Manager's Guide to Planning and Managing Workforce Transitions

Prepared by:
PSHRMAC, TBS, PSC, CSPS, PCO and with special thanks to John Kung (PSHRMAC) and Paulette Panzeri (INAC)

Annexes

Introduction

This Manager's Guide to Planning and Managing Workforce Transitions is intended as a general guide to help managers to better understand, plan and manage workforce transitions as a result of changes in government priorities leading to organizational changes.

This document is not a guide to the Work Force Adjustment Agreements nor is it meant to be a comprehensive guide on organizational change and transition management. Although this guide touches on a number of important policies and directives, it should not be construed in any way as an interpretation of these specific policies nor as a "how to" guide to applying them.

This guide is designed, however, to help managers who play either a corporate or a "team-leader" role in the planning and management of organizational transitions. It should also support human resource specialists and other employees who are affected by workforce transitions or who have related responsibilities.

The success of any workforce transition depends on the active participation of management, bargaining agents, human resources specialists, and employees, in an environment characterized by collective support and recognition of respective responsibilities. Refer to Annex A for more details on the roles and responsibilities of various organizations and entities in general, and specifically during workforce transitions.

The information contained in this guide is drawn from a wide variety of sources in both the public and private sectors and reflects the collective wisdom of organizations that have undergone various workforce transitions. As workforce transition is an on-going process, both in the public and private sectors, we will continue to update this document based on new experiences and lessons learned.

Please contact the HR Planning team at the Public Service Human Resources Management Agency of Canada at 613-957-2300 with your comments or suggestions for amending this guide.

The impact of workforce transitions on individuals

Although workforce transition has an impact on entire organizations, it can have profound impacts on the individual. Whether you are a manager or an employee, your personal approach to change, and your perception of the potential impact of a particular change, and its associated transition may lead to a number of different reactions. Understanding the psychological impact of transitions will help managers to better support their employees during transitions.

For more details on the psychological impact of transitions on individuals and what managers can do to support their employees, please refer to annex D of this guide.

Why are workforce transitions becoming so common in the public service?

The answer to this question lies in today's environmental context of managing complex organizations. Three areas are of particular importance:

1. The changing nature of the Public Service;
2. Demographics; and
3. Global trends.

The changing nature of the Public Service

As the needs and expectations of Canadians and government priorities change, so too must the Public Service change in terms of the types of services it provides, as well as how these services are provided to Canadians. As the Public Service adapts to the government's modern management agenda, internal and external programs and services are also constantly being re-evaluated in order to achieve greater efficiencies and value for money that Canadians have come to expect and demand of government.

As part of the continuous search to improve services to Canadians, expenditures and resources are continuously being re-evaluated and re-allocated from lower priorities to higher priorities. The public service will also continually look for new and more efficient ways of delivering services to and for Canadians. For example, ten years ago, we provided few services via the internet, now Canadians expect to be able to access government services through the internet.

For more information on the drivers of this change and the government's initiatives in response to this change, refer to the government's website on Strengthening Public Sector Management.

Demographics

In addition to these business realities, the public service must also address the issues of retention and renewal as baby boomers retire and their replacements enter the workforce. Recent data indicate that, while projected retirement trends are expected to increase slightly and although the labour market is expected to tighten somewhat over the next several years, the public service is not expected to experience a general labour shortage. Managers and HR planners however will need to be attuned to specific occupational shortages and trends in their areas of responsibility and the public service, as a whole, will need to manage the transfer of knowledge during this transitory period.

Global Trends

The public service is also facing global trends towards a workplace that is more and more knowledge-based and technologically-driven. Workers are now more highly educated and culturally diverse. The challenge of improving productivity has also increased the use of technology and the automation of repetitive transactions in the workplace. These factors all have an impact on the public service workforce.

A model of organizational change and workforce transition

Figure 1 below illustrates a basic model of workforce transitions in the context of the government's priority development, delivery and reporting process, which captures the need to constantly improve services to Canadians; the role of integrated HR and business planning in aligning a workforce to its organizational objectives; and the resulting workforce transitions as a continuous process. The outer circle represents the context of priorities and frameworks in which we manage; the inner circle represents how we manage systematically within that broader context.

This simplified model of workforce transitions should not be interpreted as necessarily having an impact on an entire workforce. In fact, the majority of transitions only affect a small percentage of the overall workforce of an organization. This is not to say however that just because an individual is not directly affected by a transition that he or she will not feel the psychological effects of the transition.

It should also be noted that as this process is taking place, employees within the public service, as well as others outside the public service, such as citizens, parliamentarians, and potential employees are taking note of these transitions and evaluating the public service as an organization and as an employer. Therefore, in order for the government of Canada to be seen as an employer of choice, workforce transitions must be managed effectively and with due attention to their impact on individuals.

