Rightsizing_in_Hr_Department

TO: Chris Sedgefield, City Manager FROM: Pat Alvarez, Director of Human Resources Department ------------------------------------------------- SUBJECT: Policy Memo on RIF Plans ------------------------------------------------- DATE: 15 September 2010 Introduction The city of Urbanopolis is entering a new era of growth and development. In order to promote growth, preserve and revitalize older areas and neighborhoods, it would require some innovative and radical measures for funding the initiatives. Why Right Size' The Right Sizing Exercise will suggest a set of recommendations and a framework that will support Urbanopolis to make consistent decisions and align with the work that is done. This foundation will allow us to continue to achieve our outcomes as Council requirements, technology and the needs of our customers constantly change. Understanding the work we do, will form basis for the suggested Reduction in force Model described herewith in the document as “Right Sizing Exercise” as opposed to “Down Sizing Exercise”. The above has been suggested to convey a message to our shareholders and citizens of Urbanopolis that this exercise is not aimed at slashing jobs and making people unemployed but to determine and maintain the right number of people required for optimum functioning and thus aiming to increase the efficiency and reputation of the HR Department. The type of work & Suggested “Reduction in Force Model” for Urbanopolis HR Dept. The work we do now and any new work in future will be mapped across the three classifications. The main assumption of the work is that we will continue to maintain our presence and continuously strive to better the standard of service and improve upon the range of services we deliver to our customers. * Transactional: This is the process and volume driven work such as processing, filing and payment information and services for our staff. * Interactional: This is the work where we need to interact with customers because their circumstances require specific assistance. For example Workforce development, Occupational health service etc. * Knowledge Based: This work is done by providing financial, technological and training support to the department. It helps us to maintain and understand the records of our clients to be more responsive to their requirements. Recommendations (RIF Plan) Formulation of Cost Heads within HR department As advised above the recommendations will focus on providing redundancy in the three classification of the HR Department. It would also be recommended to start a piece of work or project focusing upon proper demarcation and resource allocation to the above three cost heads. The main objective would be to streamline the budgetary allocation that would assist the Director to plan and forecast for future years in an effective manner. And, for this very purpose one of the Administration Assistant (classified list position) has been identified to work alongside Asst HR Director to select position within every cost head and allocate budget for the next fiscal year 2008-09. Positions Identified for Redundancy After due consideration and weighing up factors such as Experience, value (in terms of work and salary) of the position and importantly the Performance evaluation done on each employee has been determined as a measuring tool to identify positions within the department. They have been broadly classified into two categories A. Positions advised by the Central Budgetary Department(Eight in total) B. Positions identified on the basis of Performance evaluation(PE) and experience for employees.(Three in total) NB: In total 11 positions (11 employees) will not be budgeted. At the conclusion of redundancy process there will be four vacant positions advertised (already budgeted for in FY 2007-08) and offered to the suitable candidates as described below. In total 11 (six females and five males) have been made redundant. And four (two males and two females) will be re-hired. Equal opportunity considerations have been applied and have resulted in redundancy for only one person from black minority ethnic group. In term of experience seven employees have between five to ten years and one person above ten years of experience. Adequate compensation package has been suggested for each employee. Refer Appendix 6 on the Excel sheet for Calculation. A) Positions advised by the Central Budgetary Department as classified positions. Eight Classification Positions to be Eliminated (Out of eight four will be offered vacant positions as described below) As expressed in Appendix 1 the identified positions include seven Administrative Assistant roles (range 10) and one role of Secretary iii (range 9). It has been recommended to rehire four individuals out of eleven proposed for redundancy. Given below is a discussion around each individual position based upon there PE’s and years of experience. 1. Danfield, Joe: (Administrative Assistant-To be Retained via vacant position).Although his position has figured in the classification list it is recommended to retain the above employee due to the sheer knowledge and experience. He joined the department in 1990 and has reflected well in his PE’s. Besides Joe has demonstrated is eagerness to grow and is about to attain a MPA degree and has been tipped for City Manger’s Administrative Program. I would be encouraged to request Joe to apply for the vacant Risk Manager position upon completion of his graduation. We have endeavoured to budget for vacant Risk Manger position and have suggested an increase in the training budget (Refer: Budget 2007-08) in order to cross train and up skill bright candidates like Joe who can be future leaders of department. It would also provide a definite career path to our young talent. 