Human Resource Management Report

1. Plan & Align Workforce Hire Workforce Deploy Workforce Reinforce Performance Develop Workforce Human ResourceManagement Report October 2007

2. Washington State Health Care Authority Plan & Align Workforce Articulation of managers’ HRM accountabilities. HR policies. Workforce planning. Job classes and salaries assigned. Managers understand HRM accountabilities. Jobs, staffing levels and competencies aligned with agency priorities. Foundation is in place to build and sustain a productive, high performing workforce. HireWorkforce Qualified candidate pools, interviews and reference checks. Job offers. Appointments and performance monitoring. Best candidate hired and reviewed during appointment period. Successful performers retained. The right people are in the right job at the right time. Employees are committed to the work they do and the goals of the organization. Productive, successful employees are retained. State has workforce depth and breadth needed for present and future success. DeployWorkforce Work assignments and requirements defined. Positive workplace environment created. Coaching, feedback, corrections. Workplace is safe, gives capacity to perform, and fosters productive relations. Staff know job rqmts, how they’re doing and are supported. Time & talent are used effectively. Employees are motivated & productive. Develop Workforce Individual development plans. Time/ resources for training. Continuous learning environment created. Learning environment created. Employees are engaged in develop-ment opportunities and seek to learn. Employees have competencies for present job and career advancement. Agencies are better enabled to successfully carry out their mission. The citizens receive efficient government services. Reinforce Performance Clear performance expectations linked to original goals and measures. Regular performance appraisals. Recognition. Discipline. Employees know how performance contributes to success of orgn. Strong performance rewarded; poor performance eliminated. Successful performance is differentiated and strengthened. Employees held accountable. Managers’ Logic Model for Workforce Management Outputs Initial Outcomes Intermediate Outcomes Ultimate Outcomes

3. Percent supervisors with current performance expectations for workforce management Management profile Workforce planning measure (TBD) Percent employees with current position/competencies descriptions Time-to-fill funded vacancies Candidate quality Hiring balance (proportion of appointment types) Separation during review period Percent employees with current performance expectations Employee survey ratings on “productive workplace” questions Overtime usage Sick leave usage Non-disciplinary grievances/appeals filed and disposition (outcomes) Worker safety Percent employees with current individual development plans Employee survey ratings on “learning and development” questions Competency gap analysis (TBD) Percent employees with current performance evaluations Employee survey ratings on “performance and accountability” questions Disciplinary actions and reasons, disciplinary grievances/appeals filed and disposition (outcomes) Reward and recognition practices (TBD) Washington State Health Care Authority Plan & Align Workforce HireWorkforce DeployWorkforce Develop Workforce Reinforce Performance Standard Performance Measures Ultimate Outcomes • Employee survey ratings on “commitment” questions • Turnover rates and types • Turnover rate: key occupational categories • Workforce diversity profile • Retention measure (TBD)

4. Plan & Align Workforce Outcomes: Managers understand workforce management accountabilities. Jobs and competencies are defined and aligned with business priorities. Overall foundation is in place to build and sustain a high performing workforce. Performance Measures: Percent of supervisors with current performance expectations for workforce management Management profile Workforce Planning measure (TBD) Percentage of employees with current position/ competency descriptions Washington State Health Care Authority Workforce Management Expectations • Analysis: • An audit of evaluations for FY07 reveals 100 percent included position linkage with organizational mission and strategic plan. (Need to verify) • 2006 Employee Survey results exceeded the statewide average on all performance accountability ratings. This is an indicator that employees know their work contributes to the goals of the agency, are provided feedback and recognition and are held accountable for performance. Action Steps: • By Spring 2008, develop a “Supervisor’s Academy”. • Standardized core competencies were developed for supervisors and included as part of FY07 performance evaluation cycle. • Continue to hold extended leadership team trainings at least semi-annually. These provide opportunities for supervisor/manager development, especially in the area of performance management. • All supervisors are reminded by HR via e-mail to set performance expectations as part of new employee on-boarding process. Percent supervisors with current performance expectations for workforce management = 100% Total # of supervisors = 50 • During this biennium, there has been an emphasis on developing performance management skills for supervisors. Training topics have included: • Writing Effective Performance & Development Plans • Performance Management Confirmation Overview • Crucial Conversations • Project Management • Setting Meaningful Performance Measures and Managing Data • Lawful and Effective Hiring Practices • Effective Investigations in a Just Cause World • Preventing Discrimination, Harassment and Managing Accommodations Data as of 9/30/2007 Source: SuccessFactors, Performance & Development Plans, 2006 Employee Survey, training profiles

