Organizational Development for Knowledge Management at Water ...

Project Study # 12
Using contract employees to supplement and prepare retirements
Project Description: This program called Project Grant Program allows the utility to hire full-time
contract employees in order to supplement fluctuating knowledge and operational needs. This
initial program was established following a catastrophic flood which required the city to hire
temporary employees. The utility now uses the program for attrition planning with contract
employees receiving full benefits. They are on a one-year contract from January to December.
When a contract terminates, it can be renewed for another year. When the utility interviews a
potential new hire, the contract clearly states the hourly rate, the benefits are defined, and
employees are held to all internal policies. This program has allowed the water utility to recruit
from outside the city’s civil service system; which, in turn, then provides an in-house hiring pool
that has needed training programs to ensure current knowledge and direction. This program
has been in effect for three years and has been successful.
Size of Utility: 28.5 employees
Critical Success Factors: A critical success factor is to choose a good candidate that has some
experience. For example, one employee that was hired actually came with some treatment
certification and surface water experience, bringing needed knowledge into the organization.
While this person could have been hired externally, the city’s civil service system gives
preferential treatment to internal candidates, or those from other city departments, before hiring
an external candidate with related work experience or operator certification.
Cost: There is no additional cost to this approach other than that of hiring in the normal fashion.
In-house training is supplied to all new hires. Because the organization wants qualified people
to apply, it offers the same benefit package to contract employees and permanent employees,
i.e., the contract employee is hired at a salary equal to the entry level schedule, and they will
earn vacation and have the option of receiving insurance.
Benefits: The utility is able to recruit outside of the system for a very talented candidate and put
him or her into the utility’s system. For example, the utility had a lead operator leave and
already had an internal candidate in training as this employee’s assistant. This assistant was
able to easily move up into the lead operator position.
Compiled April 2008
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POC:
Hazel Sletten
City of Grand Forks Public Water Utility
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