The Virginia Department of Human Resource Management is the central state agency dedicated to providing a broad range of leadership, services, and guidance to the Commonwealth.

We make people out business, strive to be a recongnized leader and  trusted partner in bringing forth innovative practices to attact, develop,enage,and retain, the Commonwealth's workeforce.

EXCELLENCE:  We strive to be the best at what we do and are accountable for our own performance.

TEAMWORK:  We support each other and blend our diverse talents and backgrounds and share information and resources.

HONOR:  We model integrity, mutual respect, and fairness in everything we do.

INNOVATION:  We encourage the acquisition of new skills, thoughtful risk taking, and receptiveness to change.

CUSTOMER FOCUS:  We deliver products and services of the highest quality in a timely manner to our customers.

STEWARDSHIP:  We manage public resources responsibly.

The Department of Human Resource Management (DHRM) provides a wide variety of human resource services to state government agencies, as well as some local government entities.

Office areas within the agency include Agency Human Resource Services, Equity Diversity and inclustion, Employee Dispute Resolution, Employee Programs, Health Benefit Services, State Employee Workers' Compensation Services, Information Technology, and Contracts and Finance.

FUTURE DIRECTION (immediate, short-term, and long-term)



The Department of Human Resource Management (DHRM) has developed immediate, short-term, and long-term goals for the agency.



In the short-term, DHRM is continuing with the Workers' Compensation Settlement Program.  The agency is focusing on innovative health care initiatives, for example Value Based Insurance Design (VBID) for Diabetes, COPD/Asthma, and Hypertension, as well as increasing utilization of the on-site clinic.  



DHRM will continue to improve an effective consumer driven health plan, and as part of this, will continue to explore opportunities for new technologies, including the use of electronic medical records and improved cost and quality.

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- Adequate funding: Funding and staffing shortfalls threaten the overall quality of the Agency’s services, its ability to initiate much needed new programs, its ability to compete in the market for talent, and the timely implementation of system changes and updates.  The actual IT staffing model does not allow for adequate system support / documentation, and severely limits planning efforts and efforts for new initiatives.  Since there is not enough staff over which to spread the operational workload, cross-training of existing resources and thorough documentation of systems cannot occur.

- Quick and Accurate Response to inquiries: DHRM must be able to respond quickly and accurately to information queries from various constituents such as the Governor, the General Assembly, management, employees, the public, and the press; It needs flexible systems to be able to adapt to unplanned mandates;

- DHRM migrated PMIS and BES from the legacy UNISYS mainframe to a Windows .NET environment. This effort addressed a short-term need but it does not address DHRM’s long term need to provide a robust HR solution to Commonwealth agencies. DHRM will need additional monies starting in FY18 to pursue this long-term need.

- DHRM was given central funding to support the Commonwealth Learning Center – staffing, system hosting, software upgrades and software licensing. This replaced the previous funding model that required participating agencies to pay their share of the total cost.

- Significant increases in the DHRM's IT costs are expected due to the following:

(1) ACA (Affordable Care Act) Reporting - requires annual changes to existent systems to satisfy IRS reporting requirements - Automated systems need to be developed and/or changed, implemented and operated to satisfy this code change.

(2) LODA (Line of Duty) code change - will require DHRM to create a new health benefits program with specific eligibility and enrolment rules - Automated systems need to be developed and/or changed, implemented and operated to satisfy this code change.

(4) IT INFRASTRUCTURE TRANSITION - DHRM actual environment includes 99 desktops which 95 are fully encrypted, 70 laptops, 227 email boxes, 15 printers, 4 physical servers, 25 virtual servers and 17 Terabytes of storage providing support to 46 sensitive applications. In a situation of transition to a different 3rd party provider DHRM will need funding and resources to support this initiative.

(5) SECURITY SHARED SERVICES - DHRM is engaged with VITA Security Shared Services and signed a MOU for ISO Services from VITA and a MOU for IT Security Audit Services from VITA. This engagement increases cost with IT security and does not address all of the security needs of the agency.

(6) CLOUD APPLICATION HOSTING - While not using it presently, DHRM needs to consider it a viable option in the near future. DHRM does not have funding to support any anticipated costs with this initiative.

(7) INTERNET UTILIZATION - More applications and automated processes will be available to a larger audience that use DHRM programs and services. The internet utilization will increase considerably this upcoming biennium. The Local Choice entities that are starting their participation, and the future participation of Schools and Local Governments in the COVA Local and LODA plans will contribute to a higher volume of web traffic. DHRM does not have funding to support any anticipated costs with this increase.

(8) High demands for UPGRADING AND MODERNIZING SYSTEMS to comply with new state and federal laws and regulations.

The greatest factor impacting DHRM is the potential retirement of many of its employees. Knowledge transfer is an important aspect of the agency's Workforce Plan.

28.1 percent of DHRM employees will be eligible for retirement within five years.  This is 3.3 percent higher than the Commonwealth as a whole (24.8 percent).

DHRM utilizes leased space in the James Monroe Building, 101 North 14th Street, Richmond VA 23219.  Nine employees in the State Employee Services area are home-based and provide CommonHealth Services throughout the state.

The Department of Human Resource Management routinely conducts an analysis of potential impediments to accomplishing the agency's mission.  The following have been identified:

• As the need for services increase, funding and staffing levels have not increased

• Eroding total compensation compared to the market

• Rising national and regional health care costs

• Aging workforce

• Inadequate central information systems

• Inflexibility of laws, regulations, policies and procedures

• Risk aversion

• Unfunded mandates

• Continuous change

• Health reform uncertainty

• Shriking Labor Pool and Work force

Nongeneral funds come from a variety of sources.  For the State Employee Workers' Compensation Service Area, funds are generated from employer premiums.  These premiums are developed based on each agency's experience regarding workplace injuries and their payroll.  The Employment Dispute Resolution Service Area generates revenue to fund administrative hearings by billing agencies with disputes.  The State and Local Health Benefits Service Area receives nongeneral funds from the Health Insurance Fund, as well as from local governments and schools participating in The Local Choice (TLC) program.  The State Employee Services Service Area has two different nongeneral fund sources: the Commonwealth of Virginia Campaign (CVC) funded from employee donations, and the CommonHealth Program funded from the Health Insurance Fund.

General Fund appropriations have steadily decreased, increasing the reliance on Non-General Fund sources.

The agency utilizes two funding sources that are not derived from the Commonwealth.  The Health Benefits Services section that serves local government and schools is funded from premiums paid by participating entities.  The section of Employee Services that serves the workforce giving program (CVC Program) is funded entirely from employee donations.

The human resource Shared Service Center is funded from both general fund and non-general fund agencies using the services as their human resource function.  This funding is identified as special funds.

The State Employee Workers' Compensation Services area is funded through a trust fund that flows from agency premiums.

The state employee portion of health benefits services is funded from the Health Insurance Fund (HIF).  HIF funding is derived from both employer and employee premiums.

The Employment Dispute Resolution section that provides grievance and hearing support is funded by agencies that experience the need for those services.

