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Industry HR Best Practices
 for managing an aging work force

School of Nuclear Knowledge Management
Trieste, Italy
September 2007

        Presentation by Ed Boyles
Agenda


1            HR Issues


2        Aging Work Force


3     Access to Best Practices


4    Examples of Best Practices


15         Observations
HR Issues
               Playing a Strategic Role

                                           Competitive Business Focus
Recruiting and In-processing

                       Human Resource
                        Organizations Aging Work Force
Leading Change Management

                                             Mergers and Acquisitions

                     Outsourcing low value functions
The Aging Work Force
The aging nuclear work force is a well recognized
challenge in the industry.

The 2005 work force survey by the Nuclear Energy
Institute projects approximately 40 percent over 5 years
for the U.S. nuclear work force.

The aging work force is a major impact on the
international nuclear industry, however, other factors
should also be considered, for example:
   Rapid growth and experience dilution
   Political decisions to reduce reliance or to phase out nuclear
   power
   A combination of aging work force and future growth
Many nuclear organization are in various stages of efforts
to address the challenge.

Many HR organizations are not prepared.
The aging work force is now

                                                                                                                                                                                                                                       Southeast
                                                                                                                                                                                                                                 Skilled Labor Demand
                                                                     80%
                                                                     70%
                                                                     60%                                                                                                                                                                                                                                   Skilled Labor
                                                                                                                                                                                                                                                                                                                                          Union
                                                                                                                                                                                                                                                                                                                                                               Non-
                                                                                                                                                                                                                                                                                                                                                                                 TOTAL
                                                                                                                                                                                                                                                                                                           Classification                                     Union*
                                                                     50%                                                                                                                                                                                                                                   Boilermakers and
                                                                                                                                                                                                                                                                                                                                           9,500               12,498             21,998




                                                                                                                                                             Skilled Labor (all crafts)
                                                                                                                                                                                                                                                                                                           Tube Welders
                                                                     40%
                                                                                                                                                                                                                                                                                                           Pipefitters and
                                                                                                                                                                                                                                                                                                                                          10,100               28,050             38,150
                                                                     30%                                                                                                                                               Current estimated total supply                                                      Combo Welders
                                                                                                                                                                                                                                                                                                           Iron Workers                    6,500               6,622              13,122
                                                                     20%
                                                                                                                                                                                                                                                                                                           Millwrights                     7,600               7,385              14,985
                                                                     10%                                                                                                                                                                                                                                   Electricians                   10,300               11,394             21,694

                     30%                                              0%                                                                                                                                                                 30%                                                               Carpenters
                                                                                                                                                                                                                                                                                                                         25.1%             2,306
                                                                                                                                                                                                                                                                                                                                        24.2%
                                                                                                                                                                                                                                                                                                                                                               3,037              5,343




                                                                                                                               s %
                                                                                                                             1%
                                                                                                                      gi %
                                                                                                                                                                                                                                                                                                           Insulators                      874                  333               1,207




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                                                                                                                                                                                                                                          5%   0.3%                                                                                                                   0.9%
                                                                                                                                                                                                                                                                                                                 *Non-union estimates reflect an adjustment for workers                       0.1%
         Employees




                                                                                        16
                                                                                                                                                                                                                                                                                                                   counted in both union and non-union pools


                                                                                       16
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                                                                             .7%
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                                                                          13




                     15%
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                                                                                                                                                                                                                                                 18



                                                                                                                                                                                                                                                               23



                                                                                                                                                                                                                                                                              28



                                                                                                                                                                                                                                                                                               33



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                                                                                                                                                                                                                                                                                                                                          48



                                                                                                                                                                                                                                                                                                                                                        53



                                                                                                                                                                                                                                                                                                                                                                        58



                                                                                                                                                                                                                                                                                                                                                                                    63



                                                                                                                                                                                                                                                                                                                                                                                                67
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                                                                                                                                                                                                                                                                                                                               -



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                                                                                                                                                                                                                                                                                                                                                           -



