Retaining Employees

1. Retaining Employees ► Introduction ► Performance Management ► Policy

2. IntroductionNew Hires & Rehires(Probationary Period) Retaining Employees

3. Policy All new employees are placed on probationary status for six months. New hires Rehires Inter-agency transfers Intra-agency transfers Promotions that are classified Full-time Part-time Emergency Hire

4. Policy During the probationary period, supervisors should evaluate: Behavior Performance If an employee exhibits inadequate performance and/or inappropriate behavior during the probationary period, the employee may be terminated.

5. New Hires A new hire is defined as an employee hired into Arkansas State Government. REHIRE A rehire is an employee that was previously employed by ADH or State of Arkansas who is returning to employment after a break in service of more than two pay periods.

6. Interagency Transfer/Promotion A transfer or promotion from another state agency in the ADH without a break in service or a break in service of less than two pay periods. Intra-agency Transfer/Promotion A transfer or promotion within the Agency by a current ADH employee without a break in service or a break in service of less than two pay periods.

7. Supervisor’s Responsibilities Anytime during the probationary period, but no less than two weeks prior to the end of the probationary period, evaluate the employee’s performance and behavior and determine whether to Place employee on regular status at the end of probationary period Extend the probationary period (One three-month period) Terminate employment Notify HR of extension of probation or request to terminate NOTE: If HR is not notified, employee is automatically placed on regular status at the end of the six-month probationary period.

8. Regular Status Definition Not Permanent Status after Performing Satisfactorily During Probation Options Employee has access to Mediation/Grievance procedures

9. QUESTIONS

10. Retaining Employees Through Performance Management A look at performance-based merit pay

11. Act 289 of 2007 • Effective July 1, 2007 • Implemented Merit Pay System based on Performance • For both Classified and Unclassified Employees

12. Act 688 of 2009 • Effective June 28, 2009 • Implemented revisions to merit Pay System • Classified personnel on the Career Service Pay Plan (C grades) receive increase as a % of pay • Professional & Executive Pay Plan (N Grades) and unclassified (U class codes) receive one-time bonus at end of fiscal year.

13. Act 688 of 2009 • Classified employees (C Grades) who exceed max or career salary will also be paid one-time bonus at end of fiscal year. • Bonus dollars added into current salary for retirement calculations only. • If employee terminated before end of fiscal year, the bonus is forfeited.

14. Act 688 of 2009 • All FT & PT employees have eligibility date for Merit Pay Increase. • October 1 for employees hired on or before October 1, 2006 • Latest hire date for any employee hired after October 1, 2006. • Must have 12 months of continuous employment to be eligible for merit pay increase.

15. What is Performance-based Merit Pay? • Merit Pay System – incorporates pay and performance evaluation standards and establishes criteria for salary adjustments or lump sum payments for employees who meet performance standards. • Performance Evaluation System – A system for comparing performance with pre-established standards of satisfactory performance. • MIED – Merit Increase Eligibility Date

16. Eligibility • Full-Time and Part-time Employees • For 12 continuous months • Rehires –latest hire date if after Oct 1, 2006 • Extended Leave covers employees on • Military Leave/Extended Military leave • Catastrophic Leave • Leave Without Pay (LWOP)

17. Eligibility • Employees on extended leave - receive merit increase on their merit increase eligibility date if in active pay status.  • Employees not in active pay status will receive their merit increase upon their return to active pay status.

18. Extended Military LWOP • Supervisors of employees on extended military leave without pay will use the employees most recent performance evaluation score to determine the amount of the merit increase.  • The increase will be awarded to the military member when they return to active pay status

19. Eligibility • Employees receiving a written performance-based or disciplinary action during the twelve (12) month rating period are not eligible for a merit increase.  • The employee’s performance evaluation and date of merit increase eligibility remain October 1 or the latest hire date, whichever is applicable.

