‘Brain drain’ hits state offices

Tuesday, Aug. 2, 2005 | 10:53 a.m.

CARSON CITY -- It's being nicknamed the "brain drain."

Scores of upper management workers in state government have started to or are preparing to retire because they have reached age 60 or have 30 years in state service or both.

State Personnel Director Jeanne Greene says there's going to be a "big exodus" in the next five years including "lots of high-level supervisors and managers."

The many Baby Boomers who went to work for the state in the 1970s and 1980s are becoming eligible for retirement. A personnel study shows that 20 percent of the state's 16,000-person work force will be eligible to retire within five years and 40 percent in 10 years.

Under a normal trend, Greene said 30 percent of the workers would retire within 10 years.

The departments of human resources and employment, training and rehabilitation will be hit hard, she said. These are two of the biggest agencies in state government. The exodus is starting to "roll through right now," said State Human Resources Director Mike Willden. He also said he has no plans to retire anytime soon.

Fifteen upper management workers have left in the past year and another 15 will be leaving in the next year, he said. Four of the 10 "critical fiscal management" positions are vacant because of retirement, he said.

"I'm confident we are going to work this out," said Willden, talking about training and finding replacements. "But there is going to be a tremendous amount of pain in the process." Birgit Baker, director of the state Department of Employment, Training & Rehabilitation, said eight of her employees recently retired. They were hired in the mid 1970s when the department added staff because of a surge in the jobless rate.

Baker, who started working for the state in 1977, said she has no plans to retire soon.

The state Department of Motor Vehicles, another major agency, is aware that it will face a potential shortage of managers. "Within five years, we will lose a significant number of upper management," said Tom Jacobs, public information officer for DMV.

Phil Brittenham, personnel officer for DMV, said the department started a "career planning program" three months ago to help employees who intend to stay and who want to get ready for promotions. These workers, he said, are counseled as to educational and other requirements for advancement.

The DMV employees set goals and are then given guidance on how they reach the targets, said Brittenham. This problem of losing upper management, said Greene, the state personnel director, isn't limited to Nevada. "It's a national trend," in other governments and in private business with the aging work force.

It's not only hitting the executive branch but it's being felt in the Legislature. Lorne Malkiewich, director of the Legislative Counsel Bureau. "We could lose five top people in fiscal analysis at any time," he said.

Malkiewich said the retirement of these veterans means not only a loss of institutional memory but also a loss of production. Referring to former Deputy Legislative Bill Drafter Kim Morgan, he said, "she could turn out a lot of amendments" to bills in a short time.

Legislatures across the country are looking at this problem, he said.

Malkiewich, who came to work in the Legislature in September 1981, said he's not leaving at least until 2011. Term limits kicks in for legislators starting in 2010 and the 2011 Legislature will have to deal with reapportionment.

Baker intends to establish a Leadership Academy in the Employment, Training & Rehabilitation Department to train present workers for management and supervisory positions.

"Fortunately we have a skilled work force," said Baker. "I don't see a problem in filling them" referring to the upper level positions.

The Leadership Academy will have a "global" training program, including dealing with budget and the Legislature. And it could be extended to other agencies.

Greene's agency got money from the 2003 Legislature to start a "certified public manager" training program that lasts for 18 months. The first group of 38 workers will graduate in November and new classes are starting in Las Vegas and Carson City.

Greene said the state brings in trainers from around the nation for one week of classes every six weeks. And each student has a project on which he or she is graded.

Baker, Brittenham and Willden praised the program but indicate they will have to do more in order to fill the expected vacancies.

Willden, who calls it the "brain drain," said a lot of employees get 20 or more years of service in state government, then buy retirement credits for extra years so they can leave. "The 30-year employee is a rare animal," said Willden, who started work with the state in 1973.

Because of the shortage in some supervisory or professional positions, Willden said the state has to contract with private industry. "It's amazing to me that we have to contract for resources because there are no managers in house," he said.

For instance, he said his agency is short of auditors and may have hire auditors in private industry to do the work.