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                                                                                                                                                                                                                                                                                                 37



                                                                                                                                                                                                                                                                                                                 42



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                                                                                                                                                                                                                                                                                                                                                                          62



                                                                                                                                                                                                                                                                                                                                                                                       67
                     10%                                                                                                                                                                                                                                                            Source: Southeast Manpower Tripartite Alliance (SEMTA) survey, 2007
                                                                %




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                            0.3
                            0.2




                                                                                                                                                           0.2

                                                                                                                                                           0.1
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                                                                                                                                                                                                                                                                                                                                                                      8.0%
                                                                                                                                                                                                                                               10%
                     0%                                                                                                                                                                                                                                 4.3%                                                                                                                      4.4%        3.5%
                                                                                                                                                                                                                                               5%
                                                                                                                                                         +
                            2


                                        7


                                                  2


                                                            7


                                                                           2


                                                                                             7


                                                                                                           2


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12,000                                                                                                                                                                                                                                         0%
                       18


                                   23


                                             28


                                                       33


                                                                      38


                                                                                        43


                                                                                                      48


                                                                                                                  53


                                                                                                                           58


                                                                                                                                        63




                                                                                                                                                                                                                                                          16



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                                                                                                                                                                                                                                                                                                                                                         50



                                                                                                                                                                                                                                                                                                                                                                        55



                                                                                                                                                                                                                                                                                                                                                                                    60



                                                                                                                                                                                                                                                                                                                                                                                               65
                                                                                         Age Range




                                                                                                                                                                                                                                                           -1



                                                                                                                                                                                                                                                                         -2



                                                                                                                                                                                                                                                                                       -2



                                                                                                                                                                                                                                                                                                       -3



                                                                                                                                                                                                                                                                                                                      -3



                                                                                                                                                                                                                                                                                                                                   -4



                                                                                                                                                                                                                                                                                                                                                 -4



                                                                                                                                                                                                                                                                                                                                                              -5



                                                                                                                                                                                                                                                                                                                                                                          -5



                                                                                                                                                                                                                                                                                                                                                                                      -6



                                                                                                                                                                                                                                                                                                                                                                                                 +
                                                                                                                                                                                                                                                               9



                                                                                                                                                                                                                                                                             4



                                                                                                                                                                                                                                                                                           9



                                                                                                                                                                                                                                                                                                           4



                                                                                                                                                                                                                                                                                                                        9



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                                                                                                                                                                                                                                                                                                                                                 9



                                                                                                                                                                                                                                                                                                                                                               4



                                                                                                                                                                                                                                                                                                                                                                             9



                                                                                                                                                                                                                                                                                                                                                                                          4
10,000


 8,000


 6,000


 4,000



 2,000


    0
         18-22             23-27     28-32     33-37      38-42               43-47           48-52       53-57        58-62        63-67        67+
Industry Best Practices

Agencies and support groups such as the
IAEA, NEI, and WANO have been actively
engaged in assisting the nuclear industry in
finding ways to meet the challenge.

Through workshops, technical meetings,
taskforce activities, and project team
assignments - many best practices have
been identified, documented, and made
available to the industry.

In addition, KM assist visits by IAEA and
WANO provide valuable expert resources to
NPP’s – including access to best practices.
Sources of Best Practices
                                               Nuclear Energy
Networking
                                                  Institute
Outside Consultants                            Workshops and
                                                  Reports

                              IAEA
                      INIS and NKM Section
                             Assist Visits
                               Portals
                       Tech Docs and Reports
                             Workshops

   Internal and                                Reports and
      external                                 White Papers
   Benchmarking                                    EPRI
                                                   APQC
                                                    Etc.
Definitions

Benchmarking – The practice of comparing features and
performance of an organization, department or function with
those of other organizations and standards. (IAEA definition)
                             or
Benchmarking - The process of identifying, analyzing, and
adopting as appropriate the best practices utilized by high
performing organizations that produce superior results (often
focused on metric comparisons).

