National Academies Press: OpenBook

Strategies to Attract and Retain a Capable Transportation Workforce (2011)

Chapter: Chapter 14 - Succession Planning

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Suggested Citation:"Chapter 14 - Succession Planning." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies to Attract and Retain a Capable Transportation Workforce. Washington, DC: The National Academies Press. doi: 10.17226/14475.
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Suggested Citation:"Chapter 14 - Succession Planning." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies to Attract and Retain a Capable Transportation Workforce. Washington, DC: The National Academies Press. doi: 10.17226/14475.
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Suggested Citation:"Chapter 14 - Succession Planning." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies to Attract and Retain a Capable Transportation Workforce. Washington, DC: The National Academies Press. doi: 10.17226/14475.
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Suggested Citation:"Chapter 14 - Succession Planning." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies to Attract and Retain a Capable Transportation Workforce. Washington, DC: The National Academies Press. doi: 10.17226/14475.
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Page 106
Suggested Citation:"Chapter 14 - Succession Planning." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies to Attract and Retain a Capable Transportation Workforce. Washington, DC: The National Academies Press. doi: 10.17226/14475.
×
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Page 107
Suggested Citation:"Chapter 14 - Succession Planning." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies to Attract and Retain a Capable Transportation Workforce. Washington, DC: The National Academies Press. doi: 10.17226/14475.
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Suggested Citation:"Chapter 14 - Succession Planning." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies to Attract and Retain a Capable Transportation Workforce. Washington, DC: The National Academies Press. doi: 10.17226/14475.
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Page 108

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102 Chapter 14: Succession Planning Succession planning is the strategic process of identifying and preparing high-potential employees through mentoring, training, and job rotation op portunities to replace staff, upon exiting the agency, in key management positions. In this chapter, we present challenges, strategies, and workforce practices related to “Succession Planning.” Exhibit 14-1 provides a snapshot of the chapter. Exhibit 14-1 Snapshot of Chapter 14 Chapter Road Map Concept and Definition Sound succession plans help to ensure stability and organizational success. The process can range from simple career paths to a formal selection process where candidate pools are groomed for certain positions. Workforce Challenges …..……....... 103 Lack of Workforce Planning Lack of Career Path/Succession Planning Industry Strategies .……………….. 103 Implement a Succession Planning Program Establish Diversity Goal s Workforce Practices …..………….. 104 Minnesota DOT Succession Planning for Supervisors and Leadershi p Pennsylvania DOT Succession Planning for At-Risk Position s Definition of Succession Planning: Involves identifying and preparing high potential employees through mentoring, training, and job rotation opportunities to replace staff, upon exiting the agency, in key management positions. Workforce Pipeline Target Area Target Career Stages K-12 Comm. Colleges 4 year Colleges Graduate School s Entry-Level Staff Mid-Career Staff Senior Leaders Retirees Succession Planning Chapter 14 Target Area TRANSPOR ATT ION WORKFORCE PIPELINE

14.1 Workforce Challenges. Programs related to “Succession Planning” are typically designed to address challenges associated with ensuring continuity of organizational resources, including developing a plan to replace leaders as they move through the organization and/or retire. These challenges should be carefully considered before selecting the program that would best fit the needs of your agency. For example, these are common challenges agencies face: Lack of Workforce Planning. Several organizations indicated that a lack of workforce planning and strategies cause hiring managers to ‘do their own thing’ and react to job vacancies differently. Forced to fill the position quickly, hiring managers are not able to investigate the applicant as thoroughly as they would like and might end up hiring a candidate who is a bad “fit” with the organization. Some organizations indicated that they do not attempt to predict future needs because their department is limited in the number of positions it is allowed to have. This choice may leave an agency exposed and implement haphazard recruitment techniques when faced with retirements and other sudden vacancies. Lack of Career Path/Succession Planning. Many participants indicated their organization does not have a way of identifying or preparing high-potential employees for promotions. This is an important problem to solve because high-potential workers tend to capitalize on training they receive, resulting in a greater return on investment for the organization. Furthermore, many organizations do not provide employees with career paths or the steps each employee must take to advance. This lack of planning conveys to the employee that the organization is not concerned with their professional advancement and as a result, they may begin to explore opportunities outside of the organization. 14.2 Industry Strategies. Researchers and program managers identify the following programmatic strategies when describing industry efforts in “Succession Planning.” (See Exhibit 14-2.) While these strategies represent the general direction of human resource (HR) departments across the nation, it is important that the specific needs of your agency are used to guide the development and implementation of a program in your agency. Exhibit 14-2 Industry Strategies: Succession Planning Strategy Strategy Description Implement a Succession Planning Program Organizations conduct succession planning that ranges from simply creating career paths to a formal selection process where candidate pools are groomed for certain positions. Formal succession programs involve management teams identifying individuals who have shown qualities that indicate the potential for strong leadership and have had excellent performance in their current position. The programs involve training, problem solving activities, assessments, mentoring, and testing that are in addition to the selected employees’ normal duties and do not result in additional compensation. Job rotations are also a large part of the succession planning program, allowing the selected employees to see the organization from several vantage points. Once the selected employees have “graduated” from the program, they are considered for management opportunities as the opportunities arise. This not only makes filling management opportunities easier because of the smaller applicant pool, but it keeps high performers engaged and shows that there are opportunities for advancement. It may also motivate mid-level performers to improve their performance to be selected for the program. One important Succession Planning 103

