CASA Presentation

1. CASA Presentation June 17, 2008

2. California State GovernmentOne of the largest employers in the U.S. DAVE: Before we get into all the details of our HR Modernization plan, we�re going to talk about the State as an employer and some things that may interest you about the State�s workforce. California State Government employs more than 235,000 people. If we were in the Fortune 500, we would be in the top 20 of the largest employers in the U.S., only slightly smaller than AT&T, GM, and Verizon. We employ more people than Exxon, Boeing, Microsoft, Bank of America and FedEx. We are competing in a global economy. DAVE: Before we get into all the details of our HR Modernization plan, we�re going to talk about the State as an employer and some things that may interest you about the State�s workforce. California State Government employs more than 235,000 people. If we were in the Fortune 500, we would be in the top 20 of the largest employers in the U.S., only slightly smaller than AT&T, GM, and Verizon. We employ more people than Exxon, Boeing, Microsoft, Bank of America and FedEx. We are competing in a global economy.

3. The State�s Aging Workforce MARY: As you can see from this chart, under the 50-54 age category, we have a huge spike in the number of employees, especially our leadership. CEAs are the blue line, Managers and Supervisors are shown in pink, rank and file in yellow.MARY: As you can see from this chart, under the 50-54 age category, we have a huge spike in the number of employees, especially our leadership. CEAs are the blue line, Managers and Supervisors are shown in pink, rank and file in yellow.

4. Who�s eligible to leave in the next 5 years? 35% of our current workforce, or roughly 80,000 employees 49% of our managers and supervisors 75% of our top leadership MARY: (read slide)MARY: (read slide)

5. What does our current workforce look like? California State Employees by Generation Dave: By Generation our workforce is 13% Traditionalists, 55% Baby Boomers, 29% Gen X and 4% Gen Y. MARY: This is why workforce planning such a big deal LATELY. The first baby boomer was born January 1, 1946. In October, 2007, she applied for social security. In the next 5, 10, 15 years, we�re going to see baby boomers retiring in droves. We need to prepare now. There are less people entering the workforce than leaving, competition will be fierce. And we have to learn how to deal with these four generations in the workplace at the same time. Dave: By Generation our workforce is 13% Traditionalists, 55% Baby Boomers, 29% Gen X and 4% Gen Y. MARY: This is why workforce planning such a big deal LATELY. The first baby boomer was born January 1, 1946. In October, 2007, she applied for social security. In the next 5, 10, 15 years, we�re going to see baby boomers retiring in droves. We need to prepare now. There are less people entering the workforce than leaving, competition will be fierce. And we have to learn how to deal with these four generations in the workplace at the same time.

6. 4 Generations in the Workforce Traditionalists 62+ Baby Boomers 44-61 Generation X 26-43 Generation Y 8-25

7. Our Current HR System Too many separate job classifications Limited external recruitment Application process is confusing Hiring process is too slow and too complicated Compensation program is not reflective of the labor market and too complex to administer Performance management is not tied to business needs, nor is it consistently done No statewide workforce plan to address anticipated labor shortages DAVE: So, we�ve talked about the State as an employer in general and who we�ve got working for us. Let�s talk about our current HR system. (read slide). We have 4200 classifications! The State employs about 3000 scientists and we have over 300 classifications for them. We have around 90 classifications for auditors!!DAVE: So, we�ve talked about the State as an employer in general and who we�ve got working for us. Let�s talk about our current HR system. (read slide). We have 4200 classifications! The State employs about 3000 scientists and we have over 300 classifications for them. We have around 90 classifications for auditors!!

8. Job ApplicantRecruitment/Hiring - Today What How Timeframe 1. Identify specific class Website / contact departments Immediate � 1 month 2. Locate test (s) announced SPB or depts. website / bulletin Immediate � 12 months 3. File application to take test (s) On-line or mail application 1 � 3 hours 4. Wait for test to be given Receive letter from SPB or dept. 1 day � 6 months 5. Take test On-line / in-person 1 day 6. Test results Letter from SPB / depts. 2 - 8 weeks 7. Search for open positions SPB website / depts. announcement 1 day � 12 months 8. Apply for specific position (s) Mail or in-person to SPB / depts. 1 day 9. Hiring Interview/Bkgrd Check Departments 3 - 8 weeks 10. Job Offer Departments Immediate Total Time To Get a Position = 6 weeks to 3 years MARY � go over slideMARY � go over slide

