Workforce Planning Fundamentals
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1 Avoid the Retirement and Skill Gap Tsunami: How to Prepare for a Utility Workforce of the Future March 7-9, 2018 San Francisco, CA Customer + Corporate Symposium Reagan Brown, Southern California Edison Nicole Sweiss, San Diego Gas & Electric Company Ivette Lucero, SoCalGas EXCHANGING EXPERTISE SINCE 1893 Workforce Planning Fundamentals Reagan Brown, Sr. Manager, Workforce Insights 2 1
2 Defining Workforce Planning Recruit Develop Redeploy Outsource Workforce Planning is a continual planning process used to align human capital to the business strategy and affordability boundaries of the organization. It involves forecasting the future talent needed to accomplish business objectives, analyzing current workforce, and identifying gaps between the present and future. It informs the strategies that structure and shape the workforce to ensure a company has access to the talent it needs to perform effectively and achieve it s objectives. Workforce Planning is: Proactive rather than reactive Ongoing process (i.e., reviewed/refreshed regularly) Dependent on financial affordability of the workforce Uses internal and external data Forecasting current state and future state talent needs to support the business long-term strategic vision Identifying critical roles A driver of HR strategy and talent decisions (e.g., hiring plans, job design, success planning) Workforce Planning is not: Done exclusively by HR requires OU and Finance Perfect prediction of HC commitment to future decisions A cost control exercise aimed to reduce staffing levels Forecasted based solely on historical workforce data Implementing solutions to address talent gaps informs Talent Solutions, Total Rewards, etc. strategies Identifying skill requirements for future roles An answer to all workforce issues not overtly focused on addressing org structure, business processes, culture 3 ILLUSTRATIVE How Workforce Planning delivers visibility to talent needs 4 2
3 Business value and benefits of Workforce Planning Improves Business and HR Dialogue Driver of HR Strategy Identifies Critical Roles Enables Business Strategy Workforce Planning Supports Budgeting Process Identifies Gaps in Talent Capabilities Provides Talent Demand Signals Workforce Planning is an integral piece of a company s labor strategy and will drive business excellence, increase return on labor investment, and enable HR to deliver strategic value: Better understanding and visibility of company-wide talent needed for the work being done to allow the OUs to align talent to business strategies Provides a mechanism for projecting headcount within affordability boundaries and directly linking expenditure of personnel against business outputs and outcomes Proactively identify staffing demands and critical talent gaps to help avoid business disruptions and unneeded costs Ability to attract, recruit, and retain the appropriate talent with the capabilities needed to deliver safe, reliable, affordable, and clean power Make better informed job design, resource allocation, and location planning decisions Performance management and career development plans for employees resulting from knowledge of talent needs Workforce planning results in a more competitive workforce 5 Implementing Workforce Planning is a multi-year journey Objective Strategic Workforce Planning Long-term forecast (2-5 years) Modeling/scenario planning based on market trends, segmented workforce strategies, cost drivers, etc.. Holistic HR response. Operational Workforce Planning Near-term forecast (12-18 months) Headcount Planning HC aligned to budget plan Identify granular staffing needs (e.g., skills, levels, timing), diagnose staffing gaps, and develop a staffing response. Integrate and align with existing business initiatives. Conduct current state HC analysis. Set meaningful business headcount targets by org unit, job title, and time period. Workforce Planning Foundation Define objectives and align resources Get buy-in on strategic intent and alignment of expectations from HR and OU leadership and begin to build WFP relationships 6 3
4 Workforce Planning in Action Nicole Sweiss, Sr. Human Resources Research and Analysis Advisor Changing Age Distribution 4
