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Overview of the State EmployeeWorkforce, Compensation andthe State Employee Health PlanSenate Finance and Appropriations:General Government Sub-CommitteeEmily S. Elliott, DirectorDepartment of Human Resource ManagementJanuary 28,2020

Topics for Discussion Workforce Data Compensation and Benefits HR Systems– Recruitment Management System– Cardinal Human Capital ManagementJanuary 28, 2020DHRM2

Workforce DataJanuary 28, 2020DHRM3

Employment LevelsEmployee Resource Levels(all position types)Majority of Executive BranchEmployees are in EducationExecutive BranchFTEs%Education57,307.5154.82%Public Safety & Homeland Security17,347.4016.60%Health and Human %Natural Resources1,816.121.74%Commerce & on1,000.190.96%1,048.001.00%STATEWIDE FTEs as of 11/30/2019SALARIED 13.2899.05%8.890.04%136.010.59%Veterans and Defense Affairs75.730.33%Agriculture & Forestry682.100.65%23,233.9117.44%Executive Offices509.850.49%TOTAL EXECUTIVE BRANCH 104,530.67100%ExecutiveLegislativeTotal SalariedWAGE tal TemporaryTOTAL EMPLOYEES 133,255.43100%Source: DHRM EPR Reports 11/30/2019January 28, 2020Source: DHRM EPR Reports 11/30/2019DHRM4

Classified State WorkforceEmployee waterOtherVeteransJanuary 28, 2020Roanoke35.2%Minority36FemaleRaceAverage AgeAverage Age ofNew HiresWinchesterCharlottesvilleMale46Classified Employees by AreaRichmondDHRM – Data as of 06/19/201910.65%13.04%18.30%29.25%5

Classified State WorkforceEmployee DemographicsYears of State ExperienceTeleworkEligiblePositions25.8%30 yearsAverage Yearsof Service25 to 30 years11.3 20 to 25 yearsEmployeesTeleworking15 to 20 years18.7%10 to 15 years5 to 10 years0 to 5 yearsJanuary 28, 2020DHRM – Data as of 06/19/20197.64%5.25%7.67%10.25%15.01%16.27%37.91%6

Classified State WorkforceJob Structure and ClassificationOccupational FamilyCareer GroupsRolesAgencies also use work titles to further delineate jobs.January 28, 20207

Classified State WorkforceSalary StructureJanuary 28, 20208

STATE WORKFORCETOP TEN AGENCIES & JOB ROLES2/3 of workforce in 10 Agencies41% of classified workforce in 10 rolesAgenciesJob Role1. University of Virginia Systems1. Admin and Office Spec III5,8052. Department of Corrections2. Security Officer III5,7303. VPI & State University3. Transportation Operator II2,2784. Department of Transportation4, Program Admin Specialist I1,7375. Virginia Community College Systems5. Admin and Office Spec II1,6046. Virginia Commonwealth University6. Direct Service Associate II1,5607. Dept. of Behavioral Health & Dev Services7. Program Admin Specialist II1,5408. George Mason University8. Probation Officer I1,2259. Department of Health9. Housekeeping &/or Apparel Worker I1,18710. James Madison University10. Financial Services Spec I1,175January 28, 2020DHRM# Employees9

Classified State WorkforceHiring – New Employees and RehiresJanuary 28, 2020DHRM10

Classified State WorkforceHiring - Counts and Starting Pay / BandJanuary 28, 2020DHRM11

Classified State WorkforceTurnover – Voluntary and In-VoluntaryJanuary 28, 2020DHRM12

Classified State WorkforceTurnover – Voluntary ResignationsJanuary 28, 2020DHRM13

Classified State WorkforceTurnover - Years of ServiceJanuary 28, 2020DHRM14

Classified State WorkforceTurnover - RetirementsJanuary 28, 2020DHRM15

Exit Survey ResultsResponse Rate of SurveyCompletersCommonwealth Net Promoter ScoreNational Average for exit surveys is 20%. The participation rate forthe Commonwealth continues to climb.Our net promoter score, or what separating employees tell theirfriends and family about employment is improving steadily. This isdirectly correlated with pay increases, employee engagementinitiatives and transparent communication.The reason individuals are separating,transferring or retiring from theCommonwealth in Fiscal Year ---------55 respondentsJanuary 28, ---------95 respondents58 respondentsDHRM178 respondents16

