Download - Recruiting, Developing and Retaining IT Professionals

Recruiting, Developing and Retaining IT Professionals

IS6800 / PMBA Cohort 2007Presented by: Carolyn Basile, Jennifer Lewis & Thong Tarm

Growth of Information Workers37% in 1950 to 59% in 2000

Percent composition of U.S. employment by type of worker, 1950–2000. Wolff, Edward N., “The Growth of Information Workers in the U.S. Economy” Association for Computing Machinery. Communications of the ACM, Oct 2005. Vol. 48, Iss. 10, pp. 37-42.

Growth Caused by the Information Revolution

• Industry has become more dependent on information

• Growth in the use of computers post 1980• Advent of the internet• Workforce works less with their hands and

more with their minds• High-tech growth in the last part of 1990• Globalization• IT Professionals have become a strategic

assetKamal, Mustafa, “Information Technology Workforce – Planning for the Future” The Journal of American Academy of Business, Vol. 7, Num. 2, Sept 2005, pp.23-26.

Shortage of IT Professionals

• Increasing demand– IT has become strategic asset to companies– Companies want to maintain old systems– For a company to remain flexible, requiring IT

professionals to specialize in many skills instead of just one

• Rapid technology change– Companies want the cutting edge technology

• Limited supply of new IT professionals into the workforce– Poor perception of the IT profession as lucrative or

rewarding by college freshman and high school seniors– Careers in information technology viewed as boring

and “uncool”Schambach, Thomas, Blanton, J.Ellis, “Age, motivation, and participation in professional development” The Journal of Computer Information Systems, Summer 2001. Vol. 41, Iss. 4, pp. 57-64.

Kamal, Mustafa, “Information Technology Workforce - Planning for the Future” Journal of American Academy of Business, Sep 2005, Vol. 7, Iss. 2, pp. 23-26.

Projected Employment Employment in College-Level Jobs, 1996

Number Percent Number Percent Number PercentTotal 132,330 100 150,940 100 18,610 14.1College-level jobs 27,450 20.8 34,940 23.1 7,490 27.3

Executive, administrative, and managerial 8,370 6.3 10,210 6.8 1,840 22Professional specialty 13,900 10.5 17,930 11.9 4,030 29Technicians and related 1,170 0.9 1,600 1.1 430 36.8Marketing and sales 2,490 1.9 3,250 2.2 760 30.5Administrative support 1,060 0.8 1,420 0.9 360 34

All other college-level jobs 460 0.3 530 0.4 70 15.2Noncollege-level jobs 104,880 79.3 116,000 76.9 11,120 10.6

Projected change,1996-2006

Projected 2006 and Projected Change 96-06 (numbers in thousands)

Occupation 19962006,

projected

http://www.pueblo.gsa.gov/cic_text/employ/3college/3college.htm, viewed October 30, 2005

http://www.pueblo.gsa.gov/cic_text/employ/3college/3college.htm

Employment and Wage Information for IT Professionals

Employment Mean Hourly Wage

Mean Annual Wage

2,915,300 $31.50 $65,510

http://www.bls.gov/oes/current/oes150000.htm, viewed October 30, 2005.

http://www.bls.gov/oes/current/oes150000.htm

Common IT Positions and Salary Ranges

•Prod. Control Team Ld

•Data Modeler

•Project Leader

•Sr. Network Engineer

•Sr. Systems Admin

•IS Security Manager

$ 60,000 - $ 77,000

$ 65,000 - $ 90,000

$ 68,000 - $ 97,000

$ 70,000 - $ 94,000

$ 72,000 - $ 90,000

$ 87,000 - $105,000http://swz.salary.com/salarywizard/layoutscripts/swzl_compresult.asp?jobcode=IT10000136&jobaltername=Senior+Systems+Administrator&jobtitle=Systems+Administrator%2C+Sr%2E&narrowdesc=IT+%2D%2D+All&narrowcode=IT03&zipcode=63105&metrocode=&statecode=MO&state=Missouri&pagenumber=1&searchpage=keywor

dtitleselect&searchtype=1&geo=Clayton%2C+MO+63105l viewed October 15, 2005

Ways to Recruit IT Professionals

• Newspaper Ads• Internet Ads• College Job Fairs• Company Web-site• Co-Op Opportunities• Internship Opportunities• Employee Referrals• Word of Mouth• Specialty Journals or Web-sites

