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Legislative Audit Bureau n
Report 20-13
September 2020
Unemployment Insurance
Call Centers
Department of Workforce Development
Report 20-13
September 2020
Unemployment Insurance
Call Centers
Department of Workforce Development
Joint Legislative Audit Committee Members
Senate Members:
Assembly Members:
Robert Cowles, Co-chairperson
Samantha Kerkman, Co-chairperson
Chris Kapenga
John Macco
Alberta Darling
John Nygren
Janet Bewley
Melissa Sargent
Tim Carpenter
Katrina Shankland
Report 20-13
September 2020
State Auditor
Joe Chrisman
Deputy State Auditor
for Performance
Evaluation
Dean Swenson
Team Leaders
Noah Natzke
Ross Ryan
Evaluators
James Malone
Nathaniel Staley
Publications Designer
and Editor
Susan Skowronski
LEGISLATIVE AUDIT BUREAU
The Legislative Audit Bureau supports the Legislature in its oversight
of Wisconsin government and its promotion of efficient and effective
state operations by providing nonpartisan, independent, accurate, and
timely audits and evaluations of public finances and the management
of public programs. Bureau reports typically contain reviews of
financial transactions, analyses of agency performance or public policy
issues, conclusions regarding the causes of problems found, and
recommendations for improvement.
Reports are submitted to the Joint Legislative Audit Committee
and made available to other committees of the Legislature and to
the public. The Audit Committee may arrange public hearings on
the issues identified in a report and may introduce legislation in
response to the audit recommendations. However, the findings,
conclusions, and recommendations in the report are those of the
Legislative Audit Bureau.
The Bureau accepts confidential tips about fraud, waste, and
mismanagement in any Wisconsin state agency or program
through its hotline at 1-877-FRAUD-17.
For more information, visit www.legis.wisconsin.gov/lab.
Contact the Bureau at 22 East Mifflin Street, Suite 500, Madison, Wisconsin 53703;
AskLAB@legis.wisconsin.gov; or (608) 266-2818.
September 25, 2020
Senator Robert Cowles and
Representative Samantha Kerkman, Co-chairpersons
Joint Legislative Audit Committee
State Capitol
Madison, Wisconsin 53702
Dear Senator Cowles and Representative Kerkman:
Under the provisions of 2019 Wisconsin Act 185, we have completed a review of the Department of
Workforce Development’s (DWD’s) management of the Unemployment Insurance (UI) program’s
call centers, through which some individuals file initial claims for unemployment benefits.
DWD operates one call center, and two entities under contract with DWD operate two additional
call centers. In recent years, DWD has allowed more individuals to file online their initial claims.
Individuals may file through a call center only if, for example, they do not have internet access or
their claims are based on having worked in Wisconsin and another state.
From March 15, 2020, through June 30, 2020, 38.3 million of the 41.1 million total telephone calls
(93.3 percent) to the call centers were blocked or received busy signals and, therefore, did not reach
the call centers; 6.2 percent of calls were abandoned by individuals before speaking with the call
centers; and 0.5 percent of calls were answered.
From March 15, 2020, through July 31, 2020, DWD’s expenditures for staff at the three call centers
totaled $9.3 million. Over this time period, DWD increased its call center staff from 90 to 188. DWD
contractually required one entity to provide at least 500 full-time equivalent staff positions in that
entity’s call center, which began answering calls on May 20, 2020. However, not until the week of
July 19 were that many positions working in that call center.
From April 26, 2020, through August 22, 2020, only 6.6 percent of all initial claims were filed by
individuals telephoning the call centers. Therefore, the extent to which individuals were unable
to speak with the call centers explains only one reason why some individuals did not receive
unemployment benefits in a timely manner. In future audit work, we will consider other aspects
of DWD’s management of the program.
We appreciate the courtesy and cooperation extended to us by DWD. A response from DWD
follows our report.
Respectfully submitted,
Joe Chrisman
State Auditor
JC/DS/ss
3
2019 Wisconsin Act 185, which was enacted in April 2020, requires the
Legislative Audit Bureau to use risk-based criteria to review selected
programs affected by Act 185 and selected expenditures made with
funds authorized by Act 185. At this time, we have completed a
review of the Department of Workforce Development’s (DWD’s)
management of the Unemployment Insurance (UI) program’s call
centers, through which some individuals file initial claims for
unemployment benefits. DWD operates one call center, and two
entities under contract with DWD operate two additional call centers.
We previously evaluated similar issues in Initial Claims Processing for
Unemployment Insurance (report 14-15).
DWD administers the UI program, which pays monetary benefits to
certain individuals who have lost their jobs. To be eligible to receive
these benefits, an individual typically must:
have been employed in Wisconsin and provide a
valid Social Security number;
have earned a minimum amount of wages from
eligible employment in at least two of the previous
five calendar year quarters; and
not have been terminated for cause or quit
employment, although statutes allow exceptions
for an individual to receive benefits after quitting
employment, such as because child care was
unavailable.
Unemployment Insurance Call Centers
DWD administers the
UI program, which pays
monetary benefits to
certain individuals who
have lost their jobs.
Initial Claims for Unemployment Benefits
Program Call Centers
Call Center Staffing
Future Audit Work
4UNEMPLOYMENT INSURANCE CALL CENTERS
After individuals file initial claims for unemployment benefits and are
found by DWD to be eligible to receive such benefits, they must file
weekly claims to continue receiving them. Currently, individuals
receive from $54 to $370 per week in regular unemployment benefits.
