North Carolina GPAC North Carolina GPAC Review of State Personnel - - PowerPoint PPT Presentation
North Carolina GPAC North Carolina GPAC Review of State Personnel Practices Review of State Personnel Practices and Career Banding and Career Banding January 2008 January 2008 Presentation Objectives Presentation Objectives To Discuss
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Bruce G. Lawson, CCP Bruce G. Lawson, CCP
Former City Manger, County Assessor/Tax Collector, and Assessor/Tax Collector, and County Administrative Officer County Administrative Officer
25 Years Compensation and HR Consulting Experience HR Consulting Experience
Wrote and teaches the IPMA-HR Broadbanding course IPMA-HR Broadbanding course
300+ studies completed successfully successfully
James C. Fox, Ph.D.
James C. Fox, Ph.D.
Former National Public Sector Practice Leader for Sector Practice Leader for Ernst & Young Ernst & Young
25+ Years Compensation and HR Consulting Experience HR Consulting Experience
Teaches job evaluation for WorldatWork WorldatWork™ ™ & IPMA-HR & IPMA-HR performance based pay performance based pay
300+ studies completed successfully successfully
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NC Policies & Data Focus Groups & Interviews Best Practices Of Other Governments
A v a i l a b l e D a t a P e r s
n e l p
i c i e s & p r a c t i c e s Legislators/Staff Ag/Univ Execs HR Execs Employees Union Reps US/Military States Private Sector
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Personnel decentralization requires trained local HR, trained local HR, system system to audit local to audit local decisions & appropriate MIS info. decisions & appropriate MIS info.
OSP should have stronger right to rescind delegation and enhanced audit rescind delegation and enhanced audit function. function.
OSP should have dotted-line relationship with agency/university HR relationship with agency/university HR directors. directors.
State/OSP should coordinate centralized: centralized:
Training programs;
Coordinated recruitment;
Benefits administration.
OSP authority: OSP authority:
Policy & rule making;
Training;
Info/data maintenance; maintenance;
Personnel action approval; approval;
Delegation to agencies;
Non-compliance corrective actions. corrective actions.
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The proposed changes are thoughtful The proposed changes are thoughtful and represent compromises designed to and represent compromises designed to enhance administration of Chapter 126. enhance administration of Chapter 126. The proposals have not been acted The proposals have not been acted upon by the NC General Assembly. upon by the NC General Assembly. Changes are consistent with our Changes are consistent with our specific findings and recommendations specific findings and recommendations Recommended : Recommended :
Adoption of the changes as proposed.
Proposed changes to Proposed changes to Chapter 126 to improve Chapter 126 to improve
personnel system have personnel system have been reviewed/approved been reviewed/approved by OSP, SEANC, local by OSP, SEANC, local government and government and agencies. agencies.
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Cost forecasting should be direct with decision to lead or lag the market. with decision to lead or lag the market.
The General Assembly should receive recommendation of labor market recommendation of labor market movement/performance-based movement/performance-based increases from OSP. increases from OSP.
OSP sources may include:
Private org projections
Year-to-year change in benchmarked classes benchmarked classes
Projections from USDL Employment Cost Index Employment Cost Index
Restrictions on lapsed funds. funds.
In-range, range/other adjustments. adjustments.
Manipulated classification classification – – lack of lack of realistic market comps. realistic market comps.
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Increases should apply to midpoints
journey level for career-banded journey level for career-banded positions including any lapsed funds. positions including any lapsed funds.
Agency/university leadership should be held accountable for proper be held accountable for proper expenditure of funds up to limits and expenditure of funds up to limits and within occupational: within occupational:
Guidelines;
Polices & procedures;
Restrictions & rules.
Estimated that NC pays 7% below market. pays 7% below market.
Career banding-- clarified pay/market clarified pay/market relationship and budget relationship and budget impact. impact.
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Universities not using BEACON HR should provide monthly data compatible should provide monthly data compatible for statewide data consolidation. for statewide data consolidation.
BEACON automated recruitment module should be implemented ASAP to module should be implemented ASAP to save approx $15M. save approx $15M.
OSP should utilize BEACON reporting capacity to improve employment trend capacity to improve employment trend analyses. analyses.
OSP should utilize enhanced timely statewide data availability to audit HR statewide data availability to audit HR delegation to agencies/universities. delegation to agencies/universities.
BEACON will improve HR and finance data tracking. data tracking.
BEACON BEACON – – HR and HR and financial mgmt system financial mgmt system when implemented: when implemented:
Integrates/tracks HR & financial mgmt info; & financial mgmt info;
Replaces PMIS for agencies & 9 agencies & 9 universities; universities;
Provides for faster, more accurate & more accurate & accessible HR data, accessible HR data, reports, and analyses. reports, and analyses.
