Talent Management and Retention. Clay Kittrell Director, Talent Management May 2016
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1 Talent Management and Retention Clay Kittrell Director, Talent Management May
2 Workforce Trends According to the Bureau of Labor there were 5.4 million jobs open at the end of November 2015, up 32% from 2 years ago. 1 Job seekers continue to have more information at their fingertips related to an organization s pay, benefits, culture, work-life practices, mission, etc. allowing top talent to choose organization where they best fit. The hiring outlook for college graduates continues to improve as employers plan to hire 11% more new college graduates from the class of 2016 than they did from the Class of U.S. starting salaries are projected to increase an average of 4.1 percent in 2016 for professional occupations. Accounting and finance professionals can expect their starting salary to rise an average of 4.7 percent Job Openings and Labor Turnover November Bureau of Labor Statistics January Job Outlook 2016: U.S. College Hiring to Increase 11 Percent, National Association of Colleges and Employers, Oct. 21, Robert Half 2016 Salary Guide for Accounting and Finance 2
3 Workforce Trends 3
4 Workforce Trends 4
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6 Business Climate: Internal and External Internal External Ongoing O&M pressure Need to understand the impact of ongoing and anticipated project work on core resources availability Looking for individuals with strong analytical skills Trend towards individuals with consultative expertise/approach to partner with business units when making decisions Positive conversion rate of interns Limited pool of individuals with Utility experience Concern over attractiveness of the Utility industry Difficult to find individuals with good technical skills and people management skills at desired pay range Difficulty attracting individuals with strong skill sets in niche functions Trying to enhance relationships with targeted schools for entry level hires 6
7 Workforce Trends Projected Change in Employment : Financial Positions Source: US Bureau of Labor Statistics 7
8 Workforce Trends Finance as of 1/1/16 Average Age = 45 Sample Entergy Demographics Average Years of Service = 13 8
9 Talent Management Model Where do we need talent? Succession Planning WF Planning Reduce Demand for Talent Build/Retain (Talent Building) Improve processes to improve efficiency Outsource (Vendors) Internal Talent Assessment Succession Planning Employee Development Leadership development Performance Management Knowledge Management Compensation/Benefits Organizational Health Initiative (OHI) External Development of pipeline of qualified personnel with educational institutions, industry consortiums & government partnerships. Co-Op & Intern Programs (2 and 4 year colleges) Industry Consortium Strategy, including government partnerships Tie in to corporate donations strategy Labor Integration WF planning accounts for business strategy, macro workforce trends (including diversity) Talent Acquisition Military Strategy Internet strategy, including social media Diversity Recruiting 4 year college recruiting 2 year college recruiting Efficient Internal processes Search firm strategy Testing strategy Employee Engagement Strategy (for recruiting) Contingent Workforce Annual BU Strategies 9 8
10 Overlap in HR and Finance Roles in Talent Management Workforce Planning Depending on structure and role both functions can serve as counsel for leadership, approvers of transactions, auditors of practices trackers of data Functions are typically both interested in workforce planning; however, the topic is approached from different vantage points and potentially with different objectives. 10
11 Annual Workforce Planning/ Sourcing Strategy Development Initial target audience include segments within the following BUs: Utility Nuclear Fossil Transmission Corp Gather data and analyze (Talent Management, HRBP, Finance, HRO) Engage business unit (may be iterative) Aggregate decisions into work plans Execute on focus areas and monitor programs & adjust as needed Workforce demographics Attrition, supply, and movement data Financial data Business challenges Key jobs Gather POV, opportunities and challenges Discuss data analysis Review workforce needs Identify of key business drivers Validate of key jobs Consider integration points to HR programs or initiatives Agree on focus areas Create BU level plan for sourcing and staffing purposes Aggregate all BU decks by region, focus area, OCE, etc. Synergize sourcing and recruiting efforts Adjust sourcing/staffing strategies as needed Implement agreed to actions (BU and HR) Create regular checkups between business, HR, Finance to adjust plan as needed Joint HR/Finance effort to review current and future workforce needs to determine in partnership with the business a proactive path forward to meet the staffing and financial challenges of the business unit. 11 9
12 Utility Industry Workforce Satisfaction Challenges Source: CEB 2015 Global Labor Market Survey. 12
13 Utility Industry Workforce Satisfaction Challenges Source: CEB 2015 Global Labor Market Survey. 13
14 14
15 15
16 Leadership Development can help to improve Manager Quality and Employee Engagement 16
17 Example: New Leadership Development Programs 17
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19 19
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21 Better Performance Management Practices Can Improve Manager Quality 21
22 22
23 23
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25 25
26 Cargill Movement to Everyday Performance Management 26
27 27
28 PRED Overview 28
29 29
30 30
31 31
32 Utility Industry Workforce Satisfaction Challenges Source: CEB 2015 Global Labor Market Survey. 32
33 Better Recognition Practices Can Improve Manager Quality 33
34 34
