Building and Maintaining a Strong Workforce in Tough Times 2009 APIPA Conference July 31, 2009 Bob Lavigna Why it Matters “It is not at all clear how government can be well executed unless it is able to compete more effectively for its fair share of talent.” “Government is always going to be able to fill vacancies. The important question is whether we can fill them with talented and committed people with the skills we need.” ”In the globalization system … One of the most important and enduring competitive advantages that a country can have today is a lean, efficient, honest civil service system.” Why it Matters “The challenge is to attract and retain people who are a cut above the competition. You need to provide benefits, good working conditions, and an environment that caters to their personal needs and business needs. That’s a tough balance.” “By the end of the day I felt I had made a terrible mistake … My agency lost its shine on my first day.” “Don’t give me excuses, just make the hiring process work!” “In the government, you get an order and you follow it. I realize that as a leader, I need to be more creative and innovative.” Why it Matters Grant Thornton 2008 survey – HC/HR #1 concern GT 2009 survey – right talent #1 factor in clean audit 2009 survey of corporate CFOs – most critical factors: • Strong leadership • Hiring best people Public Sector Workforce is Graying 50% 45% 40% 35% 30% Federal State 25% Local 20% Private 15% 10% 5% 0% Under 30 30-39 40-49 50+ More Complex Workforce: Multiple Generations Traditionalists (born before 1946) Boomers (born 1946-64) Gen Xers (1965-81) Millennials (>1982) More Complex Workforce: Changing Expectations Free agents Less loyalty -- “transactional” relationship “Knowledge Demand nomads” – mobile skill sets work/life balance Guam Division of Accounts Workforce: Today and Tomorrow Total employees in 2008 = 46 Guam Division of Accounts Workforce: Today and Tomorrow Total employees in 2008 = 46 Eligible to retire in 5 years = 16 Guam Division of Accounts Workforce: Today and Tomorrow Total employees in 2008 = 46 Eligible to retire in 5 years = 16 Eligible to retire in 5-10 years = 7 Island Workforces: Today and Tomorrow Employees New Hires Annual Turnover 5-Year Retirem’t. 10-Year Retirem’t. Guam 46 48% 11% 35% 50% Palau 125 20% 7% 16% 28% USVI 107 24% 8% 27% CMNI 125 33% 14% 8% 25% American Samoa 147 24% 5% 20% 35% FSM 77 31% 6% 10% 31% Yap 25 64% 18% 4% 12% 14 So … What’s It All Mean? Workforce undergoing dramatic shifts Tougher to attract and retain talent Public sector feeling these effects first Government must adapt to the talent market, not vice-versa How Does Government Meet These Workforce Challenges? Understand – and meet – expectations Develop multiple pipelines for talent Recruit aggressively Make the hiring process work Maximize engagement and satisfaction How Does Government Meet These Workforce Challenges? Make performance management work Build the talent/leadership pipeline Create more flexible, timely, user-friendly and responsive civil service systems Use workforce planning as the foundation What We’ll Cover A framework for attracting, developing and retaining talent Specific approaches 1. Recruiting/hiring and onboarding 2. Maximizing employee engagement 3. Building the leadership pipeline 4. Creating a strong partnership with HR What We Won’t Cover Secret Easy formulas, magic bullets answers Simple solutions One-size-fits-all Turning approaches you into an HR expert Research: Creating and Applying New Knowledge Recruiting on Campus Hiring Baby Boomers What Students Want Hiring Interns Building Employee Engagement Onboarding New Employees Finding Jobs Human Capital Framework Resources Recruit and Hire/ Onboard Engage Core Purpose/ Values Business Strategies Workforce Manage Performance Planning Train/Develop Reward/Recognize Environment Plan for Succession Mission Accomplished Workforce Planning There isn’t any silver bullet to attract, develop and retain talent It takes silver buckshot! Panel: What are your toughest people challenges? Building and Maintaining a Strong Workforce in Tough Times 1. Recruiting/Hiring and Onboarding Why it Matters “It is not at all clear how government can be well executed unless it is able to compete more effectively for its fair share of talent.” “The overall feel of the job vacancy announcement is negative and heavy handed … If the application is like this, what’s it like to work there and why would you want to?” “Government is always going to be able to fill vacancies. The important question is whether we can fill them with talented and committed people with the skills we need.” Human Capital Framework Resources Recruit and Hire/ Onboard Engage Core