Exhibit 14-2 (Continued) Industry Strategies: Succession Planning Strategy Strategy Description factor in building a succession plan is to determine a standard and verifiable way of selecting the high performers. The designation of high potential should be made by more than one supervisor. Establish Diversity Goals In order to ensure diversity is upheld within the highest levels of the organization, it is important that agencies are intentional about their plans for including minorities in their succession planning and that top management fully supports those plans. 14.3 Workforce Practices. Nine workforce practices that were designed to assist in making the process of “Succession Planning” within transportation agencies efficient and effective were reviewed, and we identified two workforce practices that were the most noteworthy within this context: Minnesota DOT Succession Planning for Supervisors and Leadership Pennsylvania DOT Succession Planning for At-Risk Positions For these two practices, we conducted a case study. Summaries of the two case studies are presented below. The full case studies can be found on the TRB website at http://trb.org/Main/Blurbs/164747.aspx as part of Volume II: Supplemental Materials. The full case study descriptions detail each practice’s background, implementation, maintenance, evaluation, and transferability. 104 Strategies to Attract and Retain a Capable Transportation Workforce

Minnesota DOT Succession Planning for Supervisors and Leadership Job Type: All ROI: Long-term Generation: Older Key Program Highlights: o Executive-level process designed to develop and/or externally recruit employees to support targeted leadership positions o Led to the implementation of programs that supported the succession planning process including job-sharing, job-switching, and classroom training o Helps agency utilize talent in leadership positions and align leadership with the strategic direction of the department Minnesota DOT Succession Planning for Supervisors and Leadership. Minnesota Department of Transportation (Mn/DOT) employs 5,033 people in a variety of employment conditions (i.e., temporary, unlimited, full-time, part-time). Slightly more than three-quarters (76%) of the agency’s workforce is above the age of 40, while only 8% are 29 years or younger. The majority of Mn/DOT’s workforce is Caucasian and male, 93% and 79% respectively. As described on Mn/DOT’s website, the agency’s mission is to “provide the highest quality, dependable multi-modal transportation system through ingenuity, integrity, alliance, and accountability.” This program is an executive-level process designed to develop and/or externally recruit employees to support targeted leadership positions. The succession planning model consists of a competency-based, developmentally driven executive staffing model to identify a talent pool of successors who can move into crucial positions without unnecessary operational disruptions. The program has directly influenced more than 20 senior executive management appointments. The Minnesota Department of Transportation (Mn/DOT) estimated in the early 1990s that 90% of their engineering workforce and key leadership positions would be eligible for retirement or retired in the next 15-20 years. As a result, in 1994, the agency began to explore a Succession Planning program. The intent was to create a model for identifying essential executive-level positions and then developing internal candidates or recruiting externally to support those positions. The program ensures that future leadership aligns with the department’s strategic goals and objectives and that the department can take advantage of Mn/DOT’s talent pool. As a first step in developing its succession planning model, the Mn/DOT Senior Executive Management Team created a steering committee of senior managers to develop the process. As a result, Mn/DOT identified 37 succession planning positions and the competencies needed to fill them. Mn/DOT also had identified seven core competencies that support the mission, vision, and goals of the department. These seven core competencies guide Mn/DOT HR functions and provide a framework for accountability throughout the department. Most recently the competencies have been reviewed and revised. Position profiles were developed that included the general purpose of the position, education requirements, licensure requirements (if any), and competencies ranked from A to C in terms of the most critical. Mn/DOT started the implementation process by gathering data such as environmental scanning with the Commissioner and staff and retirement/turnover data, soliciting participants, conducting assessments of people in the process/program, and providing feedback to employees. Mn/DOT used the identified competencies and qualifications to assess each individual’s knowledge and experience and determine if the employee would need further development to prepare him/her for the next level. High-potential employees were determined based on a rating of “ready now,” “ready in 3 years,” and “ready beyond 3 years.” This evaluation led the Succession Planning program to put a prime focus on leadership development within the department. Programs that supported the implementation of this succession planning process included job sharing, job switching, and classroom training. Succession Planning 105

