Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems (2010)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

64 4.0 Retention Overview This section provides practical recommendations on steps that transit systems may take to enhance retention, especially those systems facing budget constraints that may restrict them from providing monetary increases to managers. Voluntary turnover and turnover intentions can be predicted by factors such as job satisfac- tion, organizational commitment (Cooper-Hakim and Viswesvaran 2005), and a person’s per- ceived “fit” with the culture of the organization (Cook and Lawrie 2004). The effectiveness of recruitment, training, and development practices is linked to future satisfaction and commit- ment to the job. For example, if an individual is brought into the organization who does not “fit” well with the culture of the organization, that individual is more likely to leave that job than someone who “fits” well with the culture. In essence, retention is heavily influenced by the human resource management practices that were part of the selection and development of the managers. Systems that have retention challenges often also face challenges in recruiting for vacant mana- gerial positions, thus recruitment and retention are interlinked. Figure 7 in Appendix A provides additional examples from ICF International’s data files that highlight effective practices currently being utilized by transportation agencies (state DOTs) and other industries. These practices were identified in previous or ongoing studies and are incorporated as additional resources for transit systems looking to improve their human resource management practices. Specific retention strategic recommendations are provided in the following tables: • 4.1: Offer Competitive Benefits • 4.2: Offer Flexible Work Schedules • 4.3: Implement a Rewards Program for High Performers • 4.4: Spend Time Up Front Hiring High Quality Managers • 4.5: Establish Person-Organization Fit • 4.6: Provide Training and Development Opportunities • 4.7: Engage Managers in Developing and Supporting the Mission • 4.8: Build a Culture of Ownership • 4.9: Create a Positive Organizational Culture C H A P T E R 4 Retention Recommendations

Table 4.1: Offer Competitive Benefits Description: Transit systems should offer competitive benefits to help retain managers. This is especially important since transit systems may be unable to pay managers and employees as much as other government, private sector, and transportation industry competitors can pay. Offering competitive benefits can help transit systems stand out among competitors, which could lead to better retention of managers. How to Implement this Recommendation • Transit systems acknowledge they offer lower salaries compared to competitors. They often work to diminish the pay disparity by offering competitive benefits. • A market compensation or salary survey can be used to identify which benefits local and industry competitors provide their employees. • Conducting a benefits needs assessment to determine the needs of employees and the bene- fits they value, those they use more and less frequently, and those they wish were offered can give transit systems insight into what employees think of the current benefits package. The adoption of employee benefits and work-life practices should not be based upon a “band- wagon” approach of simply modeling what other systems are providing. Instead, transit sys- tems need to identify what benefits and work-life practices would be most beneficial to their employees in order to ensure those benefits have the greatest impact. • Transit systems can then use the information learned about competitors’ benefits packages and employee opinions about current benefits to tailor their own benefits plans. For example: – Implement benefits that competitors are not currently providing in order to stand out from the crowd (e.g., part-time benefits, personal leave). – Offer more generous benefits than competitors (e.g., 80% employer paid health insurance, rather than the standard 75% in a local area). – Realign benefits to include only those that employees consider most important or most use- ful. This ensures funds are allocated in the most appropriate way. – Transit systems can gather information about employee benefits packages from state gov- ernment agencies. Government agencies often offer generous retirement, leave, and insur- ance benefits. Examples of Innovative and Effective Transit Practices • Delmarva Transit. Delmarva Transit believes its low manager turnover rate is due to its gen- erous state employee equivalent benefits package. One unique benefit is the system’s 401(k) plan. The system automatically contributes 3% of an employee’s salary, and if the employee elects to contribute 2%, the system will contribute an additional 2%. In addition, Delmarva Transit offers up to four weeks of vacation and sometimes an additional week of vacation is given as a bonus. • Palace Transit. Palace Transit’s benefits are some of the best in the area and this helps increase retention. Because they are part of a municipality, the system can participate in the South Dakota retirement system which is viewed as more stable and secure than 401(k) plans. Palace Transit also offers 100% paid health and dental insurance. Further, the system increases the vacation and sick leave as employees earn tenure (e.g., 80 hours up to 5 years, 120 hours after 12 years, and 160 hours after 15 years) which encourages retention. Retention Recommendations 65 (continued on next page)

• Virginia Regional Transit. VRT credits its retention success to its benefits package. Health and dental insurance are 80% paid by the system for the employee, and 75% paid for a fam- ily plan. Paid vacation leave increases with tenure (e.g., 1 week up to 5 years, 2 weeks after 5 years) which promotes retention. The system also offers paid bereavement leave and paid dis- cretionary personal leave. • Pee Dee Regional Transportation Authority. PDRTA considers its benefits package the key to its high retention levels. The system pays for employees’ health, dental, and vision insur- ance for standard plans. Employees can elect to enroll in other plans, but they must pay the difference. Pee Dee also has an escalating sick and vacation leave policy based on years of ser- vice, in addition to one paid personal day per year. • OCCK, Inc. OCCK provides benefits to its part-time staff. Employees that work more than 20 hours per week can enroll in the state retirement plan. In addition, with only a minimum of 10 hours per week worked, employees are offered part-time leave benefits. • Havasu Area Transit. Havasu Area Transit’s service schedules require its managers to be avail- able 6 days per week. The system mitigates this “on call” requirement by paying supervisors for 2 hours when they are in on call status, regardless of whether they are called, and for 4 hours when they are required to work while on call. • Coast Transit Authority. In addition to 100% employer paid health, dental, and life insurance, and seven holidays per year, Coast Transit offers its employees 4 hours of sick leave per month. Further, the system buys back unused sick leave from employees at the end of each year. Employ- ees can trade in three sick days for two days of pay. Coast Transit has found that this minimizes people taking sick time and most employees take advantage of the buy-back program. Potential Barriers Potential Facilitators 66 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems Table 4.1: Offer Competitive Benefits (Continued) • Connections with other local organizations or transit agencies can help facilitate the col- lection of benefits data. • Management that is willing to invest time in making sure the system is offering benefits that are competitive. • Employees who feel empowered and free to voice their opinions about their benefits package. • Work-life consultants provide insight into the types of benefits programs available and the return-on-investment for those pro- grams. These consultants can help systems build a business case for their offerings. • The time and resources needed to conduct a compensation survey or employee survey about benefits may be limited. • Transit systems may not be aware of the var- ious types of benefit options and programs available. • Limited funds do not allow systems to offer competitive benefits. • Transit benefits plans that are strictly tied to state plans. Alternative Approach to Practice Alternative Approach 1: Search job advertisements for similar jobs within transit or similar industries for the types of benefits offered employees and managers. Job ads frequently specify the range of benefits they provide as a recruitment strategy. Transit systems can use this data to benchmark the type and amount of benefits they could provide to help retain their employees and managers.

