Notes from STM Case Study

Société de Transport de Montréal (STM) - HR Function Analysis

Introduction

• The Société de transport de Montréal (STM) is Montreal’s transit corporation.
• K7 Consulte Inc. is tasked with measuring the activities and results of STM’s Staffing and Workforce Planning Division.
• The goal is to develop indicators to follow the Division’s action plan and ensure objectives are met.
• STM was named “Outstanding Public Transit System” in North America in 2010.
• It is the 14th largest company in Quebec.
• In 2011, STM ridership exceeded 400 million trips, equivalent to 1.45 million trips each weekday, breaking a 1947 record.
• STM accounts for 70% of all public transit trips in Quebec.

High-Level Meetings: Staffing and Workforce Planning Division

Management Committee Meeting - December 9, 2011

• Attendees: Gilles Bussières (CEO) and Clémence Beauchemin (Head of Staffing and Workforce Planning Division).
• Strategic Objective: Bolster service offering by 32%.
• Ridership Target: Surpass 405 million rides in 2011, breaking the 1947 record of 398 million trips.
• Bussières highlights the pressure on staffing due to increased bus fleet and new MPM-10 metro cars.
• Clémence states the team can meet challenges and reminds Bussières of a 21% increase in service offering in five years, leading to a workforce increase.
• Over 5,000 new employees hired, bringing the total workforce to 9,274 employees, an increase of 17% in five years.
• 245,100 hours dedicated to training these employees via the Training Division.
• Turnaround Time: Clémence explains that staffing turnaround time varies across 500 different jobs.
• Focus on determining turnaround time for hiring a bus driver due to high proportion of bus drivers (4,088) at STM.
• Automated System: “Appendix R” implemented to assign new and vacant positions according to the collective agreement.
• Effectiveness of Appendix R: Unconfirmed official data on its effectiveness.

HR Management Committee Meeting - December 15, 2011

• Attendees: Clémence Beauchemin, Christian Eiffel (Section Head, Selection and Management Information), and Stéphanie Lallier (Section Head, Staffing and Workforce Planning).
• Emphasis on the strategic role of staffing by senior management.
• Amount invested in hiring each year would be equivalent to purchasing 2,000 buses (nearly $1.5 billion).
• Challenge to supply manpower for billions of dollars’ worth of projects in the 2020 Strategic Plan.
• Staffing turnaround times for bus drivers project is complete, but it was a long process.
• Appendix R: Adaptation period, initial problems ironed out.
• Need for external help to establish performance indicators.

History of the STM

• September 24, 2011, marked the 150th anniversary of Montreal’s first public transit company, founded in 1861.
• 1861: Montreal City Passenger Railway Company (established by Montreal and Champlain Railroad Company).
• 1886: Became the Montreal Street Railway.
• 1911: Montreal Tramways Company secured a monopoly.
• 1951: Municipalized under Mayor Camillien Houde, creating the Montreal Transportation Commission (MTC).
• 1970: MTC replaced by Commission de transport de la Communauté urbaine de Montréal (CTCUM).
• 1985: CTCUM became Société de transport de la Communauté urbaine de Montréal (STCUM).
• 2002: Simplified name to Société de transport de Montréal (STM).
• 2010: Launched new corporate visual identity.

New Corporate Visual Identity (2010)

• Logo symbolizes moving forward, closer customer relations, and leadership in fighting climate change.
• Blue represents the company; yellow, the population; green line indicates shared commitment to the environment.
• Chevrons, quotation marks, or arrows suggest dialogue, openness, and the direction STM is taking.

STM as a Key Public Corporation in Montreal

Internal Environment

• Budget: Over $1.2 billion.
• Major Projects: See 2020 strategic plan.
• Employees: 9,274 in 2011.
• Employee Turnover: Very low voluntary turnover rate.
• Retirements: Mass retirements.
• Positions: Over 500 different positions divided into 10 job families.
• Unionization: High rate (nearly 90% of the workforce).
• Hiring Processes: Several hiring processes.
• Employee Turnover Management: Computerized for maintenance staff (Appendix R).

External Environment

Political and Legal

• Quebec Public Transit Policy (QPTP).
• City of Montreal’s Transportation Plan and the Metropolitan Land Use and Development Plan.

Economic

• Increase in fuel price.
• Rising operating costs of transit companies.
• New clusters of workplaces in peripheral areas.