5. Plan & Align Workforce Outcomes: Managers understand workforce management accountabilities. Jobs and competencies are defined and aligned with business priorities. Overall foundation is in place to build and sustain a high performing workforce. Performance Measures: Percent supervisors with current performance expectations for workforce management Management profile Workforce Planning measure (TBD) Percent employees with current position/ competency descriptions Washington State Health Care Authority Management Profile WMS Employees Headcount = 44 Percent of agency workforce that are WMS = 15.8% Manager* Headcount = 30 Percent of agency workforce that are managers* = 10.8% * In positions coded as “Manager” (includes EMS, WMS, and GS) Management 20 Consultant 18 Policy 6 • Analysis: • Nature of business equates to higher percent of policy and consultant work within WMS ranks. • Our percent of WMS workforce went down slightly from 15.9 to 15.8 percent. • Our overall number of WMS positions remained at 44. We did meet target WMS position reductions of two WMS positions by June 30, 2007, however, we also received additional WMS positions through the legislative process for the 07-09 biennium. Action Steps: • We will continue to monitor our use of consultants within WMS. Data as of 6/30/2007 Source: BW Portal

6. Plan & Align Workforce Outcomes: Managers understand workforce management accountabilities. Jobs and competencies are defined and aligned with business priorities. Overall foundation is in place to build and sustain a high performing workforce. Performance Measures: Percent supervisors with current performance expectations for workforce management Management profile Workforce Planning measure (TBD) Percent employees with current position/ competency descriptions Washington State Health Care Authority Current Position/Competency Descriptions Percent employees with current position/competency descriptions =40% *Based on total # of employees with current position/competency descriptions* = 100 Total # of employees* = 252 *Applies to employees in permanent positions, both WMS & GS (not exempt) • Analysis: • Job analysis is conducted for all WMS and GS positions prior to recruitment. • As of September 2007, 63 percent of all HCA positions have a completed job analysis, which is an increase from 57 percent reported for the period ending December 2006. • The percent of employees with current position/competency descriptions went down because we are now using different measurements. Current period measurements were derived from an audit of the occupied positions who have updated position descriptions using the new forms that have a more detailed explanation of competencies. • Additionally, our focus has been on completing job analyses prior to recruitment, versus requiring position descriptions be updated on the new forms. Action Steps: • Position Description Forms (PDFs) will be updated, if necessary, as part of the FY08 annual evaluation cycle. • Job analyses on all HCA positions will be completed prior to recruitment. Data as of 9/30/2007 Source: Position File, Logs

7. Hire Workforce Outcomes: Best candidates are hired and reviewed during appointment period. The right people are in the right job at the right time. Performance Measures: Time-to-fill vacancies Candidate quality Hiring Balance (proportion of appointment types) Separation during review period Washington State Health Care Authority Time-to-Fill / Candidate Quality • Analysis: • Average number of days to fill varies depending upon type of opening and location. • Seattle management openings generally take longer than average 41 days. • All HCA supervisors trained in Lawful and Effective Hiring Practices. • Thorough job analysis is conducted prior to recruitment to ensure the job duties and competencies are fully and accurately described. Action Steps: • Staffing and Hiring Project Team make recommendations to standardize and streamline recruitment processes. Revised Job Analysis and Position Description forms and improved Job Announcements have been implemented. Sub-committees underway to implement additional recommendations. • HR Office received approval for an additional position to focus on recruitment. Anticipate hire and redistribution of work within the Human Resource Office by December 31, 2007. • The office support position was increased from half-time to full-time in April 1, 2007. • On April 1, 2007, began using e-recruitcandidate quality survey through Survey Monkey. Time-to-fill Funded Vacancies Average number of days to fill*:41 Number of vacancies filled: 115 *Equals # of days from creation of the requisition to job offer acceptance Time Period: July 2006 – June 2007 • Candidate Quality • Of the candidates interviewed for vacancies, how many had the competencies (knowledge, skills and abilities) needed to perform the job? • We surveyed 19 managers and received responses from 8 indicating 81 percent. • Of the candidates interviewed, were hiring managers able to hire the best candidate for the job? • Hiring managers indicating “yes”: • Number = 8 Percentage = 100 • Hiring managers indicating “no”: • Number = 0 Percentage = 0 • Time Period: Jan – June 2007 Data as of June 2007 Source: Recruitment Log and Candidate Quality Survey using Survey Monkey

