A Guide to Building and Retaining Workforce Capacity for the Railroad Industry (2015)

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10 Industry Workforce Railroad Recruitment Challenges According to the Bureau of Labor and Statistics, the railroad industry workforce is projected to grow by roughly 1% each year through 2018 (Federal Railroad Administration, 2011). In 2004, an Association of American Railroads press release announced that freight railroads were projected to hire more than 140,000 workers by 2014 based on RRB projections (Federal Rail- road Administration, 2011). However, this hiring effort will not necessarily meet the demand projected by the industry. The most recent trend in retention issues within the railroad industry is the upswing of retiring Baby Boomers. This situation is creating a struggle to maintain current employees and convince the millennial generation that the railroad industry is a viable career option. “In a time of tight labor markets, talent can be very hard to find—and very expensive to replace. When a good employee walks, the business takes a hit,” and the railroad industry is no stranger to this struggle (Cappelli, 2000). U.S. freight and passenger rail organizations need to develop efficient and effective recruitment strategies to hire qualified workers to successfully fulfill the need for the expected increase in the rail transportation industry. This effort will be difficult for several reasons. First, the industry must find an effective way to replace the large number of retired employees and those reaching retirement age. At the moment, only a few rail-specific engineering education programs exist. Not only does this reduce the pool of applicants for rail positions, but it also may lead to a skills gap not seen previously in the industry. In the past, there was an abundance of qualified, skilled workers for the industry. However, as technology continues to advance within locomotive and rail opera- tions, more advanced and specific technical expertise is required in employees. As the current workforce continues to retire, that knowledge may be lost if there is not a strategic, effective plan for a knowledge transfer from more experienced employees to new hires. There is increased pres- sure on recruiting functions to help ensure higher start rates and less new-hire attrition (Federal Railroad Administration, 2011). Beyond the aging workforce, researchers face great difficulty when trying to ascertain a com- prehensive status of the entire industry due to inadequate human resource monitoring in the domains of recruitment and retention. The lack of standardized human resource data collection efforts across the industry provides a great hindrance to the development of recruitment and retention strategies. Other contributing factors include the public image of the railroad industry. At one time in history, the railroad was perceived as an attractive career choice. Over the years, the industry has receded from the forefront of popular career paths. Additionally, many rail hubs operate in rural areas. It is more difficult to recruit in rural areas because the smaller populations Literature Review C H A P T E R 2

Literature Review 11 make it more of a challenge to find qualified people to fill open technical positions. It is especially important to develop effective recruitment strategies for rural areas. Aging Workforce. The aging workforce is the largest concern to the rail industry. The issue of an aging workforce is two-fold: 1. The industry needs to develop a method of capturing critical knowledge from the retiring employees and transferring that knowledge to new recruits; and 2. The industry needs to successfully attract new talent over time to sustain their workforce. The aging workforce dilemma results from the Baby Boomer generation composing the major- ity of the current freight and passenger rail workforce. This generation, born between 1946 and 1964, is reaching retirement age. There has been and continues to be concern for retirements happening at once, wiping out a large section of the workforce. Due to an anticipated increase in retirements, there is a need to improve recruitment practices in order to replace and enhance the railroad workforce. In particular, the industry is worried about being able to recruit new employees to fill senior positions as most employees reaching retirement age belong to that cat- egory. The looming threat of retirements may cause railroads to lose many senior staff in a short period of time. It would be difficult to fill many senior positions with qualified personnel. Con- sequently, in addition to developing successful recruitment practices, it is critical for railroads to develop a strategy for knowledge transfer. Few formal knowledge management programs exist, which could be detrimental to the railroads if the rate of retirements begins to increase (Federal Railroad Administration, 2011). Lack of Data. The railroad industry as a whole has not reached a consensus regarding the types of human resource data that should be collected to monitor recruitment and retention. As a result, there are inconsistencies from one railroad to another regarding the type of data collected as well as a lack of data in some instances. Furthermore, the workforce data that does exist is sparse and several years old. The unavailability of this information makes understanding the current status of the industry difficult for researchers. “There is no place to obtain a complete picture of the transportation workforce, let alone the factors and trends within it. Relevant work- force trends, total actual attrition, total hires, diversity hiring statistics and the percentage of total attrition related to retirements is also not available industry-wide” (Kesler et al., 2011). Without access to this information, it is difficult for government programs to identify or aid current chal- lenges. “The Federal Railroad Administration Workforce Development Team wants to publish meaningful rail industry workforce metrics to be used by the wider industry annually, improv- ing both transparency and program accountability” (Federal Railroad Administration, 2011). To produce this resource, the Federal Railroad Administration Workforce Development Team sought to establish “a baseline of metrics that will consolidate key workforce statistics from all railroad companies and entities.” If proper and quality data is collected annually, it will give researchers as well as professionals within the rail industry the chance to compare data as projects and pro- grams are being undertaken and completed (Federal Railroad Administration, 2011). Public Image. Today, the rail industry faces a challenge with respect to public perception, leading to a lack of interest in railroad careers. The railroad industry has traditionally benefit- ted from a high degree of nepotism with tremendous family loyalty to this industry. Marketing to new generations of workers occurred in the home, where children were acquainted with the industry at an early age (Kesler et al., 2011). For many decades, this process produced a sufficient railroad workforce. Presently, the need to recruit new employees is being hindered by the negative perception of the industry. Surveys conducted across the railroad and transit industries have col- lected descriptions such as old fashioned, difficult and boring work, old and decaying industry, male oriented, overly bureaucratic, labor intensive, poor salaries, and limited prestigious projects

12 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry (Everitt, 2008; Federal Railroad Administration, 2011; Kesler et al., 2011; Reinach and Viale, 2007; Vogel, 2001). A lack of hiring over the past decades and limited direct marketing to the public has contributed to the development of a negative perception of careers in this industry. The consequence of this limited interaction is an incorrect perspective of the health and vibrancy of the railroad industry (Federal Railroad Administration, 2011). The uncomplimentary image of railroad careers is deterring many people from seeking positions in this industry. Transforming the public appearance of the transportation industry as a favorable and respected career choice will be a key factor in addressing recruitment issues. The new generations (i.e., Generation X and Millennials) compose a new workforce that considers a wider set of career choices and values different job features. “The industry needs to adopt, to their best ability, the values of the new generations and ensure that careers embrace these new values and demonstrate the merit of working in the industry” (Kesler et al., 2011). For the railroad industry to develop the workforce capacity needed to meet future demands, organizations will need to enhance their recruitment strategies and boost the overall recruitment effort. For example, Canada’s rail industry is experiencing similar workforce issues with aging Baby Boomers on track for retirement. According to the current Railway Association of Canada Vice President Bruce Burrows, the Canadian railroads’ short-term plan is to employ new workers to replace these retirees. Moving forward, within the next 5 years, they will need to hire 15,000 new locomotive conductors, rail car and diesel mechanics, and rail traffic controllers to meet the work- force needs of the Canadian rail industry. The railroads’ workload has rebounded by an annual growth rate of 2.8%, above the national average (Railway Association of Canada, 2011–2012). Recruitment strategies in the freight and transit rail industries as well as related industries are explained in the following section. Targeted Recruitment To use their recruitment efforts and resources most efficiently, railroads should target specific groups of people that will meet the requirements for working in the industry. Careers in the rail- road industry require specific skill sets as well as an understanding of the demanding workload; thus, they are not suitable for all people. For this reason, railroads should target their recruitment efforts toward specific groups of people that will be interested in and qualified for these jobs. Veterans. One population that research has proven to be a successful group to target is U.S. veterans. Several past research studies have recorded survey and focus group responses that indi- cate hiring veterans is a successful recruitment practice. Results from surveys of Class I railroads conducted by the Federal Railroad Administration revealed that the military is a primary source of non-engineering recruits for railroads. Most Class I railroads advertise in military publica- tions and have been recognized by leading military magazines for their proactive work with transitioning service men and women and their outreach to help them prepare for civilian jobs (Federal Railroad Administration, 2011). In another study conducted by Reinach and Viale (2007), the responses from interviews with Class I railroads identified hiring military personnel and working with military assistance programs as a very successful recruitment method compared to other methods railroads were using. Many railroads named partnerships with military organizations (e.g., Army Partnership for Youth Success) and the Veterans Administration as particularly successful recruitment prac- tices. Having partnerships with these programs allows the railroads to educate representatives on the culture of the railroad work environment; the industry; and the knowledge, skills, and abili- ties that these jobs require. The relationship between the railroad and the military organizations helps the recruiters better understand the qualifications of the prospective employees they refer to the railroads. Recruiting through military outplacement services has resulted in several excellent applications as well according to participating railroads (Reinach and Viale, 2007). Researchers