Interview with Tausha Dirks and Kirk Ross at Edward Jones Company; October 24, 2005

How to Hire the Right Employee

• Define the Position • Define the Candidate you are

Seeking• Screen Potential Candidates• Confirm Resume Claims• Make a Decision on Who to Hire• Negotiate a Job Offer• Stay in Touch with Candidates

Meneses, Alicia and Kleiner, Brian H. “How to Hire Employees Effectively” Management Research News, Vol 25, 5, 2002 P 39-46.

Why Does it Matter if You Hire the Right Candidate?

• Be thorough and conscientious in your decision making

• Acknowledge red-flags• Have multiple people meet with the

candidate prior to an offer– This could be several supervisors– Or it could be co-workers

• Avoid the temptation of filling an opening with a “warm body”

• A bad hire today often leads to problems in developing and retaining those employees going forward

How to Develop IT Professionals

Understand Your Employees:• Interests• Hopes• Dreams• Fears• Disappointments• Motivations• Goals• Activities that Build (and Drain)

Energyhttp://www.cio.com/research/leadership/edit/ec031105_leadership.html Viewed October 17,2005

Developing Employees (cont.)

A Good Manager Provides:• Challenges • Leadership• Learning Opportunities• Encouragement• Relaxed Environment• Open Communication• Direct Communication• Opportunity for Feedback• An Understanding of Feelings and

Interestshttp://ianrpubs.unl.edu/Misc/cc352.htm Viewed October 17, 2005

Retaining IT Professionals

Retention strategies can be divided into 5 areas, but managers should view as a whole:

•Financial•Work Content•Career•Affiliation•Benefits

Kochanski, James, and Ledford, Gerald, " ’How to keep me’--retaining technical professionals” Research Technology Management, May/Jun 2001, Vol. 44, Iss. 3, pp. 31-38.

McConnell, Tim, “Retention Strategies for IT Professionals Not a Problem? Think Again” viewed at http://www.shrm.org/technet/library_published/IC/CMS_009857.asp, Sept. 2004.

Earle, Heather A, “Building a Better Workplace of Choice: Using the Work Environment to Attract and Retain Top Talent” Journal of Facilities Management, Dec 2003, pp. 244-257.

Financial Retention Strategy

• Competitive pay• Incentives• Cash recognition

Note: Higher pay alone may attract, but not enough retain or engage IT professionals.

Kochanski, James, and Ledford, Gerald, " ’How to keep me’--retaining technical professionals” Research Technology Management, May/Jun 2001, Vol. 44, Iss. 3, pp. 31-38. Jamrog, Jay, “The Perfect Storm: The Future of Retention and Engagement” HR. Human Resource Planning, 2004, Vol. 27, Iss. 3, pp. 26-33.Lockwood Diane and Ansari, A., “Recruiting and Retaining Scarce Information Technology Talent: a Focus Group Study” Industrial Management and Data Systems, 1999, Vol. 99, Iss. 6, pp. 251-258.

Work Content Retention Strategy

• Challenging assignments that contribute to company success

• Variety in tasks to avoid boredom from mundane or routine job

• Feedback, leadership and mentoring from manager are essential

Kochanski, James, and Ledford, Gerald, " ’How to keep me’--retaining technical professionals” Research Technology Management, May/Jun 2001, Vol. 44, Iss. 3, pp. 31-38. Jamrog, Jay, “The Perfect Storm: The Future of Retention and Engagement”, HR. Human Resource Planning, 2004, Vol. 27, Iss. 3, pp. 26-33.Lockwood Diane and Ansari, A., “Recruiting and Retaining Scarce Information Technology Talent: a Focus Group Study” Industrial Management and Data Systems, 1999, Vol. 99, Iss. 6, pp. 251-258.