8. Hire Workforce Outcomes: Best candidates are hired and reviewed during appointment period. The right people are in the right job at the right time. Performance Measures: Time-to-fill vacancies Candidate quality Hiring Balance (proportion of appointment types) Separation during review period Washington State Health Care Authority Hiring Balance / Separations During Review Period Analysis: • New hires (external) due in large part to the large number of entry-level positions filled and/or specialized/advanced skill set required for more technical positions. • Supervisors encouraged to use the probation and trial service periods to evaluate new employee, which may include separation if necessary. • Separations in FY07 period due to unprofessional conduct, absenteeism and/or inability to meet production standards. Action Steps: • Continue to evaluate reasons for probation and trial service separations to assess whether they involve issues that could have been determined at the recruitment/hiring phase. Total number of appointments = 82* Time period = July 2006 through June 2007 Includes appointments to permanent vacant positions only; excludes reassignments “Other” = Demotions, re-employment, reversion and RIF appointments • Separation During Review Period • Probationary separations - Voluntary 2 • Probationary separations - Involuntary 3 • Total Probationary Separations 5 • Trial Service separations - Voluntary 2 • Trial Service separations - Involuntary 0 • Total Trial Service Separations 2 • Total Separations During Review Period 7 • Time period = July 2006 through June 2007 Data as of June 30, 2007 Source: BW Portal and HCA log

9. Deploy Workforce Outcomes: Staff know job expectations, how they’re doing and are supported. Workplace is safe, gives capacity to perform, and fosters productive relations. Employee time and talent is used effectively. Employees are motivated. Performance Measures: Percent employees with current performance expectations Employee survey ratings on “productive workplace” questions Overtime usage Sick leave usage Non-disciplinary grievances/appeals filed and disposition (outcomes) Worker safety Washington State Health Care Authority Current Performance Expectations Percent of employees with current performance expectations = 100%* Total # of employees* = 264 * Applies to employees in permanent positions, both WMS & GS • Analysis: • HCA converted from evaluations due on employee anniversary date to one annual due date for all employees due evaluation in FY 06. • HCA experienced an increase of 51 percent in on-time completion of evaluations between 2005 and 2006 for a 97 percent completion rate. This increase was largely attributable to executive leaderships’ commitment and expectation that evaluations be completed. • HCA reached 100 percent completion rate for the close of FY 07. This was attributable to continued leadership commitment, implementation of SuccessFactors, and one annual cycle. Action Steps: • Refresher training on completing evaluations including the use of SuccessFactors was provided in June and July of 2007. • HCA implemented an on-line evaluation tool “SuccessFactors” for the FY08 cycle. • This will provide for efficient tracking of evaluations as they move through the various stages of approval. • Will clearly align employee expectations with HCA strategic goals. • Target for FY08 evaluations is 100 percent. This was communicated to all staff just prior to the annual cycle (June, 2007). Data as of 9/30/07 Source: SuccessFactors

