The Department of Employee Relations (DER) updated the Finance & Personnel Committee on Oct. 17 about the department’s 2026 request, benefit plan changes, workforce recruitment and ongoing pay studies and training efforts.

Lede: DER presented a modest proposed budget increase for 2026, noting no reductions in position authority; the department plans to move Milwaukee’s Medicare supplementary coverage to a Medicare Advantage product, expand wellness and return‑to‑work programs, and continue multi‑year market pay studies.

Nut Graf: Director Jackie Q. Carter and DER leadership said 2026 is largely a ‘‘cost‑to‑continue’’ budget with a net increase driven mainly by higher health‑care and workers’ compensation projections. DER described targeted investments in recruitment, internships, apprenticeship programs, a management trainee pipeline and a push to modernize personnel workflows using Workday.

Key budget figures and benefits changes: Budget staff summarized DER’s net operating change as approximately $144,000 with one fewer FTE funded in the operating budget (a paralegal line removed while position authority was retained). The department reported an expected 6% increase in city health‑care spending for 2026 (noting benefits costs vary by plan), and a $1 million increase in projected workers’ compensation spending. DER also plans to shift the city’s retiree Medicare supplement to a Medicare Advantage plan (UnitedHealthcare) beginning in 2026; staff said they held outreach sessions and will offer targeted enrollment assistance for covered retirees.

Recruitment and internship efforts: Staffing manager Kristen Hennessy Urban described a broad outreach plan that includes 9 career fairs at Milwaukee Public Library locations in the coming months and partnerships with MPS, MATC and UWM for internships and youth apprenticeships. Kwabena Marcus J. Collins, DER’s diversity recruiter, described a new SMIRA (subject‑matter recruitment ambassador) program that mobilizes internal subject matter experts to help departments recruit for technical and specialized roles.

Compensation and pay studies: Human resources manager Andrea Knickerbocker summarized a multi‑year market‑study program that began in 2021. The department has completed most large studies internally, rather than hiring outside consultants, and officials said the studies have increased applicant pools and improved hiring rates in targeted titles. Knickerbocker said market studies are expensive and that the city should consider predictable pay progression and performance reviews as more cost‑effective and sustainable ways to address pay compression.

Wellness, return to work and safety: Benefits director Molly King said 2025 had no increase in health costs but 2026 modeling projects higher premiums. DER described ongoing wellness offerings, expanded chronic‑care and diabetes programs, a year‑round clinic and expanded ergonomic and mental‑health supports. The department emphasized a ‘‘bridge to work’’ light‑duty program for employees recovering from work injuries, and a pilot collaboration with the Fire Department to add athletic‑trainer support and reduce lengthy workers’‑compensation absences.

HR policy, training and Workday: Catherine Holiday, HR Compliance Officer, said DER has launched a 12‑month curriculum to train personnel officers across departments and will use Workday’s learning platform to standardize training and HR workflows. DER said Workday will also streamline requisition‑to‑onboarding workflows, reduce paperwork, and help enforcement of consistent HR processes across city departments.

What committee members asked: Council members asked about the proposed 2% across‑the‑board pay adjustment in the mayor’s budget, alternatives such as mid‑year or targeted supplements, increasing Healthy Rewards or HRA amounts, the $1M worker‑comp increase and staff recruitment for chronically vacant trades and public‑health roles. DER described ongoing work to study pay and to recruit through apprenticeships and partnerships.

Ending: DER framed 2026 as a year of continuing modernization: implementing Workday, finalizing market studies, expanding wellness and return‑to‑work programs, and stepping up recruitment and youth apprenticeship programs. Committee members asked DER to return with follow‑up figures, vacancy hot lists, and more information on benefit take‑up and Healthy Reward participation.

Selected quote: "A healthy employer is a productive employee," Benefits Director Molly King said, describing wellness and clinic services offered to staff.

Votes at a glance: No formal committee votes were recorded on DER items during the Oct. 17 session.