In March 2020, the federal Coronavirus Aid, Relief, and Economic
Security (CARES) Act created additional unemployment benefits,
including those provided through the:
Federal Pandemic Unemployment Compensation
program, which automatically paid individuals who
received regular benefits an additional $600 per week
from March 29, 2020, through July 25, 2020;
Pandemic Unemployment Assistance program,
which provides up to 39 weeks of benefits from
February 2, 2020, through December 26, 2020, to
certain individuals, such as self-employed
individuals, who are ineligible for benefits
provided through other UI programs; and
Pandemic Emergency Unemployment
Compensation program, which provides an
additional 13 weeks of unemployment benefits
from March 29, 2020, through December 26, 2020,
to certain individuals who remain unemployed
after their regular benefits end.
In recent years, DWD modified its information technology (IT)
systems to allow more individuals to file online their initial claims for
unemployment benefits. In November 2014, DWD indicated that it
began to allow individuals to file claims by using mobile devices and to
report their work histories with federal and military employers. DWD
indicated that the proportion of initial claims that were both started and
completed online increased from 57.0 percent from November 2013
through June 2014 to 81.0 percent from November 2014 through
April 2015. DWD indicated that it stopped using an automated
telephone filing system in August 2017 because most individuals were
able to file online. DWD also indicated that it allowed individuals
to use a toll-free telephone number to file their claims beginning in
January 2020.
From March 2019 through June 2019, individuals filed an average of
approximately 4,700 initial claims for unemployment benefits each
week. From March 15, 2019, through June 30, 2019, individuals made
a total of 88,552 telephone calls to the program’s call center. DWD
indicated that none of these calls was blocked.
To complete this evaluation of DWD’s management of the call centers
from March 2020 through August 2020, we interviewed DWD and
In recent years, DWD
modified its IT systems to
allow more individuals to
file online their initial
claims for unemployment
benefits.
UNEMPLOYMENT INSURANCE CALL CENTERS 5
analyzed its data and other information on the number of initial
claims for unemployment benefits, the number of telephone calls to
the program’s call centers, and staffing levels at these call centers.
We also reviewed DWD’s contracts with the two entities that operated
call centers, weekly reports DWD submitted to the co-chairpersons
of the Joint Legislative Audit Committee beginning on May 8, 2020,
and publicly available information about call centers in six other
midwestern states, each of which administers its UI program under
the laws and regulations of that state.
Initial Claims for Unemployment Benefits
We analyzed information that DWD posted on its website about the
number of initial claims for unemployment benefits that individuals
filed from the week of March 1, 2020, through the week of
August 23, 2020. As shown in Figure 1, the number of initial claims
filed increased significantly in March 2020. During the week of
March 22, 2020, individuals filed 116,129 claims, which was the most
in a given week during our review period. The number of initial
claims declined to 13,122 during the week of August 23, 2020.
Figure 1
Number of Initial Claims Filed for Unemployment Benefits, by Week1
1 According to information on DWD’s website.
4,951
69,342
116,129
103,226
22,548
29,727
13,122
0
20,000
40,000
60,000
80,000
100,000
120,000
Week Of
The number of initial claims
filed for unemployment
benefits each week increased
significantly in March 2020.
6UNEMPLOYMENT INSURANCE CALL CENTERS
DWD requires most individuals to file online for unemployment
benefits. Individuals may file through a call center only if they meet
certain requirements, such as if they do not have internet access or if
they cannot file online because, for example, their claims are based on
having worked in Wisconsin and another state.
According to information that DWD reported weekly to the
co-chairpersons of the Joint Legislative Audit Committee, 93.4 percent
of all initial claims were filed online from April 26, 2020, through
August 22, 2020, as shown in Table 1. The remaining 6.6 percent were
filed by telephoning the call centers.
Table 1
Initial Claims for Unemployment Benefits, by Filing Method1
April 26, 2020, through August 22, 2020
Filing Method
Number
Percentage
of Total
Online
389,461
93.4%
Call Centers
27,379
6.6
Total
416,840
100.0%
1 As reported by DWD to the co-chairpersons of the Joint Legislative
Audit Committee.
Program Call Centers
Before May 20, 2020, DWD operated the program’s only call center.
Beginning on that date, all calls to the program’s general telephone
number that is provided to the public were routed to a call center
operated by Alorica, which is a firm under contract with DWD.
Beginning on June 1, 2020, all calls to a separate telephone number
that is provided to the public for the Pandemic Unemployment
Assistance program were routed to a call center operated by
Beyond Vision, which is a nonprofit entity under contract with DWD.
We analyzed DWD’s data on the particular reasons for telephone
calls answered by the program’s three call centers. These reasons
include:
inquiring about the program by individuals,
including those asking about their eligibility for
the program;
filing initial claims for unemployment benefits;
From April 26, 2020,
through August 22, 2020,
DWD reported that
93.4 percent of all initial
claims were filed online.
UNEMPLOYMENT INSURANCE CALL CENTERS 7
following up on issues related to filing weekly
claims for unemployment benefits;
requesting assistance to access the online accounts
that individuals use to file claims;
filing weekly claims for unemployment benefits;
inquiring about the Pandemic Unemployment
Assistance program, including individuals asking
about their eligibility for the program and filing
claims under the program;
inquiring about the program by employers; and
requesting assistance from translators to file
claims for unemployment benefits.
