Industry HR Best Practices for managing an aging work forceSchool of Nuclear Knowledge ManagementTrieste, ItalySeptember 2007 Presentation by Ed Boyles
Agenda1 HR Issues2 Aging Work Force3 Access to Best Practices4 Examples of Best Practices15 Observations
HR Issues Playing a Strategic Role Competitive Business FocusRecruiting and In-processing Human Resource Organizations Aging Work ForceLeading Change Management Mergers and Acquisitions Outsourcing low value functions
The Aging Work ForceThe aging nuclear work force is a well recognizedchallenge in the industry.The 2005 work force survey by the Nuclear EnergyInstitute projects approximately 40 percent over 5 yearsfor the U.S. nuclear work force.The aging work force is a major impact on theinternational nuclear industry, however, other factorsshould also be considered, for example: Rapid growth and experience dilution Political decisions to reduce reliance or to phase out nuclear power A combination of aging work force and future growthMany nuclear organization are in various stages of effortsto address the challenge.Many HR organizations are not prepared.
The aging work force is now Southeast Skilled Labor Demand 80% 70% 60% Skilled Labor Union Non- TOTAL Classification Union* 50% Boilermakers and 9,500 12,498 21,998 Skilled Labor (all crafts) Tube Welders 40% Pipefitters and 10,100 28,050 38,150 30% Current estimated total supply Combo Welders Iron Workers 6,500 6,622 13,122 20% Millwrights 7,600 7,385 14,985 10% Electricians 10,300 11,394 21,694 30% 0% 30% Carpenters 25.1% 2,306 24.2% 3,037 5,343 s % 1% gi % Insulators 874 333 1,207 5.7 ts r s s 25% rs a r 2 t es e d 25. rs s ns e s s s s an .ic i% s r is er e n 4.9 to th er er te er an 2er ee e ia ic da ne ne O ra He 24n2 ne e da ne e Heavy Equipment ci in ic ys in in pe di 1,144 16.1% 932 2,076 gi ni di gi g gi n 20% ng ch g 2003 ph Operators n en ch en 25% ch n O en en en ca 13.6% e ca te te th te m al al al e E y al e e ic al ic 15% ce ic le ri t ic ND al nc st rv ic .9% e ctr m c an Total Estimated o m an Sy Nu m ri e se 48,324 70,251 118,575 in e Fe .1% ech 7.0% en Ch 2004 e El Workforce M pe d Ch 10% 5.4% nt el M 4.4% Ex Fi ai 20% 3.0% M 5% 0.3% 0.9% *Non-union estimates reflect an adjustment for workers 0.1% Employees 16 counted in both union and non-union pools 16 0% .7% .6% 13 15% 13 18 23 28 33 38 43 48 53 58 63 67 - - - - - - - - - - + 22 27 32 37 42 47 52 57 62 67 10% Source: Southeast Manpower Tripartite Alliance (SEMTA) survey, 2007 % 30% 7.0 % % % 5.7 5.6 5.4 % 25% % 4.4 % 3.6 %16,000 5% 20% 3.0 2.6 13.1% % % 11.8% 12.6% % 11.4% % % % 0.9 15% 10.5% 10.7% 0.8 9.9% 0.3 0.2 0.2 0.114,000 8.0% 10% 0% 4.3% 4.4% 3.5% 5% + 2 7 2 7 2 7 2 7 2 7 67 -2 -2 -3 -3 -4 -4 -5 -5 -6 -612,000 0% 18 23 28 33 38 43 48 53 58 63 16 20 25 30 35 40 45 50 55 60 65 Age Range -1 -2 -2 -3 -3 -4 -4 -5 -5 -6 + 9 4 9 4 9 4 9 4 9 410,000 8,000 6,000 4,000 2,000 0 18-22 23-27 28-32 33-37 38-42 43-47 48-52 53-57 58-62 63-67 67+
Industry Best PracticesAgencies and support groups such as theIAEA, NEI, and WANO have been activelyengaged in assisting the nuclear industry infinding ways to meet the challenge.Through workshops, technical meetings,taskforce activities, and project teamassignments - many best practices havebeen identified, documented, and madeavailable to the industry.In addition, KM assist visits by IAEA andWANO provide valuable expert resources toNPP’s – including access to best practices.
Sources of Best Practices Nuclear EnergyNetworking InstituteOutside Consultants Workshops and Reports IAEA INIS and NKM Section Assist Visits Portals Tech Docs and Reports Workshops Internal and Reports and external White Papers Benchmarking EPRI APQC Etc.
DefinitionsBenchmarking – The practice of comparing features andperformance of an organization, department or function withthose of other organizations and standards. (IAEA definition) orBenchmarking - The process of identifying, analyzing, andadopting as appropriate the best practices utilized by highperforming organizations that produce superior results (oftenfocused on metric comparisons).“Process Benchmarking," generally higher-level studies thatdemonstrate how high performing organizations accomplishthe specific process and achieve superior results. This can beaccomplished by surveys, workshops, sites visits, etc.Through the process of benchmarking best practices,organizations can compare how the same functions/task areperformed by others thus gaining insight and ideas onchanges or enhancements that can improve theirperformance.