5 Our Workforce Planning Journey Company Culture Diversity Engagement Work-Life Balance Right People Right Time Getting people in the door efficiently Promotions/Transfers Temp upgrades (Justin-Time) Skills to deliver organization s strategy & goals Full-time, Part-time, Temps, Consultants, Outsource Right Skills Right Cost $ to attract & retain Budgets Compensation/Benefits Workforce Planning Process Focus: Operations Departments Workforce Analysis Historical data analysis Critical Roles identified Feeder pools into critical roles analyzed Forecasting\ Brainstorming Strategy alignment Staffing implications ID internal/ external changes affecting org New skills/positions needed ID risks & mitigations Analyze Gaps Gap analysis Critical Role Supply and projected attrition/ internal movement Adjustment for identified future scenarios/ expectations Costs calculated Action Planning Acquire new talent Develop internal talent Partner with talent orgs Move talent Retain talent Exit talent Implementation HR partnered with Officers, Directors, & Managers to execute action plans Approvals Accountability Metrics-Monitoring Evaluation Every 6 months 1 year review Utilize entire process to ID any changes Document 5
6 Analysis Example: 5 Year Retirement Forecast Average Retirement Age: 62 26% likely to retire in 5 years 43% total retirement eligible Similar numbers throughout the Company Knowledge Management and Learning & Development Strategy Ivette Lucero, Learning and Development Manager 3/20/2018 6
7 By 2025, the demographics at SoCalGas will drastically change with millennials as the majority generation (55%) in the workplace. Global Trends Builders Boomers Gen X Millennials Next Gen TBD 70mil Worldwide and in the US, Millennials are the largest generation yet; some 2.3 billion strong (U.S. Census Bureau). Within the next 20 years, more than 70 million baby boomers will be retiring. (2015 McKinsey Global Institute Research). In the greater Los Angeles area, the population of adults 65+ is projected to grow by 19.2% between 2014 and 2020 (California Dept. of Finance). 21.8% Technology IT/ Computer Jobs 2010 < % STEM JOBS 10.3% Architect & Engineer Jobs 15.2% Science Jobs 16.6% Math Jobs Demand for STEM professionals is expected to add more than 1 million new STEM related jobs to the workforce by 2020 SoCalGas Knowledge Management Strategy Maturing/ Changing Workforce Business Drivers Organizational Changes/Moves Required Operational Bench Strength Enabler Culture Ensure business continuity by sustaining and growing operational bench strength through knowledge sharing Short Term Priorities 1. Implement knowledge transfer program focused on retiring workforce 2. Identify critical roles with extensive time to competency and develop structured programs 3. Develop process to ensure critical knowledge is shared, regardless of tenure Long Term Priorities 1. Educate workforce on KM best practices to support embedding practice into daily workflow 2. Accelerate time to competency and productivity for new hires and critical roles 3. Build a knowledge sharing culture Keys to Success Aligned with company strategy Active/Visible Sponsorship 14 Systematic Processes and practices Focus on critical knowledge Continued dedicated resources 7
8 Focus was on developing systematic programs through Learning & Development KM Training Competency Training Job Shadowing Informal Mentoring Structured Knowledge Transfer Plans Leadership Development Lunch N Learns Webinars Development Programs Organic Systematic Informational Interviews Content portals, repositories Facilitated Best Practice transfer Updated Technical Training Social Networking Blogs, wikis, videos Lessons Learned Partnership with training orgs Knowledge Communities Meetings Informal Knowledge Sharing Events Formal Formal Mentoring 15 Through combining Knowledge Management with Learning & Development, structured programs were created based on identified skill gaps (examples) Gap Identified Structured Program Developed Knowledge Management Best Practices Intro to Knowledge Management: Training available for all employees Fleet Management Leadership Performance analytics and tracking Leadership Training, including Safety Lack of sharing tacit, critical knowledge in key areas Fleet Leadership Training: Required for all Fleet Supervisors Performance Analytics & Coaching: Training for field supervisors to measure, track and coach employees to better performance Leadership programs at each level of leadership Safety Leadership for all field supervisors Knowledge Communities launched: Field Supervisors, Compressor Stations, Cathodic Protection 16 8
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