CompensationJanuary 28, 2020DHRM17

CompensationLookback at 2019 Effective January 10, 2019 – special salary increases fordistressed roles.– Base salaries of Correctional Officers and Officer Seniorsincreased by 2,016.– Base salaries of Juvenile Correctional Officers and OfficerSeniors increased by 1,846.– Virginia Marine Police with more than one year of serviceon January 10, 2019 shall be the greater of 43,905 ortheir current salary adjusted for a 6.5 percent increase.– Base salaries for all DBHDS Direct Service Associates, LPNs,and RNs increased to within three percent of marketmedian.January 28, 2020DHRM18

CompensationLookback at 2019 Effective June 10, 2019 - all employees in salaried positions as of March10, 2019 were eligible for a 2.75% increase subject to satisfactoryperformance.Salaried employees noted above also eligible for an additional 2.25%merit-based increase subject to satisfactory performance.– Under the Act, Agencies had the authority to apply the merit-based increasein a variable manner.– Only 8 agencies chose to do so: Department of ForestryScience Museum of VirginiaLongwood UniversityOld Dominion UniversityJamestown/Yorktown CommemorationJamestown/Yorktown FoundationState Council of Higher Education for VirginiaVirginia Department of Small Business and Supplier Diversity*Faculty and wage employees increases managed locally.January 28, 2020DHRM19

CompensationIndustry Projections for 2020Government / Public Sector IndustrySalary Structure Adjustments1.6% - 2.0%General Increases / COLAs1.9% - 2.4%Merit Increases2.6% - 3.0%3.0%Total Projected IncreasesGeneral IndustryJanuary 28, 2020Salary Structure Adjustments2.0% - 2.2%General Increases / COLAs0.9% - 3.0%Merit Increases2.9% - 3.0%Total Projected Increases3.2% - 3.3%DHRM20

Benefits – Health Insurance21

Benefits – Health Insurance Office of Health Benefits provides oversight for thestate health plan that covers:– just over 201,000 eligible state employees, non-Medicareretirees and their dependents– a local government health plan that covers 78,000participants– a Medicare retiree health plan that covers over 40,000members– a Line of Duty Act health program with 3,000 members. In aggregate, these plans have a total claims andadministrative cost of approximately 2 Billion a year.January 28, 2020DHRM22

Benefits – Health InsuranceLookback at 2019 May 2019 – utilized an online open enrollment system with22,000 transactions processed online. This was the firsttime the system had been back online in three years. July 1, 2019 - new health benefit contracts in place.– Added a new regional plan for the Hampton Roads area.– Included one prescription drug administrator for all self insuredplans.– Included one dental plan administrator for all self insured plans.– New flexible spending program administrator. October 2019 - Premium holiday for Active stateemployees, those with COBRA coverage and state retireesJanuary 28, 2020DHRM23

Benefits – Premium Rewards For COVA Care and COVA HealthAware,premium rewards continued for FY20 andincluded in introduced budget for FY21.– State employee and enrolled spouse are botheligible for a premium reduction.– By doing so, state employee and spouse pay 17less a month or 34 less when both met therequirement established. Requirement is the completion of a health assessment.January 28, 2020DHRM24

Benefits – Premium Rewards Participation in premium rewards has been stable in the last 2 years.Number of Employees/Spouses 10,0000 9/2013 9/2014 9/2015 9/2016 9/2017 9/2018 9/2019 12/2019About 31% of eligible population earn rewards leaving unearned premiumrewards in the Health Insurance Fund.Excess premium rewards are factored into future premium rates topartially offset cost.January 28, 2020DHRM25

