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California State Council – SHRM 2008 Legislative Council April 28, 2008 The New Workforce & A Little Bit About HR Modernization The Right People in The Right Jobs

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California State Government One of the largest employers in the U.S.

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The State’s Aging Workforce

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Who’s eligible to leave in the next 5 years? <ul><li>35% of our current workforce, or roughly 80,000 employees </li></ul><ul><li>49% of our managers and supervisors </li></ul><ul><li>75% of our top leadership </li></ul>

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What does our current workforce look like? <ul><li>California State Employees by Generation </li></ul>13% 55% 29% 4% Traditionalists Baby Boomers Gen X Gen Y

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Generations in the Workplace <ul><li>Traditionalists 1900-1945, 31 million </li></ul><ul><li>Baby Boomers 1946-1964, 77 million </li></ul><ul><li>Generation X 1965-1980, 46 million </li></ul><ul><li>Generation Y 1981-1999, 78 million </li></ul>

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Generational Needs State of the Art Technology Technology is important To be in Charge of Something Top Down Approach Fun Casual Relationships with Authority To be Personally cared about by Management Measurable Goals Able to Multi-Task Flexible Work Schedules Empowerment Respect for their Knowledge Collaboration Balance Participative Management Clearly Defined Structure GEN. Y GEN. X BABY BOOMERS TRAD. GEN.

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Four Generations <ul><li>The time for a one-size fits all solution is past. </li></ul><ul><ul><li>As you develop solutions to the generational issues, you need to consider the motivational trigger points of the generations you wish to recruit and retain to ensure your solutions will work. </li></ul></ul><ul><li>That means you need to understand the generations. </li></ul>

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Traditionalists (62+) <ul><li>Influences </li></ul><ul><ul><li>Great Depression, Roaring </li></ul></ul><ul><ul><li>Twenties, World Wars I & II, </li></ul></ul><ul><ul><li>Korean War, G.I. Bill </li></ul></ul><ul><li>Characteristics </li></ul><ul><ul><li>Patriotic, loyal, “waste not, want not,” faith in institutions, military-influenced TOP-DOWN APPROACH </li></ul></ul><ul><li>Key Word: LOYAL </li></ul>

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Baby Boomers (44-62) <ul><li>Influences </li></ul><ul><ul><li>Suburbia, TV, Vietnam, Watergate, protests, human rights movement, drugs, rock ’n roll, the “Pill” and women entering and staying in the workplace. </li></ul></ul><ul><li>Characteristics </li></ul><ul><ul><li>Idealistic, COMPETITIVE, question authority </li></ul></ul><ul><li>Key Word: OPTIMISTIC </li></ul>

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Generation X (28-43) <ul><li>Influences </li></ul><ul><ul><li>MTV, Atari, PCs, divorce rate </li></ul></ul><ul><ul><li>tripled, latch-key children, </li></ul></ul><ul><ul><li>Just Say “NO,” MADD </li></ul></ul><ul><li>Characteristics </li></ul><ul><ul><li>Eclectic, resourceful, SELF-RELIANT, distrustful of institutions, highly adaptive to change and technology </li></ul></ul><ul><li>Key Word: SKEPTICISM </li></ul>

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Generation Y (8-27) <ul><li>Influences </li></ul><ul><ul><li>Expanded technology, natural </li></ul></ul><ul><ul><li>disasters, violence, gangs, </li></ul></ul><ul><ul><li>diversity </li></ul></ul><ul><li>Characteristics </li></ul><ul><ul><li>Globally concerned, realistic, CYBER- LITERATE, “personal safety” is number one concern </li></ul></ul><ul><li>Key Word: REALISTIC </li></ul>

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At work with Traditionalists <ul><li>How they work </li></ul><ul><ul><li>Stable, detail-oriented, thorough, loyal and hard-working </li></ul></ul><ul><li>Their preferences </li></ul><ul><ul><li>Not comfortable with ambiguity or change </li></ul></ul><ul><ul><li>Reluctant to buck the system </li></ul></ul><ul><ul><li>Uncomfortable with conflict </li></ul></ul><ul><ul><li>Reticent when they disagree </li></ul></ul>

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At work with Baby Boomers <ul><li>How they work </li></ul><ul><ul><li>Service oriented, driven, willing to go the extra mile, good at relationships, good team players </li></ul></ul><ul><li>Their preferences </li></ul><ul><ul><li>Rather not rock the boat </li></ul></ul><ul><ul><li>May put process ahead of result </li></ul></ul><ul><ul><li>Prefer infrequent feedback </li></ul></ul><ul><ul><li>Like to work with people who have similar points of view </li></ul></ul>

