State of Wyoming

1. State of Wyoming An overview of the State of Wyoming Classification & Compensation Program Department of Administration & Information, Human Resource Division

2. Job Evaluation, Classification & Market Pay Project • Adoption of Statewide Compensation Philosophy which changed the definition of relative market to include in-State employers. • March 1, 2010 was the effective date of the new pay tables and the compensation policy • This philosophy required the need to establish multiple market pay sources • A more comprehensive view was established for the comparable markets • In the Fall of 2008, market data was gathered using a number of sources: • Central States Compensation Association – previously this was the only source utilized for market pay analysis and which was limited to only other state governments and resulted in no appropriate matches for some positions • Hay PayNet Data – provides proprietary information • In-State Custom Survey – provides proprietary information • Wyoming Hospital Association Survey • Wyoming Prevailing Wage Survey for Contractors • Pro = Expanded market sources to include in state private employers • Con = Not as transparent, HRD did not have access to all survey data and cannot release proprietary information • Hay PayNet proprietary and private employers restricted revealing data to competitors • As a result, data was gathered from 113 employers; the most comprehensive gathering of data that has been available to the State for the development of salary structures • This market data is the most current ever provided and was projected to January 2010. • Development of Pay Structures - In establishing pay structures, it is very important to recognize two key concepts: • Internal equity: The differences in job content as measured by a defensible job evaluation methodology • External competitiveness: The market value of that job content based on the definition of the relevant market as determined by the compensation philosophy. • The project provided a defensible method to align positions internally through job evaluation and externally with the market • A pragmatic and practical approach to the creation of pay structures is based on the appropriate balance of these two important principles

3. What is different? • The State implemented a system that measures and evaluates each job to determine the internal ranking of all positions and incorporates the relevant external market to determine the proper positioning of the pay structures. • The State utilizes multiple pay tables to address differences between internal alignment and external market data. • Each job is placed into a grade based on the internal ranking. • Each grade has a pay range based on the relevant external market and internal alignment of positions. • The Old System • Identified benchmark positions - common jobs within multiple organizations, with numerous incumbents and an identified solid market • Surveyed our competitive market (only Central States) using the identified benchmark positions • Utilized extrapolation process to create market range for non-benchmark positions – the more you extrapolate from the actual data point the less accurate your rate becomes • Each classification had a salary range without taking into consideration internal equity or alignment of positions. • Inconsistent range spreads within occupational groups • Existing method of determining market for non-benchmark jobs continued to perpetuate internal inequities • The New System • Identified benchmark positions • Surveyed the new competitive market (see previous page) utilizing the identified benchmark positions • Utilized linear regression (a statistical formula) to create market ranges for all positions • Each grade has a consistent range spread (percentage from the minimum to the maximum) 41%. • Each grade has a consistent spread from the minimum to the market pay policy and from the market pay policy to the maximum. The minimum is 15% below the market pay policy and the Maximum is 20% above the market pay policy. differences

4. Example of Linear Regression Linear regression

5. The Linear Regression Chart is for illustrative purposes only and does not reflect real benchmarks • Dollars = survey value of the job in the market • Total Evaluation Points = Every benchmark evaluation using Hay method • Each dot = benchmark job • Green arrows = found all nursing in same class family; created a pay structure of its own • Red arrows = Point to a premium position; found on the general pay table; these are independent classifications, not • Linear Regression Explanation • Each benchmark job was evaluated and given a total evaluation point – internal alignment • Each of those benchmark jobs was surveyed utilizing the 5 market sources – external alignment • This created the plot on the scale; each dot represents a benchmark job and total evaluation points; this created our internal and external alignment; or the visual scatter gram as seen • Linear regression is utilized to determine the best straight line fit for the relationship between market dollars and evaluation points upon which the market pay policy was derived • Premium Pay Explanation • In plotting the benchmarks on the chart, the outliers become visible • Outliers are examined to determine their validity • An analysis is conducted to determine if the premium positions are in the market • For example, if all nurses were consistently above the market pay policy, this would result in the need for a separate nursing pay structure