“Process Benchmarking," generally higher-level studies that
demonstrate how high performing organizations accomplish
the specific process and achieve superior results. This can be
accomplished by surveys, workshops, sites visits, etc.

Through the process of benchmarking best practices,
organizations can compare how the same functions/task are
performed by others thus gaining insight and ideas on
changes or enhancements that can improve their
performance.
Definitions

Best Practice – A process or methodology that has been
shown to work well and produce good results and is,
therefore, recommended as a model. Also termed Good
Practice (IAEA definition).
                            or
“Best Practice Process" are documented processes,
approaches or tactics used by successful companies.
These companies may not be “Top Decile” in all areas, but
have developed well defined and successful practices in
specific areas.

This presentation will cover selected “HR process best
practices” with focus on the aging work force.

These best practices are offered as possible aids that can
be modified or adjusted to fit the requirements of an
organization.

Often an organization’s culture, business needs,
demographics, and future direction dictate which
processes (best practices) work best for specific
situations.
Industry Best Practices

 Examples of Recent Best Practices
IAEA Technical Reports

EPRI Reports

NEI and INPO Benchmarking Initiatives
  Recruiting and building pipelines - Exelon
  Human Capital Planning – Palo Verde NPP

TVA New Employee Experience
IAEA Technical Reports
“Risk Management of Knowledge Loss
   in Nuclear Industry Organizations
  Three Step Process
  Employee self-assessment
  Institutional knowledge loss risk management
Knowledge management for nuclear
operating organizations
Handbook of Nuclear Knowledge
Management
EPRI Report

     Real-Time Expert Knowledge
  Acquisition and Transfer - Needs and
   Technology Assessment (1009581,
            November, 2004)

Toward Self-Elicitation and Automated Knowledge Capture Methods
Knowledge Type drives Method Selection

  Identify types of knowledge to be elicited from each expert

Historical       Job/task      Predictions      Information     Thought Process
               performance                        sources        Expert Novice




       Select approach to knowledge elicitation and capture

 Elicitor interacts with     Self-elicitation and       Automated knowledge
          expert                   capture                    capture

                                                        Community
                                                        of practice
NEI and INPO Benchmarking Initiatives


     Recruiting and building pipelines -
                  Exelon
    Human Capital Planning – Palo Verde
                    NPP

Shared at benchmark meeting “Practical Approaches to Retaining Critical Knowledge”, Atlanta,
   Georgia – November 2005 and April 2006 (NEI and INPO)
Recruiting and building pipelines

Exelon program to recruit operations
and engineering pipeline employees
 Increased education requirements of new hires
 Upgraded screening process
 Established partnerships with universities (both 2 and 4
 years)
 Utilize alumni to build relationships
 Utilized engineering intern program
 Established “Bench strength Budgets” to cover
 cost
 Began recruitment nation wide
Pilot program was expanded into other
disciplines
Human Capital Planning

            Palo Verde NPP
An integrated work force planning process
based on in-depth work force analysis.
Considers a variety of work force gain (new
hires, movement or promotion and
developmental programs) and loss factors
(retirement, movement, non-retirement
attrition).
In the past staffing needs projected based
on individual department initiatives -
assumptions varied - employee migration
impacts were not fully considered - difficult
to integrate the findings into a coherent
plan
Human Capital Planning

Integrated site-wide approach

Built around talent, not departments

Consistent assumptions for losses and
needs

Calculates 6 workforce dynamics
 3 different types of work group losses
 3 different types of work group gains
Human Capital Planning
Human Capital Planning
Other Examples

      College of Experts – Areva

      Knowledge Elicitation using Concept
      Maps – Exelon

      Phased Retirement – Southern
      California Edison

Shared at benchmark meeting “Practical Approaches to Retaining Critical Knowledge”, Atlanta, Georgia – November 2005 and April 2006 (NEI and INPO)
New Employee Experience at TVA

A new process to orient new employees to TVA and
their specific business unit

Process includes introduction to TVA culture model
(Star 7)

Based on benchmarking best-in-class companies

Utilized a private consulting firm to facilitate process

Modified the recommended best practices to best fit
TVA culture and based on feedback from new
employees
New Employee Experience at TVA
                 Goals
Improve Services
 for new employees & managers
 related to pre-employment
 screening, hire-in, orientation.