Literature Review 13 from another study found transit organizations also recruited from the military. One organiza- tion specifically recruited veterans for managerial positions by partnering with a selection firm to select high potential candidates coming out of the military. In addition, this organization also works with West Point to attract its graduates (Anderson et al., 2009). Veterans have many skills and experiences that lend themselves well to the railroad work environment. Veterans have discipline, experience with changing locations, and technical skills that would be used in the railroad. Veterans also have experience working in demanding condi- tions and operating heavy equipment. In 2012, Department of Transportation Secretary Ray LaHood acknowledged veterans as valuable potential employees because of the leadership and teamwork training experience that military personnel have (Tarancon, 2012). Veterans are not a new source of potential employees; in fact, railroads have been recruiting veterans for years. Of the seven U.S. Class I railroads, four—Union Pacific (UP), BNSF Railway, CSX Transportation, and Norfolk Southern—were listed among the top 50 military-friendly employers in the United States by G.I. Jobs magazine in 2006, 2007, 2008, and 2010 (Association of American Railroads, 2011). Veterans continue to be a great resource and critical source of potential recruits. The Association of American Railroads is working with the Department of Veteran Affairs to ensure that 500 railroad companies, including freight and inter-city passenger and commuter railroads, make it a priority to offer employment to veterans. In 2011, 1,600 organizations hired more than 90,000 veterans and military spouses. Those same companies have stated they plan to hire 170,000 in the next several years (Tarancon, 2012). Individuals Seeking a Second Career. The railroad industry may not be attractive to younger people looking for a career, but as they mature, the stability and benefits of this industry become more attractive. Advertising jobs in the railroad industry to individuals seeking to move to a second career opens another pool of prospective recruits. The literature cited examples of organizations uti- lizing this tactic. To address the recruitment issue in Canada, railroads are aiming their advertising at older individuals looking for new careers as well as men and women looking for a post-secondary school education (Railway Association of Canada, 2011–2012). In a related industry, a bus transit system that was in need of drivers built a campaign around bus operations as a part-time second career with the slogan “Make a first step in a second career” (Vogel, 2001). Newer Generations. As previously mentioned, the decline of nepotism within the railroad industry creates a challenge for recruitment. In the past, the railroad industry had been a career that was passed down from generation to generation. As Baby Boomers retire and Generation X and Millennials enter the workforce, it is clear that there are generational differences. It is an important recruitment strategy to understand and adjust to what future employees’ expecta- tions and needs will be for their jobs. Railroads indicate that they expect future railroad workers will vary from the workforces of previous generations. One example of generational differences that railroads noticed was newer generation employees seeking more vacation time and a more consistent work schedule compared with the previous generations of employees, even if it meant they were to receive a lower salary (Reinach and Viale, 2007). Recruitment managers within the railroad industry need to keep these issues in mind in order to educate their organizations’ leaders to tailor the work environment to meet the new workers’ expectations and to develop recruitment strategies to entice these generations. Participating railroads observed that individuals from the youngest generations of workforce employees (i.e., Generation X and Millennials) are more apt to change jobs on a frequent basis as compared to older generations, especially while they are still young. In effect, this leads to an increase in turnover rates (Reinach and Viale, 2007). Canadian railroads also have the same idea when it comes to dealing with generational differ- ences and attracting younger generations. The Railway Association of Canada launched a fresh

14 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry image in May 2011 that was designed to emphasize the railroad industry’s qualities and attract a younger demographic that might not otherwise consider a career in rail. “Based on four com- munications pillars—enabler of the economy, a green solution for the environment, safe and innovative—these themes and messages have been designed to attract a younger, environmen- tally conscious and technology-savvy workforce” (Railway Association of Canada, 2011–2012). Railroads have features that, if advertised correctly, should draw the interest of young people. Railroads have an environmentally friendly reputation and make extensive use of high-tech equipment. Rail is the most efficient transportation system in the world. It uses less energy, reduces pollution, lowers greenhouse gas emissions, and cuts traffic gridlock. The industry con- tinuously looks for ways to be more efficient by investing in technology. The rail industry is very big on innovation, using the newest and most advanced technology there is. The railroad industry has features that members of the younger generations find appealing; however, the larger public is not aware of these attractive features. Railroads need to advertise these features in the right domains to attract the younger workers that they want. Recruitment Techniques In general, railroads can employ several recruitment techniques in order to recruit the most diverse and qualified pool of applicants. Due to the previously mentioned recruitment challenges, there are not enough people apply- ing for jobs in the railroad industry. In order to recruit and hire enough qualified employees, the pool of applicants needs to be increased. Some options that have been mentioned in the litera- ture include recruiting through internships, cross-skilling, advertising to individuals interested in a second career, and advertising to the newer generations. While these are all acceptable and traditional ways of attracting new recruits, it is imperative for the railroad industry to realize that becoming an employer of choice implies dedication to becoming an exciting and engaging industry to work for. A major issue with some traditional recruitment strategies is that com- panies recruit for the need as opposed to recruiting for the future. Instead of having a reactive approach to recruiting there should be an emphasis put upon proactive recruiting. Internships and Job Rotation Programs. Offering internships or fellowships in different posi- tions within the industry gives individuals a chance to explore the industry and experience a rail- road career for a limited period of time. It encourages young people who may not have considered it without this trial opportunity to “test out” this industry. Offering internships or fellowships at a railroad is a viable recruitment technique and may lead to a larger pool of potential applicants. Survey participants from academia would like to see more support for internships and co-ops among the railroad engineering programs. They note that the number of internships has been variable each year and that more consistency is needed (Federal Railroad Administration, 2011). UP has a successful internship program that has become a successful recruitment tool. UP recruits college students for internships in the areas of corporate audit, finance and accounting, information technology, marketing, and sales (Haas, Hernandez, and Estrada, 2012). Through the development of a successful internship program, UP is simultaneously developing an inno- vative recruitment tool. Anderson et al. (2010) suggest using an internship program as a recruit- ment strategy. “Students can be brought into the system at little cost using internship programs and other developmental opportunities. The students may be groomed to take over leadership positions very early by engaging in aggressive job rotation programs during their internship or apprenticeship period” (Anderson et al., 2010). Job rotation programs can be used as another recruitment tool. Job rotation is a developmental approach where an employee works sequentially through a series of positions to cultivate varied skills and obtain extensive knowledge about the organization as a whole. Job rotation programs can

