Report 2017-103 Recommendation 5 Responses

Report 2017-103: Workers' Compensation Insurance: The State Needs to Strengthen Its Efforts to Reduce Fraud (Release Date: December 2017)

Recommendation #5 To: Insurance, Department of

To better address vacancies in its fraud investigator positions, CDI should, by June 30, 2018, develop and implement a retention plan. This plan should be based on the results of in-person exit interviews with separating staff or similar tools, such as satisfaction surveys, to identify and address potential causes for separation other than pay. CDI should share the results of any trends arising from its exit interviews as well as its analyses of survey responses with the appropriate units as it deems necessary.

6-Month Agency Response

CDI completed the Fraud Division Retention Plan on June 6, 2018. Implementation of the Retention Plan is ongoing.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

The Recruitment and Background Investigations Team was tasked with the development of the retention plan. Currently, the team is in the planning stages, scoping the plan's content and how it will be implemented throughout the Enforcement Branch. The team intends to have the retention plan ready for review by the Deputy Commissioner on March 12, 2018, and final Executive Staff review on March 30, 2018. Final adoption of the retention plan by June 1, 2018.

The retention plan will include best practices and guidelines on how CDI can better implement exit surveys and exit interviews as part of the employee separation process. The retention plan will address how and what information gained from exit interviews and exit surveys should be shared with the identified staff of the Enforcement Branch to determine the primary causes of employee turnover aside from pay. In developing the retention plan, the current CDI Employee Exit Questionnaire will be reviewed for viability to determine if it needs to be revised to better identify reasons for employee turnover.

The retention plan will include common reasons for employee turnover and suggested solutions for each reason. The development of supervisory staff and methods to improve organizational culture will also be included in the retention plan. Please find attached a 60 Day Update Memorandum for further details in regards to the development of the retention plan. (Attachment C.)

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2017-103

Agency responses received are posted verbatim.