20. Performance-Based Criteria Job-related requirements (included, but not limited to) that must be successfully completed by employees: Demonstrating satisfactory job performance Exhibiting appropriate conduct

21. Who is eligible? Regular full-time employees with continuous employment with the State for 12 months Part-time (including job share) in a regular salaried position with the State for 12 continuous months

22. Merit Increases(2010-2011 Biennium) Overall satisfactory rating .75% increase Overall above average rating 1.5% increase Overall exceeds standards rating 2.25% increase

23. Performance Measurements (E) Exceeds Standards (A) Above Average (S) Satisfactory (U) Unsatisfactory

24. Managers and supervisors who fail to complete a performance evaluation within 30 days of the employee’s MIED under their administrative control are not eligible for merit increases. Managers and supervisors must have attended ADH Supervisor’s training before taking disciplinary action or completing performance evaluations on employees.

25. When is an employee eligible? Merit Increase Eligibility Date (MIED)—The date an employee is eligible to receive a merit pay increase based on their performance evaluation. October 1 or Anniversary Date

26. Performance Evaluation System A system that: Establishes performance expectations Monitors performance of job duties and tasks Provides feedback Rates the performance

27. Three Phases Implementation Evaluation and Feedback Final Evaluation

28. Phase 1 – Implementation Get the 1158 – Functional Job Description Review it Create 1973 and 1974 1974 must contain same duty areas as 1158 1974 must contain weights matching the 1158 – Functional Job Description Complete in a timely manner – within 30 days after employee begins Total weight on 1974 and 1158 must both equal 100%

29. Phase I(Implementation) Director, Deputy Directors and applicable Executive Management staff complete Parts I and II of the Executive and Professional Performance Evaluation Form at the beginning of the rating period for all employees under his/her direct supervision. Rating period beginning and ending dates should be entered at the bottom of the form. Appropriate Addendum should be included

30. Phase I(Implementation) Managers/Supervisors conducting PEs on senior management and all other employees completes sections I and 3 of the Performance Evaluation Criteria/Eligibility Form (HR-1973) Senior Management uses 1973 & 1974 All other employees use 1973 & 1974 Continued…

31. Phase I(Implementation) • Manager/Supervisor completes the Performance Evaluation Form (HR-1974)– Listing duty areas and weights for which the employee will be evaluated • In the order of importance • Weights must total 100

32. Job duty areas should be weighted according to the importance of the employee’s job duties, with the most important job duty receiving the highest rank and %. Phase I(Implementation)

33. Phase II (Evaluation and Feedback) Supervisor will monitor and document employee performance throughout the rating period Mid-point review is required for employees (“C” Grades) at six months from the start of the rating period Oral and documented feedback must be presented to ensure employee is aware of performance Weight, rating, score and justification must be entered in the “Mid-Point Review” section of the Performance Evaluation Form (HR-1974)

34. Phase II (Evaluation and Feedback) Unsatisfactory rating—supervisor must complete a Counseling Statement (HR-1131) and place the employee on probation for 30-180 days (Remember…another P.E. must be conducted prior to the end of the probationary period)

35. Phase III(Final Evaluation) (Ninety days prior to merit increase eligibility date, MIED) Executive Management and Professional Staff Performance Evaluation Form—The Rater completes evaluations and enter information in Part III Performance Evaluation Form HR-1974—Rater completes evaluation on Sr. Management and employees and enter information in the “Year End Evaluation” column and comments under “Justification for Rating”. Secures employee signature on 1973. The Performance Evaluation Criteria/Eligibility Form (1973) and the Performance Evaluation Form (1974) must be submitted to the Reviewing Official for signature prior to the evaluation being discussed with the employee.

36. Phase III(Final Evaluation) • Managers and supervisors grades C121 and above evaluated using the Performance Evaluation Form HR-1974 must be evaluated on the following duty areas in addition to others duty areas as assigned. • Job Knowledge and Quality of Work • Accountability, including Code of Conduct • Collaboration and Adaptability

37. Phase III (Final Evaluation) Meet with the employee to discuss the evaluation Have the employee to sign and date (1973) as having received the evaluation NOTE: An unsatisfactory rating in any duty area precludes awarding an Exceeds Standards or Above Average overall rating.

