Building Your Talent Pool for Future Growth. AGC of America Webinar September 15, 2016

Transcription

1 Building Your Talent Pool for Future Growth AGC of America Webinar September 15,

2 People Management is Changing Competitive Recruiting Environment Mobile Workforce Collaboration Alignment Impacts Success Career Planning & Succession 2

3 Building Your Talent Pool for Future Growth What comes to mind? Learning and development Performance management Career pathing Objectives for Today: Provide fresh thinking and trends around Workforce Strategy Provide you with new / different vernacular for your discussion with senior leaders 3

4 You ve heard the trends But did you know*: 22% of employees plan to leave or retire from their organizations in the next five years 44% in the next ten years The most common reasons that people plan to leave (besides retirement) are: 1) Lack of upward mobility / career path 2) Pay / benefits 3) Other career interests The things that employees say their employers do the worst job at are: 1) Transparency around bonuses/incentives 2) Equal accountability for all staff 3) Communicating to staff about career progression 4) Avoiding burnout for staff 5) Effective performance evaluations * Based on FMI s study of ~3,000 employee surveys 4

5 Workforce Strategy: Three Emerging Trends Changing Role of HR Evolution of Performance Management Enriching the Employee Experience 5

6 Poll Question Which of the following best describes your role? Owner / CEO / President / Senior Executive Senior HR Leader (VPHR, CPO, Director) HR Support, Generalist, Specialist or Manager Other Support Staff (Accounting, IT, Administrative, etc.) Ops. (Ops. Mgmt, Proj Mgmt., Field Mgmt, Estimating, etc.) 6

7 Do the Math: Typical Construction Firm Scenario: Revenue = $100,000, % Direct Labor = $45,000,000 45% Materials, Equipment = $40,000,000 40% Indirect Labor = $5,000,000 5% Other Indirect Costs = $5,000,000 5% Profit = $5,000,000 5% Total labor spend = $50 MM (or 50% of revenues) A 5% increase in individual productivity = $2.5 MM saved 5% of productivity = 24 minutes of 8-hour day $2.5 MM saved = 50% improvement to profitability The Million-Dollar Question: Would effective investment into your people yield: Higher productivity? More engaged workforce? Less succession challenges? 7

8 What happens if we invest in our people, and they leave us? What happens if we don t, and they stay?

9 Changing the Mindset Old School. New (Necessary) School. People are my #1 problem HR can solve this alone There must be a silver bullet We just need more training People are my #1 opportunity This is a strategic leadership priority; we need strategic HR abilities This is going to take a lot of discipline and a mindset shift 9

10 FMI Exists to Build Value for the Construction Industry and its Leading Organizations So What do you mean by value and why should I care? How does that apply to how we build our talent pool? Anticipated Earnings Risk of Earnings Internal Ability to deliver profitable work effectively and efficiently Not having to overspend on compensation to attract and retain staff Ability to ramp people up for future work External Ability to attract target customers though better differentiation Internal Mitigating risk of doing business (e.g. claims) Reducing causes of margin erosion Reducing sole dependencies on key staff Improving quality and engagement of workforce External Combat low availability of labor Improve retention of key customers Everyone in the organization should care about improving value; value provides job security and allows the organization to invest in itself, hire new people and reward staff. 10

11 What Drives Engagement in the Construction Industry? Top five drivers of engagement, per generation* Question Area Boomers Gen X Millennials This is a fun place to work Leadership has sincere interest in my well-being This is a place where I can truly make a difference 4 3 Company provides me opportunities to learn & grow 4 Leadership communicates transparently/honestly 3 I can grow beyond my current role 5 2 We hire technically competent people 3 Mission and/or purpose make me feel job is important 5 4 * Per FMI studies of Employee Engagement surveys, April

12 Maslow s Hierarchy of Needs: Applied to Employee Engagement* Maslow s Hierarchy What it Means Life s calling Legacy Superordinate purpose Feeling that hard work results in more gain than money Feeling organization cares enough to invest in people Appreciation and recognition from the senior level Sense a team / collaborative environment Contributions that benefit the organization Feeling of personal / team development Keeping skillset current and relevant Safe / non-hostile environment Honest / ethical leadership Ability to pay for mortgage / rent & food Maintenance of health Ability to perform basic skills and job *Visual provided by HRZone.com 12

13 Traditional HR vs. Workforce Strategy Recruitment Traditional HR Duties Onboarding Employer Value Proposition & Branding Workforce Strategy Career Pathing & Lateral Development Pay Job Descriptions Competency Development & Mgmt. Rapid Feedback & Metrics Benefits Performance Review Process Employee Engagement Total Rewards Strategy Compliance Retention Innovative Learning (e.g. Experiential) Succession Management Reporting Training Programs Notes These still exist, and likely are not going away Necessary to run the business and keep people out of trouble Should be less consuming as workforce strategy improves Typically handled by HR High Potential Development Strategy Development & Support Notes These usually only get done with the focus, direction and involvement of senior leadership HR typically too taxed by the left to focus on the right, plus need exposure and development Easy to get distracted by shiny objects and outliers (e.g. unlimited PTO, eliminating performance reviews) 13