Career Focus Retention Strategy

• Training and development opportunities to increase skills

• Provide for career development and opportunities

• Supervisor as teacher, mentor and leader

• Make experience transferable• Instant gratification


Affiliation Retention Strategy

• IT Professional’s feeling of attachment to the organization

• Organization’s (top management) support of the IT Professional

• Work environment engages employee and provides flexibility to allow employee to balance work/life/family


Benefits Retention Strategy

• Standard benefits – health care, retirement package, 401(k), etc.

• Non-cash recognition• Flex time• Virtual office environment• Additional vacation• Stock options


Why is It Important to Retain Employees?

Direct Costs•Separation Costs-

• Exit Interview• Outplacement Fees• Litigation • Severance

•Replacement Costs- • Sourcing • HR’s Time• Hiring Manager’s Time•Travel/Relocation • Signing Bonuses• Orientation• Training

Indirect Costs•The greatest loss, although the most difficult to determine•Decreased Productivity•Lost Sales•Lost Customers•Department Morale

Because It Impacts the Bottom Line!

Http://www.ilogos.com/en/expertviews/articles/strategic/20031007_YL.html, viewed October 30, 2005.

http://www.ilogos.com/en/expertviews/articles/strategic/20031007_YL.html

Let’s Talk Money!

How much does turnover actually cost a company?

Salary of $40,00010% turnover a year100,000 employees

Turnover costs would equal $400 million. A $2 million dollar savings would be recognized by decreasing turnover by ½ percent.

Http://www.ilogos.com/en/expertviews/articles/strategic/20031007_YL.html, viewed October 30, 2005.

http://www.ilogos.com/en/expertviews/articles/strategic/20031007_YL.html

The Boeing Company Overview

•Boeing founded in 1916 in Puget Sound, Washington–Mergers and acquisitions (Rockwell Intl., Hughes Space and Communications, McDonnell Douglas, etc.) led to the broad, balanced global aerospace corporation it is today–Leading producer of commercial jetliners–World’s largest designer and manufacturer of military aircraft–World’s largest provider of commercial and military satellites; leading rocket manufacturer; and NASA’s largest contractor–Develop advanced technology that is defining the future of aerospace

•2004 sales were $52.5 billion from customers in 145 countries–International sales were nearly 30 percent–IDS revenues of $30.5 billion (approx 60% of total company revenue)

•More than 151,000 employees in 48 states in the U.S. and 67 countries

–IDS…over 80,000 employees (52% of total)–St. Louis…16,422 employees (combined business units)–St. Louis IT department…4500 employees (5.6% of IDS)

www.boeing.com and Boeing Company Intranet, viewed October 15-31, 2005.

The Boeing Company Business Units

http://www.boeing.com/companyoffices/aboutus/overview/powerpoint/boeing_overview.ppt , viewed October 30, 2005.

The Boeing Company Case Study

• Interview with Gail Flinn, EA to Don Imholz, VP of Information Technology, with input from Don (October 2005)

• Annual IT budget is Boeing Limited Information and cannot be shared

• Turnover rate unavailable– Last employee to leave IT department

pursued new opportunity outside of IT

Interview with Gail Flinn and Don Imholz at The Boeing Company; October 25, 2005.