DHRM produces a variety of annual reports which may be viewed at the following web address: http://www.dhrm.virginia.gov/reports.html

These mandated reports include but are not limited to:

General

• Employee Compensation Report


• Commonwealth Human Resources At-A-Glance 2016


• Commonwealth Human Resources At-A-Glance Archive

 Reports to the General Assembly

• 2017 HAC Subcommittee Report on the State Workforce and Health Insurance


• 2016 Annual Salary Survey Report


• 2016 Health Benefits Ombudsman Report


• 2016 Commission on Employee Retirement Security & Pension Reform - Compensation Work Group, October 28, 2016


• 2016 Commission on Employee Retirement Security & Pension Reform - September 20, 2016


• 2016 Commission on Employee Retirement Security & Pension Reform - September 14, 2016


• 2016 Commission on Employee  Retirement Security and Pension Reform -  July 11, 2016


• 2016 HAC Subcommittee Report on the Budget, Health Insurance,
  
  Workforce, Compensation, & Information Technology


• 2016 Senate Finance Subcommittee Report on the Budget, Workforce, Compensation, Health Insurance, & Information Technology


• 2015 Health Benefits Ombudsman Report


• 2015 DHRM Line of Duty Act Report


• 2015 Review of the Public Employee Health Programs in the Commonwealth


• 2015 HAC Subcommittee Report on the State Workforce and Health Insurance


• 2015 Senate Finance Subcommittee Report on Compensation and Health Insurance


• 2015 Annual Salary Report


• Health Benefits Annual Reports 


• Reports Archive

Presentations

• 2016 DHRM HR Symposium - Commission on Employee Retirement Security and Pension Reform


• 2016 Virginia Sheriffs' Institute - Local Option Health Plan


• 2016 VGEA Presentation on Employee Health Benefits


• 2016 VGEA Presentation on Retiree Health Benefits


• 2015 VEIAA Presentation


• 2014 VEIIA Health Benefits Presentation


• 2015 VGEA Presentation - Roanoke

Full-Time Equivalent (FTE) Reports

• State Employment Level Trends 1991 – 2011


• Total by Agency


• Monthly Employment Data


• Historical Trend by Agency

Workforce Reports

• State Salaries as of June 30, 2016


• State Government Workforce Succession Trends Report


• Commonwealth Workforce Data Reports for Classified Employees


• Agency Workforce Planning Reports and Tools


• Archived Commonwealth Workforce Reports

Health Benefits Administration

• 2014 Open Enrollment Report

Office Area Reports

• 2016 Agency Human Resource Services


• 2016 Employee Programs


• 2016 Employment Dispute Resolution


• 2016 Equal Employment Opportunity Services


• 2016 Health Benefits


• 2016 Information Technology


• 2016 Workers' Compensation Services

No data

DHRM consists of the following ten service areas: Agency Human Resource Services, Human Resource Service Center, Personnel Development Services, Personnel Management Information System, Equal Employment Services, State Employee Program Services, State Employee Workers' Compensation Services, Health Benefits Services, Employment Dispute Resolution Services, and Administration and Support Services.  Each Service Area provides a diverse array of services which are measured by customer satisfaction.  The average of all customer satisfaction results for service area produces the Agency Key Measure of DHRM Customer Satisfaction.

Agency Human Resource Services provides statewide support to the Commonwealth around human resource policy, consulting, compensation, salary administration, employment, shared services, talent management, data stewardship, and analytics.

Human Resource Service Center provides customized, fee-for-service human resource services to client state agencies at a lower cost than those typically provided by in-house staff.

Personnel Development Services provides the COVLC (Commonwealth of Virginia Learning Center) which was implemented with the objective of providing a more efficient and effective method of maximizing training at an acceptable cost.

Personnel Management Information System or PMIS is an on-line transaction-based system containing employee and benefits records of all active and separated employees.

Equity, Diversity and Inclusion provides statewide support to the Commonwealth around Equal Employment Office (EEO) policy, consulting, compliance, investigation, reporting, and grievance appeals.

Employment Dispute Resolution Services provides statewide support to the Commonwealth around AdviceLine, mediation, training, grievances and hearings.

State Employee Programs provides statewide support to the Commonwealth around communications, employee discounts, workplace giving, employee wellness, and employee events.

Health Benefits Services provides statewide support to the Commonwealth around the state health plans, local government health plans, retiree health plans, Line of Duty Act (LODA) health benefits plans, flexible spending, COBRA administration, policy, systems, employee services, employer services, ombudsman services and vendor services.

State Employee Workers' Compensation Services provides statewide support to the Commonwealth around Workers' Compensation policy, claims administration, return to work services, loss control services and training.

Administration and Support Services includes Information Technology, Administration, and Contracts and Finance.  Information Technology provides statewide support services to the Commonwealth around Personnel Management Information System (PMIS), Benefits Eligibility System (BES), Time, Attendance and Leave (TAL), COVA Learning Center, human resource data warehouse services, human resource web applications, and employee self-service portals.

Contracts and Finance provides support services to the agency service areas around contracts, procurement, finance, travel and mail.

The Virginia Department of Human Resource Management (DHRM) is the central human resource agency for the Commonwealth of Virginia. We are dedicated to promoting a culture of leadership that cultivates a talented and proficient public workforce for the citizens of Virginia. We design and deliver the framework for human resource programs through a system of centralized program and operational services for state government and their stakeholders, including employee information, online learning systems, salary administration, human resource policy, human resources shared services, equal employment services, state employees workers’ compensation services, state and local government health benefits programs, wellness, and workplace giving.



The agency has developed efficient business processes and has made greater use of technology to automate those processes. The agency has been in the forefront in using technology with the development of a statewide Cardinal HCM system.  

The agency key performance measure is customer satisfaction.  This is measured in each service area of the agency and all results are averaged to compute the overall result.  The agency target is to have 90 percent of survey respondents rate the services received from DHRM as good or better.  DHRM has consistently met and exceeded this measure target.

The agency productivity measure is average employer health care cost.  The goal of controlling the cost of health care is a program goal.  The state employee health plan's annual cost trend should be equal to or below the average national large employer health care annual cost trend.

To ensure that resources are used efficiently and programs are managed effectively, and in a manner consistent with applicable state and federal requirements.

The grievance procedure is to afford "an immediate and fair method for the resolution of employment disputes."  EDR consultants research, investigate and draft administrative rulings in pending grievances and EDR hearing officers hold evidentiary hearings and issue written decisions on the merits of qualified employee grievances. If administrative rulings or hearing decisions are issued in an untimely manner, the grievance process and ultimate resolution of the dispute are unduly prolonged, resulting in inefficiencies and frustration for the parties, which in turn can affect the productivity and morale of the involved work unit. For those reasons, it is critical that EDR rulings and hearing decisions are issued in a timely manner.

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A high-level of customer service will be achieved by applying customer satisfaction measures to each of the nine service areas within DHRM.

• Maintain customer satisfaction surveys in each of the seven service areas.

A cost effective self-insured state employee health program will be achieved by comparing its cost to other programs nationally.

• Maintain self-insured state health benefits program data which outperforms other programs nationally.

Provide timely, accurate, and consistent human resource information utilizing cost effective delivery channels.

To increase transparency of HR.