Impact of the Practice • Research recommends competitive benefit packages along with the development of materials that describe benefits to encourage employee retention (TCRP Report 77 2002). Step progres- sion of accruing benefits such as health insurance and paid vacation and sick leave over time also creates incentive to stay with the transit system (KFH Group, Inc. 2008). Basic Steps for Transit Implementation of this Strategic Recommendation 1. Conduct a benefits survey to identify what benefits local and industry competitors provide their employees. 2. Survey employees as to what benefits they most value. 3. Tailor transit system benefit package to enhance the ability to meet competitor offerings and identified employee desires. 4. Utilize benefit packages as a recruitment and retention tool. Retention Recommendations 67

Table 4.2: Offer Flexible Work Schedules Description: Flexible work schedules (also called alternative work schedules) are an alternative to the typical 8-5, 40 hour work week. Flexible schedules allow employees to vary their work start and end times, or work more hours certain days of the week in order to have an extra day off. Offering flexible work schedules is an important retention technique and can also encourage potential applicants to apply for jobs. Implementing flexible schedules is often very low cost, so it is a tool available to many transit agencies. How to Implement this Recommendation • Before deciding how flexible a work schedule a transit system can allow, the system should think about how much flexibility can be afforded. Some questions to consider are: – What are normal hours of operation? Do typical work hours ever change (e.g., weekends, seasonally)? – How many managers and employees should work during normal hours of operation? – When are peak hours of operation? – Who needs to be available during peak hours? – Which positions may be best suited for a flexible work arrangement? • Based on the transit system’s flexibility, determine what types of flexible work schedules best fit the system’s needs. The following are examples of flexible schedules: – Flextime—Employees are given control of their daily schedule within a 40 hour work week. Flextime is often limited by “core hours” and flexible hours. Core hours are times that everyone must work (e.g., 10 to 2). These are usually the busiest hours for an organization, and flexible hours are at the start and end of the work day (e.g., 6 to 10 and 2 to 6). – Variable Day Schedule—Employees can choose the number of hours they work each day, but must work 40 hours per week. – Variable Week Schedule—Employees must work 80 hours per biweekly period, but choose the number of hours they work each day. – Compressed Work Schedule—Employees work fewer, but longer work days. Two common compressed schedules are:  4/40 Schedule—Employees work four 10-hour days per week.  9/80 Schedule—Nine-hour days are worked Monday through Thursday, 8 hours worked on Friday, with Friday off every two weeks. • Both administrators and employees must agree on the flexible work arrangement. For exam- ple, whether employees can set their own schedule day-to-day or need prior approval from their manager. It is important to make sure the policy is clear. • To keep discussions about flexible work arrangements focused, it is recommended that tran- sit systems have managers engage in a self assessment of their own readiness for this type of arrangement. For example, the manager should be asked to evaluate whether he/she is com- fortable with lack of structure. • Since management and employees may work slightly differing schedules, it may be beneficial to implement a method for recording hours worked. • Periodically review how the flexible schedule impacts business, services, and employee satis- faction, performance, and productivity. – Job sharing (where two individuals work part-time to substitute for one full-time staff) and periodic telecommuting are other ways to provide flexibility to staff. The key is to ensure the flexible arrangement selected is valued by the manager and helpful to him/her in meet- ing personal demands that might otherwise conflict with work performance. 68 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems

Examples of Innovative and Effective Transit Practices • Souris Basin Transportation. Souris Basin has found that employing a flexible work sched- ule policy, including a 4/40 schedule compressed work week, has helped the transit system alleviate its retention challenges. • Coast Transit Authority. At Coast Transit, managers are not required to work a set amount of hours. As long as managers perform well and get their job done, it is not a major concern how many hours they work any given week. The system discourages managers from working more than 40 hours per week on an ongoing basis. Coast Transit works with people to ensure that they can balance work and personal responsibilities. For example, the system often allows people time off to visit their children’s schools, go to events with their children, or take care of a sick spouse. • Jefferson Transit. Jefferson Transit offers work flexibility to exempt positions. Exempt employees and managers can set their own schedule with the General Manager’s approval. The transit system has found that this arrangement is mostly self-regulating with managers stick- ing to the schedule they create. • Cache Valley Transit District. Cache Valley offers flexible scheduling to all employees. With managers, the system needs to make sure they meet their goals but still remain flexible. For instance, if managers need to work 12 hour days for three weeks, they may be able to work only 6 hour days for the next two weeks. For other positions such as drivers, they can take time off when needed with no consequence, as long as they can find a replacement to work for them. • University of Massachusetts Transit. UMass Transit’s peak service period is during the fall and spring semesters. During the summer, work is reduced for managers and more flexibility is allowed. • One focus group participant from a local government agency stated that her organization is beginning to look at providing alternative work schedules in order to remain a viable and com- petitive employer. Potential Barriers Potential Facilitators Retention Recommendations 69 • Transit systems with current family friendly policies are likely to see the benefit in offer- ing flexible work schedules. • Managers and employees who find it difficult to balance their work and personal responsi- bilities and could benefit from work flexibil- ity will probably support implementing flex- ible work schedules. • Transit systems do not have the manpower to implement a flexible work schedule for employees and managers. • Upper management may be unwilling to allow employees to plan their own work schedules. Alternative Approaches to Practice Alternative Approach 1: Instead of implementing a flexible work schedule throughout the year, transit agencies that are unable to do so may be able to offer flexible schedules during certain non-peak periods. Alternative Approach 2: Alternatively, rather than implementing a full flexible work schedule, transit agencies could be more flexible when personal situations, events, or emergencies come up for managers and employees on a case-by-case basis. For example, if a manager needs to come in a few hours late in order to visit a doctor, perhaps the manager could work those hours at the end of the day. (continued on next page)

