1 / 30

University of Arkansas Human Resources

University of Arkansas Human Resources. HR Forum: New Pay Plan for Classified Employees @ July 1, 2009. Pay Plan Background. Quick facts: First uniform compensation plan with passage of Act 199 of 1969, which compensated 892 classification titles

qiana
Download Presentation

University of Arkansas Human Resources

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. University of ArkansasHuman Resources HR Forum: New Pay Plan for Classified Employees @ July 1, 2009

  2. Pay Plan Background • Quick facts: • First uniform compensation plan with passage of Act 199 of 1969, which compensated 892 classification titles • 26 grades, 7 steps, 5.5% difference between each step • 1978 was the last full modification of pay plan • Cost of living increases expanded plan’s grade ranges • Steps added to allow employees at maximum salary of grade to receive pay increases

  3. Pay Plan Background • 11 Steps by 1985-1987, reduced to 10 steps in 1987-1989 biennium • Acts 100 and 101 of 1985 implemented a performance based pay system, which became part of the Career Ladder Incentive Program (CLIP) in 1999 by Act 1061 • In 1989, State discontinued step pay plan and replaced with four level pay plan (partial modification) • Act 289 of 2007 reinstated merit increases for classified employees

  4. Pay Plan Background • State’s compensation system has not changed fundamentally in 30 years! • Act 1015 of the 85th General Assembly in 2005 mandated the study of current state employee and classification system • Act 868 of the 86th General Assembly mandated the 2007-2008 Pay Plan Study • Job evaluations • Performance evaluation systems • Salary surveys • Classification structure • Development of total classification plan

  5. Pay Plan Background • Constraints of the current plan: • Pay ranges are not competitive with private sector jobs • Employees have not advanced through pay grades for performance due to lack of consistent funding • Minimum qualifications are outdated, inappropriate, or inapplicable • Job Family Compression • Variable percentage differences between pay grades • Number of classifications has increased to over 2,200 classified titles in 2008 • Number of grades has not changed since 1969

  6. Pay Plan Process • What was the process? • Each employee completed a job description • Salary surveys were submitted and used to develop the pay plan (approx 85) • Northwest Arkansas Human Resources Association • State compensation • College and University Professional Association

  7. Results • Creation of three pay grids • Executive/Professional • Agency Director • Career Service (classified)

  8. Collapsing of Titles • From 2,200 classified titles to approximately 1,000 classified titles • 350 titles to 147 titles (UA Fund) • Example: Administrative Specialist • Some positions set by OPM do not match University of Arkansas • Administrative Assistants II • Supervisors and subordinates in same title • Titles cover 40,648 classified positions • Every classified and agency non-classified position was reviewed • 1532 Classified Employees for UA Fund • All will receive pay increase

  9. Pay Grid Definitions • Entry: Minimum entrance salary rate for classifications assigned to career service • Base: Maximum entry level for classifications assigned to the career service pay plan • Midpoint: Rate of pay midway between the base pay level and maximum pay level established for each grade • Maximum: Highest authorized level of pay for a pay grade for normal compensation administration purposes • Career Service: Salary level established on career service compensation plan in a pay grade which is authorized only for current employees who meet established eligibility criteria

  10. Pay Grid

  11. Pay Grid • Still have opportunity to use Exceptionally Well Qualified for hiring, but must be approved based on justification regarding market shortages, etc. • Hiring Minimums will be ranges based on lowest paid employees in a pay range • Admin Specialist I (Sec I, Receptionist, Data Entry Specialist) • State minimum $18,855…Hiring minimum $17,569 • Labor Markets • Must be re-established • Exception is prevailing wage apprenticeship for skilled trades worker per special legislation • COLA: None in 2009, but included in 2010 • Merit: Continues for July, August, and September • Based on hire date

  12. Differentials • Cumulative total cannot exceed 25% of employee’s base salary • Shift Differential • Hazard Pay • Professional Development • Degree Completion • Geographic Index • Language

  13. Shift Differentials • Currently have one shift differential • New plan changes to two shift differentials • New shift differential hours: • 3:00 p.m. to 12:00 a.m. (Evening) • 11:00 p.m. to 8:00 a.m. (Graveyard) • Shift differential up to 12% • Evening shift coded as “Y” • Graveyard shift coded as “G”

