Central Operations DepartmentHuman Resources Division

April 15, 2011

Mission Statement

“To remain the trusted right hand of leadership.”

How do we accomplish that Mission?• Master our processes

> Trust comes when you handle the basics flawlessly.

• Fortify our strong working relationships> Without strong working relationships we will never

get beyond transactional or emergency work to impact the organization on a strategic level.

• Give good advice every time> Continue to be experts in our field. Leave no doubt

we are on top of our game. Grow continually.

The Key Functions of Human Resources…

Examining

Classification and Compensation

Recruitment & Onboarding

Labor Relations and Compliance

Data Management

Employee Benefits

Client RelationsSupported by Core HR

Functions and Centers of Excellence

Organizational Development

The Senior Leadership Team

• Chad Poppell – Chief of Human Resources• Millie Reeves – Senior Manager of Personnel Services• Diane Moser – Manager of Personnel Services• Maryanne Evans – Manager of Personnel Services

Key Function – Recruiting and On-Boarding• The recruiting process consists of designing jobs and recruitment

strategies to select an exceptional employee every time. • The on-boarding process begins at employee selection and concludes

when the City determines the employee is engaged and will be successful on the job.

• HR is responsible for helping hiring managers comply with all local, state and federal employment law and assists them in making selections that ensure the workforce is representative of the community.

KEY FACTS - HR hires over 1600 employees every year. We recently partnered with City Council to craft groundbreaking legislation that removed unnecessary barriers to employment for ex-offenders.

Key Function – Classification and Compensation• The classification process includes gathering job information from

employees to establish new positions and review existing ones for appropriateness and placement within one of the classification systems.

• The compensation process includes determining the proper level of pay for a classification and for employees.

• Manages the reduction in force process for all city employees.• Makes exempt or non-exempt Fair Labor Standards Act determinations

and reviews organizational span of control issues.• Participates in and conducts salary surveys to compare to market

pricing.

KEY FACTS – The City has over 800 job classifications, with jobs changing regularly in terms of duties and market value. The City has undergone 9 separate reductions in force (RIF) since fiscal year 2009 and has a high success rate of finding jobs within the City for employees affected by a RIF.

Key Function – Examining/ Employee Selection • Develops selection tools for use by management during the new hire

selection process. • Develops and administers promotional examinations to City

employees for progression through the Civil Service classified system. • Works hand in hand with consultants to develop and administer

assessment center and other promotional examinations for Police and Fire classifications.

KEY FACTS – HR administered over 120 examinations in FY 2010 and contracted with vendors who developed and administered internal public safety exams. The City hired an Industrial Psychologist which will decrease our reliance on vendors resulting in a cost savings.

Key Function – Labor Relations and Compliance• The Labor Relations discipline deals with the elements of formal

labor-management relations.• The Employee Relations discipline concerns the relationship of

employees with the organization and with each other.• Handles all wage/hour issues, compliance with labor and

employment laws, and act as consultants to management on discipline and grievances as well as general labor relations and collective bargaining issues.

• Acts as investigative arm for high profile cases, ethics charges and when requested by City management teams.

KEY FACTS – Approximately 80% of our workforce is unionized. We have six unions that represent 11 bargaining units.

Key Function – Employee Benefits• Responsible for the research, development, procurement,

administration and servicing for all City and 3 outside agencies’ employees, retirees and eligible dependents benefits programs.

• Benefit programs include: health insurance, TriCare Supplement, retiree Medicare plans, employee, retiree and dependent life insurance, statutory death plan, dental and vision plans, a flexible spending account (FSA) with 4 service options, an employees' assistance program, a 401(a) defined contribution plan, a 457(b) deferred compensation plan, and a ROTH IRA plan.

• Provides administration and ensures compliance for federal mandates, e.g., COBRA, HIPPA, USERRA, OBRA, and Health Care Reform to name a few.

KEY FACTS – Employee Benefits touches over 9,700+ employees and retirees and an additional 17,776 dependents.

• Provides pre-retirement seminars and lunch and learn programs.

• Wellness program (focused on reducing health care costs and having healthier employees) provides: • Health Fairs with free screenings• Health Intervention Program in joint-venture with health

care provider for City employees who are covered by the plan and who qualify. Based on top 8 disease-state cost drivers.

Key Function – Employee Benefits continued

Key Function – Organizational Development• Dedicated to enhancing the work environment through training,

leadership development, performance management, tuition reimbursement, team building, mentoring, etc.

• The Leadership Development Academy (LDA) is a curriculum of 64 hours designed to enable our employees to become effective supervisors. It is now a promotional requirement.

• As a result of the LDA, the Executive Leadership Academy was implemented to target department directors and division chiefs.