10. Deploy Workforce Outcomes: Staff know job expectations, how they’re doing and are supported. Workplace is safe, gives capacity to perform, and fosters productive relations. Employee time and talent is used effectively. Employees are motivated. PerformanceMeasures: Percent employees with current performance expectations Employee survey ratings on “productive workplace” questions Overtime usage Sick leave usage Non-disciplinary grievances/appeals filed and disposition (outcomes) Safety and Workers Compensation (TBD) Washington State Health Care Authority • Never • Seldom • Occasionally • Usually • Always Employee Survey “Productive Workplace” Ratings Avg. Q4. I know what is expected of me at work. Q1. I have opportunity to give input on decisions affecting my work. Q2. I receive the information I need to do my job effectively. Q6. I have the tools and resources I need to do my job effectively. Q7. My supervisor treats me with dignity and respect. Q8. My supervisor gives me ongoing feedback that helps me improve my performance. Q9. I receive recognition for a job well done. 4.3 3.6 3.9 3.9 4.3 3.8 3.4 Overall average score for Productive Workplace Ratings: 3.9 • Analysis: • 86 percent of employees participated in the Employee Survey (compared to state participation of approximately 58 percent). • Comparison to 2005 survey shows slight improvement in employees knowing work expectations and feeling treated with dignity and respect. • 86 percent of respondents know what is expected of them at work. • 85 percent agree they are treated with dignity and respect by their supervisor. • HCA ratings meet or exceed statewide average in all but one category. Data was provided by DOP as of 4/2006 Source: Statewide Employee Survey results

11. Deploy Workforce Outcomes: Staff know job expectations, how they’re doing and are supported. Workplace is safe, gives capacity to perform, and fosters productive relations. Employee time and talent is used effectively. Employees are motivated. Performance Measures: Percent employees with current performance expectations Employee survey ratings on “productive workplace” questions Overtime usage Sick leave usage Non-disciplinary grievances/appeals filed and disposition (outcomes) Worker safety Washington State Health Care Authority Overtime Usage Overall agency avg. overtime usage – per capita, per month: 2.15** *Statewide overtime values do not include DNR **Overall agency avg. overtime usage – per capita, per month = sum of monthly OT averages divided by number of months • Analysis: • Approximately 53 percent of positions are overtime eligible. • Overtime is voluntary. • Approximately 97 percent of overtime occurred within the Basic Health Program due to delay in filling vacancies, increased enrollment targets and a backlog of recertification actions. • As anticipated, the need for overtime significantly reduced by April 2007 resulting in overall agency monthly per capita use of 2.15 hours, compared to the statewide average of 3.29 hours. Action Steps: The Basic Health Program will continue to: • Require employees meet specified production standards in order to e eligible for overtime; this ensures the optimum amount of work is completed during an overtime shift. • Fill vacancies more quickly and plan for attrition. • Fine-tune the new employee training program. Overall agency average employees receiving overtime per month: 9%** *Statewide overtime values do not include DNR **Overall agency avgas employees receiving overtime per month = sum of monthly OT percentages divided by number of months Data as of 6/30/2007 Source: BW Portal

12. Deploy Workforce Outcomes: Staff know job expectations, how they’re doing and are supported. Workplace is safe, gives capacity to perform, and fosters productive relations. Employee time and talent is used effectively. Employees are motivated. Performance Measures: Percent employees with current performance expectations Employee survey ratings on “productive workplace” questions Overtime usage Sick leave usage Non-disciplinary grievances/appeals filed and disposition (outcomes) Worker safety Washington State Health Care Authority Sick Leave Usage • Analysis: • For FY07 HCA sick leave remained at 6.3 hrs per capita, which was slightly lower than the statewide per capita average. • October increases from approximately five percent of the workforce were driven by serious health condition(s), bereavement and injury. Removing the five percent = SL use falls well below the statewide per capita average. Action Steps: • HCA began automated tracking of planned vs. unplanned leave in April 2007. Roll-out included strong message about appropriate use of sick leave and “must be present to win”. A sub-group is forming to address improving accuracy of reporting. • Overall leave reporting part of internal GMAP: goal to maintain all leave to 12 percent (or less) of total work time available. Sick leave target to meet or beat statewide average. • Wellness function was added to safety committee to promote healthy environment and behaviors within HCA. • Continue working 1:1 with supervisors to address perceived sick leave abuse problems. Sick Leave Hrs Used / Earned (per capita) Sick Leave Hrs Used / Earned (those who took SL) * Statewide data does not include DOL, DOR, L&I, and LCB Source: DOP Zip file Sick Leave time period = July 2006 through June 2007

