Board of Directors – August 16, 2012 Open Agenda Item 4 – Personnel Matters Personnel Matters a.Workforce Update b.Capacity Planning c.Training and Development.

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters

Personnel Mattersa. Workforce Update

b. Capacity Planning

c. Training and Development Initiatives

d. Leave Balance and Usage

Board of Directors – Open Agenda Item 4

August 16, 2012

Andreas Acker, Sr. Vice President & Chief Administrative Officer

Dan Sevilla, Chief Financial Officer

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

Workforce Update

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

Capacity Planning

Benchmarking• Updated annual benchmarking compared to AASCIF

companies and other workers’ compensation carriers• AASCIF companies are much smaller with premiums of about

$250M• Projected State Fund 2012 staffing based on our 2012 GPW

and AASCIF staffing benchmark• Adjusted AASCIF staffing benchmark for complexity of CA WC

and our State & Special Contracts work• Analysis indicates we have approximately 1,100 FTEs

available for future growth (32%)

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

Capacity Planning

Capacity planning• We have numerous opportunities to improve productivity and

expect our future productivity to exceed AASCIF benchmarks

• Productivity improvements enable transition of excess staff to Talent Retention Program for cross-training and redeployment to support future growth

• With 10% improvement in productivity, our 2012 staffing is sufficient for twice our 2012 premium volumes

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

We have 1,100 excess FTEs available for future growth

2012 staffing compared to AASCIF benchmark

1,600

3,400

4,5001,800

800

300

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Total FTEsbased on

AASCIF GPWbenchmark

Adjustment forCA WC

complexity,State & Special

Contracts

Adjustedbenchmark

FTEs

Excess FTEsavailable for

future growth

EnterpriseForecast 2012Ending FTEs

FTEs in Talent Retention Program

Excess FTEs in core

programs

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

2012 staffing is enough for almost twice current volumes

FTEs based on 2 times 2012 volumes with 10% improvement

2,880

4,400 4,500

1,520

100

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Total FTEsbased on

AASCIF GPWbenchmark

Adjustment forCA WC

complexity,State & Special

Contracts

Adjustedbenchmark

FTEs

Excess FTEsavailable for

future growth

EnterpriseForecast 2012Ending FTEs

FTEs in Talent Retention Program

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

Training and Development Initiatives

Talent Retention Program (TRP) and Learning and

Development (L&D) are working with Business

units to determine near and far term needs• Type and location of staff needs

– Which job functions

– Align work with staff locations (utilize existing staff as much possible)

– Determine recruitment and exam needs

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

Training and Development Initiatives

TRP and L&D already working on developing the existing staff in TRP. • Assessment of staffs current and past

skills/experiences/capabilities• Prepare staff for Business’s future needs

– Training• Near term, needed to perform current assignment• Taking advantage of local training (cross training)• Directly tied to building capacity

– Additional job experience• Process is continuous as new staff join or business needs

change

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

Historical Summary

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

640 hour Cap SummaryAs of June 30, 2012

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

Appendix

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

Workforce UpdateState Fund Staffing Summary Report

As of June 30, 2012

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

Employee Leave Balance and UsageAs of July 30, 2012

Board of Directors – August 16, 2012Open Agenda Item 4 – Personnel Matters State Compensation Insurance Fund

The table below lists the monthly Annual Leave and Sick Leave/Vacation accrual rates for a full-time employee in Bargaining Units 1, 2, 4, 10, 12, 13, 14, 15 and 17:

 Length of Service  Annual Leave  Vacation + Sick Leave (8 hours)

 1 month to 3 years  11 hours  15 hours (  7 hours + 8 hours)

 37 months to 10 years  14 hours  18 hours (10 hours + 8 hours)

 121 months to 15 years  16 hours  20 hours (12 hours + 8 hours)

 181 months to 20 years  17 hours  21 hours (13 hours + 8 hours)

 241 months and over  18 hours  22 hours (14 hours + 8 hours)

The table below lists monthly Annual Leave and Sick Leave/Vacation accrual rates for a full-time employee designated supervisory, managerial or confidential or other excluded employees:

 Length of Service  Annual Leave   Vacation + Sick Leave (8 hours)

 1 month to 3 years  15 hours  15 hours  (  7 hours + 8 hours)

 37 months to 10 years  15 hours  19 hours  (11 hours + 8 hours)

 121 months to 15 years  17 hours  21 hours  (13 hours + 8 hours)

 181 months to 20 years  18 hours  22 hours  (14 hours + 8 hours)

 241 months to 25 years  19 hours  23 hours  (15 hours + 8 hours)

 301 months and over  20 hours  24 hours  (16 hours + 8 hours)