Literature Review 15 be a successful recruitment tool by exposing new employees to different positions early on. They provide the opportunity for employees to learn where in the organization their talents are best suited rather than have them contribute to the turnover rate because they were recruited for one position that was not the right fit. These programs can also be used to recruit current employees for more senior positions by offering the program to high achievers with high potential that have already worked for the organization for a period of time. Cronin et al. (2011) found that almost all of the participating organizations, both public and private, cited the use of job rotation programs. Note that job rotation may not always be feasible when it comes to craftworker positions; however, it is worth mentioning due to the benefits of this recruitment technique. These programs typically provide employees with broad-based knowledge and skills they would not otherwise have if they stayed in only one job. The practice increases the employees’ “understanding of the larger operations of the agency and [prepares them] for cross-functional roles and/or management jobs that require a great breadth of knowledge” (Cronin et al., 2011). An additional benefit to the employer is that the railroad becomes less dependent on any one individual (Cappelli, 2000). An example of this outside of the railroad industry is in semicon- ductor companies where, in response to high levels of attrition among machine operators, these companies began to certify operators on several different machines and then varied their posi- tions periodically. Cross-skilling. Cross-skilling is a technique that researchers have found to be a viable option for the railroad industry. Cross-skilling involves defining the knowledge, skills, and abilities (KSAs) needed for railroad positions that need to be filled and then comparing them with the KSAs for positions in similar industries that have an excess of employees. This comparison will determine the possibility of recruiting qualified individuals from a different industry, which will open up a new pool of potential recruits. “Cross-skilling offers an alternative solution, utilizing talent with transferable skills in the areas of the business where there is a skills surplus, or across other sectors and industries. The key to delivering a successful cross-skilling program is to specifically define the core competencies needed within the transferable skills. Cross-skilling should be properly managed through core competency ratings, technical assessments, training courses and mentoring through graduation” (Everitt, 2008). Employee Referral Program. Employee referral programs can be an advantageous recruit- ment strategy. Employee referral programs are successful for a few reasons. First, people who have long careers in the rail industry are generally content with it. Reinach and Viale (2007) found that the majority of their focus group participants shared that they would suggest, or in some cases had already suggested, a career in the railroad industry to their friends and family. Additionally, in rural areas, where there is a limited applicant pool, employee referral programs can be very effective because they provide potential employees that may not otherwise have been recruited (Reinach and Viale, 2007). Research shows that the use of employee referrals and unsolicited walk- in applications are linked to lower voluntary turnover and higher skilled applicants than those recruited through other means such as advertisements or employment agency referrals (Breaugh, 2008; Anderson et al., 2009). Employees are able to identify effective matches for jobs because they typically have more direct knowledge of the job requirements than recruiters who do not perform the job on a daily basis (Cronin et al., 2011). Individuals who are referred by someone who is already employed in the railroad/transit industry are more likely to be committed to their job and remain longer because they are already familiar with the demands and lifestyle of the job. Employee referral programs can also act as a prescreening tool. Lastly, employee referrals are also beneficial because they reduce some costs for recruiters who are often seeking new employees from cold calling or large expensive events (Cronin et al., 2011). Organizations that are having difficulty recruiting employees can look into the possibility of

16 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry coming up with a process for referring new employees, such as offering monetary compensation for referrals that are successful (Reinach and Viale, 2007; Cook and Lawrie, 2004). For example, in a related industry, a bus transit system offers a $400 incentive for new operator referrals after 6 months of employment. It is also worthwhile to note that delaying the incentive encouraged the employees to mentor new hires (Anderson et al., 2009). Job Competency Models. Developing job competency models is a technique that will help railroads successfully recruit individuals who are qualified for the job. This technique has been used by railroads and public transportation systems as well as the U.S. Department of Trans- portation (U.S. DOT) to fill many different kinds of positions. The U.S. DOT used this strategy to replace the senior staff that was retiring. The Human Resource Management department along with the Secretary’s Management Council had previously concluded that the “traditional succession-planning model, focusing on filling existing top-level positions as they become vacant, would not serve DOT well in meeting its long-term goals” (Horkan and Hoefer, 2000). The solution was to develop “the competencies, skills, expertise, and experience needed to sup- port both the departmental goals and each operating administration’s mission-specific objec- tives in terms of future functional requirements” (Horkan and Hoefer, 2000). The U.S. DOT plans to continue to place value on finding the balance between searching for new hires and developing the skills of the current workforces, while modifying both methods as appropriate (Horkan and Hoefer, 2000). Another example of innovation and reassessing job design was used by United Parcel Service (UPS). It recognized that its drivers possess an incredibly valuable skillset in the delivery busi- ness. The drivers are familiar with the nuances of their delivery routes and they have formed positive relationships with many of the customers they see on a regular basis. Hiring, training, and retaining new qualified drivers can be both a costly and time-intensive process. UPS found that driver attrition rates could be linked to the monotonous and strenuous task of loading pack- ages at the beginning of the run. It therefore removed the loading task from the drivers’ job and gave it to a new and different group of UPS workers. As a result, the turnover rate for drivers decreased radically (Cappelli, 2000). This is a prime example of the importance of understand- ing job requirements and how a simple job reassessment can positively impact turnover rates. It is important to note that the technique used by UPS was not necessarily a deliberate attempt to reduce turnover, but instead it highlighted the specific skills the company wanted to maintain. Reinach and Viale’s study (2007) found that railroads are utilizing this technique to aid with their problem of finding individuals with the right skill set. Some of the railroad workers par- ticipating in the study indicated that locating skilled workers has become more difficult recently due to the current lack of traditional high school shop classes that were present when they were students. In addition, railroads noted the issue of not being able to find individuals with the required skill sets in particular rural locations where the railroad operates (Reinach and Viale, 2007). To get around this obstacle, some railroads hire workers without the necessary competen- cies and develop training programs for their employees that train the specific KSAs needed for the jobs. Participating railroads in Reinach and Viale’s study provided examples of KSAs that their employees must possess for a lengthy, fruitful career within the railroad industry. The researchers put together a list of examples that include the ability to work independently, being amendable to changes in work scheduling and work locations, a supporting belief in corporate values, a sense of personal responsibility and commitment, computer proficiency and technological skills, to name a few (Reinach and Viale, 2007). Developing job competency models can also help with cross- skilling—a recruitment technique mentioned in an earlier section (Everitt, 2008). The Internet and Social Media. One important element to successful recruiting is know- ing where to advertise. Recruitment efforts and money can be wasted by advertising in places

Literature Review 17 that potential employees are unlikely to utilize for their job search. In general, online recruit- ment is rapidly becoming one of the fastest-growing recruitment methods (Holm, 2012). This is evident for the rail industry as well. Railroads are putting more and more information about employment opportunities on their own websites and are listing their open jobs on other websites, including job placement and railroad-related sites (Reinach and Viale, 2007). Furthermore, the majority of Class I railroads require all potential candidates for employment to apply online now. Reinach and Viale (2007) report that railroads that participated in their surveys and focus groups stated that they have made several changes recently to increase the likelihood of attracting new qualified employees, one of which includes directing people to their websites. To attract people to their websites, railroads have begun to advertise their website address on company vehicles, locomotives, and clothing. Internet-based tools have become popular as prescreening tools allowing railroads to select candidates with higher educational status. Social networking is also a growing strategy for recruit- ing new candidates: popular media include LinkedIn, Facebook, MySpace, and Twitter. Social networks present railroads with an opportunity for branding the organization as an employer of choice either through introducing itself to a new applicant pool or by dispelling and/or address- ing negative connotations that may exist regarding the employer (Sarringhaus, 2011; Wilden et al., 2010). All size organizations may benefit from Internet branding, not just large ones as is the common perception (Porter, 2011). Further, younger generations who have grown up immersed in the information age expect companies to be invested in Internet-based content and branding. Human resource personnel profess that social media are powerful tools because of the immediacy and instant connectedness that the Internet fosters. Social networks can also be used internally to let existing employees know about opportunities arising from within the organization. Vice versa, social networking can keep management abreast of new skill and interest development in their employees (Anderson et al., 2009). The Railway Association of Canada (RAC) is developing a social media–centered career web- site to attract potential railroaders and link them with prospective rail employers. Together the RAC’s Careers web page and Career Options magazine are outreach strategies that position rail as an employer of choice (Railway Association of Canada, 2011–2012). There is also a portal on the website of the U.S. Department of Veterans Affairs (VA) that assists veterans in locating employment within the transportation industry (Tarancon, 2012). Advertisements Aimed at Younger Age Groups. Researchers as well as professionals in the railroad industry have identified advertising to a younger age as a key recruitment strategy. Rail- roads suggested “job fairs, posters, working with guidance counselors, advertisements in football game programs, and other methods or programs to expose seniors to what working for the rail- road industry is about” (Reinach and Viale, 2007). However, beginning advertising at an even earlier age would be more effective. The Federal Railroad Administration includes developing a pre-K–12 engagement program as an approach to solve many recruitment challenges (Federal Railroad Administration, 2011). Current programs advertising the rail industry to a younger audience will be discussed in a later section. Railroad Retention Challenges Employee retention is a problem that is experienced at all levels and disciplines, and in both public and private sector organizations. Reinach and Viale (2007) collected responses from par- ticipating Class I railroads about their future expectations regarding retention issues for rail- road craftworkers. The variety of responses included: difficulty in making work schedules more consistent, increased retirements due to a maturing group of staff, other blue collar industries

