Recruiting, Developing and Retaining IT Professionals

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, 19502000.
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
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.
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/s
wzl_compresult.asp?jobcodeIT10000136jobaltername
SeniorSystemsAdministratorjobtitleSystemsAdm
inistrator2CSr2EnarrowdescIT2D2DAllnarro
wcodeIT03zipcode63105metrocodestatecodeMOs
tateMissouripagenumber1searchpagekeywordtitle
selectsearchtype1geoClayton2CMO63105l
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 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

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/ec0311
05_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/C
MS_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 Professionals feeling of attachment to the
  organization
• Organizations (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?

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

• Direct Costs
• Separation Costs-
• Exit Interview
• Outplacement Fees
• Litigation
• Severance
• Replacement Costs-
• Sourcing
• HRs Time
• Hiring Managers Time
• Travel/Relocation
• Signing Bonuses
• Orientation
• Training

Because It Impacts the Bottom Line!
Http//www.ilogos.com/en/expertviews/articles/stra
tegic/20031007_YL.html, viewed October 30, 2005.
20
Lets 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/stra
tegic/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
• Worlds largest designer and manufacturer of
  military aircraft
• Worlds largest provider of commercial and
  military satellites leading rocket manufacturer
  and NASAs 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
• IDSover 80,000 employees (52 of total)
• St. Louis16,422 employees (combined business
  units)
• St. Louis IT department4500 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/overv
iew/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
Boeing IT Leadership Team
ChiefInformation Officer Scott Griffin
Puget Sound

Connexionby Boeing
Business Partners
Scott Griffin(acting)
LeoEineker
Puget Sound
Projects Enterprise Functions
Finance/Bus. Mgmt Curtis Walker
HumanResources Jeri Ure
Tom Koehler(acting)
Communications
Support
Puget Sound
Puget Sound
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/overv
iew/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 _at_ 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

ODonnell, Anthony, A good employee is the best
IT asset Insurance Technology, Oct 2003, Vol.
28, Iss. 10,  pp. 41-43.