As shown in Table 2, 41.6 percent of all telephone calls answered
by the program’s three call centers from March 15, 2020, through
June 30, 2020, pertained to program inquiries, which include
reasons for telephone calls that did not fit into the other categories.
In addition, 12.7 percent of all telephone calls pertained to filing
initial claims for unemployment benefits.
Table 2
Number of Answered Calls to Program Call Centers, by Purpose1
March 15, 2020, through June 30, 2020
Purpose
Number
Percentage
of Total
Inquiring about the program
93,861
41.6%
Filing initial claims
28,728
12.7
Following up on issues related to weekly claims
25,059
11.1
Accessing online accounts
24,000
10.6
Inquiring about the Pandemic Unemployment Assistance program
19,687
8.7
Filing weekly claims
19,329
8.6
Inquiring about the program by employers
12,684
5.6
Requesting translation assistance
2,516
1.1
Total
225,864
100.0%
1 According to DWD’s data.
From March 15, 2020,
through June 30, 2020,
41.6 percent of all
telephone calls to the
program’s three call
centers pertained to
program inquiries.
8UNEMPLOYMENT INSURANCE CALL CENTERS
We analyzed DWD’s data on the number of telephone calls to the
call centers from the week of March 15, 2020, through the week of
June 21, 2020. We also reviewed but did not independently confirm
the accuracy of summary information that DWD reported to the
co-chairpersons of the Joint Legislative Audit Committee from the
week of June 28, 2020, through the week of August 16, 2020. As
shown in Figure 2, 5.8 million telephone calls were made to the
program’s call center during the week of April 12, 2020. The number
of telephone calls declined after early-May 2020.
Figure 2
Telephone Calls to Program Call Centers, by Week1
1 According to DWD’s data through the week of June 21. Thereafter, according to summary information that
DWD reported to the co-chairpersons of the Joint Legislative Audit Committee.
Call Disposition
If all call center staff were busy, some individuals who telephoned
were placed on hold in queues, which DWD typically limited in size
in order to prevent individuals from waiting for extended periods of
time. Individuals could request to be called back when they reached
the front of the queues, rather than remaining on hold. If individuals
placed on hold hung up before speaking with call center staff, DWD
considered these telephone calls to have been abandoned. If more
94,631
1,369,430
5,781,621
5,473,223
367,412
55,698
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Week Of
During the week
of April 12, 2020,
5.8 million telephone
calls were made to the
program’s call center.
UNEMPLOYMENT INSURANCE CALL CENTERS 9
telephone calls were received than the number of available spots in a
queue, those calls were blocked, and the individuals were instructed
to telephone again later. If more telephone calls were received than
a given call center’s telephone system could register, individuals
received a busy signal. DWD does not define telephone calls that
resulted in busy signals to have been blocked. However, in our
analysis we combined the telephone calls that were blocked and the
telephone calls that resulted in busy signals because the individuals
were unable to reach the call centers.
DWD is able to adjust the capacity of its call center to handle different
numbers of telephone calls. As of early-March 2020, its call center
could handle 225 telephone calls simultaneously, including individuals
speaking with staff and individuals placed on hold. DWD reported
that it received more than 1.5 million telephone calls during the
week of March 22, 2020. On March 26, DWD increased the capacity
of the call center to handle 690 telephone calls simultaneously.
We analyzed DWD’s data to determine the number of telephone calls
that were blocked or resulted in busy signals, were abandoned, and
were answered. As shown in Table 3, 38.3 million of the 41.1 million
total telephone calls (93.3 percent) to the program’s call centers were
blocked or resulted in busy signals from March 15, 2020, through
June 30, 2020, and 0.5 percent of all telephone calls were answered.
Table 3
Number of Telephone Calls to Program Call Centers, by Disposition1
March 15, 2020, through June 30, 2020
Disposition
Number
Percentage
of Total
Blocked or Busy Signals
38,317,664
93.3%
Abandoned
2,543,065
6.2
Answered
225,864
0.5
Total
41,086,593
100.0%
1 According to DWD’s data.
From March 15, 2020, through
June 30, 2020, 38.3 million
of the 41.1 million telephone
calls (93.3 percent) to the
program’s call centers
were blocked or resulted
in busy signals.
10UNEMPLOYMENT INSURANCE CALL CENTERS
As shown in Figure 3, almost all telephone calls to the program’s
call centers were blocked or resulted in busy signals each day from
late-March 2020 through May 2020. Most of the remaining calls were
abandoned. On almost all days in April 2020 and May 2020, less
than 1.0 percent of all calls were answered. Beginning in June 2020,
the proportion of telephone calls that were blocked or resulted in
busy signals declined, and DWD reported that few calls were
blocked or resulted in busy signals in August 2020. DWD provided
us with summary information indicating that the program’s
call centers received 55,698 telephone calls during the week of
August 16, 2020, and it indicated that none of them was blocked
or resulted in busy signals.