KEY FACTS: Since its inception approximately 2.5 years ago, over 1200 employees have enrolled in Leadership Development Academy classes with over 700 graduates. Employees have a two year period to complete the LDA.

Key Function – Data Management• Manage personnel changes for all city employees; ensuring each

complies with union contracts, pay plans, and other legislation. • Act as custodian of all City employee employment records, both

physical paper records as well as electronic files. • Oversee HRIS (ORACLE). Deliver HRIS Training and access for

users• Fulfill public record requests. • Develop reporting tools and provide reports on personnel

information.

KEY FACTS - nearly 10,000 employee transactions are processed and reviewed every year.

What are our Key Performance Indicators?

In addition to strategic goals, we measure our performance on:• Cycle times and error rates for base transactions • Time to hire • Participation rates in development and wellness activities• How many HR employees it takes to service the organization

(industry standard ratio of HR employees to every 100 FTE)

Impact of Consolidation• Moved from decentralized service model to centralized in 2007.• City realized greater efficiency in administering policy, personnel

transactions and staffing. Still have room to improve, taking a functional look.

• Customer complaints were due to loss of control, not quality of service. Minimal now.

• 69 FTEs currently, by year’s end we will be down to 66 or fewer, down from 92 at consolidation (will have a 30% drop in staffing).

• $4.7 million operating budget; $101 million overall (group health)> Significant cuts to training and other professional services> Privatized EAP> Have eliminated hundreds of thousands from the budget the last 3 years.

• Major professional service expenditures are in labor relations, promotional testing, and occupational health. Planned changes here as our expertise has grown.

• HR Staffing Ratio more in line, or better than national metrics.

City Employees versus HR Employees

92

83

76

69

8870

9002

9241

9344

60

70

80

90

100

FY 07-08 FY 08-09 FY 09-10 FY 10-11

HR

Em

plo

yees

8600

8700

8800

8900

9000

9100

9200

9300

9400

Cit

y E

mp

loye

es

HR EmployeesCity Employees

Challenges for the Office – General Issues

• Balance financial needs of City with issues of competitiveness and fairness for employees

• Finish consolidating processes through policy considerations• Become more easily navigated by clients• Traditional HR problem: balance advocacy with compliance• Create/bring in the expertise needed to gain customer trust• Continue to push for reduced staffing as efficiencies become

apparent

• Over the last several years the City has conducted studies at the request of City Council and the TRUE Commission.

• Study 1 – Changing to a self-funded model from the current fully funded model the City employs. Decision to stay fully insured saved the City an estimated $6 million in FY 2010.

• Study 2 – Use of an in-house health clinic as a means to capture primary care costs and save City dollars. There are models that predict a possible savings, but the likelihood of the required utilization is low and no data has been found or provided to validate the savings proclaimed by vendors.

• Study 3 – Pooling plans with JEA and DCSB to get an economy of scale. Our rate increases indicate pooling with these groups would not be in the City’s best interest at this time, and would be an administrative improbability.

Challenges for the Office – Controlling Health Care Costs

CY     2004 2005 2006 2007 2008 2009 2010 2011

U.S. Medical/RX Trend: 14.6% 12.7% 12.1% 11.5% 10.7% 10.2% 13.5% 10.40%

City's HMO Annual Increase: 11.9% 13.5% 6.2% 1.78% 8.7% 0% 9.50% 9.96%

Difference:   -2.7% 0.8% -5.9% -9.7% -2.0% -10.2% -4% -0.4%

City rates best U.S. medical/RX Trends 2004 – 2011

• Retiree Drug Subsidy Program (2006 – 2010) - $1.3 million• Early Retirement Reinsurance Program (ERRP) (2010) - $1.4million• COBRA Subsidy (2009/2010) - $86,898• Professional Services Cost-sharing Outside Agencies (2010/2011) -

$73,500• Health Insurance Rate Negotiations (2010) - $5.2 million• Health Insurance Rate Negotiations (2011) - $4.3 million• Statutory Death Rate Negotiations (2010) – $34,232 (2-yr. rate guar.)• City Life Insurance Rate Negotiations (2010) - $972,333 (5-yr. rate

guar.)

Grand Total: $13.4 million.

EB-Negotiating Successes and One-Time Monies Received

• Training is often the first place organizations cut when under financial stress. HR has cut several hundred thousand dollars from the Organizational Development budget the last several years.

• In FY 09, we eliminated external training contracts and made the decision to be an in-house shop saving about $400,000.

• We reduced the trainer positions from four to three saving an additional $55,000 factoring in benefit costs.

• We are currently staffed to deliver only three services to our workforce: 1)leadership development training; 2)required training; and, 3)tuition reimbursement processing

• Eliminating tuition reimbursement funding (600K) has significant detrimental effects on JFRD’s Professional Growth and Development Program.

