The state workers' compensation agency has been able to fill one position vacated by firings, although management is struggling to fill another.

Workforce Safety and Insurance recently hired Bob McConnell as its human resources director, a position previously held by Billi Peltz, who was fired on March 12 after a contentious review said trust in her department needed to be restored.

But the agency is having difficulty filling the internal auditor position, vacated when Kay Grinsteinner was fired by the WSI board after the same report said she mishandled her job and had "a disturbing sense of self-importance and lack of judgment."

Both Peltz and Grinsteinner had filed requests for whistleblower protection in late 2007; Peltz said she feared retaliation for her part in cooperating with law enforcement during an investigation into potential wrong-doings at the agency, while Grinsteinner reported concerns to the state auditor's office about handling of claims.

Bruce Furness, interim director of WSI, said about 15 people applied for the human resources position, of which four were interviewed. McConnell took the position at $64,223.

Furness said the salary is commensurate with experience.

McConnell's human resources career is rooted in medical care, having recently come to Bismarck from working for the hospital in Dickinson. Prior to Dickinson, he worked at a clinic in Hettinger.

McConnell has one person reporting directly to him and will assist with traditional human resources functions, including hiring, reviews and personnel issues.

There were eight applicants for the internal auditor position, which reports directly to the board of directors' audit committee. Furness said the pool was narrowed to three, of which one dropped out. The person they offered the position to declined two separate offers.

"He just felt, from a financial position, he would take a cut in salary,"Furness said.

The applicant was an internal auditor working for an insurance company in Minneapolis. Salary range for the auditor's position is $53,231 to a max of $79,846.

The applicant was offered the higher end of the range, although Furness said one concern was the inability to grow in the position.

The interim director said the aftermath of the firings and the climate surrounding the internal auditor's position may have had a detrimental affect on the hiring process.

"Just the turmoil that's been up here for awhile,"Furness said. "I think people are aware of that."

The agency is still trying to heal from a negative 2006 state audit citing morale problems, human resources issues and mismanagement, as well as fallout from felony charges filed - and later dropped - against former executive director Sandy Blunt. Blunt was removed from his position in December 2007; shortly after, the chair of the board of directors resigned.

Furness took the interim director position in early April and continues to tout the accomplishments and loyalty of the employees through the turmoil. Employees also say Furness provides clear direction and a more calm work environment.

Furness said the hiring committees have been very open with the applicants about the issues the agency has faced. As for the internal auditor search, they plan to simply begin again.

"We thought we had great opportunities from that person,"he said. 'Sometimes, when that happens, you end up with an even better one."

(Reach reporter Crystal R. Reid at 250-8261 or crystal.reid@;bismarcktribune.com.)