18 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry trying to recruit the same people, inability to limit employees’ time away from home, reducing required relocations, and improved communications with employees (Reinach and Viale, 2007). Past research has shown that if individuals are going to leave the industry, it will most likely be within their first 5 years. The RRB data found in Reinach and Viale’s report and depicted in Figure 7 supports this observation. The figure shows this trend from 1999 through 2002. The withdrawal rate declines from approximately 20% during the first 30 days to about 5% follow- ing 5 years of completed service. After 5 years of employment, the average withdrawal rate stops reducing at a drastic rate, dropping from 5% at 5 years of service to 2% by 15 years of service (Reinach and Viale, 2007). There is excessively high attrition throughout the railroad industry, especially among the craft professions. According to railroads, newly hired employees may leave during the training period as a result of acknowledging a poor person–job fit. Some new hires do not completely appreciate the stress of the railroad culture day to day, until they have lived it. “Common features that many focus group participants disliked about their job included work schedules, labor–management animosity, and issues related to pay” (Reinach and Viale, 2007). Other findings included people leaving the industry because “working for the railroad industry creates a strain on family rela- tionships and has caused some focus group participants to lose friends because of their work schedules and unavailability” (Reinach and Viale, 2007). New hires may also leave before the 5-year mark; they simply do not like the demands for travel; rotating shifts; and/or that the work requires physical strength, situational awareness, and stamina (Federal Railroad Administration, 2011). Some new hires are also dismissed because they fail promotional or rules tests, fail a drug and/or alcohol test, or they exhibit an unsatisfactory performance (i.e., unsafe work habits). Anderson et al. (2009) found that it was believed by the public rail sector that employees leave because the private sector was very attractive to their employees. “They thought that the private sector promised better pay and more responsibility for similar experience in the public sector” (Anderson et al., 2009). There is also the issue of mass exodus due to retirement. Despite the poor economy, and often dwindling retirement packages and pension plans, employers recog- nize the potential number of Baby Boomer retirees as a challenge for their organizations. Source: Reinach and Viale (2007). Figure 7. Withdrawal rate by years of service, 1999–2002.

Literature Review 19 The bigger issue is that the challenges surrounding retention actually begin with recruitment. For long-term retention of employees, individuals who are suited for this type of work need to be adequately prescreened and selected to avoid individuals who are not suited for the industry. Money and effort put into retention programs will be wasted if the individual is just not right for the target position. Retention Strategies The literature regarding railroad industry employee retention offers some suggestions of practices that organizations have implemented in an effort to promote retention. Realistic Job Previews. Realistic job previews (RJPs) can be a valuable retention technique. The goal of RJPs is to provide applicants with an accurate description of both the positive and negative aspects of the position during the recruitment process to discourage uninterested appli- cants and encourage those truly interested. To increase effectiveness, RJPs should be incorpo- rated into all recruitment sources, job postings, and advertisements (Anderson et al., 2010). RJPs will clearly inform the potential candidates for employment what the position involves and requires. Some railroads have found that the more detailed and accurate the information that potential new hires are given before accepting a position, the more apt these workers are to remain employed within the company for a lengthier period of time (Reinach and Viale, 2007). When railroads were asked about any recent changes to their methods of promoting retention, placing greater importance on realistic job descriptions was mentioned. Railroads indicated that they emphasize realistic job expectations during the hiring process. The information provided in RJPs should detail what job candidates can expect in terms of their responsibilities to the company and what the company will provide in return to the candidate if he or she is hired (Anderson et al., 2010). Some options include providing RJPs in the form of videos, brochures, workplace tours, verbal presentations, and/or work simulations. It is important for organizations to understand that effective RJP approaches must be done in a way that allows for discussion and questions, if applicable. Therefore, often times what is considered a “one-way RJP approach,” such as a video or information packet, may be less effec- tive than a “two-way approach” such as a conversation between an employee and job candidate (Anderson et al., 2010; Breaugh, 2008). Employee Engagement. Making sure that employees are engaged and committed to their jobs and organization can prevent voluntary turnover. Although compensation is considered one of the top retention strategies, ultimately all it provides is an extrinsic motivation for employees to stay at a company. As a single incentive, it is a vulnerable strategy because outside businesses can match compensation. It is the intrinsic, or internal, motivation that needs to be generated and fostered by companies to ensure that not only are their employees being paid competitively but are also developing a sense of accomplishment and loyalty to their jobs. A technique for keeping associates connected to their work is loyalty to their colleagues. Although the concept of company loyalty in U.S. culture has diminished over the years, allegiance to colleagues has not. “By encouraging the development of social ties among key employees, companies can often significantly reduce turnover among workers whose skills are in high demand” (Cappelli, 2000). In this manner, when a person vacates a job, they are not only leaving their position but also leaving their core social network. Employees have a greater sense of loyalty when there is a relationship with the employee’s supervisor. “An employee’s relationship with his supervisor largely determines his view of the company” (Gary, 2004). Equally important there needs to be an emphasis behind the compa- ny’s mission, vision, and goals; if employees do not know or understand what they are working toward or for, then there is little “buy in” to accomplish their jobs. Linking institutional strategies

20 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry and priorities with personal areas of development and responsibility helps to develop the sense of intrinsic motivation employees need to maintain longevity within a company (Clawson and Haskins, 2011). Retention strategies are most successful when the business places its people as its top priority. Anderson et al. (2009) report several employee engagement techniques that were mentioned by railroads during focus groups and surveys. Engagement surveys are used by railroads to deter- mine how engaged current employees are in their jobs. Employee engagement surveys typically measure organizational commitment, job satisfaction, and organizational citizenship behaviors. The results of these surveys identify areas in which the organization can improve and help create an action plan. Another technique to promote retention is creating a high-potential workplace. Organiza- tions should create a working environment where employees feel that they can contribute, that their voice is heard, and that they are working with other high-potential employees. This type of environment will likely make the employees feel engaged and can decrease their likelihood of leaving (Anderson et al., 2009). Employee appreciation is another retention strategy. One rail- road discussed its weekly newsletter that details stories about employees who have gone above and beyond in their jobs. (Reinach and Viale, 2007). Organizations can also recognize employee involvement. By recognizing employee contributions, organizations show their commitment to increasing employee involvement and ownership. Clear definition of career path is important for improving job satisfaction, employee moti- vation, and employee commitment (Griffin et al., 2000). Employees are less likely to leave if opportunities for growth are made available within that organization. Leadership programs are important in this regard. An example program at one railroad defined the type of leadership that the organization wanted in top roles and then identified high-potential junior-level employees. These junior employees were then involved in a development program that involved a succes- sion plan to clearly lay out their career paths. In another organization, recent college graduates were used. The graduates were brought on board for a 12-month rotational program through many of the organization’s departments. At the end of the year, the graduates were promoted. Some individuals from the graduating class are now in managerial roles within the company. Employee engagement can also take the form of mentoring and training programs. “Indi- viduals who have spent at least a few years on the railroad are encouraged, with union support, to mentor new hires and teach them not only the technical matters of the railroad, but also the railroad culture. This has helped to assimilate new hires into the railroad at a faster pace, thus reducing the likelihood of turnover within the first 5 years” (Reinach and Viale, 2007). This is true not only for craftworkers but also for managers as well. Studies suggest granting manag- ers some autonomy for identifying the types of training and development opportunities they would like to engage in (Anderson et al., 2010). If interesting and useful courses are offered to managers in addition to any required training, they will view the employer as one that “cares” about its staff and may be more inclined to stay with the system. Training should be considered a business strategy that focuses on interventions for (Eno Transportation Foundation, 2008; Anderson et al., 2010): • Making connections between the business goals of the company and employee education, • Improving upon workers’ output, and • Assisting the trainers to learn new skills so they may succeed in their new roles. Hiring from Within. Another employee retention practice is hiring from within the organi- zation. In some organizations, when a supervisor leaves the organization, their highest potential