• To provide HR information

Increase the percentage of employees participating in the CommonHealth Programs. The CommonHealth programs serve state employees and The Local Choice participants through a series of on-site and on-line programs to increase awareness of health and wellness issues among employees as well as providing tools and resources for these customer groups.

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To decrease the number of days away from work due to work-related injuries and illness and the associated amount of lost wage benefits paid on state employee worker's compensation claims.

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The grievance statutes mandate EDR to provide a comprehensive program of employee relations management, and specifically include the requirement of training for state supervisory and human resources personnel in the prevention and resolution of employment disputes. Effective learning opportunities can develop and strengthen employee competencies in preventing and resolving workplace conflict, which in turn allows employees to focus on service excellence in their jobs. EDR's continues to focus on expanding no-cost or low-cost learning and development opportunities for state employees in the prevention and resolution of workplace conflict, so that more employees will become knowledgeable and skilled in those areas.

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Agency Human Resource Services

This statutorily mandated service area is responsible for delivering services in all functional areas of human resource (HR) management. These functional areas include: HR program development, administration, consultation, oversight, and compliance; HR infrastructure development and management; compensation management and salary administration; HR information system (HRIS) systems support; policy development and administration; talent management and workforce planning; employment, including an online Recruitment Management System (RMS); legislative studies; and related communication and training.

This service area provides statewide oversight, consultation, advice, technical assistance, guidance, systems support, and direct services to agencies in the management of their human resource programs. The unit also works in collaboration with other DHRM program offices to ensure that the agency's mission is achieved.

How this service supports the agency mission

This unit provides statewide oversight, consultation, advice, technical assistance, guidance, systems support, and direct services to agencies in the management of their human resource programs. The unit also works in collaboration with other DHRM program offices to ensure that the agency’s mission is achieved.

Statutory Authority of this Service

§  2.2-1200 describes the duties, responsibilities, and mandates for the Department.  §  2.2-2900 establishes and ensures for the Commonwealth a system of personnel administration based on merit principles and objective methods of appointment, promotion, transfer, layoff, removal, discipline, and other incidents of state employment.

These are the source of most of the Core Mandates for the Office of Agency Human Resource Services

§  2.2-1200 describes the duties, responsibilities, and mandates for the Department.  §  2.2-2900 establishes and ensures for the Commonwealth a system of personnel administration based on merit principles and objective methods of appointment, promotion, transfer, layoff, removal, discipline, and other incidents of state employment.

These are the source of most of the Core Mandates for the Office of Agency Human Resource Services (AHRS).  AHRS develops, enhances, and maintains a comprehensive statewide human resource management program that includes compensation management and salary administration, management consulting, organizational design, HRIS data stewardship and systems support, human resource policy, talent management and workforce planning practices and tools, employment services, and a shared (fee-for-service) services center.  These functions work together to support the Commonwealth’s goal of attracting, retaining, and motivating a highly qualified workforce.       

§ 2.2-1202. Review of employee compensation; biennial report on employee recruitment and retention.

A. It is a goal of the Commonwealth to compensate its employees at a rate comparable to the rate of compensation for employees in the private sector of the Commonwealth in similar occupations, and consistently recruit and retain the most suitably qualified employees. To achieve this goal, the Director of the Department (of Human Resource Management) shall annually review (i) recruitment and retention trends, (ii) the functions performed by each classified job role, (iii) the number of employees and distribution of classified job roles across state agencies, and (iv) how the salaries for each classified job role compare to salaries paid by other employers in the Commonwealth and, as appropriate, to comparable salaries at a regional or national level.

B. The Director of the Department shall, on or before September 1 of each odd-numbered year, submit a report on (i) the classified job roles that should receive higher salary increases based on identified recruitment and retention challenges, (ii) the appropriate amount by which the salary of such classified job roles should be increased, and (iii) cost estimates for funding any salary increases to the Governor and the Chairmen of the House Committee on Appropriations and the Senate Committee on Finance.

Chapter 854 of the 2019 Appropriation Act - Item 81

M.1. The Department of Human Resource Management shall convene a workgroup (the “compensation workgroup”) to develop a methodology that can be used to determine (i) the amount of funding that should be appropriated for state employee salary increases each year and (ii) how to distribute that funding to address state agencies' most significant workforce challenges.

2. The methodology should be data-driven and include (i) recruitment and retention trends for each job role in the state workforce, (ii) how salaries and total compensation for each job role compare to similar jobs at other employers, (iii) the extent to which recruitment and retention challenges can be addressed by salary increases, and (iv) the impact of recruitment and retention challenges in each job role on state agency operations.

3. In developing the methodology, the workgroup shall incorporate data from the Personnel Management Information System, the Department of Human Resource Management's employee exit survey, and data from Occupationally Based Data Services.

4. The workgroup shall include representatives from the Department of Human Resource Management, the Department of Planning and Budget, House Appropriations Committee staff, Senate Finance Committee staff, and human resources staff from multiple state agencies.

5. The methodology developed by the workgroup shall be used to develop the biennial report required by House Bill 2055 of the 2019 General Assembly Session. Notwithstanding the provisions of House Bill 2055, the first biennial report using this methodology shall be due by December 1, 2019.

§  2.2-1201(7) - Application Form - Design and utilize an employment application form that also includes information on prior volunteer work performed by applicant.



§  2.2-2817.1 amended Chapter 421 (05) – Alternate work schedules – Requires each agency to develop policy on alternate work schedules and telecommuting, identifying employees eligible to participate and noting, with justification, broad categories of employees ineligible to participate. Requires each agency head to set annual percentage targets for the number of positions eligible for alternative work schedules. By July 1, 2009, each state agency shall have a goal of not less than 25% of its eligible workforce participating in alternative work schedules. By January 1, 2010, each state agency, except the Department of State Police, shall have a goal of not less than 20% of its eligible workforce telecommuting. Requires each agency to report annually to the Secretary of Administration (SOA) and DHRM on the status and efficiency of telecommuting and employee participation in alternate work schedules.



§  2.2-1201(1) – Classification – Make recommendations to the Governor regarding establishment and maintenance of a classification plan for service of the Commonwealth. Recommend amendments as necessary.



§  2.2-1201(2) – Compensation – Make recommendations to the Governor regarding the establishment and administration of a compensation plan for all employees. Recommend amendments as necessary.



§  2.2-1201.1 – Criminal Background Checks – Develop a statewide policy on conducting criminal background checks for sensitive positions.



§  2.2-1201(11) – Disciplinary Actions – Establish and administer regulations relating to disciplinary actions. Regulations permit no suspension of any state employee under investigation to be without pay for more than 10 days without a hearing by a level of supervision above the employee’s immediate supervisor or agency head.



§  2.2-1201(14-15) – Employment Level Annual Report – Submit to members of the General Assembly by September 30th an annual report showing employment levels, changes, and terminations.



§  2.2-1201(9) – Evaluation of Personnel Activities – Establish and administer a program evaluating the effectiveness of agencies’ performance of personnel activities.



§  29 U.S.C.§  Chapters 8,9; Executive Order 27 (02) – Fair Labor Standards Act (FLSA) – Establishes minimum wage, overtime, record keeping, child labor, and equal pay standards.