2. Tyson, Geri: (Administrative Assistant-To be Retained via vacant position).Geri is an excellent team player and has been around with us for past 13 years. Although she held a junior position but has successfully demonstrated to take initiative and share responsibility with her Manager. Amongst the seven classified positions of Administrative assistant she has returned best PE’s consistently over the years. I would highly recommend her retention based on past performance and future potential. The best for Geri would be for a vacant HR Specialist position. 3. Parks, Hugh: (Administrative Assistant-To be Retained via vacant position). An overage employee Hugh is also one of our bright stars who joined us in 2004 and has ever since been growing strength by strength. His strength lies with numbers and has been providing statistical support on Affirmative action report and few other crucial projects. I also have eye on Hugh’s talent and have spotted him to assist Vineta (Asst Director HR) on few of the future project work that will involve Vineta and me. It would be recommended to offer Hugh with HR specialist’s role. Budget for which has already been incorporated for the FY year 2007-08. 4. Holt, Janet: (Administrative Assistant-To be Retained via vacant position). Another of our Admin assistants that I would recommend to retain would be Janet who also holds an excellent PE. Moreover she has displayed good work ethic and is highly ambitious. Besides Janet has displayed interest in training and assisted her Manager with training projects. Training is also one of my top agendas this year where I would like to see our employees obtaining cross training, specialist training and improving their information technology skills. It would be recommended to offer the role of Training specialist to Janet considering her interest and background. Budget for the above position has been accounted for in the FY year 2007-08 budget. 5. Carter Bonnie. (Administrative Assistant). Unfortunately Bonnie’s position has been scrapped on recommendation of budgetary department. Moreover PE for Bonnie does highly recommend me to let her go. Although a qualified mathematician, she does not perform to her potential and hasn’t productive at all. I would recommend redundancy to her. Moreover she is qualified with seven years of experience and Iam hopeful she would be able to manage a job at similar level in the job market. 6. Terrel Mindy: (Administrative Assistant) Terrel’s position has also not been budgeted and unfortunately she should be offered redundancy as well. Although her PE has been good but the task itself would not require someone on full time basis. Her tasks of managing team of secretaries will have to be managed by someone who is ‘first amongst the equals’ within the pool of secretaries. 7. Ellington Max: (Administrative Assistant) It would be suggested to provide redundancy to Max as again the position has not been budgeted and there have been some personality issues with Max. The PE indicates although he has superb technical skills but Max is bit weak and has proven to be an ineffective supervisor with his staff also showing little respect. As he is qualified and has five years experience behind him in the organization, he would be able to manage a job in the employment market. 8. Brock Janice: (Secretary iii) Unfortunately again the position has been taken away from management pay structure. It can also be inferred from the performance of Janice that her performance has remained constant since she joined. It would be recommended to relieve Janice off her duties due to constraint in budget. Moreover with her skills, qualification and experience it would be hard to offer a role that equates her income. It can be suggested to offer her receptionist role which will be the only best fit for her although the pay grade is much lower than what she is drawing at the moment. Besides she is the only employee from minority ethnic origin to be made redundant. B) Positions identified on the basis of Performance evaluation for employees. Refer Appendix2(Employees recommended to be offered redundancy (Three in number)- one each Consortium Coordinator, Data Entry Supervisor and Benefit Analyst) 1) Mobley Vera: (Consortium Coordinator) Sad to say but this is a fit case to be considered for redundancy. There have been adverse reports about her performance. Her bosses are on to her case and have documented her non performance. Moreover there have been several complaints by residents of Urbanopolis. Although her role is not under classification list it would be recommended to provide her redundancy to maintain the integrity and work ethic at Urbanopolis. 2) Lanford Ricky: (Data Entry Supervisor) His position also excludes classification list but there have been adverse reports of his work performance. He has 6 years experience with us and it would be recommended to provide him with redundancy to maintain work ethic within the department. 