Literature Review 21 subordinate is promoted into the position. This sets off a similar chain of promotions until an entry-level position is left vacant. With this method, the hiring manager and recruiter are respon- sible for filling a lower skill level (e.g., entry-level) position instead of a skilled super visor position. The organization reports there is less risk and a larger applicant pool at the lower level, making it easier to fill the position. Furthermore, after examining the results of many different turnover studies, it illustrated that promotions given to existing employees is directly related to a decrease in overall employee attrition (Carson et al., 1994). To prepare employees for advancement, employ- ers need to implement structured employee development practices (Cronin et al., 2011). Competitive Benefits and Incentives. Some people choose to leave the railroad industry to seek higher compensation elsewhere. In many cases, railroads do not have the flexibility to increase compensation for their craftworkers due to collective bargaining agreements that govern pay scales (Reinach and Viale, 2007). An example is conductor pay. Conductors begin by making 75% of their full salary, reaching the full 100% of their salary after successfully finishing 5 years of employment. It should also be noted, however, that collective bargaining agreements can also be a benefit because pay scales are set through negotiation. Thus, while at times a collective bargaining agreement can be seen as an obstacle to offering desirable pay, other times these agreements assist in securing competitive wages for employees. Correspondingly, public transit systems may be unable to pay managers as much as other government, private sector, and transportation industry competitors (Anderson et al., 2010). To combat the problem of employees facing reduced or only slightly increased compensation, railroads can offer other incentives that will hopefully retain their employees. This issue is being addressed by some organizations with increased perks such as take-home vehicles, free cell phones, and safety equipment (Vogel, 2001). In Reinach and Viale’s study (2007), they note several new practices that railroads are establishing to promote retention. One promising practice was tuition reimbursement for National Academy of Railroad Sciences (NARS)–trained conductors. In this program, the railroad reimburses the employee for up to one-third of the tuition fees each year for 3 successive years, as long as the employee possesses a satisfactory record of employment. Other practices that railroads are working on include trying to abandon the incremental pay stages for certain positions in the industry (Reinach and Viale, 2007). Cronin et al. (2011) find that organizations have begun to supplement their traditional benefits with innovative bonuses such as offering telecommuting ability (working from home), schedule flexibility, and job autonomy. Employees might see these benefits as a reason to remain with the organization even though they have an opportunity to make more money elsewhere. Some orga- nizations indicated that an effort to redesign their benefits programs by including tuition reim- bursement, technology training, and schedule flexibility helped to retain their younger workers (Cronin et al., 2011). In Anderson et al.’s study (2010), railroads noted that upper managers tend to stay with an organization because they are invested in the retirement system. Thus offer- ing a competitive retirement package can be an effective retention tool as well. Participants in Cronin et al.’s study (2011) also mentioned retirement benefits as a strong solution to retention challenges. Railroads can also offer a better work–life balance as an incentive to remain with the railroad. Work–life balance programs are typically designed to address challenges associated with assisting employees in maintaining their work and personal responsibilities (Cronin et al., 2011). Incen- tives that improve work–life balance can include improving existing work schedules, reducing forced relocations, and offering rewards in the form of days off. To ensure that their work–life programs cover a range of employee needs and interests and are aligned with employees’ needs, organizations should conduct a thorough needs assessment. This needs assessment will also

22 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry ensure that money and human resources (HR) are not being wasted on creating innovative yet ineffective practices (Cronin et al., 2011). Employees are looking for a work environment that does not infringe upon their life outside of work. One practice that organizations are utilizing is analyzing how work is distributed and how schedules are designed among their employees (Cronin et al., 2011). Employee feedback has informed organizations that typical and predictable work schedules are more appealing. Specifically, organizations have received feedback that “one of the reasons employees choose to stay employed with them is that they are not expected to work more than 40 hours in a week and that they can expect to work approximately 8 hours in a day if working 5 days a week” (Cronin et al., 2011). Reinach and Viale (2007) has similar findings in terms of work–life balance programs that organizations are implementing. An example program that was provided established conduc- tors’ and engineers’ work schedule predictability. Additionally, railroads are trying to reduce forced relocation. This involves employing more local hires as a recruitment strategy. It was also reported that railroads are making mandatory transfers more manageable for the workers who must relocate by providing assistance in the adjustment to moving to a new location. Rail- roads also reported improvements to the working conditions and atmosphere, including more emphasis placed on work/rest issues, enhancements in the locomotive cab setting, cleaner work- ing environments, access to health and wellness centers as well as childcare, and also healthier options in vending machines (Reinach and Viale, 2007). Utilizing Older Workers. Statistics are revealing a new trend of older employees opting to continue working in the labor force instead of retiring. This trend can be seen in Figure 8. In 1994, nearly 12% of the workforce was listed as over the age of 55. This percentage changed to 15.6% in 2004 and was predicted to surpass 21% in 2014 (Toossi, 2005). Middle and older age groups were expected to exceed the amount of younger workers as the Baby Boom gen- eration reached ages 45–64 by 2010. This suggests that older workers must either have a need, or at the very least, the desire to remain in the workforce past what was once considered a standard retirement age. However, it is necessary to consider the impact of the natural aging Source: Reinach and Viale (2007) Figure 8. Percentage of U.S. railroad employees aged 55 and older, 1997–2004.

Literature Review 23 process on job competencies and this is particularly true for safety-critical positions (Popkin et al., 2008). International Workforce Development Initiatives A review of existing literature on workforce development initiatives in the international trans- portation industry was conducted in an effort to glean an understanding as how these challenges have been addressed abroad. There are several operational and cultural differences that do not allow those initiatives to be directly transferrable to the U.S. rail industry; however, there are important lessons learned that can inform future recruitment and retention practices in the United States. It should be noted that workforce development is an area of overlap in terms of recruit- ment and retention efforts as well as education and on-the-job training. As a result, there may be some overlap in the subsections that follow; however, the research team believes all the infor- mation in this report to be pertinent, and thus should not be omitted so as to fit neatly into one category. Included in this review is transit, as the transit industry identified workforce develop- ment initiatives that provide useful information and practices applicable to the rail industry. Key International Agencies International Transit Studies Program The International Transit Studies Program (ITSP) is a U.S. initiative examining international agencies. Part of the Transit Cooperative Research Program (TCRP) and overseen by the Trans- portation Research Board (TRB), ITSP was funded by the Federal Transit Administration on an annual basis from 1994 to 2013 (TRB, 2014). Every year, two ITSP research projects were conducted on themes related to public transpor- tation. In the fall of 2007, the theme was “Innovative Practices in Transit Workforce Develop- ment,” focusing on Canada, France, and Belgium. This theme was chosen because the United States was, as it is now, facing substantial transit workforce challenges and sought to gain valu- able awareness of how agencies abroad have successfully addressed this same challenge (Eno Transportation Foundation, 2008). The results of the Innovative Practices in Transit Workforce Development project are presented throughout the remainder of this section on international workforce development initiatives. Motor Carrier Passenger Council of Canada The Motor Carrier Passenger Council of Canada (MCPCC) was founded in 1999 as a Sector Council Program of the Canadian federal government to address human resource challenges in the Canadian bus industry. The agency spearheaded a nationwide study, “On the Move,” in an effort to address the market for and the responsibilities of the passenger transit industry in Canada. This study “identifies workforce demographics, skill and competency requirements, occupational supply and demand, key HR challenges, selected best practices, and the impact of technology and the business environment on human resources. Key findings of the study highlight sector growth; potential skill gaps and deficiencies due to large numbers of anticipated retirements as well as difficulty in recruiting new employees possessing requisite skills; increas- ing costs of training; shrinking labor pool of qualified resources; and accessibility to training” (Eno Transportation Foundation, 2008). As a result of “On the Move,” MCPCC created and put into practice several policies and publications to address these challenges. For instance, MCPCC began collaborating with tran- sit professionals on the National Occupational Standards for Bus Operators, which has made the position of bus operator a profession with nationwide standards that inform training and

