Internal Audit Report

Transcription

1 Internal Audit Report Career Development Program TxDOT Internal Audit Division

2 Objective To assess program maturity and what impacts are being made through TxDOT s career development program. Control Environment The Workforce Development Section of the Human Resources Division (HRD) manages the TxDOT Career Development Program (CDP). HRD created the CDP charter in FY 2017 and included nine FY 2017 milestones, along with three additional milestones with no specified completion date. Three of the milestones related to providing training to all district and division (D/D) managers. The milestone completion dates were from July 2016 to December An HRD Career Development team subsequently developed and presented a CDP course (Career Conversations) initially targeted to TxDOT management personnel. Per the HRD website, career development is an individual responsibility of each TxDOT employee. Career development resources, available on the HRD intranet site, include videos demonstrating how to conduct career conversations, a form (Form 2619) to document individual career interests, and two guides for employees and supervisors to aid in creating individual career plans. Employee responses in the TxDOT biennial employee survey are the key metrics used by HRD to determine the success of their career development efforts, with FY 2018 survey results expected to be available in June In addition, the number of enrollments in Career Conversations training is another metric used to measure activity in the CDP. No further monitoring of employee participation in CDP is currently being tracked or monitored by HRD. Summary Results No individual audit findings were identified during this audit. As a result, no Management Action Plans (MAPs) were required to be provided by the client. Results of audit test work are as follows: Scope Area Evidence CPD Milestones and Metrics Not all HRD milestones were deemed to be completed by their completion date, and no milestone dates were set in the Program Charter after December Managers were the intended initial participants for the Career Career Conversations (DEV135) training. Development Program Mentorship programs exist for certain specialties in addition to an independent mentoring program HRD discontinued as recently as August Manager Expectations for CDP Managers expressed interest in HRD providing more holistic staff training to help staff understand and prepare for growth opportunities at TxDOT. August

3 Managers expressed concerns regarding non-availability of training or the long distance to training locations. Managers opinions varied on whether they or their direct reports are expected to initiate career conversations. Audit Scope The audit scope was to evaluate the maturity of TxDOT s CDP and benchmark by comparing it to programs used by other departments of transportation. Results identified in the comparison were used to benchmark TxDOT against other CDPs to help provide additional context and identify possible areas for improvement within TxDOT s current and potential CDP. The audit was performed by Lilly Burson and Russ Chidester (Engagement Lead). The audit was conducted during the period from December 8, 2017 to February 23, Methodology The methodology used to complete the objectives of this audit included: Reviewed HRD Program Charter which dated a Program Refresh as February 2017 with 12 milestones spanning January 2016 to December 2017, and career development policies and procedures from initial program planning in FY 2015 through Q2 FY Judgmentally selected and interviewed 20 managers, including Supervisors, Section Directors, Directors, Managers, and Area Engineers, from five districts and five divisions which had especially high and low rates of promotions executed in FY Interviewed ten external contacts from five state departments of transportation to identify best practices for career development (Arkansas, California, Illinois, Michigan, and Oregon). Evaluated several maturity models for relevance to career development and selected the People-Capability Maturity Model (P-CMM) Version 2.0, Second Edition, created by an institute of Carnegie Mellon University for the U.S. Department of Defense. Based on the best practices in fields such as human resources, knowledge management, and organizational development, the P-CMM is a guide for organizations to improve and mature their processes for managing and developing their workforces. P-CMM has been utilized world-wide by organizations, small and large, such as IBM, Boeing, BAE Systems, Tata Consultancy Services, Ericsson, Lockheed Martin and QAI (India) Ltd. We then compared the TxDOT CDP to relevant elements of the P-CMM to identify areas for growth (See Figure 1, Appendix A). Background This report is prepared for the Texas Transportation Commission and for the Administration and Management of TxDOT. The report presents the results of the Career Development Program (CDP) review that was conducted as part of the Fiscal Year (FY) 2018 Audit Plan. HRD initiated the CDP as part of a Succession Management Program developed in FY Along with the CDP, HRD developed the Succession Management Guidebook, which defined responsibilities for employees, leadership, HRD Succession Management Administrators, August