13. Deploy Workforce Outcomes: Staff know job expectations, how they’re doing and are supported. Workplace is safe, gives capacity to perform, and fosters productive relations. Employee time and talent is used effectively. Employees are motivated. Performance Measures: Percent employees with current performance expectations Employee survey ratings on “productive workplace” questions Overtime usage Sick leave usage Non-disciplinary grievances/appeals filed and disposition (outcomes) Worker safety Washington State Health Care Authority Non-Disciplinary Grievances (Represented Employees) Total Non-Disciplinary Grievances = 0 • Analysis: • HCA was non-represented until June 8, 2007, when the Washington Federation of State Employees began coverage of one bargaining unit. Action Steps: • N/A

14. Deploy Workforce Outcomes: Staff know job expectations, how they’re doing and are supported. Workplace is safe, gives capacity to perform, and fosters productive relations. Employee time and talent is used effectively. Employees are motivated. Performance Measures: Percent employees with current performance expectations Employee survey ratings on “productive workplace” questions Overtime usage Sick leave usage Non-disciplinary grievances/appeals filed and disposition (outcomes) Worker safety Washington State Health Care Authority Non-Disciplinary Appeals Filings with Personnel Resources Board Time Period = 07/01/2006 – 06/30/2007 0 Job classification 0 Other exceptions to Director Review 0 Layoff 0 Disability separation 0 Non-disciplinary separation 0 Total filings Non-Disciplinary appeals only are shown above. Filings for DOP Director’s Review Time Period = 07/01/2006 – 06/30/2007 0 Job classification 0 Rule violation 0 Name removal from register 0 Rejection of job application 0 Remedial action 0 Total filings Personnel Resource Board Outcomes N/A N/A Source: Dept of Personnel

15. Deploy Workforce Outcomes: Staff know job expectations, how they’re doing and are supported. Workplace is safe, gives capacity to perform, and fosters productive relations. Employee time and talent is used effectively. Employees are motivated. Performance Measures: Percent employees with current performance expectations Employee survey ratings on 'productive workplace' questions Overtime usage Sick leave usage Non-disciplinary grievances/appeals filed and disposition outcomes Worker Safety Washington State Health Care Authority Worker Safety • Analysis: Majority of claims were due to either lifting or slips, trips and falls. Claims resulting in time loss are taking too long to close. While repetitive motion claims have shared a large majority of the claims, there has been a steady decrease in this area. • Action Plan: • Expansion of safe lifting procedures and for all identified positions as well as continuing to increase awareness on stairwell safety. • Claims management program is being moved back to Human Resources where the Return to Work program currently resides. • Continue with our effective ergonomics program that since its implementation has coincided with a decline in the number of claims. Allowed Annual Claims Rate*^: Agency vs. All HR Management Report (HRMR) agencies *Annual claims rate is # claims / 100 FTE 1 FTE = 2000 hours ^Due to natural lag in claim filing, rates are expected to increase significantly over time Injuries by Occupational Injury and Illness Classification (OIICS) event: For fiscal period 2002Q3 through 2007Q2 (categories under 3% or not adequately coded are grouped into 'misc.') Source: Labor & Industries, Research and Data Services (data as of 09/03/2007 – shouldn’t this be 6/30/07??)

16. Develop Workforce Outcomes: A learning environment is created. Employees are engaged in professional development and seek to learn. Employees have competencies needed for present job and future advancement. Performance Measures: Percent employees with current individual development plans Employee survey ratings on “learning & development” questions Competency gap analysis (TBD) Washington State Health Care Authority Individual Development Plans Percent of employees with current individual development plans = 100% Action Steps: • Continue to provide opportunities for employees to work on special project teams – goal to have four to six teams underway at any given point. • Brown Bag learning sessions commenced in October 2006. Topics vary but generally focus on personal growth and development (monthly). • Implementation of new evaluation system in July – associates learning activities with specific competencies for current or future job growth. Total # of employees with current IDPs* = 249 Total # of employees* =249 *Applies to employees in permanent positions, both WMS & GS Employee Survey “Learning & Development” Ratings Q5. I have opportunities at work to learn and grow. Q8. My supervisor gives me ongoing feedback that helps me improve my performance. Avg. 3.5 3.8 Overall average score for Learning and Development Ratings: 3.6 Data as of 9/30/07 Source: Evaluation Tracking System; Statewide Employee Survey results

