Audit Committee

November 17, 2008

Agenda

• 2009 Work Plan

• Human Resources Review

2009 Work Plan

• Performance Measurement– Annual Status Report (includes

strategic, operational KPI’s and MPMP key performance indicators)

– Community Investment Strategy key performance indicators

2009 Work Plan continued

• Risk Management– Corporate risk register– Delta project– CMF project– King Street project– Contact centre project phase 2

2009 Work Plan continued

• Internal Audit– CVOR compliance testing– Recruitment resume sampling– Let’s Talk compliance testing– ISO 14001, next phase– Community Investment Strategy – value

for money audits– HR process reviews– 2009 physical inventory participation– Cash audits (golf courses, market)– Engineering Review workshop facilitation

Human ResourcesReview

HR Review - Outline• Review of objectives

• Scope of review

• Review team

• Methodology

• Key findings & recommendations– HR division effectiveness– Recruitment process– Attractive employer

• Next steps

HR Review ObjectivesOrganizational and functional review requested by Council

• Effectiveness of the HR division as a whole

• Recruitment process

• Attractiveness of the City of Kitchener as an employer

Scope of ReviewIn Scope: • HR policy review• General review of entire HR structure, key roles / tasks

performed and service levels• Review of the management structure and succession

planning• Examination of the City’s degree of success at being an

attractive employer• In-depth review of the recruitment process

Not In Scope:• Job evaluation system• Salary / Compensation review• Benefits• Health and Safety• Training

Review Team Members

Name Position

Corina Tasker Performance Measurement & Internal Auditor

Loretta Alonzo

Performance Measurement & Internal Auditor

Kathryn Dever

Organizational Development Facilitator

Christine Tarling

Manager of Corporate Records

Shayne Turner

Director of Enforcement

MethodologyThe following research and analysis was

undertaken for the review:

• Internal literature review of relevant historical reports, customer survey results, employee culture survey results, organizational charts

• Customer interviews – 35 interviews were conducted throughout the Corporation

• Employee interviews – 22 HR staff were interviewed• Council interviews – 4 interviews with Council• Union interviews – 5 interviews with union executives• Analysis of current service priority and success ratings to

identify gaps between HR staff and customer perceptions• Process mapping for the recruitment process and

confirmation of the documented process content• Benchmarking with 6 other municipalities and 5 non-

municipal firms in the areas of organizational structure, programs and policies

Current Environment

• Current division consists of 21 staff, including one Director, 2 Managers, and 5 Supervisors supporting 1922 City employees

Functions and services provided by the division include:• Health and Safety, including WSIB administration• Benefits• Wellness• Compensation• Recruitment• Training (including employee development training

(TED), management training, vehicle and equipment training)

• Labour relations• Human rights• PeopleSoft administration• Organizational development• Standard operating procedures development

Key Findings and RecommendationsHR Division EffectivenessStrengths:

• Staff are helpful and knowledgeable in their areas of expertise

• Most staff welcome change and are willing to expand their skills

• Positive feedback from clients on wellness programs, health and safety, benefits

• Some programs initiated by the division are linked to corporate strategic goals (i.e. diversity, succession planning)

• Staff pull together in a crisis

HR Division Effectiveness continued

KEY FINDINGS RECOMMENDATIONLack of strategic vision, and key performance indicators have resulted in conflicting priorities and loss of focus

Annually review business plan-determine which services to provide and delivery strategy to best meet client needs. Develop KPI’s and monitor performance

Some HR policies are out-of-date and no regular review process in place to ensure they are relevant, accurate or current

Establish plan to review all existing policies on rotating basis (every 5 years) and benchmark to other municipalities to assess trends, gaps. Assign policy oversight to one individual for consistency

Training programs perceived as disjointed, lacking corporate perspective

Develop a comprehensive corporate approach to training with an increased focus on health and safety

HR Division Effectiveness continued

KEY FINDINGS RECOMMENDATION

Communications to the organization are inconsistent and not always effective

Proactively develop a communications plan, improve follow up on new initiatives

Group benefits have not been sent out to tender in over seven years

Revisit council’s direction to tender group benefits every five years or obtain approval to postpone the process

Lack of wide-spread use of technology; slow, manual processes being used

Implement PeopleSoft training module to automate course registrations and tracking of training for each employee

HR Division Effectiveness continued

KEY FINDINGS RECOMMENDATIONCulture of division is difficult, strained; conflicts between staff and management have resulted in a tense working environment

Management needs to address performance issues in a timely manner to minimize impact on staff morale. Management must also establish and model a culture consistent with corporate values

Relationships with union executives could be improved

Meet with union executives individually to understand their needs and concerns, improve relationships and re-establish trust

Staff recognition within the division perceived to be biased and unfair

Establish consistent criteria for recognition and communicate clearly with staff what is required

HR Division Effectiveness continued

Organization Structure

• Since 2000, the staff complement in HR has grown from 17 staff to 21. The HR staff to client ratio has remained constant at 1.1% over that period