General Guidance

In planning and managing workforce transitions, managers should be guided by the Values and Ethics Code for the Public Service, as well as by the relevant legal, policy and management frameworks.

Values and Ethics Code for the Public Service

Managers must act in accordance with the Values and Ethics Code for the Public Service in the performance of their duties. Recognizing that workforce transitions are disruptive to organizations and stressful to both managers and employees, managers should keep in mind the following values from the Code during the transition process:

• In the Public Service, how ends are achieved should be as important as the achievements themselves;
• Public servants should constantly renew their commitment to serve Canadians by continually improving the quality of service, by adapting to changing needs through innovation, and by improving the efficiency and effectiveness of government programs and services offered in both official languages;
• Respect for human dignity and the value of every person should always inspire the exercise of authority and responsibility;
• People values should reinforce the wider range of Public Service values. Those who are treated with fairness and civility will be motivated to display these values in their own conduct; and,
• Public Service organizations should be led through participation, openness and communication and with respect for diversity and for the official languages of Canada.

Legal and policy frameworks

The legal framework that governs the movement of public service employees includes legislation and regulations, such as the Public Service Employment Act and the Public Service Employment Regulations, as well as policies, such as the Work Force Adjustment Directive, the Executive Employment Transition Policy, the Deployment Policy, the Relocation Directive and other relevant policies applicable to various workforce situations. Managers are advised to be aware of the legislation and policies applicable to their specific workforce situations and to consult the HR specialists within their organizations while planning for a workforce transition.

Public Service Modernization

Managers should also note that the Public Service Modernization Act outlines a new labour management relationship and resourcing system, as well as retains core values that are expected to guide the management of the Public Service. The Public Service Modernization Act puts a premium on:

• Fair and transparent employment processes;
• Protection of merit, non-partisanship, representativeness and linguistic duality within the public service;
• Respect for employees;
• Building collaborative efforts between labour and management;
• Protection of the public trust and fair, credible and efficient resolution of issues.

Accountability Frameworks

The Treasury Board Secretariat and PSHRMAC have established a Management Accountability Framework (MAF), intended to translate the vision of modern public service management, as established in Results for Canadians, into a set of management expectations. In managing workforce transitions, the "people" element of the MAF, as well as the "workforce" and "workplace" outcomes of the People Component of the Management Accountability Framework (PCMAF) are particularly relevant. These items outline the expectations of what managers should strive to achieve when managing their human resources.

Effective transition management

Integrated business and HR planning

Integrated planning is the foundation for assessing and understanding the current and future HR needs of departments, agencies and the public service as a whole. Integrated planning is central to the promotion of healthy organizations that retain competent, committed and engaged employees across the public service. Integrated planning is also an important building block in continuously improving and building the human capacity of the public service to deliver services to Canadians. It is a way to align the workforce to new service opportunities and the changing needs of Canadians. This facilitates a broader and continuing process of change and adaptation.

Figure 2 summarizes the five key steps to integrating HR and business planning. In addition, attached as Annex C, is an integrated HR planning and business planning checklist. It is part of a larger set of tools.

Planning for transitions

As the public service adapts to the challenges of improving productivity, technological innovation, fiscal constraint and changing client needs, transition considerations are paramount to success. Workforce transition considerations must be factored into an organization's on-going integrated human resources and business plan. Planning for workforce transitions entails having a vision of the organization's desired state, understanding the organization's current state, and moving the organization systematically towards the desired state. Attached, as Annex B, is a list of key change principles adapted from the publication "Practicing Organization Development: A Guide for Consultants".

Characteristics of organizations that effectively manage change:

Drawing from the collective wisdom of organizations from both the private and public sectors, it is clear that organizations that successfully manage transitions approach the challenge from both a business and a human resources perspective.

1. They provide leadership, direction and support.
   • Provide open, honest, and timely communication throughout the process.
   • Ensure that managers are informed and that they are familiar with the tools and services available to assist employees (e.g., career assessment services).
   • Ensure that employees understand the reasons for change.
   • Provide concrete and specific information and assistance to employees concerning a full range of career transition issues and problems.
   • Inform managers where they can get assistance and that they are expected to use this assistance.
2. They are clear about their principles and values.
   • Ensure transitions are aligned with corporate values.
   • Help managers and employees to understand the values of the organization as well as the current and projected mandates of the organization.
3. They engage their people.
   • Commit to providing an atmosphere of continuous learning and the development of a sustainable and adaptable workforce.
   • Engage their people in the decision making process where possible.
   • Encourage the active participation of bargaining agents and employees at all levels of the organization.
4. They plan and implement strategically.
   • Examine both long-term and short-term effects of the measures they propose to take.
   • Identify and maintain core competencies and skills on a continuing basis throughout the transition.
5. Monitor and evaluate workforce transitions.
   • Ensure that organizational objectives are being achieved.
   • Learn from successes as well as from mistakes.

