1. 2013–2015 Human Resource Service Rates Department of Administrative Services Mark Rasmussen, EHRS Administrator

2.  Overview  Current State – assessment- rates  Future Direction - full-cost recovery model  Intermediate Steps  Agency Feedback  DAS Decision Points  Next Steps

3.  HB 5002 (2009 budget note) directed DAS to examine its organizational and funding structures  June 2010 – HB 5002 workgroup issued a report recommending adoption of an entrepreneurial management model ◦ Separation of policy and service functions ◦ Separation of assessments for policy functions and; rates for service functions  Enterprise HR Services – composed of HR Management and Consultation staff and DAS Employee Services staff. This Division will also deliver statewide HR systems including PPDB, iLearn and eRecruit  A customer board will be established to maintain our commitment to provide you with the services you need, at a service level you help define.

5.  Client-agency services are mostly paid for by DAS assessment of all agencies  Rate set at $18.00 per FTE per month (67-70% of cost picked up by DAS assessment)  Small agency of four (4) staff pay $1728 per biennium  Value and services received ◦ Personnel policy interpretation and application ◦ Recruiting to fill vacancies, appointments, & orientation ◦ Assisting with performance management, discipline/dismissal, grievances and complaints ◦ Writing position descriptions and classifying positions ◦ Administer collective bargaining agreements ◦ Responding to HR audits, BOLI complaints, Tort and Unemployment claims ◦ Prepare biennial Affirmative Action Plan ◦ Personnel actions and personnel file maintenance

6.  Full cost for 2013-2015 would be $99 per employee per month  Using the same example of a four (4) staff the cost would be $9,504 for the biennium  Value and services you will receive: ◦ Everything that $18 bought, plus…  Family and Medical/Workers’ Compensation leave administration  Safety assessments, planning and OSHA compliance  Ergonomic assessments  Supervisory/Management training  Professional workplace training for staff  Representation in collective bargaining  Obtaining legal advice on contested employment actions

7.  Provide human resource functions every agency needs to perform but allows the agency to focus on their core business  Support every state executive needs  Comparable or less expensive than open-market human resource service providers ◦ HR Answers (retainer plus $105-$225/hr) ◦ Cascade Employers Association - $5k per month, full- time accessibility with additional charges ◦ RUSH Human Resources – monthly retainer plus $125- $185 per hour for actual “project” work performed  Our structure is need-driven versus hourly

8. ◦ Pays for over 10 FTE/$2,616,188 (4.5 Client Agency HR Managers, HR Assistant, Safety Manager, plus PT services from 3 Recruiters, 1 Classification Specialist, and 1 Training Specialist) ◦ Expected total program cost of $3,078,990 (includes + DAS overhead, and services such as legal) ◦ Serves over 1300 employees in 18 state agencies ◦ Resulting cost per employee per month is $99

9.  Move incrementally to full-cost recovery in next several biennia  Reduce full-cost rate through improved efficiencies and economies of scale  Your direct costs may become incorporated in the rates you charge customers  The question: What is the first step?

10.  Signaled $36 per employee (+/- 1% of your budget)  Is it doable?  If not, what would be?  What, if any, services would you choose to do without?  Survey – any quick hits or comments? ◦ Research the ideas generated? ◦ Follow up with group?

11.  Sending out after this meeting, essentially asking:  Is your agency able and are you willing to absorb an increased rate from $18 to $36?  If not, what rate would you be willing and able to absorb?  What services or support would you be willing to forgo in order to have a lower rate?  What would you do if the rates are set at a level you are not able/willing to pay?

12.  Determine 2013-2015 rate taking your feedback into consideration.  Identify how many of you can and will remain customers. And, how does that impact our rates?  Identify services/costs could we eliminate to curtail to reduce rates, if necessary.

13. Questions? Thank you for your time.