4 and Human Resources Liaisons. Per a memo issued by HRD in June 2016, the intent of the Succession Management Program was to ask about employees career interests and development needs, and to discuss their potential to learn and grow within the agency. In FY 2016, HRD launched the CDP and started training sessions for supervisors and some employees with a key goal to have supervisors conduct career conversations with all their employees. In FY 2017, HRD discontinued use of the Succession Management Guidebook as focus changed from succession management to developing competitive employees. Career conversation videos, along with supervisor and employee guides for career conversations, are at the forefront of the current CDP. We conducted this audit in accordance with Generally Accepted Government Auditing Standards and in conformance with the International Standards for the Professional Practice of Internal Auditing. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. Recommendations to mitigate risks identified were provided to management during the engagement to assist in the formulation of the management action plans included in this report. The Internal Audit Division uses the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Integrated Framework version August

5 Observations and Recommendations Audit Observation (a): Elements of the CDP As of February 21, 2018, opportunities for maturing and measuring performance of the CDP were identified through interviews with HRD Career Development Staff and through review of Career Development Program (CDP) documentation. The following opportunities were noted: Milestones & Metrics 3 of 12 HRD milestones were selected for review. The following was noted: o CDP training was to be provided to all D/D managers by August ,004 of 11,544 (9%) TxDOT staff in FY 2017 and the first two months of FY 2018 completed the Career Conversations training (DEV135) by the Career Development team. 34% of those who received this training were not in a managerial role. HRD reported that the milestone to train all managers was completed as the initial training was intended for managers, however 658 of 1,036 (64%) of TxDOT managers took CDP training. o Competency-based career paths were to be developed and published by August Sample career paths were found to be developed for the following three specialties only: Professional Engineering, Engineering Support, and Maintenance. Also noted by Manager of Workforce Development to be partially complete. o Talent pools were to be built in PeopleSoft. Evidence of talent pools was not found. Also noted by Manager of Workforce Development to have yet to be started. HRD metrics for the CDP are limited to employee responses in the biennial survey results and to counting participants in a Career Conversations training course (DEV135). HRD does not solicit feedback from participants after each DEV135 training course. Mentoring Existing mentorship programs were limited to established programs related to certain specializations such as the Engineering Assistant Development Program, Inspector Development Program, and Survey Career Development Program. o HRD initiated an independent mentorship program for other job functions as recently as FY 2016, no mentor/mentee matches were made and HRD discontinued the program in the same year. Training 8 of 11 managers interviewed who received DEV135 training in FY 2017 stated they were unsure about what career development steps to take following the training or did not recall that they had completed training for conducting career development activities. August

6 HRD noted they had no plans for conducting additional Career Conversations trainings as of January 4, CDP Administrators expressed challenges in reaching front-line employees to communicate program objectives. Career development conversations were not a mandatory part of the performance management process and employee participation in the CDP was not required. Manager Expectations Interviews with 20 managers (10 in five districts and 10 in five divisions) noted varying expectations regarding the CDP: 16 of 20 managers understood the responsibility for identifying training needs for their staff s development and expressed interest in additional staff development assistance being provided by HRD. 10 of 20 managers indicated that although they make trainings for career development available where possible, distance to training locations and scheduled work duties often present limitations. 3 of 20 managers indicated front-line employees did not know what opportunities or resources were available to them, and requested better transparency be available for employees to understand possible career paths. 16 of 20 managers expressed desire for additional resources, which may allow staff to visualize and understand growth at TxDOT, including accessible, defined career paths for all types of employees. 9 of 20 managers stated that management more often initiates career conversations with their employees, 2 indicated that employees more often initiate career conversations, and 9 were ambiguous or indicated that it varied. Effect/Potential Impact Voluntary employee turnover at TxDOT has remained consistent in recent years, measured at 5.6% in FY 2015, 5.3% in FY 2016, and 5.7% in FY FY 2017 Statewide Turnover Rate was 18.6% compared to 11.5% for TxDOT. Audit Recommendation In order to continue to advance the CDP maturity level, TxDOT should consider results of the information obtained from 1) TxDOT managers (noted above), 2) benchmarking of five state departments of transportation (included below), and 3) components of the P-CMM (see Figure No. 1, Appendix A) when considering areas for improvement. The following are some of those highlighted areas for consideration: Re-establish agency CDP goals. Establish and promote an organization-wide mentorship program, with measured activity. Promote and provide better transparency to employees of different career paths utilizing skillsets already established or that could be obtained. Create a rotational program that allows candidates to handle duties associated with higher-level positions over a one to two year period. Identify and offer more courses to develop core competencies that can enable upward mobility. August