• Organizational structures were benchmarked to compare HR model used, staff complement, and staff to client ratios: – 6 other municipalities (Cambridge, Waterloo,

Markham, Mississauga, Region of Waterloo, York Region)

– 5 local companies (Conestoga Rovers, Research in Motion, Sun Life Assurance, Christie Digital, Dare Foods)

HR Division Effectiveness continued

Organization Structure

Staff and customer feedback about the current structure:

• Too many specialists and not enough back-up for when people are absent

• Difficult to access HR staff – people don’t know who to call

• Silo mentality – no cohesive flow between areas for processes

• Coverage of reception not well planned and perceived as a low priority

• Imbalance of roles of managers – some seem to have too many reports while others have very few

• Organizational structure is confusing to some outside of the division

HR Division Effectiveness continued

Organization Structure

• Based on the analysis it is recommended that the HR division consider transitioning to an HR Business Partner model

• HR Business Partner – the division is arranged in some combination of the specialist and generalist models where there is some dedicated support to divisions however there are also functional specialists to provide the in-depth knowledge required. This is currently considered “Best Practice” as it incorporates the best of both models. When applied to an HR division it allows them to become a strategic partner with the departments they support.

Recommended Model:

HR Business Partner Model

Note: this chart shows functional groupings, NOT individual positions

Human Resources Division

HR Client Services (front office)

• First point of contact• HR consultants

• General inquiries• Recruitment• Liaison with specialists• Organizational development• Assigned to departments• Located at City Hall, Fire, CMF

• All training• Labour relations

HR Support Services (back office)

• Specialists• support consultants• process transactions

• Benefits• Wellness• Compensation• Health & Safety• PeopleSoft

HR Division Effectiveness continued

The Business Partner model achieves these objectives:

• Strategic alignment of the model and the functions• Ability to effectively manage role coverage• Appropriate / equitable workload distribution• Appropriate manager to staff ratio• Potential for employee development and advancement

opportunities• Leverage the knowledge and expertise of current HR

staff• Opportunity for HR presence at outside locations• Ability to effectively share information within the

division and create seamless workflow

Key Findings and Recommendations HR Recruitment Process

Strengths:

• Staff have ability to work with minimum supervision or support

• Able to meet challenging deadlines

• Aim to satisfy clients

• Knowledgeable staff

HR Recruitment Process continued

KEY FINDINGS RECOMMENDATIONLack of technology to automate processes results in prolonged recruitments, lack of client satisfaction, inability to manage information

Implement software solution to manage on-line applications, resume screening, automated form letters, data bank of unsolicited resumes, improve web presence

Workload appears to be imbalanced

Redistribute workload between recruiters based on department rather than job grade

Majority of clients are dissatisfied with service levels, cycle times and quality of results

Streamline process as indicated in recommended process flow to eliminate unnecessary steps and improve cycle times

Inconsistent approach to recruitment support services results in confusion about roles and responsibilities for hiring manager

Develop a clear process and communicate with hiring managers in pre-recruitment meeting to describe available services and determine clients’ needs

HR Recruitment Process continued

KEY FINDINGS RECOMMENDATION

Advertising venues are out-dated and not most effective methods

Discontinue broad-based use of print ads in local newspapers for every recruitment – expand venues to include more professional publications, web-based, and other venues suggested by hiring manager. Collect data to track where candidates have seen job ads

Testing processes are inconsistent and are not used to pre-screen candidates prior to interviewing

Identify required tests prior to screening candidates to ensure fairness. Conduct basic skills testing (i.e. computer skills, vehicle or equipment testing) prior to selecting for interviews to save time, improve results

HR Recruitment Process continued

KEY FINDINGS RECOMMENDATIONQuality of outgoing communications is not satisfactory

Establish quality and accuracy process for all outgoing correspondence and corporate-wide communications

Lack of key performance indicators to monitor performance or establish targets, objectives

Establish KPI’s (i.e. average cost per hire, regret letters sent within one week, acceptable recruitment cycle times, effectiveness of advertising venues)

Key Findings and RecommendationsAttractive Employer

• Backbone of success in any organization is its people. Qualified, committed staff are critical to meeting any business objectives.

• City of Kitchener will be challenged in future as we deal with the shortage of talented employees

• City will see 36% of management retire by 2015, rising to 63% by 2021

• Taken from “Canada’s Top 100 Employers” list these factors should be used as a benchmark against companies competing for the same talent:- Physical workplace - Work atmosphere, social- Health, financial, benefits - Vacation, time off- Communications - Performance

management- Training, skills development - Community involvement

Key Findings and RecommendationsAttractive Employer

• Create a corporate-wide attraction and retention strategy including a thorough gap analysis looking at current trends, relative costs and benefits and needs across the corporation

• Use the “People Plan” as a basis for this strategy

• HR should act as ambassadors for the City

• Actively market the City of Kitchener, attend more outreach events, job fairs, develop a high-quality welcome package for all interview candidates

• Conduct more regular salary surveys to keep us as competitive as possible

• Improve our web presence to attract job seekers

Next Steps

• HR management to provide a response within 3 months