SPA Classification, Compensation & Performance Management Training

1. SPA Classification, Compensation & Performance Management Training Office of Human Resources Angenette McAdoo & Roberta Price

2. Guiding Principles to Performance Management

3. Performance Management Program • Program Philosophy • The performance management program is a communications system designed to help the employee succeed. • Program Components • Work Plans • Work Planning Conferences • Day-to-Day Observation & Documentation • Performance Appraisals • Informal Counseling Sessions • Program Cycle • June 1 to May 31

4. Roles & Responsibilities • Employee • Actively participate & own the work • Ask questions & keep supervisor informed • Supervisor • Clarity in expectations & Honesty in appraisal • Invest time upfront • Second-Level Supervisor • Review & sign all work plans & performance reviews • Ensure expectations/ratings applied consistently • Quality & Consistency Control

5. Work Plans • Work Plan due within 30 calendar days of… • Starting in new position or reclassification • Significant changes in duties or expectations • Beginning of performance cycle • Organizing Principal Functions • Duties • None should be less than 5% weight • See Supervision & Teamwork PFs on sample • Rank PFs by importance, then amount of time

6. Work Plans • Expectations in work plan are written at the “Good” level. • Distinction between what you “need” (G) and what you “want” (O).

7. Work Plans • Tips for Writing Principal Functions: • Do not copy position description • Do not copy position competencies • Refer to other detailed sources (handbooks, protocols, etc.) • Emphasize what’s key to you as supervisor • Further detail can be provided as needed • Sources of Data (Documentation) • Direct observations • Written materials • Third-party reports • Individual self-reports

8. North Carolina Rating Scale Outstanding Very Good Good Below Good Unsatisfactory

9. North Carolina Rating Scale UNSATISFACTORY GOOD OUTSTANDING Consistently performsbelow expectation Consistently performsat expectation Consistently performs above expectation BELOW GOOD VERY GOOD Consistently performs at or below expectation Consistently performs at or above expectation

10. Interacting With Other Policies

11. Interaction with Other Policies • Classification and Compensation • Proper position description / work plan alignment: • Targets right classification • Targets right pay range • Targets right competency set • Proper performance appraisal: • Provides equitable distribution of Legislative Salary Increase (LSI) • Sets eligibility for salary changes (required: “Good” overall rating or higher) • Hiring • Proper classification/work plan: • Targets right pool of applicants.

12. Interaction with Other Policies • Layoff • Selection Criteria (in priority order): • University Needs • Appointment Type • Relative Efficiency • TSSD • Diversity

13. Interaction with Other Policies • Step 1: University Needs • Based on the ongoing business needs, identify which classification has more positions than will be needed. Accounting Technicians (J) Administrative Support Specialists (J) Student Services Specialist (A) Business Services Coordinators (C)

14. Interaction with Other Policies • Step 2: Appointment Type • Permanent retained before temp, probationary, time-limited appointments. Administrative Support Specialists (J) Perm Perm Perm Perm Temp

15. Interaction with Other Policies • Step 3: Relative Efficiency • Documented performance and competencies as they relate to the skill-sets and job duties that will continue to be performed. Administrative Support Specialists (J) O O G VG B.D. B.D. App App

16. Interaction with Other Policies • Step 4: Total State Service • If employees are substantially comparable in relative efficiency, then the employee with the least state service is selected. Administrative Support Specialists (J) O O O O BD BD BD BD 1990 1999 2004 2003

17. Performance Appraisals

18. Performance Appraisal • Rate performance based on standards • Give strong specific examples that reflect overall work • Avoid nit-picking minor infractions • Use more observation (concrete) and less inference (abstract) • Emphasize work performed aboveand belowGood level • Assign rating • Overall performance comments • “Wrap-up” statement of overall contribution • May address achievements or concerns that fall outside PFs • Must hold a one-on-one review session with each employee

19. Performance Appraisal • Disciplinary action issued during performance cycle: • Employee should receive no higher than a Below Good for at least the principal function(s) relevant to the action. • Based on other ratings, may receive a higher overall rating. • Sustained Performance Deficiency: • If employee has: • Sustained a BG/U (on either overall rating or a principal function) … • For two or more performance reviews (mid-cycle or annual) … • Spanning at least six months. • Then this is an incident of unsatisfactory job performance that unto itself is the basis for disciplinary action if no action has otherwise been taken to address the issues.