17. Reinforce Performance Outcomes: Employees know how their performance contributes to the goals of the organization. Strong performance is rewarded; poor performance is eliminated. Successful performance is differentiated and strengthened. Employees are held accountable. Performance Measures: Percent employees with current performance evaluations Employee survey ratings on “performance and accountability” questions Disciplinary actions and reasons, disciplinary grievances/appeals filed and disposition (outcomes) Reward and recognition practices (TBD) Washington State Health Care Authority Current Performance Evaluations Percent employees with current performance evaluations = 100% Total # of employees with current performance evaluations* = 249 Total # of employees* = 249 * Applies to employees in permanent positions, both WMS & GS • Analysis: • HCA transitioned to one annual due date for evaluations in 2006. • 100 percent completion goal was set for 9/30/07. • HCA improved its completion rate from 46 percent in 2005, to 97 percent in 2006 and 100 percent in 2007. • High completion rate is primarily attributable to commitment from executive leadership. The expectation for on-time evaluations was communicated to all supervisors and reinforced by HR providing periodic status reports by program. Action Steps: • Refresher training on completing evaluations including the use of SuccessFactors was provided in June and July of 2007. Data as of 9/30/07 Source: Evaluation Tracking System

18. Reinforce Performance Outcomes: Employees know how their performance contributes to the goals of the organization. Strong performance is rewarded; poor performance is eliminated. Successful performance is differentiated and strengthened. Employees are held accountable. Performance Measures: Percent employees with current performance evaluations Employee survey ratings on “performance and accountability” questions Disciplinary actions and reasons, disciplinary grievances/appeals filed and disposition (outcomes) Reward and recognition practices (TBD) Washington State Health Care Authority • Never • Seldom • Occasionally • Usually • Always Employee Survey “Performance and Accountability” Ratings Avg. • Analysis: • HCA scores were equal to or higher than the 2006 statewide survey results. • HCA employee participation rate: 86 percent. Action Steps: • Refresher training for supervisors in June 2007 focused on establishing SMART performance goals which align to HCA’s strategic goals. • Continue to hold recognition celebrations to mark milestones and completion of projects or major goals. • Clear communication set prior to and during next evaluation cycle – 100 percent completion rate expected. Automated dashboard will facilitate tracking. Q3. I know how my work contributes to the goals of my agency. Q10. My performance evaluation provides me with meaningful information about my performance. Q11. My supervisor holds me and my co-workers accountable for performance. Q9. I receive recognition for a job well done. 4.2 3.4 4.3 3.4 Overall average score for “Performance and Accountability” ratings: 3.8 Data as of 4/2006 Source: Statewide Employee Survey results

19. Reinforce Performance Outcomes: Employees know how their performance contributes to the goals of the organization. Strong performance is rewarded; poor performance is eliminated. Successful performance is differentiated and strengthened. Employees are held accountable. Performance Measures: Percent employees with current performance evaluations Employee survey ratings on “performance and accountability” questions Disciplinary actions and reasons, disciplinary grievances/appeals filed and disposition (outcomes) Reward and recognition practices (TBD) Washington State Health Care Authority Disciplinary Action Taken Time period = 07/06 through 06/07 Formal Disciplinary Actions • Analysis: • Data does not include probationary or trial service separations. • During the period 07/01/06 through 06/30/07, the HCA had one resignation in lieu of dismissal, but no other disciplinary actions. Action Steps: • HR will continue to monitor this area to look for trends and areas of concern. * One resignation in lieu of dismissal. • Issues Leading to Disciplinary Action • N/A Data as of 6/30/07 Source: HCA Employee Action Log