Figure 3
Extent to Which Telephone Calls to Program Call Centers Were Blocked
or Resulted in Busy Signals, by Day1
1 According to DWD’s data.
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Percentage of Total
UNEMPLOYMENT INSURANCE CALL CENTERS 11
Beginning on May 8, 2020, DWD reported to the co-chairpersons of the
Joint Legislative Audit Committee on the weekly numbers of telephone
calls that were blocked, abandoned, and answered. However, DWD did
not report on the number of telephone calls that resulted in individuals
receiving busy signals. From April 26, 2020, through June 27, 2020,
DWD reported that 4.9 million telephone calls were blocked. However,
we found that over this time period a total of 19.6 million telephone
calls were either blocked or resulted in busy signals. Individuals were
unable to reach the call centers if their telephone calls were blocked or
they received busy signals.
DWD should modify its weekly reports to indicate the total number
of telephone calls in which individuals were unable to reach the
call centers, including telephone calls that were blocked and
telephone calls that resulted in busy signals. Doing so will provide
the co-chairpersons with complete information.
Recommendation
We recommend the Department of Workforce Development:
include in its weekly reports to the co-chairpersons
of the Joint Legislative Audit Committee the total
number of telephone calls to Unemployment
Insurance program call centers that resulted in
individuals being unable to reach the call centers,
including telephone calls that were blocked and
telephone calls that resulted in busy signals; and
report to the Joint Legislative Audit Committee by
January 8, 2021, on its efforts to implement this
recommendation.
Records Disposition Authorization
We found that DWD retains certain call center data for only six
months. In response to our request for data from mid-March 2019
through June 2019, DWD indicated that it retained data on blocked
telephone calls for only six months. DWD indicated that it retains
reports about blocked calls according to a general records schedule
that requires it to retain all reports shared with other entities for at
least four years, but that does not require it to retain the data
associated with these reports.
DWD’s weekly reports to
the co-chairpersons of
the Joint Legislative Audit
Committee did not
indicate the total number
telephone calls in which
individuals were unable
to reach the call centers.
DWD retains certain call
center data for only
six months.
12UNEMPLOYMENT INSURANCE CALL CENTERS
DWD should develop a records disposition authorization pertaining
to all data associated with telephone calls to program call centers
and submit it to the Public Records Board for consideration. An
appropriate period of time to retain such data may be at least four
years, which is the length of time that DWD retains reports about
blocked calls. Retaining such data will allow DWD to better manage
the program. Until the Public Records Board approves a records
disposition authorization pertaining to data associated with
telephone calls to the program’s call centers, DWD is required to
retain all such data.
Recommendation
We recommend the Department of Workforce Development
develop a records disposition authorization
pertaining to data associated with telephone calls
to Unemployment Insurance program call centers
and submit it to the Public Records Board for
consideration; and
report to the Joint Legislative Audit Committee by
January 8, 2021, on its efforts to implement this
recommendation.
Call Wait Times
We determined the average amount of time that individuals waited
on hold before speaking with the program’s call centers for the
period from March 15, 2020, through June 30, 2020. As shown in
Table 4, individuals waited on hold for an average of 52.2 minutes
before speaking with DWD’s call center. After waiting on hold,
individuals spoke with:
DWD’s call center for an average of 11.7 minutes each;
Alorica’s call center for an average of 15.4 minutes
each, including the amount of time that
individuals spent within the firm’s telephone
menu system; and
Beyond Vision’s call center for an average of
8.4 minutes each.
From March 15, 2020,
through June 30, 2020,
individuals waited on hold
for an average of
52.2 minutes before
speaking with DWD’s
call center.
UNEMPLOYMENT INSURANCE CALL CENTERS 13
Table 4
Average Number of Minutes That Individuals Waited on Hold
Before Speaking with Program Call Centers1
March 15, 2020, through June 30, 2020
Call Center Operator
Number of
Minutes
DWD
52.2
Alorica
24.5
Beyond Vision
0.5
1 According to DWD’s data.
DWD directed Alorica and Beyond Vision to schedule appointments
for individuals to speak with its call center when more-complex issues
needed to be resolved, such as correcting information erroneously
reported by individuals and processing claims from individuals who
had worked in multiple states. DWD also directed the two entities to
do so if individuals were dissatisfied and asked to speak with a
manager. From May 20, 2020, through June 30, 2020, the two entities
scheduled a total of 15,844 appointments with DWD’s call center, and
these appointments were scheduled to occur an average of 3.3 days
after the initial telephone calls.
Call Center Staffing
From March 15, 2020, through July 31, 2020, DWD’s expenditures for
staff at the program’s three call centers totaled $9.3 million, including
$6.3 million for Alorica and Beyond Vision staff and $3.0 million for
DWD call center staff. The amounts paid to Alorica and Beyond
Vision include $1.5 million for staff training. High turnover among
Alorica staff resulted in increased training expenditures.
DWD’s Call Center
As shown in Table 5, DWD increased its call center staff from 90
on March 31, 2020, to 188 on July 31, 2020. The increase occurred
primarily because DWD hired additional full-time staff and
limited-term employees (LTEs) to work in its call center. DWD also
temporarily reassigned other DWD staff and staff from other state
agencies to work in its call center.
From March 15, 2020,
through July 31, 2020,
DWD’s expenditures for
staff at the program’s
three call centers totaled
$9.3 million.
DWD increased its call
center staff from 90 on
March 31, 2020, to 188
on July 31, 2020.
