Government Management Committee. Deputy City Manager, Cluster A Deputy City Manager and Chief Financial Officer

Transcription

1 STAFF REPORT ACTION REQUIRED Impact of Delays in Filling Vacant Positions Date: December 3, 2013 To: From: Wards: Reference Number: Government Management Committee Deputy City Manager, Cluster A Deputy City Manager and Chief Financial Officer All P:\2013\Internal Services\treas\gm13001treas (AFS18747) SUMMARY This report responds to the Government Management Committee request for information on the impact that the delays in filling staff positions have had on divisions reporting to Committee. RECOMMENDATION The Deputy City Manager and Chief Financial Officer and the Deputy City Manager, Cluster A recommend that: 1. The Government Management Committee receive this report for information. Financial Impact There are no financial implications arising from this report. The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information. Staff report for action on Impact of Delays in Filling Vacant Positions 1

2 DECISION HISTORY At is meeting held on September 9, 2013, the Government Management Committee, in its consideration of item GM24.15: 2014 Service Level Review Government Management Committee Programs, requested the City Manager to report to Committee on the impact that the delays in filling staff positions have had on the divisions reporting to the Government Management Committee. The Committee's decisions are available at: ISSUE BACKGROUND At the Government Management Committee meeting of September 9, 2013, the Committee considered a number of presentations focusing on service levels. Presentations were made from divisions that normally report through the Government Management Committee, and include: Court Services Chief Corporate Office (including 311 Toronto; Fleet Services; Facilities Management; and Real Estate Services) Information and Technology Office of the Treasurer (including the Accounting Services; Pension, Payroll and Employee Benefits; Purchasing and Materials Management; and Revenue Services). During its consideration of this item, the Committee requested the City Manager to report to Committee on the impact that the delays in filling staff positions have had on the divisions reporting to the Government Management Committee. Table 1 below provides data on 2013 approved positions and vacancies as at September 30, 2013, for the divisions that report to the Government Management Committee. As at the end of the third quarter, the divisions are reporting operating and capital vacancies, or 15.1% of the total approved complement of 2,915.9 positions. Budgeted gapping has been part of the City's approved budget since amalgamation, with gapping rates being primarily based on historical turnover experience taking into account any legislative requirements that necessitate certain mandated staffing levels. The average approved budgeted gapping rate in 2013 for divisions reporting to Government Management Committee is 3%. As such, the net vacancy rate as at September 30, 2013 could be described as an equivalent rate of approximately 12.1% for both operating and capital. Staff report for action on Impact of Delays in Filling Vacant Positions 2

3 Division Table 1: Vacancies (Operating & Capital) for Divisions reporting to GMC as at September 30, Approved Positions Vacancies as at September 30, 2013 Operating Capital Total Less Budgeted Operating Capital Total Pos. % Pos. % Pos. % Gapping Net Vacancy Rate Court Services % % 2.3% 4.4% 311 Toronto % % % 1.9% 17.3% Fleet Services % % 3.5% 7.4% Facilities Management % % % 3.3% 7.5% Real Estate % % 3.4% 17.6% Information & Technology (I&T) Accounting Services Pension, Payroll & Employee Benefits Purchasing & Materials Mgmt % % % 3.7% 24.0% % % % 2.7% 4.2% % % % 3.1% 2.8% % % % 3.1% 10.1% Revenue Services % % 2.0% 8.2% Total 2, , % % % 3.0% 12.1% As summarized in Table 1 above, there were capital position vacancies as at September 30, 2013 or 44.5% of the approved capital complement for the divisions reporting to the Government Management Committee. The capital vacancies primarily result from delays in capital project delivery and in large part were not impacted by the hiring slow-down at the City. The capital vacancies result in under spending in the capital budgets of the divisions and this is reflected in the quarterly capital variance reports that are reported to Budget Committee. There were operating position vacancies as at September 30, 2013, which represents 11.6% of the approved operating complement for the divisions that report to the Government Management Committee. The most pressing need to fill vacancies is in Information & Technology (I&T) where there are operating position vacancies or 21.3% of I&T's approved operating complement. The net vacancy rate for all divisions reporting to Government Management Committee, taking into account the average approved budgeted gapping rate of 3%, is equivalent to approximately 8.6% for operating. COMMENTS Similar to all City divisions, the divisions reporting to Government Management Committee continually manage workload and operational requirements in a prioritized manner, ensuring that critical services continue to be provided and maintained at an acceptable service standard. Where possible, resources are redirected to front-line operations, the processing of financial transactions to maintain service standards for Staff report for action on Impact of Delays in Filling Vacant Positions 3