14 Poll Question Honest assessment: How many of the following pieces of Workforce Strategy is your HR group actively involved in or leading? [Provide Response on Next Slide] Employer Value Proposition & Branding Workforce Strategy Career Pathing & Lateral Development Not sure Competency Development & Mgmt. Employee Engagement Innovative Learning (e.g. Experiential) High Potential Development Rapid Feedback & Metrics Total Rewards Strategy Succession Management Strategy Development & Support 14

15 Poll Question Honest assessment: How many of the following pieces of Workforce Strategy is your HR group actively involved in or leading? Not sure 15

16 Learning and Development 16

17 Most Common L&D Challenges Wrong medium or delivery, for example: In-person when it could have been e-learning or lecture when it should have been experiential If in-person learning, the trainer/facilitator needs to be engaging (entertaining helps too!) Wrong timing, for example: After work, when Superintendent has been awake since 3:00 am During lunch, when people are distracted No follow-up on message, for example: Not integrated into performance review or verified that it is being completed Not revisited at appropriate intervals Not targeted toward role, for example: Superintendents going to contracts and legal training Role players going to leadership training Not demonstrating skill or ability, for example: Ability to set up project Ability to conduct daily tool box talk Not tracking hours and spend, as well as feedback and benefits, for future decision-making: Going off of gut feel instead of structured data and feedback; no L&D budget Not transparent enough: All employee should have visibility into what they ve completed, what s outstanding and what s available to them 17

18 Creating Developmental Opportunities What does a good development plan look like? 10% 20% 70% Learn from classes Learn from others Learn by doing 18

19 Organizational L&D Plan: Definition of Levels Focus Level Definition Business Acumen Core Management How We : Means and Methods How To : Basic Skills Targeted toward senior leadership and high potentials, focused on skills such as directionsetting, market intelligence, contracts, financial and risk management, strategic thinking and planning and negotiation. Targeted toward management employees, focused on core management skills such as giving and receiving feedback, performance management, effective communications and leading teams. Targeted toward all employees, focused on executing the common way in areas such as project and field planning, team communication, project startup, close-out, documentation repository and systems use. Targeted toward all employees, focused on the fundamentals ( price of admission ) such as basic technical skills, analytical abilities, reading/writing, software. Could include basic life skills such as financial, health, well-being. 19

20 Organizational L&D Plan: Delivery Styles and Tips Focus Level Business Acumen Core Management How We : Means and Methods How To : Basic Skills Delivery Styles / Tips Immersive, pressure-tested, executive learning Mostly externally delivered, attending with external participants Uses real world scenarios and data (e.g. market data, contracts, 360-degree feedback, negotiation scenarios, etc.) Not necessarily targeted toward role, needed by all senior leaders and those on a high-potential track Delivered 50/50 internally/externally Some pressure testing Can be delivered with combination of direct colleagues and external participants Requires consistent re-visiting / refresh Can utilize some e-learning Not necessarily targeted toward role, needed by all managers Delivered all or mostly in-house Can heavily utilize e-learning; employee must demonstrate abilities May be provided by partners e.g. software vendor Standards need to be documented and easily accessible Requires a champion(s) to own standards Mostly targeted toward a role(s), often co-attended with other roles May need to utilize remedial learning sources (such as community colleges or technical schools) Should be price of admission e.g. required to be hired, so employee may need to cover some cost themselves Company partners may be able to support e.g. 401(k) carrier for financial planning, insurance carrier for health awareness 20

21 Learning and Development Trend to Watch: Reverse Mentoring Reverse mentoring: An initiative in which older executives are paired with and mentored by younger employees on topics such as technology, social media and current trends. Benefits: Identifies and mitigates generational differences Lets guard down Engages younger employees when someone listens and understands Creates self-awareness for both generations 21

22 Performance Management 22

23 Poll Question Which of the following best describes performance management at your organization: - We do not set individual goals nor perform employee reviews - We set individual goals but follow up is weak or nonexistent - We set individual goals, and are disciplined about reviews - Have annual reviews, but more emphasis on real-time feedback - None of the above / not sure 23

24 The Move to Competency-Based Development What is a competency? Observable and measurable knowledge, skills, abilities and personal attributes that contribute to enhanced employee performance and ultimately result in organizational success The case for competencies: Changes discussion from what do I need to do to get to the next level to how can I be even more effective in my current role? Creates awareness of employee about how much work and effort it takes to move up in the organization Less prescriptive and more on leading behaviors that will result in a desired outcome Focuses on developing predictable behaviors in an unpredictable world Forces managers to choose the most key competencies (can t have all) Drives better, deeper, discussions between a manager and employee Where to apply competencies: Hiring, performance reviews, learning and development plans, promotions Does it replace a job description? Not quite 24

