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Recruiting, Developing and Retaining IT Professionals

Recruiting, Developing and Retaining IT Professionals. IS6800 / PMBA Cohort 2007. Presented by: Carolyn Basile, Jennifer Lewis & Thong Tarm. Growth of Information Workers 37% in 1950 to 59% in 2000. Percent composition of U.S. employment by type of worker, 1950–2000.

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Recruiting, Developing and Retaining IT Professionals

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  1. Recruiting, Developing and Retaining IT Professionals IS6800 / PMBA Cohort 2007 • Presented by: Carolyn Basile, Jennifer Lewis & Thong Tarm

  2. 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. 

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

  4. 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.

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

  6. Employment and Wage Information for IT Professionals http://www.bls.gov/oes/current/oes150000.htm, viewed October 30, 2005.

  7. 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 - $105,000 http://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=keywordtitleselect&searchtype=1&geo=Clayton%2C+MO+63105l viewed October 15, 2005

  8. 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

  9. 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.

  10. Why Does it Matter if You Hire theRight 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

  11. How to Develop IT Professionals Understand Your Employees: • Interests • Hopes • Dreams • Fears • Disappointments • Motivations • Goals • Activities that Build (and Drain) Energy http://www.cio.com/research/leadership/edit/ec031105_leadership.html Viewed October 17,2005

  12. 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 Interests http://ianrpubs.unl.edu/Misc/cc352.htm Viewed October 17, 2005

  13. 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.

  14. 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.

  15. 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.

  16. 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 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.

  17. 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 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.

  18. Benefits Retention Strategy • Standard benefits – health care, retirement package, 401(k), etc. • Non-cash recognition • Flex time • Virtual office environment • Additional vacation • Stock options 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.

  19. 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.

  20. Let’s Talk Money! How much does turnover actually cost a company? Salary of $40,000 10% turnover a year 100,000 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.

  21. 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.

  22. The Boeing Company Business Units http://www.boeing.com/companyoffices/aboutus/overview/powerpoint/boeing_overview.ppt , viewed October 30, 2005.

  23. 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. Computing & Network Operations Chris Kent IT Systems & Services Human ResourceSystems Linda Meeks PLMSystems Dave Fennell BusinessSystems Don Imholz Puget Sound St. Louis Chicago Puget Sound IT Strategy Barb Claitman SEI &Arch Information Protection & Assurance Janet Marott RadhaRadhakrishnan Puget Sound Southern Cal Southern Cal BoeingCapital PhantomWorks SSG/WHQ CraigHarrison MarkBurgess IDS BCA Puget Sound St. Louis Puget Sound Puget Sound Puget Sound DonImholz DaveFennell Supplier Mgmt &Procurement Greg Farmer Puget Sound Boeing IT Leadership Team ChiefInformation Officer Scott Griffin Puget Sound Connexionby Boeing Business Partners Scott Griffin(acting) LeoEineker Puget Sound Projects & Enterprise Functions Tom Koehler(acting) Finance/Bus. Mgmt Curtis Walker HumanResources Jeri Ure Communications Support Puget Sound PugetSound Puget Sound Reports to a business unit in additional, non-IT assignment The Boeing Company Employee Intranet , viewed October 30, 2005.

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

  26. Boeing Information Technology Core Vision One 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.

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

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

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

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

  31. 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 incentives O’Donnell, Anthony, “A good employee is the best IT asset” Insurance & Technology, Oct 2003, Vol. 28, Iss. 10,  pp. 41-43.

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