Assessing Diversity, Retirements and Turnover
Al Brown
Human Resources Consultant
Georgia Merit System
State of Georgia
February 2002
Assessing Diversity, Retirements and Turnover
Workforce Planning Training: Module 2 of 5
General Housekeeping
Restrooms are through the glass entry door and to your right near the end of the hall.
Snack bar is two floors down(Balcony Level).
Ice cream/cookie shop is four floors down(Cafeteria Level).
Today’s agenda
Overview of Step 4 of the Workforce Planning Model, Diversity and Turnover Outlook.
Hands on exercise
Diversity of Incumbent Workforce(Internal Comparison)
Retirement Projections
Calculation of Turnover Ratios and Costs
Today’s Agenda
Diversity of Incumbent Workforce(Labor Market Comparison)
Diversity of Incumbent Workforce(Customer Base and General Population Comparison)
Highlights of Overall Summary
Rationale
Governor’s Diversity Initiative
Identifying baseline data on diversity, employee status and turnover rates is a first step to determine what is necessary for success.
The information from this step is used directly in steps 5 and 9 of the model.
Course Objectives
Participants will be able to identify deliverables associated with Diversity and Turnover Outlook, step 4 of Strategic Workforce Planning.
Participants will be able to identify the major components of this step.
Participants will be able to identify what constitutes Level I and Level II analysis.
Course Objectives
Participants will be able to identify and analyze diversity gaps in the incumbent and turnover workforce.
Participants will know the location of additional sources of demographic information.
Key Components
Diversity of Incumbent Workforce
Diversity of Turnover Workforce
Retirement Analysis
Turnover Analysis
Diversity Gap Analysis
Diversity
Diversity encompasses more than ethnicity and race.
Religious preferences, physical capability, educational levels and sexual orientation are diversity categories as well.
Intelligence, communications styles, work habits, economic status or even personality types can be included as diversity categories.
Diversity
Simply stated, diversity focuses on the unique characteristics that make us different from each other.
In workforce planning, we are looking at representational diversity based on demographic data that is relatively easy to obtain and analyze.
The Workforce Planning Advisory Council is considering a more holistic approach to diversity. Stay tuned!!
Diversity-Not just another word for affirmative action
Affirmative Action
Court or DOJ initiated
Legally Driven
Quantitative & Qualitative
Problem focused
Assimilation
Reactive
Diversity
Voluntary
Productivity Driven
Qualitative
Opportunity Focused
Integration
Proactive
Diversity of Incumbent Workfroce
Looks at representational diversity of Incumbent Workforce
Requires refreshing 8 tables with query data and a review of each table.
Requires an overall summary.
Diversity of Incumbent Workforce
Diversity of Turnover Workforce
Looks at representational diversity of turnover in your workforce.
Requires refreshing 8 tables with query data and a review of each table.
Requires overall summary.
Diversity of Turnover Workforce
Retirement Projection Report
SWiFT contains a retirement projector
The retirement projector looks at tenure and age to identify which employees are considered at risk for retirement.
Retirement Projection Report
It will project those considered at risk of retirement by job title for the next 5 years.
SWiFT considers the following age/tenure combinations to be at risk of retirement:
Age 60 with 10 years of tenure
Age 55 with 20 years of tenure
Age 50 with 30 years of tenure
Retirement Projection Report
Retirement Projection Report
Calculation of Turnover Ratios
SWiFT has the ability to calculate turnover ratios for all jobs in your agency.
It will provide turnover percentages and total estimated cost of turnover for each job.
The deliverables associated with this step are the completed turnover ratio table and a summary analysis.
Calculation of Turnover Ratios
Calculation of Turnover Ratios
Diversity Gap Analysis
SWiFT contains information to assist in the interpretation of Diversity of Incumbent Workforce data.
Of particular use is the 2000 Population/Labor Force data for Georgia.
Diversity Gap Analysis
Additional demographic information can be assessed through the GDOL web site.
The deliverables are the completed tables and a summary of your analysis.