  14. Hazard Pay Differential • Increased risk of personal physical injury can occur due to position’s location, facility, or services provided • Employee is exposed to clear, direct, and unavoidable hazards at least 50% of work time. • Employee cannot already be compensated for hazardous exposure • Hazard pay differential up to 6% • Example: Public Safety Officer

  15. Professional Certification Differential • Plan must be created for approval • Applies to classified employees only • Professional Certification differential is up to 6% • Recognized professional certifying organization • Certification must be directly related to the position • Certification cannot be a minimum requirement for the position • Certification must be current • Documentation is required • Examples: IT, Public Safety, Financial (CBMI)

  16. Education Differential • Plan must be created for approval • Applies to classified employees only • Education differential is up to 6% • Degree must be directly related to the position • Degree must be from an accredited institution of higher education • Documentation is required • Degree cannot be a minimum requirement for the position

  17. Geographic Area Differential • University effort was extensive in requesting • Northwest Arkansas area competitive wages are different than other areas of the state • Similar to Labor Market • Addresses the inability to recruit and retain certain employees in specific geographical area of state • Geographic Area differential is up to 6%

  18. Second Language Differential • Must be directly related to job • Requires a demonstrated ability and skill to communicate in a language other than English, including American Sign Language • Second Language differential is up to 10%

  19. Lump Sums • Lump sum payments for salary eligibility that exceeds new maximum level or new career level will be made on June 30, 2010 • Must still be employed by University of Arkansas

  20. Position Changes • Promotion increase is 10% • Demotion decrease is 10% • Reclassification is 10%

  21. Initial Implementation • Based on length of service as of June 30, 2009: <2 years cumulative service: +0.50% 2-5 years cumulative service: +0.75% 6-10 years cumulative service: +1.00% 11-15 years cumulative service: +1.25% 16-20 years cumulative service: +1.50% 21-25 years cumulative service: +1.75% 26-30 years cumulative service: +2.00% 31-35 years cumulative service: +2.25% 36+ years cumulative service: +2.50%

  22. Initial Implementation • Advantages of Length of Service Adjustments: • Allows for a better distribution of employees within assigned grades • Eliminates many potential salary inequities • Recognizes the service contribution of career employees • Relieves compression in pay plan

  23. Initial Implementation • Classified employees only • Appropriate percentage will be calculated and added to current salary • If amount puts salary above entry rate for position grade, calculated salary becomes new salary • If amount is less than entry for grade, then percentage calculation is disregarded and difference in current salary and new entry rate is divided in half, and that half is added to current salary

  24. Example: UA System Pay Plan Implementation Current Employee Information Half Implementation 1/2 of (Entry Line Years of Current Adjusted Incumbent Entry Less Less Final Item Incumbent Title Grade Entry Base Service Salary % Adj. Salary to Entry? Current Current) Salary (29) Employee B Maintenance Supervisor C115 29,251 31,052 8Y6M 27,751 1.00% 28,029 N 1,500 750 28,501 * (30) Employee C Legal Support Specialist C113 26,531 28,165 2Y4M 26,737 0.75% 26,938 Y 26,938 (31) Employee D Administrative Specialist III C112 25,268 26,824 10Y3M 27,333 1.25% 27,675 Y 27,675 Full Half Years of Service *Current+ 1/2(Entry Less Current) 1.00% 0.50% LESS THAN 2 YEARS CUMULATIVE SERVICE 1.50% 0.75% 2 TO 5 YEARS CUMULATIVE SERVICE 2.00% 1.00% 6 TO 10 YEARS CUMULATIVE SERVICE 2.50% 1.25% 11 TO 15 YEARS CUMULATIVE SERVICE 3.00% 1.50% 16 TO 20 YEARS CUMULATIVE SERVICE 3.50% 1.75% 21 TO 25 YEARS CUMULATIVE SERVICE 4.00% 2.00% 26 TO 30 YEARS CUMULATIVE SERVICE 4.50% 2.25% 31 TO 35 YEARS CUMULATIVE SERVICE 5.00% 2.50% 36 AND MORE YEARS CUMULATIVE SERVICE Half Implementation Example

  25. Summary • Shift Differentials must be coded to reflect evening or graveyard shift after pay plan changes completed • Issues with Desk Assignment changes: contact Rachel McGathy, 575-4249 • Some positions will have to be adjusted after implementation • Exempt/Non-Exemption Statuses

More Related