Human Resources and Payroll Department 2013 Business Plan & Budget

Human Resources and Payroll Department 2013 Business Plan & Budget

2013 Business Plan & Budget Human Resources and Payroll Prior Year Accomplishments Employer/Workplace of Choice Continuation of Management Development Program Managing & Leading In A Municipal Environment Intakes 9, 10 & 11 Continuation of Solution Circles through Loyalist College Directors Circles Continuation of Succession Planning Program partnered with Community & Social Services Support to Community & Social Services in developing model for interdepartmental collaboration and coordination Development and introduction of performance management program for Community & Social Services unionized staff Collective Bargaining CUPE Golden Plough Lodge CUPE Roads CUPE Community & Social Services OPSEU Emergency Medical Services UFCW - Material Recovery Facility Section 34 Occupational Health & Safety Amendment Act - Violence and Harassment in the Workplace Legislation Continuation of Employee training & awareness Occupational Health WSIB Claims Reduction (total County) 2009 claims = 48 ($208,283) 2010 claims = 35 ($374,547) 2011 claims = 40 ($187,997) 2012 claims = 32 ($112,824) (as at Oct 2012) Absenteeism Assist with Early Return to Work program Assist with adjudication of claims Non-Union Compensation Review Development of Compensation Policy/Plan Implementation of recommendations Performance Management Program 2

Update of Performance Management Tool Continuation of development of non-union job descriptions Violence in the Workplace & Workplace Harassment Conducted/led 3 internal investigations Recruitment & Selection 65 vacancies filled Continuation of Wellness Committee Program (in conjunction with Occupational Health & Safety) Several Lunch & Learn sessions promoting healthy lifestyles, work/life balance, motivational, energizing Apples healthy snack promotion Walking program, Cycling program Wellness Fair promoting/introducing local businesses Introduction of Works Perks Program Formalization of Seasonal Compressed Work Week for non-union staff Organizational Effectiveness significant improvement in union/management relations within EMS Continued with development and approval of Human Resources Policies & Procedures 2013 Service Objectives & Initiatives Employer/Workplace of Choice Continue with 2012 priorities Collective Bargaining Ontario Nurses Association Introduction & Implementation of a Human Resources Information System Installation of program Population of data Training for all divisions Education & Awareness Workload management Stress management Work/life balance Redevelopment/definition of Recruitment Process Advertising Screening Promotion of County through recruitment (Facebook, Twitter, Linkedin) Finalization of Human Resources Policies & Procedures Manual Accessibility for Ontarians with Disabilities Act Integrated Services Plan Workplace bullying & harassment prevention ½ day session for GPL and EMS staff Succession Planning Aging workforce, loss of senior talent/knowledge Director/Manager/Supervisor team building initiatives 3

Long Term Plan & Strategic Objectives Employer/Workplace of Choice Continue with learning and development initiatives Education and awareness promoting healthy work life balance, workload management, stress management Implementation and compliance with Accessibility for Ontarians with Disabilities Act Succession Planning Implementation and maintenance of HRIS Reduction of workplace absences partnered with Occupational Health Services Update/review compensation practices bi-annually Organizational Effectiveness continual improvement of employee relations 4

2013 Issue Papers Issue Paper #1 OMERS Rate Increase Purpose This report is to provide County Council with an update on the OMERS rate increases and the financial impact the changes will have on the County of Northumberland. Background As a Municipal employer, the County is mandated to participate in the OMERS Pension Plan. In 2010 OMERS announced a three-year rate increase for members and employers. The increases will be an average 1% of a member s earnings per side (employee and employer) in 2011, 1% in 2012 and 0.9% in 2013. The increases began with the first full pay period in 2011. On June 28, 2012, the OMERS Sponsors Corporation (SC) announced the 2012 Plan changes that were passed from those that were proposed during the 2012 Specified Plan Changes cycle: A contribution rate increase for both members and employers, beginning in 2013. (This is the third of the three planned rate increases announced in 2010 as part of OMERS deficit reduction strategy) A cap to the amount of the contributory earnings that may be included for OMERS pension purposes. Contributions to the OMERS Plan are made by members and matched by employers. Along with investment earnings, contributions provide members with lifetime retirement income. Contribution rate changes are effective with the first full pay in 2013. Contribution rates 2011 2012 2013 Normal retirement age 65 On earnings up to CPP earnings limit* 7.4% 8.3% 9.0% members On earnings over CPP earnings limit* 10.7% 12.8% 14.6% Normal retirement age 60 On earnings up to CPP earnings limit* 8.9% 9.4% 9.3% members On earnings over CPP earnings limit* 14.1% 13.9% 15.9% *CPP earnings limit (Year s Maximum Pensionable Earnings or YMPE) in 2012 is $50,100; the limit in 2013 will be higher. OMERS members pay a lower rate of contributions on earnings up to the YMPE because OMERS and the CPP are designed to work together to provide pension benefits. Pension plan contributions are tax deductible which will lessen the net impact on Plan members. A flat 1% contribution rate increase per side was implemented in 2011. Effective the first full pay in 2012 contribution rates increased on average by an additional 1% of a member s earnings per side (employee/employer) 5

