Pennsylvania s Workforce Challenges and Opportunities to Innovate
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1 Public Sector for the Future Pennsylvania s Workforce Challenges and Opportunities to Innovate Kelly Powell Logan Secretary, Governor s Office of Administration Past President, National Assn. of State Chief Administrators 1
2 Agenda Workforce Overview Trends Challenges & Opportunities Planning Tools Workforce Development Programs Next Steps 2 Questions/Conclusions
3 3 Workforce Overview
4 PA Government Workforce 72,752 full-time salaried employees under Governor s jurisdiction as of May state employees/10,000 residents 8 th lowest in the nation National average 169 Population 12.8 million 4 Source: PennWATCH, U.S. Census Bureau
5 PA Government Workforce 36 agencies, boards and commissions under the Governor s jurisdiction 40.3% females 13.4% minorities Averages Age: 46 Years of service: 12 5
6 PA Government Workforce 82% represented by one of 20 unions 69% merit system (Civil Service) covered More than 2,800 active job classifications 6
7 7 Workforce Trends
8 FT & PT Salaried Employees 82,000 80,000 Under the Governor s jurisdiction 78,000 76,000 74,000 72,000 70,000 68, May Source: State Government Workforce Statistics
9 Cost Growth per Average Salaried Employee $100,000 $89,474 $90,000 $80,000 $70,000 $60,000 $50,000 $68,853 $4,654 $1,513 $16,574 $71,819 $72,590 $5,851 $5,830 $1,573 $2,017 $16,574 $15,660 $82,040 $76,102 $78,648 $5,940 $6,044 $5,916 $7,493 $5,279 $3,537 $16,052 $17,096 $19,053 $6,560 $10,383 $20,593 $40,000 $30,000 $20,000 $46,113 $47,821 $49,082 $50,598 $50,229 $49,554 $51,939 $10,000 9 $ (Estimated) Source: Office of the Budget Salary Health Pension Other (Estimated)
10 Healthcare Costs Challenge Continued Rising Costs ~ FY 2013/14 $1.66 billion ~ FY2014/15 $1.75 billion Additional Costs Required by ACA CY2014 $75 million CY2015 $82 million 10
11 Healthcare Costs Opportunities Further Improve Wellness Program 2013: 80% of employees completed biometric screening to earn contribution reduction 2014: Employees and spouses must complete biometric screening Screening results being used to develop disease management programs 11
12 Pension Crisis Challenge $47 Billion unfunded liability Employer contribution growing Undercutting ability to fund other essential programs 12
13 Pension Crisis Opportunities Restructure retirement plans New hires effective 2015 First $50k of salary = defined benefit Anything over $50k = defined contribution $11 billion in savings over 30 years 13
14 Workforce by Generation 80,000 1,570 70,000 10,179 60,000 23,592 50,000 30,363 Gen Y 40,000 Gen X Boomer 30,000 49,966 31,826 Traditional 20,000 10,000 3, As of May 22, 2014
15 PA Government Workforce Top Job Classifications as of 6/30/13 1. Corrections Officer 1 6, Income Maintenance Case Worker 4, State Police Trooper 3, Clerk Typist 2 2, Transportation Equipment Operator B 2, Residential Services Aide Manager 1, Transportation Equipment Operator A 1, Clerk Typist 3 1, Corrections Officer 2 1, Liquor Store Clerk Source: State Government Workforce Statistics
16 Retirement Trends Top Separations by Job Classification 7/1/12-6/30/13 1. Corrections Officer Income Maintenance Case Worker Clerk Typist Transportation Equip. Operator B Clerk Typist State Police Trooper Residential Services Aid Manager Registered Nurse Liquor Store Clerk Transportation Equip. Operator A Source: 2014 State Government Workforce Statistics
17 Workforce Trends Top Hires by Job Classification 7/1/12-6/30/13 1. Income Maintenance Case Worker Corrections Officer Trainee Clerk Typist Transportation Equip. Operator A Registered Nurse Licensed Practical Nurse Aide Trainee Police Communications Operator Youth Development Aide Liquor Enforcement Officer Trainee Source: 2014 State Government Workforce Statistics
18 Retention Trends in PA State Government 18
19 Workforce Trends 16, Years of Service 14,000 12,000 10,000 8,000 6,000 4,000 2, May Source: 2014 State Government Workforce Statistics
20 Annual Separation Rate 12% 10% New Bargaining Agreements New Administration New Bargaining Agreements New Administration New Bargaining Agreements 8% 6% 4% 2% 0% YTD Retirements Resignations Furloughs Other 20 Source: State Government Workforce Statistics
21 Retirement Trends 5,154 3,800 2,536 2,776 3,326 2,900 3, YTD 21 Source: Interim Reporting Information System (IRIS) as of May 22, 2014
22 Retirement Projections 11,254 3,119 3,239 3,444 2,892 Current Eligible May 2015 May 2016 May 2017 May Source: Retirement Projection Tool data as of May 20, 2014
