AGENDA #10

Friday, February 28, 2003

Department of Human Resources

Initial Budget Presentation to the Mayor and Town Council

2003-2004

I.          Mission Statement

The mission of the Department of Human Resources is to provide assistance to employees and managers for a broad variety of functions. These include recruitment and promotions, employee performance evaluations, education on diversity, equal opportunity and employee rights and responsibilities. The department also focuses on maintaining competitive pay and benefits programs and providing information effectively to employees about pay and benefits. The department guides departments in compliance with Town, State and Federal laws and regulatory requirements.

II. Brief Services Description

            The key services provided by the department are:

· Benefits administration and education  for active and retired employees

· Service awards and recognition for long-term and retiring employees

· New Employee Orientation, payroll entry, and employee records management

· Staff assistance to the new Employee Forum group (and other efforts in follow-up to the McKoy Work Environment/Diversity study)

· Guidance on selection and promotion processes

· Development and maintenance of competitive pay and benefits programs

III. Departmental Revenue Estimates:

The Department of Human Resources does not directly generate revenue.

IV.       Departmental Base Budget Cost Estimates

Budget Category	2002-2003  Original Budget	Requested 2003-2004 Budget
Personnel	461,100	459,800
Operations	95,500	111,700
Capital Equipment	0	0
TOTAL	556,600	571,500

V. Key Programs or Services that are Going Well

· The Town Classification and Pay Plan implemented in Fiscal Year 2000 will continue, with ongoing refinement of pay and benefits competitiveness in the region and adjustments aimed at assuring effective recruitment and retention of employees and maintenance of the low turnover rate the Town has achieved with the help of these programs.

· Employee Recognition Programs (service anniversary recognition, Employee Appreciation activities and related) will continue, with program evaluation and employee input invited to assure positive and constructive outcomes and programs aligned with Town goals and philosophies. The new Employee Forum group will be asked to be a part of this planning.

VI. Key programs or services that could be improved:

· In the upcoming year the Human Resources Department needs to centralize the OSHA/Workers’ Compensation/Safety programs. These programs were decentralized in 2002; this change did not achieve acceptable results. Staffing adjustments in the Human Resources Department are proposed to re-establish central administration of these programs by reallocating current resources.

· Higher visibility and active outreach by the Human Resources Department for employee benefits education is planned. These efforts will be aimed at increasing employees’ awareness levels of their current benefits and how to best use these to meet personal and family needs.  

VII.        Proposed Additions or Reductions

OSHA/ Workers’ Compensation/ Safety Programs Staffing Needs

• A significant need for centralized program management has developed in the OSHA, Workers’ Compensation and Safety functions. These programs have important regulatory and compliance requirements and while the decentralization of these functions (in Fiscal Year 2002) has achieved some progress in the Public Works Department, considerable improvement is needed in other Town operations.

Proposal for Action

Establish two positions to staff this program            1 Occupational Health and Safety Officer

and assist with other regulatory programs                1 Administrative Clerk

Need for Greater Staff Support To Respond to Federal Legislation

• Recent Federal legislation titled the Health Insurance Portability and Accountability Act (acronym is HIPAA) imposes new requirements and sanctions for maintaining privacy and documenting employer actions in the use and distribution of individual employee health information. This will increase the document processing requirements and information controls for which the Human Resources department is responsible.
• Substantial changes will be required in the benefits administration area, the employee data and records areas and in managing related programs (Family and Medical Leave, Americans with Disabilities Act and other Federal mandates relating to employee information).

Proposal:

 Increase the hours of the current Administrative Clerk from .75 to full-time to enable added duties to be assigned.  

Funding the Costs of Changes Proposed

• The actions listed here will fund the two new positions and the .25 position change necessary to effectively manage programs in the Human Resources Department. As shown on page one, total costs remain approximately equal. Funds for salary and benefits transferred to Fire and Police Departments last year to pay for fitness services will be returned to achieve funding needed.

• Reduce the current Employment Coordinator to halftime and reclassify to Human Resources Specialist at grade 33 effective July 1,2003

• Reduce the current Employee Relations and Training Officer to half-time and reclassify to Human Resources Specialist at grade 33 effective July 1, 2003.

• Substantial shifts in workload and volume over the past several years in both positions have been identified and analyzed. These changes justify the reduction of both positions to halftime without adverse effect on work results. 

Effect of Changes on Current Staff

The Employment Coordinator and the Employee Relations and Training Officer positions would be converted to 20 hours per week, with the employees’ hourly rate of pay unchanged as required by Town policy. Benefits levels for these employees would be converted to 20 hour levels as well. The hourly rates for both employees would fall above the maximum of the pay grade assigned to the work.

VIII. Recommendation for Reductions if Necessary

A 5% reduction in the original 2002- 2003 Budget for the Human Resources Department would require $27,254. The current Operations Budget totals less than $100,000, so a cut of this magnitude would require a staffing reduction.

OPTIONS

• Abolish the Employee Relations and Training Officer position.
• No centralized OSHA/Workers’ Compensation/ Safety program would be established.