Compensation Management

Compensation Management for Classified Employees 4/21/2009

Agenda • Overview Responsibilities of Personnel Administrator • Classifying positions using Career Group Descriptions & SOC codes • Recruitment Practices • Pay Factors • Pay Practices • Probationary Period Practices • Wage Employees

Responsibilities of Personnel Administrators • Liaison between Human Resources and department supervisors/managers • Point of contact for Human Resource Generalists • Ensure adherence to policies and procedures

Responsibilities of Personnel Administrators • Oversees recruitment process • Post position vacancy on-line • Ensure hiring package is complete and adheres to VCU and state policies • Responsible for assuring no offer is made before HR approval • Assure negotiation of salary follows policies • Notify HR of acceptance, final salary offer, and start date

Responsibilities of Personnel Administrators • Classifies positions • Classify positions in pay bands 1-3 • Classify all hourly positions • Recommend classifications of positions in pay bands 4 and above • Classification includes selecting both Role and SOC • Assign working title

Responsibilities of Personnel Administrators • Oversees pay practice justification and documentation • Ensures proper utilization of eJobs • Ensure documentation is complete and adheres to VCU and state policies • Provides training to supervisors, managers, employees on pay practices and compensation management • One-on-one • Partner with an HR representative • Refer individuals to on-line training

History of Classified Compensation • Prior to September 2000 - VCU used Virginia State government’s traditional classification system, 1,000+ “classes,” short pay ranges, not flexible • September 25, 2000 - a broad band system with flexible pay practices was implemented • May 1, 2003 – To facilitate federal reporting, Virginia eliminated old class codes and implemented federal SOC code system

Compensation Management Goals • Attractqualified employees • Retainqualified employees • Rewardsustained high performance • Support line management in accomplishment of organizational objectives

Performance An over-riding factor • An employee must be rated at an acceptable level of performance before any salary increase or bonus can be granted

Pay Structure • See VCU HR website at http://www.hr.vcu.edu/comp&class/index.htm

What is fair pay? • Applicant’s viewpoint • Employee’s viewpoint • Department PA’s viewpoint • Hiring Manager’s/Supervisor’s viewpoint • Department Head’s/Chair’s and Dean’s viewpoint • VP’s and President’s viewpoint • DHRM’s viewpoint • Taxpayer’s viewpoint • General Assembly’s viewpoint

What’s the difference? • Position • Role A position is a set of duties and responsibilities assigned to an employee; it is assigned a specific number that is unique; and may be identified by 3 different titles (Role Title, SOC Title and/or Work Title) A Role is a group of similar jobs that perform broadly similar levels of work within a Career Group. A Role is assigned to a specific Pay Band. Each Role has a Role Title (known as a “Class Title” in Banner)

What’s the difference? • Employee Work Profile or EWP (Position Description) • Career Group Description (Role Description) This document serves a dual purpose and includes the employee’s core responsibilities and special assignments and serves as the employee performance plan. The Employee Work Profile is also the principle source document for allocating the position to the appropriate Role; used for individual development planning and for pay practice decisions. All EWPs are in eJobs. This document specifies the nature, type and range of work associated with a particular Career Group; identifies the progression of Roles within a Career Group; and provides sufficient information to distinguish one Career Group from another. This description includes the Concept of Work; Matrix of Role Titles; Codes and Pay Bands; Role Descriptions; Compensable Factor Matrices; Statistical Reporting (Standard Occupational Classification (SOC) System); and Career Group History.

When do you consider? • Position duties – Core Responsibilities • Employee performance Position duties are the “Core Responsibilities” in an EWP. They determine what Role a position should be classified into. An employee’s performance rating must be at an acceptable level before any pay practices salary increase or bonus payment can be made. But employee performance, in and of itself, cannot be used to justify a pay practice salary increase (unless it’s an annual November performance increase.)