Reduce Costs

 Reduce overall line HR time spent on
administrative/transaction work to enable
more time on other high-value activities.

 Supports HR and enterprise goals
New Employee Experience at TVA
                              Benefits
Combined hiring, orientation and STAR 7 experience results in annual cost
savings of approximately $300,000.

Centralized and standardized hiring process yields efficiency gains.

 Ensures new employees have passed security clearance and medical
exams prior to hire and they understand key policies and practices.

Productivity ratios will increase due to higher and sustained levels of
employee engagement.

Manager receives “ready-to-work/train” employee(s).

 New employees will be fully equipped to be productive first day on the
job.

Alignment with “Best in Class” to become “Employer of Choice.”
Observations
A wealth of information exist related to
Human Resource Process Best Practices for
managing the aging work force.
Agencies and institutes such as IAEA,
INPO/WANO, NEI, and EPRI are actively
engaged to support the nuclear industry.
The nuclear industry has been progressive
in addressing the demographic challenge
and in sharing best practices.
While the aging work force impacts a large
segment of the industry, other factors (e.g.,
rapid growth, etc.) play a role and should be
considered.
Observations
Most best practices can and should be
modified or adapted to meet the needs of a
specific organization or department.

Organizations should consider business
needs, culture, demographics and future
direction when implementing change.