How to plan for effective workforce transitions

Workforce transition considerations:

Before transition

• Conduct integrated planning;
• Include transition issues in strategic and operational plans;
• Promote organizational learning;
• Provide transition training to managers;
• Know your obligations under various policies;
• Develop a communication strategy;
• Engage employees and bargaining agents; and
• Identify potential resistance to change.

During transition

• Communicate the need and reason for change;
• Provide employees with as much information as possible;
• Be visible and accessible;
• Dispel rumours quickly;
• Treat everyone with respect and dignity;
• Provide support to all employees; and
• Seek help as required.

After transition

• Reinforce the mandate of the new organization;
• Expect an initial decline in productivity;
• Support employees to recognize new service opportunities; and
• Provide employees with career and developmental opportunities.

Five key elements

Effective leaders ensure that the organization has planned for changes in its workforce. This involves paying attention to five key elements, as identified in "Renewing Organizations: Managing Workforce Transitions", R. Nininger and M Arditti (2004).

1. A business planning process that includes transition issues in strategic and operational plans.
2. An alignment of organizational needs and individual potential.
3. An investment in the development of talent.
4. Effective management of workplace performance and well-being.
5. A commitment to ensuring corporate continuity.

Key questions

In building workforce transitions into an organization's integrated human resources and business planning process some key questions for organizations are as follows:

Where is your organization headed?

• How and what types of services will Canadians expect the organization to provide in the next 3 to 5 years?
• What impacts could environmental factors have on the types of services the organization provides to Canadians or other departments and agencies?

How will change impact on your organization?

• What skill sets and competencies will the organization need, in order to provide these services in the future?
• What nnumbers and types of employees will the organization need in the future to deliver the types of services required by Canadians?
• Which specific areas of the organization could be impacted by these changes?
• What are the current composition and skills of employees in the affected areas and in the organization as a whole?
• How can existing employees be trained to address identified skill gaps?
• To what extent will the organization need to recruit new employees with special skills? From where and how?
• What will all of this cost? To what extent will change funding be required and where will it be obtained?

What can you do to prepare for change?

• How can training be used to close the gap between the current and future HR needs of the organization?
• How and when should planned changes and anticipated HR impacts be communicated to employees and how will consultation be undertaken? Organizations should ensure that communications with employees are made in the official language of the employees' choice.
• How can bargaining agents be involved from the beginning?
• What support systems will be needed to help employees throughout the transition and to adjust to these changes?

Workforce vacancy management

Organizations that are successful in workforce transitions combine quick, short-term actions, as appropriate, with longer-term strategies. They make sure that they protect the skills they need over the long term and even increase investment in certain areas, jobs and individuals - providing additional training where necessary.

Mix of strategies

The choice of strategies is determined by the workforce transition objectives that the organization is trying to achieve. The mix of strategies chosen by different organizations to achieve workforce changes also varies depending on such factors as: characteristics of their workforce; applicable legal requirements and collective agreements; the organization's human resources philosophy; and, the organization's previous experiences (good and bad) with workforce changes. In instances where workforce transitions affect the whole of government, government-wide strategies are often developed to manage transitions collectively.

Workforce vacancy management considerations

When considering workforce management options, there is no best solution; each choice has potential advantages and disadvantages as outlined in the Table below and a mix of strategies is often necessary to achieve the desired results. The list of options below is not meant to be a guide on staffing practices, nor is it meant to be an exhaustive list of all the options available to managers when considering changes to their workforce. It is simply intended to give managers a sense of the potential options available to them to achieve changes in their workforce.

Note that in many of the situations described below, managers have specific obligations under various policies and regulations, such as the Public Service Employment Act PSEA) the Public Service Employment Regulations (PSER), the Work Force Adjustment (WFA) Agreements, the Executive Employment Transition Policy or other relevant policies. Managers who have not previously had experience with the application of these policies should familiarize themselves with the details. They should also consult the appropriate human resources specialists in their departments or agencies for further clarification.

Successful organizations recognize the potential advantages and disadvantages of the methods they choose; they are careful to pick a mix that best positions them for the future. They also try to mitigate the negative aspects of their choices. For example, organizations that have a no-lay-off policy and have restricted all new hires may want to pay particular attention to university intake, the Management Trainee Program and other developmental programs in the medium-term to ensure adequate junior staff for the future.