BenefitsHealth Insurance PremiumsPLANCurrent Monthly Cost (FY20)Proposed Monthly ChangeEmployeeOnlyEmployeePlusOneEmployeePlus2 or More 7 77 181 260 30 43 703 1,259 1,845 0 18 70 780 1,440 2,105EmployeePlus2 or oyeePlus2 or More 24 25 0- 24- 25 0 0 0 677 1,229 1,802- 16- 6- 18 661 1,223 1,784 677 1,253 1,827- 16- 30- 43 661 1,2253 1,784EmployeeOnlyEmployeePlusOneEmployeePlus2 or MoreEmployeeOnlyEmployeePlusOneEmployee Plus2 or MoreEmployee 75 177 253 2 4Employer 687 1,229 1,802 16 762 1,406 2,055EmployeeOnlyEmployeePlusOneEmployee 0EmployerTOTAL PREMIUMCOVA Care BasicTOTAL PREMIUMCOVAHealthAwareBasicProposed Monthly Cost (FY21)Employee Plus Employee Only2 or MoreCOVA Care Basic – FY 21 shows 2.41% increase in premiums / COVA HealthAware Basic – FY 21 has 2.3% reduction in premiumsSource: Department of Planning and Budget Schedule - December 2019January 28, 2020DHRM26

BenefitsHealth Insurance FundHealth Insurance Fund Year End Balances450Active & Early Retiree PlanYear End BalancesFY 2015 – 132.3 millionFY 2016 - 94.6 millionFY 2017 - 124.5 millionFY 2018 - 260.6 millionFY 2019 - 380.3 million12/2019 – 386.4 million350300Millions 400250200150100500January 28, 20202015DHRM2016201720182019Dec-1927

HR SystemsJanuary 28, 2020DHRM28

Recruitment Management System RMS is the system that facilitates the recruitment and fillingof vacancies within the Commonwealth. Originally procured in 2006; one update in 2015. Significant because in a given year, over 15,000 jobs areadvertised and over 436,000 job applications are screenedfor potential interviews and hiring.– For individuals not currently employed in state government,RMS can be the first impression of state technology tools. Request for Proposal in October 2019; responses received;vendor presentations held; final selection in progress.– VITA is IT project lead; DHRM business partner.– Representatives from multiple state agencies involved. Anticipate go live date is November 2020.January 28, 2020DHRM29

Human Capital Management (HCM)ProjectCommonwealth of VirginiaEmily S. Elliott, DHRM and David Von Moll, DOAJanuary 28, 2020

What is Cardinal? Cardinal is an Enterprise Resource Planning (ERP) programmanaged by the Department of Accounts (DOA). DOA and DHRM are partnering to replace legacy human resource,health benefits, time and attendance, and payroll administrativesystems with the Cardinal Human Capital Management application. Cardinal utilizes Oracle’s PeopleSoft ERP software suite and expandsupon the existing footprint of Cardinal Financials, successfullyimplemented in 2016 to replace the Commonwealth Accounting andReporting System (CARS).31

Cardinal HCM Project ScopeFour high-level functional areas will be implemented across eightsoftware modules addressing 17 business processes, 49 sub-processesand 1,482 requirements identified for HCM.AreaCardinal PeopleSoftHCM ModulesHuman ResourcesHuman ResourceseProfileBenefits AdministrationBenefits AdministrationeBenefitsTime and LaborTime & AttendanceAbsence ManagementPayroll for North AmericaPayrollePayBusiness ProcessesSetup and Maintain Employee HR Data,Administer Salary Plans, Maintain Additional HRDataBenefits Recon., Administer Open Enrollment,Administer Event Maintenance, AdministerCOBRA, ACA ReportingT&A Employee Setup, T&A Capture, T&AApproval and Processing, Payroll Integration andCost AllocationMaintain Employee Payroll Data, ProcessPayroll, Post Payroll Process, Payroll Costing,Periodic Regulatory ReportingNote: Financial integration with General Ledger, Accounts Payable, Expense, and ProjectCosting is also included.32

Cardinal HCM Implementation TimelineWe are hereAgency tasks split into Release 1 and Release 2 activitiesGo Live:Release 1 (R1) – March 2021Release 2 (R2) – October 202133

Project Milestone TrackingMilestonePlannedActual Planned End Actual EndStart Date Start DateDateDatePlanning and Construction8/5/20197/29/2019Release 1: System Test4/6/20201/15/2021User Test Execution1/11/20212/12/2021Release 1: Training Delivery1/11/20212/26/2021Release 1: Go-Live3/1/20213/8/2021Release 1: Stabilization3/8/20215/7/2021Release 2: System Test4/5/20217/9/2021Release 2: Training Delivery8/2/202110/1/2021Release 2: Go-Live10/4/202110/12/2021Release 2: oject Closeout6/14/20196/21/201910/18/2019 10/18/20196/12/202034