DefinitionsBest Practice – A process or methodology that has beenshown to work well and produce good results and is,therefore, recommended as a model. Also termed GoodPractice (IAEA definition). or“Best Practice Process" are documented processes,approaches or tactics used by successful companies.These companies may not be “Top Decile” in all areas, buthave developed well defined and successful practices inspecific areas.This presentation will cover selected “HR process bestpractices” with focus on the aging work force.These best practices are offered as possible aids that canbe modified or adjusted to fit the requirements of anorganization.Often an organization’s culture, business needs,demographics, and future direction dictate whichprocesses (best practices) work best for specificsituations.
Industry Best Practices Examples of Recent Best PracticesIAEA Technical ReportsEPRI ReportsNEI and INPO Benchmarking Initiatives Recruiting and building pipelines - Exelon Human Capital Planning – Palo Verde NPPTVA New Employee Experience
IAEA Technical Reports“Risk Management of Knowledge Loss in Nuclear Industry Organizations Three Step Process Employee self-assessment Institutional knowledge loss risk managementKnowledge management for nuclearoperating organizationsHandbook of Nuclear KnowledgeManagement
EPRI Report Real-Time Expert Knowledge Acquisition and Transfer - Needs and Technology Assessment (1009581, November, 2004)Toward Self-Elicitation and Automated Knowledge Capture Methods
Knowledge Type drives Method Selection Identify types of knowledge to be elicited from each expertHistorical Job/task Predictions Information Thought Process performance sources Expert Novice Select approach to knowledge elicitation and capture Elicitor interacts with Self-elicitation and Automated knowledge expert capture capture Community of practice
NEI and INPO Benchmarking Initiatives Recruiting and building pipelines - Exelon Human Capital Planning – Palo Verde NPPShared at benchmark meeting “Practical Approaches to Retaining Critical Knowledge”, Atlanta, Georgia – November 2005 and April 2006 (NEI and INPO)
Recruiting and building pipelinesExelon program to recruit operationsand engineering pipeline employees Increased education requirements of new hires Upgraded screening process Established partnerships with universities (both 2 and 4 years) Utilize alumni to build relationships Utilized engineering intern program Established “Bench strength Budgets” to cover cost Began recruitment nation widePilot program was expanded into otherdisciplines
Human Capital Planning Palo Verde NPPAn integrated work force planning processbased on in-depth work force analysis.Considers a variety of work force gain (newhires, movement or promotion anddevelopmental programs) and loss factors(retirement, movement, non-retirementattrition).In the past staffing needs projected basedon individual department initiatives -assumptions varied - employee migrationimpacts were not fully considered - difficultto integrate the findings into a coherentplan
Human Capital PlanningIntegrated site-wide approachBuilt around talent, not departmentsConsistent assumptions for losses andneedsCalculates 6 workforce dynamics 3 different types of work group losses 3 different types of work group gains
Other Examples College of Experts – Areva Knowledge Elicitation using Concept Maps – Exelon Phased Retirement – Southern California EdisonShared at benchmark meeting “Practical Approaches to Retaining Critical Knowledge”, Atlanta, Georgia – November 2005 and April 2006 (NEI and INPO)
New Employee Experience at TVAA new process to orient new employees to TVA andtheir specific business unitProcess includes introduction to TVA culture model(Star 7)Based on benchmarking best-in-class companiesUtilized a private consulting firm to facilitate processModified the recommended best practices to best fitTVA culture and based on feedback from newemployees
New Employee Experience at TVA GoalsImprove Services for new employees & managers related to pre-employment screening, hire-in, orientation.Reduce Costs Reduce overall line HR time spent onadministrative/transaction work to enablemore time on other high-value activities. Supports HR and enterprise goals
New Employee Experience at TVA BenefitsCombined hiring, orientation and STAR 7 experience results in annual costsavings of approximately $300,000.Centralized and standardized hiring process yields efficiency gains. Ensures new employees have passed security clearance and medicalexams prior to hire and they understand key policies and practices.Productivity ratios will increase due to higher and sustained levels ofemployee engagement.Manager receives “ready-to-work/train” employee(s). New employees will be fully equipped to be productive first day on thejob.Alignment with “Best in Class” to become “Employer of Choice.”
ObservationsA wealth of information exist related toHuman Resource Process Best Practices formanaging the aging work force.Agencies and institutes such as IAEA,INPO/WANO, NEI, and EPRI are activelyengaged to support the nuclear industry.The nuclear industry has been progressivein addressing the demographic challengeand in sharing best practices.While the aging work force impacts a largesegment of the industry, other factors (e.g.,rapid growth, etc.) play a role and should beconsidered.
ObservationsMost best practices can and should bemodified or adapted to meet the needs of aspecific organization or department.Organizations should consider businessneeds, culture, demographics and futuredirection when implementing change.Now is the time for HR organization toprepare.
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