1 Future HR Organization Comprehensive HR Model Current

1 Future HR Organization Comprehensive HR Model Current state assessment for State of Alaska HR scope and opportunities for growth

2 Future State HR Organization Model State of Alaska HR is currently performing work in 7 of the 19 functional areas for organizations similar in size HR Leadership Comprehensive HR Model Human Capital Strategy Organization Change Service Centers Performance Metrics and Analytics Centers of Expertise HR Function Management HRBPs Time and Payroll Talent Architecture Organization Change Human Capital Strategy (for agency) HR Systems and Reporting Workforce Optimization Sourcing, Selection, and Deployment Performance and Metrics (for agency) Workforce Services Administration Learning Performance, Talent and Leadership Talent Process Administration Total Rewards Engagement and Recognition Organization Architecture Currently Performing

3 Human Capital Strategy Comprehensive HR Model Design the human capital strategy for the organization Topic Definition Talent Strategy Define what skills and capabilities are needed by the organization to meets its business strategy, when they will be needed and where to supply future business needs. Define talent management approach needed to deliver strategies, analyze existing talent pools to determine workforce strengths and needs, and develop mitigation plan to address talent gaps. Leadership Strategy Identify the long-term leadership capabilities needed for high performance, the succession strategy to source and develop this, and a plan that aligns across culture, talent and organization components. Build and expand leadership capabilities at scale for executives and leaders at all levels. Culture Strategy Assess and define the "as is" culture and the desired "to be" culture, and create a road map to get to the "to-be" culture to align employee behavior to a specific business objective or organizational change. Organization Strategy Determine the strategy and framework for the organization model that will enable the organization to realize its strategic business objectives. Talent Development and Learning Strategy Align learning and development curriculum to the organizations vision, culture and human capital strategies. Review future workforce competency requirements and learning needs and identify gaps in current learning program mapped against existing curriculum. Define learning priorities and governance of learning programs. HR Strategy Create an HR vision and roadmap for a strategic HR function that shatters traditional boundaries to deliver business outcomes. Define and build a scalable HR operating model that is tailored to the business context and builds HR leadership capability that can effectively deliver the HR strategy. Develop an HR technology strategy that applies advances in digital technologies to deliver a differentiated employee experience. Benefit: Ability to identify high risk job classes and/or work units based on retirement projections and develop workforce plan to handle turnover, institutional knowledge loss, new tasks & skills, etc. , and assess future direction of the organization.

4 Organization Change Comprehensive HR Model Design change vision/strategy and specific communication approaches and plans for all changes affecting the organization Topic Definition Organization Transformation Envision, plan, and manage enterprise-wide organization change programs Change Management Plan and execute change management initiatives with speed and agility using predictive analytics Change Capability Build internal change capability to be increasingly agile and adaptive Benefit: Employees are more agile and resilient when change occurs. Change efforts are more likely to be implemented successfully.

5 Performance Metrics & Analytics Comprehensive HR Model Provide quantitative analysis of the business issues and advise on the realignment of performance metrics Topic Definition Performance Metrics & Analytics Strategy Define performance metrics aligned to the business strategy. Monitor, conduct multi-dimensional analysis and identify areas and factors for further predictive analysis. Use predictive analysis to indicate focus areas for specific workforces, business units, or geographies in the organization that need improvements to deliver. Benefit: Coordinated oversight to ensure transparency and ability to assess if agencies are receiving the services for which they are paying.

6 HR Function Management Comprehensive HR Model Manage and run the HR function (currently performed by State of Alaska) Topic Definition HR Governance Define the principles that will determine the governance framework for the organization, including roles and responsibilities, interaction forums and frequency, and the desired outcomes of the governance process HR Talent Provide overall planning, management, and development of resources within the HR organization Compliance Establishment of internal guidelines/processes to identify, measure, and report on applicable employment and labor regulations HR Projects Assess, plan and manage HR projects including: business case development, effort planning, identification of dependencies, monitoring of progress, managing issues and risks, and working with other HR functions to properly allocate resources HR Finance Management Provide overall administration (plan, forecast, monitor) for the budget required to run the HR functions including: Labor, technology, third party/professional services, and other categories (e. g. , training, travel) Benefit: Coordinated oversight to ensure consistency, effectiveness, and efficiency in daily operations.

7 Time & Payroll Comprehensive HR Model Collect data and process payroll (currently performed by State of Alaska) Topic Definition Time Management Collect employee time data Payroll Processing Calculate gross to net pay and conduct audit activities. Produce general ledger feed Payroll Administration Manage the process of data collection and customer service Tax Processing and Administration Managing the process of calculating and paying the appropriate tax for employees Benefit: Timely and accurate pay checks.