Alternative Approach 3: Administrators and management can set boundaries for the flexible work schedules. Although these programs could be very liberal and self-regulated, structure and accountability can certainly be built into flexible schedules to ensure that the agencies have ample coverage and that employees work when expected. Impact of the Practice • Flexible work schedules can have many benefits for employees and employers. Highlighting the flexible schedule in recruitment materials can also motivate potential applicants to apply for a position (KFH Group, Inc. 2008). Basic Steps for Transit Implementation of this Strategic Recommendation 1. Determine how flexible schedules for transit system managers and supervisors can realisti- cally be offered. 2. Determine which flexible work schedules best fit both transit system needs and individual manager needs. 3. Implement a flexible schedule, which may include flextime, variable day schedules, variable week schedules and/or compressed work schedules. 4. Periodically review how flexible schedules impact transit system effectiveness and employee satisfaction, performance, and productivity. 70 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems Table 4.2: Offer Flexible Work Schedules (Continued)

Table 4.3: Implement a Rewards Program for High Performers Description: Recognizing the accomplishments of high performing managers and employees with rewards and public acknowledgment can increase retention. Many transit systems use pro- grams that recognize and reward employees for longevity in the form of increased wages, bonuses, or priority in selecting work or vacation schedules, choosing assignments, and choos- ing days off (e.g., Cook and Lawrie 2004). Some transit systems also implement Employee of the Month/Year and Safety and Customer Service awards programs (KFH Group, Inc. 2008). How to Implement this Recommendation There are four key steps to implementing a transit system performance based rewards program (KFH Group 2008): 1. Goals for reward programs must be realistic and achievable. • System administrators must determine what is realistic for their system, managers, and staff. • Consider current performance levels and barriers to achieving goals. 2. The process must be fair. • Consider implementing separate goals for managers and employees. • Ensure that all participants know what the goals are and how they can meet goals. • All measures should be objective with quantifiable outcomes. • Individually based rewards, rather than team rewards, are important for retaining high per- formers. 3. Rewards should be distributed in a timely manner. 4. Recognition should be public. • Individual reward amounts do not have to be announced, but instead agencies could announce the number or percentage of goals met or simply the names of top performers. Examples of Innovative and Effective Transit Practices • Virginia Regional Transit. VRT developed an innovative “Road to Reward Program.” Each year VRT’s managers determine their 15 biggest service problems and then identify corrective measures for each problem with point values for each corrective action taken. All managers and employees are provided with the year’s measures so they know how they can earn points. An individual meets with his/her supervisor to review and discuss the points awarded. The point total is multiplied by the year’s bonus dollar figure (e.g., $4.00). This figure is then mul- tiplied by the employee’s years of service (up to five years). • OATS, Inc. OATS uses a bonus rewards program for managers that is linked to certifications. Managers who obtain/keep a job-related certification are eligible for an annual bonus. Transit- specific managers can become Certified Community Transit Managers while HR professionals can earn their certification from the Society for Human Resource Management. • Mass Transportation Authority. MTA has used its rewards program for 25 years. Supervi- sors are given money to immediately reward their employees for good performance (e.g., $25 gift card, dinner for two). The system also has a White Glove Program that recognizes employees for keeping their vehicles clean. The key success in these programs is immediate recognition for good performance in front of an employee’s peers. • Golden Empire Transit. Golden Empire Transit has implemented a Partners Program incen- tive plan. If employees meet all criteria in the Program (e.g., attendance record, complaints, number of accidents), their names are entered into a pool and they may be selected to win prizes. Retention Recommendations 71 (continued on next page)

Potential Barriers Potential Facilitators 72 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems • Gain acceptance from transit system admin- istrators and involve them in the process. • Earn buy-in from program participants by ensuring the process is fair and that all re- wards earned are received. • Transit systems may not have the funds available to reward high performers with cash bonuses. • Highly structured and multi-point measured programs may be too cumbersome for some systems given time and staffing restraints. Alternative Approaches to Practice Alternative Approach 1: If cash bonuses are not feasible for a transit system, other rewards may be used. For instance, instead of a dollar figure, hours of personal leave could be substituted in a rewards program. Alternative Approach 2: To start a rewards program, or if resources to implement an extensive program are restricted, limit the number of program measures to those that are most important for the following year (e.g., reducing the number of preventable accidents by 20% in their region, completing all required system paperwork in an accurate and timely manner). The number of measures can be increased from year to year; however, do not change the measures during an evaluation period. Impact of the Practice • Outwardly recognizing employees who perform at a high level can increase employee retention (KFH Group, Inc. 2008). Furthermore, research has shown that individually-based merit reward systems are important for retaining high performers while collective reward programs (i.e., team incentives) lead to turnover among high performers (Griffeth, Hom, and Gaertner 2000). Basic Steps for Transit Implementation of this Strategic Recommendation 1. Establish a rewards program that is realistic and accomplishable. 2. Ensure the rewards program is implemented with a high level of integrity. 3. Distribute rewards on time and in a public manner. Table 4.3: Implement a Rewards Program for High Performers (Continued)