Diversity Gap Analysis
Diversity Gap Analysis
Compliance with the requirements of the Uniform Guidelines on Employee Selection Procedures (1978).
Provides technical validation and record keeping standards for acceptable selection procedures for any employment decision.
Focuses on equitable treatment of applicant pool for hiring, promotion, training opportunities, performance evaluation,etc.
Diversity Gap Analysis
While not mandatory, agencies may make a strategic decision to have their workforce more accurately reflect the composition of their customer base(s).
Level I and Level II analysis
For Diversity of Incumbent Workforce and Diversity of Turnover Workforce , there are two possible levels of analysis:
Level I, the lowest acceptable, is simply completing the required deliverables.
Level II is completing the required deliverables AND preparing similar tables for organizational units, geographic areas, etc.
Level I and Level II analysis
Retirements, Turnover Costs/Ratios and Diversity Gap Analyses are all done at Level I by completing the required deliverables.
While not assigned specific levels, further analysis of these deliverables may be beneficial to your organization.
Presentation-Lecture
Before we begin, I’d like to make a disclaimer of sorts. If anyone in attendance is here primarily to get technical information the Strategic Workforce Tool or SWiFT, such as how to refresh the pivot tables or make bar graphs, this is not the appropriate session for you. Instead, I recommend that you visit our web site at and sign up for our 4 hour hands on training in SWiFT. Today’s training will focus largely on analyzing the data SWiFT generates. I will barely touch upon the technical side of SWiFT. Based on this information, if there is anyone that would like to be excused, please feel free to leave at this time.
How many of you attended the Strategic Workforce Planning overview training conducted by Charlie Brooks?
How many of you attended the SWiFT training conducted by Jeff Maile?
How many of you have attended another Workforce Planning training module?
How many of you played a role in submitting last year’s workforce plan?
Presentation-Lecture
Before we begin, I’d like to make a disclaimer of sorts. If anyone in attendance is here primarily to get technical information the Strategic Workforce Tool or SWiFT, such as how to refresh the pivot tables or make bar graphs, this is not the appropriate session for you. Instead, I recommend that you visit our web site at and sign up for our 4 hour hands on training in SWiFT. Today’s training will focus largely on analyzing the data SWiFT generates. I will barely touch upon the technical side of SWiFT. Based on this information, if there is anyone that would like to be excused, please feel free to leave at this time.
For the benefit of the group, could you please introduce yourselves and tell us what agency you are with?
How many of you attended the Strategic Workforce Planning overview training conducted by Charlie Brooks?
How many of you attended the SWiFT training conducted by Jeff Maile?
How many of you have attended another Workforce Planning training module?
How many of you played a role in submitting last year’s workforce plan?
Presentation style- Lecture
On July 25, 2001, Governor Barnes issued an executive order establishing the Georgia Diversity Advisory Council. The goal is to strengthen the state’s effort to promote and manage a diverse workforce. Cabinet level officials and executive managers were selected to serve on the advisory council. The governor’s diversity initiative is seeking to turn state government into a place where “All can succeed and all are welcome.” Diversity gaps must be considered in step 5, Identify Outcome Priorities. They must also be considered in step 9, Integrate HR Strategies. In the scheme of things, this year’s workforce plan requires you to identify and analyze three types of gaps: staffing, diversity and competency. In step 3 of the model, you identified and analyzed staffing gaps, while steps 6,7 and 8 focus on competency gaps. Today, we will identify and analyze diversity gaps.
CHANGE SLIDE
Presentation-Lecture
There are 5 Course Objectives for this module. The participants should be able to: 1. Identify deliverables associated with this step. 2. Identify the major components of this step. 3. Identify what constitutes Level 1 and Level 2 analysis of the major components. (CHANGE TO NEXT SLIDE )4. Identify and analyze diversity gaps in the incumbent and turnover workforce. The emphasis of this module will be on this objective. 5. Know the location of additional sources of demographic data .