8 HR Systems & Reporting Comprehensive HR Model Define data architecture to maintain organization wide HR Data to support reporting and analytics (currently performed by State of Alaska) Topic Definition Data Architecture Establish the data models, standard definitions, use of data across the organization, manage data access, storage, conversion mapping, and maintain data integrity HR Reporting & Analytics Provide reporting capabilities to the organization including analytics requirements and development, and standard and adhoc reporting support and development HR Systems Business Architecture Translate business requirements into system requirements and documented in the form of Functional Designs. Develop and confirm test scenarios and related scripts. HR Application Support Manage all functional aspects of the application including security, configuration, performance, usage monitoring, addressing functional application issues. Perform system upgrades, data uploads, and execution of conversions. Benefit: Greater access to reports and data, faster turnaround times.

9 Workforce Service Administration (1/2) Comprehensive HR Model Deals with services and administrative activities that are required to maintain and sustain a workforce (currently performed by State of Alaska) Topic Definition Workforce Data Management Establish data management architecture and policies for the maintenance, storage, distribution and purging of electronic databases, workforce records, and management of standard HR reports Employee Relations Provide services to assist in prevention and resolution of workforce issues that arise out of or affect work situations; seeks to investigate allegations of misconduct and identify appropriate measures to ensure compliance Labor Relations Manage activities between labor unions or work councils and management to foster harmonious and cooperative labor management relations to promote the interests both of the enterprise and of its workforce. Includes union contract negotiations, collective bargaining, employee grievances, settling of workplace disputes under various employment-related statutes, assisting in the settlement of collective agreements, arbitration, mediations, work stoppages and strikes. Professional and Industrial Relations Manage process to validate a person's qualification to perform a job or task by verifying and monitoring the bestowment of professional and industrial designations created, sponsored, or affiliated with professional associations, trade organizations, or private vendors. Health & Safety Support the workforce with prevention, management, and measurement of occupational health and safety issues to assist in maintaining a safe and incident free workplace and drive workplace productivity Discipline Management Defines the appropriate actions to apply in response to undesired behaviors or unacceptable performance by employees and identifies appropriate measures to ensure compliance with the employer's standards and interests Grievance Management Investigate workforce concerns regarding inequitable treatment and unjust, inconsistent decision making by management that results in negative employment impacts; seeks to uncover if decision making is swayed by bias in opinions and judgments or irrelevant considerations and in taking appropriate actions to remedy negative impacts Leave Management Manage regulated or unregulated programs that provide employees extended time off for personal events by assisting employees and managers with eligibility determination, time off pay, benefits and leave expiration administration Absence Management Track unplanned and/or unscheduled absences from work and provide services to seek to identify and resolve the issues impacting presenteeism

10 Workforce Service Administration (2/2) Comprehensive HR Model Deals with services and administrative activities that are required to maintain and sustain a workforce (currently performed by State of Alaska) Topic Definition Exit Programs & Management Coordinate a series of actions required when employment ends including distribution of final pay, updating employment data and records, collecting company assets, and revoking company access and privileges in compliance with government requirements and company policies. Equal Employment Opportunity Investigate discrimination complains on the basis of protected classes such as race, color, sex, national origin, religion, age disability or genetic information. Investigations Perform workplace investigations Benefit: Achieve consistency, efficiency, and effectiveness in daily operations.

11 Talent Process Administration Comprehensive HR Model Execute and facilitate all the talent and performance management processes to ensure the activities are completed within the timelines (currently performed by State of Alaska) Topic Definition Survey Management & Job Evaluation Conduct a systematic comparison to determine the worth of one job relative to another. Talent Sourcing and Staffing Acquisition Provide administrative support for the Talent Sourcing and Staffing processes, including maintenance of sourcing channels, maintaining candidate data, initiating screenings/assessments, and creating offer letters Talent Deployment Administration Provide administrative support for the Talent Deployment processes Learning Administration Focused on getting the right people to training at the right time, including the measurement and reporting of results Performance Administration of the performance and talent processes – namely deadline management, data management, reporting and meeting facilitation Compensation Administration Manage the compensation programs and associated administrative activities Benefits and Pension Administration Manage the employee benefits / pension programs and associated administrative activities Recognition Administration Manage the employee recognition programs and associated administrative activities Talent Engagement Administration Manage employee engagement initiatives and associated administrative activities Benefit: Competent and effective workforce.

