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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.

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compensation management

Compensation Management

for Classified Employees

4/21/2009

agenda
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
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 administrators4
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 administrators5
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 administrators6
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
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
Compensation Management Goals
  • Attractqualified employees
  • Retainqualified employees
  • Rewardsustained high performance
  • Support line management in accomplishment of organizational objectives
performance
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
Pay Structure
  • See VCU HR website at http://www.hr.vcu.edu/comp&class/index.htm
what is fair pay
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
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 difference13
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
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
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 positions16
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
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
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 – 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
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
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
Wage Positions
  • Covered by pay bands and job Roles
  • Classification is decentralized to departments,
    • Select Role using Career Group Descriptions
documentation
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
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
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
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
Pay Practices

Employee Initiated

  • Starting Pay
  • Promotion
  • Voluntary Transfer
  • Voluntary Demotion

Negotiable

Typically Competitive

negotiation tips
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
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
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 pay31
Starting Pay

Administrative & Program Specialist III - Pay Band 3

Starting Pay

Applicant’s

Current

Salary

Up to 15%

promotion
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
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
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
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
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
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
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
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 practices40
Pay Practices

Management Initiated

  • Temporary Pay
  • Role Change
  • In-Band Adjustment
  • Disciplinary or Performance-

Related Salary Action

  • Competitive Offer
  • Recognition Award
role change
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
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
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
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
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
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
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
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 adjustment49
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
In-Band Adjustment Pay

Administrative & Program Specialist III - Pay Band 3

WITHIN

0 - 10% Increase

Employee’s

Current

Salary

in band lump sum
In-Band Lump Sum
  • Lump sum payment up to 10% per fiscal year in lieu of base pay adjustment
    • Lump sum and base pay combined cannot be more than 10% in a fiscal year
  • Allows for transition while developing funding to support future base-pay adjustment
  • No In-Band Bonuses allowed for employees at the top of the pay band
in band lump sum52
In-Band Lump Sum

Can be used for the following reasons:

  • Change in duties – when there are budget constraints
  • Application of new KSAs from education, certification, licensure – assess the impact & significance of KSAs when determining whether base pay or bonus
  • Retention – typically used when retention issue is anticipated to be short-term
  • Internal Alignment – when there are budget constraints
temporary pay
Temporary Pay

Definition:

  • Assuming new duties and responsibilities on a temporary basis in:
    • same/different role in same pay band or
    • different role in higher pay band

Guidelines:

  • Approved for 6 month intervals
  • If acting in a Role in a higher pay band, can pay

0 - 15% above current salary

  • If acting in a Role in same pay band, can pay

0 - 10% above current salary

  • Cannot exceed pay band maximum
  • Requires VP or designee approval
  • Requires HR approval

Consider

Pay

Factors

disciplinary or performance related pay reductions
Definition:

Movement to same or lower pay band in same or different position as result of disciplinary action(s) taken in lieu of termination

Guidelines:

Employee’s duties must be reduced

Salary is reduced by a minimum of 5%

Cannot exceed maximum of new pay band

Employee Relations must be involved in this process

Approved by HR

Disciplinary or Performance Related Pay Reductions
competitive offer
Competitive Offer

Definition:

  • An offer of employment with a higher salary from another organization to include other state agencies

Guidelines:

  • Must have a formal written offer from a competitor
  • Match of outside offer cannot exceed maximum of pay band
  • Requires VP or designee approval
  • Requires HR approval

Consider

Pay

Factors

recognition awards
Recognition Awards

Definition:

  • Lump sum payment of up to $2000 per fiscal year and/or up to 5 days of Recognition Leave per calendar year for extraordinary contribution by a team or individual
  • Rewarded monthly

Guidelines:

  • Requires VP or designee approval
  • Requires HR approval
  • Taxed at 38%
appeals
Appeals
  • If concerned about a pay action, employee should discuss initially with his/her supervisor
  • If unresolved, employee may put concerns in writing to dean/department head within 10 days of learning of pay action
  • Dean/department head responds in writing within 10 days
probationary period
Probationary Period
  • 12 months
    • can be extended to 18 months for performance with approval from reviewer and HR
    • must be extended for absences in excess of 14 calendar days
  • Probationary Progress Review at 6 months
  • Orientation, training, coaching, and counseling are documented throughout
wage positions59
Wage Positions
  • Covered by pay bands and Roles
  • Classification is decentralized
  • Most Pay practices apply except:
    • In-Band Adjustments (except for Change in duties)
    • Competitive Offers
    • Disciplinary/Performance Pay Reductions
    • Recognition Awards
  • Same approvals required
comp management tools
Comp Management Tools
  • eJobs produces for Pay Practices
    • Personnel/Position Action Form (PAF)
    • Pay Action Worksheet (PAW)
    • Employee Work Profile (EWP)
  • VCU Classified Salary Administration Plan
  • Career Group Descriptions
  • http://www.vcu.edu/hr/comp&class/index.htm