24 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry certification programs. Furthermore, MCPCC initiated certification and accreditation programs for bus operators that will assist individuals in finding valuable and trusted programs that will enable attendees to be more attractive to agencies, and in turn, these transit agencies, and the public, will benefit from a skilled and knowledgeable workforce. They have also advocated for an increase in apprenticeship programs, such as the Red Seal Occupation Group that allows apprentices to learn a valuable skill while earning wages and contributing in a meaningful way to their employers (Eno Transportation Foundation, 2008). MCPCC also led The Bus Council’s Comprehensive Approach. This effort was conducted to gain deeper insight into the state of Canada’s transportation workforce as well as to identify the needs of the industry for the future. Some key findings include the importance of the transit industry working in collaboration with government and other relevant industries, such as aca- demia and manufacturers, to promote industry status and continued growth and development. Illustrating technology and the importance of innovation, in addition to highlighting the posi- tive implications for the environment is key for the growth of the transit industry, as is providing passenger safety and excellent customer service for all of society’s members (Eno Transportation Foundation, 2008). Canadian Urban Transit Association The mission of the Canadian Urban Transit Association (CUTA), founded in 1904, is to enhance and continuously improve the public transportation system in Canada. Part of CUTA’s mission is to encourage the federal government to promote and contribute to the success of the transporta- tion industry through public policy. CUTA boasts programs that are focused on strengthening the transportation workforce and have hosted several different youth summits (Eno Transportation Foundation, 2008), most recently in May 2013. These programs will be discussed in more detail later in this report. Association du Transport Urbain du Quebec The Association du Transport Urbain du Quebec (ATUQ), a partnership of several transit agencies in Quebec, identified the key workforce challenges they are facing as training, applying skills learned in training to basic day-to-day operations, advancements in and integration of technology, and finally the significant amount of ATUQ employees reaching the age of retire- ment. ATUQ made training for front-line management first priority by looking to universities for assistance in this matter. Laval University was chosen because of a strong reputation for business management skills and teaching students how to put into practice what is learned in the classroom. Five topics highlighted in course work were “(1) labor relations, (2) day-to- day management, (3) defining the role of the front-line manager, (4) communications skills, and (5) change management” (Eno Transportation Foundation, 2008, p. 13). The training was reported to be successful in the level of engagement by participating agencies, networking oppor- tunities, the focus on putting into practice what was learned in the classroom, actual improve- ments in management back on the job, cost efficiency, and strong leadership by the trainers. Suggestions were made to Laval University to tailor future course work to be specific to transpor- tation management as well as to address how the size of an agency affects the management skills needed (Eno Transportation Foundation, 2008). International Association of Public Transport The International Association of Public Transport (UITP) is a worldwide agency based out of Brussels, serving primarily Europe’s transit needs. UITP business leader Petra Mollet identi- fied several workforce challenges her organization is seeking to address including safety while on the job, specifically violence from passengers and concerns of terrorism in several European countries, which can pose a challenge to recruiting and retaining workers (Eno Transportation Foundation, 2008).

Literature Review 25 Veolia Transport Veolia Transport is a leading transit service provider throughout the world, with a strong base in Bordeaux, France, that supplies bus and light-rail services to the area. It places a high value on both training and communication. An extensive corporate training programing, known as Veolia Environment Campus, allows for in-depth training for all employees interested in acquiring new skills, career development, and management training (Eno Transportation Foundation, 2008). Swedish National Road Administration The Swedish National Road Administration (SNRA) falls under Sweden’s Ministry of Industry, Employment, and Communications and is an authority of the nation’s road transport system that tasks itself with providing a skilled workforce to the transit agencies in the country. HR director Lena Rosen indicates that SNRA spends a great deal of time finding the right people for open posi- tions at the agency and one of the key attributes they look for in a candidate is a positive attitude (Rahn et al., 2003). Recruitment Efforts Recruitment Challenges Aging Workforce. Transit industries across the globe appear to be facing challenges due to aging workforces. Changing demographics and a fast-approaching wave of employees retiring from transit workforces appears to be a worldwide theme. In Canada in particular many of the railroad industry’s members are close to retirement age. At the same time, Canadian transit offi- cials have stated there is an increased need for freight and passenger transportation at a national level. This is even further complicated by staff reductions during recent periods of nationwide recession (Railway Association of Canada, 2011–2012). They anticipate competition for employ- ees from the oil sands of Alberta, which can pay quite well with entry-level wages starting around $25/hour (Eno Transportation Foundation, 2008). Generational Differences and an Outdated Public Image. Agency managers in both Montreal and Toronto have indicated that the younger generations entering the workforce now place a greater level of importance on work–life balance than the country’s prior generations, making the transit industry a less desirable career now (Eno Transportation Foundation, 2008). In an effort to recruit younger workers with an updated image, RAC launched a campaign in May 2011 designed to emphasize the railroad industry’s qualities and “attract a younger demographic that might not otherwise consider a career in rail. Based on four communications pillars—enabler of the economy, a green solution for the environment, safe, and innovative—these themes and messages [were] designed to attract a younger, environmentally conscious and technology-savvy workforce” (Railway Association of Canada, 2011–2012). Railroads have features that, if advertised correctly, should draw the interest of young people. They have an environmentally friendly reputation and make extensive use of high-tech equipment. Rail is the most efficient transportation system in the world. It uses less energy, reduces pollution, lowers greenhouse gas emissions, and cuts traffic gridlock. The industry continuously looks for ways to be more efficient by investing in technology. The rail industry emphasizes innovation, using the newest and most advanced technology. These features would be appealing to members of the younger generations, but they are not well-known. Railroads need to advertise these features in the right domains to attract the younger workers (Railway Association of Canada, 2011–2012). Recruitment Techniques Railroads can employ several recruitment techniques in order to recruit the most qualified and diverse pool of applicants.

26 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry Improved Image of Transit Industry. Increasing the accuracy of the public image of the transit industry will ensure that younger workers see it as an innovative and ecologically sound option with a commitment to employee development. The MCPCC was founded in 1999 as a means of addressing human resource challenges in the bus industry of Canada. It strives to enhance the public image of the bus industry in Canada by strengthening HR policies and procedures, acknowledging employees’ successes, offer- ing educational and training resources, and creating industry standards (Eno Transportation Foundation, 2008). The image of the transit industry has been improved, particularly in Europe, through a shift in focus to the environment, in addition to sustainability initiatives. In Canada, Quebec transit agencies worked on advertising transit careers as environmentally conscious while stressing the importance of technology to recruit younger people looking to begin employment (Eno Transportation Foundation, 2008). Furthermore, the Société de Transport de Montreal (STM) implemented the Green Plan, a program put into place by the Quebec government to inform environmental policies throughout the nation. These efforts not only benefit the environment, but also boost the public image of the industry and therefore enhance it as a potential career to the environmentally conscious younger generations (Eno Transportation Foundation, 2008). RAC indicates that the first step in hiring a qualified workforce is to strengthen the reputation and profile of the transportation sector as a valued source of employment, especially in the eyes of the nation’s youth as they prepare to enter the workforce. As a means of accomplishing this task, RAC hired Colleen Walsh, an HR expert, to lead several vital HR leaders in the industry in a workforce development initiative. This analysis-driven assessment will work toward gaining an understanding of the changing needs of the rail industry workforce, while strengthening the public image of the railroad industry so as to address the issue at hand. Furthermore, this initia- tive focused on modifying the image of the railroad industry through four key areas: environ- ment, economy, innovation, and safety (Railway Association of Canada, 2011–2012). Address Generational Differences and Attract at a Younger Age. Quebec transit agencies will begin to work on advertising transit careers as environmentally conscious, while stressing the importance of technology to recruit younger people looking for employment (Eno Trans- portation Foundation, 2008). CUTA organized partnerships with 27 primary schools in Ontario though the Ministry of Education in an effort to introduce the transportation industry to students at a young age (Eno Transportation Foundation, 2008). It also periodically sponsors youth summits, most recently on sustainable transportation in Calgary, Alberta, in May 2013. The summit provided attendees with an opportunity to “learn about regional transit and sustainable transportation issues and opportunities [and] explore career possibilities in public transit and other sustainable transpor- tation fields.” Featured activities included technical tours of local transit facilities and sessions led by industry experts as well as a DJ dance party aboard a chartered light-rail train (Leading the Way Youth Summit, n.d.). GO Transit has a “Bring Students to Work Day” where, starting in the 9th grade, students can shadow workers to gain exposure to work in the transportation industry (Eno Transportation Foundation, 2008). Vice President of RAC Bruce Burrows acknowledges that the recruitment process can be dif- ficult, particularly because the general population and especially the younger generations may not be aware of the industry’s importance to the economy, the environmental benefits of using rail versus other modes of transportation, the applied use of innovation and technology, and the overall progressive qualities of the industry as a whole. Increasing awareness of these factors will