Effective the first full pay in 2013 contribution rates will increase, on average, by an additional 0.9% of a member s earnings per side (employee/employer) These adjustments are based on careful consideration of rates and benefits within the total OMERS membership. The SC will continue to review the principles for allocating and determining contribution rates for all members. Examples of biweekly contribution increases, based on 26 pay periods Normal retirement age 65 Total annual 2012 contributions 2013 contributions Gross** Net** earnings example $40,000 $127.69 $138.46 $10.77 $8.17 $65,000 $233.28 $257.09 $23.81 $16.39 Normal retirement age 60 Total annual earnings example 2011 contributions 2012 contributions Gross** Net** $65,000 $260.79 $270.32 $9.53 $6.56 $90,000 $394.44 $423.20 $28.76 $16.28 The above calculations use the 2012 YMPE ($50,100) ** Net differences after tax are based on 2012 Federal and Ontario marginal tax rates and assume the member has taxable income equal to the annual earnings shown. These rate increases are intended to be temporary, and are part of a long-term strategy to return the Plan to full funding. When the Plan reaches full funding and the deficit is eliminated, rates will be adjusted. These changes do not affect OMERS retired members, deferred members, or survivors. The SC represents both members and employers contributing to the Plan and will make any decisions on changes through its annual planning cycle. Financial Implications The annual payroll for the County is approximately $26.2 million although not all employees are enrolled in OMERS as part time employees are not required to participate. The financial impact of the 2013 will be approximately $345,000. Recommendation All municipalities are required to contribute to OMERS per the identified rate schedule. 6

2013 Issue Papers Issue Paper #2 Employee Service Awards Purpose The purpose of this issue paper is to recommend to County Council that the current annual Employee Service Awards ceremony be augmented to a bi-annual presentation. Background In 2005, the County introduced a new Employee Service Awards Program, which allowed employees to choose their gifts from selected catalogues depending upon their years of service. All employees with five, ten, fifteen, twenty, twenty-five, thirty, thirty-five and forty years of service as of December 31st of the previous year or anyone who retired prior to December 31st of the previous year are presented with an award in recognition of their dedicated service to the County of Northumberland. In January of each year the Human Resources Department provides Directors with recognition packages for all eligible staff based on the staff members previous year s service. The recognition packages are delivered in person to the recipient either by the Director or Manager of the Department. The package includes a gift catalogue, a congratulatory letter from County Council signed by the Warden and instructions on how to complete the ordering process. All gifts are ordered online by the staff member and delivered to the Human Resources Department and held until the presentation ceremonies. The ordering process takes up to 10 weeks. Employees are invited to attend County Council to have their awards presented to them by County Council and the CAO. The presentation of these awards usually takes place in the 2nd quarter of each year. Currently, employees retiring or celebrating an anniversary at the beginning of a year are required to wait until the following spring to receive their award. Staff may have to wait up to 16 months after their anniversary or retirement to receive their award. With the implementation of a bi-annual celebration employees would receive their gifts in a more timely manner and reduce the amount of administration, coordination and storage that is required for the current annual event. Human Resources staff would coordinate two events per year for presentation of the awards. Staff celebrating a milestone between January 1st and June 30th would receive their award in the third quarter of the same year. Staff celebrating a milestone between July 1st and December 31st would receive their award in the first quarter of the following year. There are approximately 60 100 staff that receive awards each year. In shifting to a bi-annual event employees would receive their award closer to their actual anniversary date/retirement, thereby signifying the event. 7

Financial Implications To transition the Employee Service Award program to a bi-annually rather than annually would require a one-time cost of approximately $12,000. The first presentation of awards in 2013 would include all 2012 recipients and the first half of recipients for 2013. Recommendation It is the recommendation of staff that the Employee Service Awards become a bi-annual event and in order make the transition, that the Council of the County of Northumberland authorizes the allocation of an additional $12,000 to the 2013 budget. 8