3) Jones Grayson: (Benefits Analyst). Although an effective worker Grayson only puts his minimum effort and is motivated by good supervisors. Moreover it has been ascertained that there is duplication of roles within this stream as there is another Benefits Analyst. Considering the current circumstances it would be advisable to offer redundancy to Grayson. Tackling Resistance: Report recommends some hard measures that would not go down well with some thus it has been recommended to have a strategy that will include measure to combat with any negative consequences arising out of this exercise as explained below: 1) Union Involvement: A comprehensive plan has been put in place to consult and involve employee unions from the initial stage. There will preliminary deliberations to provide an indicative percentage of cost to be reduced and talks can begin thereafter for rehabilitation of people affected by the Right sizing exercise. 2) An Appropriate compensation package needs to be discussed in accordance with the State sector regulations. This compensation will be accounted for in a separate budget and discussions will be underway with Finance/Budget Department. Redundancy package will be in accordance with employee’s experience with the organization. 3) It has been planned to organize a Question and Answer session for all the employees and we will actively work alongside all the employees to dispel any rumours or misleading information from circulation. 4) Safeguarding Company and its assets: Protecting organization’s physical and knowledge assets would be a priority. Proper check list will be prepared to ensure all physical assets are secured. Knowledge assets such as information will be protected on departure of any employee through disclosure clauses. 5) Timeline: Adequate timeline will be provided to each employee affected. Discussion with staff and union will also centre around adequate time period required to settle the person from time of announcement of the redundancy until employee gets a suitable employment/settlement elsewhere. 6) Dealing with Redundancy: A Psychological/ Career counselling service will be engaged to hold regular sessions with employees who will be affected. Career counsellor’s main role would be to mentally prepare the effected individuals into the job market and dealing with the effects of redundancy. For instance such as dealing with the guilt, embarrassment within or dealing with the family in such situations which can also have psychological effects. 7) To make the process fairer For all the eleven identified positions for redundancy. Refer Appendix 3 employees will be requested to reapply for the four positions of 1) Risk Analyst 2) HR Specialist *2 positions and (3) Training Specialist *1 position. All the eleven candidates will be interviewed but the position will be filled by the best fit of skills, qualification, experience and PE. Budget Discussion for FY (2007-2008) As per the budget department advice, recommended budget does not include the classified positions. Overall proposal is to retain/rehire four out of the eleven staff that are identified to be made redundant. Based on the skills, qualifications and experience they will be rehired into new roles with budgetary provision already been made for the four positions. There has been provision made in the budget to fill four vacant positions of HR Specialist *2, one Training Specialist and one Risk Analyst position. On other expenditure side there are measures suggested to reduce costs mainly on Telecommunications and postage. To achieve that there will be quarterly targets set for different cost heads to reduce costs on phones, faxes and postage. A campaign will be undertaken to make staff aware about the sensible usage of phones, faxes and postage for work purposes only. More usage of email communication will be encouraged and for that reason there is additional budget allocated to purchase personal computers apart from the computers been handed over by police department. Refer Appendix 4. More computers would also translate into more training which has also been provisioned in the budget. Up skilling and training will also be required for the four employees re-hired by the department. This year the budget’s main focus is on technological improvement (100% increase since last FY) and up skilling/training (53% increase since last FY) of employees thus aiming to be sharper, smarter and leaner department focussing on efficient output. Word Count: 2520 – (References 105 words) = 2415 words -------------------------------------------- [ 2 ]. http://www.cato.org/pubs/pas/pa515.pdf [ 3 ]. Source: Human Resource Department. Inland Revenue Department. New Zealand. Frontline Delivery Exercise conducted to streamline and right size smaller sites. 2009-2010 [ 4 ]. Appendix 1: Classification position to be deleted from the management pay structure. [ 5 ]. Refer Appendix 3 – RIF Plan for employee identified to be offered redundancy. [ 6 ]. Appendix 2: Employees identified for Redundancy on the basis of Performance Evaluation [ 7 ]. Appendix 6: A sample calculation of compensation package to be disbursed. Budget for the redundancy package to be discussed with Finance department. [ 8 ]. http://blogs.payscale.com/compensation/2009/07/reduction-in-force-guidelines.html [ 9 ]. http://humanresources.about.com/od/layoffsanddownsizing/f/furloughs.htm [ 10 ]. Appendix 4: Budget for new FY 2007-08 & Comparison with 2006-07 budget. [ 11 ]. Appendix 5- Graphical comparison for the FY 2006-07 & 2007-08 budget.