§  29 U.S.C. 2611(et seq.) – Family & Medical Leave Act (FMLA) – Comply with requirements of federal law to provide up to 12 weeks of unpaid, job-protected leave to eligible employees for certain specified family and medical reasons, to maintain employees’ health insurance during the period of leave under FMLA, and to return employees to their same or equivalent positions upon their return from FMLA leave.



§  2.2-1201(5) – Performance Evaluation – Establish and administer a system of performance evaluation for all state employees, based on quality of service rendered, related where practicable to specific standards of performance.



§  2.2-1201(3) – Personnel Information System – Design and maintain personnel information system.



§  2.2-1201(13) – Personnel Policies – Develop, disseminate and interpret state personnel policies and procedures to all agencies covered by the Virginia Personnel Act. Has authority to establish and interpret personnel policies and procedures, and to assure full compliance with such policies. Has no authority over state grievance procedures.



§  2.2-2903 amended (2012) – Veterans Preference – Grade or rating increase and other preferences for veterans and their surviving spouses and children, and members of the National Guard.

§ 2.2-203.2:3. Policy of the Commonwealth regarding the employment of individuals with disabilities;  promote and increase the employment of individuals with disabilities directly employed at all levels and occupations by state agencies, institutions, boards, and authorities of the Commonwealth.

Chapter 2, 2018 Special Session I, Acts of Assembly, §  4-7.01(Manpower Control Program) Restricts the hours that wage employees in the legislative, judicial, executive, and independent branches of government may work to no more than 29 hours per week on average per year.

Chapter 2, 2018 Special Session I, Acts of Assembly (Item 475) -  Requires that any supplemental salary payment to a state employee or class of state employees by a local governing body shall be governed by a written agreement between the agency head of the employee receiving the supplement and the chief executive officer of the local governing body.  Such agreement shall also be reviewed and approved by the Director of the State Department of Human Resource Management.  At a minimum, the agreement shall specify the percent of state salary or fixed amount of the supplement, the resultant total salary of the employee or class of employees, the frequency and method of payment to the agency of the supplement, and whether or not such supplement shall be included in the employee’s state benefit calculations.  A copy of the agreement shall be made available annually to all employees receiving the supplement.  The receipt of a local salary supplement shall not subject employees to any personnel or payroll rules and practices other than those promulgated by the State Department of Human Resource Management.

Chapter 2, 2018 Special Session I, Acts of Assembly (Item 475) – Involuntary Separations – Requires that notwithstanding the provisions of §  2.2-3205(A), Code of Virginia, the terminating agency shall not be required to pay the Virginia Retirement System the costs of enhanced retirement benefits provided for in §  2.2-3204(A), Code of Virginia for employees who are involuntarily separated from employment with the Commonwealth if the Director of the Department of Planning and Budget certifies that such action results from (1.) budget reductions enacted in the Appropriation Act, (2.) budget reductions executed in response to the withholding of appropriations by the Governor pursuant to §  4-1.02 of the Act, (3.) reorganization or reform actions taken by state agencies to increase efficiency of operations or improve service delivery provided such actions have been previously approved by the Governor, or (4.) downsizing actions taken by state agencies as the result of the loss of  federal or other grants, private donations, or other nongeneral fund revenue, and if the Director of the Department of Human Resource Management certifies that the action comports with personnel policy.  Under these conditions, the entire cost of such benefits for involuntarily separated employees shall be factored into the employer contribution rates paid to the Virginia Retirement System.

Chapter 2, 2018 Special Session I, Acts of Assembly (Item 84) – Requires the Department of Human Resource Management to develop and distribute instructions and guidelines to all executive department agencies for the provision of an annual statement of total compensation for each classified employee. The statement should account for the full cost to the Commonwealth and the employee of cash compensation as well as Social Security, Medicare, retirement, deferred compensation, health insurance, life insurance, and any other benefits. The Director, Department of Human Resources Management, shall ensure that all executive department agencies provide this notice to each employee. The Department of Accounts and the Virginia Retirement System shall provide assistance upon request.  Further, the Director of the Department of Human Resources Management shall provide instructions and guidelines for the development notices of total compensation to all independent, legislative, and judicial agencies, and institutions of higher education for preparation of annual statements to their employees.

§  2.2-1209. Agency human resource training and succession planning.

A. The Department shall develop and administer training programs to familiarize the director of each agency in the executive branch of state government with state human resources policies, including general policies, compensation management, benefits administration, employee training, succession planning, and resources available at the Department. The Department shall offer such training programs at least biannually.

B. The director of each agency in the executive branch of state government shall attend a training program offered pursuant to subsection A within six months after his appointment as director. Thereafter, he shall attend such training program at least once every four years.

C. Each agency shall, in consultation with the Department, develop, update, and submit annually to the Department an agency succession plan for key personnel, executive positions, and employees nearing retirement. The Department shall establish guidelines for the content and procedures for the submission of such succession plans.

• Provide HR Management Consulting - Consulting to agencies’ HR staff, agencies’ management, cabinet officials - HR policy - Infrastructure management: - HR Management Manual - Development/application of compensation tools - Surveys - Organizational design


• Provide HR Policy Development and promulgation - Research, revise, and develop policies, monitor interpretations and provide technical assistance - policy exceptions - Compliance with federal and state laws and guidelines - Maintain HR Policy Manual, Employee Handbook, Agency Head Handbook


• Talent Management - Provide data management, analytics, and reporting


• Provide consultative services in support of statewide workforce and succession planning strategies. Develop and implement statewide succession planning template and reporting system.  Design and implement statewide Exit Survey.


•  Develop and maintain workforce demographics


• Administer contract for, and manage the Commonwealth’s online Recruit Management System


• Provide overall guidance to the statewide Employment Services: - Virginia Jobs


• Develop and provide human resources orientation and refresher training to Executive Branch agency heads.


• Serve as HRIS Data Owner/Steward


• Serve as Business Owner for Time, Attendance, and Leave System (Scheduled for transition to CARDINAL in October 2018.


• Provide FLSA guidance, training, and advice


• Prepare studies, reports, research papers, and legislative impact statements


• Prepare and distribute related communication and training


• The Managing Virginia Program (MVP) - is an initiative by the Commonwealth to provide comprehensive management and leadership training to all state supervisors and managers. The program provides a standard curriculum and philosophy that will be consistent throughout state government. The MVP, unlike other programs, is of no direct cost to agencies and is available to all supervisors and managers. AHRS is responsible for notifying the site administrator when the curriculum requires revisions related to state human resource policy.

Starting 2018, funding for Agency Human Resource Services is provided through the general fund and through agencies utilizing the human resource shared service center.

This statutorily mandated service area is responsible for delivering customized, fee-for-service human resource services to client state agencies at a lower cost than those typically provided by in-house staff.  The Center, through Client Management Administrative Agreements, provides services in all functional areas of HR which includes:  Employment; Onboarding/Offboarding; EEO; Workforce Planning; Organizational Design; Position Classification; Compensation and Salary Administration; Benefits Administration; Employee Relations; Policy Administration; Personnel transactions and operations; and related employee communication and training.

The Center serves 16 Client Agencies.  Organizationally, it reports to the Office of Agency Human Resource Services.