Table 4.4: Spend Time Up Front Hiring High Quality Managers Description: Focusing efforts on hiring well qualified managers can ultimately increase manager retention. How to Implement this Recommendation • Hiring a manager that does not have the knowledge, skills, or organizational fit to succeed within the system could be more detrimental to a transit system than leaving the position vacant until a qualified applicant emerges. • Ensure that hiring assessments are job-relevant, reliable, and valid. When assessments mea- sure their intended applicant characteristics (the competencies needed to perform the job), systems can be confident that the assessments will distinguish among applicants to determine which are more qualified for the position and will be the better performers. • Use behavioral competencies. To predict job performance, organizations often use behavioral competencies. These competencies are developed through behavioral interviews that include a discussion of critical incidents and decision making processes employed by managers (Dainty, Cheng, and Moore 2005). Team leadership and self-control were the two competencies that best predicted potential for superior performance of managers (Dainty, Cheng, and Moore 2005). • Use RJPs. During the recruitment process, RJPs provide applicants with an accurate descrip- tion of the positive and negative aspects of the job. Providing candidates with a preview will deter some potential applicants from applying, but RJPs also reduce turnover for applicants who receive them and accept a job offer (Reinach and Viale 2007). (See Appendix A—Figure 1 for a framework to use in selecting management tools related to the recruitment and retention process.) Examples of Innovative and Effective Transit Practices • OATS, Inc. OATS believes that managerial success is mostly determined up front in the recruitment process. The system said that transit systems must hire the right person by look- ing closely at applications and carefully interviewing candidates. • Atomic City Transit. Atomic City Transit believes that one of its greatest lessons learned is that systems must do their work up front and bring on highly qualified people. To this tran- sit system, recruitment and selection is one of the critical elements to keeping turnover low. Atomic City Transit stated that systems should never be in a hurry to recruit managers, and they shouldn’t settle on a candidate just to fill the position. They recognize that systems with vacant positions are under a lot of stress to fill them, but that it is a mistake to settle on a can- didate solely to relieve stress within the system. • Pee Dee Regional Transportation Authority. PDRTA stated that it is critical that transit sys- tems do their homework up front in the recruitment and selection process. Interviewing effec- tively and conducting in-depth background checks are two key pieces to hiring people who will stay with the system. The Authority also stated that the price systems pay for hiring the wrong person is long-term and ultimately detrimental to the system’s management team and the organizational culture. • South Lane Wheels also believes that the time invested in the recruitment process is very valu- able. The system believes that the more it can build their team’s capacity, the more successful the system will be. Retention Recommendations 73 (continued on next page)

Examples of Innovative and Effective Non-Transit Practices • One benchmarking participant, with a private sector company, indicated at her company one of the senior vice presidents (VPs) is so confident that they have recruited the managers with the right skill sets that the VP developed a 24-hour protocol that when someone says they are leaving the company, the company engages that manager in a deep conversation about why he/she is leaving and presents an immediate counteroffer. The success rate for this program (i.e., workers staying) is about 70%. Potential Barriers Potential Facilitators 74 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems Table 4.4: Spend Time Up Front Hiring High Quality Managers (Continued) • Systems and administrators willing to put the time and effort into hiring the right man- agerial candidate. • An immediate demand to fill a position in order to alleviate stress within the transit system. Alternative Approach to Practice Alternative Approach 1: If a transit system is unsure whether their best candidate for a mana- gerial or supervisory position is the right person for the job, they could consider hiring the can- didate on a trial or temporary basis. The length of the trial period, as well as goals to accomplish within the timeframe, should be established in advance. At the end of the period, the candidate and the transit system can determine future employment opportunities. Impact of the Practice • As a result of focusing efforts on hiring the right person for the job rather than hiring a can- didate just to fill the position, transit systems often see higher retention. Basic Steps for Transit Implementation of this Strategic Recommendation 1. If at all possible, do not settle for an individual with less than desired qualifications when fill- ing manager and supervisor positions. 2. Ensure that hiring assessments are job relevant, reliable, and valid. 3. Use behavioral competencies to predict managerial performance. 4. Use realistic job previews to provide applicants with an accurate description of the positive and negative aspects of the job.

Table 4.5: Establish Person-Organization Fit Description: Person-organization fit (P-O fit) is defined as the compatibility between an employee’s preferences for organizational culture and the culture of the organization. How to Implement this Recommendation • Evaluate whether low managerial retention is a result of a mismatch between the transit system’s culture and the personality of the managers leaving. (TCRP Synthesis 47 2003) – If managers tend to be introverted and work better independently, the sudden implemen- tation of teams and committees and requirements for managers to deliver conference pre- sentations may frustrate those managers and prompt them to leave the system. – If managers and employees tend to engage in social activities outside of work and are very socially inclined at work, transit systems could consider implementing lunchtime meetings where staff can discuss personal matters as well as business ones. • Consider organization and job fit in the recruitment process. A research study found that appli- cants were more attracted to jobs that had a website that provided interactive information about the extent to which the person “fit” with the organization (Breaugh 2008). – Recruiters could include descriptions of the “ideal candidate’s personality” in their recruit- ment materials that match the job requirements so applicants with the best person-job or person-organization fit will pursue the job (Johnson et al. 2008). For example, when filling a management position involving high levels of customer service, the transit system could advertise the “ideal candidate” as someone who enjoys interacting with the public and help- ing people solve problems. – The literature indicates there are 10 workplace attractors that influence an individual’s decision to take a job as well as remain with the organization. These attractors can influ- ence satisfaction with work and should be described during the recruitment process to the extent possible: 1) financial, physical safety, and position security; 2) location; 3) inter- actions and opportunity to build social relations with coworkers; 4) appreciation and acknowledgement of work performed; 5) individual’s need to be engaged in meaningful work; 6) extent to which skills and interests align with work requirements; 7) perceived work flexibility; 8) challenging activities and training; 9) autonomy; and 10) involvement in activities that allow person to create new things (Amundson, 2007). Transit systems should, as is reasonable and practical, emphasize these attractors in recruitment materials so potential applicants can determine their fit with the job and the transit system. Individ- uals who perceive a good fit will likely apply, while those that do not perceive a fit will likely not apply. • Generational differences and organizational fit. – Younger workers typically want autonomy, responsibility, mentorship, recognition, and a deeper sense of community at work (Amundson 2007; Izzo and Withers 2001). – Older workers often want to stay involved in work activities longer but also want to have a mix of leisure activities (Amundson 2007). – Transit systems seeking younger or older applicants could tailor recruitment materials to these applicant pools. The job ads, postings, and other materials should discuss the orga- nizational fit issues that are important to these groups. Retention Recommendations 75 (continued on next page)