24

Boeing IT Leadership TeamS

up

po

rt

Reports to a business unit in additional, non-IT assignment

ChiefInformation

Officer

Scott Griffin

Puget Sound

IT S

ys

tem

s &

S

erv

ice

s

Human ResourceSystems

Linda Meeks

Chicago

BusinessSystems

Don Imholz

St. Louis

PLMSystems

Dave Fennell

Puget Sound

Computing & Network

Operations

Chris Kent

Puget Sound

Supplier Mgmt &

Procurement

Greg Farmer

Puget Sound

Finance/Bus. Mgmt

Curtis Walker

HumanResources

Jeri Ure

Puget Sound Puget Sound

Tom Koehler(acting)

Communications

Puget Sound

Pro

jec

ts &

E

nte

rpri

se

F

un

cti

on

s IT Strategy

Barb Claitman

Puget Sound

Information Protection &

Assurance

Janet Marott

Southern Cal

SEI &Arch

Southern Cal

RadhaRadhakrishnan

Bu

sin

es

s

Pa

rtn

ers

CraigHarrison

SSG/WHQ

Puget Sound

DaveFennell

BCA

Puget Sound

MarkBurgess

PhantomWorks

Puget Sound

BoeingCapital

Puget Sound

DonImholz

IDS

St. Louis

Scott Griffin(acting)

Connexionby Boeing

Puget Sound

LeoEineker

The Boeing Company Employee Intranet , viewed October 30, 2005.

Boeing Company Leadership

http://www.boeing.com/companyoffices/aboutus/overview/powerpoint/boeing_overview.ppt , viewed October 30, 2005.

Boeing Information Technology Core

VisionOne team of IT integrators enabling innovation and business success

Mission•To deliver IT solutions that add value and capability across the extended global enterprise, We:

–Create competitive advantage for Boeing business units

–Partner with process councils to horizontally integrate Boeing

–Provide innovative systems and technology that are easy to use

–Create an environment where each of us can achieve our greatest potential

Principles & Practices•People first ... everyone is involved •One team ... focused on customers and valued solutions •Leadership in common processes and systems •Agile and lean ... minimize bureaucracy and eliminate waste •Innovative ... "find a way" •Always learning ... open to diverse perspectives •Facts and data ... timely decisions •Open and honest communication ... straight talk •Ethics and integrity beyond reproach •Emotionally resilient ... respect and trust each other •Forward looking .... enjoy the journey and each other

Concept of Operations…..IT will have a business partner process that will have clearly defined interfaces and processes to ensure we meet the computing requirements of the business units, process councils, and sites…..IT will operate with a lean management structure that enables direct communication, employee engagement, rapid decision-making, and process efficiency.

Recruiting IT Professionals at Boeing

• Boeing Enterprise Staffing System– Including Employee Referral Program

• Global Staffing organization– Common enterprise-wide staffing processes– Intellectual Capital Management capability– Strategic partnerships with customers– College Relations/Recruiting structure and

processes• Enterprise University Relations• Internship programs• Monster.com• Word-of-mouth

““Hot Skills Areas” currently are Project Management and Hot Skills Areas” currently are Project Management and Systems ArchitectureSystems Architecture


Developing IT Professionals at Boeing

• Learning Together Program– Tuition reimbursement

• Library / Learning Center– Skills development– Personal time and company time

• Performance Development Partnership (PDP)– Foster improved communications– Individual development of skills /

abilities– Work expectations


Retaining IT Professionals at Boeing

• Active development (previous slide)• Boeing Leadership Center

– IS University– Program Management Workshop

• Succession Planning• Rotation Programs

– IS Career Foundation Program– Boeing IT Rotation Program

• Virtual Office Environment• Pride @ Boeing Awards• Performance Review


Retaining IT Professionals at Boeing

Interview with Gail Flinn and Don Imholz at The Boeing Company; October 25, 2005, and Boeing Employee Intranet.

Lessons Learned / Best Practices for Managers

• Recruiting– Define job description– Use all recruiting resources available– Hire the best match for the position; appropriate pay

range

• Developing– Managers need to understand needs and skills of

employees– Managers need to determine motivators for employees– Opportunity for defined career path

• Retaining– Development and retention always requires a

partnership between the employee, the manager, and HR

– Create a work environment where employee can work and grow

– Develop financial and non-financial incentivesO’Donnell, Anthony, “A good employee is the best IT asset” Insurance & Technology, Oct 2003, Vol. 28, Iss. 10, pp. 41-43.

Download - Recruiting, Developing and Retaining IT Professionals

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