Click to edit Master title style

Transcription

1

2 Click to edit Master title style Total Rewards Strategy Michael Rossman, Chief Human Resources Officer Hennepin County

3 Hennepin County as an employer County population: 1.2 million Total # of employees: 9,139 Job classifications: 365 Total # of job postings: 799 Total # of hires: 1,350 Union representation: 69% Bargaining units: 17 Average age of employee: 46 Average retirement age: 63 Average years of service: 11 Hennepin County Source: Year-end 2017 data

4 Our Total Rewards strategy Benefits that support health and wellness and recognize the diverse needs of the workforce. Pay that is competitive with the public sector and recognizes employee performance. Culture that respects and encourages employees to develop and use their talents.

5 Motivating factors for change Building a diverse workforce that mirrors the customers we serve Focus on workforce development (attract, develop, and retain) County Board request for compensation reform Growing retirement-eligible pool of employees Shifting generational demographics Regional workforce shortage and competition to attract best talent Workforce Development Generational Demographics Compensation Reform Retirement Diverse Workforce Workforce Shortage

6 Regional workforce shortage 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , year olds 65+ year olds 2020 employment outlook for the Twin Cities region: 670,000 replacement job openings + 370,000 new jobs created 1,040,000 total anticipated hires Projected workforce shortage of 100,000 workers by 2020 Source: Taking on 2025: Preparing for a New Demographics by Jane Tigan (Wilder Research) and Sean Kershaw (Citizens League)

7 Hennepin County workforce generations 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 54.1% 52.6% 49.9% 46.7% 43.0% 34.7% 36.0% 7.7% 8.5% 37.3% 38.0% 38.9% 39.6% 39.6% 40.0% 39.1% 35.4% 22.9% 19.5% 16.2% 13.1% 10.3% 3.5% 2.9% 2.4% 1.9% 1.4% 1.2% 1.1% 0.0% 0.0% 0.1% 0.3% 0.4% 0.7% 1.0% Traditionalists Boomers Gen X Gen Y Gen Z 31.6% 26.0% 1.7% 0.8% Generation X now comprises the largest % of the workforce, followed by Boomers, with Generation Y (Millennials) projected soon to be larger than Boomers. Note: Regular, unclassified, and temporary employees Traditionalists b. before 1946 Boomers b Generation X b Generation Y b Generation Z b. after 1994

8 Hennepin County resident race/ethnicity demographics with projections 80% 70% 60% 50% 40% 30% 75% 25% 71% 29% 67% 33% 64% 36% 61% 39% 59% 41% Hennepin County s residents of color population continues to increase and is projected to continue increasing. 20% 10% 0% Source: U.S. Census Bureau White residents Residents of color

9 Hennepin County resident vs. employee race/ethnicity with projections 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 39% 41% 36% 33% 41% 29% 30% 36% 25% 20% Employees of color Residents of color Hennepin County s goal is to attract and retain a workforce that represents the community it serves. We ve seen increases in the percentage of employees of color in recent years. If efforts continue to be successful, we expect to reach representation around 2030.

10 A unique approach for local government Proactive approach to attraction and retention of employees Keeps a closer eye on practices of the private sector We added the culture bucket of work

11 High level overview of process County Board approval for consultation Worked with Mercer: Internal labor market map (why things are happening, identifies risks, provides direction for priorities) Conducted focus groups to better understand employees perspectives Development of compelling Total Rewards philosophy County Board approval for implementation Implementation: Moving from philosophy to strategy Project manager New programming and services Key messaging

12 HR s and LR s timelines Year 2 of 5-year plan We are on track for our 5-year goals Addressing quick wins demonstrated immediate big impact Demonstrating progress on long-term recommendations and goals

13 Messaging and buy-in Messaging and buy-in from County Board was critical, to convince them to take the lead We demonstrated a high level of engagement from staff to help create solutions We took a holistic approach to address many challenges and find sustainable solutions We developed set of key philosophies and consistent branding for Total Rewards We gained support from County Administration and other county leaders by demonstrating a winning proposition What we provided to the Board of Commissioners: Timelines Engaging documents: placemat, tables, infographics, etc. Simple messaging

14 Benefits work: Benefits programs Bringing to benchmark existing programs Dental: 40%+ employer-paid

15 Benefits work: Financial wellbeing Financial literacy: Encouraging employees to save New tools: Paycheck tool Budgeting podcast Benefits lunch-n-learns Online financial wellbeing tools: Over 17,000 views by employees Messaging and resources for resident population

16 Benefits work: Tuition reimbursement County commitment to development: $5,250 (IRS max non-taxable annual amount) Financial aid application support Information sessions about exploring graduate school Site visits from educational institutions

17 Culture work: Cohort-style New Employee Academy NEOGOV onboard APEX registration New employee newsletter 3-month engagement activity 7-month engagement activity 12-month celebration

18 Participant satisfaction with cohort-style NEA 100% 80% 60% 40% 20% 0% NEA engagement session survey satisfaction rates 96% NEA 3-month sessions begin 100% 98% 97% Mar-18 Apr-18 May-18 Jun-18 3-month egagement sessions HR collects feedback in-person during 3 and 7-month engagement sessions Provides new way for HR to hear from employees early in their employment Gives HR the ability to address emergent issues Note: Satisfaction rate includes only agreement responses on 5- point Likert scale.