Now is the time for HR organization to
prepare.
Industry HR Best Practices




     Thank you
     Questions?
    jeboyles@comcast.net

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Best practices

  • 1. Industry HR Best Practices for managing an aging work force School of Nuclear Knowledge Management Trieste, Italy September 2007 Presentation by Ed Boyles
  • 2. Agenda 1 HR Issues 2 Aging Work Force 3 Access to Best Practices 4 Examples of Best Practices 15 Observations
  • 3. HR Issues Playing a Strategic Role Competitive Business Focus Recruiting and In-processing Human Resource Organizations Aging Work Force Leading Change Management Mergers and Acquisitions Outsourcing low value functions
  • 4. The Aging Work Force The aging nuclear work force is a well recognized challenge in the industry. The 2005 work force survey by the Nuclear Energy Institute projects approximately 40 percent over 5 years for the U.S. nuclear work force. The aging work force is a major impact on the international nuclear industry, however, other factors should also be considered, for example: Rapid growth and experience dilution Political decisions to reduce reliance or to phase out nuclear power A combination of aging work force and future growth Many nuclear organization are in various stages of efforts to address the challenge. Many HR organizations are not prepared.
  • 5. The aging work force is now Southeast Skilled Labor Demand 80% 70% 60% Skilled Labor Union Non- TOTAL Classification Union* 50% Boilermakers and 9,500 12,498 21,998 Skilled Labor (all crafts) Tube Welders 40% Pipefitters and 10,100 28,050 38,150 30% Current estimated total supply Combo Welders Iron Workers 6,500 6,622 13,122 20% Millwrights 7,600 7,385 14,985 10% Electricians 10,300 11,394 21,694 30% 0% 30% Carpenters 25.1% 2,306 24.2% 3,037 5,343 s % 1% gi % Insulators 874 333 1,207 5.7 ts r s s 25% rs a r 2 t es e d 25. rs s ns e s s s s an .ic i% s r is er e n 4.9 to th er er te er an 2er ee e ia ic da ne ne O ra He 24n2 ne e da ne e Heavy Equipment ci in ic ys in in pe di 1,144 16.1% 932 2,076 gi ni di gi g gi n 20% ng ch g 2003 ph Operators n en ch en 25% ch n O en en en ca 13.6% e ca te te th te m al al al e E y al e e ic al ic 15% ce ic le ri t ic ND al nc st rv ic .9% e ctr m c an Total Estimated o m an Sy Nu m ri e se 48,324 70,251 118,575 in e Fe .1% ech 7.0% en Ch 2004 e El Workforce M pe d Ch 10% 5.4% nt el M 4.4% Ex Fi ai 20% 3.0% M 5% 0.3% 0.9% *Non-union estimates reflect an adjustment for workers 0.1% Employees 16 counted in both union and non-union pools 16 0% .7% .6% 13 15% 13 18 23 28 33 38 43 48 53 58 63 67 - - - - - - - - - - + 22 27 32 37 42 47 52 57 62 67 10% Source: Southeast Manpower Tripartite Alliance (SEMTA) survey, 2007 % 30% 7.0 % % % 5.7 5.6 5.4 % 25% % 4.4 % 3.6 % 16,000 5% 20% 3.0 2.6 13.1% % % 11.8% 12.6% % 11.4% % % % 0.9 15% 10.5% 10.7% 0.8 9.9% 0.3 0.2 0.2 0.1 14,000 8.0% 10% 0% 4.3% 4.4% 3.5% 5% + 2 7 2 7 2 7 2 7 2 7 67 -2 -2 -3 -3 -4 -4 -5 -5 -6 -6 12,000 0% 18 23 28 33 38 43 48 53 58 63 16 20 25 30 35 40 45 50 55 60 65 Age Range -1 -2 -2 -3 -3 -4 -4 -5 -5 -6 + 9 4 9 4 9 4 9 4 9 4 10,000 8,000 6,000 4,000 2,000 0 18-22 23-27 28-32 33-37 38-42 43-47 48-52 53-57 58-62 63-67 67+
  • 6. Industry Best Practices Agencies and support groups such as the IAEA, NEI, and WANO have been actively engaged in assisting the nuclear industry in finding ways to meet the challenge. Through workshops, technical meetings, taskforce activities, and project team assignments - many best practices have been identified, documented, and made available to the industry. In addition, KM assist visits by IAEA and WANO provide valuable expert resources to NPP’s – including access to best practices.
  • 7. Sources of Best Practices Nuclear Energy Networking Institute Outside Consultants Workshops and Reports IAEA INIS and NKM Section Assist Visits Portals Tech Docs and Reports Workshops Internal and Reports and external White Papers Benchmarking EPRI APQC Etc.
  • 8. Definitions Benchmarking – The practice of comparing features and performance of an organization, department or function with those of other organizations and standards. (IAEA definition) or Benchmarking - The process of identifying, analyzing, and adopting as appropriate the best practices utilized by high performing organizations that produce superior results (often focused on metric comparisons). “Process Benchmarking," generally higher-level studies that demonstrate how high performing organizations accomplish the specific process and achieve superior results. This can be accomplished by surveys, workshops, sites visits, etc. Through the process of benchmarking best practices, organizations can compare how the same functions/task are performed by others thus gaining insight and ideas on changes or enhancements that can improve their performance.
  • 9. Definitions Best Practice – A process or methodology that has been shown to work well and produce good results and is, therefore, recommended as a model. Also termed Good Practice (IAEA definition). or “Best Practice Process" are documented processes, approaches or tactics used by successful companies. These companies may not be “Top Decile” in all areas, but have developed well defined and successful practices in specific areas. This presentation will cover selected “HR process best practices” with focus on the aging work force. These best practices are offered as possible aids that can be modified or adjusted to fit the requirements of an organization. Often an organization’s culture, business needs, demographics, and future direction dictate which processes (best practices) work best for specific situations.
