Audit Committee

1
Audit Committee

• November 17, 2008

2
Agenda

• 2009 Work Plan
• Human Resources Review

3
2009 Work Plan

• Performance Measurement
• Annual Status Report (includes strategic,
  operational KPIs and MPMP key performance
  indicators)
• Community Investment Strategy key performance
  indicators

4
2009 Work Plan continued

• Risk Management
• Corporate risk register
• Delta project
• CMF project
• King Street project
• Contact centre project phase 2

5
2009 Work Plan continued

• Internal Audit
• CVOR compliance testing
• Recruitment resume sampling
• Lets Talk compliance testing
• ISO 14001, next phase
• Community Investment Strategy value for money
  audits
• HR process reviews
• 2009 physical inventory participation
• Cash audits (golf courses, market)
• Engineering Review workshop facilitation

6
Human ResourcesReview
7
HR Review - Outline

• Review of objectives
• Scope of review
• Review team
• Methodology
• Key findings recommendations
• HR division effectiveness
• Recruitment process
• Attractive employer
• Next steps

8
HR Review ObjectivesOrganizational and
functional review requested by Council

• Effectiveness of the HR division as a whole
• Recruitment process
• Attractiveness of the City of Kitchener as an
  employer

9
Scope of Review

• In Scope
• HR policy review
• General review of entire HR structure, key roles
  / tasks performed and service levels
• Review of the management structure and succession
  planning
• Examination of the Citys degree of success at
  being an attractive employer
• In-depth review of the recruitment process
• Not In Scope
• Job evaluation system
• Salary / Compensation review
• Benefits
• Health and Safety
• Training

10
Review Team Members
11
Methodology

• The following research and analysis was
  undertaken for the review
• Internal literature review of relevant historical
  reports, customer survey results, employee
  culture survey results, organizational charts
• Customer interviews 35 interviews were
  conducted throughout the Corporation
• Employee interviews 22 HR staff were
  interviewed
• Council interviews 4 interviews with Council
• Union interviews 5 interviews with union
  executives
• Analysis of current service priority and success
  ratings to identify gaps between HR staff and
  customer perceptions
• Process mapping for the recruitment process and
  confirmation of the documented process content
• Benchmarking with 6 other municipalities and 5
  non-municipal firms in the areas of
  organizational structure, programs and policies

12
Current Environment

• Current division consists of 21 staff, including
  one Director, 2 Managers, and 5 Supervisors
  supporting 1922 City employees
• Functions and services provided by the division
  include
• Health and Safety, including WSIB administration
• Benefits
• Wellness
• Compensation
• Recruitment
• Training (including employee development training
  (TED), management training, vehicle and equipment
  training)
• Labour relations
• Human rights
• PeopleSoft administration
• Organizational development
• Standard operating procedures development

13
Key Findings and RecommendationsHR Division
Effectiveness

• Strengths
• Staff are helpful and knowledgeable in their
  areas of expertise
• Most staff welcome change and are willing to
  expand their skills
• Positive feedback from clients on wellness
  programs, health and safety, benefits
• Some programs initiated by the division are
  linked to corporate strategic goals (i.e.
  diversity, succession planning)
• Staff pull together in a crisis

14
HR Division Effectiveness continued
15
HR Division Effectiveness continued
16
HR Division Effectiveness continued
17
HR Division Effectiveness continued

• Organization Structure
• Since 2000, the staff complement in HR has grown
  from 17 staff to 21. The HR staff to client
  ratio has remained constant at 1.1 over that
  period
• Organizational structures were benchmarked to
  compare HR model used, staff complement, and
  staff to client ratios
• 6 other municipalities (Cambridge, Waterloo,
  Markham, Mississauga, Region of Waterloo, York
  Region)
• 5 local companies (Conestoga Rovers, Research in
  Motion, Sun Life Assurance, Christie Digital,
  Dare Foods)

18
HR Division Effectiveness continued

• Organization Structure
• Staff and customer feedback about the current
  structure
• Too many specialists and not enough back-up for
  when people are absent
• Difficult to access HR staff people dont know
  who to call
• Silo mentality no cohesive flow between areas
  for processes
• Coverage of reception not well planned and
  perceived as a low priority
• Imbalance of roles of managers some seem to
  have too many reports while others have very few
• Organizational structure is confusing to some
  outside of the division

19
HR Division Effectiveness continued

• Organization Structure
• Based on the analysis it is recommended that the
  HR division consider transitioning to an HR
  Business Partner model
• HR Business Partner the division is arranged in
  some combination of the specialist and generalist
  models where there is some dedicated support to
  divisions however there are also functional
  specialists to provide the in-depth knowledge
  required. This is currently considered Best
  Practice as it incorporates the best of both
  models. When applied to an HR division it allows
  them to become a strategic partner with the
  departments they support.

20
Recommended Model HR Business Partner Model
Human Resources Division

• HR Client Services
• (front office)
• First point of contact
• HR consultants
• General inquiries
• Recruitment
• Liaison with specialists
• Organizational development
• Assigned to departments
• Located at City Hall, Fire, CMF
• All training
• Labour relations

• HR Support Services
• (back office)
• Specialists
• support consultants
• process transactions
• Benefits
• Wellness
• Compensation
• Health Safety
• PeopleSoft

Note this chart shows functional groupings, NOT
individual positions
21
HR Division Effectiveness continued

• The Business Partner model achieves these
  objectives
• Strategic alignment of the model and the
  functions
• Ability to effectively manage role coverage
• Appropriate / equitable workload distribution
• Appropriate manager to staff ratio
• Potential for employee development and
  advancement opportunities
• Leverage the knowledge and expertise of current
  HR staff
• Opportunity for HR presence at outside locations
• Ability to effectively share information within
  the division and create seamless workflow

22
Key Findings and Recommendations HR Recruitment
Process

• Strengths
• Staff have ability to work with minimum
  supervision or support
• Able to meet challenging deadlines
• Aim to satisfy clients
• Knowledgeable staff

23
HR Recruitment Process continued
24
HR Recruitment Process continued
25
HR Recruitment Process continued
26
Key Findings and RecommendationsAttractive
Employer

• Backbone of success in any organization is its
  people. Qualified, committed staff are critical
  to meeting any business objectives.
• City of Kitchener will be challenged in future as
  we deal with the shortage of talented employees
• City will see 36 of management retire by 2015,
  rising to 63 by 2021
• Taken from Canadas Top 100 Employers list
  these factors should be used as a benchmark
  against companies competing for the same talent
• - Physical workplace - Work atmosphere,
  social
• - Health, financial, benefits - Vacation, time
  off
• - Communications - Performance management
• - Training, skills development - Community
  involvement

27
Key Findings and RecommendationsAttractive
Employer

• Create a corporate-wide attraction and retention
  strategy including a thorough gap analysis
  looking at current trends, relative costs and
  benefits and needs across the corporation
• Use the People Plan as a basis for this
  strategy
• HR should act as ambassadors for the City
• Actively market the City of Kitchener, attend
  more outreach events, job fairs, develop a
  high-quality welcome package for all interview
  candidates
• Conduct more regular salary surveys to keep us as
  competitive as possible
• Improve our web presence to attract job seekers

28
Next Steps

• HR management to provide a response within 3
  months