personnel reform

Personnel ReformPersonnel Reform

Department of Personnel September 2002

http://hr.dop.wa.gov/hrreform

Contracting out

Collective bargaining

New human resource system

Will apply only to employees in bargaining units

Contracts effective 2005

Will apply to all employees not in bargaining units

Some provisions will apply to employees in bargaining units

Effective in 2004 & 2005

Provisions effective in 2005

Civil Service Reform (SHB 1268)

Th

ree

Key

Co

mp

on

ents

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Contracting Out Competitive contracting out expanded to

include services “traditionally and historically provided by state employees”

Employees have opportunity to offer alternatives, and to compete for the work

Activity is identifiedEmployees provide alternativesIf decision to contract out:

• Employees may form a business unit• Respond to bid as would a private sector

provider

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IFB/RFPExistence of a competitive market

Requires measurable standards for performance

Provision requiring entity to consider employment of state employees who may be displaced

Consideration of risk associated with failed performance by the contractor

Contracting Out (cont.)

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Cost proposals from Employee Business Units include:

Staff

Space

Equipment and materials

Other

Indirect costs are excluded unless directly attributable to the activity or function under consideration


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Training for employees to be provided by Department of Personnel

Rules to be adopted by Department of General Administration and subject to full scope collective bargaining

Provisions effective July 2005


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Collective Bargaining Will apply to all employees who are part of a

collective bargaining unit

Currently, approximately 55% of all employees or 38,000

Employees excluded from bargaining:

Washington Management Service Exempt and confidential employees Internal auditors Staff in DOP, OFM, and portions of AGO Judiciary and legislative employees

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Exempt employees will be covered by personnel rules adopted by the director of the Department of Personnel

Salary increases and benefits will be determined by Governor and Legislature same as today

Collective Bargaining (cont.)

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Mandatory subjects for bargaining: Wages and hours

Insurance benefits – only the dollar amount

Other terms and conditions of employment

Excluded from bargaining: Pensions

Inherent management policy including• Structure of an organization

• Use of technology

• Agency size or budget

Directing and supervising staff


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Optional (determined by OFM): Financial basis for layoff

Classification system; rules pertaining to exams, job referral criteria, appointments, affirmative action, delegation of authority


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Bargaining begins no later than July ’04

Reality is bargaining must begin sooner

Contracts are to be submitted to OFM in Oct ’04 to be included in the Governor’s budget request for ’05-’07

Contracts are approved up or down by the legislature and become effective July ’05

Contract period is for two years

Governor’s Office negotiates contracts for state agencies*


* Higher education institutions may choose to have Governor’s Office negotiate their contracts11

Office of Labor Relations in OFM New director – Gary Moore

12-15 staff comprised of researchers, analysts, and negotiators

Funded by state agencies with staff in bargaining units


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A master agreement with each union with >500 members will be negotiated (approx. 7 master agreements)

Washington Federation of State Employees–25,000 The Teamsters–4500 Washington Public Employees–2800 Local 17 Professional and Technical Engineers–2600 United Food and Commercial Workers–775 Local 1199 Service Employees–800 Remainder–coalition bargain

Each master agreement (contract) will apply to all agencies that have employees in BU’s represented by that union


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Unions Negotiations

Negotiations with State’s

Chief Negotiator

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Unions Negotiations Master Contracts


Chief Negotiator

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Unions Negotiations Master ContractsPotential application

within agencies


Chief Negotiator

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Civil Service Reform

New human resource (personnel) system applies to: All employees who are not in bargaining units Partially for employees in bargaining units

The new HR system will replace the present civil service system which has been in place for nearly 43 years

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New Human Resource System (cont.)