How this service supports the agency mission

This service supports the agency’s mission by offering the following benefits to client agencies:

• Reduced administrative cost for human resource services.


• Centralized efficiencies and custom services that support individual agency needs and preferences.


• Compliance and accountability for the management practices, guidance, consultation, and employee business transactions effected on behalf of clients.


• One-stop HR Shop for employees and managers.


• Expertise in all human resource functional areas, including strategic planning, workforce planning, employment, compensation management, benefits administration, employee relations, policy, EEO, HR reporting, and personnel transactions.

Statutory Authority of this Service

Chapter 2, Item 81.  Requires the Department of Human Resource Management to operate a human resource service center to support the human resource needs of those agencies identified by the Secretary of Administration in consultation with the Department of Planning and Budget. The agencies so identified shall cooperate with the Department of Human Resource Management by transferring such records and functions as may be required.

Provide full-scope HR services to 16 client agencies and 1,201 full-time and wage positions

Funding for the Center is provided through general fund appropriation; and from direct nongeneral fund payments from client agencies through a fee-for-service arrangement managed through an Internal Service Fund.  The fee schedule is designed to recover the costs of services.  The current rate for the Human Resource Service Center is $995 per full-time employee and $398 per wage employee.

This Area has been combined in Service Area 70413

This statutorily mandated service area has the responsibility of administering a comprehensive health benefits program for state employees, state retirees and their dependents. It is also responsible for providing health benefits to local governments and school jurisdiction employees, dependents and retirees, and participants of the Line of Duty Act (LODA) health benefits plans.

Associated outcomes include providing health benefits and related programs that promote health and do not exceed the threshold that triggers liability for the excise tax.

This service area aligns with the Governor’s Enterprise Strategic Priorities in regard to Health and Family and Government and Citizens. Regarding Health and Family, this service area aligns specifically with the Governor’s Strategic Priority to promote Healthcare Innovation, by measuring the effectiveness of its innovative Diabetes Management Pilot Program. Regarding Government and Citizens, this service area aligns specifically with the Transparency Priority by posting its Health Benefits Annual Report timely on the DHRM website, with the Innovation Priority by measuring the effectiveness of its Diabetes Management Pilot Program, with the Fiscal Stewardship priority by measuring whether the state employee health plan is able to achieve Affordable Care Act (ACA) excise tax avoidance, and with the Customer Service priority by measuring whether customer satisfaction ratings meet 90% approval.

In addition, this service area directly aligns with DHRM’s mission to provide a broad range of leadership, services and guidance to the Commonwealth and its stakeholders.

26 U.S.C. §  105 - Health Insurance – Allows amounts received under an accident and sickness plan to not be included in an employee’s gross income.

 26 U.S.C. §  106 - Health Insurance – Allows the cost of the employer-provided coverage to not be included in the employee’s gross income.

 26 U.S.C. §  125 - Health Insurance - Cafeteria Plan Rules - Requires state to comply with IRS 125 rules to avoid constructive receipt when employees are allowed to pay health care premiums on pre-tax basis.

 29 U.S.C.Chapters 8 & 9 Executive Order 27 (02) - Fair Labor Standards Act (FLSA) - Establishes minimum wage, overtime, record keeping, child labor, and equal pay standards.

 29 U.S.C. §  1169 - Health Insurance - Qualified Medical Child Support Orders. Requires state to honor DSS orders to cover a child under an employee’s plan; allows for alternative recipient to receive benefit payments rather than employee.

 29 U.S.C. §  1181,29 U.S.C. §  1182,42 U.S.C §  1320d-1329d-8, 26 U.S.C. §  7702B - Health Insurance - Health Insurance Portability and Accountability Act Requires state to issue certification of prior coverage upon termination of coverage; prohibits discrimination based on an individual’s health status; requires privacy protection of plan members’ individual identifiable health information; requires submission of electronic data in a standard format to business partners. Requires that electronic systems, which store or transmit individual identifiable health information be evaluated and made secure from unauthorized sources.

 29 U.S.C. §  1185 Health Insurance - Newborns’ and Mothers’ Protection Act of 1996 Provides protections for mothers and their newborns with regard to length of hospital stays following birth of a child.

 29 U.S.C. §  1185a Health Insurance – Mental Health Parity Act of 1996 Provides for parity in application of limits to certain mental health benefits.

 29 U.S.C. §  1185b - Health Insurance - Women’s Health and Cancer Rights Act of 1998 Requires plans that provide mastectomy coverage to also provide for reconstructive surgery; also requires annual notice of this benefit.

 29 U.S.C. §  1607.18 - Uniform Guidelines on Employee Selection Procedures - Requires employers to determine whether tangible employment practices result in disparate impact against minorities and women, and to take affirmative corrective action if found.

 29 U.S.C. 2611(et seq.) Family & Medical Leave Act (FMLA) - Comply with requirements of federal law to provide up to 12 weeks of unpaid, job- protected leave to eligible employees for certain specified family and medical reasons, to maintain employees’ health insurance during the period of leave under FMLA, and to return employees to their same or equivalent position upon their return from FMLA leave.

42 U.S.C. Chapter 126 - The Americans with Disabilities Act of 1990 - Prohibits discrimination in all privileges and conditions of employment against qualified persons with a disability.

 42 U.S.C.§  300bb-2 - Health Insurance - Consolidated Omnibus Budget Reconciliation Act. Requires state to provide notice to employees and dependents covered under the state’s health care plan of their rights to continue coverage upon certain qualifying events, such as termination of employment.

 42 U.S.C. Chapter 6A §  201 – Public Health Service Act – Federal law that deals with public health and social welfare. Amendments to the act include HIPAA (Health Insurance Portability and Accountability Act); ACA (Affordable Care Act); National Cancer Act, etc.

42 U.S.C. 2000C-2000E-17 - Title VII of the Civil Rights Act of 1964 - Prohibits discrimination in all privileges and conditions of employment due to race, color, national origin, gender (including sexual harassment), and religion.

 42 U.S.C. 2000(e)(k) - The Pregnancy Discrimination Act of 1978 - Requires employers to treat women affected by pregnancy, childbirth, and related medical conditions, the same as other employees for all employment-related purposes.

 42 U.S.C. 2000h 2 - Title IX of the Education Amendments of 1972 - Prohibits discrimination based on gender in all privileges and conditions of employment in education programs or activities that receive federal financial assistance.

 42 U.S.C. §  1395y Health Insurance - Medicare Secondary Payor. Requires state coverage to be primary to Medicare for active employees and their dependents; forbids state from offering any incentive to enroll in Medicare in lieu of state’s coverage.

 Public Law 111-148- Health Insurance-Federal health care reform. Requires the state health plan to be compliant with the Affordable Care Act (ACA).

Affordable Care Act (ACA) Section 1557.  Establishes requirements for nondiscrimination in health programs and activities.

 38 U.S.C. §  4301-4335 - Uniformed Services Employment and Reemployment Act (USERRA) – Provides to protect the civilian employment of non-full-time military service members in the United States called to active duty.

 20 U.S.C. 1400 (et seq.) Individuals with Disabilities Education Act (IDEA) – Federal law that governs how states and public agencies provide early intervention, special education, and related services to children with disabilities.