• Evaluate the culture of the transit system. – If a system is experiencing a large amount of turnover, leaders could evaluate the system’s culture to assess how it matches with current employees, former employees, and applicants. – Systems could identify any mismatch between employee expectations and transit system expectations and try to create better organizational fits. For example, if a transit system is losing many individuals who wanted more opportunities for autonomy and greater respon- sibility, the system could consider how it can match employee preferences for autonomy and amount of responsibility with what it offers employees and applicants. Examples of Innovative and Effective Transit Practices • South Lane Wheels. South Lane Wheels includes not-for-profit experience as one of the crite- ria it uses to select managers. The system believes a for-profit mentality is very different from a not-for-profit mentality. South Lane Wheels hires managers who have not-for-profit experi- ence because they believe it is difficult to switch from a for-profit to a not-for-profit workplace. • Golden Empire Transit. Golden Empire Transit credits its manager retention to the sense of support and sense of family within the system. Their corporate culture is supportive and embraces people, which makes them want to stay. Examples of Innovative and Effective Non-Transit Practices • A benchmarking study participant from the transportation industry uses exit surveys to learn why individuals voluntarily leave the organization. Exit surveys allow systems to identify spe- cific problems or trends in turnover that may be related to P-O fit. Systems can use this data to take action to resolve those problems (e.g., making applicants fully aware of the system’s culture via realistic job previews). • The U.S. freight rail industry has begun posting information about jobs and the culture of the industry on their websites; prospective applicants are referred to a railroad’s website and job seekers can find information about available jobs on a railroad’s website, job placement sites, and railroad-related sites (Reinach and Viale 2007). • Many utility companies are now posting short videos on their website that include an employee speaking about his/her job, likes and dislikes of the job, the culture of the organization, and what it takes to perform well in the job. Potential Barriers Potential Facilitators 76 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems Table 4.5: Establish Person-Organization Fit (Continued) • Administrators and management who are open to considering P-O fit as a driver to their recruitment strategy and ultimately retention strategy. • Transit systems not willing to change in order to increase retention of current employees and to attract potential applicants. Alternative Approaches to Practice Alternative Approach 1: Organizations do not necessarily have to change in order to increase P-O fit. Instead, systems can focus on educating applicants about the culture that can be expected when working for the transit system.

Alternative Approach 2: Once employees are hired, it is also important to stay true to claims about the system. If a system states that it is family-friendly and offers flexible schedules, but then employees have a hard time requesting time off for family events, the employee will likely become disillusioned and no longer perceive a strong P-O fit with the system. Impact of the Practice • Recruitment strategies that consider a person’s personality fit with the organization are linked to reduced turnover (Johnson et al. 2008). Basic Steps for Transit Implementation of this Strategic Recommendation 1. Evaluate whether high managerial turnover is a result of a mismatch between the transit sys- tem’s culture and the personality of the managers leaving. 2. Consider organization and job fit in the recruitment process. 3. Evaluate the culture of the transit system including generational differences when identifying strategies to increase managerial retention. Retention Recommendations 77

Table 4.6: Provide Training and Development Opportunities Description: Offering employees and managers training and development opportunities com- municates to the individual that his/her professional growth and needs are important to the organization; thus, these offerings can positively impact retention. How to Implement this Recommendation Simply providing training and development opportunities will not ensure retention. Transit sys- tems must make sure the opportunities are relevant to employees’ career needs and career goals to keep managers’ interest and ensure that training is of use. • Provide Training and Development Opportunities that Interest Managers. Transit systems should consider what types of training and development opportunities managers would like to participate in when choosing managerial courses. General leadership skills may be of inter- est to some managers, while others may find more in-depth transit skills useful for their careers. If interesting and useful courses are offered to managers in addition to any required training, they will view the transit system as one that “cares” about its staff and may be more inclined to stay with the system. • View training as a business strategy and focus more on interventions for 1) connecting employee learning to business goals, 2) improving employee performance, and 3) helping train- ers acquire new skills and capabilities needed to fulfill this changing role (TCRP RRD 88 2008). • Use a Variety of Training and Development Approaches. Research suggests that successful orga- nizations use a range of techniques for training to keep training fresh, engaging, and to meet the needs of different learning styles (e.g., job rotation, on-the-job training, on-the-job coaching, special projects and assignments, self-directed learning, mentor relationships, and electronic learning technologies) (Special Report 275 2003). Keeping training new, exciting, and engaging will prevent managers from growing bored with training and deflating the training’s value. • Tuition Reimbursement. With the system’s approval, managers can choose the courses that are of interest to them and can help them advance in their career. • Emphasize Professional Development for Managers at All Levels. Professional development is an essential element of manager development and it can take on many forms. Formally recog- nizing the importance of training within a transit system is critical to training success and allows managers to see the importance of training in their own career development. – Training must be well aligned with the work requirements of the job and the mission and goals of the system. Transit systems should create training tracks that emphasize technical and per- sonal effectiveness competencies that need to be acquired through training. Specific courses should be identified for each of the training tracks. The training tracks should be linked to career advancement opportunities in order to make the training useful to the managers. Examples of Innovative and Effective Transit Practices • Delmarva Transit. Delmarva Transit provides its employees and managers with numerous conference and training opportunities each year. Opportunities include national conferences and Maryland state-run transportation training, among others. The system believes that these opportunities have a positive effect on retention. • Capital Transit. Capital Transit believes that one major factor in the retention of managers is its access to training resources. With funding from RTAP, Capital Transit is able to provide its managers and employees with many external training and development opportunities that facilitate advancement within the system and ultimately retention. 78 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems

• South Lane Wheels. South Lane Wheels believes that its training and support plan (e.g., inter- vention training) is vital to retaining employees and managers. The more the system trains and supports its personnel, the more they can build the capacity of their team. The system believes that its access to training opportunities is important for retention because they do not offer many benefits to employees. • The Toronto Transit Commission (TTC) develops staff from within the organization. For example, a bus operator who is ready to move into supervision must participate in an inter- nal 6-week training course—the Route Supervisor Program—before assuming the new responsibilities (TCRP RRD 88 2008). Examples of Innovative and Effective Non-Transit Practices • Focus group participants from the package delivery and utilities industries discovered that development programs and more transparent promote-from-within strategies were needed to retain younger workers, a group that had traditionally been difficult to retain. Some of these developmental techniques include identifying individual development needs; individual career paths that lay out career goals; and job rotation opportunities for recent college graduates. • Nearly all of the focus group participants offer job rotation assignments. Whether imple- mented for recent college graduates or upper level staff interested in management positions, job rotations allow individuals to move in and out of departments and/or positions to grow their leadership or technical skills base. Job rotations are a challenge that many employees find attractive because it means that their job responsibilities are constantly changing and they are gaining experience in different positions and/or departments. Potential Barriers Potential Facilitators Retention Recommendations 79 • Administrators who recognize that offering training and development opportunities of value to managers encourages retention. • Current training and development programs are not well received by employees, thus they are avoided. • The relationship between training and pro- fessional growth is not evident. • Training that must be done in a manager’s personal time, rather than during work hours. Alternative Approach to Practice Alternative Approach 1: Determine which training and development programs would be most beneficial and interesting to managers to encourage attendance. Providing training that man- agers can use and that will not bore them is key to participation and to perceiving the opportu- nity as valuable. Impact of the Practice • Providing training and development opportunities for employees and managers will not only make employees more knowledgeable, skilled, and prepared to advance in their careers, but it can also lead to retention. (continued on next page)

Basic Steps for Transit Implementation of this Strategic Recommendation 1. Provide training and development opportunities that interest managers. 2. Use a variety of training and development techniques to keep training fresh, engaging, and meeting the needs of different learning styles. 3. Emphasize professional development for managers and supervisors for all levels of the organ- ization. 4. Align training with the work requirements of the job and the mission and goals of the transit system. 80 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems Table 4.6: Provide Training and Development Opportunities (Continued)

Table 4.7: Engage Managers in Developing and Supporting the Mission Description: Gaining employee buy-in to the transit system culture and the system’s mission helps to motivate employees and managers and can increase retention. By having all manage- ment staff participate in the development of the system’s mission and values and in identifying ways to support the mission and values, the system will help managers feel they are more a part of the organization, thus increasing their organizational commitment. How to Implement this Recommendation • Encourage commitment to the transit system and its mission by gaining buy-in from managers early in their tenure. Research has found a curvilinear relationship between company tenure and turnover such that turnover rates are high in employees’ first year, higher in years two and three, and then steadily decrease the longer an employee stays at an organization (Hom, et al. 2008). • Implement a formal new employee orientation program, especially at systems that experience high turnover (Cook and Lawrie 2004). Orientation programs provide employees with infor- mation about benefits, job requirement and expectations, organizational policies, working conditions, and safety, and can help employees develop a sense of belonging and buy-in to the system’s culture and mission (Cook and Lawrie, 2004). • Transit systems that do not have established mission, vision, or value statements or a strate- gic plan with short- and long-term goals and objectives should engage all managers in their development. Perceived voice in the development process gives managers a sense of owner- ship in the direction of the organization. • Encourage continued commitment to the transit system and its mission throughout each manager’s tenure. • Create a transit system culture that fosters high morale, ongoing employee learning and growth, and positive and supportive relationships between employees and management. • Make the transit system’s mission, vision, and values a part of everyday internal activities and external service delivery. • Meet with transit staff at regular intervals to discuss ways to make the system’s mission, vision and values a part of daily work of and the foundation of interactions with customers. • Link adherence to the transit system’s mission, vision, and values to managers’ performance appraisals. Examples of Innovative and Effective Transit Practices • Altoona Metro Transit. AMTRAN considers its organizational culture one of its biggest retention factors. The system creates an organizational environment that is supportive of its employees. Specifically, AMTRAN provides feedback on performance, respects its employees’ individuality, does not practice top-down management, and gives employees the opportunity to do something that matters consistent with the system’s mission, vision, and values. • OATS, Inc. OATS is a large and geographically dispersed system that works hard to develop mission consciousness and uses an internal communications plan to obtain mission buy-in and commitment to the mission. The communications plan includes: an employee-only web- site with access to policy information and forms; a news section on the website that provides information on company happenings; weekly emails including customer service tips to all managerial and supervisory staff to make them feel connected; and constant information for management and front-line staff about the reasons behind the decisions that are made. Retention Recommendations 81 (continued on next page)

• Coast Transit Authority. To retain managers and other staff, Coast Transit concentrates on employee morale. The system encourages managers to listen to employees and work with them to resolve conflicts and problems. • Transfort. Transfort believes that the work managers do, how they lead, and the example they set helps their system retain people. Manager buy-in to the mission in turn creates employee buy-in to the mission, and ultimately retention. Examples of Innovative and Effective Non-Transit Practices • One benchmarking participant, representing a utilities company, indicated that the company conducts a 360-degree (all employees respond) climate assessment. This assessment is con- ducted at the team level and it informs managers of the perceptions of their teams and lets managers know how well their team aligns with the larger goals of the organization by iden- tifying strengths and weaknesses in how the manager manages the team. Potential Barriers Potential Facilitators 82 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems Table 4.7: Engage Managers in Developing and Supporting the Mission (Continued) • Current employees and managers who have organizational commitment can inspire newer employees. • Consultants who assist transit management in the strategic planning process. • Lack of emphasis on transit system mission, vision, and values. • Lack of employee and manager commit- ment to the system. • Failure to gather manager input into mis- sion vision and value development. • Lack of a strategic plan with identified goals and objectives. Alternative Approaches to Practice Alternative Approach 1: If a system does not currently promote its mission, vision, and values, it can begin to do so. Revisit the mission statement, identify system vision and values, and have managers and employees discuss the ways they can incorporate mission, vision, and values into their daily activities and the service they provide transit customers. Alternative Approach 2: Consider instituting a system bulletin board, newsletter, website, or web blog to keep employees informed about the transit system and to find ways to make the sys- tem’s mission, vision and values a part of everyday work activity. Make sure that communica- tions are updated frequently to keep employees’ interest. Impact of the Practice • Research suggests that employers should focus on maintaining and enhancing work commit- ment of employees because level of commitment affects turnover intentions and actual turnover rates (Cooper-Hakim and Viswesvaran 2005). The Institute for Transportation Research and Education at NC State University conducted a survey of retention of managers and directors at community transit agencies and found that among most of the managers who were highly sat- isfied, some of the reasons they like their jobs were: working with good people; helping their community; and seeing coworkers and staff do well as a team (Cook and Lawrie 2004).