2013 Issue Papers Issue Paper #3 Human Resource Information System (HRIS) Purpose The purpose of this issue paper is to introduce County Council to a Human Resources Information System (HRIS) and to provide an overview of the HRIS process and rationale for implementing a HRIS system at the County. Background The County currently has a HRIS named Dynamics GP, commonly known as Great Plains. However the system has not been fully populated with staff demographics as it is primarily not a user friendly system from a HR perspective. The system has not been able to provide a comprehensive HR functionality nor is it intuitive for HR staff to use. There are two reasons within the software why the HR function is not strongly supported by Dynamics GP. Firstly, at its core, the system is a financial system developed to support financial functions. The HR modules were added later to make it a more comprehensive system. Screens, terms, and business processes are based on financial functions. Secondly, the HR module is based on United States of America HR policies and standards. There is a separate Canadian module for payroll which builds on the American payroll module but there is no equivalent Canadian version for HR. In order to meets its business requirements, HR has had to introduce several manual procedures, spreadsheets, and small auxiliary systems. Management and Council reports require significant effort, usually involving overtime, to generate the requested information. Extra care must be taken to ensure the information in reports is accurate as the data is calculated and entered manually. The County Human Resources team support up to 500 staff during peak staffing times. The overall HR environment is complex in that it supports 6 different unions each with their own agreements, which impose certain system requirements plus all non union staff that adhere to County Human Resources Policies and Procedures. Additionally the Payroll & HR team support 8 separate benefit plans adding further complexities to reporting requirements etc. Exhibit A outlines the benefits of installing a comprehensive HRIS system within the County structure. The implementation of a Canadian-based product developed in Canada, meeting Canadian regulations and using Canadian terms would enable HR staff to fully populate the system with all staff demographics. The system would meet HR business needs and associated HR functions. Steps 2 of the introduction of the system would be to introduce the system to managers and supervisors to assist them in their HR functions such as employee development, tracking performance appraisals, merit increases, employee counseling etc. The 3rd phase would see the introduction of the Employee Self Service module which would allow 9

employees to view applicable sections of their own HR records not only providing them with ready access to this information but also reducing the number of requests that have to be answered by managers and HR staff. An added benefit of a system is the WSIB forms generator which would allow WSIB forms to be completed on-line and set electronically to WSIB. The payroll modules in Dynamics GP would continue to be used. The HRIS system would be integrated with the payroll system and time and attendance systems. This will eliminate any duplicated data entry currently required. Financial Implications Software including 2013 support costs, employee/manager self serve module, interface to GP payroll and interface to scheduled systems plus professional services including loading the new system with existing data from payroll and training the approximate cost is $50,000. The net financial impact in 2013 will be $25,000 as the balance of the project costs will be financed by 2012 carryover Reserve Funds in the amount of $25,000 that were identified specifically for this project. Recommendation The HR module in Dynamics GP is the primary system currently used to support the HR function within the County. There are several high priority HR requirements that are not met by the system. Manual procedures, spreadsheets and small databases have been developed to address part, though definitely not all, of the missing requirements. The current system is finance based and is not HR friendly. In addition, the HR module was built initially to support American based companies and this initial focus is still evident in the module. Therefore it is staff recommendation that Council authorize the allocation of $50,000 for the upgrade and implementation of a new Human Resource Information System program at the County that captures the requirements outlined by staff. 10

Exhibit A Benefits of HRIS System Description Requirement 1 Security Sound security consistent with operational needs to access HR module in order to safeguard employee information and to be in compliance with privacy legislation; data that is employee specific is 2 Attendance Support Program provided only to those who need it System would be compliant with County approved program and track time accordingly. Would address Occupational Injury or Illness (WSIB) and Non Occupational specifically short-term disability, long term disability, unpaid leave/sick. System would enable the development of incident tracking reports and absence reports; provide the ability to measure and quantify absenteeism issues, satisfy contractual and policy obligations; provide timely information to stakeholders; maintain and keep bank entitlements/balances current 3 Grievance Grievances would be linked to an employee with a description field for consistent data entry; reporting and statistical tracking; reporting capability on stages of grievances and settlements reached 4 Training & Development Ability to effectively track and report employee training taken on multi-topic agendas as well as individual training basis; the ability to log and track mandatory annual training e.g. WHIMIS; system meets reporting requirements for MOHLTC compliance; enables HR & managers to establish training plans and record skills; tracks historical and future courses, costs and results; maintains a staffing skills inventory beneficial for succession planning 5 Employee Status Better defines employee status e.g. PTC (part time casual) and student; tracking of movement between positions i.e., PSW moving from part time to temporary full time and back to their home position; tracks leaves of absence, transfers and terminations; maintains compensation and benefit history 6 Reviews System tracks full and part time review requirements and timelines; provides automatic reminders when reviews are to be completed; empowers managers to run reports to track when reviews are required; track total number of reviews completed 7 Business Alerts Provides reminders to HR and Managers to track performance appraisals, probationary reviews and pay increases 8 Reporting Reliable and accurate information for quarterly and annual reporting purposes. Reports include attendance, disability claims, turnover, overtime, seniority and performance reviews 9 Seniority Accurately tracking and reporting seniority for the 6 unions. Currently done manually and subject to human error 10 Notes HR, managers & supervisors can input notes into the system and extract the information in report format 11 Health & Safety Keep track of incidents, injuries, claims, analyze root causes, establish corrective action for each incident; compare current and historical data 11