Classifying positions • Select Role by matching EWP to Role description and classification factors using Career Group Descriptions, http://www.dpt.state.va.us/services/compens/careergroups/cgdlist.htm • Select SOC from: • Career Group Descriptions, “Statistical Reporting” section, if noted • DOL website http://www.bls.gov/soc/home.htm

Classifying positions • Approximately 300Roles - similar positions that represent different levels of work or career progression. Each role is broadly defined and encompasses several former job classes. • SOC codes - The Federal government uses this system for statistical reporting purposes and for purposes of current and accurate occupational information, replacing the Dictionary of Occupational Titles

Classification State System Federal System • Career Group • Description • Role I • Role II • Role III • Role IV • Major SOC • Group • SOC Title I • SOC Title II • SOC Title III • SOC Title IV • Career Group • Description • Role I • Role II • Role III • Role IV • Major SOC • Group • SOC Title I • SOC Title II • SOC Title III • SOC Title IV • Career Group • Description • Role I • Role II • Role III • Role IV • Major SOC • Group • SOC Title I • SOC Title II • SOC Title III • SOC Title IV • Career Group • Description • Role I • Role II • Role III • Role IV • Major SOC • Group • SOC Title I • SOC Title II • SOC Title III • SOC Title IV • Major SOC • Group • SOC Title • SOC Title • SOC Title • SOC Title EWP Employee Work Profile Position #99

Role Codes used for: • Identification of broad classification • Linkage to pay band • Determination of promotion/demotion • Recruitment • Order of layoff

SOC – What is it? • SOC = Standard Occupational Classification • A classification system developed by federal agencies so they would have a common method of identifying all legitimate, paid work performed in the United States • Uses a 6-digit code, plus a 4-digit extension: 99-9999.9999 • Each classified position has a federal SOC code. • Departments may change SOC codes when necessary.

SOC Codes used for: • Identification of detailed classification • Internal salary alignment • Salary survey • Reporting • EEO coding • Order of layoff (SOC within Role) • Organizational planning • Special pay authorizations

SOC website structure • Go to US Dept. of Labor, SOC System website at http://www.bls.gov/soc/home.htm • Click on the “Standard Occupational Classification System” link. • Select among the 23 SOC Major Groups (ex. 43-0000 Office & Administrative Support Occupations) • Select detailed occupation (first 6-digits does not end in zero) from the resulting listing to see a brief description of the work.

Wage Positions • Covered by pay bands and job Roles • Classification is decentralized to departments, • Select Role using Career Group Descriptions

Documentation • Along with flexibility comes accountability • Proactively documenting the rationale for pay actions should help prevent problems and questions • Use the eJobs questions on the Pay Action Worksheet (PAW) to provide justification for salary action

Make notes in eJobs PAW • Changes in the work since the last review • Comparative analysis • A brief comparison to Career Group Description and Role • A brief comparison to related positions • First time usage, exceptional action and who approved, precedence-setting nature, if any • When you don’t have position comparators or specs that compare well to the mix of job duties • Document answers to internal alignment questions on the eJobs PAW

Pay Factors For all Pay Practices consider: • Job • business need Agency • Duties & responsibilities • Market • Market Availability • Salary reference data • Total compensation • Financial • Budget implications • Long-term impact • Employee • Performance • Work experience & education • Knowledge, skills, abilities, competencies • Training, certification, licensure • Internal salary alignment • Current Salary

Timing of Pay Actions • Performance increase dates once a year, 11/25 (when budgeted by the General Assembly) • Recognition Awards, Role Changes and In-Band Adjustments occur effective 10th of each month

Pay Practices Employee Initiated • Starting Pay • Promotion • Voluntary Transfer • Voluntary Demotion Negotiable Typically Competitive

Negotiation Tips • Be Clear on Your Objective(s) • I must have this person at any cost • I want this person at my cost Do Your Homework • Have your facts and figures in order • Anticipate the other person’s wants Listen Effectively • Hear what’s being said and what’s not

Negotiation Tips (con’t) • Know Your Options • What choices do you have • What are the pros and cons of these choices Don’t be too Hasty • Don’t give away the store; leave room to move Remember the Human Touch • Be courteous • Highlight your areas of agreement adapted from Barbara Braham, “Negotiation Tips”, www.bbraham.com, and Amy Bly and Robert Bly, “How to Improve Your Negotiation Skills”, www.smartbiz.com

Starting Pay Definition: • Salary negotiated for new hires or rehires Guidelines: • HR review/consultation prior to department negotiation with applicant • Applicant’s salary negotiable between minimum of pay band (or hiring range minimum) up to 15% above current salary • Negotiated pay may result in decrease from applicant’s current or most recent salary • Cannot exceed band maximum Consider Pay Factors

Starting Pay Administrative & Program Specialist III - Pay Band 3 Starting Pay Applicant’s Current Salary Up to 15%