Purpose/ Values Business Strategies Workforce Manage Performance Planning Train/Develop Reward/Recognize Environment Plan for Succession Mission Accomplished Recruiting v. Hiring 1. Recruiting – Attracting an adequate number of interested and well-qualified candidates 2. Hiring – Deciding whom to hire (i.e., who to make the job offer to) Reactive v. Proactive Recruiting Proactive Reactive Use the job description Post an ad – newspaper, Web Create a new brochure Sit back and wait Where can I find the best people? How do I reach them? How do I convince them to apply? Accept? How can I best use our limited resources? Recruiting is everyone’s job! The Universum “IDEAL Employer” Survey Annual survey of undergraduate students 43,313 total respondents 195 colleges/universities 260 employers What Are the Top Attractors? Culture that respects my individuality Work/life balance Base salary High level of responsibility Good reputation Rapid promotion High ethical standards Exciting products and services Friendly work environment Creative, dynamic work environment Top 4 Career Goals 1. Work/life balance (66%) 2. Dedicated to a cause, feel that I am serving a greater good (46%) 3. Secure or stable in my job (46%) 4. Competitively or intellectually challenged (40%) Leaving Talent on the Table: Capitalizing on Intern Programs The numbers Private sector employers hire 50% of interns Jumps to 59% for co-ops 40% of all vacancies filled by interns Employers see internships as one of most effective tools to hire college grads Students see internships as avenue to full-time employment Recruiting Strategies: High Tech plus High Touch Understand what candidates want (and remember that pay is just one piece) Develop long-term strategy -- alliances and relationships • Plan • Avoid “drive-by recruiting” • Obtain and provide a point of contact Market and personalize public service “They’re a place where the best of the best work” “The recruiter was describing the exact kind of job I wanted. They personalized towards me.” Recruiting Strategies: High Tech plus High Touch Use “near peers” Use student employment as talent pipeline • Provide substantive work • Convert students to permanent employees Use technology – but smartly! Collect/use data – uniqueness,+/Recruiting is everyone’s job! What is Onboarding? Integrating and acculturating new employees into the organization and providing them with the tools, resources, and knowledge to become successful and productive From accepted offer to end of first year BOOZALLEN.COM OURPUBLICSERVICE.ORG Strategic Onboarding Model Panel: What are you doing to attract, hire and onboard talent? Building and Maintaining a Strong Workforce in Tough Times 2. Maximizing Employee Engagement Human Capital Framework Resources Recruit and Hire/ Onboard Engage Core Purpose/ Values Business Strategies Workforce Manage Performance Planning Train/Develop Reward/Recognize Environment Plan for Succession Mission Accomplished Why it Matters High employee engagement drives: Better program results Less sick leave, missed time due to workrelated injury or illness Better retention Higher customer satisfaction Engagement Drives Financial Success 30 Multinational Companies Financial performance consistently stronger in companies that emphasize: • Commitment • Job satisfaction But ... high levels of employee engagement require active leadership support Higher Engagement Higher Retention Total Percent Satisfied Employees planning to stay for > 2 yrs Employees planning to leave in < 2 yrs Gap Use of skills and abilities 83% 49% 34% Ability of top management 74% 41% 33% Company sense of direction 57% 27% 30% Advancement opportunities 50% 22% 28% Opportunity to learn new skills 66% 38% 28% Coaching and counseling from supervisor 54% 26% 28% Satisfaction with: High Engagement Better Customer Outcomes Work units with higher overall customer satisfaction scores also have employees with more favorable opinions 100 80 68 70 64 70 65 65 64 58 58 60 53 53 50 40 20 Leadership Immediate Supervision Job Satisfaction Ability to Get the Job Done High Customer Satisfaction Performance Management Pay, Benefits, and Career Action Planning Low Customer Satisfaction #BESTPLACESTOWORK.ORG What is Best Places to Work? Rating and ranking of 278 federal departments, agencies and subcomponents Based on data from government wide employee survey Overall satisfaction score Ten workplace dimensions Web site: bestplacestowork.org Workplace Dimensions Effective leadership Employee skills/mission match Strategic management Teamwork Performance-based awards Training and development Support for diversity Pay and benefits Family-friendly culture Work/life balance What Do These Dimensions