State of New York Office of the State Comptroller Division of Management Audit and State Financial Services

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1 State of New York Office of the State Comptroller Division of Management Audit and State Financial Services DEPARTMENT OF CIVIL SERVICE REDUCTION OF JOB TITLES REPORT 96-S-69 H. Carl McCall Comptroller

2 State of New York Office of the State Comptroller Division of Management Audit and State Financial Services Report 96-S-69 Mr. George C. Sinnott Commissioner and President of the Civil Service Commission Department of Civil Service State Office Campus Building #1 Albany, New York Dear Mr. Sinnott: The following is our report on Department of Civil Service officials efforts to reduce the number of job titles. This audit was done according to the State Comptroller's authority as set forth in Section 1, Article V of the State Constitution and Section 8, Article 2 of the State Finance Law. We list major contributors to the report in Appendix A. February 18, 1998 In an effort to reduce the costs of printing, if you wish your name to be deleted from our mailing list or if your address has changed, contact Raymond W. Cecot at (518) or at the Office of the State Comptroller, Alfred E. Smith State Office Building, 13th Floor, Albany, NY

3 Executive Summary Department Of Civil Service Reduction Of Job Titles Scope of Audit The New York State government workforce, which consists of more than 228,000 people, is divided into classified service employees, who are subject to Civil Service regulations, and unclassified service employees, who are not subject to Civil Service regulations. New York State s Civil Service regulations are administered by the Department of Civil Service (Department). Job titles in the classified service are created and managed by the Department s Division of Classification and Compensation (Division). In 1989, we reported that the number of job titles in the classified service was excessive, and recommended that titles with similar duties be consolidated. In December 1995, a similar recommendation was made by a task force studying New York State s Civil Service System, and a commitment was made by Department officials to reduce the number of classified job titles by one-third (from 5,950 to 3,967) by the end of Our audit addressed the following questions about the actions taken by Department officials to reduce the number of job titles in the classified service during the period January 1, 1995 through May 31, 1997:! To what extent has the number of job titles been reduced?! Has the Department developed adequate plans for reducing the number of job titles? Audit Observations and Conclusions We found that, as of May 29, 1997, the Department had achieved 25 percent of its title reduction goal, as the number of titles in the classified service had been reduced to 5,448. However, if the Department is to achieve its title reduction goal by the end of 1999, it must significantly increase its rate of title reduction. We also found that the Department has not developed detailed plans for achieving its title reduction goal. By December 1, 1999, Department officials intend to reduce the number of job titles in the classified service from 5,950 to 3,967 (a reduction of 1,983 titles). As of May 29, 1997, the Department had reduced the number of titles to 5,448, a reduction of 502 titles. While this is a significant reduction, if the goal is to be met, the Department must achieve a further reduction of 1,481 titles between June 1, 1997 and December 1, 1999, a reduction of about 49 titles per month over the 30-month period. Since the rate of title reduction as of May 1997 averaged only 28 titles per month, this rate will have to increase significantly if the Department is to achieve its goal. (See p. 4)

4 We found that Division staff are working closely with State agency personnel officials to identify titles that can be consolidated or eliminated. We analyzed the Department s title reduction efforts and found that most of the consolidated or eliminated titles had only one authorized position. Nonetheless, as of January 2, 1997, 45 percent of all permanent classified titles still had only one authorized position. In addition, we tested the accuracy of the title reductions reported by the Department and found that the reductions are accurately reported. However, the title reduction efforts would be helped if certain improvements were made in the Department s information and reporting system. (See pp. 5-7) We examined the basis for the Department s goal of reducing the number of job titles by one-third. We were told by Division officials that this goal was established through a collective intuitive process, and the basis for the goal is not documented. We believe an analytical approach should be taken in establishing such an important goal. Otherwise, the goal is less likely to be consistent with the needs and objectives of New York State s Civil Service System. (See p. 8) Also, we found that the Department has not developed detailed plans for achieving its title reduction goal or performance indicators for measuring its progress in achieving the goal. Without such plans and performance indicators, the Department is less likely to achieve its title reduction goal. In March 1997, the Division issued a title consolidation work plan, which we consider a positive first step in developing detailed title reduction plans. (See p. 8) Comments of Department Officials Department officials generally agreed with our conclusions and indicated that they have taken action to implement our recommendations. Their comments have been considered in preparing this final report and are included, in their entirety as Appendix B.