23 Workforce Retirement Eligibility 8,028 or 11% of current state employees have 25 or more years of service 11,254 or 15% of state employees are eligible to retire 23,948 or 32% of current state employees will be eligible to retire by Source: Retirement Projection Tool data as of May 20, State Government Workforce Statistics
24 Workforce Challenges/ Opportunities 24
25 Challenges/Opportunities Recruitment and Retention Aging Workforce Retiring Baby Boomer Generation 25
26 Recruitment and Retention Challenges Bureaucratic hiring process Outdated skill requirements Generational Shift Less career oriented Flexibility Mobility 26
27 Recruitment and Retention Opportunities Classification Study Modernize hiring process Onboarding Getting creative: Mobile PA Challenge Internship Programs Telework and Alternate Work Schedules 27
28 Aging Workforce/Retirements Challenges Silver Tsunami Loss of institutional knowledge Leadership vacuum Competition for talent 28
29 Aging Workforce/Retirements Opportunities Reorganize, streamline and consolidate Workforce Planning Tools Retirement Projection Tool Employee Mobility Program Workforce Statistics Dashboard Manager s Dashboard Workforce Development Programs 29
30 30 Workforce Planning Tools
31 Retirement Projection Tool Depicts retirement eligibility by agency, organization and job classification over a four-year period Allows for ad hoc reports at the enterprise level Helps agency workforce planners to: predict future workforce shortfalls identify succession planning and knowledge transfer goals implement proactive workforce management practices
32 Retirement Projection Tool
33 IT Employees Retirement Eligible
34 HR Retirement Eligible Employees
35 Charting the Present
36 Developing the Future
37 Employee Mobility Program Three online surveys Why employees enter, transfer between organizations or exit state government Identifies: employee preferences systemic issues which lead to employee turnover trends assist agencies with recruitment and retention strategies Allows for special reporting/identification of EEO and safety-related concerns
38 Employee Mobility Program NEW HIRES Accounting for almost 60% of responses, the top five reasons for choosing state employment are: 1. Job Security/Stability 2. Salary 3. Retirement Benefits 4. Health Care 5. Career Change
39 Employee Mobility Program EMPLOYMENT CHANGE 36.8% transferred as a result of Promotions 20.4% cited Lack of Promotional Opportunities the top factor for leaving their previous positions 11.9% provided write-in responses such as furlough, re-instatement, facility closure, consolidations, restructuring, or other circumstances beyond their control.
40 Employee Mobility Program SEPARATION 71.4% of employees cited Retirement Eligibility as the leading factor for separating from the commonwealth.
41 Workforce Statistics Dashboard Published hard copy annual reports Converted to electronic dashboard, renamed State Government Workforce Statistics Current and historical data on: Complement Salaries and Benefits Demographics Geographic Characteristics Resource for HR professionals, media, public
42 Workforce Statistics Dashboard
43 Transparency Portal
44 Manager s Dashboard Deployed in June 2009 Supports: HR Budget Procurement
45 Workforce Development Initiatives 45
46 Workforce Development Initiatives Pennsylvania Management Associate Human Resource Management Trainee Emerging Leader Program Leadership Development Institute Government IT Managers Certificate Program Certified Government CIO Program 46
47 Developing the Future: Workforce Transformation in Action 47
48 Governor s Innovation Office 48
49 Mobile 1st egovernment Adopt mobile first, responsive design approach. 49
50 Mobile 1 st egovernment Increase number of online services to drive savings, efficiency and convenience. 50
51 Compute Services Moving two central and five agency data centers to the cloud. Facilities, hardware, services, etc. delivered by vendor Consumption on demand only pay for what we use 51
52 Unified Communications Upgraded outdated phone system with voice over IP (VOIP) Implemented new tools Web and audio conferencing Instant messaging Click to call Voic as w/ attachment Presence/Tell-Me When $27 million annual savings 52
53 53 Next Steps
54 We re not finished yet! Enterprise Workforce/Succession Planning Forums Talent Management Initiative Enterprise Mentoring Program Performance Management Automation 54
55 55 Questions/Conclusions
56 Contact Information Kelly Powell Logan Secretary, Governor s Office of Administration Past President, National Association of State Chief Administrators klogan@pa.gov 56
December 15, 2015. Page 1 of 4
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