New structure, rules, and processes for: Job classification Compensation Recruitment, selection, referral, hiring Performance management Training and development Basis for RIF and re-employment from RIF Corrective and disciplinary action Other aspects of HR management

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July 02 Jan 03 July 03 Jan 04 July 04 Jan 05 July 05 Jan 06

New job classification

system designed

New classification & compensation system

in place

Adopt & begin implementation of new HR system

Collective bargaining begins no later than this date

Collective bargaining contracts in place

The Timeline

Contracting out provisions apply

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system designed




in place




HR/Customer research

IS Feasibility & funding

Develop new classification system

Design new compensation system

Design new rectmt & hiring system

Design all other new processesImplement new comp/class

Implement new hiring process

Implement all other new HR system

Training/guidelines for new HR system

Hire Chief Negotiator

Determine HRIS capability


Determine contracting out provisions

Contracting out training

Communications

The Real TimelineCommunications and feedback

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system designed




in place




HR/Customer research

IS Feasibility & funding

Develop new classification system

Design new compensation system

Design new rectmt & hiring system

Design all other new processesImplement new comp/class

Implement new hiring process

Implement all other new HR system

Training/guidelines for new HR system

Hire Chief Negotiator

Determine HRIS capability


Determine contracting out provisions

Contracting out training

Communications

The Real Timeline

Right now, we are here

Communications and feedback

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HRIS Feasibility StudyHRIS Feasibility Study

Impact of civil service reform and collective bargaining on central personnel/payroll system

Executive Steering Committee Eight cabinet directors

The study will look at the following options: Purchasing a commercial “off-the-shelf” system Extending the existing system Integrating a hybrid solution

• purchasing/building new components• major modifications of key existing system components

The study will give recommendations for: Best approach to implement the CSR/CB bill Long-term options for the system and costs

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HR System Research EffortsHR System Research Efforts

A team worked from June through August collecting information from:

all 50 states 24 counties 16 cities 18 private companies 7 universities the federal government 4 other countries dozens of reports, articles, books, and web sites

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Research FocusResearch Focus

The information gathering efforts were focused on these key human resource topics:

classification reform compensation practices recruitment and selection leave reduction-in-force (RIF) practices performance assessment collective bargaining

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Preliminary ResultsPreliminary Results

Some of the interesting findings from states include:

Several states have completed classification reform and now have only 2-300 broad job classes

Several states have moved away from automatic step increases to pay for performance

Several states use a combination of seniority and performance for layoff and re-hire

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Customer ResearchCustomer Research

Extensive surveying of state employees, managers, and human resource staff to determine needs and preferences

Approximately 4,200 employees responded - representing broad cross section of all agencies, job levels

216 managers 86 human resource staff

Focus groups and feedback forums 10 focus groups made up of agency managers and HR staff 44 information and feedback sessions scheduled throughout

the state

On-going feedback forum on web site

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Survey Results

Basis for salary increases

74% of employees felt salary increases should be based on a combination of performance and longevity.

Only 10% felt salary increases should be based solely on longevity.

81% of managers and 72% of HR staff felt it was important to factor in performance.

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Survey Results

Lump sum bonus

69% of employees felt there should be a provision to allow a lump sum bonus to recognize special accomplishments.

61% of managers and 56% of HR staff said this was important

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Survey Results

Recruitment & Selection

77% of employees were in favor of considering all qualified candidates, rather than the “Rule of 7”

84% of managers and 80% of HR staff felt the same way

73% of employees agreed that promotional preference should be set aside in favor of the best qualified

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Survey Results

Basis for determining lay-off

All three groups favored a combination of longevity and performance in determining RIF

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62% 67%

51%

6%

20%15%

30%

12%

34%

Employees Managers HR Staff

Combination

Performance Only

Seniority Only

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General design criteria for the state’s new HR system

Minimal number of rules

Ensures fair treatment for employees & managers

Easy to understand and simple to use

Fast and responsive to a variety of needs and situations

Open and flexible; provides multiple options

Adaptable to change; can be easily modified & improved

Automated to the degree possible

Focused on outcomes, rather than process

Next Steps

Analyze research findings and share results Confirm design criteria for new HR system Establish teams to develop new HR system On-going communications

Informational presentations Web site at hr.dop.wa.gov/hrreform Widely distributed employee updates, electronic

newsletters and briefs

Further input opportunities as components of new HR system are being developed

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http://hr.dop.wa.gov/hrreformhttp://hr.dop.wa.gov/hrreform

personnel reform

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