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HomeMy WebLinkAboutCAO-08-035 - Human Resources Audit ReviewJ Krrr.~~.R Chief Administrator's Office REPORT Report To: Mayor Carl Zehr, Chair and members of the Audit Committee Date of Meeting: November 17, 2008 Submitted By: Corina Tasker, Performance Measurement and Internal Auditor Prepared By: Corina Tasker, Performance Measurement and Internal Auditor wards} Involved: All Date of Report: October 1, 2008 Report No.: CAO-08-035 Subject: Human Resources Review RECOMMENDATION: That the Audit Committee receive Report CAO-08-035 as information. EXECUTIVE SUMMARY: In September 2008 a comprehensive review of the City's Human Resources (HR) division was completed at the request of the audit committee. Report CAO-08-035 serves to inform the audit committee of the completion of this review and the key findings and recommendations that emerged from the review. The three main objectives of the review were: 1. To determine the effectiveness of the HR division as a whole 2. To provide a detailed analysis of the recruitment process in order to improve the process 3. To analyze the degree to which the City of Kitchener is an attractive employer, determine where there are gaps, and determine what HR's role should be making the City an attractive employer REPORT: A brief summary of the findings of this review are included below. Effectiveness of the Human Resources Division While the HR staff were found to be very knowledgeable and positive feedback was received about specific functions, several areas for improvement were noted. These included: HR strategy and direction, organizational structure, customer service, communication, culture of the division, union relationships, and technology. KEY FINDINGS RECOMMENDATIONS Lack of strategic vision, and key performance Annually review business plan-determine indicators have resulted in conflicting which services to provide and delivery priorities and loss of focus strategy to best meet client needs. Develop KPI's and monitor performance Some HR policies are out-of-date and no Establish plan to review all existing policies regular review process in place to ensure on rotating basis (every 5 years) and they are relevant, accurate or current benchmark to other municipalities to assess trends, gaps. Assign policy oversight to one individual for consistency Training programs perceived as disjointed, Develop a comprehensive corporate lacking corporate perspective approach to training with an increased focus on health and safety Communications to the organization are Proactively develop a communications plan, inconsistent and not always effective improve follow up on new initiatives Group benefits have not been sent out to Revisit council's direction to tender group tender in over seven years benefits every five years or obtain approval to postpone the process Lack ofwide-spread use of technology; slow, Implement PeopleSoft training module to manual processes being used automate course registrations and tracking of training for each employee Culture of division is difficult, strained; Management needs to address performance conflicts between staff and management issues in a timely manner to minimize impact have resulted in a tense working environment on staff morale. Management must also establish and model a culture consistent with corporate values Relationships with union executives could be Meet with union executives individually to improved understand their needs and concerns, improve relationships and re-establish trust Staff recognition within the division perceived Establish consistent criteria for recognition to be biased and unfair and communicate clearly with staff what is required Current organizational structure is not Consider transitioning to an HR Business conducive to optimal customer service or Partner model, where HR consultants are team cohesiveness the first point of contact for all HR services, supported by HR specialists with in-depth knowled e of the functional areas Recruitment Process There are many positive and encouraging results to report within the recruitment section primarily related to the skills, experience, knowledge and commitment of the staff. They work well as a team and have demonstrated their ability to work with minimum direction and support. They meet challenging deadlines and aim to satisfy their clients. The barriers that prevent total success can be attributed to some degree to limited financial resources and the lack of IT solutions to automate manual functions. Recommendations from this review aim to reduce overall cycle time and improve customer satisfaction. KEY FINDINGS Lack of technology to automate processes results in prolonged recruitments, lack of client satisfaction, inability to manage information Workload appears to be imbalanced Majority of clients are dissatisfied with service levels, cycle times and quality of results Inconsistent approach to recruitment support services results in confusion about roles and responsibilities for hiring manager Advertising venues are out-dated and not most effective methods Testing processes are inconsistent and are not used to pre-screen candidates prior to interviewing RECOMMENDATIONS Implement software solution to manage on- lineapplications, resume screening, automated form letters, data bank of unsolicited resumes, improve web presence Redistribute workload between recruiters based on department rather than job grade Streamline process as indicated in recommended process flow to eliminate unnecessary steps and improve cycle times Develop a clear process and communicate with hiring managers in pre-recruitment meeting to describe available services and determine clients' needs Discontinue broad-based use of print ads in local newspapers for every recruitment - expandvenues toinclude more professional publications, web-based, and other venues suggested by hiring manager. Collect data to track where candidates have seen job ads Identify required tests prior to screening candidates to ensure fairness. Conduct basic skills testing (i.e. computer skills, vehicle or equipment testing rior to selecting for interviews to save time, improve results Quality of outgoing communications is not Establish quality and accuracy process for all satisfactory outgoing correspondence and corporate- widecommunications Lack of key performance indicators to Establish KPI's (i.e. average