 Public Law 110-233 Genetic Information Nondiscrimination Act (GINA) - Prohibits the use of genetic information in health insurance and employment decisions.  Prohibits insurers from denying coverage to a healthy individual or charging that person higher premiums based solely on a genetic predisposition to a disease in the future.

Code of Virginia, § 2.2-2818 - Health and related insurance for state employees – Directs the Department of Human Resource Management (DHRM) to establish a plan, subject to the approval of the Governor, for providing health insurance coverage, including chiropractic treatment, hospitalization, medical, surgical and major medical coverage, for state employees and retired state employees.

Code of Virginia, § 2.2-1204 – Health insurance program for employees of local governments, local officers, teachers, etc.; definitions– Directs the Department of Human Resource Management (DHRM) to establish a plan or plans, subject to the approval of the Governor, for providing health insurance coverage for employees of local governments, local officers, teachers, and retirees, and the dependents of such employees, officers, teachers, and retirees. The plan or plans shall be rated separately from the plan established pursuant to §  2.2-2818 to provide health and related insurance coverage for state employees.

Code of Virginia, § 9.1-401 (Effective July 1, 2017) - Establishes LODA health benefits plans to be administered by DHRM.

Code of Virginia, § 32.1-127.1:03 – Health records privacy- Requires the state health plan to comply and recognize an individual's right of privacy in the content of his health records. Health records are the property of the health care entity maintaining them, and, except when permitted or required by this section or by other provisions of state law, no health care entity, or other person working in a health care setting, may disclose an individual's health records.

Code of Virginia, § 38.2-3418.17—Coverage for autism spectrum disorder-directs the state and TLC employee health plans to provide coverage for the diagnosis and treatment of autism spectrum disorder, including ABA services for children ages two through ten.

Virginia Administrative Code, 1VAC55-20-20 - Commonwealth of Virginia Health Benefits Program - Administrative Code for State Employee Health Plan and The Local Choice (TLC) - permanent regulations for the Commonwealth of Virginia pertaining to the health insurance plans. Regulations have the force of law and are written and administered by state agencies as authorized by the General Assembly.

Health Program Administration: Comprehensive administration of state, TLC and COVA Local health programs for active and retired employees, and LODA health benefits programs participants, including plan design, pricing, vendor liaison, communication, enrollment, training, problem resolution and funding analysis.

Policy Administration: Development, application and interpretation of policies and procedures as well as state and federal regulations related to or impacting the health program.



Vendor Management: procurement, contract administration and on-going management activities to ensure adherence to contract and plan benefits and an appropriate level to service to members of the various health benefits programs administered by DHRM.



Federal and State Regulatory Compliance: evaluation and application of federal and state laws as required to maintain all program components in compliance with applicable regulations.



Customer Service: Ombudsman: Interaction with employees, retirees, human resource and benefits administrators, legislators and other in response to written, telephone or email inquiries or requests for assistance related to health program benefits, claims, eligibility. Manages appeals processes and provides intervention in sensitive cases.

Funding for health benefits comes from a portion of health insurance premiums paid by local jurisdictions and state agencies.

The Commonwealth of Virginia Learning Center (COVLC) was implemented with the objective of providing a more efficient and effective method of maximizing training at an acceptable cost. DHRM is the business owner and provides the oversight of the KC in an effective and efficient manner administering all the operational aspects of the COVLC.

It is a large system composed by one major domain with multiple levels of sub-domains where each one is independent from the others. The uniqueness of this system is that, although each sub-domain is independent, they have the ability to share training across each one thus maximizing training opportunities. Looking at economies of scale this implementation is getting the best use of the financial resources for the Commonwealth.  It provides provide mandatory training for all state employees.

It was implemented in early 2005 with one major Core portal and eight (8) state agencies portals. The COVLC has experienced incredible growth, with over 400,000 former and current users in the system and more than 255 participant members consisting of state agencies, local governments, colleges and universities. Each member entity has the opportunity to create and deliver unique training. Their training can be simple, blended, interactive, or it can be as creative and complex as required. Agencies can create measurements of the training via simple quizzes to complex testing for licensing purposes; audios and videos can be incorporated into training modules, etc.

Important mandatory training is being shared and delivered to all state agencies by the Department of Accounts (DOA), the Department of Human Resource Management (DHRM), and by the Office of Attorney General (OAG), the Virginia Information Technology Agency (VITA), and others.

Funding for the Commonwealth of Virginia Learning Center is provided through general fund.

The Personnel Management Information System (PMIS) is an online transaction-based system. It contains employee and benefits records of all active and separated employees for the executive branch, higher education faculty, and employees of certain agencies exempt from the provisions of the Personnel Act.

PMIS collects position/employee and health benefits data of most state agencies and employees.  The main purposes of the data are for compensation authorization, health benefits eligibility, EEO compliance, workforce planning, and centralized reporting.  Outputs from the system provide the ability for agencies to (process their own reporting needs) (or replace with) meet their specific reporting requirements.

The main functions of PMIS are complemented by its subsystems and the Benefits Eligibility System (BES). It is a major subsystem of PMIS where health benefits records are maintained on all eligible employees, employee dependents, and participant retirees. Eligibility records are passed from BES to the health care providers and the prescription drug provider. These organizations use BES data to maintain their membership systems for claims processing.

§  2.2-1201.3 of the Code of Virginia requires the Department of Human Resource Management to design and maintain a personnel information system that shall support the operational needs of the Department and of state agencies, and that shall provide for the management information needs of the Governor, his secretaries, and the General Assembly. The system shall provide at a minimum a roster of all employees in the service of the Commonwealth, in which there shall be set forth as to each employee, the employing agency, the class title, pay, status and such other data as may be deemed desirable to produce significant facts pertaining to personnel administration.

DHRM has utilized PMIS and its subsystems systems to meet mandated requirements. These systems include: 

 •    PMIS: The Personnel Management Information System automates core HR administrative functions for classified, faculty, and other salaried employees in the Executive Branch and other agencies that choose to utilize this system.

•    BES: The Benefits Eligibility System automates core health benefits eligibility and administrative functions for COV employees, retirees and their dependents.

•    IPP: The Incentive Pay for Performance subsystem of PMIS automates the performance reviews, statewide salary increases and bonuses for classified, faculty, and other salaried employees.

•    EPR: The Employee Position Reports subsystem of PMIS reports staffing levels by type of funding (and budgeted MEL) for Executive, Legislative, Judicial, and Independent agencies.

•    WAGE3: The Wage-3 subsystem of PMIS automates the roster and reporting of hourly employees for PMIS agencies that opt to use the subsystem.

•    WN: The Written Notices subsystem of PMIS automates the documentation of formal disciplinary action process for COV employees in PMIS.

 DHRM-ITECH has developed and implemented additional IT capabilities that supplement the core PMIS functionalities. Web-based applications, web-based services and web sites, internal technical infrastructure, and external electronic interfaces comprise the supplemental suite of IT tools.

 The following web-based applications are directly dependent on the information flow from PMIS.

 •    EmployeeDirect: The state employee secure web portal provides access to personal, compensation and benefits information.

