Employee Information Meeting New Pay Plans and Performance Management Process.

Employee Information Meeting

New Pay Plans and Performance Management Process

Background All of this began in the 2006 Legislature The Legislature hired the Hay Group to conduct

a salary survey in Fall of 2006 Formation of the State Employee Pay

Philosophy Task Force and the State Employee Compensation Oversight Commission

Representatives from all three Branches of State Government served on the Commission

Background (cont)

The Commission met throughout the summer and Fall of 2007

Directed the Hay Group to prepare recommendations for the redesign of the State’s classified pay plan

The Hay Group proposed to replace the State’s one-size-fits all matrix with five occupationally based pay plans

Background (cont)

The Commission voted unanimously to adopt the recommendations of the Hay Group

Recommendations then presented to Joint Committee in 2008, which in turn voted unanimously to propose the Commission’s recommendations to the 2008 Legislature

Culminated in the passage of 2008 House Bill 2916

Background (cont)

House Bill 2916: Authorized the adoption of the five new pay plans and

the development of a new Performance Management process for the State’s classified service;

Set out the State’s Compensation Philosophy; Established an Oversight Committee to oversee;

implementation of the new plans; and Provided a five-year funding plan for market

adjustments for State employees

Implementation

The Hay Group recommended that the new pay plans be implemented over a five year period This was recommended for a number of reasons Estimated to cost over $70 million to bring the classified workforce to market Break that cost up over five years Also proposed to divide the classified workforce into three Groups for implementation purposes

Implementation (cont)

FY2009 FY2010 FY2011 FY2012 FY2013

Group 1

Prep & Market

Adjust

Dry Run & Market Adjust

Implement

& Market Adjust

Maintain Maintain

Group 2

Market

Adjust

Prep & Market

Adjust

Dry Run &

Market Adjust

Implement

& Market Adjust

Maintain

Group 3

Market Adjust

Market Adjust

Prep & Market

Adjust

Dry Run &

Market Adjust

Implement

& Market Adjust

Implementation (cont) The first year of each Group’s implementation

will involve several important steps, with a classification review of every position in the Group and salary surveys being the most critical

Must also begin work on amending policies, regulations and statutes, as well as the State’s SHARP payroll and accounting system

A five-year implementation period also allows for a “dry run” year in Groups’ second year

Basic Vocational Pay Plan Classifications assigned to this plan perform more

structured, routine work requiring basic vocational knowledge

Performance can be measured on a pass/fail basis.

Most similar to our current plan, but different in a number of ways

There will be 9 steps, each 3% apart and movement through the steps below market will be more rapid than for steps above market

Basic Vocational Pay Plan (cont)

Sample salary range for this plan

Pay Step 1 2 3 4 5 6 7 8 9 Difference in Steps 3% 3% 3% 3% 3% 3% 3% 3% Timing of Step Movement 6 6 9 9 12 12 12 12 (Months)

Management Pay Plan

This plan is for the highest level classified positions in the State workforce, and it is the most different from what we have now

Open pay ranges, with a minimum and a maximum rate

Movement will be based solely on performance – the ONLY purely performance driven plan of the five new plans

Protective Services Pay Plan This plan is for all uniformed Corrections and

Juvenile Justice Authority officers, Highway Patrol troopers and all classifications that meet the statutory definition of “police officer” or “law enforcement officer”

This is a step plan but different from the Basic Vocational Plan and our current matrix

Steps will be 3% apart and movement through the steps below market will be more rapid than for steps above market movement will be

Protective Services Pay Plan (cont) Movement will be based on a combination of

longevity, performance and the accomplishment of “milestone events” for these types of jobs

These are typically such things as the completion of specific training, certification or qualifications

Committees consisting of employees and managers from these professions will be formed to assist in establishing the “milestone events” for movement for these positions

Protective Services Pay Plan (cont) Sample salary range for this plan

Pay Step 1 2 3 4 5 6 7 8 9 10 Difference in Steps 3% 3% 3% 3% 3% 3% 3% 3% 3% Timing of 6 mos. 6 mos. *1 *1 *1 12 mos. 12 mos. 12 mos. 12 mos. Step Movement *1 = To be determined in conjunction with milestones/certifications

Professional Individual Contributor (PIC) Pay Plan This plan is for the traditionally recognized

professions (such as Attorneys, Engineers, Scientists and Nurses)

These classifications characterized by the high number of PIC’s relative to the number of managers in that occupational group.

Pay ranges will be broad banded with market anchors within the bands to reflect different levels of work

Professional Individual Contributor PIC Pay Plan (cont)

Sample salary range for this plan

$40,000 $46,000 $55,000 $62,000 $70,000 $82,000 X X X X

Min Max X = Market anchors for different levels of work in the job family

Professional Individual Contributor (PIC) Pay Plan (cont)

Pay movement will be based on performance as well as assessment against criteria that indicates advancement in these professions

This could be job-related education or skill acquisition, certification or licensure or even taking on more complex duties or a leadership role

Committees consisting of employees and managers from these professions will be formed to assist in determining the criteria for movement for their particular profession

General Classified Pay Plan All classifications that are not assigned to one of

the other four plans will be assigned to this plan

This plan is a hybrid model with steps from minimum to midpoint and open ranges from midpoint to maximum

Like the Basic and Protective Services plans, the steps on this plan will be 3% apart and progression will be faster than our current system

General Classified Pay Plan (cont)

Sample salary range for this plan

85% Market 120%

85% Market 115%

Exempt Position

Non-Exempt Position

3% 3% 3% 3% 3%

6 6 9 9 12

DifferenceIn Steps

Timing of StepMovement(Months)

Performance Management

What is it?

Process involving planning, coaching, feedback, review and reward

It is not just about the review form

Development tool for employees

Performance Management (cont)

Why change?

House Bill 2916

26 systems currently utilized

Process will develop and reward

Performance Management (cont)

Who is developing?

Design Team

Steering Committee

Performance Management (cont)

Four Components:

Performance Planning

Coaching and Feedback

Reviewing and Appraising

Recognizing and Rewarding

Performance Management (cont)

What changes will I see?

Focal Points Essential Requirements Face to face time Clear expectations Improved communication Enhanced training Growth and development Five rating scale

Performance Management (cont)

What is the timeline?

Process designed: Jan. 2008 – April 2008 Training materials: April 2008 – Aug. 2008 Informational Meetings: Fall 2008 Supervisor and Manager Training: Fall

2008 Implementation: FY 2010

Performance Management (cont)

Next Steps:

Training for supervisors

CBT Development

IT implementation

Regulation updates

Performance and Pay

In the very early stages of the transition to the new pay plans, so don’t have all of the details

Still awaiting data from the latest surveys this before we can even begin creating the new plans, let alone make decisions on exactly how performance will impact movement

Performance will not begin to have an impact on pay until FY2011, so there is still time to make sure these decisions are well thought out

Performance and Pay (cont)

This is NOT a pay-for-performance system Performance is one of the criteria for pay

movement, but other than for the Management Pay Plan, performance is not the only criteria

For plans with steps, the performance criteria will be similar to the current plan, with a “satisfactory” rating being necessary to receive a step increase

Performance and Pay (cont)

Performance for non-step plans will be factored in along with the other criteria for the plan

Exactly how individuals who receive a higher performance rating will be rewarded has not been determined at this point

Websites

Pay Plan Website www.da.ks.gov/newpayplans

Performance Management Website www.da.ks.gov/pmp