Basic Steps for Transit Implementation of this Strategic Recommendation 1. Encourage new manager and supervisor commitment to the organization through an exten- sive transit system orientation program. 2. Involve transit system managers in creating the mission, vision, and values statements along with a short- and long-term strategic plan. 3. Meet with managerial and supervisory staff at regular intervals to discuss ways to make transit system mission, vision, and values a part of everyday work life and interaction with customers. Retention Recommendations 83

Table 4.8: Build a Culture of Ownership Description: Creating teams and organized groups within the transit system that are given discre- tion in implementing new policies or action plans helps to establish a sense of ownership in the tran- sit system’s daily operations and thus, results in increased employment engagement and retention. How to Implement this Recommendation • Encourage Organizational Involvement. Organizational involvement improves employee’s understanding of the transit system, and often helps new programs succeed as employees develop a sense of responsibility (KFH Group, Inc. 2008). – Form Ad-hoc Committees. Allow employees and managers to form and serve on commit- tees aimed at addressing system-wide issues such as transit system policies, hazard identi- fication and reduction, identifying new equipment and technology, and enhancing service quality and customer satisfaction. The committees would be responsible for researching the issues under examination and developing plans to address the issues. – Performance Improvement Teams. Form teams of employees and managers to help solve specific transit system performance concerns. Issues could include: increasing customer service, decreasing the number of accidents or incidents, or increasing on-time perfor- mance. The team would be responsible for creating a performance improvement plan with criteria for success, assisting in implementation of the plan, and evaluating the success of the plan. – Allow Employees to Set Goals. While employees are often able to set personal development goals, employees could also participate in goal setting for their department and the transit system as a whole. Allowing both management and employee participation in goal setting can increase motivation and enthusiasm for the work and ultimately ownership in transit system performance. • Engage Managers in Human Resources Decision Making. This practice includes giving both employees and managers a “voice” in the hiring process and in their own development and compensation concerns. – Hiring. Managers can be included in prescreening applicants, interviews, panel interviews, or other selection methods. Allowing employee participation in hiring decisions or in pro- viding hiring recommendations can make employees feel more comfortable with the new employee or manager and more committed to the organization. – Training. Include employees and managers in decisions about training needs and course selection. Involving employees in performing training needs analyses will provide a clearer understanding of the transit system’s overall training needs. Further, when choosing train- ing courses, asking for employee feedback about which courses would be most useful to their job can help ensure that training budgets are spent wisely on training that will bene- fit employees the most. – Compensation and Benefits. Asking managers about the benefits that are most useful and effective to them and their families can help systems develop a compensation and benefits package in line with the needs of its employees. • Recognize Employee Involvement. To emphasize a transit system’s commitment to increasing employee involvement and ownership of the system, employee contributions can be recog- nized. Recognition can include: – Expressions of Acknowledgement. Systems can express their gratitude for employee par- ticipation in organizational activities publicly via system meetings, newsletters, bulletin boards, or their website. 84 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems

– Special Distinctions. Exemplary service could result in earning special distinctions within the system including Manager of the Month. – Rewards. Participation in system activities could also make employees eligible for rewards, such as bonuses or additional leave time. Examples of Innovative and Effective Transit Practices • Mass Transportation Authority. MTA has built a culture of employee ownership using a cou- ple of strategies: – As part of the selection process, the system includes a panel interview consisting of three individuals. Based on the scores of these interviews, candidates may later have another interview. Although an administrator makes the final hiring decision, the system’s employ- ees are involved in candidate selection and the scores and recommendations they provide are considered. – The system also holds monthly management training luncheons with staff to engage employees and discuss what is needed for employees to move up the career ladder. Oppor- tunities to join these meetings are posted in employee work areas and 6–12 employees are invited to attend each meeting. In addition to discussing “what is needed to move up the career ladder,” the meetings are used to talk about challenges such as how to increase diver- sity in the system’s workforce, sexual harassment, team building, front-line supervision, family needs, and other total quality management topics. • Cache Valley Transit District. Cache Valley promotes the idea that management and employ- ees are “all in this together.” Managers are not afforded special treatment such as special park- ing spots and employees are encouraged to voice their opinions and feedback. Part of this effort is a system suggestion form where any employee or manager can provide their feedback or recommendations for how to improve service and processes. Suggestions and recommen- dations go to a committee made up of representatives from each part of the organization. The committee either approves the suggestion or recommendation or disapproves it and is required to justify their reasons for doing so. The system believes that it is only by hearing about mistakes and identifying how the system can improve that it will actually grow in a pos- itive direction. Potential Barriers Potential Facilitators Retention Recommendations 85 • Systems that are trusting of their employees and that value their employees’ contributions. • Employees within transit systems who are willing to become active participants in com- mittees, teams, and decision making. • Management and administrators who are uncomfortable with employees participat- ing in transit system activities and processes. • Perceived lack of interest in participation on the part of employees and managers. Alternative Approaches to Practice Alternative Approach 1: To initiate employee participation, transit systems can include employ- ees and more junior level managers and supervisors in committees and performance improvement teams, but require that the chairperson for a committee or team be a manager with a certain amount of tenure at the system. As the system becomes more trusting of employees, they can increase employees’ responsibilities in organizational activities. Alternative Approach 2: Instead of including employees in a formally scored panel interview, employees could conduct a question and answer session with the managerial or supervisory candidate to determine how the candidate would fit in with current employees and managers. Employees can then submit their recommendations to the hiring manager. (continued on next page)

Alternative Approach 3: Employees are often more than willing to share their opinions and feed- back as long as they know that their participation will be taken into consideration in decision making and will make a difference to the system. Transit systems should communicate with employees about how their participation will impact the system and impact them directly. Impact of the Practice • Developing trust and loyalty among employees and managers is essential to retaining good employees and managers. Being involved in the management, direction, and success of the tran- sit system builds a sense of ownership and pride among employees (KFH Group, Inc. 2008). Basic Steps for Transit Implementation of this Strategic Recommendation 1. Encourage transit systemwide employee involvement in organization decision making through ad-hoc committees, performance improvement teams, and organization goal setting. 2. Engage managers and employees in transit system human resource management decision making including hiring, training, and compensation. 3. Recognize employee participation involvement in organizational decision making activities through a formal acknowledgment process. 86 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems Table 4.8: Build a Culture of Ownership (Continued)