20. Reinforce Performance Outcomes: Employees know how their performance contributes to the goals of the organization. Strong performance is rewarded; poor performance is eliminated. Successful performance is differentiated and strengthened. Employees are held accountable. Performance Measures: Percent employees with current performance evaluations Employee survey ratings on “performance and accountability” questions Disciplinary actions and reasons, disciplinary grievances/appeals filed and disposition (outcomes) Reward and recognition practices (TBD) Washington State Health Care Authority Disciplinary Grievances and Appeals Disciplinary Grievances(Represented Employees) Disciplinary Appeals(Non-Represented Employeesfiled with Personnel Resources Board) Time Period = 7/1/06 – 6/30/07 [0] Dismissal [0] Demotion [0] Suspension [0] Reduction in salary [0] Total Disciplinary Appeals Filed with PRB Total # Disciplinary Grievances Filed: [0] There is no one-to-one correlation between the filings shown above and the outcomes displayed in the charts below. The time lag between filing date and when a decision is rendered can cross the time periods indicated. Disposition (Outcomes) of Disciplinary Appeals* Time period = 7/1/06 – 6/30/07 Disposition (Outcomes) of Disciplinary Grievances Time period = 7/1/06 – 6/30/07 N/A

21. ULTIMATE OUTCOMES Employees are committed to the work they do and the goals of the organization Successful, productive employees are retained The state has the workforce breadth and depth needed for present and future success Performance Measures: Employee survey ratings on “commitment” questions Turnover rates and types Turnover rate: key occupational categories Workforce diversity profile Retention measure (TBD) Washington State Health Care Authority • Never • Seldom • Occasionally • Usually • Always Employee Survey “Employee Commitment” Ratings Avg. • Analysis: • HCA had an Employee Survey participation rate of 86 percent as compared to the state average of 58 percent for the October 2006 survey. • Survey results comparable to or slightly higher than the statewide average. Action Steps: • Employees are acknowledged by peers and managers during various events throughout the year. • “Thumbs Up” feature on HCA intranet site to share “kudos” e-mails and letters recognizing excellent service. • Goal posters to be displayed throughout HCA prompt employees to think about how their work contributes to the goals of HCA (implemented April 2007). • Reader board in lobby displays status of agency priorities such as production levels, safety statistics, progress in meeting goals, etc. (implemented May 2007). • HCA celebrations held to recognize achievement of major goals or milestones. Q3. I know how my work contributes to the goals of my agency. Q12. I know how my agency measures its success. Q9. I receive recognition for a job well done. 4.2 3.5 3.4 Overall average score for Employee Commitment ratings: 3.7 Data as of 4/2006 Source: Statewide Employee Survey results

22. ULTIMATE OUTCOMES Employees are committed to the work they do and the goals of the organization Successful, productive employees are retained The state has the workforce breadth and depth needed for present and future success Performance Measures: Employee survey ratings on “commitment” questions Turnover rates and types Turnover rate: key occupational categories Workforce diversity profile Retention measure (TBD) Washington State Health Care Authority Turnover Rates Total % Turnover (leaving state) Time Period: July 2006 through June 2007 • Analysis: • There were four dismissals, all separations during the probationary period. • Turnover is spread across the agency, with no targeted areas of concern. Action Steps: • Exit survey information is compiled on an annual basis with updates to executive management. • HR staff will continue to monitor to identify any trends that may impact future recruitment. Total Turnover Actions: 32Total % Turnover: 11.9% Data as of June 30, 2007 Source: EAR Log

23. ULTIMATE OUTCOMES Employees are committed to the work they do and the goals of the organization Successful, productive employees are retained The state has the workforce breadth and depth needed for present and future success Performance Measures: Employee survey ratings on “commitment” questions Turnover rates and types Turnover rate: key occupational categories Workforce diversity profile Retention measure (TBD) Washington State Health Care Authority Workforce Diversity Profile Agency State Female 75% 53% Disabled 6% 5% Vietnam Vet 3% 7% Disabled Vet 2% 2% People of color 24% 18% Persons over 40 66% 75% • Analysis: • HCA has done well in meeting diversity goals. • One noted exception is in the area of Vietnam Veterans. Action Steps: • Communicate status of utilization and progress toward meeting established goals (quarterly). • Supervisors training on “Lawful and Effective Hiring Practices and “Preventing Discrimination, Harassment and Manage Accommodations” was completed by Spring 2007. • Utilize a variety of resources to disseminate job information and attract quality diversity candidates into the applicant pool. Data as of June 30, 2007 Source: BW Portal