Time to meet with

Department Head to do run-through of PowerPoint presentation

6 months to go through entire budget cycle including department preparation, budget review and BOS approval Three (3) months to complete classes. Six (6) months to complete objective.

I will meet with Department Head after budget cycle to discuss and evaluate. Next year, I will make department budget presentation at department staff meeting. Department Head will observe me conducting the meeting and will assess how well I prepared for the meeting by seeing how I handle questions from the audience, and by getting feedback from audience members.

Learning Objective

Methods and Strategies to meet the Objective

Resources Needed to Achieve Objective – Information, Money, Training, Equipment and/or Time

Deadline or Benchmark Dates

How will success of each learning objective be measured?

Verified? Yes ( ) No ( )

I want to learn more about interacting with elected officials and how decisions are made.

I will attend meetings with Department Head and BOS members including individual meetings, work sessions and BOS meetings. I will meet with the Department Head afterward to assess, evaluate and discuss the meetings.

Time to attend meetings.

Time with Department Head for review and discussion.

4 months. Goal is to attend 4 individual meetings with BOS members.

Department Head will discuss content, answer questions and evaluate each meeting with me.

I will conduct one individual meeting with a BOS member that the Department Head will observe.

I want to learn more about the budget process including

preparation, presentation and justification.

I want to learn to

conduct public meetings and make effective presentations.

I will work with an experienced Budget Analyst.

I will attend budget training workshops

I will take over public meeting facilitator role from Department Head. I will need to take a PowerPoint class.

Time to attend budget class

Time to attend budget meetings

•PowerPoint class

•Time to take classes

•Money for classes if not offered by HR

•Time to meet with

Department Head to do

run-through of PowerPoint presentation

6 months to go through entire budget

cycle including department

preparation,

budget review and BOS approval

Three (3) months to complete classes. Six (6) months to complete objective.

I will meet with Department Head after budget cycle to discuss and evaluate.

Next year, I will make department budget presentation at department staff meeting.

Department Head will observe me conducting the meeting and will assess how well I prepared for the meeting by seeing how I handle questions from the audience, and by getting feedback

from audience members.

Mentoring and Coaching

Retention

Assess your work environment

Retention

• How can we make our departments more attractive working environment?

• Current problems? • Likely future problems?

Next Generation/Older Generation

Knowledge Transfer

• Keeping the “know-how” … when you lose employees

Knowledge Interview

Types of Knowledge

• Explicit knowledge • Tacit knowledge

• What to transfer? • Institutional knowledge • Technical know how • Tips and habits • Internal and external relationships

Knowledge Transfer

• Work teams • Project partners • Job shadowing • Mentoring

Methods for Transferring

• Overlapping positions

• Desk manuals • Databases

Knowledge Transfer

External sources: 1. Similar organizations 2. Professional associations 3. Networking 4. List-servs

Knowledge Transfer: Avoiding Problems

• Educating council, and staff • Address generational concerns • Address strong personality issues • Bottom line responsibility • Clear message about expectations

Evaluate

Evaluate Your Strategies

• Review and revise: – Measures for success – Changing demographics – Changing organizational needs

Links to other HR processes

1. Selection and recruitment

2. Performance management

3. Training and development

4. Compensation

Common Problems Affecting Planning Programs

1. Lack of support 2. Organizational politics 3. Quick-fix attitudes 4. Low visibility 5. The rapid pace of organizational change 6. Too much paperwork 7. Too many meetings

Key Lessons

1. Not as hard as it seems 2. Every organization is likely to be affected,

regardless of size 3. Important responsibility of leaders and

managers 4. Opportunities for improvements

NC Local Government Major Challenges

• Buy-In – Support – Resources (time and money)

• Staffing needs • Training and Development challenges • Getting the right people involved • Process/infrastructure • Culture

NC Local Government Lessons Learned

• Buy-In • Culture • Process/tools/measurement • Competencies • Evaluation • Clear message and selection of participants

What You Can Do

• Ask critical questions • Lend support • Think long-term and demand that others do

the same • Lead the process to ensure current and future

success • Look to internal and external examples

Preparing For The Future; Workforce And Succession PlanningPercentage of people close to retirement within 10 years (62)Percentage of people close to retirement within 10 years (based 62)Finance Department within 10 YearsHuman Resources within 10 YearsThe US Population TodayGrowth Rate in US Workforce by Age 2010-2020Age Distribution of WorkersKnowledge Workers By Age Group and Sector, 2006Slide Number 10Are You Ready?Slide Number 12 Reasons for Workforce PlanningReasons for Workforce PlanningSteps�ReviewReview Your WorkforceReview Your WorkforceIdentify Who is LeavingSlide Number 21Identify Who is Leaving Slide Number 23Environmental Scanning Environmental ScanningIdentifySlide Number 27Plan for the FutureSlide Number 29What human resources will you need?Questions?AnalyzeAnalyze Skill GapsConsiderationsDevelop and ImplementSlide Number 36Reinvention/Retooling RecruitmentFactors to ConsiderLeadership TrainingSlide Number 41Slide Number 42Mentoring�and CoachingRetentionRetentionSlide Number 46Knowledge TransferKnowledge InterviewTypes of KnowledgeKnowledge TransferMethods for Transferring Knowledge TransferKnowledge Transfer:�Avoiding ProblemsEvaluateEvaluate Your StrategiesLinks to other HR processesCommon Problems Affecting Planning ProgramsSlide Number 58NC Local Government�Major ChallengesNC Local Government Lessons LearnedWhat You Can DoSlide Number 62Slide Number 63