Table 4.9: Create a Positive Organizational Culture Description: Organizational culture is the set of shared values, attitudes, beliefs, and traditions that exist within organizations. The organizational culture within a transit system is based on established workplace norms regarding expectations for behavior and work product. How to Implement this Recommendation • The culture of any transit system has likely been established over a number of years of inter- action among current and former employees and managers. The culture of a transit system can encourage employees to behave and perform well (e.g., seeing managers arrive at work on time encourages employees to be on time as well) or it can contribute to deviant or undesir- able behaviors (e.g., in organizations with managers who do not submit paperwork on time, employees will likely learn those norms and behave accordingly) (Aamodt 2004). • In order for a transit system to consider changing its culture, there must be some dissatisfac- tion with the system’s current organizational culture, based on how the culture is impacting the financial bottom line, customer service, or job satisfaction. • Organizational culture is difficult to change quickly, but it can change and grow over time. Transit systems should keep in mind that not all elements of their organizational culture must change; systems will want to keep the successful elements of their culture and either change those elements that are unsuccessful or add new elements (Aamodt 2004). • Aamodt (2004) suggests five steps for assessing organizational culture: – Step 1: Conduct a Needs Assessment. Transit systems must analyze their current culture and compare it to their desired culture. This will help systems determine the elements of the existing culture that could support organizational change. For instance, systems that would like to move to a culture that empowers its employees, rather than a top-down decision making culture, should examine how the systems currently empower employees and what they would like to do to encourage empowerment. – Step 2: Determining Executive Direction. Transit system leaders should then analyze the data collected in the needs assessment to determine which elements will reinforce the culture and the feasibility of changing elements of the culture, including obstacles and facilitators. For example, if all transit system leaders are not willing to engage in participative decision making, some staff may not feel empowered or valued. – Step 3: Implementation Considerations. This step deals with how transit systems will imple- ment a new or changed organizational culture. Will a system establish committees or rely on system administrators to carry out changes? If a culture of empowerment is desired, employees at all levels should be included in implementing the changes required to estab- lish a new culture. – Step 4: Training. Culture change often results in changed role expectations throughout an organization. Transit system employees and managers should be trained in their new cul- ture in order for implementation to be successful and long lasting. As an example, training can reduce ambiguity throughout a system about what empowerment means for employ- ees, what is expected of them, and what they can expect from managers. – Step 5: Evaluation of the New Culture. Most organizational changes are evaluated to estab- lish whether change has occurred and what elements of the change still need to be addressed. Retention Recommendations 87 (continued on next page)

Examples of Innovative and Effective Transit Practices • Transfort. Transfort’s General Manager (GM) believes that the system’s retention rate does not depend on whether the economy is doing well or poorly. The GM feels that how managers lead and are supported is what impacts retention the most. Managers set the tone and culture of the system, which are things that managers can control. In turn, managers’ positive exam- ples lead to high retention systemwide. • Altoona Metro Transit. To increase retention AMTRAN creates an organizational environ- ment that is supportive of its employees and managers. The system operates in a small urban environment with a shortage of qualified workers. System leaders believe that if an employer does not treat people well, people will leave and find another employer that will treat them well. Therefore, building a supportive culture that respects individuality and gives employees the opportunity do to work that matters is an essential piece of AMTRAN’s retention strategy. • Coast Transit Authority. Coast Transit has experienced minimal management turnover in recent years due in part to the system’s organizational culture. The Authority concentrates on morale in the workforce to ensure that they are providing a supportive work environment for all personnel. The system also asks managers to listen to their employees and help them resolve conflicts and problems. This support and conflict management has led to low turnover levels. • Cache Valley Transit District. Cache Valley has found that the system’s working environment is key to retaining managers. The system strives to create an environment that is trusting, sup- ports people, and allows them to take risks without singling people out for making mistakes. This openness and positive environment have led to very low turnover rates. • Golden Empire Transit. Golden Empire Transit believes that its low managerial turnover is due to the system’s organizational culture. The culture is supportive of employees and man- agers. Throughout the system, personnel feel support and a sense of family. Potential Barriers Potential Facilitators 88 Guidebook for Recruiting, Developing, and Retaining Transit Managers for Fixed-Route Bus and Paratransit Systems Table 4.9: Create a Positive Organizational Culture (Continued) • Top management that sees a need for change and is willing to implement an organizational change. • Employees and managers who will help with steps to implement an organizational change. • Top management that does not perceive a need for organizational change. • Top management that fails to model the behavior desired of their staff. • Transit systems that are rooted in beliefs that may not be justified, including worker stereotypes based on age, gender, ethnicity, or other factors. Alternative Approaches to Practice Alternative Approach 1: Rather than making a radical change, transit systems can take smaller steps to create organizational culture change. For example, initiating mentorship relationships between individuals in different age groups (matching an older worker and with a younger worker) and asking the groups to discuss, in a safe setting, their perceptions about some of the organizational practices.

Alternative Approach 2: Systems should include employees and managers in the culture change process, even if increased employee empowerment is not an end goal. Determining which ele- ments of organizational culture help and hurt employees and managers could be the key to retaining them. Impact of the Practice • Transit systems that provide employees and managers with a positive organizational culture will likely experience increased retention. Basic Steps for Transit Implementation of this Strategic Recommendation 1. Analyze current transit system organizational culture to determine if it is producing the desired results. 2. Determine elements of the transit system culture that may need to be changed. 3. Establish a methodology and implementation plan for transit system cultural change as may be appropriate. 4. Train managers and employees on all cultural change efforts and new role expectations result- ing from those efforts. 5. Evaluate the transit system’s new culture as it evolves to establish whether change has occurred and identify elements of change still needing to be addressed. Retention Recommendations 89