5 Contents Introduction Reduction of Job Titles Planning To Reduce Job Titles Appendix A Background... 1 Audit Scope, Objectives and Methodology... 2 Comments of Department Officials Major Contributors to This Report Appendix B Comments of Department Officials

6 Introduction Background New York State employs more than 228,000 people. The Civil Service Law divides the State workforce into two categories: the classified service and the unclassified service. Employees in the classified service are subject to Civil Service regulations, while employees in the unclassified service are not subject to Civil Service regulations. The classified service, which totaled 170,906 employees as of April 1997, includes four classes: competitive (140,205), exempt (2,398), non-competitive (22,261) and labor (6,042). Employees in the competitive class are generally hired and promoted on the basis of competitive examinations. The unclassified service includes elected officials, legislative employees, gubernatorial appointees, members and employees of boards of elections, and teachers and administrators in the State University and other State educational institutions. New York State s Civil Service regulations are administered by the Department of Civil Service (Department). Job titles in the classified service are created and managed by the Department s Division of Classification and Compensation (Division). In our prior audit report, Department of Civil Service: Division of Classification and Compensation (Report 89-S-24), we reported that on August 31, 1988 there were 7,145 job titles in the classified service. We recommended that the Department increase efforts for consolidating job titles with similar duties to reduce their number to a more manageable level. The Department s Commissioner indicated in his response to our audit report that title consolidation and the avoidance of title proliferation is a Division objective and has been since the early 1970's. In a subsequent report, New York State s Civil Service System: A Time for Change? (Report 94-D-22), which was issued in November 1994, we noted that the number of job titles in New York s classified service was still high. In September 1995, the Governor directed his Civil Service Commissioner to head a task force for conducting a comprehensive review of New York State s Civil Service System and recommending ways to make the System more flexible and responsive to the needs of both the State and its employees. The task force included representatives from the Governor s Office of State Operations, the Division of the Budget, the Governor s Office of Employee Relations, and the Department of Civil Service. On December 1, 1995, the task force issued a report in which it discussed longstanding problems with the Civil Service System and actions that could be taken to improve the System. These actions included reducing the number of job titles in the classified service. In fact, in the report, Department officials who were members of the task force made a commitment to reduce the number of job titles by one-third by the end of 1999.

7 Audit Scope, Objectives and Methodology We audited the actions taken by Department officials to reduce the number of job titles in the State s classified service during the period January 1, 1995 through May 31, The objectives of our performance audit were to determine the extent to which the number of job titles has been reduced and to evaluate the adequacy of the Department s plans for reducing the number of job titles. To accomplish our objectives, we reviewed relevant laws and regulations, and compiled and analyzed relevant Department data. We also interviewed Department officials as well as officials at selected State agencies. We did our audit according to generally accepted government auditing standards. Such standards require that we plan and do our audit to adequately assess the Department operations included within the audit scope. Further, these standards require that we understand the Department's internal control system and compliance with those laws, rules and regulations that are relevant to the Department's operations that are included in our audit scope. An audit includes examining, on a test basis, evidence supporting transactions recorded in the accounting and operating records and applying such other auditing procedures as we consider necessary in the circumstances. An audit also includes assessing the estimates, judgments, and decisions made by management. We believe that our audit provides a reasonable basis for our findings, conclusions and recommendations. We use a risk-based approach when selecting activities to audit. This approach focuses our audit efforts on those operations identified through a preliminary survey as having the greatest probability for needing improvement. So, by design, we use our finite audit resources to identify where and how to make improvements. Thus, we devote little audit effort to reviewing operations that may be efficient or effective. As a result, we prepare our audit reports on an "exception basis." This report, therefore, highlights those areas needing improvement and does not address activities that may be functioning properly. Comments of Department Officials A draft copy of this report was provided to Department officials for their review and comment. Department officials replied that our report accurately represented their title reduction activities and the significant progress made toward the Department s goal. They also indicated that they have implemented our recommendation to establish a method for tracking title reduction activities in the individual agencies. This will enable them to issue a progress report showing the results achieved. Their comments have been considered in preparing this report and are included in the report as appropriate, and attached in their entirety as Appendix B. 2

8 Within 90 days after final release of this report, as required by Section 170 of the Executive Law, the Commissioner of the Department of Civil Service shall report to the Governor, the State Comptroller, and the leaders of the Legislature and fiscal committees, advising what steps were taken to implement the recommendations contained herein, and where recommendations were not implemented, the reasons therefor. 3

9 Reduction of Job Titles At the time of the task force s report, the Department reported that there were 5,950 permanent job titles in the classified service (not including certain titles at the Division of Military and Naval Affairs and the Division of State Police, which are not included in the Department s title reduction efforts; as well as nearly 400 temporary, seasonal and intermittent titles that are not part of the title reduction effort). The task force reported that job title reduction is essential to improving New York State s Civil Service System because the large number of titles contributes directly to difficulties in establishing job specifications, in developing timely tests, in controlling provisional appointments, and in facilitating career mobility and advancement for employees. The task force also reported that while title reduction efforts have been ongoing for many years, keeping title proliferation under control is a constant battle for the Department. Department officials are committed to reducing the number of permanent job titles by one-third from 5,950 to 3,967 (a reduction of 1,983 titles) by the end of To accomplish this goal, Department officials intend to:! regroup multiple, specialized titles into fewer, more broadly defined titles;! reduce the number of single-position titles (titles with only one authorized position);! engage the support of State agency managers in the title consolidation effort; and! carefully govern the creation of new titles. We found that, as of May 29, 1997, the number of permanent job titles had been reduced from 5,950 to 5,448, a reduction of 502 titles (25 percent of the targeted reduction of 1,983 titles). Although this is a significant accomplishment, the Department must achieve a net reduction of an additional 1,481 titles between June 1, 1997 and December 1, 1999, or about 49 titles per month over the 30-month period. Since the Department has achieved a net reduction of about 28 titles per month since the task force s report was issued, the Department will have to significantly increase its rate of title reduction if it is to achieve its goal. We note that between January 2, 1996 and January 30, 1997, 98 new permanent titles were added by the Division and 415 permanent titles were deleted by the Division, for a net reduction of 317 permanent titles. We 4

