As the agency responsible for the administration of unemployment insurance, disability insurance, and paid family leave programs, EDD found itself struggling to navigate unprecedented demand, fraud attempts, and operational challenges. Determined to improve services for their clients and address systemic issues, EDD took on the monumental task of business transformation.
One of the primary hurdles was the overwhelming demand for services. EDD's systems and processes were not designed to handle the sheer volume of claims and inquiries that arose as unemployment skyrocketed to 16 percent, resulting in significant delays and frustrations for claimants.
The new federal programs were also susceptible to fraud attempts because they allowed claimants to self-certify for benefits. As news of potentially fraudulent activities surrounding unemployment benefits spread, the agency faced intense scrutiny and pressure to tighten security measures. The need to prevent fraud without delaying critical benefits to legitimate claimants further complicated operations.
Another issue was a lack of integration across programs. Each program operated its own processes, technologies, and communication channels. This siloed approach created inefficiencies and prevented a comprehensive view of clients' needs, resulting in a disjointed customer experience and missed opportunities for streamlining operations.
The agency’s employees understood that their outdated systems made their jobs more difficult while posing challenges to clients. Moreover, the comprehensive EDDNext modernization had no parallels in other states, so employees were understandably anxious about transitioning to an entirely new way of working, elevating the importance of changing organizational culture and perceptions. The agency needed a plan to get its workforce on board with its transformation.
California’s EDD IT infrastructure and processes were not designed for historic levels of unemployment
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Now underway with its ambitious transformation, the Employment Development Department is working to demonstrate how incremental modernization improves service delivery and benefits to all stakeholders. The agency is taking key steps to transition from its fragmented processes and outdated systems to develop a seamlessly integrated and customer-centric operation.
EDD is currently working on a unified and intuitive interface that simplifies interactions for both employees and customers. The agency is also embracing a customer-focused mindset, resulting in a consolidated profile and a single contact center. This includes the deployment of myEDD, a new website that all EDD clients will use regardless of their particular needs.
Furthermore, the EDD's ability to catch fraud and mitigate risks is also evolving and maturing. With the implementation of better and smarter systems, the EDD will enhance its capabilities to detect and prevent fraudulent activities, safeguarding the integrity of the system. The agency will operate with increased efficiency and transparency, ensuring that clients receive their benefits promptly and without unnecessary hurdles. The post-transformation EDD will stand as a testament to its commitment to delivering exceptional services and achieving strategic objectives.
EDD works to offer a better experience for clients and employees
By implementing a customer-centric approach and modernized processes, the EDD is positioning itself to stay ahead of the curve, address future requirements effectively, and chart a modernization path for other states to follow.
One key aspect of the EDD's preparedness will lie in its growing ability to plan and execute complex, multiyear transformations while effectively serving a record number of existing clients. With the experience gained from the collaboration with KPMG, the EDD has developed and is following a transformation roadmap that guides the agency in implementing incremental changes while keeping the client's needs and strategic objectives at the forefront. This approach will in time enable the agency to respond better to shifting demands and changing circumstances, all while helping to deliver optimal services and improving customer satisfaction, including for its employees.
The integration of various programs under a unified umbrella will enable the EDD to harness economies of scale and achieve operational efficiencies as it continues modernizing. By aligning business and technical processes across programs, EDD will be able to optimize resource allocation, streamline workflows, and enhance coordination. This unified approach is helping to foster collaboration, enhance information sharing, and enable the EDD to leverage data insights to make informed decisions and improve outcomes.
EDD prepares to meet future needs and emergencies
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