•    TAL: The Time, Attendance and Leave system available to all PMIS user agencies.

•    HuRMan secure web portal: This Human Resource Management portal comprises a suite of secure web-tools for DHRM customer agencies and vendors:

• HuRMan agency repository (data files and reports)


• The DHRM suite of integrated (SAS) data warehouse tools


• EEO assessment tools


• RMS Applicant Flow (Recruit Management tools)


• Workforce Planning tools (query tools)


• HR-At-a-Glance reports (management reports)


• EPR/FTE reporting


• P3/P3A reporting (PMIS Turnaround Documents)

Beginning in fiscal year 2018, PMIS and its subsystems are funded through an internal service fund rate of $16.85 for each position within the executive branch agencies.

This statutorily mandated service area manages the responsibilities of 1) the administration of a comprehensive equal employment opportunity (EEO) program (Equity, Diversity, and Inclusion - EDI) and 2) a comprehensive program of employee relations management that includes alternative processes for resolving employment disputes (Employment Dispute Resolution – EDR). For EDI, this includes investigation and resolution of complaints of illegal discrimination  filed by state employees (classified, faculty, wage and probationary)  and applicants for state employment  as well as the administration  of a compliance program to determine whether agencies’ human resource management  practices result in equal employment concerns. EDR services include the state employee grievance procedure, statewide mediation program, training, advising and consulting with employees and agency managers on workplace issues and managing workplace conflict, and the DHRM Workplace Conflict Consultation Program.

Assuring equal employment opportunity and solutions to workplace conflict consistent with the Commonwealth's policies and related law are key functions of providing statewide leadership in human resource management.  These services are designed to provide timely and appropriate workplace conflict resolution to state agencies and their employees to allow focus to be properly directed to effective and efficient job performance.  Federal and state anti-discrimination laws prohibit discrimination in all privileges and conditions of employment.

Relevant Authority

Code of Virginia § 2.2-1202.1, Employment Dispute Resolution, establishes a comprehensive program of employee relations management that includes alternative processes for resolving employment disputes, including administration of the state employee grievance procedure and hearings program, statewide mediation program, training, and related authority;

Code of Virginia § 2.2-3000, et seq., State Employee Grievance Procedure, establishes parameters of and authority under the state employee grievance procedure;

Code of Virginia § 2.2-1201 (9), Evaluation of Personnel Activities, establishes and administers a program of evaluation of effectiveness of performance of the personnel activities of the agencies.

Code of Virginia § 2.2-1201(10), Equal Employment Opportunity, establishes and administers a program to assure equal employment opportunity to applicants and to state employees in all incidents of employment;

Code of Virginia § 2.2-2903, Veterans Preference, requires that “additional consideration” shall be given to veterans who have a service-connected disability rating fixed by the United States Veterans Administration.

Governor’s Executive Order Number One (2018), Equal Opportunity, prohibits state agencies from engaging in acts of unlawful employment discrimination and authorizes EDI to investigate and resolve such complaints. The foundational tenet of this Executive Order is premised upon a steadfast commitment to foster a culture of inclusion, diversity, and mutual respect for all Virginians.

29 U.S.C. § §  621-633(a), Age Discrimination  in Employment  Act of 1967, as amended, prohibits discrimination  in all privileges and conditions of employment  against persons age 40 and over;

42 U.S.C. Chapter 126, Americans with Disabilities Act, prohibits discrimination in all privileges and conditions of employment against qualified persons with a disability;

Pub. L. 110-325, carries out the American with Disabilities Act’s (ADA) objectives of providing a clear and comprehensive national mandate for the elimination of discrimination and clear, strong, consistent, enforceable standards addressing discrimination by reinstating the intent and a broad scope of protection to be available under the ADA.

29 U.S.C. § 206, Equal Pay Act of 1963, prohibits differentiation in pay for equal work based on gender;

42 U.S.C. §  2000ff, Title II of The Genetic Information Nondiscrimination Act of 2008, prohibits use of genetic information in employment decision- making; restricts employers and other entities subject to Title II of GINA from requesting, requiring, or purchasing genetic information; requires that genetic information be maintained as a confidential medical record, and places strict limits on disclosure of genetic information; and provides remedies for individuals whose genetic information is acquired, used, or disclosed in violation of its protections.

42 U.S.C. § 2000(e)(k), Pregnancy Discrimination  Act of 1978, requires employers to treat women affected by pregnancy, childbirth, and related medical conditions, the same as other employees for all employment-related purposes;

42 U.S.C. § § 2000C-2000E-17,  Title VII of the Civil Rights Act of 1964, as amended, prohibits discrimination  in all privileges and conditions of employment due to race, color, national origin, gender (including sexual harassment),  and religion;

29 U.S.C. § 1607.18, Uniform Guidelines on Employee Selection Procedures, requires employers to determine whether tangible employment practices result in disparate impact against minorities and women, and to take affirmative corrective action if found;

  Equity, Diversity, and Inclusion

• Complaints of Discrimination  - Investigates and resolves complaints of illegal discrimination  (e.g., race, sex, color, gender identity or expression, age, retaliation, sexual harassment,  sexual orientation, political affiliation, religion, national origin, disability, veteran’s status) filed by state employees and applicants for state employment.


• EEO Compliance Program – Utilizes the EEO Assessment Tools and Compliance Calculator, which adhere to the Uniform Guidelines on Employee Selection Procedures,  a progeny of Title VII of the Civil Rights Act of 1964, as amended, the Governor’s Executive Order Number One (2018), and the Commonwealth’s  - Policy 2.05 - Equal Employment  Opportunity. Where there are indicators of potential equal employment concerns as a result of the calculations of the impact analyses, agencies may use the information to take any needed corrective actions.  EEDR works with agencies on their responses to the results of the Compliance Calculator.  This program is under review, as discussed below. 


• Prepares the Commonwealth’s EEO-4 Report. This report, a statistical employment survey of state government submitted to the federal Equal Employment Opportunity Commission biennially, as required by federal law and regulation.

• Provides Technical Assistance and Training to state employees, state management officials, and local governments in the areas of EEO, Prevantion of Harassment (Non-sexual and Sexual), Civility, Diversity and Inclusion, Unconscious Bias, Cultural Competence,  Reasonable Accommodation.


• Coordinate and conduct cultural observances.

  Employment Dispute Resolution

• Grievance Procedure: EDR is the neutral administrator of the Commonwealth’s grievance procedure, a process that allows state employees to bring their workplace concerns to the attention of upper management, and in some cases, to present their concerns to an independent hearing officer.


• Workplace  Conflict Consultation  Program: A neutral, independent,  informal, and confidential resource that facilitates fair, equitable, and expeditious resolutions to workplace conflicts and concerns raised by Virginia state employees and agency management  through conflict coaching, mediation, consultation, and skill-building training.

• Training: EDR offers a variety of training courses on subjects such as employee discipline, the grievance procedure, workplace harassment, and workplace conflict.


• AdviceLine:  A toll-free AdviceLine, a requirement of statute, through which all Commonwealth  employees, including agency managers, may seek confidential guidance on preventing and resolving workplace conflict, the grievance procedure, and other employee relations issues.