9. Job ApplicantRecruitment/Hiring - Future MARY � Go over slideMARY � Go over slide

10. HR Modernization An Automated Integrated System MARY: HR Modernization is The Future. DPA, SPB and DOF are working together to modernize our human resource system, including classification, compensation, marketing and recruitment, testing and selection, training and performance management, workforce planning, auditing. The 21st Century Project and Fi$Cal projects will be integrated as appropriate. We anticipate rolling out the first occupational group in the summer of �09, with the remainders completed from 2010-2014.MARY: HR Modernization is The Future. DPA, SPB and DOF are working together to modernize our human resource system, including classification, compensation, marketing and recruitment, testing and selection, training and performance management, workforce planning, auditing. The 21st Century Project and Fi$Cal projects will be integrated as appropriate. We anticipate rolling out the first occupational group in the summer of �09, with the remainders completed from 2010-2014.

11. The Future On-Line Testing Competency-Based Hiring Class Structure Better Job Matches Performance Evaluations Training Workforce Planning DAVE: On-line 24 hour automated application, continuous testing, scoring and interview placement Ability to hire and assign applicants to appropriate job based on competencies Classification structure that�s flexible and nimble with a clear career path defined and measured by competencies Better job/person matches Simplified but meaningful performance evaluations Certified training opportunities for supervisors and managers to ensure a well qualified/high performance workforce Planning for the future using workforce/succession planning methodsDAVE: On-line 24 hour automated application, continuous testing, scoring and interview placement Ability to hire and assign applicants to appropriate job based on competencies Classification structure that�s flexible and nimble with a clear career path defined and measured by competencies Better job/person matches Simplified but meaningful performance evaluations Certified training opportunities for supervisors and managers to ensure a well qualified/high performance workforce Planning for the future using workforce/succession planning methods

13. Competencies HR Modernization will take us from a duty-based system to a competency-based system. DAVE: HR Modernization will take us from a duty-based system to a competency-based system. This means that we will determine competencies required for each classification, hire folks based on those competencies, pay them more when they improve their competencies, and evaluate them based on competencies. Competency-based systems are nothing new. Competency-based systems in other public jurisdictions: North Carolina State of Washington Federal agencies (GAO, DHS, DOD) More and More States are seeing the benefits of moving to this type of system: Partial implementation: Wisconsin Virginia South CarolinaDAVE: HR Modernization will take us from a duty-based system to a competency-based system. This means that we will determine competencies required for each classification, hire folks based on those competencies, pay them more when they improve their competencies, and evaluate them based on competencies. Competency-based systems are nothing new. Competency-based systems in other public jurisdictions: North Carolina State of Washington Federal agencies (GAO, DHS, DOD) More and More States are seeing the benefits of moving to this type of system: Partial implementation: Wisconsin Virginia South Carolina

14. When does HR Mod happen? Last fall we got the team in place. First occupational group model rollout will be in 2009. Final rollout 2014. MARY: (read slide) Talk about current progress, getting loaned positions to help, working on defining competencies, working with scientists, working on managers and supervisors. It takes a while to plan a project as huge as revamping the State�s HR system, but soon people will see the changes being implemented. SPB and DPA are doing a lot of things in preparation for the changes, including abolishing vacant classes, implementing a workforce planning program, consolidating SSA look alike classes. We already have a new system that they are about to rollout that will make it easier to hire the next generation of worker. They�ll have a jobs.ca.gov website that will be like a monster.com for State government. People will be able to put in their degree information and get a list of jobs that match their specialty. MARY: (read slide) Talk about current progress, getting loaned positions to help, working on defining competencies, working with scientists, working on managers and supervisors. It takes a while to plan a project as huge as revamping the State�s HR system, but soon people will see the changes being implemented. SPB and DPA are doing a lot of things in preparation for the changes, including abolishing vacant classes, implementing a workforce planning program, consolidating SSA look alike classes. We already have a new system that they are about to rollout that will make it easier to hire the next generation of worker. They�ll have a jobs.ca.gov website that will be like a monster.com for State government. People will be able to put in their degree information and get a list of jobs that match their specialty.

15. MaryMary

16. MaryMary

17. Questions? Dave and Mary � Good-bye!Dave and Mary � Good-bye!