cost per hire, monitor performance or establish targets, regret letters sent within one week, objectives acceptable recruitment cycle times, effectiveness of advertising venues) City of Kitchener as an Attractive Employer The backbone of success of any organization is its people. Without qualified, committed staff any organization will struggle to meet their business objectives. The biggest challenge that the City of Kitchener is facing right now and in the future is the shortage of talented people. Specifically, the City of Kitchener will see 36% of management retire by 2015 and that figure will jump to 63% by 2021. Although the City's population has been growing and is the fourth most popular city in Canada for immigrants, there are several other organizations competing for the same talent pool in the area. Therefore, in order to attract and retain talent amidst this talent shortage the City of Kitchener must put some thought into what the attributes of attractive companies are, where we have gaps, and what can be done to address them. KEY FINDINGS RECOMMENDATIONS Lack of corporate wide attraction and Create acorporate-wide attraction and retention strategy 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 ahigh-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 FINANCIAL IMPLICATIONS: None. Although some recommendations may require additional funds or staff resources, it will be left to the decision of the new Director of People Services and Organizational Development to bring those items through the budget process should they decide to implement them. COMMUNICATIONS: None. Corina Tasker, CMA Performance Measurement & Internal Auditor 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 Resources Review 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 Objectives Organizational 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 Review In 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 Methodology The 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 H R staff and customer perceptions • Process mapping for the recruitment process and confirmation of the documented process content • Benchmarking with 6 other municipalities and 5non-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 Recommendations HR Division Effectiveness Strengths: • 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 ~o~~~~~ed KEY FINDINGS RECOMMENDATION ~~ f Lack of strategic vision, and key Annually review business plan- performanceindicators have determine which services to resulted in conflicting priorities and provide and delivery strategy to ~~ loss of focus best meet client needs. Develop KPI's and monitor performance Some HR policies are out-of-date Establish plan to review all existing and no regular review process in policies on rotating basis (every 5 r place to ensure they are relevant, years) and benchmark to other accurate or current municipalities to assess trends, :~ gaps. Assign policy oversight to ~~ .~ one individual for consistency Training programs perceived as Develop a comprehensive disjointed, lacking corporate corporate approach to training with ~~: perspective an increased focus on health and safety HR Division Effectiveness ~on~~n~ed HR Division Effectiveness ~on~~n~ed KEY FINDINGS, RECOMMENDATION Culture of division is difficult, Management needs to address strained; conflicts between staff performance issues in a timely and management have resulted in manner to minimize impact on staff a tense working environment morale. Management must also establish and model a culture consistent with corporate values Relationships with union executives Meet with union executives could be improved individually to understand their needs and concerns, improve relationships and re-establish trust Staff recognition within the division Establish consistent criteria for perceived to be biased and unfair recognition and communicate clearly with staff what is required HR Division Effectiveness ~o~t~~~ed 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 ~o~t~~~ed 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 H R 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 ~on~~n~ed 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. ;f Recommended Model: HR Business Partner Model 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 Note: this chart shows functional groupings, NOT individual positions HR Division Effectiveness ~on~~n~ed 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 ~on,~~~ed ,KEY FINDINGS RECOMMENDATION Lack of technology to automate Implement software solution to processes results in prolonged manage on-line applications, recruitments, lack of client resume screening, automated form satisfaction, inability to manage letters, data bank of unsolicited information 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 Streamline process as indicated in with service levels, cycle times and recommended process flow to quality of results eliminate unnecessary steps and improve cycle times Inconsistent approach to Develop a clear process and recruitment support services results communicate with hiring managers in confusion about roles and inpre-recruitment meeting to ;responsibilities for hiring manager describe available services and determine clients' needs HR Recruitment Process ~o~~~n~ed KEY FINDINGS RECOMMENDATION Advertising venues are out-dated Discontinue broad-based use of and not most effective methods 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 Identify required tests riorto and are not used to pre-screen screening candidates to ensure candidates prior to interviewing fairness. Conduct basic skills testing (i.e. computer skills, vehicle or equipment testing) priorto selecting for interviews to save time, improve results HR Recruitment Process ~o~t~~~ed KEY FINDINGS RECOMMENDATION Quality of outgoing Establish quality and accuracy communications is not satisfactory process for all outgoing correspondence and corporate- widecommunications Lack of key performance indicators Establish KPI's ~i.e. average cost to monitor performance or establish per hire, regret letters sent within targets, objectives one week, acceptable recruitment cycle times, effectiveness of advertising venues) Key Findings and Recommendations Attractive 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 Recommendations Attractive Employer Create acorporate-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