Promotion Definition: • Competitive movement to a differentposition in a higherpay band • Example – from one position number in pay band 3 to another position number in pay band 4 • Promotion can be within VCU or from a classified position in another state agency Guidelines: • HR review/consultation prior to department negotiation with applicant • Employee’s salary increase negotiable between minimum of pay band (or hiring range minimum) up to 15% above current salary • Cannot exceed pay band or hiring range maximum Consider Pay Factors

Promotional Pay Administrative & Program Specialist III - Pay Band 3 FROM Administrative & Program Specialist IV - Pay Band 4 TO Promotional Pay Employee’s Current Salary Up to 15% not to exceed band maximum

Voluntary Transfer - Competitive Definition: • Employee-initiated movement to a different position in the same pay band • to another position in the same or different Role • Example - from an Administrative and Program Support Tech III, pay band 3 position to a different Engineering Tech II, pay band 3 position Guidelines: • HR review/consultation prior to department negotiation with applicant • Salary negotiable from minimum of pay band (or hiring range minimum) up to 15% above current salary • Negotiated pay may result in decrease from employee’s current salary. • Cannot exceed pay band or hiring range maximum Consider Pay Factors

Voluntary Transfer (Competitive) Pay Administrative & Program Specialist III - Pay Band 3 WITHIN Competitive Voluntary Transfer Pay Employee’s Current Salary Up to 15% not to exceed band maximum

Voluntary Transfer - Non-Competitive Definition: • Employee-initiated movement in the same pay band to another position in the same or different Role Guidelines: • No change in pay • Provide justification for why non-competitive • Approved by HR

Voluntary Transfer (Non-Competitive) Pay Within same Role (or to a different Role) Administrative & Program Specialist III - Pay Band 3 WITHIN No change in pay Employee’s Current Salary

Voluntary Demotion Definition: • Employee-initiated movement to different position in a lower pay band • Can be a competitive or non-competitive movement Guidelines: • Employee’s salary negotiable from minimum of new pay band up to current salary • Agency may freeze salary above maximum for 6 months • Approved by HR Consider Pay Factors

Voluntary Demotion Pay Within same (or to a different) Role in lower pay band Administrative & Program Specialist III - Pay Band 3 FROM Administrative & Program Specialist II - Pay Band 2 TO Decrease or Keep Salary Same not to exceed band maximum Employee’s Current Salary

Pay Practices Management Initiated • Temporary Pay • Role Change • In-Band Adjustment • Disciplinary or Performance- Related Salary Action • Competitive Offer • Recognition Award

Role Change Definition: • Employee remains in current position but his/her Role changes • Change is either upward, downward, or lateral • Non-competitive

Role Change - Upward Guidelines: • If increased to a new Role in a higher band, flexibility to give between a 0% to 10% increase or take to new band minimum Consider Pay Factors

Role Change Pay (Upward) Within same or to a different Career Group Administrative & Program Specialist III - Pay Band 3 FROM Administrative & Program Specialist IV - Pay Band 4 TO 0 - 10% Increase or new minimum Employee’s Current Salary

Role Change - Downward Guidelines: • If decreased to a new Role in lower pay band, pay does not change unless it exceeds new band maximum • If pay is above maximum, it is frozen for six months and then reduced to band maximum Consider Pay Factors

Role Change Pay (Downward) Within same or to a different Career Group FROM Administrative & Program Specialist III - Pay Band 3 Administrative & Program Specialist II - Pay Band 2 TO No change in pay or to new maximum after 6 months Employee’s Current Salary

Role Change - Lateral Guidelines: • New Role in the same band, flexibility to give between a 0% to a 10% increase • Cannot exceed band maximum • Cannot be below band minimum • Note: counted towards 10% cap for In-Band Adjustment Consider Pay Factors

Role Change Pay (Lateral) Within same or to a different Career Group General Administrative Practitioner II - Pay Band 5 FROM General Administrative Manager II - Pay Band 5 TO 0 - 10%Increase (within band min/max) Employee’s Current Salary

In-Band Adjustment Can be used for the following reasons: • Change in duties • Application of new KSAs from education, certification, licensure • Retention • Internal Alignment

In-Band Adjustment Guidelines: • No change in position number • Employee may receive a 0-10% increase in salary within a fiscal year • 10% cap includes all In-Band Adjustment reasons plus Lateral Role Change • Requires VP or designee approval • Requires HR approval Consider Pay Factors

In-Band Adjustment Pay Administrative & Program Specialist III - Pay Band 3 WITHIN 0 - 10% Increase Employee’s Current Salary

Compensation Management