Arizona Department of Administration—Department Should Complete Personnel Reform Implementation and Strengthen Workforce Planning State-wide

As the State’s central human resources authority, the Arizona Department of Administration (Department) is responsible for implementing personnel reform enacted by the Legislature in 2012. Personnel reform was intended to modernize the outdated state personnel system. As of May 2015, the Department had nearly finished implementing the three key provisions of personnel reform. Specifically, the Department consolidated seven executive branch personnel systems into a new State Personnel System (System) and transitioned the majority of system employees to an at-will workforce. The Department has also largely implemented the third key personnel reform provision, to improve the State’s workforce management. However, as part of this provision, the Department needs to complete updating the classification and compensation system that encompasses the System’s job classes, pay structure, and job descriptions. Also, although not part of personnel reform, to address future workforce needs, the Department should take additional action to promote and strengthen workforce planning in the State. According to department projections, several state agencies will have one-third or more of their employees eligible for retirement by fiscal year 2019. The Department should encourage state agencies to engage in workforce planning by continuing to provide guidance and by providing training to state agencies on how to conduct workforce planning. The Department should also work with the Legislature to statutorily require state agencies to conduct workforce planning.