Michigan looking to consolidate HR services

Bill that would combine most of the state's HR departments into one passes Senate vote

Michigan is taking steps to consolidate most of the state’s HR operations into one, central department.

The state Senate recently passed a bill that would see most of the personnel operations rolled into one department, something Michigan Governor Jennifer Granholm said could hurt state services.

“There are some departments where it makes sense to consolidate, but this goes much too far,” Liz Boyd, a spokeswoman for Granholm, told the Associated Press.

Currently, each of the state’s 20 departments has their own HR departments. State Rep. Phil Lajoy said rolling the offices together would save Michigan about $7.5 million US every year by eliminating duplication and lowering the amount of office space the state would need to use.

The only two departments that would be excluded from the plan are the Attorney General’s Office and the Department of State.

In a statement issued after the Senate passed the bill in a 21-16 vote, Lajoy called it a “blockbuster” for government efficiency.

Critics of the plan charge rolling the departments together doesn’t make sense, and that some branches — such as agriculture and corrections — have unique needs that can’t be met by a one-size-fits-all approach.

The state has already consolidated some HR functions. Boyd said Michigan has setup a centralized call centre for HR questions, something that will eliminate the equivalent of 80 full-time jobs and save $2 million US in 2005.

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