Challenges for the Office – Holding on to Employee Development

• Managers typically value speed and the interview process more than other methods of getting information about prospective employees.

• Managers often think that they need to make decisions in a vacuum without using the full extent of our services.

• Establishing appointed hiring standards (Appointed Pay Plan)• Further, as an organization we don’t use the probationary process

to insist on excellence and weed out just “OK” performers.• HR is developing tools and processes for managers in making

their selections. These include a comprehensive selection package that can be adapted to management needs and full utilization of existing resources.

Challenges for the Office – Getting Buy-In on Better Hiring Practices

• Complete impasse process for FOP and CWA for FY 10. Begin negotiations for FY 11 (current year).

• Side letter agreements indicate City’s intention to maintain equitable reductions among bargaining units.

• Rebuilding relationships with union leadership. Full schedule of collective bargaining begins in earnest in January 2012.

• Success or failure of negotiations with Police Fire Pension Fund will impact collective bargaining agenda going forward.

Challenges for the Office – Collective Bargaining

• Use current contraction to re-look at organizations and reduce layers of oversight and supervision.

• City is top-heavy, see 2008 policy• Requires a comprehensive compensation policy that

addresses equity, competitive salaries, etc.• Get beyond “fear” of retaining talent through compensation

adjustments.

Challenges for the Office – Span of Control and Compensation

Recent Improvements…

• Completed collective bargaining process with IAFF, AFSCME, LIUNA and JSA, resulting in decreased employee costs

• Implemented revised Civil Service Rules for the first time in 15 years.• Partnered with Council Members to restructure Section 17.06 of the

City Charter and overhaul appointed positions.• Implemented an aggressive new City Wellness Program incenting our

most “at risk” employees to achieve better health.• Implemented the Executive Leadership Academy• Created an on-line Career Transition resource for employees who are

experiencing a career change.• Hired in-house JFRD promotional exams saving the City $6,500 per

exam• Implemented new Occupational Health contract saving the City about

$500,000 during CY 2011/2012.• Implementing E-Verify system to enhance compliance with USCIS

regulations

Future Improvements…

• Finish collective bargaining process with FOP • Reorganize to improve HR’s leadership to employee ratio • Further automation of Employee Benefits administration• Develop a compensation policy recommendation for new

mayor • Implement new ATS/On-boarding software• Focus on adding value to the on-boarding process so managers

will have more information about who they are considering• Train on Microsoft Office 2010 upon conversion • Roll out the Management Leadership Academy (MLA)• Assist with a smooth mayoral transition

What are our Responsibilities per the Code?

(a) Adopt personnel rules and regulations as authorized by Section 17.05(d) of the Charter and implement the personnel rules and regulations by undertaking and performing the management duties required to carry them out.

(b) Establish and maintain a roster of all employees of all offices, departments, and boards of the Consolidated Government, which shall reflect such data and information as may be deemed necessary by the Mayor regarding personnel organization and management and as may be required by the personnel rules and regulations.

(c) Prepare and maintain an up-to-date record of the authority, duties and responsibilities of each position, including those in the classified civil service as well as exempt and unclassified positions.

(d) Develop and prepare programs for employee development and training, and develop or contract for retraining facilities and programs for employees affected by changes in their employment resulting from merger or elimination of units of the Consolidated Government.

(e) Develop and prepare programs of job analyses, salary and wage analyses, employee benefit analyses and general research in relation to personnel management; adopt, alter, amend or modify a job classification plan; and adopt a job pay plan which shall, among other things, include a plan for vacation time, sick leave time, overtime compensation, service raises and military leave for non-represented employees and employment, and administer collective bargaining agreements covering represented employees. The job pay plan adopted by the Division shall be uniform within any job classification.

What are our Responsibilities per the Code? (continued)

(f) Develop and prepare job specifications for the various classes of positions in the classified civil service and for positions not under civil service.

(g) Conduct examinations as required by the civil service and personnel rules and regulations to determine qualifications for jobs covered by the civil service, and freely advertise job placement opportunities and requirements in connection with the administration of examinations.

(h) Establish a listing of eligibles as a result of examinations and certify to the appropriate appointing authority the names of the persons qualified by examination for employment or promotion.

(i) Ensure, in coordination with the Accounting Division, the accuracy of payroll certification in accordance with applicable ordinances, laws, and rules and regulations.

(j) Manage and administer the City's employee/management labor relations responsibilities in compliance with Chapter 447, Florida Statutes.

(k) Ensure, in coordination with a committee comprised of the Chief Administrative Officer, Chief Financial Officer, General Counsel, Chief of Human Resources, and Risk Manager (or their respective designees) and two individuals with insurance experience appointed by the Council President, the efficient and effective procurement of health and life insurance for the benefit of the City and its employees.