6. Pay Structures • PAY STRUCTURES • In developing pay structures for a large public sector organization such as the State of Wyoming, given the diverse nature of the types of jobs, it was highly unlikely that “one size would fit all” • Based on the analysis of market data, three pay structures for classified employees were developed • General Pay Structure - Each classification included in this structure is assigned a grade for which there is a pay range For the vast majority of classifications, employee pay is administered in that pay range • However, there are some positions for which the market is paying a premium over others with similar job content • These are market premium positions and will be administered and distinguished with a parentheses ( ) For example, the grade is K but the pay will be administered in grade M. These market pay premium positions would be listed in the Pay Plan as K (M) • A “sunset” date will be set for each of the above at which time a review will be conducted to determine if the market premium still exists • The sunset date for the premium positions is 06-30-2011 • The data will be re-evaluated on a yearly basis • In addition, market data for other classifications may require that they become market premium positions in the future • Nursing Pay Structure – (Class Codes = HSNU14, HSNU12, HSNU11, HSNU10, HSNU08, HSNU06, SOMC11, SOMCC10) • Highway Patrol and Criminal Investigation Pay Structure – (Class Codes = PSLE16, PSLE12, PSLE11, PSLE10, PSLE08, PSLE07, PSHP09, PSHP08, PSHP07, PSHM16, PSHm14, PSHM12, PSHM11, PSHM09) • Talking Points for Pay Tables = Each grade has a Minimum, Market Pay Policy (MPP) and Maximum • Market Pay Policy is the market; Minimum is 15% below and Maximum is 20% above the MPP Pay Structures

7. General Pay Structure General Pay Structure

8. Nursing Pay Structure Nursing Pay Structure

9. Highway Patrol & Criminal Investigation Pay Table Highway patrol & criminal investigation Pay structure

10. Premium Pay Classifications Premium pay

11. Pay Administration • PAY ADMINISTRATION • Development of Compensation Policies - Compensation Policies and Guidelines are the bases in administering the pay plan for classified employees • The determination of the pay range within each grade within each pay structure is not grievable • Significant additions or changes in the new Compensation Policies • Compensation Philosophy • Adopted into law; redefined the market and expanded the market • Retention Increases • Requires a written offer and a letter of resignation from the employee • Allows the agency to offer a salary between the minimum and the market pay policy or a 10% increase, whichever is the greater benefit to the employee; this is allowed only once and cannot exceed the maximum of the pay range Pay Administration

12. Add-on Adjustments • More clearly defined the types of add-ons allowed • List types ‘with examples • Time limited– Allowed only to cover absence of an employee on extended leave vs. • Interim appointment – Employee appointed to a different position that is being recruited for and who must meet the minimum qualifications • Limited pay adjustments on a reclassification • Reclassifications with incumbents are frozen per executive order; reclassifications of vacant positions allowed within agency approved limits • The limit allows for movement to the minimum if the current salary is below the minimum of the new grade or • Reduces the current salary to the maximum of the new grade if the current salary exceeds the maximum of the new grade • The reclassification process is yet to be determined; current procedures are to be followed • Position in Range and Performance – pending further authorization • A mechanism included in the compensation policy to address salary compression. Other options to address these issues will be evaluated in the future • Inter-agency and agency to agency transfers • Removed from Compensation Policy • Increases upon completion of the probationary period • Movement to Competitive Market Average after 2 years • External Cost Adjustment Increases (ECA) Recruitment updates

13. Recruitment updates

14. How do these changes affect Recruitments? recruitment • What pay range is included on the recruitment? • Agencies must state the pay on the recruitment within the range of “Minimum to Market Pay Policy” in the Pay Range/Payband section • (Currently ,this will be entered manually until the eHRMS system is updated.) • In the future the pay tables will auto populate. • Can we go above the Market Pay Policy (MPP)? • As previously, agencies submitted requests above the MPP up to the maximum for approval by the Human Resources Administrator. Sufficient justification will be required to recruit at that level in comparing other employee positions to the MPP. • Is there an approval for pay for recruitments? • A&I HRD will always confirm pay prior to recruitment approval. • How do we know that a recruitment is at the correct level? • HRD will always cross-check the vacancy announcement with the class specification to ensure that all areas of the recruitment are consistent with the appropriate level within the class specification. • What is happening with the Vacant Position Report? • We are verifying positions on recruitments to ensure that they are not on this list. This list includes eliminated and non-recruiting status positions. • In addition, Data/Payroll is checking to ensure the agencies do not exceed their hiring limits. • Has my position been lowered since the Minimum Qualifications (MQ’s) are lower? • No, all MQ’s have been lowered except where they are governed by statute. This does not lower your position. This is for recruitment purposes only. The new MQ’s allow agencies more flexibility to recruit for appropriate candidates through the customization of preferences. MQ’s are not taken into consideration for pay purposes. • We are available to provide assistance in creating new recruitments, or upon request, provide on site-training for HR and Supervisors.