Improves OSP
ability of A/U practices. ability of A/U practices.
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BEACON module associated with automated recruitment should be automated recruitment should be implemented ASAP to save approx implemented ASAP to save approx $15M. $15M.
Training should be centralized with better utilization of university better utilization of university resources. resources.
Mandatory mediation should be required to handle grievances. required to handle grievances.
70-year old flawed classification system classification system absent of contemporary absent of contemporary hiring practices. hiring practices.
Promotion rewards service, not competency. service, not competency.
Training often considered luxury considered luxury rather than necessity rather than necessity resulting in regulators resulting in regulators less knowledgeable than less knowledgeable than
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Require the implementation of career Require the implementation of career banding for all occupational groups to: banding for all occupational groups to:
Overcome cumbersome pay and personnel practices; personnel practices;
Use the best HR approach envisioned at this time to proactively address HR; at this time to proactively address HR;
Integrate workforce planning, recruitment, selection, hiring, recruitment, selection, hiring, performance mgmt, talent mgmt, and performance mgmt, talent mgmt, and compensation; compensation;
Transform and improve overall mgmt
To address issues, OSP To address issues, OSP initiated career banding initiated career banding to: to:
Shift from reactive to proactive employee proactive employee mgmt; mgmt;
Provide tools to change how State recruits, how State recruits, classifies, promotes & classifies, promotes & pays; pays;
Enable managers to critically examine ops as critically examine ops as to emp numbers/cost to emp numbers/cost necessary. necessary.
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Enable on-line application using the BEACON module which automates the BEACON module which automates the “ “one employer
” approach. approach.
Use career banding, the best HR approach envisioned at this time to approach envisioned at this time to proactively address HR deficits. proactively address HR deficits.
Revise recruitment/promotion to focus on demonstrated competencies focus on demonstrated competencies rather than seniority. rather than seniority.
Applicant pool insufficient due, in part, insufficient due, in part, to hand-written apps & to hand-written apps & lack of ability to apply lack of ability to apply for multiple jobs with for multiple jobs with
Recruitment & promotion based on promotion based on graded classes graded classes – – years years
competency. competency.
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Advertise only realistic market competitive hiring rates. competitive hiring rates.
Consider hiring incentives (often cheaper than vacancies) such as cheaper than vacancies) such as retention bonuses/moving allowances. retention bonuses/moving allowances.
Utilize on-line & national job postings for hard-to-recruit positions. for hard-to-recruit positions.
Employ marketing approaches to raise awareness about significance & awareness about significance & challenges of State service. challenges of State service.
Salary rates advertised reflect advertised reflect ranges not fully ranges not fully available for hiring available for hiring – – false expectations false expectations created. created.
NC fails to promote itself as employer of itself as employer of choice choice – – pays below pays below market. market.
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General Assembly should budget positions at market comp rate & positions at market comp rate & provide more lapsed fund flexibility. provide more lapsed fund flexibility.
Continue implementation of career banding - allows managers to conduct banding - allows managers to conduct critical HR assessments. critical HR assessments.
Permit longer overlapping terms of service to allow knowledge transfer. service to allow knowledge transfer.
Remove retirement 6-month restriction--returning to State service. restriction--returning to State service.
Permit phased retirement options.
(There are no IRS restrictions to changing the retirement programs as changing the retirement programs as
Workforce planning inhibited by the onerous inhibited by the onerous effort required to alter effort required to alter class or pay. class or pay.
Only limited overlap in service for knowledge service for knowledge transfer permitted. transfer permitted.
Retirees represent significant significant “ “brain drain brain drain” ”
history. history.
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Require that at least 2% of each agency/university personnel budget be agency/university personnel budget be devoted to training. devoted to training.
Mission-critical employees should be required to obtain 20-40 hrs training required to obtain 20-40 hrs training each year or 60-120 hrs every 3 years. each year or 60-120 hrs every 3 years.
Extend university on-line/other learning to meet State training needs. learning to meet State training needs.
Resources should be made available for professional cert and personal for professional cert and personal safety for those involved with safety for those involved with custodial populations training. custodial populations training.
OSP should facilitate with each agency ID of training solutions. agency ID of training solutions.
Universities not fully utilized for NC training. utilized for NC training.
Agency mgmt does not always permit training always permit training
Industry best practices practices – – at least 2% at least 2%
training. training.
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Replace obsolete class system rather than attempt repair. than attempt repair.
eRecruitment/other web-based solutions should be part of statewide solutions should be part of statewide system of recruiting, selecting, and system of recruiting, selecting, and hiring for all agencies. hiring for all agencies.