20. Disciplinary Action

21. Discipline for Unsatisfactory Job Performance • Performance-based discipline follows a “3-strike” process. • Successive discipline to attempt to help employee succeed. • Cannot dismiss employee “on the spot” for poor performance. • Sequence of performance-based discipline: • First active action: • Must be a written warning. • Second active action: • May be a written warning, a suspension, or a demotion. • First action does not have to be on a related topic or be performance-based. • Third or subsequent action: • May be a written warning, a suspension, a demotion, or a dismissal. • Prior actions do not have to be on a related topic or be performance-based.

22. Performance Management Revision • February-March (Pilot Training for Supervisors/Employees) • March-April (Discussions with employees to clarify expectations) • May (Performance Appraisal using new form/pilot dept. only) • June (Issue updated position descriptions and work plans) • October-December (Campus-wide launch) • January 2014 (New program in place campus-wide) • Start looking at work plans and position descriptions to make sure they are in place

23. Employee Competency Assessments

24. What is an ECA? • A required tool used by managers to evaluate the demonstrated competencies of the employee against the required competencies of the position • Communicates to employees where they demonstrate the knowledge, skills, and abilities to meet stated business needs and where they have deficiencies • Manages are responsible for determining the employee’s demonstrated competency level for each of the competencies required in the position

25. ECA Ratings • There are three levels of employee competencies: • Developing: required position competency is not yet fully applied by the employee at the level defined by the manager as necessary to meet stated business needs. The employee may be lacking in some skill sets of the required position competency. • Applied: required position competency is often demonstrated by the employee at the level defined by the manager as necessary to meet stated business needs (80% benchmark). • Broadly demonstrated: required position competency is consistently demonstrated by the employee at, and above, the level defined by the manager as necessary to meet stated business needs.

26. When to Complete an ECA • 90 days after an employee starts in a position • 90 days after a position change (competency change, branch/role change, update duties) • During the annual performance review • Any time a supervisor has recognized a change in the employee’s competencies • At the time of certain salary increase requests

27. ECA Tips • Ensure an ECA is on file for every permanent SPA employee • Be sure to enter a rating in HRIS each time an ECA is completed • Remember the importance of rating the employee’s assessment appropriately allowing room for career progression • Position competencies are defined by the state and cannot be changed for individual positions • Not all competencies defined by the state for a branch/role will be relevant to all positions

28. ECA Tips • In the “Supervisor comments” Section of the ECA: • Provide an opening statement to detail the change in employee competencies between assessments • Reference additional and/or growth of duties, and describe how the employee is demonstrating competencies related to the new duties • Provide specific examples of duties that validates how the employee is demonstrating the competencies on the job

29. ECA Tips • Avoid use of any performance language • Obtain all necessary signatures • The effective date for any salary increase is always made on a current basis • Salary increases will not be processed until all required documentation is received • ECAs for salary increases must include a current assessment and one from at least 90 days prior

30. Position Management and Classification

31. Position Descriptions Notes on Completing and Maintaining Position Description: • Sections 1 & 2 are standard position demographic information. • Section 3: When possible, use a “Boiler Plate” description of work unit. • Section 4: Paragraph describing purpose of position (be concise but thorough: 100-200 words). • Section 5: Key for reclassification, not as much for new positions. For new positions, may give some indication of changes within the department that affect classification.