Funding for Equity, Diversity, and Inclusion is provided by the General Fund.  Employment Dispute Resolution funding combines general fund appropriations  and the collection of nongeneral funds in the form of hearing officer fees.  Nongeneral funds are devoted to the personnel costs of employing one full-time hearings officer and one full-time support staff member as well as hearings program expenses.

This area has been combined in Service Area 70413

The State Employee Programs Service Area provides a range of services to Commonwealth of Virginia employees, including managing employee-focused wellness programs statewide through the CommonHealth Wellness Program, which serves state employees as well as employees of localities participating in The Local Choice benefits program focusing on employee health needs as indicated by insurance claims and workers' compensation target issues; developing employee communications; implementing employee reward and recognition programs; organizing employee special events and programs; and managing the annual workplace giving program, Commonwealth of Virginia Campaign (CVC). Creates associated outcomes that include enhancing employee morale through the participation in the Commonwealth of Virginia Campaign (CVC), encourages employee volunteerism, and develops and delivers effective employee communications, reward and recognition programs and comprehensive wellness programs.  Manages  the Virginia State Employee Assistance Program, which includes an Emergency Grant Program as well as the State Employee Loan Program.

State Employee Program Services aligns to the agency’s mission of addressing the diverse human resources needs of our customers through guidance, consultation, and training. It aligns to the agency’s goals of providing timely, accurate, and consistent human resource information, utilizing multiple cost-effective delivery channels; providing statewide leadership in areas of human resources management, and addressing continuously changing management needs of state agencies throughout the Commonwealth; developing and implementing a statewide workplace giving program to focus on the needs of our communities; and to provide financial assistance to those employees facing an unexpected emergency or those needing short-term small loans; developing and managing a statewide CommonHealth wellness program for state agency employees as well as participating localities in The Local Choice Program; assisting agency management in addressing their human resource needs through effective and timely communications.

• Develops communications materials, including e-newsletters, the DHRM Website, the Commonwealth of Virginia Campaign website, and the CommonHealth website, e-mail distribution lists, and written and electronic resources for all employee programs.


• Manages the statewide Employee Wellness program, CommonHealth.


• Creates responses to media, citizen and organization inquiries.


• Coordinates special programs and events, such as the Governor’s Awards program, wellness initiatives and other rewards and recognition events, plus special event coordination for Governor's Office and the Secretary of Administration.


• Manages the Commonwealth of Virginia Campaign, the workplace charitable giving campaign, including an Employee Assistance Fund and its related programs, special fund drives including disaster relief.


• Oversees the proper maintenance of agency public records at the Library of Virginia.


• Provides FOIA Coordination. The service area coordinates responses to FOIA requests received by the agency.


• Provides program materials to new employees as part of the Onboarding process.

Activities in Employee Program Services are funded by nongeneral and general funds.  General funds support staff and related expenses in the communications section.

This statutorily mandated service area is responsible for establishing a workers’ compensation insurance program for all state employees. Additional responsibilities of this unit include loss prevention programs to reduce the likelihood of workplace injuries, ensuring that injured employees receive timely, quality medical care, payment of lost wages, a disability management program to assure return-to-work with the agency whenever possible, or rehabilitation/job training and job placement. The program has averaged approximately 8,000 new claims each year for the past five years and issued 72,020 checks totaling more than $63 million in benefits in FY18.

Associated outcomes include providing cost containment, consultation, guidance and educational programs to increase safety in the workplace, increase return-to-work opportunities, and reduce the program cash flow claims payments.

This service area directly aligns with DHRM’s mission to provide a broad range of leadership, services and guidance to the Commonwealth and its stakeholders

Policy Administration - This statutorily mandated unit is responsible for establishing a workers’ compensation insurance program for all full-time and part-time state employees and all self-insurance policy administration. The program’s actuary develops premiums using an experience-based model as required by the Appropriations Act.

Premiums are developed by October 30 in advance of the biennium and submitted to the Governor and the General Assembly for approval. Premiums are charged to all state agencies annually using premium statements that provide detailed information on how the premium for each agency was developed.

Claims Management - The Claims Management unit receives approximately 8,000 new state employee workers’ compensation claims a year. These services are outsourced through a public-private partnership through a competitive procurement process. The staff of the contractor is housed on the DHRM premises and works very closely with management and agencies. Each claim must be investigated and evaluated for coverage under the Workers’ Compensation Act. The program is responsible for assuring that state injured employees receive timely, quality medical care, payment of lost wages, rehabilitation/job training and job placement. Claims are administered in compliance with Virginia law. This unit works closely with the Office of the Attorney General staff that provides legal defense on any contested matters.

During FY 2017, the State Employee Workers' Compensation Pilot Program was established.  Settlement of 59 cases resulted in avoided future cost liability of $14 million. Though these cases represent only 5% of potential cases to be settled, the program has reached 33% of the actuarially forecasted cost avoidance savings.  During FY 2018, settlement of 43 cases was accomplished with avoided future cost pending completion of the annual actuarial study.

The funds identified in the financial table represent the administrative costs associated with the State Employee Workers' Compensation Services.  This amount is included in the actuary developed rates paid by state agencies.

This service area includes the Director’s Office, Finance and Contracts, logistics, and

Directors Office

The Directors office is responsible for the overall direction of DHRM.  This area is also rsponsible for reporting to the Office of Administration regarding the agency. The office works directly with all directors responsible for the various areas in DHRM while providing leadership so that DHRM serves and the leader of HR administration policy in the Commonwealth.

Finance and Contracts (OCF)

The Office Finance and Contracts (OCF) is responsible for the overall fiscal accountibility of the agency as well as the procurment duties, policies and procedures of the agency.  OCF assists with the procurement of and monitors the  extensive health benefits contracts package. Other contracts include the annual State Employees Workers Compensation Services contract with a private vendor, a contribution collection contract for the Commonwealth of Virginia Campaign, Actuarial services, and other various contracts that allow DHRM to function effeciently. Other duties include providing required accounting information to DOA and complying with the agency's procurement requirements. The office also works with internal customers who are fiscally responsible for monitoring their respective areas at DHRM. That includes budgeting, fiscal transactions and journal entries.

Information Technology (ITECH).

This service area uses  Web-based technology to provide interactive applications for a range of Human Resource functions, including recruitment, policy, benefits, compensation, communications and EEO services. ITECH is responsible for DHRM's internal systems being able to communicate with external customer systems to provide data for implementing the states health insurance plan.  ITECH is also responsible for ensureing that the Personnel Management Information System (PMIS) is functioning correctly so that agencies can enter payroll and benefit data for its employees. ITECH is also responsible for information security for the agency

This service area provides the administrative support for the other service areas which provides the programs supporting the agency's mission

Agency travel support

Procurement activities

Actuarial services and support

Accounts receivable

Accounts payable

Payroll

IT Services (non-VITA)

The Administrative unit allocates its time and cost to the other agency service areas. This increases transparency by showing the actual cost of each service area to the Commonwealth. For instance, the majority of the costs associated with fiscal and contracts are allocated to the health benefits and state employee workers' compensation service areas. In addition, the majority of information technology costs are allocated to health benefits, agency human resource services, and equal employment services.