Presentation: Lecture
There are five key components to Step 4 of the model, Diversity and Turnover Outlook. They are:
Diversity of Incumbent Workforce
Diversity of Turnover Workforce
Retirement Analysis
Turnover Analysis.
Diversity Gap Analysis.
We will be covering these key points sequentially, so let’s begin by looking at Diversity of Incumbent Workforce. (CHANGE SLIDE)
Presentation-Lecture
Representational diversity considers the distribution of your incumbent workforce by certain demographic characteristics. In step 4, you will be looking at your current workforce according to the following :
Gender
Ethnicity
Tenure
Age
The deliverables associated with this part of Step 4 are 8 tables that have been refreshed using your query data, a review of each table’s data and an overall summary of your analysis. If you notice an imbalance within a particular table, please summarize the imbalance using the summary area provided within each table.
You will be considering the previously mentioned demographic characteristics by looking at diversity for:
All Jobs and Jobs within Business Function (looks at individual jobs) and FLSA Status (The Fair Labor Standards Act categorizes employees as non-exempt, professional, administrative or executive). At your option, you may review diversity for:
Business Function(looks at Business Function in its entirety)
Last year, you were required to insert a column and manually enter business functions for every position. We were able to upload to Phoenix the business function information you submitted with the FY2002 workforce plans. Your query data will now contain business functions. However, if you have reallocated, moved or created a position since the date of your FY2002 query, you should verify that the business function is accurate.
Job Families
Pay Grade analysis is by Gender and Ethnic Group only (CHANGE SLIDE)
Presentation-Lecture
This is a visual depiction of the deliverables associated with Diversity of the Incumbent Workforce with the exception of the individual summaries and the overall summary. Please note that the correct Phoenix query to paste into the current employee query is WP001.
(CHANGE SLIDE)
Presentation-Lecture
Diversity of the Turnover Workforce requires the same number of deliverables as Diversity of the Incumbent Workforce- 8 tables, a review of each table, and an overall summary. If you notice an imbalance in a particular table, please summarize your analysis in the summary area provided within each table.
Diversity of the Turnover Workforce analyzes turnover using the same variables as Diversity of Incumbent Workforce: You will be looking at turnover using:
Gender
Ethnic Group
Tenure
Age
Again, you will be using these demographic characteristics to analyze turnover for:
All Jobs and Jobs within Business Function and FLSA Status. At your discretion, you may review turnover diversity as it relates to:
Business Function
Job Families
Pay range analysis is by Gender and Ethnic Group only.
(CHANGE SLIDE)
Presentation-Lecture/Facilitated Discussion
SWiFT contains a Retirement Projection report which considers age and tenure to identify employees considered at risk of retirement. (CHANGE SLIDE) SWiFT considers the following categories of employees most likely to retire. Age 60 with 10 years of tenure; age 55 with 20 years of tenure and age 50 with 30 years.
These calculations are made for the next five years by job title. (CHANGE SLIDE)
The retirement projection figure at the bottom of this table is calculated by multiplying the total number of eligible persons by 20%, which is a conservative estimate. Our analysis showed the range to be from 20-40%. However, we had only service dates to consider and were not privy to information regarding breaks in service, military buy backs, etc., so we went with the low end of the range. Please note that the retirement projection figure is aggregated for the entire agency, while the retirement eligibility projection is by job title.
The deliverables associated with the Retirements Projection Report are the completed report and a summary which analyzes projected retirements’ impact on your agency.
Ask the participants, “ What are some points you might consider as you analyze the Retirements Projection Report?” Facilitate a group discussion. Among points to be considered should be:
Which jobs or groups of jobs are most affected by the projected retirements?
What years are most affected by the projected retirements?
What are the ramifications of this matrix in relation to incumbent and turnover diversity?
Let’s take a look at the actual report. (Change Slides)
Presentation-Lecture
This is the top of the Retirement Projection Report. Notice the column headings. Next, we’ll take a look at the summary information.
