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