May 2018
Agenda ● Introductions ● Update on “Communications Site” ● Agency Case Study: Implementing a Merit Incentive Program (Charter School Board) ● The “S” series (Greg Carmichael) ● Equal Pay Act Self Audit (Sheila Krueger) ● Roundtable: A Variety of Topics ● June Meeting request 2
Introductions 3
Name: Sheila Krueger Agency: ADOA What’s something you want to do in the next year that you’ve never done before? 4
Communications http://hr.az.gov/AZ CompNet/AZCompNetwork.asp 5
Agency Case Study 6
IT & the ”S” Job Classes 13
Arizona Department of Administration Classification Reform March 21, 2014 March 21, 2014 14
Review of “IT” Project Market research – Towers Watson salary survey ■ Revise classifications ■ Before: 5 broad-band “classifications” e.g. IT 4 ■ After: Specific classifications, matched to market jobs ■ CIO collaboration – finalize classifications ■ Agencies recommended allocations of current incumbents to ■ proposed classifications Appropriate salary ranges to be established ■ Market defines midpoint ■ Range width – goal 50% wide, up to 70% ■ March 21, 2014 15
IT Classification Infrastructure 30 * Business Analysis Senior Manager 29 * Business Analysis Manager 28 * Business Analysis Supervisor Business Senior Business Business Analyst Analyst Architect 24 * 26 * 28 * July 22, 2014 16
“IT” – Example 1 ■ Market – Senior Info Security Analyst - $64,100 ■ Range (50%) = $51,280 - $76,920 ■ Incumbents are below minimum ■ Extend range (70%) = $47,500 - $80,700 ■ All incumbents are now within the range Maximum Minimum Midpoint $47,500 $64,100 $80,700 March 21, 2014 17
“IT” – Example 2 Market – Senior Business Sys Analyst - $52,300 ■ Range (50%) = $41,840 - $62,760 ■ Incumbents are below minimum ■ Extend range (70%) = $38,700 - $65,900 ■ Incumbents are still below minimum ■ Are they classified correctly? (Yes) ■ Extend minimum as far as necessary ■ All incumbents now fall within the range ■ Target Min Maximum Minimum Midpoint $65,900 $38,700 $52,300 $32,900 18 March 21, 2014 18
“IT” – Salary Management Incumbents below target minimum... ■ No funding was provided ■ Agency funded within current appropriation ■ Moving forward – agencies may use existing compensation ■ strategies In Grade Adjustment (retention) if below target minimum ■ Blanket exemption to 5% limit and performance requirement reduced to “Meets ■ Expectations” If equal to or above target minimum, In Grade Adjustment may be used to address ■ compression issues (no blanket exemptions) Target Min Maximum Minimum Midpoint $65,900 $38,700 $52,300 $32,900 March 21, 2014 19
Current System-Numbered Series ■ Customer Service Representative 1, 2, 3 ■ Significant salary overlap from one class to next ■ No meaningful differentiation ■ Ranges are wide and are not tied to market ■ Many at “3” level have salary below midpoint of “1” March 21, 2014 20
Current System-Numbered Series ■ Accounting Technician 1, 2, 3 ■ Significant salary overlap from one class to next ■ No meaningful differentiation ■ Ranges are wide and are not tied to market ■ Most incumbents at “3” level; level “1” not used n = 51 n = 17 n = 6 March 21, 2014 21
Example - Operational Customer Service Representative series ■ ■ Some agencies will have authority to reallocate within the series If employee develops skills/experience, AND the job duties of the position also expand, ■ agency may reallocate the position to a higher level in the series; salary increases commensurate with position increase Vacant positions may be reallocated up or down at agency discretion ■ Larger agencies with multiple positions may choose to offer promotional opportunities with ■ competition ■ Reallocation from one series to another remains a Central HR function Example; reallocation from staff to supervisor ■ March 21, 2014 22
Example - Reallocation Reallocation Downward ■ Employees with the most senior title…yet salary below midpoint of entry level ■ Reallocate “down” to lower classification; no change in salary – only title change ■ Resolves the worst cases – still budget neutral ■ May generate employee relations concerns ■ Agency may subsequently reallocate upward ■ March 21, 2014 23
Example - Salary Increase ■ Customer Service Representative series If employee and position are truly performing at the senior level ■ ■ Salary Increase Option Agencies may use the In Grade Adjustment strategy similar to the “IT” ■ illustration Blanket exemption to 5% limit and performance requirement reduced to “Meets ■ Expectations” If equal to or above target minimum, In Grade Adjustment may be used to ■ address compression issues (no blanket exemptions) March 21, 2014 24
Example - Deferred Action ■ Customer Service Representative series ■ If employee and position are truly performing at the senior level ■ No action option Agencies will be encouraged to develop a plan of action to resolve these cases ■ As lowest paid incumbents are addressed, salary ranges will be adjusted toward target ■ range March 21, 2014 25
• Grade Equivalent • Minimum • Market Entry • Midpoint • Maximum July 22, 2014 26
Salary Adjustments The entire project is budget neutral ■ Some classifications may experience no significant changes in salary ranges ■ Most are expected to have higher ranges than currently allocated ■ Options for addressing incumbent salaries (agency must ■ have sufficient funding available) In-Grade Adjustment is a strategy for incumbents paid below the Market ■ Entry Accurate job descriptions are critical ■ Salary considerations still apply ■ Performance, internal equity, prior salary, prior incumbent, midpoint of ■ range, supervisor/subordinate, difficulty recruiting, etc. July 22, 2014 27
Current Strategies - 2018 ■ Consolidate and standardize ■ No changes to numbered AREG salary schedule ■ Transition back to AREG when and where possible ■ If incumbents are still outliers...we will be contacting the agencies to resolve those issues; Reallocate to a lower level (this is NOT a demotion!) ■ Increase salary -In-Grade Adjustment ■ Manage the employee and position appropriately ■ 28
Equal Pay Act Self-Audit 29
Equal Pay Act Self-Audit Step 1: Conduct recruitment self-audit Step 2: Evaluate your compensation system for internal equity Step 3: Evaluate your compensation system for industry competitiveness Step 4: Conduct new job evaluation system if needed Step 5: Examine your compensation system, and compare job grades, scores Step 6: Review data for personnel entering your company Step 7: Assess opportunity for employees to win commissions and bonuses Step 8: Assess how raises are awarded Step 9: Evaluate training, promotion opportunities Step 10: Implement changes where needed, maintain equity, and share your success 30
Step 1: Conduct recruitment self-audit 1. Know yourself and your candidates 2. Meet them where they are 3. Don’t look at names 4. Referrals from current employees 5. Let candidates know you value diversity 6. Try unique candidate screening techniques 7. Segment diversity prospects and target appropriately 8. Partner with schools 9. Avoid the “quick hire” 10. Create a culture that supports diversity 11. Make your search international 12. Look beyond your usual places 13. Build a diverse management team first 14. Send the right message in your employer marketing 15. Advertise in diverse media 31
Roundtable 32
HR Staff and Professional Memberships 33
DNU = Do Not Use 34
Intern Establishment 35
Resources May 22 Littler: Timely Talk about Wage and Hour Law Regular Rate Perils www.littler.com/events (search using event type “Webinar”) Free May 26 Arizona Total Rewards Association: Lunch & Learn on Market Pricing www.aztotalrewards.com $25 includes lunch 36
Questions??? 37
Next Meeting Tuesday, June 19th 1-3pm ADOA Room 300 Registration will be via TraCor
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