10 determined 81 percent of the 415 eliminated titles had two or fewer authorized positions, as follows: Number of Number of Titles Portion of Titles Elim- Authorized Positions Eliminated inated % % % 3 or more % As the table shows, Division officials focused their title reduction efforts on single-position titles. Nonetheless, as of January 2, 1997, 45 percent of all permanent classified job titles still had only one authorized position. In a February 12, 1996 memo to staff, the Division Director stated that open communication with other State agencies is essential if the number of job titles is to be significantly reduced. Division analysts we interviewed told us they communicate with State agency personnel directors to solicit their suggestions and gain their cooperation in job title reduction efforts, and that their relationships with State agencies are good overall. Consistent with these statements, we found correspondence in the Division s files between the Division and State agencies regarding job title actions. We also spoke with State agency personnel directors, as we visited five of the ten agencies with the highest number of unique titles (unique to a specific agency) as of January 2, 1997, as follows: 5

11 Agency Number of Unique Titles State Education Department 414 Department of Health 374 Department of Social Services 281 Department of Labor 224 Office of Parks, Recreation and Historic 142 Preservation We met with the Personnel/Human Resource directors at these five agencies and were told that the Division is actively communicating and working with them to reduce the number of job titles. Each official told us that they have a good working relationship with Division analysts and each sees benefits to be derived from reducing titles. We also examined the Division s information system relating to its title reduction efforts. We found that, while Department officials intend to take certain actions in reducing and consolidating job titles (regrouping multiple, specialized titles into fewer, more broadly defined titles; reducing the number of single-position titles; engaging the support of State agency managers in the title consolidation effort; and carefully governing the creation of new titles), the Division does not have an information and reporting system that shows its accomplishments in each of these areas. Moreover, while the Division s information system shows aggregate statewide title reduction progress on a weekly basis, the system does not show agency specific progress in reducing titles. As a result, it is difficult for Division managers to measure the extent to which additional title reduction efforts are needed. To determine whether the title reduction information reported by the Division is reliable, we compared the job titles reported by the Division in its weekly title reduction statistics against the job titles included in other Department records and the job titles included in New York State payroll records maintained by the State Comptroller. We made this comparison for records dated January 3, 1995, January 2, 1996 and January 30, We found only a few minor errors, which we shared with Division management. We therefore conclude that the title reduction information reported by the Division is reliable. 6

12 Recommendation 1. Establish an information and reporting system to monitor and demonstrate aggregate and agency specific title reduction accomplishments in each of the following targeted areas:! regrouping multiple, specialized titles into fewer, more broadly defined titles;! reducing the existing number of single-position titles;! engaging the support of State agency managers in the title consolidation effort; and,! carefully governing the creation of new titles. 7

13 Planning To Reduce Job Titles We examined the basis for the Department s goal of reducing the number of job titles by one-third. Division officials told us that this goal was established through a collective intuitive process, and there is no documentation to support how it was set. We believe an analytical approach should be taken to establishing such an important goal. Otherwise, the goal is less likely to be consistent with the needs and objectives of New York State s Civil Service System. Also, we found that the Department has not developed detailed plans for achieving its title reduction goal and has not developed performance indicators for measuring its progress in achieving this goal. Without such plans and performance indicators, the Department is less likely to achieve its title reduction goal. For example, title consolidation efforts were slowed in 1996 when many State employees were laid off. The efforts were slowed because employees are laid off on the basis of seniority rankings, but these rankings are confused when titles are consolidated. In addition, when an employee s current position is eliminated, the employee is bumped to his or her previous position. However, when titles are consolidated, the bumping patterns are disrupted. For these reasons, Department officials slowed their efforts to consolidate titles in Title reduction efforts in 1996 were further slowed by staffing reductions within the Division. While Division managers remain optimistic that the title reduction goal will be met, without a detailed plan for coping with factors such as layoffs and changes in Division staffing levels, it is not clear how the goal will be met. In March 1997, the Division Director issued a title consolidation work plan, which summarizes twelve title consolidation/reduction projects and includes time lines for each project. We believe this work plan is a positive first step toward developing a detailed plan for achieving the title reduction goal. 8

14 Recommendations 2. Document the basis for the job title reduction goal. 3. Develop a detailed plan to achieve the job title reduction goal and establish performance indicators to measure progress toward the goal. (Department officials replied that they have established a reporting system that provides information on the progress made by each agency over the first two years of the title reduction effort. This system will be used to monitor progress and establish a specific title reduction work plan for the remaining time period.) 9

15 Major Contributors to This Report William Challice David R. Hancox Carmen Maldonado Dominick Vanacore Thomas A. Nowinski Donald D. Geary Lawrence Julien Leo Shaw Brian Smith Dana Newhouse Appendix A

16 Appendix B