4 vendors, employees and other payment recipients, and to services that support operating divisions that rely on Internal Support to deliver their services to the public. These strategies are utilized to help manage workload in the short term but they are not sustainable in the longer term. The service impacts resulting from delays in filling vacant operating positions on individual divisions reporting to Government Management Committee are discussed in Appendix A of this report. As mentioned earlier in this report, capital vacancies primarily result from delays in capital project delivery and result in under spending in the capital budgets of the divisions. This is reflected in the quarterly capital variance reports that are reported to Budget Committee. At its meeting held on October 2, 2013 the Budget Committee received a report from the City Manager providing information on vacancies, including information on factors that impact and/or contribute to position vacancy rates, and actions being taken by staff to reduce the level of vacant positions (re: BU44.2 "Vacancies and Staff Actions"). Following is the link to the Budget Committee decision and staff report: Divisions reporting to the Government Management Committee are working closely with the City's Human Resources staff to streamline the recruitment process in an effort to fill positions as expeditiously as possible. By the end of 2013, operating and capital vacancy levels for the divisions reporting to Committee are projected to be down by 121 positions (to approximately 11.0% or positions). The projected net vacancy rate, after the average approved budgeted gapping rate of 3%, is 8% for operating and capital. Table 2: Projected Vacancies (Operating & Capital) at Dec. 31, Approved Positions Projected Vacancies as at December 31, 2013 Operating Capital Total Less Budgeted Net Vacancy Division Operating Capital Total Pos. % Pos. % Pos. % Gapping Rate Court Services % % 2.3% 5.1% 311 Toronto % % % 1.9% 9.6% Fleet Services % % 3.5% 2.2% Facilities Management % % % 3.3% 4.1% Real Estate % % 3.4% 11.4% Information & Technology (I&T) Accounting Services Pension, Payroll & Employee Benefits Purchasing & Materials Mgmt % % % 3.7% 19.2% % % % 2.7% 3.4% % % % 3.1% 0.8% % % % 3.1% (0.5%) Revenue Services % % 2.0% 2.7% Total 2, , % % % 3.0% 8.0% Staff report for action on Impact of Delays in Filling Vacant Positions 4

5 City Divisions will always have a certain number of vacancies at any given time. No organization (public or private) has a static employee population and every progressive organization is continually managing service level demands and operational challenges. Divisions reporting to Government Management Committee are committed to effectively managing vacancy levels in a prioritized manner ensuring that critical services are not impacted and acceptable service standards are maintained. Divisions will continue to work with Human Resources on establishing and implementing strategies and actions to manage vacancy levels and to reduce the time it takes to fill vacant positions. CONTACTS Josie Scioli, Chief Corporate Officer, Phone: , Fax; , jscioli@toronto.ca Giuliana Carbone, Treasurer, Phone: , Fax: , gcarbone@toronto.ca Rob Meikle, Chief Information Officer, Phone: , Fax: , robmeikle@toronto.ca Barry Randell, Director, Court Services, Phone: , Fax: , brandel@toronto.ca SIGNATURE Roberto Rossini Deputy City Manager and Chief Financial Officer Brenda Patterson Deputy City Manager, Cluster A ATTACHMENT Appendix A Service Impacts on Individual Divisions Resulting from Delays in Filling Operating Positions Staff report for action on Impact of Delays in Filling Vacant Positions 5

6 APPENDIX A Service Impacts on Individual Divisions Resulting from Delays in Filling Operating Positions Court Services Vacancies in this division have not impacted front line service delivery. The division is responding to a declining caseload by minimizing hiring and using salary savings to partially offset lower program revenues. 311 Toronto 311 Toronto currently uses part-time staff to offset delays in filling the permanent full time Customer Service Representatives vacancies to help meet service levels. However, during critical events such as floods and snow storms, it has been a challenge to meet service levels as there is insufficient staffing to handle the increased call volume. 311 Toronto has experienced an increase of 5-10% in call volumes each year since inception. With the inability to fill vacancies, in some cases staff are required to work overtime in order to meet the service level. Fleet Services The delay in filling mechanic/welding positions within Fleet Services has resulted in difficulties maintaining timely and effective service to client divisions. Service failures have resulted but strategies such as overtime for staff and the use of external resources have helped to mitigate service decline in the short term. However, the additional workload on existing staff will have future service impacts resulting from deferred vacation and additional earned lieu time. Maintaining an overburdened labor force has also impeded employee-training opportunities. Going forward, training in proper repair and diagnostic techniques is essential to ensure that repairs are effective and that costs and downtime are minimized. The delay in filling administrative positions within Fleet Services has increased the processing time of financial transactions. This has sometimes resulted in vendors being paid past the terms of payment on contracts. Facilities Management Vacancies in the Facilities Management Division are primarily within the Facilities Operations section. The service impacts include: Invoices are not processed in time, causing a backlog in payments to vendors. Staff are working extra hours to cover off a 24/7 operation. Customer service response times are delayed resulting in service complaints. Requests for facilities maintenance are delayed. Some maintenance services are contracted due to the lack of staff. Facilities Management is currently in the process of filling vacant positions. Staff report for action on Impact of Delays in Filling Vacant Positions 6

