1. Selecting and Retaining the Next Generation State Government Worker NASC Annual Conference, March 18, 2016

2. The question: How do we more effectively hire - and retain - the next generation worker? 2

3. The panel JD Williams Former State Controller State of Idaho Dr. Kurt Steward Former CFO Dallas Fire-Rescue Clark Partridge State Comptroller State of Arizona 3

4. JD Williams Former State Controller State of Idaho The Risk of Emptying Cubicles 4

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8. State of Idaho Organizational Chart People of Idaho Office of the State Controller Division of Statewide Accounting Division of Statewide Payroll Division of Computer Services Elected by Majority Accountable to Citizens 8

9. The US Labor Force Generations in the Workforce Millennials are the single largest segment in the US, with over 75M individuals, and in 2015 overtook Generation X as the largest segment of the workforce. Silent Boomers Gen XMillennials Post-Mil 2% 1% 29% 34% Millennial = 19 to 34 yrs old Credit: Pew Research & US Bureau of Labor Statistics 9

10. The US Labor Force Millennials in the Gov’t Workforce Millennials are the single largest segment in the US, with over 75M individuals, and in 2015 overtook Generation X as the largest segment of the workforce. Silent Boomers Gen XMillennials Post-Mil 24% Credit: Deloitte University Press Millennial = 19 to 34 yrs old 10

11. What the [Millennials] Want 13% Mentor 10% $$$ 45% Training 27% Opportunity Credit: Deloitte Millennial Survey 11

12. The Millennials to Government – “Get with the Times!” Keep your website updated: Millennial start with the Web Keep them engaged Utilize social media: Facebook Twitter LinkedIn Instagram 12

13. And the Survey Says… Keep your website updated: Millennial start with the Web Keep us engaged Utilize social media: Facebook Twitter LinkedIn Instagram Does social media play an important role in how business is done? How often does your office use social media? Yes – 48%No – 52%None – 58% Daily – 23% Weekly – 6% Occasionally – 13% 13

14. Clark Partridge State Comptroller State of Arizona A View from the State of Arizona 14

15. At the State of Arizona: 25% of employees are eligible to retire in the next five years 15

16. And the Survey Says… 42% of NASC survey respondents are seeing the same or even higher numbers 16

17. What this means for Arizona ●# 1 long-term strategic risk and objective since 2007 ●New accounting system, but need people to utilize potential ●Vision of future state of financial processes - more efficient and effective - lean ●Workforce is mobile ●Need to attract and develop talent to accomplish - all generations, but ultimately millennials ●Succession planning, cross training, and collaboration increasingly critical 17

18. Dr. Kurt Steward Former CFO Dallas Fire-Rescue Using Technology to Address the Hiring Crisis 18

19. As the largest generation in the workforce, the facts are alarming 53% 58% 55% Hiring managers say it’s difficult to find and retain millennials. Millennials that expect to leave their jobs in 3 years or less. Hiring managers who prioritize hard skills over personality when hiring. Credit: 2015 Millennial Majority Study 19

20. Traditional Approach Position approved & budgeted Applicants considered w/preference s considered KSA tests administered (oral, written, physical, etc.) Applicants ranked based on test results Top 3 to 5 candidates interviewed …candidate then selected and hired 20

21. Beyond KSAs Knowledge Skills Abilities 21

22. Beyond KSAs Knowledge Skills Abilities FIT 22

23. Traditional Approach Disadvantages SLOW Process PAPER Based KSA Focused 23

24. “The old model of hiring based solely on a list of skill and qualifications is not only dying, but dead. If you hire beyond skills and hold out for certain character traits, you have actually future-proofed your organization.” -Jim Roddy Human Capital Institute 24

25. Behavior Matters Realistic High Energy Discipline Risk Taker Objective Rebellious Apathy Mature Flexible Pessimistic Ambition Analytical Cooperative Introverte d Competitive Conscientious Independent Subjective 25

26. Science + Big Data 26

27. A New Approach 12345 internal assessment of top performers use internal data to predict success candidate applies for position compare candidate to successful profile identify where candidates deviate …candidate then selected and hired 27

28. More Good News Based on Science Behaviors Change Very Little Over Time SUCCESSION PLANNING 28

29. And the Survey Says… Behaviors Change Very Little Over Time SUCCESSION PLANNING How do you evaluate candidates when considering succession planning? Performance KSAs Behaviors 71% 61% 10% 29

30. “It is time for a new generation of leaders to cope with the problems and opportunities – for there is a new world to be won.” - President John F. Kennedy 30

31. Questions? 31