12 Talent Architecture Comprehensive HR Model Develop talent structure and processes that defines the skills and capabilities needed to deliver business strategies Topic Definition Talent Definition Define talent management approach needed to deliver strategies, analyze existing talent pools to determine workforce strengths and needs, and develop mitigation plan to address talent gaps Employee Value Proposition Establish employee value proposition that attracts, fosters, and retains the best talent in the organization, conduct periodic employee pulse and satisfaction surveys to inform and refine value proposition Inclusion & Diversity Develop I&D strategy that focuses on optimizing human capital strategies to meet business needs by creating an environment where the richness of ideas, backgrounds, and perspectives are harnessed to create high performance Employer Brand Establish employer brand to identify key employer attributes that distinguishes the company within the market HR Policies and Programs Defines and details the HR policies that affect the organization’s employees and proactively defines the actions of the organization around such policies Competency Framework Develop competency framework to define critical skills and behaviors required by the workforce to achieve effective performance Benefit: Clear core competencies for every job.

13 Workforce Optimization Comprehensive HR Model Define and practice an optimal allocation of workforce to improve the overall efficiency of employees and lead to business outcomes Topic Definition Workforce Analysis Identify business plan/strategy impacts on the workforce Strategic Workforce Planning Shape the workforce of an organization by defining the right size, structure, skill and site to execute its business strategy Operational Workforce Planning Facilitate a well-defined process to forecast workforce demand, analyze internal supply, and conduct gap analysis, periodically for better planning and analytics Workforce Productivity Ensure that the productivity levels are achieved, and workforce productivity standards are defined Benefit: Align a competent and effective workforce with business needs to optimize successful outcomes and mitigate risk.

14 Learning Comprehensive HR Model Identify workforce skill requirements to design, develop, and deliver learning programs to develop the knowledge, skills, and capabilities of the workforce (currently performed by State of Alaska) Topic Definition Learning needs assessment Assess training needs required to meet existing and future skill requirements Curriculum Design and Learning Development Plan Determine the training approach of content that best meets the workforce requirements based on desired learning outcomes, cost, schedule, and delivery considerations, including build vs. buy decisions. Create the plan to design, develop and deliver training materials, assessments, and performance support approaches. Learning Design and Development Design, develop, and source training materials and assessments Learning Delivery and Deployment Make training materials and assessments available to the targeted workforce Learning Measurement Measure the effectiveness and efficiency of the learning program and the learner results Social Learning Facilitate the connection of people to retain critical knowledge, fostering innovation, and increasing workforce effectiveness Learning and Collaboration Operations Management Manage and operate the learning and collaboration business function to support the organizations objectives Benefit: Competent and effective workforce.

15 Total Rewards Comprehensive HR Model Design and manage compensation, benefits, and pension programs to positively influence attraction, retention, and performance Topic Definition Total Rewards Design Assess organizational strategy and complete high-level design of rewards strategy and metrics to achieve organizational goals Compensation Conduct salary planning, tie compensation to the performance assessment process, and communicate the compensation structure to employees Benefits/Pension (outside scope/performed by Retirement & Benefits) Design benefits/pension programs, establish benefits vendor relationships, perform program cost/benefit analysis, and coordinate employee assistance program Well-Being Programs Design programs and strategies to enable an employee-centric workplace approach so employees can realize their full potential in their work Benefit: Reduced turnover and fewer vacancies.

16 Organization Architecture Design the organization structure, workplace environment and governance body needed to best deliver business strategies Comprehensive HR Model Topic Definition Organization & Job Design a strategy-aligned operating model and organization structure for the enterprise, business unit, or function to meet the company’s business goals Workplace Design a workplace approach to create the best working environment to enable an effective workforce Governance Establish the governance body, accountabilities, reporting structure, and decision-making process Networks and Communities Bringing people together with common interests or expertise to collaboratively work and exchange experiences and information Benefit: Working smarter by optimizing available resources.

17 Sourcing, Selections and Deployment Comprehensive HR Model Identify internal and external talent to source, select, staff, and onboard (currently performed by State of Alaska) Topic Definition Talent Networks and Sourcing Identify talent needs and sourcing channels and create/manage talent pools for active and passive sourcing Assessment and Selection Create and post job requisition, receive applications, screen candidates, and offer qualified candidates Staffing and Scheduling Align employee with talent need via scheduling or staffing Onboarding Hire qualified candidate and initiate pre-Day 1, and post-Day 1 onboarding activities and programs Mobility Initiate employee assignments and provide relocation and transfer services Benefit: Right people in the right jobs at the right time, with the right skills and knowledge.