7 Real Estate Services Vacancies in Real Estate Services create the following service impacts: Vacant positions create competing priorities causing some work to be reprioritized and delayed. Landlord duties need to be delayed and rescheduled, e.g. re-negotiating agreements, reconciliations, and property management duties. Rate of work output is lowered as staff take on additional duties, e.g. number of appraisal assignments. Slower response times result in reduced customer service, e.g. providing information to public, councillors, and client divisions. Real Estate Services is currently in the process of filling vacancies. Information & Technology The overall delays in recruiting positions primarily impacts the delivery and support for Information & Technology (IT) business solution capital projects in progress or planned across the City. The City has a large number of City business transformation projects that require significant resources from both business and Information & Technology. These include IT business solutions used for a combination of enterprise-wide and line of business division specific service delivery requirements. To address this, the Information &Technology Division has taken a holistic and strategic Talent Management approach, partnering with Human Resources (HR) and launching a media recruitment campaign to focus on strategic recruitment solutions. In addition, the Division is continuing to implement resource planning for IT projects in partnership with business areas, enhancing IT program and project management maturity, and focusing on key opportunities for process and performance improvements. Accounting Services Accounting Services was able to maintain service levels for the most part, despite delays in filling vacancies. Responsiveness to some financial system inquiries has been slightly delayed, while requests for improvements in systems, processes and reporting, have been queued based on priority, with some deferred until Pension, Payroll and Employee Benefits The service impact resulting from delays in filling operational positions within Pension, Payroll & Employee Benefits (PPEB) has been negligible. All key priorities have been met and other corporate initiatives prioritized based on urgency. Purchasing and Materials Management Key priorities are being met, and emergent needs are being addressed for our clients across the division, however, the delay on filling vacancies generally results in: 1. Increased workload on staff Staff are prioritizing their workloads to ensure the important files are being dealt with as quickly as possible but other items will be slowed down as a result, such as not Staff report for action on Impact of Delays in Filling Vacant Positions 7

8 being able to complete as many quality assurance audits of Divisional Purchase Orders or use of Rosters by Divisions; processing of Contract Amendments; preparing, reviewing and analyzing statistical reports; reconciliation processes related to budget and HR are done on a quarterly basis instead of monthly; slower review of call documents prior to issuance; slower review and approval of specifications for call documents; and slower progress on major projects. Purchasing and Materials Management (PMMD) has a target, based on industry standards, that on average each buyer would be responsible for 30 calls over the calendar year. However, PMMD statistics historically have reflected the average based on a full complement of buyers. If our vacancies were factored in, the average number of calls per buyer would actually increase which is more reflective of the work volume of buying staff. However, because the number of vacancies can fluctuate from month to month, the average may also fluctuate significantly. In 2012, the average number of calls per buyer was 37: 1,010 calls issued by PMMD divided by 27 filled buyer positions on average (the 2012 approved complement for buyers was 31 positions). In 2013, as of September 30, 2013, the average number of calls per buyer is 31: 778 calls issued divided 25 filled buyer positions (the 2013 approved complement for buyers was 33 positions). 2. Decreased Staff morale With increased workloads, it becomes more difficult to motivate staff to take on more work as they are already feeling quite overwhelmed and stressed by their current workload. Additionally, to meet operational requirements, there is higher probability that staff vacation will be deferred to meet operational requirements, which further reduces morale. 3. Reduced ability to work on longer term projects or to introduce innovation To help deal with the increased workload, Management works with staff on the existing transactional workload. This reduces Management's ability to focus on longer term projects or introduce innovation into PMMD's operations. This is further impacted by vacancies in other key Divisions that would assist PMMD on longer term projects, such as in IT. 4. Reduced ability to take training courses With an increased workload, staff find it more difficult to schedule training courses to ensure that they are keeping on top of new developments. Staff report for action on Impact of Delays in Filling Vacant Positions 8

9 Revenue Services While key service deliverables continue to be met, delays in filling vacancies within Revenue Services in 2012 and 2013 have had direct impacts on the division's ability to achieve divisional performance targets and to maintain customer service levels. In particular, delays in filling vacancies in the following areas result in the service impacts noted below: 1. Customer Service Call Centre: Currently up to seven (7) vacant positions within the Call Centre have direct service impacts on the Call Centre's ability to meet incoming call demand volumes, with associated impacts on average wait time on hold, call abandonment rates, and overall customer satisfaction with this service. High turnover rates in the Call Centre, together with expanded training requirements for Call Centre staff, when combined with delays in filling vacancies, will continue to impact service delivery in this area. 2. Customer Service Correspondence Unit: Up to five (5) current vacancies within the Correspondence Unit has direct impacts on the division's ability to respond to written and enquiries and correspondence in accordance with corporate service standard of 5-10 business days. 3. Property Tax Appeals and Rebate Processing: Four (4) current vacancies within the property tax appeals and tax rebate processing units directly impact the length of time that residents must wait to have appeals or rebate applications (and associated refunds or credits) processed. This has implications on the division's ability to meet legislated timelines for processing appeals and rebates, and may result in revenue implications due to interest payable on appeals/rebate refunds that are issued beyond the legislated timeframe 4. Utility Billings: Up to four (4) current vacancies in utility billing directly impact the unit's ability to investigate and respond to billing enquiries/issues in accordance with the Division's published timeframes for this service of five (5) days. Efforts are underway with Revenue Services to accelerate hiring in these key areas over the remainder of Staff report for action on Impact of Delays in Filling Vacant Positions 9