14UNEMPLOYMENT INSURANCE CALL CENTERS
Table 5
Number of Staff in DWD’s Call Center
March 31, 2020, through July 31, 2020
DWD Call
Center Staff
Other
DWD Staff
Other State
Agency Staff
Total
March 31
61
29
0
90
April 30
59
29
6
94
May 31
95
29
7
131
June 30
149
29
7
185
July 31
136
29
23
188
As shown in Table 6, DWD hired a total of 98 call center staff from
March 15, 2020, through July 31, 2020, including 56 LTEs. DWD
began recruiting for these positions on March 23, 2020, but indicated
that it needed time to review the 850 applications it received,
conduct interviews, and perform background checks. DWD
indicated that the hired staff received four weeks of training and,
thus, were not ready to answer calls until June 8, 2020. Statutes allow
LTEs to work a maximum of 1,040 hours. DWD indicated that it
planned to hire additional individuals into project positions, which
can last for up to four years, in order to maintain the necessary
staffing levels at its call center.
Table 6
Number of Staff Hired to Work in DWD’s Call Center1
March 15, 2020, through July 31, 2020
Date Hired
Permanent
Staff
LTEs
Total
May 11
18
6
24
May 26
7
10
17
June 8
17
18
35
June 22
0
22
22
Total
42
56
98
1 DWD did not hire any call center staff from March 15, 2020, through May 10, 2020.
UNEMPLOYMENT INSURANCE CALL CENTERS 15
As shown in Table 7, DWD increased the number of hours per week
that the program’s call centers were available to help individuals to
file claims. DWD indicated that if individuals were on hold when its
call center closed on a given day, staff worked overtime to speak
with all of these individuals. DWD’s data indicated that individual
full-time staff at its call center worked an average of 1.6 hours of
overtime per week from March 15, 2020, through July 31, 2020, and
that such individuals were paid a total of $131,900 in salary and
fringe benefits costs for overtime over this 4.5-month period.
Table 7
Hours That Telephone Calls Were Answered by the Program’s Call Centers1
Time Period
Weekdays
Saturday
Total Hours
per Week
March 15 through May 19
7:35 a.m. until 3:30 p.m.
None
39.58
May 20 through July 5
7:00 a.m. until 5:00 p.m.
None
50.00
July 6 through August 31
6:15 a.m. until 5:30 p.m.
7:00 a.m. until 1:30 p.m.
62.75
1 Indicates the maximum number of hours that at least one call center was open on a given day.
DWD indicated that it did not have sufficient staff to increase call
center hours until Alorica staff were available on May 20, 2020, and
that it did not have sufficient staff to open its call center on Sundays.
We found that from March 15, 2020, through August 22, 2020,
41,239 individuals filed initial claims on Saturdays, compared to
99,277 individuals who did so on Sundays. DWD indicated that it
did not plan to further increase its call center’s hours, which it
believes are now sufficient.
Other Call Centers
Concerns have been raised that DWD did not contract quickly enough
with other entities to help answer telephone calls from individuals
filing claims. Table 8 shows a timeline of events pertaining to DWD’s
efforts to contract with Alorica for call center services.
DWD increased the number
of hours per week that the
program’s call centers were
available to help individuals
to file claims.
16UNEMPLOYMENT INSURANCE CALL CENTERS
Table 8
Alorica Contract Development
Timeline of Key Events
Date
Event
Week of March 15
94,600 telephone calls were made to DWD’s call center.
Week of March 29
2,908,500 telephone calls were made to DWD’s call center.
April 9
DWD requested that the Department of Administration (DOA) waive the
competitive bidding process so that it could more quickly execute a contract.
April 16
DOA waived the competitive bidding process.
April 20
DWD issued a request for bid.
April 23
Responses to DWD’s request for bid were due.
May 7
DWD executed its contract with Alorica.
May 20
Alorica’s call center began answering telephone calls.
DWD contractually required Alorica to provide at least 500 full-time
equivalent (FTE) staff positions. DWD did not contractually specify
the date when Alorica needed to provide these positions, but it
contractually required Alorica to provide the supervision and
administrative support necessary to operate a call center of this size
by May 21, 2020. DWD indicated that its contract contains no
provisions for assessing monetary penalties because it needed to
quickly execute the contract, and it believed that Alorica would
comply with the contract to avoid a negative performance review.
Figure 4 shows the average daily number of FTE staff positions in
Alorica’s call center. Not until the week of July 19 did more than a
daily average of 500 FTE staff positions work in the call center.
DWD indicated that it took time to provide Alorica’s call center staff
with access to its IT systems, and that it was busy with other tasks,
such as increasing the number of staff in its own call center and
providing them with training and access to its IT systems.
Not until the week of
July 19 did more than a
daily average of 500 FTE
staff positions work in
Alorica’s call center.
UNEMPLOYMENT INSURANCE CALL CENTERS 17
Figure 4
Alorica Call Center
Average Number of FTE Staff Positions, by Week
We found that DWD did not require Alorica or Beyond Vision to
provide it with certain contractually required information on the
effectiveness of their call centers. DWD contractually required both
entities to report on the extent to which they resolved issues after
the initial telephone calls of individuals. However, DWD indicated
that the entities did not collect this information, and that it did not
regard this information as useful because some individuals may
repeatedly telephone in order to try to obtain favorable answers.