Mean? Effective Leadership My immediate supervisor/team leader does a good job Supervisors support employee development Performance discussions are worthwhile I have a high level of respect for senior leaders Leaders generate high motivation and commitment What Do These Dimensions Mean? Effective Leadership (cont.) Leaders maintain high standards of honesty and integrity I have a feeling of personal empowerment and ownership of work processes Complaints, disputes or grievances are resolved fairly Satisfaction with involvement in decisions that affect work Satisfaction with the information received from management What Do These Dimensions Mean? Employee Skills/Mission Match My work gives me feeling of personal accomplishment I like the kind of work I do My talents are used well I know how my work relates to mission and goals I do important work What Do These Dimensions Mean? Work/Life Balance My supervisor supports my need to balance work and family issues I have sufficient resources (e.g., people, materials, budget, etc.) to get work done My workload is reasonable What Do These Dimensions Mean? Training and Development I am given a real opportunity to improve my skills in my organization I have enough information to do my job well My training needs are assessed I am satisfied with the training received for present job Panel: What are you doing to build employee engagement? Building and Maintaining a Strong Workforce in Tough Times 3. Building the Leadership Pipeline Why it Matters “In the government, you get an order and you follow it. I realize that as a leader, I need to be more creative and innovative.” “We need an opportunity to be inspired about our work and to believe that we can really make a difference.” Workplace Dimensions Employee Skills/Mission Match 78.8 Teamwork 71.2 Pay and Benefits 63.8 Work/Life Balance 62.1 Training/Development 61.5 Support for Diversity 60.5 Strategic Management 57.2 Effective Leadership Performance-Based Rewards and Advancement Family-Friendly Culture and Benefits 51.7 45.6 43.4 Human Capital Framework Resources Recruit and Hire/ Onboard Engage Core Purpose/ Values Business Strategies Workforce Manage Performance Planning Train/Develop Reward/Recognize Environment Plan for Succession Mission Accomplished Integrated Approach to Building the Leadership Pipeline Program Evaluation Why the Integrated Approach Many ways to build leadership pipeline Because all aligned with strategic plan, workforce plan, competency model, and/or other frameworks, aligned with each other Pipeline large -- demand for more talent Who’s in the Pipeline? High Potentials and Replacement Pool for Sr. Managers Middle Managers 1st-line Supervisors All Employees? Technical Specialists Time What Are Developmental Needs? Understanding other departments Understanding enterprise and its environment Building relationships and networks Getting things done in government Managing change Managing the public Managing the media Influencing, motivating, developing, retaining talent Managing conflict, dealing with problem employees Leadership Development Best Practices Private Public Other Accenture Army War College Brookings Institution Aon Corporation Defense Logistics Agency Georgetown University Federal Executive Institute Harvard Kennedy School of Government Government Accountability Office Louisiana State University Office of Management and Budget Senior Executives Association Office of Personnel Management Young Government Leaders The Boeing Company GE Goldman Sachs IBM IDEO Lockheed Martin McKinsey & Company Procter & Gamble Office of the Director of National Intelligence Leadership Development Best Practices Leadership development part of system (e.g., succession planning, competencies, performance management) Current leaders develop future leaders (not necessarily expensive) Leaders learn best by “doing” Executive coaching addresses unique, realtime needs Structure Coursework Defining Leadership & Managing People • Understanding your leadership style • Managing people • Building teams Managing Projects & Networking • Delivering results on time and on budget • Establishing and cultivating your network for success Communicating with & Influencing Executives • Making a business case • Selling your ideas • Writing and communicating Leading Innovation & Managing Change • Driving innovation • Managing change Continuous Self- Development • Creating and managing your individual development plan • Seeking career guidance Projects: Solving Government’s Problems Project Criteria: Agency Criteria: Important management issue that requires action Leadership committed to testing innovative solutions Solutions within control of an agency Committed to providing