Fund authorized comp programs consistent with market & sound HR consistent with market & sound HR practices. practices.
Adopt a mandatory mediation policy used by progressive orgs for all used by progressive orgs for all grievances and potential separations. grievances and potential separations.
NC Class system
NC recruitment falls short of attracting short of attracting needed talent. needed talent.
State has not funded comp as provided for in comp as provided for in Chapter 126 resulting Chapter 126 resulting “ “gaming the system gaming the system” ” comp practices. comp practices.
Discipline, termination, separation & appeals are separation & appeals are costly, time consuming & costly, time consuming & adversarial. adversarial.
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Career banding as designed in NC may be the only process currently available be the only process currently available to meet the State to meet the State’ ’s need for ID s need for ID’ ’ing ing the right number of employees: the right number of employees:
Performing the right tasks;
Receiving the right level of compensation. compensation.
Since no other system integrates these aspects as well in one integrated these aspects as well in one integrated system, the State would be wise to system, the State would be wise to proceed with its career banding proceed with its career banding implementation ASAP. implementation ASAP.
Career banding found in State government in State government since 1996. since 1996.
There is no other State program State program comparable to NC. comparable to NC.
Other States have simply modified salary simply modified salary ranges but have not ranges but have not incorporated incorporated competency assessment competency assessment as in NC. as in NC.
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Employees & managers must adjust to Employees & managers must adjust to new rules and procedures which: new rules and procedures which:
Is a change management rather than a system challenge; a system challenge;
Can be overcome given time, training and consistency in operations without and consistency in operations without dual HR systems. dual HR systems.
NC has implemented a NC has implemented a career banding system career banding system more complete & more complete & integrated than any integrated than any
Adequate procedures Adequate procedures are in place to handle are in place to handle personnel transactions personnel transactions with oversight & control. with oversight & control.
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Current classification and compensation system costs the State compensation system costs the State more in salary increases than career more in salary increases than career banding. banding.
Current career banding procedures control potential salary abuse whereas control potential salary abuse whereas the current graded system has not. the current graded system has not.
The current system of The current system of legislative authorization legislative authorization for salary increases for salary increases does not work to contain does not work to contain salaries. salaries.
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The State should adopt a consistent pay policy and pay in accordance with pay policy and pay in accordance with the policy for all positions. the policy for all positions.
The State should act as “ “one
employer employer” ” with pay consistency among with pay consistency among agencies within 10% of median pay. agencies within 10% of median pay.
OSP should continue to provide
career banding is fully implemented. career banding is fully implemented.
OSP should link the scales and facilitate simplification. facilitate simplification.
NC has a market competitive pay policy competitive pay policy for teachers different for teachers different than that for State than that for State employees. employees.
The same job may be paid differently from paid differently from agency to agency. agency to agency.
There are multiple HR processes currently. processes currently.
Performance eval & competency tools have competency tools have differing scales. differing scales.
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General Assembly should audit career banding 2 years after the last banding 2 years after the last
There should be a focus on comparison of career banded and comparison of career banded and graded system: graded system:
Effects;
Management resources required;
Consistency of application;
Impact on workforce quality.
Data on turnover, recruitment quality, grievances & comp should be quality, grievances & comp should be collected in support of comparison collected in support of comparison efforts. efforts.
Although career banding has been in banding has been in place for several years, place for several years, experience base is experience base is minimal. minimal.
Objective data to conduct evaluation is conduct evaluation is largely either not largely either not captured by the PMIS captured by the PMIS
BEACON should provide better more provide better more accessible evaluation accessible evaluation data. data.
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The State should require career banding be implemented. banding be implemented.
Pay levels to assure success should be funded. funded.
Estimated market parity cost is $350M in additional salary/benefits $350M in additional salary/benefits – – 7% of the total salary/benefits budget 7% of the total salary/benefits budget for State Personnel Act employees. for State Personnel Act employees.
Career banding is at the peak of refinements the peak of refinements
class & comp techniques. class & comp techniques.
No other practices are better for achieving better for achieving cohesive, consistent cohesive, consistent hiring of the right hiring of the right employees doing the employees doing the right things for the right things for the right comp. right comp.
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OSP leadership, training, guidance and oversight will be required. and oversight will be required.
Dedicated support and time from agency mgmt and agency HR agency mgmt and agency HR professionals to manage professionals to manage implementation should be required. implementation should be required.
OSP believes that OSP believes that career banding can be career banding can be implemented in all implemented in all
within 3-5 years. within 3-5 years.
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