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Personnel Reform

Personnel Reform. http://hr.dop.wa.gov/hrreform. Department of Personnel September 2002. Three Key Components. Civil Service Reform (SHB 1268). Contracting out. Provisions effective in 2005. Collective bargaining. Will apply only to employees in bargaining units

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Personnel Reform

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  1. Personnel Reform http://hr.dop.wa.gov/hrreform Department of Personnel September 2002

  2. Three Key Components Civil Service Reform (SHB 1268) Contracting out Provisions effective in 2005 Collective bargaining Will apply only to employees in bargaining units Contracts effective 2005 New human resource system Will apply to all employees not in bargaining units Some provisions will apply to employees in bargaining units Effective in 2004 & 2005 2

  3. 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 identified • Employees provide alternatives • If decision to contract out: • Employees may form a business unit • Respond to bid as would a private sector provider 3

  4. Contracting Out (cont.) • IFB/RFP • Existence 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 4

  5. Contracting Out (cont.) • 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 5

  6. Contracting Out (cont.) • 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 6

  7. 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 7

  8. Collective Bargaining (cont.) • 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 8

  9. Collective Bargaining (cont.) • 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 9

  10. Collective Bargaining (cont.) • Optional(determined by OFM): • Financial basis for layoff • Classification system; rules pertaining to exams, job referral criteria, appointments, affirmative action, delegation of authority 10

  11. Collective Bargaining (cont.) • 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 contracts 11

  12. Collective Bargaining (cont.) • 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 12

  13. Collective Bargaining (cont.) • 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 13

  14. Unions Negotiations Negotiations with State’s Chief Negotiator 14

  15. Unions Negotiations Master Contracts Negotiations with State’s Chief Negotiator 14

  16. Potential application within agencies Unions Negotiations Master Contracts Negotiations with State’s Chief Negotiator 14

  17. 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 15

  18. 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 16

  19. The Timeline Adopt & begin implementation of new HR system New classification & compensation system in place New job classification system designed July 02 Jan 03 July 03 Jan 04 July 04 Jan 05 July 05 Jan 06 Collective bargaining begins no later than this date Collective bargaining contracts in place Contracting out provisions apply 17

  20. The Real Timeline Communications and feedback Training/guidelines for new HR system Implement all other new HR system Adopt & begin implementation of new HR system Implement new hiring process Implement new comp/class Design all other new processes Design new rectmt & hiring system Design new compensation system New classification & compensation system in place New job classification system designed Develop new classification system IS Feasibility & funding HR/Customer research July 02 Jan 03 July 03 Jan 04 July 04 Jan 05 July 05 Jan 06 Hire Chief Negotiator Determine HRIS capability Collective bargaining Collective bargaining begins no later than this date Collective bargaining contracts in place Determine contracting out provisions Contracting out training Contracting out provisions apply Communications 18

  21. The Real Timeline Communications and feedback Training/guidelines for new HR system Implement all other new HR system Adopt & begin implementation of new HR system Implement new hiring process Implement new comp/class Design all other new processes Right now, we are here Design new rectmt & hiring system Design new compensation system New classification & compensation system in place New job classification system designed Develop new classification system IS Feasibility & funding HR/Customer research July 02 Jan 03 July 03 Jan 04 July 04 Jan 05 July 05 Jan 06 Hire Chief Negotiator Determine HRIS capability Collective bargaining Collective bargaining begins no later than this date Collective bargaining contracts in place Determine contracting out provisions Contracting out training Contracting out provisions apply Communications 18

  22. HRIS 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 19

  23. HR 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 20

  24. Research 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 21

  25. Preliminary 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 22

  26. Customer 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 23

  27. 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. 24

  28. 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 25

  29. 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 26

  30. Survey Results Basis for determining lay-off • All three groups favored a combination of longevity and performance in determining RIF 27

  31. 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 28

  32. 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 29

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

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