18 Performance, Talent, & Leadership Comprehensive HR Model Direct, motivate, and develop employee performance towards the achievement of individual, team, and organizational objectives Topic Definition Objective Setting & Performance Planning Set and refresh performance goals and objectives for the organization, teams, and individuals Performance Feedback & Assessment Provide ongoing feedback and measurement of performance, as well as periodic review and rating of performance Competency Assessment and Development Planning Assess knowledge, skills, behaviors and experience against role/objectives requirements and more formal competency models, in order to create individual development plans to increase capability to perform and potential for career progression Coaching and Mentoring Providing ‘sounding board’ support to an employee to develop capabilities, facilitate career decisions and improve performance Talent Management Manage high potentials program Succession Planning Identify and maintain a succession pipeline or pool of suitable candidates for critical roles in the organization’s value chain and key leadership roles Leadership Design leadership approach, implement leadership program, and assess program effectiveness Benefit: Motivated employees, greater retention of high-performers, and alignment to agency strategic plan.

19 Engagement and Recognition Comprehensive HR Model Define, develop, and manage employee engagement and recognition programs to achieve a higher performing workforce Topic Definition Engagement Programs Design programs and strategies to enable an employee-centric workplace approach resulting in the right conditions for employees at all levels of an organization to realize their full potential in their work Recognition Programs Design programs to recognize and express appreciation of employees based on an objective recognition criteria program to help foster and maintain a culture of recognition and collaboration in the organization. Define periodic awards to recognize and celebrate individuals for performing and delivering outputs that exceed expectations in the areas of work and performance, leadership, and organizational values. Retention Programs Design programs to retain high performers by incentivizing, recognizing, and increasing visibility for showing outstanding commitment. The programs aim to keep attrition under check by improving employee engagement and commitment. Extended Workforce Programs Create extended workforce programs to manage the extended workforce, help them adapt to the organizational culture, and embrace business/project goals. It enables the right people to do the right things in an adaptable, change-ready, and responsive way. Benefit: Greater employee engagement, increased productivity, and improved retention.

20 Performance Metrics & Analytics Comprehensive HR Model Provide quantitative analysis of the business issues and advise on the realignment of performance metrics Topic Definition Performance Metrics & Analytics Strategy Define performance metrics aligned to the business strategy. Monitor, conduct multi-dimensional analysis and identify areas and factors for further predictive analysis. Use predictive analysis to indicate focus areas for specific workforces, business units, or geographies in the organization that need improvements to deliver. Benefit: Achieve transparency and ability to assess if agencies are receiving the services for which they are paying.

21 Future State HR Organization Model - Benefits HR Leadership Human Capital Strategy Organization Change Performance Metrics and Analytics HR Function Management Ability to Identify high risk job classes and/or work units based on retirement projections and develop workforce plan to handle turnover, institutional knowledge loss, new tasks & skills, etc. , and assess future direction of the organization. Employees are more agile and resilient when change occurs. Change efforts are more likely to be implemented successfully. Coordinated oversight to ensure transparency and ability to assess if agencies are receiving the services for which they are paying. Coordinated oversight to ensure consistency, effectiveness, and efficiency in daily operations. . Comprehensive HR Model Service Centers of Expertise HRBPs Time and Payroll Talent Architecture Organization Change Human Capital Strategy Timely and accurate pay checks. Clear core competencies for every job. Employees are more agile and resilient when change occurs. Change efforts are more likely to be implemented successfully. Ability to Identify high risk job classes and/or work units based on retirement projections. . . HR Systems and Reporting Workforce Optimization Sourcing, Selections and Deployment Greater access to reports and data, faster turnaround times. Align a competent and effective workforce with business needs to optimize successful outcomes and mitigate risk. Right people in the right jobs at the right time, with the right skills and knowledge. Workforce Services Administration Learning Performance, Talent and Leadership Achieve consistency, efficiency, and effectiveness in daily operations. Competent and effective workforce. Motivated employees, greater retention of high-performers, and alignment to agency strategic plan. Talent Process Administration Total Rewards Engagement and Recongnition Competent and effective workforce. Reduced turnover and fewer vacancies. Greater employee engagement, increased productivity, and improved retention. Organization Architecture Working smarter by optimizing available resources. Performance Metrics and Analytics Achieve transparency and ability to assess if agencies are receiving the services for which they are paying. Currently Performing