(CHANGE SLIDE)
Presentation-Lecture
Notice that the projected number of retirements is 20% of those eligible to retire, which is a very conservative estimate. Your agency’s actual retirement figures could of course be higher or lower, but the retirements projection report gives you a base figure to work with. Any questions? Let’s find out about another feature of SWiFT, Calculating Turnover Ratios.
(CHANGE SLIDE)
Presentation-Lecture
SWiFT contains a turnover calculator that will provide turnover percentages and estimated turnover costs for all jobs within your generate the turnover ratio/cost table takes 5 steps. The following slide will show each one.
(CHANGE SLIDE)
Presentation-Lecture
Please note that the proper Phoenix query to use to refresh the beginning employee query data is WP003. One of our desired learning outcomes for this module was that you would be able to identify the appropriate Phoenix query to use to refresh individual tables. In review, they are:
1. WP001, which is associated with Diversity of Incumbent Workforce.
2. WP002, which is associated with Diversity of Turnover Workforce. AND
3. WP003, which is associated with Calculating Turnover Ratios.
Presentation-Lecture
Here, we see turnover percentages and estimated turnover cost by job title. There has been a lot of research into the cost of turnover. Most research suggests that the bare minimum cost of turnover is the full salary of the incumbent’s job. That is, pay, benefits, vacation, etc. In Georgia state government, the full salary is calculated as times the incumbent’s gross annual salary. That is how the figures in the far right hand column were calculated. Remember, besides direct costs such as recruitment, interviewing and training, turnover causes indirect costs in lowered productivity of not only the departing employee, but co-workers as well.
The deliverables associated with this step are the completed report and a summary analysis.
At this point, we have merely amassed a great deal of information. The most important task still lies ahead. What do these numbers really mean to my organization? In order to answer that question, we’ve got to look beyond the raw data and find some basis of comparison. Fortunately, SWiFT provides links to information that may be most helpful in this regard.
(CHANGE SLIDE)
Presentation-Lecture
Diversity gap analysis is an important part of Step 4 of the Workforce Planning Model. While some imbalances may be readily visible, it is helpful to understand your organization’s representational diversity in context. Included in SWiFT is 2000 Population/Labor Force data based on 1990 census data for the state, which is part of your handouts.
(CHANGE SLIDE)
Presentation-Lecture
There is additional demographic information available to you through an included hyperlink to the Georgia Department of Labor’s website. The information available from this source is also included in your handouts. The deliverables associated with this part of the model are the completed tables and a summary analysis. You should consider the representational diversity of the incumbent and turnover workforces compared to your labor markets, customer bases and general population. Here is a visual depiction of the steps in this process.
(CHANGE SLIDES)
Presentation-Lecture
In Step 1, you are simply accessing Population and Workforce data based on Georgia census data from 1990. Steps 2a and 2b require you to refresh these tables. They do come preloaded with information, so it is absolutely imperative that you refresh the tables with your agency’s information. You can see the previously mentioned hyperlink to the Georgia Department of Labor’s information in the lower right corner. After a short break, we will return to tackle an exercise that will give you hands on experience with most of the deliverables as well as analyzing the data the tables contain.
(CHANGE SLIDE)
Presentation-Lecture
Diversity of Incumbent Workforce and Diversity of Turnover Workforce have two possible levels of analysis. Level I, the lowest acceptable, requires completing the required deliverables. Level II means completing the required deliverables and preparing similar tables for organizational units, geographic areas, etc. Level II analysis requires enhanced Excel skills compared to Level I.
(CHANGE SLIDE)
For the Retirements , Turnover Ratios/Costs and Diversity Gap Analyses, Level I analysis requires completion of the associated deliverables. While not assigned specific Levels, further analysis of the deliverables may be beneficial for your organization. For example, it is possible to modify the retirement projection report to use agency-specific retirement trends as opposed to statewide trends. The Turnover Ratios/Costs report can be modified to include known training costs. The Diversity Gap Analysis can be enhanced by the types and nature of comparison groups included.