19 Culture work: Employee Resource Groups 8 active ERGs: Asian Connections Interfaith and Spirituality Lean In Millennials People of Color Transgender and Gender Non-Conforming Veterans Women in STEM Participation: 1,504 employees (16.5%) are active in ERGs Events: Networking events Volunteer events Trainings Listening sessions Projects with county departments

20 Culture work: Employee Career Center History: Launched in August 2017 Employees served to date: Vision: Over on-1 appointments Over 800 participants in trainings, classes, and events We envision a future where all employees have access to resources that will inspire them to reach their full potential and experience career fulfillment. Services: 1-on-1 career conversations Group trainings and class sessions: Creating a Professional LinkedIn Profile Resume Writing Exploring Graduate School Etc. Open houses, tours, career fairs Professional photos/headshots Mission: To connect Hennepin County employees to resources that inspire them to learn, grow, and explore career opportunities.

21 Satisfaction with Employee Career Center 92% employee satisfaction rate within first year of operation Qualitative feedback: The ECC is one of the best ideas Hennepin County administration has had. I stopped looking for jobs with other counties closer to home after visiting the ECC. I know the ECC can t offer me a management position, but knowing that the county is investing in its employees by having a career center is reason enough for me to stay and build my future at Hennepin County. I used the Employee Career Center to get help on becoming a mentor. The input I got was very useful. It helped me set realistic expectations for myself as I began this journey.

22 Pay work: 5-year plan for pay strategy Board of Commissioners requested compensation reform HR developed 5-year plan for implementation: Market analysis Market data (partial use) Job descriptions Market data (partial use) Job descriptions Points (partial use) Market data Job descriptions Points Job evaluation Market data Job descriptions Points Job evaluation Grading

23 Pay work: Current vs. future pay practices Administrative Job description Pay structure Rewards management Pay progression Current practices Future practices Knowledge is people-based Knowledge is people-based Succession-based thinking Centralized processes Standard operating procedures Informal Formal job descriptions for all jobs Owner for the process Job classes Steps/open range Cash merit Job classes Grades Points Steps/open ranges Minimum/median/maximum Cash merit Online PeopleSoft process Updated PeopleSoft process Add 5-point rating Disconnect GSA increases for individuals Rewards measured against job description Eliminate/freeze retention pay Inconsistent use of pay ranges for hiring and promoting employee Define a consistent approach to hiring and promoting employees in the use of pay ranges

24 Pay work: Merit pay pilot study Conducted merit pay pilot study for Information Technology job classes Outcome: Reclassification for consistency and market fit Do no harm philosophy

25 Total Rewards and Labor Relations strategy Total compensation and benefits statements issued annually plants the seed that the employment package/employee experience is more than just the pay rate. Changed negotiations calendar to negotiate pay and benefits at the same time. Market study formed backbone of our negotiations proposals: Employee focus groups highlighted concerns about inconsistency of pay and benefits. Generated a list of benefits improvements to pursue. Compensation data provided a credible perspective on pay heading into negotiations. More purposeful and consistent communication strategy for negotiations.

26 Communications strategy for negotiations We are being clearer and more consistent about how we talk about the benefits of working for Hennepin County and then explaining how that translates to our proposals at the bargaining table. Board presentation Talking points Opening statements Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec ut elit varius, tincidunt ante eget, commodo lorem. Nullam et leo in tortor cursus dapibus. Proin nec odio pulvinar, vulputate justo lobortis, consectetur turpis. Aliquam ultricies accumsan dictum. Sed volutpat tincidunt eros, quis maximus justo mattis non. Ut nec elit et risus viverra consectetur sit amet ut sem. Vivamus nec blandit lacus. Interdum et malesuada fames ac ante ipsum primis in faucibus. In bibendum List of proposals Opening economic proposal Update s

27 Results Stronger rationale for more consistent benefits rooted in the Total Rewards focus on the employee/ applicant experience. Solid grasp of where we are above and below the market which provides us with both concessions we want and possible gives we could make at the bargaining table. More impactful Board presentation The market scan of both pay and benefits allowed us to level set our Board re: how good our current employment package is, and our justification for the various proposals we will be making (and the cost of those proposals). More consistent conversation about the whys of our proposals by everyone in the organization (not just the labor negotiator). Better and more consistent data to support our no's at the table makes our work more credible. (Hopefully) starts to teach the organization how to manage pay and how to provide a credible no when it is needed. Stay tuned.

28 Michael Rossman Chief Human Resources Officer Hennepin County Kathy Megarry Chief Labor Relations Officer Hennepin County