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At work with Generation Xers <ul><li>How they work </li></ul><ul><ul><li>Adaptable, techno-literate, independent, not intimidated by authority, creative </li></ul></ul><ul><li>Their preferences </li></ul><ul><ul><li>Multiple projects </li></ul></ul><ul><ul><li>Independence </li></ul></ul><ul><ul><li>Timely feedback </li></ul></ul><ul><ul><li>Change jobs, and maybe even careers, every two to three years </li></ul></ul>

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At work with Generation Ys <ul><li>How they work </li></ul><ul><ul><li>Optimism, work well in teams, multi-tasking capabilities, technologically savvy, realistic, are OK with long hours </li></ul></ul><ul><li>Their preferences </li></ul><ul><ul><li>Supervision and structure </li></ul></ul><ul><ul><li>Assistance with handling difficult people issues </li></ul></ul><ul><ul><li>Immediate feedback </li></ul></ul><ul><ul><li>Working with technology </li></ul></ul>

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What’s the competition doing? <ul><li>Next is a few minutes of a segment from the TV show 60 Minutes on Zappos.com and what they’re doing to recruit and retain Gen Y! </li></ul><ul><li>To see the video online, scroll down to </li></ul><ul><li>60 Minutes YouTube Video below. </li></ul>

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How can we compete? <ul><li>Consider your organization </li></ul><ul><ul><li>How could you identify issues to recruitment and retention? </li></ul></ul><ul><ul><li>Can you change existing practices in order to more effectively recruit? </li></ul></ul><ul><ul><li>Can you change processes? </li></ul></ul><ul><ul><li>What could your organization do to more effectively retain the generations? </li></ul></ul>

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We began with our current HR System – Here’s some problems: <ul><li>Too many separate job classifications </li></ul><ul><li>Limited external recruitment </li></ul><ul><li>Application and hiring process is slow complicated and confusing </li></ul><ul><li>Compensation program is not reflective of the labor market and too complex to administer </li></ul><ul><li>Performance management is not tied to business needs, nor is it consistently done </li></ul><ul><li>No statewide workforce plan to address anticipated labor shortages </li></ul>

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And here’s one solution that includes workforce planning: HR Modernization <ul><li>An Automated Integrated System all centered around COMPETENCIES </li></ul><ul><ul><li>Classification and Compensation </li></ul></ul><ul><ul><li>Marketing and Recruitment </li></ul></ul><ul><ul><li>Testing and Selection </li></ul></ul><ul><ul><li>Training and Performance Management </li></ul></ul><ul><ul><li>Workforce Planning </li></ul></ul><ul><ul><li>Auditing </li></ul></ul>

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What is a Competency? <ul><li>A competency is an observable </li></ul><ul><ul><li>Skill </li></ul></ul><ul><ul><li>Demonstration of knowledge </li></ul></ul><ul><ul><li>Ability </li></ul></ul><ul><ul><li>Personal characteristic </li></ul></ul><ul><ul><li>that results in behaviors that are measurable and contributes to more effective job performance. </li></ul></ul>

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Competency Pyramid

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Competencies Ability to maintain composure when responding to hostile questions in sensitive and/or controversial subjects Articulate - ability to adjust to audience level of understanding Thorough knowledge in subject area 2. Make oral presentations Ability to understand / clarify for others Writing style (ability) Vocabulary (knowledge) Grammar skills 1. Write reports &quot;We will pay $XX for you to have these KSA's&quot; &quot;We will pay $XX for you to perform these duties&quot; Focus Is On The Person Focus Is On The Job COMPETENCIES-BASED SYSTEM DUTIES-BASED SYSTEM

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When does HR Mod happen? <ul><li>Last fall we got the team in place. </li></ul><ul><li>First occupational group model rollout will be in 2009. Final rollout 2014. </li></ul>

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Are you ready for the new generation? <ul><li>Are you where you need to be with: </li></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Training and Feedback </li></ul></ul>

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Technology <ul><ul><li>They demand state-of-the art </li></ul></ul><ul><ul><li>They can multi-task better than us, come up with solutions faster than we can </li></ul></ul>

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Flexibility <ul><ul><li>Manage the work, not the people </li></ul></ul><ul><ul><li>Telework, flexible schedules </li></ul></ul><ul><ul><li>Work/life balance is important to them </li></ul></ul>

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Training and Feedback <ul><ul><li>Communicate with the new generation, they expect it </li></ul></ul><ul><ul><li>Train current managers in how to deal with the new generation </li></ul></ul><ul><ul><li>Train the new workers so they are prepared to move up quickly </li></ul></ul>

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Workforce Planning <ul><li>One of the most important things to do to prepare for the new generation is to do workforce planning. </li></ul><ul><ul><li>State just started a new statewide workforce planning program </li></ul></ul><ul><ul><li>Will work with departments and HR Modernization </li></ul></ul><ul><ul><li>Without a plan, we can’t succeed </li></ul></ul>

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Questions? Thank you, Dave Gilb and Julie Lee Department of Personnel Administration