  • 10. Industry Best Practices Examples of Recent Best Practices IAEA Technical Reports EPRI Reports NEI and INPO Benchmarking Initiatives Recruiting and building pipelines - Exelon Human Capital Planning – Palo Verde NPP TVA New Employee Experience
  • 11. IAEA Technical Reports “Risk Management of Knowledge Loss in Nuclear Industry Organizations Three Step Process Employee self-assessment Institutional knowledge loss risk management Knowledge management for nuclear operating organizations Handbook of Nuclear Knowledge Management
  • 12. EPRI Report Real-Time Expert Knowledge Acquisition and Transfer - Needs and Technology Assessment (1009581, November, 2004) Toward Self-Elicitation and Automated Knowledge Capture Methods
  • 13. Knowledge Type drives Method Selection Identify types of knowledge to be elicited from each expert Historical Job/task Predictions Information Thought Process performance sources Expert Novice Select approach to knowledge elicitation and capture Elicitor interacts with Self-elicitation and Automated knowledge expert capture capture Community of practice
  • 14. NEI and INPO Benchmarking Initiatives Recruiting and building pipelines - Exelon Human Capital Planning – Palo Verde NPP Shared at benchmark meeting “Practical Approaches to Retaining Critical Knowledge”, Atlanta, Georgia – November 2005 and April 2006 (NEI and INPO)
  • 15. Recruiting and building pipelines Exelon program to recruit operations and engineering pipeline employees Increased education requirements of new hires Upgraded screening process Established partnerships with universities (both 2 and 4 years) Utilize alumni to build relationships Utilized engineering intern program Established “Bench strength Budgets” to cover cost Began recruitment nation wide Pilot program was expanded into other disciplines
  • 16. Human Capital Planning Palo Verde NPP An integrated work force planning process based on in-depth work force analysis. Considers a variety of work force gain (new hires, movement or promotion and developmental programs) and loss factors (retirement, movement, non-retirement attrition). In the past staffing needs projected based on individual department initiatives - assumptions varied - employee migration impacts were not fully considered - difficult to integrate the findings into a coherent plan
  • 17. Human Capital Planning Integrated site-wide approach Built around talent, not departments Consistent assumptions for losses and needs Calculates 6 workforce dynamics 3 different types of work group losses 3 different types of work group gains
  • 20. Other Examples College of Experts – Areva Knowledge Elicitation using Concept Maps – Exelon Phased Retirement – Southern California Edison Shared at benchmark meeting “Practical Approaches to Retaining Critical Knowledge”, Atlanta, Georgia – November 2005 and April 2006 (NEI and INPO)
  • 21. New Employee Experience at TVA A new process to orient new employees to TVA and their specific business unit Process includes introduction to TVA culture model (Star 7) Based on benchmarking best-in-class companies Utilized a private consulting firm to facilitate process Modified the recommended best practices to best fit TVA culture and based on feedback from new employees
  • 22. New Employee Experience at TVA Goals Improve Services for new employees & managers related to pre-employment screening, hire-in, orientation. Reduce Costs Reduce overall line HR time spent on administrative/transaction work to enable more time on other high-value activities. Supports HR and enterprise goals
  • 23. New Employee Experience at TVA Benefits Combined hiring, orientation and STAR 7 experience results in annual cost savings of approximately $300,000. Centralized and standardized hiring process yields efficiency gains. Ensures new employees have passed security clearance and medical exams prior to hire and they understand key policies and practices. Productivity ratios will increase due to higher and sustained levels of employee engagement. Manager receives “ready-to-work/train” employee(s). New employees will be fully equipped to be productive first day on the job. Alignment with “Best in Class” to become “Employer of Choice.”
  • 24. Observations A wealth of information exist related to Human Resource Process Best Practices for managing the aging work force. Agencies and institutes such as IAEA, INPO/WANO, NEI, and EPRI are actively engaged to support the nuclear industry. The nuclear industry has been progressive in addressing the demographic challenge and in sharing best practices. While the aging work force impacts a large segment of the industry, other factors (e.g., rapid growth, etc.) play a role and should be considered.
  • 25. Observations Most best practices can and should be modified or adapted to meet the needs of a specific organization or department. Organizations should consider business needs, culture, demographics and future direction when implementing change. Now is the time for HR organization to prepare.
  • 26. Industry HR Best Practices Thank you Questions? jeboyles@comcast.net