The costs associated with implementing the Succession Planning program have primarily consisted of time and effort. Additionally, there were costs related to lost time because the Succession Planning program involves development time and relocation costs based on job sharing and/or job switching. Mn/DOT also undertook a thorough communications process to inform employees of the Succession Planning program. The agency drafted newsletter articles and utilized meetings to share information with employees. Mn/DOT drafted and administered an interest survey to managers, which assessed their interest in advancement and in becoming participants of the succession planning process. All managers were responsible for supporting the process in some way; they were either directly involved or supportive through encouraging their subordinates to get involved. Since fully implementing the program in 2003, Mn/DOT has been able to fill most executive-level positions in a timely fashion. Mn/DOT uses the Succession Planning program to determine whether they have a sufficient pipeline of potential leaders and hires for these positions, or if they should look outside the agency (e.g., finance staff). The Succession Planning program also increased the transparency of hiring for high-level positions by communicating the expected qualifications for those positions. Support for the program is dependent on the commitment from the Mn/DOT Commissioner and staff. The significant outputs from the program include a well-rounded performance management process including performance feedback in the organization; leadership development through classroom and on- the-job training; development programs such as job sharing and job switching; ability to utilize Mn/DOT talent in leadership positions; and the ability to align leadership with the strategic direction of the department. 106 Strategies to Attract and Retain a Capable Transportation Workforce

Pennsylvania DOT Succession Planning for At-Risk Positions Job Type: All ROI: Long-term Generation: Older Key Program Highlights: o Focuses on “at risk” positions, critical organizational positions that may soon become vacant due to impending retirements, promotions, or transfers o Candidates identified, may enter a mentee/mentor program or job training to be prepare them for the future roles they may occupy o Assessment of the program will be based on whether at-risk positions are identified efficiently and effectively; ability to identify candidates to fill the vacancy; and ability to fill the vacancy swiftly Pennsylvania DOT Succession Planning for At-Risk Positions. The Pennsylvania Department of Transportation (PennDOT) has approximately 12,000 employees, not including consultants or contractors, of which roughly 10,500 are engaged in maintenance, restoration, and expansion of the highway system. The agency is divided into six main divisions, known as deputates, which include highway administration, safety administration, planning, aviation and rail freight, local and area transportation, and administration. In order to address PennDOT’s struggle with retention due to employee retirement, PennDOT implemented a Succession Planning practice. The practice focuses on “at-risk” positions, critical organizational positions that may soon become vacant due to impending retirements, promotions, or transfers. In addition to identifying “at-risk” positions, PennDOT identifies a pool of current employees who are capable of completing the duties associated with the “at-risk” position. Once these candidates are identified, PennDOT may enter them into a mentee/mentor program or job training so they can be prepared for the future roles they may occupy. PennDOT developed a Retirement Project Report, which they distribute to regional decision-makers, as well as a Workforce and Succession Planning Report Tool to guide decision makers at the district and county level. Additionally, PennDOT created an Organization/Job Class Workforce Planning Worksheet to help district decision makers think about future work requirements, analyze current resources and projects, and develop an organizational action plan to address future vacancies. The Succession Planning program was developed in the central office at Penn DOT and then implemented by PennDOT’s HR department. PennDOT’s HR department researched best practices in other states, gathered information on related data systems, and collaborated with PennDOT’s Workforce Development Division to develop training to prepare employees from the central office to travel to the districts and explain the Succession Planning program to local employees. All costs associated with implementing PennDOT’s Succession Planning were internal and required only employee time. Because Succession Planning has only existed at PennDOT since 2007, PennDOT has not yet formally evaluated the practice. PennDOT anticipates evaluating the practice by considering whether they have identified at-risk positions efficiently and effectively, identified candidates to fill the vacancy, and filled the vacancy swiftly. Regardless of measurable results, PennDOT’s leadership almost universally supports Succession Planning as a necessary practice, and the reaction of most PennDOT employees has been positive. Succession Planning 107

Other Example Practices To serve as an additional resource for agencies interested in “Succession Planning,” we have included a list of other practices that transportation agencies have implemented for this purpose. Additional information on each of the following practices can be found in one- to two-page summaries within the supplemental materials. Career Path Diversity Succession Planning Minority Development Practices Staffing Plan Database State DOT Succession Planning Programs Succession Planning Best Practices Workforce Planning Program The practice summaries include information, such as the lead organization, practice description, practice purpose, targeted participants, return on investment (ROI) timeline, influence of the economy, innovativeness, and resources to find out more information on the individual practices. 108 Strategies to Attract and Retain a Capable Transportation Workforce

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TRB’s National Cooperative Highway Research Program (NCHRP) Report 685: Strategies to Attract and Retain a Capable Transportation Workforce includes straight-forward, implementable practices that transportation Human Resources (HR) managers and hiring professionals can use to help improve the recruitment and retention of qualified employees in their organizations.

The report provides information on workforce challenges, industry strategies, and detailed descriptions of noteworthy practices within each of 15 recruitment and retention categories.

Volume II: Supplemental Material is available online as an ISO image, which can be used to produce a CD-ROM. Volume II includes an introductory document summarizing the content of the supplemental materials and provides full case studies and summaries of other example practices related to the recruitment and retention practices.

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