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
Agenda Workforce Overview Trends Challenges & Opportunities Planning Tools Workforce Development Programs Next Steps 2 Questions/Conclusions
3 Workforce Overview
PA Government Workforce 72,752 full-time salaried employees under Governor s jurisdiction as of May 2014 149 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
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
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 Workforce Trends
FT & PT Salaried Employees 82,000 80,000 Under the Governor s jurisdiction 78,000 76,000 74,000 72,000 70,000 68,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 May 2014 8 Source: State Government Workforce Statistics
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 $0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 (Estimated) Source: Office of the Budget Salary Health Pension Other 2014-15 (Estimated)
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
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
Pension Crisis Challenge $47 Billion unfunded liability Employer contribution growing Undercutting ability to fund other essential programs 12
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
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 3,796 583 0 2006 2014 As of May 22, 2014
PA Government Workforce Top Job Classifications as of 6/30/13 1. Corrections Officer 1 6,534 2. Income Maintenance Case Worker 4,413 3. State Police Trooper 3,038 4. Clerk Typist 2 2,486 5. Transportation Equipment Operator B 2,359 6. Residential Services Aide Manager 1,529 7. Transportation Equipment Operator A 1,529 8. Clerk Typist 3 1,258 9. Corrections Officer 2 1,113 10. Liquor Store Clerk 1 979 15 Source: State Government Workforce Statistics
Retirement Trends Top Separations by Job Classification 7/1/12-6/30/13 1. Corrections Officer 1 407 2. Income Maintenance Case Worker 336 3. Clerk Typist 2 252 4. Transportation Equip. Operator B 157 5. Clerk Typist 3 145 6. State Police Trooper 122 7. Residential Services Aid Manager 114 8. Registered Nurse 114 9. Liquor Store Clerk 1 109 10. Transportation Equip. Operator A 96 16 Source: 2014 State Government Workforce Statistics
Workforce Trends Top Hires by Job Classification 7/1/12-6/30/13 1. Income Maintenance Case Worker 435 2. Corrections Officer Trainee 412 3. Clerk Typist 2 225 4. Transportation Equip. Operator A 142 5. Registered Nurse 71 6. Licensed Practical Nurse 54 7. Aide Trainee 48 8. Police Communications Operator 44 9. Youth Development Aide 42 10. Liquor Enforcement Officer Trainee 39 17 Source: 2014 State Government Workforce Statistics
Retention Trends in PA State Government 18
Workforce Trends 16,000 25+ Years of Service 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 May 2014 19 Source: 2014 State Government Workforce Statistics
Annual Separation Rate 12% 10% New Bargaining Agreements New Administration New Bargaining Agreements New Administration New Bargaining Agreements 8% 6% 4% 2% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD Retirements Resignations Furloughs Other 20 Source: State Government Workforce Statistics
Retirement Trends 5,154 3,800 2,536 2,776 3,326 2,900 3,039 07-08 08-09 09-10 10-11 11-12 12-13 YTD 21 Source: Interim Reporting Information System (IRIS) as of May 22, 2014
Retirement Projections 11,254 3,119 3,239 3,444 2,892 Current Eligible May 2015 May 2016 May 2017 May 2018 22 Source: Retirement Projection Tool data as of May 20, 2014
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 2018 23 Source: Retirement Projection Tool data as of May 20, 2014 2014 State Government Workforce Statistics
Workforce Challenges/ Opportunities 24
Challenges/Opportunities Recruitment and Retention Aging Workforce Retiring Baby Boomer Generation 25
Recruitment and Retention Challenges Bureaucratic hiring process Outdated skill requirements Generational Shift Less career oriented Flexibility Mobility 26
Recruitment and Retention Opportunities Classification Study Modernize hiring process Onboarding Getting creative: Mobile PA Challenge Internship Programs Telework and Alternate Work Schedules 27
Aging Workforce/Retirements Challenges Silver Tsunami Loss of institutional knowledge Leadership vacuum Competition for talent 28
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 Workforce Planning Tools
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
Retirement Projection Tool
IT Employees Retirement Eligible
HR Retirement Eligible Employees
Charting the Present
Developing the Future
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
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
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.
Employee Mobility Program SEPARATION 71.4% of employees cited Retirement Eligibility as the leading factor for separating from the commonwealth.
Workforce Statistics Dashboard 1973-2010 - Published hard copy annual reports 2010 - 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
Workforce Statistics Dashboard www.workforcereport.state.pa.us
Transparency Portal www.pennwatch.pa.gov
Manager s Dashboard Deployed in June 2009 Supports: HR Budget Procurement
Workforce Development Initiatives 45
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
Developing the Future: Workforce Transformation in Action 47
Governor s Innovation Office 48
Mobile 1st egovernment Adopt mobile first, responsive design approach. 49
Mobile 1 st egovernment Increase number of online services to drive savings, efficiency and convenience. 50
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
Unified Communications Upgraded outdated phone system with voice over IP (VOIP) Implemented new tools Web and audio conferencing Instant messaging Click to call Voicemail as email w/ attachment Presence/Tell-Me When $27 million annual savings 52
53 Next Steps
We re not finished yet! Enterprise Workforce/Succession Planning Forums Talent Management Initiative Enterprise Mentoring Program Performance Management Automation 54
55 Questions/Conclusions
Contact Information Kelly Powell Logan Secretary, Governor s Office of Administration Past President, National Association of State Chief Administrators 717.783.0247 klogan@pa.gov 56