Aep workforce planning and process
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AEP Workforce Planning and Process. August 26, 2008. CEWD Midwest Region Meeting. The AEP Workforce Today. The AEP workforce is aging The average age of an AEP worker is 47 24% of AEP workers are currently eligible for retirement. AEP enjoys a stable workforce

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AEP Workforce Planning and Process

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Aep workforce planning and process

AEP Workforce Planning and Process

August 26, 2008

CEWD Midwest Region Meeting


The aep workforce today

The AEP Workforce Today

The AEP workforce is aging

  • The average age of an AEP worker is 47

  • 24% of AEP workers are currently eligible for retirement

AEP enjoys a stable workforce

  • The average AEP employee has 17.7 years of service


Workforce planning why

Workforce Planning: Why?

Business Drivers

  • Higher-than-normal turnover due to aging workforce

    • Attrition will outpace employees ready to step into next level of job family

    • A decade of cost-cutting has reduced overall skilled complement and on-the-job training opportunities

    • Historical approach to training may require four – five years for new hires to attain required skill level

  • Aging workforce is a national issue

    • Demographically, there are fewer workers available to replace aging baby boomers

  • Projected retirements require greater advance planning

  • Need to anticipate and address changing skill sets

  • Continued opportunity to increase diversity of workforce


Workforce planning process

Workforce Planning Process

Analysis

  • Needed data is determined & gathered

  • Data is analyzed and factors are identified that might impact the workforce

  • Determination of the workforce needed to achieve AEP’s Business Goals and Strategies

Analysis

Plan Creation / Revision

  • Strategies are selected to address the specific workforce challenges of that business unit.

  • A plan to achieve the future workforce is defined based on the strategies selected.

  • A Talent Management Review meeting is held with the leadership of the Business Unit to review and approve the plan moving forward.

Analysis

Plan

Creation

/Revision

Execution

  • The Strategies selected and approved are implemented.

  • Individuals are assigned and carry out various actions to achieve the plan.

  • Business leadership reviews and monitors progress of plan execution.


Defining the need

Defining the Need

Applied predictive modeling to 2008 workforce to quantify expected retirements

  • Employee age plus years of service is a strong predictor of potential retirements

    • AEP history shows that employees with age and years of service totaling 90 or more will retire within five years

    • Over a historic 5 year period, 8.3% of the workforce retires

    • Positions that have more than 8.3% of the workforce with ages and years of service totaling 90 or more will experience greater than normal retirement rates

  • Other Turnover

    • Terminations for reasons other than retirements average 8.8% every 5 years

  • Turnover for a normal 5 year period is about 17%


Defining the need continued

Defining the Need, continued

  • Generally, AEP positions will experience turnover of 18.9% over next five years

    • Projected turnover 2008– 2012 only 1.8% greater than historical average

  • However, some locations and job families will experience turnover significantly greater than 20%


Aep workforce planning and process

FROM 2008-2012, AEP IS PROJECTED TO LOSE 18.9% OF ITS EMPLOYEE POPULATION TO RETIREMENT AND OTHER TURNOVER

  • Versus a 17.1% historical norm for 5-year turnover


There has been significant progress with replacing craft turnover

THERE HAS BEENSIGNIFICANT PROGRESS WITH REPLACING CRAFT TURNOVER


Front line leader turnover is especially concerning

FRONT LINE LEADER TURNOVER IS ESPECIALLY CONCERNING

2008 Projected 5-year turnover among Supervisors


Workforce planning strategies

Attract Retain Talent

Workforce Planning Strategies


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