7 Integrate career-planning discussions with performance evaluations. Reintroduce a career planning form to employees and promote the importance and utilization of the form. Utilize social media to enhance the importance of a CDP. Track trade and clerical staff who received promotions into professional and management positions to provide real examples of such advancement. Create a career coaching position to actively encourage people to plan for their career and take advantage of career resources. Strive to be a recognized employer of choice and advertise this to employees. Closing Comments The results of this audit were discussed with/provided to the Human Resources Director on June 14, The Internal Audit Division appreciates the cooperation and assistance received from Human Resources Division during this audit. The results of this audit were also discussed with the Workforce Development Section Director, Chris Young. August

8 Appendix A Figure No.1 Maturity Model Assessment Level 5 Level 1 A No mentorship program. B Career discussions are minimal and/or without monitoring or controls. C Training for career coaching and upward mobility does not exist or is not utilized. D Employee engagement on CDP resources is minimal. E KPIs are not tracked regularly. Level 2 A No mentorship program or limited to certain specialties. B Career discussions are infrequent, although some resources to support those discussions is available for those interested. C Training courses for career coaching and upward mobility exist but are underutilized. D Employee engagement on CDP is decentralized and left at the local level and at management s discretion. E Multiple KPIs are established and some milestones are set. F CDP is not considered in conjunction with other HR practices. Level 3 A Basic organizationwide mentorship program established with minimal monitoring or KPIs. B - Career discussions occur regularly but are somewhat inconsistent. C Training courses are highly utilized, attendance is tracked, feedback is solicited after each session. D Employee engagement on CDP is decentralized with some support from Human Resources. E KPIs are closely monitored against milestones which tie to TxDOT strategic objectives. F CDP is considered in conjunction with some HR practices. Level 4 A Active, organizationwide mentorship program in most D/Ds. B - Career discussions occur regularly using a structured approach, and are documented. C Training courses are highly utilized, attendance is tracked as a performance metric against goals, feedback is solicited with accountability for taking action. D Employee engagement on CDP is balanced with responsibility at the local level, strongly supported with easily accessible resources put in place from a centralized department. E KPIs performance are reported at the Administration level for purposes of accountability. F CDP objectives are aligned with other HR practices. A - Active mentorship program in all D/Ds, with positive results monitored and documented. B - Career discussions occur regularly using a structured approach, are documented, and evaluated for effectiveness. C Training courses are updated regularly based on CDP best practices and some courses are specific to function. D Employee engagement on CDP consists of specific duties defined for local management and for Human Resources, with shared responsibility/ accountability. E Performance to KPIs are reported for accountability and are regularly reevaluated for improvement in CDP impact measurement. F Consideration of CDP impact is integrated into related HR practices, such as compensation, hiring, staffing, performance evaluations, talent management, succession planning, etc. Based on the evaluation, we have determined a level 2 status and recommendations noted above should be taken into consideration by management to determine if additional efforts and investments should be made to mature the career development program. August