Forging Ahead:
California HR Professionals Ready to Modernize

Dave Gilb, the director of California’s Department of Personnel Administration (DPA), has been thinking about numbers lately. Number one: California ranks number-eight in the world as a gross product manufacturer according to July 2007 data from the World Bank’s world development indicator database and the U.S. Bureau of Economic Analysis.

Number two: roughly 215,000 state employees help support the infrastructure of that global powerhouse. They repaired about 500 lane miles of highway pavement during the first quarter of 2006 so that California workers could get to their jobs. They maintained 1.3 million acres of state parks so that California workers could have the opportunity to relax. They fought a wildfire in October 2007 that burned roughly 90,440 acres in southern California.

Number three: DPA estimates that 35 percent of California state employees – between 75,000 and 80,000 people – will be eligible to retire within the next five years. DPA also estimates that it can take up to three years to get a job in state service.

For Gilb and the other state human resource professionals, including the California State Personnel Board (SPB), these numbers don’t add up. Gilb said, “If the State of California was a private-sector company, we’d be in the top tier of the Fortune 500 in terms of the number of employees.” He continued, “We’re competing for many jobs in the global economy, and in order to keep on competing in that marketplace, we needed a strategy to attract and retain top-notch people for state service.”

The Governor’s Office established a task force to examine the reformation of the State’s human resource management system. The resulting California State Human Resources Modernization recommendations were presented to the Governor in March 2007, and the work to execute some of those recommendations began shortly thereafter.

Briefly, the underlying basis for the six goals of the project is a move from a “duties-based” system into a “competencies-based” system. Specific steps include:

1. Simplifying the classification system
2. Compensating based on market conditions, individual self-development and business needs
3. Creating an attractive recruitment and expeditious hiring process
4. Tying HR systems to business needs through strategic and workforce planning
5. Improving and fostering a high-performance culture
6. Creating an integrated enterprise HR solution

Gilb provided a couple of examples. Currently, there are about 30 different classifications for attorneys in state service. “You’re an attorney,” Gilb said, “and you want to work for the State. You shouldn’t have to apply 30 times.” Under the new competency-based system an applicant’s background and skills could be matched for several different occupational groups rather than a single budget-allocated position.

The compensation structure is another area slated for change. Gilb called this added compensation for added value to an agency or department. He gave an example of a state scientist who was published in a scientific journal or trade publication. “We have some of the most expert scientists around, who are acknowledged leaders in their fields,” he said. With the current pay structure, there is no room for additional compensation, but it’s a possibility under a new competency-based system. “A program that encourages continued growth and development through a continuing education incentive is another example,” Gilb continued. “Perhaps additional compensation for three years is warranted following certification. Maintaining the certification would continue the increase.” Gilb thinks there are numerous feasible compensation scenarios.

Gilb admitted that there is a lot of work to be done before the plan is fully implemented. As an HR professional he knows that change is always difficult. “HR, management, labor unions and the different agencies must partner in order for the project to succeed,” he said. However, Gilb pointed to the already-successful collaboration with the California Department of Finance in backing of the HR modernization project. “They have been extraordinarily supportive – pushing for new ideas and providing funds,” he stated. “This support shows that the State recognizes the place its employees play in California’s overall success and is constantly striving to improve its status as an employer of choice.”

Gilb summed up, “In the final analysis we need good people, reasonably compensated and motivated, to provide the quality services the public expects from its government.”

To view a synopsis of the HR Modernization project, The Right People in the Right Jobs, visit www.dpa.ca.gov/hr-mod/main.htm.

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