DWD should enforce the provisions in its contracts with Alorica and
Beyond Vision, including by requiring both entities to report on the
extent to which they resolved issues after the initial telephone calls
of individuals. Reviewing the reported information will help DWD
to assess the effectiveness of the two entities.
176.6
133.5
223.7
258.9
328.9
391.1
436.4
632.6
592.7
0
100
200
300
400
500
600
700
May 31
June 7
June 14
June 21
June 28
July 5
July 12
July 19
July 26
Week Of
DWD did not require
Alorica or Beyond Vision
to provide it with certain
contractually required
information on the
effectiveness of their
call centers.
18UNEMPLOYMENT INSURANCE CALL CENTERS
Recommendation
We recommend the Department of Workforce Development:
require Alorica and Beyond Vision to report
contractually required information on the extent to
which issues were resolved after the initial telephone
calls of individuals to call centers;
use this information to assess the effectiveness of
Alorica and Beyond Vision; and
report to the Joint Legislative Audit Committee by
January 8, 2021, on its efforts to implement these
recommendations.
Comparisons with Other States
We assessed publicly available information on the hours of
program call centers in other midwestern states, each of which
administers its UI program under the laws and regulations of that
state. As shown in Table 9, Wisconsin’s call center was open for the
second-highest number of hours per week among the call centers
operated by seven midwestern states as of July 30, 2020.
Table 9
Hours That Program Call Centers Were Open, by State1
As of July 30, 2020
State
Weekday Hours
Weekend Hours
Total Hours
per Week
Ohio
7:00 a.m. to 7:00 p.m.
Sat. 9:00 a.m. to 5:00 p.m.
Sun. 9:00 a.m. to 1:00 p.m.
72.00
Wisconsin
6:15 a.m. to 5:30 p.m.
Sat. 7:00 a.m. to 1:30 p.m.
62.75
Michigan
8:00 a.m. to 6:00 p.m.
Sat. 7:00 a.m. to 2:00 p.m.
57.00
Illinois
7:30 a.m. to 6:00 p.m.
None
52.50
Indiana
8:00 a.m. to 4:30 p.m.
None
42.50
Iowa
8:00 a.m. to 4:30 p.m.
None
42.50
Minnesota
8:00 a.m. to 4:30 p.m.
None
42.50
1 Information obtained from state agency websites.
Wisconsin’s call center
was open for the second-
highest number of hours
per week among the call
centers operated by seven
midwestern states.
UNEMPLOYMENT INSURANCE CALL CENTERS 19
As shown in Table 10, as of July 30, 2020, individuals in Wisconsin
could file online their initial claims for unemployment benefits
during 75.5 hours per week, which was the lowest among the
six midwestern states for which we could obtain this information.
Individuals in Wisconsin could file online their weekly claims
during 149.0 hours per week, which was more than in three
other midwestern states. DWD indicated that it would require
considerable effort to increase the number of hours that individuals
could file online and that such an effort could hinder its ability to
pay benefits, including those provided under new federal programs.
Table 10
Number of Hours per Week That Individuals Could File Online
for Unemployment Benefits, by State and Type of Claim1
As of July 30, 2020
Hours per Week
State
Initial Claims
Weekly Claims
Michigan
168.0
168.0
Ohio
168.0
168.0
Illinois
154.0
82.5
Iowa
89.5
59.0
Minnesota
84.0
84.0
Wisconsin
75.5
149.0
Indiana
Unknown
165.0
1 Information obtained from state agency websites.
Future Audit Work
As noted, only 6.6 percent of all initial claims were filed by
individuals telephoning the call centers from April 26, 2020, through
August 22, 2020. Therefore, the extent to which individuals were
unable to speak with the call centers explains only one reason why
some individuals did not receive unemployment benefits in a timely
manner. In future audit work, we will consider other aspects of
DWD’s management of the program.
Individuals in Wisconsin
could file online their
initial claims for
unemployment benefits
during 75.5 hours per
week, which was the
lowest among six
midwestern states.
Response
September 21, 2020
State Auditor Joe Chrisman
22 East Main St. Suite 500
Madison, WI 53703
Dear State Auditor Chrisman,
Thank you for the Legislative Audit Bureau's review of the Department of Workforce Development's (DWD)
management of the Unemployment Insurance (UI) program's call centers. Due to the widespread impact of
the COVID-19 pandemic on our state and its workers, DWD has made substantial operational improvements
while working through the constraints that exist on the program notwithstanding the pandemic—in particular,
the antiquated technology and limited trained personnel—coupled with the sudden onslaught of an
unprecedented number of claims. We appreciate and accept your recommendations to improve the
transparency and oversight of UI operations both during and after this public health emergency.
As reflected in your report, the COVID-19 pandemic and the efforts to slow the spread of this deadly virus
triggered historic numbers of claims in a matter of weeks. Never has the state experienced such an
incredible surge in claims so quickly. During previous economic downturns, claims slowly increased over
time. For instance, during the Great Recession, Wisconsin's highest weekly Regular UI claim total,
approximately 195,000 claims, occurred in January 2010, three years after the recession began. It was within
just six weeks of COVID-19 when we saw a peak of approximately 321,000 weekly claims made this year.