Social

• Montreal Metropolitan Community (MMC) comprises 82 municipalities with 3.7 million inhabitants.
• Population Forecast: Expected to reach 4.3 million inhabitants by 2031 with 320,000 new households.
• Aging population.

Technological

• Diversification and electrification of transport.

Environmental

• Target: Reduce greenhouse gas emissions below 1990 levels (Kyoto Protocol).
• Urgent need to improve Quebec’s environmental performance.

Mission and Values

• Key driver of economic development in Montréal.
• Contributes to sustainable development and overall quality of life.
• Operates integrated métro and bus system and paratransit network.

Values

• Teamwork
• Thoroughness
• Respect
• Empowerment
• Transparency

Strategic Plan 2020

• Extension of the STM’s 2007-2011 business plan.
• Developed in accordance with the Act Respecting Public Transit Authorities.
• Filed with the City of Montreal, MMC, and Quebec Ministère des Transports.
• Objectives: Ensuring economic development of Montreal and Quebec and reducing greenhouse gas (GHG) emissions.
• Presents a 10-year perspective on public transit development.

Vision

• Operate North America’s top public transit system.
• Contribute to Montréal’s renown as a prosperous and environmentally friendly hub.
• Enhanced customer experience in frequency, speed, punctuality, and comfort.
• Growth of over 32% in overall service and diversification/electrification of transit modes.
• Increase ridership by 40% to reach 540 million trips in 2020.

Priorities

• Priority 1: Expand services (metro, bus, tram, paratransit).
• Priority 2: Improve customer experience and marketing efforts.
• Priority 3: Attract, develop, and mobilize talent.
• Priority 4: Optimize investment management.
• Priority 5: Further improve performance (revenue, expenditure control).
• Priority 6: Sustainable development.

Staffing and Workforce Planning Division

• Team of nearly fifty unionized and non-unionized professionals.
• Mission: Develop a strategic recruitment plan, attract the best resources, and foster a collaborative work environment.

Vision

• Developing a reputation for strategic, concrete, adapted, and measurable HR solutions.
• Contributing to the implementation of an interactive and participative management style.
• Helping to improve employee performance.

Priorities

• Priority 1: Attract best candidates to the STM.
• Priority 2: Optimize HR performance.

Staffing Process

• Varies significantly by position; three main processes:
  • Bus drivers
  • White-collar employees
  • Maintenance personnel
• Maintenance staffing detailed due to Bussières’ interest; uses “Appendix R” automated processing system and comprises over 2,195 employees.
• Three main components: pre-staffing, staffing, and post-staffing

Pre-Staffing

• Steps for preparing and receiving personnel requisitions.
• Ensuring managers provide all necessary information to avoid delays.

Staffing

• Impacted by the collective agreement governing maintenance employees (Appendix 3).
• Internal staffing process
  • Priority to employees already performing similar work. A vacant position in the classification of plumber is first offered to other plumbers
  • Second priority to employees not performing similar work who possess the necessary qualifications (outside of the classification).
  • External staffing process only used if no internal employee is selected.

Internal staffing process within the classification

• Creation of a publication for each personnel request received.
  *Preliminary step if creating new jobs
• Preparation for processing in the Appendix R system.
• Processing and nomination of employees via the STM’s Intranet or email.

Internal staffing process outside the classification

• Advisors send a table listing positions to be filled to managers.
• Managers submit a new personnel requisition which is immediately converted into a posting published simultaneously on the Intranet and on the bulletin boards.
• Pre-selection process based on job requirements and applicable exams.
• Nomination and forwarding to managers of the notices of vacancies referred to external hiring.

External staffing process

• Similar to filling vacancies from outside the classification.
• Staffing personnel posts positions.
• Pre-select candidates (advisor).
• Administer exams (test administrator).
• Conduct interviews (advisor, recruiter and interviewer).
• Check references (technician and agent).
• Candidates referred to medical department.
• Advisors proceed with offer of employment.

Post-Staffing

• Important for adequate preparation of new employees.
• Staffing personnel prepare hiring kits and invite new employees to an orientation presentation.
• Managers proceed with integration of new hires.

Appendices

• Appendix 1: Simplified Organizational Chart: Staffing and Workforce Planning Division
• Appendix 2: Number of Employees Hired from 2001 to 2010.
• Appendix 3: Excerpts from the Collective Agreement Governing Maintenance Employees
• Appendix 4: Staffing Turnaround Time for Bus Driver Positions
• Appendix 5: Workforce Distribution
• Appendix 6: Staffing Process for Maintenance Personnel