25 Example Competencies for a PM Competency Anticipating and addressing client needs and challenges Discussion Areas: How did he/she do on: Identifying and resolving change orders Billings and collections Offering value engineering Developing teams Mentoring more junior staff Being clear with expectations Building unity Leveraging and building on processes Adhering to key processes Providing feedback on how to improve Training others on processes Building valuable client relationships Identifying new clients and stakeholders Maintaining relationships and showcasing value Identifying networking channels Competencies increase the value of manager-employer discussions, reduce unnecessary clutter and get to the heart of how one can improve in their current role. 25

26 Myth-busters True or False? Performance management and performance ratings are becoming a thing of the past True or False? Annual or semi-annual performance reviews and ratings, as a stand-alone event, are becoming a thing of the past True or False? The future of performance management will save managers and HR a lot of time and effort At most companies, employee performance drops by around 10% when ratings are removed because of breakdowns in managers' ability to manage and a fall in employee engagement. Corporate Executive Board 26

27 Developing Effective Real-Time Feedback: PM Case Study Leading a monthly project update Closing out a Project Establishing Real-Time Feedback Processes Peer and manager feedback Structured feedback processes and scoring with simple tools Mapped to competencies Administered by HR Negotiating a Change Order Attending an Industry Event 27

28 Developing Effective Real-Time Feedback: PM Example (Continued) Checkpoint: Closing out a Project (Example) HR Notified of Project Closures Manager Conducts Interim Feedback Session Manager Conducts Annual Review Submits forms to PM, his/her manager and peers Collects and aggregates feedback, based on competencies Provides plus / delta feedback Discusses opportunities for development Submits discussion forms back to HR Utilizes aggregated feedback from throughout the year Discusses skills and abilities to work on for next year, and specific developmental opportunities Discusses targeted promotion 28

29 Considerations for Real-Time Feedback Keep it simple! Easy forms, electronic, five-ten minutes per manager and peer feedback submission Quantitative scoring (scale of 1 to 5), opportunity for qualitative feedback; require qualitative feedback for outliers (e.g. scores of 1 or 5) Map feedback to competencies and any targeted developmental opportunities Establish checkpoints per position Beta test process before rollout Executive champion necessary 29

30 Wrap-Up 30

31 Wrap-Up Key Observations around Building a Your Talent Pool: Planned and unplanned attrition, combined with limited talent coming into the industry, creates a compelling business case for Workforce Strategy Employees want to win! HR can play a fundamental role in creating a culture of effective feedback, active development and winning Workforce Strategy must be championed and supported by senior leadership, and HR should lead efforts HR will need to speak in vernacular that resonates with company ownership and leadership tie Workforce Strategy back to what creates value for the organization earnings and mitigated risk 31

32 Speaker Information Jeremy Brown Senior Consultant FMI Corporation Tel: Specialties: Strategy, Operations and Talent Consulting FMI Experience and Clients: 50+ construction industry clients, including GCs, Civil, Electrical, Mechanical, Specialty Subcontractors, Industry Associations (AGC, ABC) Prior Experience: Strategy and Operations Consultant: Deloitte Consulting Corporate Real Estate Project Manager: Continental Airlines Laborer and Surveyor: Kamtech/AMEC Construction Education/Training: Masters in Real Estate and Construction Management: University of Denver Bachelor of Science in Management, Minor in Management Information Systems: Penn State Project Management Professional (PMP) & LEED AP Let s connect! 32

33 About FMI FMI is a leading provider of management consulting, investment banking and research to the engineering and construction industry. We work in all segments of the industry providing clients with valueadded business solutions, including: Strategic Advisory Market Research and Business Development Leadership and Talent Development Project and Process Improvement Mergers, Acquisitions and Financial Consulting Compensation Benchmarking and Consulting Risk Management Consulting Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. We deliver innovative, customized solutions to contractors, construction materials producers, manufacturers and suppliers of building materials and equipment, owners and developers, engineers and architects, utilities, and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers. Investment banking services provided by FMI Capital Advisors, Inc., a registered broker-dealer and wholly owned subsidiary of FMI. 33

34 BirdDogHR Expertise Since 1997 Pure SaaS 950+ customers Complete Talent Management Focus on Federal Contractors, Construction, Engineering & Supply Roots in Recruiting & Job Boards for Construction & Skilled Trades 34

35 2014 FMI 35

36 950+ Customers in Construction, Engineering, Manufacturing 36

37 Resources Now Available at BirdDogHR.com 37

38 Thank You! Ann Torry VP of Marketing BirdDogHR Tel: Jeremy Brown Senior Consultant FMI Corporation Tel: