Human resource

HUMAN RESOURCES

2014 - 2015Accomplishments

Bob Turner, Chief HR O�cer

Maggie Martinez, HR Business SupportSarah Viloria-Diaz, Dir Total RewardsRoberto Blaine, Dir Talent AcquisitionDiana Hernandez ,Dir Learning and Career ServicesLance Maclean, Dir Facilities Services

• HR Business Support Dir, Maggie Martinez, HR Business Support• Total Rewards Dir, Sarah Viloria Diaz• Dir Talent Acquisition, Roberto Blaine• Learning and Career Services Diana Hernandez• Dir Facilities Services, Lance Maclean

Appendix

Strategic Priorities

• Clear lines of accountability that simplify processes and drive efficiency and excellence.

• Recognized leader in improving health outcomes for low income and vulnerable populations.

• Tailored models of care for the specific needs of our member populations

• A network that aligns reimbursement with member risk and provider performance

HR Aspiration/Vision Statement“HR is one of the two departments within an organization that has true corporate-wide responsibilities to ensure the success of the organization; as such we have to be the point of the spear in managing change and enduring a culture of excellence throughout.”

Human Resources Accomplishments

Bob Turner, Chief Human Resources O�cer

Goals % Value

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Measurement

Manage TemporaryAgencies/StandardizeProcess

Align all departmentaland unit incentive plansto a goal-based, corporate goal driven program

Reduce totalexpenditures fortemporary employeeexpense

Reduce the number of temporaryagencies by 25%.

METReduced number of temp agencies from 39 to 28 (28%reduction)

METJanuary 5, 2015

METApril 6, 2015

METHRIS Implementation of Goal Management scheduled for Oct 2015

Convert all temporary agencies tosingle LAC contract.

Implement vendor managementsoftware program.

Identify all internal departmentalincentive plans and compare toentity-wide “thank you” bonus.

Rewrite incentive plans to reflectSMART structure to reflect businessgoals.

Increase average payout ofincentives to 3.0 % or more.

Reduce the total temporaryexpense by $1M.

METAs of 9/09/15 projected savings of $3M on temporary staffexpenses for the 2014-2015 fiscal year. Following initiativesled to those savings:1. Bill rate for all temp staff standardized to 45% on 01/01/15.2. Conversions of temporary staff to FTE3. Reduction of rate for temporary staff at 520+h from 45% to 35%4. Temp staff overtime reductions5. Established L.A. Care internal temp status6. Filled open positions staffed by temps

Reduce the total temporaryexpense by $1.5M.

Reduce the total temporaryexpense by $2.0.

Progress/Status

25%

50%

HR Business SupportAccomplishments Why Significant to LA CARE?

Development of HR Business Support department utilizing the HR BusinessPartner model.

The HR Business Partner is a strategic support to department leadership and managementon a variety of issues

Designed and streamlined efficient record keeping and filing for personnel files.

Documents within each record are easier to find; records kept by type and in chronological order; will facilitate transfer to electronic documents

Launched New Employee Orientation program. Promotes engagement of new hires and will contribute to improving retention and reducing turnover

Re-engineered Exit Interview process.A formal separation interview offers greatercustomer service to employee; promotes emphasis on service to our internal customer

Implemented Communication and Leadership training programs by partnering with ToastMasters International.

Created a new venue and opportunity for employee development and peer engagement across the organization

Launched new Employee Engagement and Performance Management programs.

The new approach and related change in nomenclature shifts the process from being punitive to one that is proactive and positive

Launched Employee Engagement efforts to assess, trend and respond to employee needs.

Implemented in departments as needed to obtain more meaningful data to respond to employee and management concerns. Also an engagement and retention effort

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Goals %Value

40%

METPresentation to leadership group completed on April 2015

MET8/24/15 MM: The program was piloted;the program is designed in such a waythat the design will always be in flux.

IN PROGRESS8/24/15: A draft of the manager'sprogram can be presented by 8/31/15

METImplemented by July 2015

8/24/15 MM: Philosophy statement never got off the ground the way it was intended. Can this part be removed from the measurement?

Measurement

Develop two comprehensiveorientation programs for new hires

Define an onboarding philosophy statement to inform and guide the design of the orientation programs by March 30,2015.

Present skeleton outlines of the orientation programs forreview and approval by the Leadership Group by May 8, 2015

Flesh out each aspect of the orientation (organizational history and business line overview, key employee policiesand procedures) by July 2015

Pilot program and submit feedback and final design toLeadership Group for approval by August 1, 2015.

Design and submit a complementary component to address on-boarding for managers for Leadership Group approval by August 31, 2015.

Progress/Status

Maximum

Target

ThresholdPending next steps on job descriptionproject from Sarah.

NOT METCohort will start in September 2015 andwill be completed in December 2015.

Pending next steps on job descriptionproject from Sarah.

METAcademy will start in September 2015

Identify basic management competencies for L.A. Care andpresent the competencies list for approval by the LeadershipGroup.

Design a new Management Training Academy to train managers across the organization in order to bring their management competencies to the defined organizationalstandard.

Take one cohort through the Management Academy bySeptember 30, 2015.

Identify management competencies for senior management (directors and above) and present the list for approval by theLeadership Group by September 1, 2015.

Goals %Value

Measurement Progress/Status

35%

In collaboration with TotalRewards and Learning and Career Development, con-duct a comprehen-sive review ofexisting job descriptions and to define specific job competencies for each role.

Accomplishments

HR Business Support Continued…Why Significant to LA CARE?

Rolled out California State mandated training (AB25, Harassment-Free).

In compliance with state law; new trainingplatform was very well received across theorganization; kudos from all levels not just oncontent but on delivery.

Total Rewards

Transitioned the terminated defined benefitretirement plan (2@62) to the definedcontribution plan. Coordinated the SocialSecurity referendum. Implemented aSupplemental Executive Retirement Plan foreligible employees.

L.A. Care has not participated in SocialSecurity since 2002. Returning to SocialSecurity o�ers employees of L.A. Care astable retirement income vehicle.

Accomplishments Why Significant to LA CARE?


Transitioned the terminated definedbenefit retirement plan (2@62)to thedefined contribution plan. Coordinated theSocial Security referendum. Implemented aSupplemental Executive Retirement Planfor eligible employees.

Employees will still have the voluntary 457(b) with brokerage arm to maximize their retirement portfolio. All employees who elected on February 2, 2015 to participate in Social Security will contribute to Social Security e�ective October 5, 2015. All employees hired from 2/3/15 and after, will contribute to SocialSecurity e�ective October 5, 2015.

Audited and updated the existing positioncontrol system.

A new Supplemental Executive Retirement Plan will be o�ered to newly eligible participants who are not part of the existing Cash Balance Plan for executives.

The position control system assigns a unique number to each position so we have accurate number of approved positions. Position control numbers cannot be duplicated or used for multiple hires. We work with Accounting/Budgeting and the Sta�ng Committee for any new or repurposed position requests.

Total Rewards

Accomplishments

Total Rewards

Why Significant to LA CARE?

Conducted market view to align wagerates and salary ranges to position L.A.Care to be market competitive.

We conducted the market adjustment to ensure market competitiveness for positions in the organization whose salaries have fallen below where the market is for similarpositions held by individuals with the same years of experi-ence and performance expectations. The market adjustmentensures that current employees are compensated appropriate-ly and new hires can be o�ered market competitive salaries.

E�ective date of salary changes was September 7, 2015. The new salary will be used to calculate the annual merit increas-es for FY1415.Employees will still have the voluntary 457(b) with brokerage arm to maximize their retirement portfolio. All employees who elected on February 2, 2015 to participate in Social Security will contribute to Social Security e�ectiveOctober 5, 2015. All employees hired from2/3/15 and after will contribute to SocialSecurity e�ective October 5, 2015.

Accomplishments

Total Rewards


Increased minimum wage rate to $15.00per hour.

Increased minimum wage rate to $15.00per hour.

E�ective May 4, 2015, we implemented a $15 mini-mum wage rate, more than four years before the City of LA’s recent action to do the same will take e�ect in July 1, 2020. This new base pay recognizes thecontributions of employees at all levels and have a positive impact on retention of sta� and recruitment e�ort.

E�ective June 1, 2015, newly hired employees, includ-ing trainees, will be eligible for applicable L.A. Care benefits, including health insurance, beginning thefirst month following the month of employment. This change enables employees to start their benefits up to a month earlier, and enables new hires/newlyeligible employees to have health care coverage sooner. This is a great recruitment tool.

Accomplishments

Total Rewards


Designed HR Total Rewards internalprocedures manual

Deployed ACA look back process. Implemented paid sick leave as mandated by AB1522.

The Total Rewards team members documented their tasks and responsibilities, and have been compiledinto an internal procedures manual, to be used as reference by the team. The manual will be reviewed and updated on a regular basis.

E�ective January 1, 2014 (our first benefit eligible were e�ective June 1, 2015), per ACA, employers are required to o�er minimal health insurance tovariable hour employees who have worked the equiv-alent of full-time status over the initial and stability periods. This benefit is for those who are not eligiblefor our group medical insurance. We o�er employee and/or children (no spouse) coverage under Kaiser HMO if in California or Blue Shield PPO if residingoutside California.

Accomplishments

Total Rewards


Deployed ACA look back process.Implemented paid sick leave asmandated by AB1522.

As required by the State of California, e�ective 7/1/15, employers needed to implement a change in policy that outlines the eligibility, accrual andpayment of sick leave hours for irregularly sched-uled/non-full-timemployees (those who are not eligible for PTO benefits). Sick leave enablesemployees to take time from work for the diagnosis and treatment of the employee’s own or that of a qualifying family member’s illness.

The eligible employee accrues one hour of sick time for every 30 hours worked, up to 48 hours or six days accrual per year. The eligible employee may use up to 24 hours or three days of paid sick leave in each year of employment.

Accomplishments

Total RewardsWhy Significant to LA CARE?

Implemented new HRIS system. L.A. Care requires an e�cient and scalable Human Resource Information System (HRIS) that replaces current antiquated applications, and addresses the operational and financial risk associated with its rapid growth. This new system will promote opera-tional excellence in supporting L.A. Care sta� and its members. Following the L.A. Care RFP process and thoroughly vetting selected proposals, L.A. Care chose SAP Success factors and Benefit focus as theproducts to replace the existing Epicor system and address the HRIS requirements. KPIT was contracted to perform systems integration.

By end of 2015, Incentive Goal Management, Benefit Management, Onboarding, Time and Labor, and Employee Central will be rolled into production. In 2016, Recruiting Management & Marketing, LearningManagement, Performance Management, Succession Planning, and Career Development Planning are scheduled for

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Goals % Value Measurement Progress/Status

Fully implement a new HRIS on coreHR module and the performancemanagement function on schedule byDecember 2015.

Benefits Focus: September 2015

Time and Attendance: November2015

Employee Central/Onboarding:November 2015

Goal Management: October 2015

METRFPs sent 12/08/14Demostrations completed 2/20/15Vendor chosen and approved 3/13/15

ON TRACK TO MEETScheduled for October 2015

ON TRACK TO MEETScheduled for October 2015

NOT METWork in progress: September 2015Policies redlined and processed

ON TRACK TO MEETScheduled for September 2015

ON TRACK TO MEETScheduled for September 2015

Reviewed and updated the hiring and promotionalguidelines and update relevant HR policies by February 2015

Met threshold goals plus by April 2015 reviewed allemployee files to gather pertinent information necessary to make recommendations for possible salary changes;requested approval for salary changes; requestedbudget approval

Met threshold and target goals plus implemented salarychanges, informed affected employees of changes, updated HRIS on changes by December 2015.

RFPs sent to potential vendors; demonstrations completed by February 28, 2015, vendor chosen and approved by March 31, 2015products to replace the existing Epicor system and address the HRIS requirements. KPIT was contracted to perform systems integration.

Met threshold goals plus design stage completed; core HR module and the performance management function are implemented by December 31, 2015.

Met threshold goals plus design stage completed; core HR module and the performance management function are implemented by October 30, 2015

Talent AcquisitionAccomplishments Why Significant to LA CARE?

Implemented a vendor managementsystem to control temporary laborexpenses resulting in 4M in XX period of time.

Need Feedback from HRB Dept. Head

Established a Talent AcquisitionStrategic Plan and created theRecruitment Review team.

Redesigned employee transfer process.

Developed and implemented “servicelevelagreement” for Recruiters andHiring Managers.Implemented Hiring Excellence trainingfor Recruiters.

Improved time to hire metrics from 40days to 38.8 days.

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Talent Acquisition

Roll out scheduled for end of September 2015

NOT META focus group with Hiring Managers completed June2015. Implemented in July (in a modified version,without the penalty, pending LT approval).

Implement Service LevelAgreement Form/Process -Gaining Agreement andunderstanding ofrecruitment process

Approved Service Level Agreement FormCompleted and Autofill capabilities active by April30, 2015

PARTIALY METService Level Agreement Form was completed by April30 (without autofill capabilities) and it was completedagain with Roberto's revisions and with Bob's sign-offin May.

Propose approved SLA to Leadership for buy-inand confirmation. Begin discussions with Department heads. Roll out approved SLA Process to 15 Departments (Accounting , Appeals & Grievances, HR, BH, BPI, Claims, Clinical Assurance, Commercial & Group Plan Operations,Communications, Community Benefit Programs,Community Outreach and Engagement, Credentialing, Cultural & Linguistics, PNO and PMO) by May 30, 2015.

Complete Roll out of approved SLA Process to theremaining 38 Departments


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Reduce Total Expendituresfor temporary employeeexpense

Reduce the average timeto fill for positions in Pay Grade A-M

Reduce the total temporary expense by $1M

METAs of 9/09/15 projected savings of $3M for the 2014-2015 fiscal year. Following initiatives led to savings

1. Bill rate for all temp staff standardized to 45% on 01/01/15.

3. Reduction of rate for temporary staff at 520+h from 45% to 35%

5. Established L.A. Care internal temp status

6. Filled open positions staffed by temps

4. Temp staff overtime reductions

2. Conversions of temporary staff to FTE

METAverage Time to Fill as of 8/17/15 is 38.62 days





Reduce the average time to fill from 60 days to 45days

Reduce the average time to fill to 40 days

Reduce the average time to fill to 35 days

Talent AcquisitionGoals %

Value Measurement Progress/Status

Accomplishments

Learning and Career Services


Implemented new Telecommuting program.

Launched Incentive Goal process. Restructured Incentive Goals25 monthly incentives of which 16 had metrics that were not aligned to organization strategy or monitored. Removed incen-tive policies that were no longer applicable saving the organiza-tion dollars.

Updated policies to ensure attendance as a metric was removed as it conflicted with organization attendance policy and labor law policies reducing liability forL.A. careAnnual incentive goals were restructured through HRIS goal management module to include SMART goals, cascading andalignment with org strategic priorities.

There was no oversight or monitoring of telecommuters and telecommuter management system (SONAR). We nowhave a process to track and approve telecommuters, are vetting a new systemto replace SONAR as the existing system was not used or compatible with our ITsystems. We saved the organization money on licenses we were paying for and not used.



Revamped Education Reimbursementprogram.

Eliminated 12 hours of redundant elearningcontent saving the organization$21,500 per year.

Implemented single sign-on for LearningManagement System (LMS).

Initiated Training Commission tostreamline training strategies.

Implemented school partnerships tofurther L.A. Care’s internship program.

Allows sta� to focus on critical compliance trainings

Savings on licenses and production costs

First cloud based integration for L.A. Carewith an external vendor

Integrated monitoring system to track degrees obtained and align with recruitment and training needs

Leading training commission for Public health Plans to create alignment in training initiatives around Cal MediConnect and employee development

Call Center Health Careers Customer Service Rep Certification – customized training to support call center recruitment. Partner-ships with workforce entities, la chamber of commerce and CBO’s to provide training opportunities to the community


Revamped Education Reimbursementprogram.

Immigration Sponsorship Management-H1B

Mt. St Mary’s Care Management BSN Program-Customized curriculum to build nursepipelines

RN preceptor- build employee engagementand leadership development. Developed nursenew ire training program.

Created a streamlined more e�cientprocess to



METCompleted in June 2015

NOT MET

Production IncentivesRevisions- identify andrevise productionincentive policy metricsfor high turnoverpositions.

Consolidate and analyze allproduction incentive policies to assessfor inconsistencies, payout disparitiesand identify high turnover positionsby March 30, 2015.

Review and revise productionincentives for high turnover positionsto align metrics with department andstrategic organization goals by August 2015.Review and revise 25% of allproduction incentives to ensuremetric alignment with JDcompetencies and department andorganization goals

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METAll incentive policies were reviewed and inconsistencies communicated torespective departments for revisions. Did not receive all revisions back as they are dependent on updates to job descriptions, or delayed by organiza-tion restructures. Proposing movement of incentive goals to one annual incen-tive goal with the exception of a few production driven departments.

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In collaboration with Total Rewards and Business Support Services,conduct a comprehensive review of existing job descriptions and conductcompetency mapping for positions

In collaboration with TalentAcquisition, review and revisecurrent Telecommuting policy tointegrate a robust managementsystem for remote employeepopulation.

Initiate the procurement process for a comprehensivereview of job descriptions across the organization by May2015.

NOT METTotal rewards in process of jobcancellation. Pending Sarah'supdate.

NOT METDependent on Sarah's jobdescription progress. Waiting onupdate

MET

METPolicy and procedure wasupdated. Phase II pilot went liveJune 16, 2015.

METPolicy and procedure wasupdated. Phase II pilot went liveJune 16, 2015.

METPilot went live on June 16, 2015with Claims Department.

Define Phase One job descriptions (hard to fill/highskilled) that will be reviewed and revised by August 2015.

Have processes and data in place to initiate competencymapping by September 2015.

Review and Revise current Telecommuting policy andprocedure by June 30 2015

Upgrade Medical Management telecommuting staff to newprocess and procedure by July 30, 2015.

Launch Phase II Telecommuting pilot with new businessunit by September 2015.


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METCompleted in June 2015

NOT MET

Production Incentives Revisionsidentifyand revise productionincentive policy metrics for highturnover positions.

Consolidate and analyze all production incentive policies to assess for inconsistencies, payout disparities and identify high turnover positions by March 30, 2015.

Review and revise production incentives for high turnover positions to align metrics with department and strategicorganization goals by August 2015.

Review and revise 25% of all production incentives toensure metric alignment with JD competencies anddepartment and organization goals.


METAll incentive policies were reviewed and inconsistencies communicated to respective departments for revisions. Did not receive all revisions back asthey are dependent on updates to job descriptions, or delayed by organization restructures.Proposing movement of incentivegoals to one annual incentive goal with the exception of a fewproduction driven departments

Accomplishments Facilities

Completed construction of 93,000sq./ft. of expansion space in the HQbuilding.

Completed the department restack inboth HQ and Garland building.

Installed biometric door accesscontroller on server room.

Completed over 1,000 ergonomicevaluations to reduce workplaceinjuries.

Actively managed workers' Compclaims to return employees to workthrough accommodations.

Actively managed workers' Compclaims to return employees to workthrough accommodations.

Moved approximately 900 employeesinto appropriately sized workstations

Meet compliance security requirementfor two part identification for access.

Reduced repetitive motion injuriesresulting in a reduction in cost per claim($4,691 in 2015 as compared to $28,975in 2012)

Reduced incurred losses from $665,728in 2012 to $102,741 in 2015.

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Facilities

METPhase I moves are scheduled as follows:• 3rd floor August 14• 15th floor August 21• Actual expence: $5,230,475 - 7.8% under budget

MET• 2nd floor was ready for occupancy September 11(landlord delayed delivery of the floor becausedemolition took longer than expected.) Theconstruction period was done on schedule.

METPhase I (Floor 2, 3, 15) moves are scheduled as follows:• 3rd floor August 14• 15th floor August 21• Actual expence: $5,230,475 - 7.8% under budget

Manage the expansion spaceconstruction project for the HQ building Phase I for floors 2, 3 and 15 consisting of approximately 51,587sq/ft, installation of furniture and coordinating the departmentmoves for approximately 275employees within budget($5,677,000) and on schedule.

The Phase I HQ space TI construction improvements are completed,furniture is installed and the departments are moved to the floors for firstday of occupancy September 18, 2015 and finished on the approved budget

The Phase I HQ space TI construction improvements are completed,furniture is installed and the departments are moved to the floors for firstday of occupancy September 11, 2015 and finished 1% under the approvedbudget.

The Phase I HQ space TI construction improvements are completed,furniture is installed and the departments are moved to the floors for firstday of occupancy September 4, 2015 and finished 1.5% under the approvedbudget.


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ON TRACK

ON TRACK

ON TRACKPhase II moves are scheduled as follows:

• 6th floor August 7 - completed with BPI and Configuration team moved in for Maximum.

• 20th floor October 23.• 19th floor October 16;

Manage the expansion spaceconstruction project for theHQ building Phase II forfloors 6, 19 and 20 consistingof approximately 31,166sq/ft., installation of furnitureand coordinating thedepartment moves forapproximately 200 employees within budget and on schedule.

Plan, organize and install acomprehensive way findingdirectional signage programfor all LA Care permanentfloors and install lockingdisplay cases in the elevatorlobbies for employeeannouncements and events.

The Phase II HQ space TI construction improvementsare completed, furniture is installed and the departments are moved to the floors for first day of occupancy November 9, 2015 and finished on the approved budget.

MET

MET

METOrganization, ordering and installation HQ way finding directional signage and locking display cases in all elevator lobbies was completed March 13, 2015.



Install way finding directional signage and displaycases in the HQ building to be completed by April 3,2015.

Install way finding directional signage and displaycases in the HQ building to be completed by April 3,2015.

Install way finding directional signage and displaycases in the HQ building. Realign elevator lobbydepartment signage to reflect new department floorlocations and order missing or new departmentplacards to be completed by March 20, 2015.

Facilities

THANK YOU!Questions & Answers