38. Appealing a Performance Evaluation Employee must indicate on HR 1973 if the employee wishes to appeal Documentation must be submitted within 5 working days of date of receipt of P.E. Overall score of Satisfactory or Unsatisfactory may submit a written request for appeal to the Center Director (Center Director or Oversight Committee will make an appeal decision in writing within seven working days of receipt of request. The appeal decision is final and binding.)

39. Appealing (cont’d) • An employee must indicate on the HR-1973 at the time of receipt of the PE that he/she wishes to appeal the PE. • Only overall scores may be appealed.

40. Appealing (cont’d) • The employee then has five working days from the date of receipt of the PE to file written documentation in support of the appeal request. • The appeal request documentation must include evidence to support each duty area rating the employee wishes increased. • If documentation is not received within 5 working days, appeal will be denied.

41. Roles and Responsibilities of Supervisor Familiarize employees with the performance evaluation process Complete in a timely manner Assure all criteria have been met for merit pay increases Complete forms HR-1973 and HR-1974 for each employee Complete mid-point and annual year-end performance rating Determine the appropriate weight for each job duty area Determine the rating for each job duty area for employee based on appropriate documentation. You may use the Table of Weights Guidelines (PER-1974A as a guide. Total weight must equal to 100.)

42. Roles and Responsibilities of Employee Meet the assigned performance-based criteria Demonstrating satisfactory job performance Complete any required training Demonstrate satisfactory conduct Keep supervisor informed regarding process or difficulties Provide documentation of work performance to supervisor Certificate of completion of training Commendation

43. When a Rating Supervisor Leaves Complete a performance evaluation before leaving (when possible) and send HR-1973 and HR-1974 to the Reviewing Official for employees evaluation period ending within 90 days (If supervisor fails to do so, Reviewing Official should complete) Not responsible, if supervisor leaves within the first 90 days of an employee’s rating period (New supervisor’s responsibility)

44. When a Rating Supervisor Leaves If supervisor leaves after the first 90 days and prior to the last 90 days of an employee’s evaluation cycle, the supervisor will complete a formal evaluation. (The evaluation should assist the new supervisor in assessing the employee’s level of performance prior to separation, but will not obligate the new supervisor to prorate the assessment.) Employees remaining in the same position, but having several different supervisors during the rating period, should be evaluated by the Reviewing Official.

45. Documentation Employees are rated on the current evaluation period only For probationary employees Counseling Statement with Performance Improvement Plan Outlines specific performance expectations leading to improvement of overall performance Cites 30-180 day probationary period Recommended training Outlines actions to be taken by supervisor to assist employee Document periodic discussion of performance evaluation Inform of progress or lack of improvement Give specific information or training on how to improve or continue improving performance Each employee requires two files Official file in HR Supervisor’s file Employee receives a copy of P.E. after all appropriate signatures are obtained

46. Refusal to Sign Explain signature does not necessarily mean agreement Offer employee an opportunity to make written comments If employee still refuses to sign, the rating supervisor and another supervisor will make a notation on the HR-1973 and forward it to HR An employee who refuses to sign the Performance Evaluation Criteria Form HR-1973 indicating the wish to appeal does not have access to the appeal process.

47. Performance Management ►Planning ►Focusing ►Assessing Set performance expectations Be an effective communicator Think about what you need to do a good job in your work Be specific Make sure expectations are measurable Attainable and realistic to achieve Relevant to position

48. Avoiding Pitfalls Unsigned or undated documents Illegibility Late documentation Inaccuracy Unsupported conclusions Not being specific Making excuses Lying…even to be nice! Inconsistency Being over or under focused

49. QUESTIONS

50. Retaining Employees Through Policies ►Disciplinary Policy►Minimum Conduct ►Performance “To Teach, Not to Punish”