WORKFORCE PLANNING

1. WORKFORCE PLANNING NC Office of State Personnel

2. Workforce Planning North Carolina is soon to become the seventh most populous state in the country. The need for services will increase along with the complexity of many of those services across state government. To meet our goal to provide state-of-the-art governance and quality services, we must begin thoughtful and deliberate planning for the talent needed now and for the future. The retirement of Baby Boomers and a looming skill gap will create a supply-demand situation unlike any in history. Over the next few years as the demographic landscape continues to change, the challenges with staffing in state government workforce are going to become significantly more difficult. In this environment of limited resources, we need to maximize and leverage every resource at our disposal. One way to do that is to embrace an effective program of workforce planning. Workforce planning, talent management, human capital management is the array of interconnected processes by which an organization attracts, motivates, develops and retains the talent to perform and achieve the organization’s mission. Often this work is thought to be the work of HR but in fact getting the best out of each employee is the responsibility of everyone. To maintain any kind of competitive edge, we must begin thoughtful and deliberate planning for the talent needed now and for the future. This morning I would like highlight the business case for workforce planning and present an overview of a workforce planning model and a menu of recommended solution strategies for your consideration. Gary Wiggins will present a Succession Management model Over the next few years as the demographic landscape continues to change, the challenges with staffing in state government workforce are going to become significantly more difficult. In this environment of limited resources, we need to maximize and leverage every resource at our disposal. One way to do that is to embrace an effective program of workforce planning. Workforce planning, talent management, human capital management is the array of interconnected processes by which an organization attracts, motivates, develops and retains the talent to perform and achieve the organization’s mission. Often this work is thought to be the work of HR but in fact getting the best out of each employee is the responsibility of everyone. To maintain any kind of competitive edge, we must begin thoughtful and deliberate planning for the talent needed now and for the future. This morning I would like highlight the business case for workforce planning and present an overview of a workforce planning model and a menu of recommended solution strategies for your consideration. Gary Wiggins will present a Succession Management model

3. David Walker, the Comptroller General of the United States, framed the talent issue as: “… the need to transform what government does and how it does business in the 21st century. Agencies must come to grips with the fact that some of our most basic policies, processes and procedures are years out of date. In the human capital arena…managers need to identify their own workforce needs and do a better job of recruiting, empowering employees, recognizing and rewarding performance….Modernizing the government’s human capital policies and practices may mean the difference between success and failure in the war for talent.”

4. Bob Lavigna, Vice President of Research with the Partnership for Public Service, states: “To successfully compete for talent, government must abandon outdated and bureaucratic systems and become more flexible, timely and responsive. Agencies need to recruit more aggressively; hire faster; clearly identify and then develop competencies; respond (or even cater) to new attitudes about work, career, and life; reward good performers; and improve or remove poor performers.”

5. Indra Nooyi, CEO Pepsico “Today’s marketplace is incredibly competitive in every industry around the globe. The difference between success and failure is talent, period.”

6. Five Facts That Frame the Situation Fact #1: The impact of the aging workforce Fact #2: Most States are aware of the depth of the problem Fact #3: Most States are ‘frozen’ regarding how to attack and manage the problem Fact #4: Most States are likely still viewing this as an ‘HR’ problem and solution Fact #5: Those who maintain the status quo will likely be outperformed by others in attracting required talent

7. Key Demographic Trends For the first time in American history, the number of younger workers entering the labor market will not replace those who are leaving Every day 10,000 Baby Boomers turn 55 years old For every two experienced workers leaving the workforce, one will enter  

8. Key Demographic Trends By 2030, the gap will grow to 35 million 70 - 80 million baby boomers will eventually retire Not only will there be fewer available workers, but new workers are not bringing with them the skills or education necessary to perform jobs being vacated by the retirement boom  Today, 85% of jobs require education beyond high school, compared to 61% in 1991

9. NC State Government Key Trends Baby boomers (people born from 1946 -1965) comprise 58.14% of the total number of employees 9.40% of current state employees will be eligible to retire in 2010 with a dramatic increase to approximately 34% in 2015 Annual turnover of 17.19% for employees with less than two years of service and 18.27% for employees with less than five years of service What is the risk? High retirement and high turnover vulnerability More critical than ever to invest in recruitment and retention and developing the employees that we haveWhat is the risk? High retirement and high turnover vulnerability More critical than ever to invest in recruitment and retention and developing the employees that we have