32. Position Descriptions • Section 6: Description of Work • Be specific to the actual job duties and tasks • Detail non-apparent complexities • Do not include performance language • Focus on the what, not the how • Do not include competency language • Focus on duties and tasks, not on skillsets—things such as professional knowledge are competencies, not job duties. Do not list the competencies from the State profile as job duties.

33. Position Descriptions • Section 6: Description of Work • Each duty should be at least 5% • Duty #1 is generally largest % / most significant • No more than 5% as a ‘lump’ for ‘other duties’ • Note essential duties with an asterisk. [Key reference in evaluating ADA applicability.] • May list duties either in order of importance or in work sequence order.

34. Position Descriptions • Section 7: Competencies • Knowledge, skills, and abilities required for the position • Set competencies for each branch/role are defined by the State in the profiles • Should be able to relate the duties from Section 6 to the position’s competencies using specific examples • Can document here if one of these competencies is not required for a particular job • Can also document here if one of these competencies is particularly critical or there is a business need for high-level ability in a given area

35. Position Descriptions • Section 8: Education and Experience Required • Required experience or knowledge critical to position, without which duties of position cannot be performed. • This section should be included in recruitment posting; selected candidate must possess all essential criteria listed. • May not require higher level of qualification than the State as essential. • Must be “hard skills” that can be seen on application—i.e., not soft skills such as “excellent communication”, etc.

36. Position Descriptions • Section 9: License/Certification • Distinguish between what is a legal requirement for this work and what is a preference. • Section 10: Other Position Characteristics • Refer to instructions on HR website for some examples of other position characteristics • Essential posting requirements listed here should always match those in the actual posting • If requiring a specific degree for the posting, must demonstrate a business reason. • Section 11: Spans and Layers Certification Section • Section 12: Certification/Signatures • Required for audit purposes

37. Position Action Processing • Document Submission • Position Description with all needed signatures. • Organizational Chart as of position action • Employee Name • Classification • Position Number • Reporting Relationship clearly indicated • Initiate HRIS position action concurrent with sending paper documents to Class & Comp Consultant.

38. Position Management and Classification • Related Issues: • What if the department doesn’t agree with the classification decision? • What if the employee doesn’t agree with the classification decision or duties assigned? • What if the department does not have enough money to support the designed position? • “Nothing happens in a vacuum.”

39. Compensation Strategy & Salary Administration

40. Compensation Strategy • Management is responsible and accountable for making, justifying and documenting pay decisions that are: • Fair • Consistent • Non-discriminatory, and • Fiscally responsible. • Market Rates: • Established at each competency level by OSP using relevant market data for benchmark positions.

41. Compensation Strategy • Financial Resources • Appropriate Market Rate • Competency level & labor market dynamics. • Internal Pay Alignment • Consistent placement of employee salaries relative to position competency levels; market indices; employee-demonstrated competencies. • Required Competencies • Based on position design.

42. Compensation Strategy • Factors that do not influence pay decisions: • Years of service • Quantity of work • Additional duties do not automatically result in increased compensation. • Personal characteristics • Performance

43. Compensation Strategy • Market Index (MI): • Ratio of employee salary to market rate of position competency level. • MI 0.90 = 10% below market rate • MI 1.10 = 10% above market rate

44. Budget Restrictions and Approval Requirements • Some increases limited to non-State funding • Retention, Internal Pay Alignment, Labor Market • Increases that result in a market index of greater than 120% require the direct approval of the Dean or VC , the AVC of HR and Office of State Personnel • Positions may not be paid more than one dollar below the next highest competency market rate.

45. Salary Increases-Allowable Reasons • Newly demonstrated employee competencies • Permanent additional duties • Temporary additional duties • Labor Market • Equity/Internal Pay Alignment • Retention • Reclassification upwards (branch/role or competency change) • Promotions

46. Roberta Price OHR Class & Comp Consultant 962-3895 Roberta_Price@unc.edu Contacts: Angenette McAdoo OHR E&MR Consultant 962-9638 Angenette McAdoo@unc.edu