Literature Review 27 be vital in successfully recruiting young people as well as more experienced workers looking for a new career. Walsh acknowledges a departure from the rail industry’s prior culture of workers recruiting their children to join the workforce, stating that “Young people are not inclined to follow those kinds of traditions anymore” (Railway Association of Canada, 2011–2012). RAC has also begun to advertise in Career Options magazine, which targets young readers through free distribution to high schools and community colleges. The magazine has a quick- response scan code that directly links to RAC’s Career on Track website, which will connect users with employers in the railroad industry looking to hire. The website will also feature a daily blog written by several rail engineering students as well as a career adviser. The Career on Track website will also list available pre-employment training programs and display comments from the current workforce so as to paint a clearer picture of what working in this industry really looks like (Railway Association of Canada, 2011–2012). Academic Partnerships, Internships, and Apprenticeships. RAC has already partnered with five community colleges (George Brown–Toronto, Confederation College–Thunder Bay, Red River College–Winnipeg, Southern Alberta Institute of Technology–Calgary, and the British Columbia Institute of Technology–Vancouver) to offer a pre-employment conductor program, which the organization wishes to build upon in the workforce development program led by Walsh. The hope is that this effort will better position the colleges to prepare potential new hires with strong skills, knowledge, and abilities through creating industry-wide standards, beginning by teaching these standards through course curriculum. RAC is also starting to reach out to high school students who previously may not have been aware of the railroad as a viable career option (Railway Association of Canada, 2011–2012). The Toronto Transit Commission (TTC), the largest transit system in Canada, includes subways, buses, streetcars, and paratransit services in its network. The Director of Employment Services Christine Jeffries notes that TTC is currently collaborating with local high schools and commu- nity colleges to introduce courses related to the transportation field and attract younger workers. They are also working with two different internship programs, “Career Edge,” a 6- to 12-month internship for college graduates, and “Career Bridge,” also a 6- to 12-month internship offered to individuals who have received degrees outside of Canada. TTC is also working with universities and taking part in co-op programs in the hopes of building strong candidates to hire in the future (Eno Transportation Foundation, 2008). Due to the anticipation of an increased retirement rate in the next few years, Régie Autonome des Transports Parisiens (RATP) is starting to recruit people as young as 14, by partnering with academic and professional institutions and offering career opportunities post-graduation. For instance, “[in] 2006, 224 non-graduate youths signed employment contracts in operations and management. Another 170 contracts were signed in the skilled professions” (Eno Transportation Foundation, 2008). Job Competency Models. England’s Department of the Environment, Transport, and the Regions is an umbrella organization to several agencies, including the Highways Agency. A 10-year transport policy was issued in England allowing the Highways Agency to establish sepa- rate business, corporate, and management objectives as a means of improving agency function- ality. These objectives focus on goals and budget, upcoming changes and updating the agency, and personal and professional development plans, respectively. These new policies helped the Highways Agency become more focused on excellence in people, rather than solely focusing on engineering and technologies (Rahn et al., 2003). As part of striving for employee excellence, the Highways Agency distributes “Planning for Success” folders to personnel. These folders contain four components. First is the “Core

28 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry Competency Framework,” which lists the abilities and behaviors one must possess to have a suc- cessful career at the agency. Second is the “Notes for Guidance for Completion of Performance and Development Plans,” which includes the rationale for and guidelines to complete a person- alized performance and development plan. Third, the “Performance and Development Plan” subfolder gives “clearer job expectations, setting what is expected in terms of output (objectives) and behavior (competence)” (Rahn et al., 2003). Fourth, the “Voluntary Self-Assessment Form” is for employees to fill out on their own (Rahn et al., 2003). The Hiring Process. STM executives Serge Fortin and Catherine Favron indicated that the Quebec Ministry of Education partnered with STM to provide a pre-hire training program for bus drivers. This program is funded by the Ministry of Education, spans 6 weeks, and has improved the level of training as well as the quality according to STM. In return, STM is obliged to hire students who have successfully completed training by evidence of certification. They must also pass a rigorous selection process after receiving certification from the pre-hire training pro- gram for bus drivers. Thus, the process entails not only certification from the Ministry of Edu- cation, but also passing a driving test and customer service assessment. Once these criteria are met, the applicants continue to an interview where they are screened for three things: experience, motivation, and behavior. Fortin and Favron indicate that 75% of those applying for bus driver positions at STM are hired after making it through their selection process. These new employees are now able to receive refresher training when needed because of the STM and Quebec Ministry of Education partnership (Eno Transportation Foundation, 2008). Veolia Transport is a leading transit agency worldwide with a strong base in Bordeaux, France, that supplies bus and light-rail services to the area, and it places a high value on both training and communication. Veolia describes its hiring process as in-depth, beginning with high vis- ibility at local job fairs, placing advertisements in local newspapers, and encouraging employees to discuss job opportunities within their communities. In their training procedures, new hires attend a month-long course, followed by hands-on training for a week, and are assessed by an exam of 20 challenging questions. Once workers begin at Veolia, they are placed on the Extra Board and must take part in a 3-week training program to learn their specific route and other essential information in operating the machinery. If they are assigned a different route, they must attend another 1- to 3-day training course prior to working that route. After 9 successful months on the job, they become “regular” employees and are represented by a labor union (Eno Transportation Foundation, 2008). RATP boasts a five-step hiring process, which has been reviewed positively by applicants. The first stage of the process is the initial screening of applications. It should be noted that due to the Diversity Charter signed by RATP in 2004, all applications are made anonymous—without name, photo, or other identifying information—to ensure non-discrimination and equal oppor- tunity of applicants. Once applicants are screened in, the next four phases include a cognitive test, personality test, briefing on company standard policies and procedures, and tests related to the specifics of the job at hand. The last stage involves interviewing with management. Family are encouraged to attend the information session about the company in an effort for applicants to determine if working at RATP would be a good fit, personally and professionally (Eno Transportation Foundation, 2008). Second Careers. The railroad industry may not be attractive to younger people looking for a career, but as they mature, the stability and benefits of this industry become more attrac- tive. This tactic opens another pool of prospective recruits. To address the recruitment issue in Canada, railroads are aiming their advertising at older individuals looking for new careers as well as men and women looking for a post-secondary school education (Railway Association of Canada, 2011–2012).

