1 aep workforce planning and process august 26, 2008 cewd midwest region meeting
TRANSCRIPT
1
AEP Workforce Planning and Process
August 26, 2008
CEWD Midwest Region Meeting
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The AEP Workforce Today
Age
26.7%
37.7%
21.0%
14.6%
Less than 34 34-4445-54 55 and over
The AEP workforce is aging
• The average age of an AEP worker is 47
• 24% of AEP workers are currently eligible for retirement
AEP enjoys a stable workforce
• The average AEP employee has 17.7 years of service
Years of Service
26%
17.4%
13.1%
22%21.3%
Less than 5 5-910-19 20-2930 plus
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Workforce Planning: Why?
Business Drivers
Higher-than-normal turnover due to aging workforce Attrition will outpace employees ready to step into next level of job family A decade of cost-cutting has reduced overall skilled complement and on-the-job
training opportunities Historical approach to training may require four – five years for new hires to attain
required skill level
Aging workforce is a national issue Demographically, there are fewer workers available to replace aging baby boomers
Projected retirements require greater advance planning
Need to anticipate and address changing skill sets
Continued opportunity to increase diversity of workforce
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Workforce Planning Process
• Needed data is determined & gathered
• Data is analyzed and factors are identified that might impact the workforce
• Determination of the workforce needed to achieve AEP’s Business Goals and Strategies
Analysis
• Strategies are selected to address the specific workforce challenges of that business unit.
• A plan to achieve the future workforce is defined based on the strategies selected.
• A Talent Management Review meeting is held with the leadership of the Business Unit to review and approve the plan moving forward.
AnalysisPlan
Creation /Revision
ExecutionAnalysisPlan
Creation /Revision
Execution
• The Strategies selected and approved are implemented.
• Individuals are assigned and carry out various actions to achieve the plan.
• Business leadership reviews and monitors progress of plan execution.
Plan Creation / Revision
Execution
Analysis
Analysis
Plan
Creation
/Revision
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Defining the Need
Applied predictive modeling to 2008 workforce to quantify expected retirements
Employee age plus years of service is a strong predictor of potential retirements
AEP history shows that employees with age and years of service totaling 90 or more will retire within five years
Over a historic 5 year period, 8.3% of the workforce retires Positions that have more than 8.3% of the workforce with ages and
years of service totaling 90 or more will experience greater than normal retirement rates
Other Turnover Terminations for reasons other than retirements average 8.8% every 5
years
Turnover for a normal 5 year period is about 17%
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Defining the Need, continued
Generally, AEP positions will experience turnover of 18.9% over next five years
Projected turnover 2008– 2012 only 1.8% greater than historical average
However, some locations and job families will experience turnover significantly greater than 20%
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FROM 2008-2012, AEP IS PROJECTED TO LOSE 18.9% OF ITS EMPLOYEE POPULATION TO RETIREMENT AND OTHER TURNOVER
0 1000 2000 3000 4000 5000 6000 7000 8000
Operative [1342/162]
Craft [6828/1240]
Administrative [1865/313]
Technician [1483/287]
Professional [5223/989]
Leader [3116/828] 26.6%
18.9%
19.4%
16.8%
18.2%
12.1%
• Versus a 17.1% historical norm for 5-year turnover
EE's in position
Turnover
[ ] Current Compliment/Turnover No.
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THERE HAS BEEN SIGNIFICANT PROGRESS WITH REPLACING CRAFT TURNOVER
90
372
32
212
76
381457
-160
-58
-200
-100
0
100
200
300
400
500
Projected Employee Turnover
Employees in Feeders
Replacement Outlook for Next 5 Years
Distribution Workers Transmission Workers Plant Workers
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FRONT LINE LEADER TURNOVER IS ESPECIALLY CONCERNING
0 500 1000 1500 2000 2500
Shared Svcs [168/45]
Generation [896/202]
Utilities [828/272]
All AEP [1907/523] 27.4%
32.9%
22.5%
26.7%
EE's in position
Turnover
[ ] Current Complement/Turnover No.
2008 Projected 5-year turnover among Supervisors
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Workforce Planning Strategies
Leadership TalentPlanning
Military Sourcing
Recruiting Teams
Recruiting Friendly Policies
Education Assistance
Telecommuting
Vacation
Leveraging Technology
Review of Products & Services
Contractor Usage
Cross-training
Best Practices
Knowledge Retention Program
Legacy of Knowledge
Mentoring Program
Hiring Co-ops and Interns
Training Alliances
Mentoring Programs
ReplacementPlanning
Targeted Development
Communities of Practice
Attract Retain Talent