necessary background materials and data Potential for high-impact results Support participants and their time away from the job Dealing with High-Risk Issues Improve communication during food recalls Recruit talent required to care for veterans Ensure sufficient energy for our country Improve employee morale to enhance economic and homeland security Coaching 360o assessments – anonymous Coaches identify strengths, weaknesses and blind spots Personal action-planning tool for long-term skills development Personal coach for ongoing advice -government and business leaders 360o repeated after program to measure growth Building Your Leadership Pipeline 1. Engage senior leaders 2. Identify competencies 3. Assess developmental needs 4. Create leadership development strategy 5. Use Individual Development Plans (IDPs) 6. Tap into talent pool of retirement-eligible employees and retirees 7. Don’t let $$$ be the barrier 8. Assess results Panel: What are you doing to build your leadership pipeline? Building and Maintaining a Strong Workforce in Tough Times 4. Building a Partnership With HR Why it Matters “It is not at all clear how government can be well executed unless it is able to compete more effectively for its fair share of talent.” HR must give value or give notice.“ “If line managers and HR professionals are to be the champions of organizational capability, then a new agenda for both HR practices and HR professionals must emerge.” Why it Matters GT 2008 survey – HC/HR #1 concern GT 2009 survey – right talent #1 factor in clean audit 2009 survey of corporate CFOs – most critical factors: • Strong leadership • Hiring best people HR Evolving -- Splitting in Two Administrative and transactional work -increasingly automated or outsourced Transformational work -- helps develop organizational goals, determines what capabilities are needed and creates HR practices David Ulrich The Shift – in Theory Personnel management HR management Rule maker Consultant Functional orientation Business orientation One-size-fits-all Tailored programs Centralized decisions Framework for others to decide Mutual distrust Partnering Focus on activities Focus on impact Internal services Outsourcing But … the Current Reality Very little change Instead of playing a central strategic business partner role, HR maintaining status quo Ed Lawler What’s HR’s Mission? • Implement a system of personnel administration which will ensure equitable treatment of employees through a merit system based on recognized princ1ples of appointment, promotion, classification, termination and other aspects of government employment. • Plan, organize and implement pre-service training, in-service and federal programs to rehabilitate, upgrade, and enhance the skills and work performances of all employees thus promoting self-reliance, dependability and enhance competencies in the quality services for the public. Blah, blah, blah What’s HR’s Mission? Attract, develop and retain the talent we need – and measure our progress HR’s “New” Roles HR expert Business partner Change agent Leader The “New” HR Competencies Organizational acumen Results orientation Interpersonal skills Making/implementing tough decisions Demonstrating empathy Speaking and writing persuasively Analyzing data Negotiating Demonstrating good judgment Coaching Applying knowledge of HR principles/methods Systems thinking Understanding technology What Managers Should Expect From HR Understand HR business and your business and how HR can support strategy Build partnerships -- be flexible, champion change Rely on data -- deliver measurable results on outcomes What HR Should Expect From You Allow HR to be a business partner Involve HR early Take ownership of talent management Ask questions and champion change Understand tomorrow’s workforce What You Can Do Get involved in recruiting and hiring Do a good job onboarding new employees Make performance management work Train and develop Ask questions and push for change Understand tomorrow’s workforce Panel: What are you doing to build a partnership with HR? The Bottom Line Understand recruits’ and employees’ expectations -- and then meet them Use interns as key talent source Develop multiple talent pipelines Recruit aggressively and make the hiring process work Onboard strategically and thoroughly The Bottom Line Become a best place to work Focus on performance management Build the leadership pipeline Create more flexible, timely, user-friendly and responsive civil service systems Set expectations with HR Use workforce planning as the foundation There isn’t any silver bullet to attract, develop and retain talent It takes silver buckshot! Bob Lavigna rlavigna@ourpublicservice.org www.ourpublicservice.org