In 2010, lessons should have been learned about the inability of the UI benefits system to keep up with high
demand brought on by a recession—much less the unforeseen situation of immediate mass shut-downs due
to a pandemic. Yet, UI's DWD's core benefits system has not been modernized. DWD had begun planning
for modernization in 2019. Thankfully, from 2014-2016 some enhancements were made to customer-facing
online filing systems. The online Initial and Weekly Claims applications and Claimant portal have made it
possible for UI to take more than 7.1 million weekly claims into our system since March 15. DWD processed
1.7 million claims in all of 2019.
In 2017, the Department adopted a policy that required online filing, with exceptions given to file by phone in
certain circumstances. An exception is granted if an individual is unable to read, is unable to access the
internet due to a legal obligation, has a disability that they believe prevents them from filing online, and/or if
the individual is a non-English speaker. Typically, claimants who do not have access to the internet or lack
computer skills are directed to their local job center or library to file online. Due to the many local access
points closed due to COVID-19 and the lack of reliable residential internet connectivity across all regions of
the state, DWD is also granting exceptions to those with limited access to the internet or who have poor
computer skills. Exceptions have been granted liberally throughout the pandemic, as evidenced by the
increase in claims filed by claims specialists in the call centers.
Many claimants impacted by COVID-19 have never before applied for UI so understandably had many
questions about the program and the application process, as well as about the new programs and changes
passed by the federal and state governments. DWD's antiquated IT system hamstrung the ability to quickly
implement new changes (e.g., relaxing eligibility requirements) and programs (e.g., the federal UI programs
under the CARES Act), which prompted even more calls and questions into the help center.
It was essential to enhance and stabilize DWD's IT and telephone systems in order to serve claimants by
Department of Workforce Development
Secretary’s Office
201 E. Washington Avenue
P.O. Box 7946
Madison, WI 53707
Telephone: (608) 266-3131
Fax:
(608) 266-1784
Email:
sec@dwd.wisconsin.gov
UCD-7352-E (R. 05/2013)
http://unemployment.wisconsin.gov
Tony Evers, Governor
Amy Pechacek, Transition Director
SEC-7792-E (R. 09/2020)
http://dwd.wisconsin.gov/
telephone. UI received over 5.7 million calls in one week, which is about a 20,000% increase over 2019's
busiest week. DWD's Telecom team, with the help of the Department of Administration, increased the call
capacity of the DWD Call Center by more than 200% and made it possible to accept 690 simultaneous calls.
This change went into effect on April 7, 2020.
Along with increased system capacity, UI also required a significant number of individuals to answer the
phones and process claims. The public health emergency presented additional operational challenges in
making this possible. DWD employees were required to transition from large call centers to work from home.
DWD, and especially the UI Division, is subject to strict data security compliance requirements from many
agencies, including the DOL, IRS, SSA, and DOA. DWD worked to offer the same level of protection to the
public in staff's home networks as is available in the highly regulated state network.
DWD management also worked quickly to expand the number of UI staff. DWD temporarily reassigned
136 non-UI DWD employees into UI, representing 13% of our non-UI staff. DWD has also coordinated with
DOA for interagency reassignments, and to date we have had 149 additional staff helping from cabinet
agencies, the legislature, and other areas of state government. The Department also made more than 473
external hires in a matter of a few short months. This, too, is unprecedented given the anticipated time to fill
one position in state service is 60 days. While DWD, with the help of DOA's Division of Personnel and
Management, took many steps to expedite the hiring process, the agency was required to work through the
state's competitive hiring process, which, by statute and administrative rules, requires agencies to develop
and administer a standard and fair application process that provides applicants with consistent questions and
expectations and that is reviewed with consistent scoring criteria that is applied via the uniform evaluation of
Subject Matter Experts.
Understanding the need would be greater than external hires and government transfers could meet, DWD
began planning and drafting in early April to solicit bids later that month for external vendors to assist with
claims processing, customer service, and adjudication. DWD signed its first contract with Alorica, a call
center vendor, on May 7. An initial 50 Alorica staff began taking calls on May 20. DWD trained and
onboarded additional waves of agents until reaching the contractually required 500 agents on July 20. DWD
also signed a contract with Beyond Vision to offer 40 call center agents to specifically help with PUA claims.
Beyond Vision agents began accepting calls on June 1.
Having the additional UI Benefit call center staff on board quickly led to improvements for both claimants and
employers and expanded capacity for existing DWD staff to handle more challenging calls and claims. The
number of calls goes up dramatically when individuals are not able to get through. By answering more calls,
the number of repeat callers was quickly reduced. For example, from May 20 through June 30, there were
507,627 unique callers that made a total of 4,749,095 calls to Alorica. The percentage of answered calls
continued to increase until we reached the 100% mark the week of July 27. As of August 3, UI was nearly
able to accept all calls into the UI Benefit Center queue. With the additional staff able to answer more calls,
call volume has decreased by over 99% since peak volume. In Figure 1 and Figure 2 you can see a more
complete picture of how the increased staffing dramatically impacted the call queue.
Figure 1
July
August
September
Weeks 7/6 - 7/27
Weeks 8/3 - 8/31
Week 9/7
Answered
295,136
67.09%
321,573
89.77%
45,077
78.31%
Abandoned
107,901
24.53%
35,867
10.01%
12,393
21.53%
Unsuccessful
Attempts
36,896
8.39%
768
0.21%
95
0.17%
Total
439,933 100.00%
358,208 100.00%
57,565 100.00%
Figure 2
Source: CenturyLink Attempts – CenturyLink Completed + Blocked Calls
Note: Excludes 3/27 data, as blocked calls were lost for that day within the Centurion data.
