AVOIDING “THE RESIGNATION BLUES” Deliberate Strategic “Leadership” of Human Capital DENR Managers’ Forum August 22, 2007

7 Hidden Reasons Employees Leave*  The job or workplace was not as expected.  There is a mismatch between job and person.  There is too little coaching and feedback.  There are too few growth & advancement opportunities. *By Leigh Branham – Saratoga Institute

7 Hidden Reasons Employees Leave cont’d  Workers feel devalued and unrecognized.  Workers suffer from stress due to overwork and work-life imbalance.  There is a loss of trust and confidence in senior leaders. *By Leigh Branham – Saratoga Institute

Points to Consider  Line managers in organizations are “charged” with engaging and keeping valued employees.  89% of managers believe that most employees are pulled away by better pay.  88% of voluntary turnovers indicate something besides money as the root cause.  Many more employees quit and stay – that is, disengage – than quit and leave.

EPA REGION 4 - HUMAN CAPITAL STRATEGY and ACTION PLAN Taking proactive leadership to ensure we have “the right people, with the right skills, in the right place, at the right time.”

Human Capital vs. Human Resources “Human Capital” (HC) is designed to show an enhanced appreciation for the vital role employees play in an organization’s success. Since people are an organization’s most valuable asset, it pays to invest in them.

Background  EPA’s Strategy for Human Capital (2004 and Beyond)  EPA’s Administrator required Regions to develop their own Human Capital Strategy and Action Plan each fiscal year.  Region 4 formed a Senior Human Capital Officer (SHCO) Council to develop strategy and action plans.  SHCO Council meets quarterly (or more frequently when needed) to monitor progress and report accomplishments.

Senior Human Capital Officer (SHCO) Council  Deputy Regional Administrator (Chair) o Adopt/approve local strategy; o Develop local HC action plan; o Align local plan with Agency plan o Establish accountability at local level; o Coordinate implementation  Council consists of Deputy Directors from each Division.

Why Should You Develop a Human Capital Strategy?  Changing Work Environment o 21 st century workforce bears little resemblance to that of the late 20 th century o Significant retirement wave is coming o New applicants hold differing expectations o Shrinking resources require full engagement of ALL employees

Factors to Consider for Recruiting New Applicants  Time in Career (entry at different stages from novice to retiree)  Mobility (advancement within and across occupations, organizations, sectors)  Permanence (work temporarily, occasionally, or indefinitely)  Mission-Focus (all motivations, from general service commitment to specific position)  Flexible Arrangements (accommodate traditional and flexible work arrangements)

KEY COMPONENTS OF REGION 4’s STRATEGY Five Major Goals; Actions Required of Supervisors and Leaders; Regional Actions

Five Major Goals  Planning  Recruiting and Retaining  Performance Management  Accountability  Partnering

Goal 1  Regional systems and organizational structures work together to position and support EPA employees in accomplishing the Agency’s strategic goals. (Planning)  Role of Organizational Leaders: - Develop and implement human capital plans; - Incorporate management of human capital as a key strategy for achieving your organization’s mission; - Identify skills needed and skills gaps.

Types of Actions Supporting Goal 1  Identify HC goals/performance measures that support mission accomplishment and report on efforts on a quarterly basis.  Develop succession plans; identifying major mission critical occupations.  Develop and implement appropriate knowledge transfer/developmental programs to ensure continuity of operations.

Goal 2  Region 4 attracts and retains a diverse and talented workforce. (Recruiting and Retaining)  Role of Organizational Leaders: - Recognize and demonstrate that a diverse workforce is critical to achieve results; - Recognize differences as being beneficial to the organization; - Exercise inclusiveness in decision-making and the creativity of solutions to organizational problems.

Types of Actions Supporting Goal 2  Utilize flexible hiring authorities, as appropriate, to facilitate effective workforce management.  Participate in “high yield” Recruitment/Career fairs  Conduct focus group sessions representing various groups to determine concerns of employees  Recognize managers who demonstrate commitment towards equity/diversity

Goal 3  Regional employees perform to their highest potential to support the Agency mission. (Performance Management)  Role of Organizational Leaders: - Valuing and treating employees with respect; - Recognizing and appreciating good work; - Ensuring developmental and succession programs; - Providing opportunities for employees to maximize their potential; - Providing effective performance feedback.

Types of Actions Supporting Goal 3  Develop learning and development plan that addresses identified training needs  Develop and launch a Regional Leadership Mentoring Program  Ensure new supervisory training for all new supervisors  Determine MCO bench strength and develop plan to maintain critical competencies  Provide coaching and training for supervisors to deal with poor performers

Goal 4  Regional employees at all levels are results- focused, act with integrity, and help to improve environmental programs through innovation, creativity, and reasonable risk-taking. (Accountability)  Role of Organizational Leaders: - Supporting a “culture of innovation;” - Ensuring employees understand their ethical responsibilities; - Equipping employees with appropriate skills, competencies, and tools;  - Holding employees accountable for results.

Types of Actions Supporting Goal 4  Offer training on Critical Thinking, Decision Making, and Strategic Thinking for all staff  Reward innovation and creativity  Benchmark routinely with other federal agencies and industry  Promote broad understanding of EPA’s mission

Goal 5  Teamwork and collaboration are routinely practiced with internal and external partners. (Partnering)  Role of Organizational Leaders: - Working effectively with partners to seek out and analyze workplace problems; - Developing innovative solutions to improve the organization and its ability to achieve our mission; - Involving employees in decision-making and ensuring communications flows up, down, and across the organization.

Types of Actions Supporting Goal 5  Build effective labor/management relationships  Building partnering and team skills of employees  Build environmental science partnerships with academic institutions

Outcomes Being Expected/Being Achieved  Employees feel that they do important, value-added work  We have a diverse mix of critical skills and backgrounds  We develop employees’ strengths and match them to critical work

Outcomes Expected/Being Achieved cont’d  We provide a supportive environment that helps employees perform at their highest levels  Our leaders demonstrate behaviors/working styles that promote our mission and high ethical standards, and that lead to overall employee satisfaction

2006 Federal Human Capital Survey Results  I like the kind of work I do. – 82%  Rating of overall quality of work done by work group. – 83.7%  Workforce has job-relevant knowledge and skills needed. – 75.4%  My supervisor supports my need to balance work and family issues. – 84.5%  I know how my work relates to the agency’s goals/priorities. – 84.9%

2006 Federal Human Capital Survey Results cont’d  The work I do is important. – 89%  I am held accountable for achieving results. – 80.4%  Employees use information technology effectively to perform work. – 91.1%  I am satisfied with my paid vacation time and paid leave for illness. – 89.1%

Concluding Remarks  This is serious and important work  Demands leadership from all levels  Focus on ways to train, develop, and motivate current core workforce  Opportunity to shape a new workforce through strategic recruiting and developmental programs  Leadership development and succession planning are crucial to success

Contact Information  Freda M. Lockhart, Chief Workforce and Strategic Development Human Capital Management Branch U. S. Environmental Protection Agency 61 Forsyth Street, SW Atlanta, GA

 QUESTIONS