35 Employee Appreciation Events 35
36 36
37 Utility Industry Workforce Satisfaction Challenges Source: CEB 2015 Global Labor Market Survey. 37
38 Newbies (22 26) Age Groupings and Behaviors Provided by NEI, 2016 Large amounts of college debt Not ready to start family Not worried about retirement Want time off, flexible arrangements Want to travel Like to work in teams Like cool office space Want to do something valuable/important Like technology Ideas to Retain: Consider programs to pay off college debt Communicate developmental opportunities early Give them roles in efforts with larger scope/meaning even if only a small role Allow them to engage as a team/group in activities (charitable actions, for example) 38
39 Young Professionals (Ages 27 31) Still large amounts of college debt. Can t buy house they want. Have about 5 years of experience, so attractive to other companies See that many of their college friends have progressed quickly in other companies They want to innovate but don t feel they have the opportunity They want to understand their career progression opportunities They want frequent feedback on their performance (not just once or twice a year) Support Ideas to Retain: Consider programs to pay off college debt, possibly support the purchase of a first home Give these employees more responsibility Rotate these employees into other roles for experiences Coach the supervisors of these employees to provide frequent feedback to these employees 39
40 Senior Young Professionals (Ages 32 36) Have some college debt, but able to buy a home and start a family. Expect to have 1 or 2 children and want to be around to raise them They are now the most senior of young professionals They haven t been given choices to innovate or change processes They worry that they aren t advancing their skills They ve been told they are important to the future of the company, but they don t see evidence of that They may have been promoted to supervisor with little training or support Some promoted to supervisors are struggling with seeing that the benefits outweigh the costs, especially those with young families Some Retention Options Flexible work arrangements Access to childcare In addition to pure supervisory roles, seek out informal team leadership roles for these resources Leadership development focus and training Give more authority and opportunities to high potential employees (presumes that you know who they are) 40
41 Mid Career Professionals (Ages 36 46) Raising children and possibly supporting parents or grandparents May have some envy of peers in other industries (pay, time off) Filling supervisory roles but often find themselves working down a level because their wasn t someone to fill their old role effectively. Feeling pressure to protect younger employees so that they don t fail, which causes some resentment because they were not given the same courtesy They feel that it may not be possible to backtrack to consider another career path They are being heavily recruited by other companies Some Retention Options Flexible work arrangements, Family First Culture Access to childcare Balance supervisor and individual contributor workloads Better training on delegation skills and emphasis on practice 41
42 Professionals (Ages 46 56) Prefer flat organizational structures. No one needs to be the boss if everyone knows what s going on. Have children in high school and college, creating some financial pressures Terrified of making mistakes (or taking risks) scared it may hurt their career or pay Often seen as being at the top of their fields May have specialized skills or knowledge Feel its burdensome to hire and train newbies. Often see them move on to other roles once trained. Would like to retire and possibly work as a contractor or consultant Some Retention Options Match professionals with Newbies in Mentor relationships where professionals have an interest and passion Carefully consider strategies to bring back retirees in contractor roles and effects on larger workforce development 42
43 Senior Professionals (Ages 56 72) Most technically able to retire at any point Some don t want to retire due to financial constraints. Many lost the opportunity to retire young due to the 2008 economic downturn when their 401(k) investments declined and when the cost of college skyrocketed and they had to work longer to pay for their children s education. They have growing health issues and cannot retire unless they are provided health care coverage to bridge them until they are eligible for Medicare. They do want to mentor and share their knowledge. They are hoping for a company package to incentivize them to retire. They developed many of the processes currently in place today in the industry. They understand why they were needed, but haven t had the opportunity to turn over that knowledge to the Newbies and Young Professionals. They would like to consult in their retirement to keep themselves busy, but not work full time. They want meaningful work but do not want to put in 12-hour days. Some Retention Options Companies should revisit their workforce demographics and determine if there are ways to transition some of these people into positions of a mentor, training or knowledge transfer-focused position. Consider part time/phased retirement programs 43
44 Utility Industry Workforce Satisfaction Challenges Source: CEB 2015 Global Labor Market Survey. 44
45 Focus on Innovation, even in the absence of formal programs 45
46 Key Messages Workforce is transforming Workforce Planning should be a part of business planning process, supported by HR and Finance Retention Focus Lots of Potential Levers Manager Quality Leadership Development Manager Quality Performance Feedback Recognition and Employee Appreciation Diversity and Inclusion Generational Retention Ideas Innovation helps retention 46
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