UI's antiquated benefits system restricts claims processing staff from using the claims subsystem in order to
process and issue payments each night. Processing claims during execution of payment processing
programs can result in data corruption and incorrect payment calculations. Once UI stops accepting new
calls each day, staff continue to perform hours of work to clear call queues, call back claimants, process
claims, and release payments in time for nightly electronic bank processing (ACH processing) of payments.
With the onboarding of our call center vendors, DWD was able to change UI staffing schedules and expand
call center availability by over 23 hours each week.
Due to the significant access to personally identifiable information, including social security numbers, all UI
hires must pass a rigorous background screening, including for some positions, a federal fingerprinting
background check. Because of the highly technical nature of the UI program, call center staff must be
experienced, well-trained, and skilled. Entry-level call center staff are not qualified to respond to many of the
complex issues that arise in UI. Therefore, the contracts called for Alorica and Beyond Vision to "triage calls"
and "answer general questions on unemployment benefits." As noted in the report, 41.6 percent of all
telephone calls pertained to program inquiries, rather than claims issues. These are the calls that the
contractors could initially handle to reduce the burden on the experienced DWD staff in the UI call center.
You can also see how the increased staffing has impacted the average speed of calls be answer in Figure 3.
Figure 3
Over time, DWD has worked with Alorica to train agents on more complex claims issues to provide enhanced
services at the first point of contact. Throughout the summer, more agents were able to authorize claimants
to use online services, complete weekly claims or initial claims, and update wages. Some are also now being
trained to clarify weekly claim follow-up issues, recertify and resolve incomplete weekly claims, and clarify
and remove issues reported in error. Using the more experienced vendor agents to provide these services
has allowed DWD staff to focus on other areas of customer service and claims processing. Most recently
these DWD staff have been able to help process PUA claims and review claims for accuracy.
DWD did not include a stipulated penalty clause in its contracts with Alorica and Beyond Vision because it
determined that non-monetary enforcement mechanisms were sufficient to ensure quality contractor
performance. UI staff monitors calls to review the customer service and accuracy of information provided,
provides feedback, and discusses any issues and improvements each week.
In addition to the call centers, DWD has also contracted with a vendor (Nelnet) to provide 200 adjudicators
and 100 claims processors. It has been important to address all steps in the process—application,
processing, adjudication, and appeals--in order to reduce an individual's need to call our help line. We
understand now, as we did then, that when claims are resolved, the call volume will drastically reduce.
The Department has worked to overcome the unique challenges presented throughout the COVID-19
pandemic and is committed to continue improving operations and management to better serve Wisconsin
residents. We appreciate the additional review and recommendations provided through this audit. We accept
all recommendations.
Recommendation 1: DWD include in its weekly reports to the co-chair-persons of the Joint Legislative Audit
Committee the total number of telephone calls to Unemployment Insurance program call centers that
resulted in individuals being unable to reach the call centers, including telephone calls that were blocked and
telephone calls that resulted in busy signals; and report to the Joint Legislative Audit Committee by January
8, 2021 on its efforts to implement this recommendation.
DWD accepts this recommendation. On May 1, 2020, Joint Audit Committee Co-Chairs requested a list of
specific information be provided to them on a weekly basis, including "the total number of calls to DWD’s call
centers" and "the number of calls answered, the number abandoned, and the number blocked." Since May 8,
DWD has worked to comply with this request and report the information.
For purposes of tracking calls, UI adopted DWD's call center distribution software vendor Centurion's
definition of blocked calls. Under this definition, blocked calls are those that enter the UI Automatic Call
Distribution system menu but are not placed in queue or passed to an agent because the queue is full. (The
caller is told to call back later.) Calls in which callers receive a busy signal, including a fast busy signal, single
beep, dead air, etc. are not included in this definition because they do not enter the system. Busy signals are
received by the callers when all sessions are exhausted. Busy signals were included in the total "Calls to the
UI Benefit Centers" reported metric.
We will separate and specifically report on the number of calls that receive a busy signal beginning on the
report dated September 25.
Recommendation 2: DWD develop a records disposition authorization pertaining to data associated with
telephone calls to Unemployment Insurance program call centers and submit it to the Public Records Board
for consideration; and report to the Joint Legislative Audit Committee by January 8, 2021 on its efforts to
implement this recommendation.
DWD accepts this recommendation. DWD will develop a records disposition authorization (RDA) for data
associated with telephone calls to the UI call center and submit it to the Public Records Board for
consideration with DWD's submission in the first quarter of 2021. DWD has already completed its quarterly
submission for the last quarter of 2020 by its deadline on September 11.
Recommendation 3: DWD require Alorica and Beyond Vision to report contractually required information on
the extent to which issues were resolved after the initial telephone calls of individuals to call centers; use this
information to assess the effectiveness of Alorica and Beyond Vision; and report to the Joint Legislative Audit
Committee by January 8, 2021 on its efforts to implement this recommendation.
DWD accepts this recommendation. DWD is committed to continually improving our customer service and
has worked with Alorica and Beyond Vision to offer continuing education and coaching for the call center
agents. In addition to reviewing the contractually required information, DWD will also continue monitoring
calls to assess the quality of customer service and information provided.
Sincerely,
Rob Cherry
Deputy Secretary