Literature Review 29 Retention Efforts Veolia Environment Campus Social Observatory The Veolia campus also boasts a “Social Observatory,” founded in 2001, which observes and analyzes the social, economic, and cultural needs of the company and workforce. The Social Obser- vatory works with local research programs and universities to collect information through surveys, new programs, and conferences on relevant issues. These efforts have resulted in an awareness of differences between young people entering the workforce and those who are aging out of the workforce. These include the ever-increasing diversity of the workforce and the growing desire for workers to change companies as they advance in their careers. The Social Observatory has also cataloged difficulties that transit workers face due to the nature of their work. These include high divorce rates, familial discord due to non-traditional work schedules, and being “geographically single—living in one place during the work week and reunited with family on the weekend” (Eno Transportation Foundation, 2008). As a result of these efforts, HR departments have put into place a number of social initiatives in an effort to empower Veolia Transport’s workers to improve their environments, both at home and on the job (Eno Transportation Foundation, 2008). “Wind Down” Program TTC’s innovative “Wind Down” program was established in response to a significant number of employees reaching retirement. TTC offers to re-hire retirees on a part-time basis to impart the knowledge acquired over the span of the career to newer hires. Wind Down has proven to be a cost-effective program to transmit knowledge gained by experience (Eno Transportation Foundation, 2008). Labor–Management Relations and Mentors Motor Carrier Passenger Council of Canada. MCPCC also led The Bus Council’s Com- prehensive Approach. This effort was conducted to gain deeper insight into the state of Canada’s transportation workforce today, as well as identify the needs of the industry for the future. Some key findings include the importance of the transit industry working in collaboration with gov- ernment and other relevant industries, such as academia and manufacturers, to promote indus- try status and continued growth and development. Illustrating technology and the importance of innovation, in addition to highlighting the positive implications for the environment, is key for the growth of the transit industry, as is providing passenger safety and excellent customer service for all of society’s members (Eno Transportation Foundation, 2008). Société des Transports Intercommunaux de Bruxelles. The Société des Transports Inter- communaux de Bruxelles (STIB) is looking to retain current knowledge while revamping its organization for future success. Initiatives began with fostering mentor relationships between seasoned and new employees while attempting to unite these workers despite potential genera- tional differences by forming a new agency-wide culture. STIB also began a new program to train potential managers and is conducting internal discussions for all employees focused on changing company culture in a positive manner. STIB has also implemented a “value-based management” system “using classic tools such as customized position descriptions, job classifications, and per- formance appraisal standards” (Eno Transportation Foundation, 2008). From these initiatives, “competency data—including managerial skills and customer-oriented behaviors—will serve as a reference for use in making hiring and promotion decisions, planning for succession, and classifying jobs” (Eno Transportation Foundation, 2008). Certifications and Training An employer with a professional image is more attractive to prospective employees and is better able to retain its current workforce because employees are more apt to feel pride in

30 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry their employer when they are viewed as professional. CUTA developed SmartDriver, a program aimed at increasing safety while reducing fuel consumption and emissions and increasing pas- senger well-being and care. This 2-day workshop aimed at bus drivers teaches advanced driving skills that decrease harmful effects on the environment. After completion of this program, driv- ers showed a 10.3% reduction in fuel consumption. Benefits from the program included less tox- icity to the environment and increased passenger comfort and satisfaction. Furthermore, CUTA states the SmartDriver program enhances the professional image of transit workers, which in turn allows the workers a sense of pride in their career (Eno Transportation Foundation, 2008). Professional certifications, such as the National Occupation Standards, has led to an increased professional image of the transit industry (Eno Transportation Foundation, 2008). Benefits and a Culture of Well-Being RATP offers many benefits to employees, including competitive wages, health care coverage for employees and their families, as well as a national pension, and workers’ compensation. Perhaps as a result, their attrition rate is notably low (Eno Transportation Foundation, 2008). Regular employees of RATP belong to different labor unions. These labor unions, as in the United States, are in place to represent the best interests of the workforce. In an effort to improve labor and management communications and relations, RATP has put into place a “social alarm” policy, which allows any issues to be addressed immediately through the three-step process of first discourse with a general manager, then addressing department-level heads, and finally going to the unit-level head. ITSP participants found this process to be similar to the U.S. grievance process; however, the social alarm policy seems more spread out across different levels (Eno Transportation Foundation, 2008). To address the goal of improving the well-being of employees, RATP managers are joining forces with local doctors and health care professionals to offer programs aimed at promoting healthy lifestyles. In addition to helping employees enjoy living healthfully, another goal of this initiative is to reduce sick absences (Eno Transportation Foundation, 2008). SNRA shared information gleaned from exit interviews on what plays a role in contributing to job satisfaction for employees. Being able to organize, or having control over, one’s own work was listed as most important. Other key factors included benefits such as competitive salary, vacation time, and opportunities to receive education, as well as working as part of a team with good co-workers, enjoying oneself at work, and contributing to society by being a part of some- thing significant (Rahn et al., 2003). NCC International is a privately owned company focused on property development and prides itself on understanding the importance of having fun in the workplace in order to retain an experienced workforce. The agency describes itself as a “young, exciting company in which the focus is on innovation, participation, and the expertise of each employee” (Rahn et al., 2003). NCC International also has recognized the importance of engaging students at a young age in an interest in civil engineering, while also advertising itself as a potential employer to universities. Hans Grimmig GmbH is a small, family-operated construction company located in Germany. The company says that, in a competitive job market for recruiting skilled workers, they succeed because they make an effort to let candidates know that every employee is respected and treated like family. In discussing the values of the company, Dieter Grimmig states, “Our main goal is to instill staff with the notion that they don’t go to work, but rather go to their company” (Rahn et al., 2003). Besides fostering a strong culture of community, they also offer attractive benefits, including profit shares and company cars, to their employees.

Literature Review 31 Lessons Learned A review of existing literature on the international transit workforce yields several noteworthy results. Included in these findings are some similarities and differences in workforce challenges, in addition to lessons learned. Though not everything learned will be easily incorporated into the workforce development efforts put forth by the U.S. railroad industry, certainly, these findings can inform future recruitment and retention practices in the United States. Similarities exist between workforce development challenges and efforts of the United States and other countries reviewed. First is the need to improve the public image of the transit industry so that attracting a strong workforce is possible. The changing demographics and values of the workforce was also a common theme, especially the fast-approaching wave of retirement for a significant portion of the international transit workforce. All countries found themselves looking either to retain that knowledge base or to hire new skilled workers that would be easily trained through new program initiatives (Eno Transportation Founda- tion, 2008). A few noteworthy differences in workforce initiatives between the United States and other countries exist. One important factor is the higher wages paid to Canadian workers. It should also be noted that “fare collection ratios appear to be generally higher in Canada than in the United States” (Eno Transportation Foundation, 2008), thus perhaps leading to higher wages for Canadian workers. Another difference between transit agencies in the United States and Canada is the relative cost of health care. In the United States, employers hold the responsi- bility of offering health care to their workforce, whereas in Canada, the federal government provides basic health care for all residents, in addition to Canada’s relatively new Compas- sionate Care Leave program. This government-funded program, beginning in 2004, allows people time off from work without loss of job or pay in order to care for sick family members. Government funding for transit industries also differed on the international level. For instance, the national transport tax based on capital and employee wages and paid by French employers to their nation’s transit systems largely differs from the funding the U.S. railroad industry has (Eno Transportation Foundation, 2008). Through this funding, agencies like RATP were able to put many remarkable policies and procedures into place in an effort to address identified workforce challenges. There is a lack of any comparable monetary aid available to similar transit agencies in the United States (Eno Transportation Foundation, 2008). Internationally, it appears students are exposed to the possibility of a career in the transit industry at a younger age than their U.S. counterparts. For instance, partnerships made with secondary schools, as well as universities and other academic institutions, in Canada and France proved to be significant in promoting the industry to students who otherwise may be unaware of this potential career path. The United States can learn from other nations introducing their youth to the transportation industry at the primary school level in an effort to promote careers and life-long passions in rail. The Canadian transit industry has also been successful in workforce development efforts through combining government, business, and labor under the umbrella of MCPCC. Through these collaborations, national standards can be established, therefore reducing costs to both government and agencies. Studies compared this model to the practices in the United States, where often standards are developed at a state or local level, thus increasing costs to government and agencies because of duplicated efforts and isolated training protocols. A comparison of U.S. and Canadian workforce initiatives can be seen in Table 2.

32 A Guide to Building and Retaining Workforce Capacity for the Railroad Industry Through a review of the international efforts in transit workforce development, one common theme was heard repeatedly. Workforce planning and development must be an integral part of an organization’s strategic and business planning processes. Investing in the human capital of an organization must be a bottom-line item for all organizations, just as important as product and service development and delivery” (Rahn et al., 2003). Achieving this goal is imperative to the transit workforce’s future, both here in the United States and abroad. Workforce Initiative Current U.S. Approach MCPCC Model Labor & Management Partnership for Attracting and Developing Transit Employee State & Local National Career Ladder Programs State & Local National & Provincial Partnerships with Transit and Universities for Training State & Local National & Local National Certification of Transit Positions No Yes National Occupational Standards No Yes Sector Based Tripartite Forum for the Advancement of Transit Training & Certification Programs No Yes Source: Eno Transportation Foundation (2008). Table 2. Comparison of U.S. and Canadian workforce initiatives.