agency overview & implementation · zagency heads, deputies, division directors zdirect reports...

June 2012 1

Agency Overview & ImplementationJune 2012

June 2012 2

Agenda

Overview of Personnel ReformWhat it is and what it is not

Key Components of Personnel Reform

Consolidation of Personnel SystemsWorkforce Management of the Workforce

Implementation

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Overview of Personnel Reform

What Personnel Reform is not…An effort to return to the days of Tammany HallThe freedom to work our employees excessively

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Overview of Personnel Reform

What Personnel Reform is…Creating a system that allows the State to attract the best talent and retain the highest performing employeesGood management“Increasing state productivity, eliminating bureaucratic red tape, and ultimately saving our taxpayers money”

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Key Components of Personnel Reform- Consolidation of Personnel Systems

Gaming

Governor’sOffice

PSPRS

ASRS

Secretary of State

Tourism

StatePersonnel

System

ADOA Personnel

System

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Key Components of Personnel Reform- Workforce

100%0%PSPRS100%0%Retirement Sys88%12%Secretary of State100%0%Tourism100%0%Gaming100%0%Governor’s Office20%80%ADOA Personnel Sys

UncoveredCoveredPersonnel System

Current State

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ADOA System Agencies with 75% or more Uncovered Employees

AcupunctureAdministrative HearingsAgricultureAppraisalArts CommissionAthletic TrainingAttorney GeneralAuto Theft AuthorityBarber ExaminersBehavioral HealthCharter SchoolsClean ElectionsCriminal Justice CommDeaf & Hard of HrngDental ExaminersEarly ChildhoodGeological Survey

Highway SafetyHomeland SecurityHomeopathic Med ExamHousingLiquor Licenses DeptMedical BoardMilitary AffairsMine InspectorNaturopathic BoardNavigable StreamsNursing Care ExamOccupational TherapyOpticians, DispensingOptometryOsteopathic ExaminersPharmacy Board

Physical TherapyPodiatry ExaminersPostsecondary EducationPower AuthorityPrivate Postsecondary EdPsychologist ExamRacingReal EstateResidential Utilities (RUCO)Respiratory CareSchool Facilities BoardTax AppealsTechnical RegistrationVeterinary Medical ExamWater InfrastructureWeights And Measures

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20%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Uncov

Covered


• The majority of state employees in the Executive Branch are covered by a merit system

• Certain positions are exempted (uncovered) by statute, e.g., elected officials

• ADOA determines if other positions meet statutory criteria to be uncovered

Before Reform

Data from Jan 25, 2012

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At the time of implementation:Beginning September 29, 2012, the following become at-will uncovered:

All supervisorsEmployees in positions of Grade 19 or higherEmployees in Attorney positionsEmployees in Information Technology positionsAll new hires

A covered employee would become at-will uncovered if any of the following occurs beginning September 29, 2012:

Voluntarily accepts a change in assignmentVoluntarily elects to become an at-will uncovered employee

Current covered employees not addressed above would remain covered as long as the employee continues in covered status with no break in serviceEmployees in positions that require certified Full Authority Peace Officers, Correctional Officers, and Adult Community Corrections Officers would remain covered

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97%

55%

48%

42%

Uncovered

3%

45%

52%

58%

Covered

34510Attorney

799

3,550

2,265

Uncovered

646IT Positions

3,896Grade 19

3,079Supervisors

CoveredCriteria

Current State

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Uncov

Covered

26%

74%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Uncov

Covered

Before ReformExcluding Full Authority Peace Officers, Correctional Officers, and Adult Community Correctional Officers that will remain covered


• It is estimated that at the end of 4 years, over 82% of the workforce will be at will uncovered employees

Before Reform26%

Implementation48%

Year 162%

Year 272%

Yr 378%

After 4 Years18%

Yr482%

After Reform

Data from Jan 25, 2012

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Employees may volunteer to become at-will uncovered

Employees may volunteer any time after Sept 29 (not eligible for retention payments)Employees that declare their intent to volunteer to become uncovered prior to Sept 29 will be eligible for retention payments

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Retention PaymentsEligibility:

Current uncovered employeesEmployees required to become uncoveredEmployees that volunteer to become uncovered

Will be considered an “add on” to employee’s pay; calculated as 5% of base payPayments will begin Sept 29 and will first appear on the paycheck of Oct 19Payments will continue for 19 pay periodsA covered employee may volunteer to become uncovered; must declare their intention through an open enrollment period

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Two types of employees –Covered and Uncovered

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Personnel RulesGuiding Principles

Recruit, hire, and promote based on knowledge, skills, and abilities after competitionCompensation based on merit, performance, job value, and marketTraining employees to improve performanceRetain employees based on performance, correcting where possible and separating if performance is inadequateManaging without discrimination (race, color, sex, age, political affiliation, religious creed, etc)Protection against coercion for partisan politics

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Three types of employees –Covered, Uncovered, and Uncovered

Political Appointments

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Political AppointmentsGovernor’s OfficeElected Officials, Head of a Primary Component

Direct ReportsDetermine Policy

Agency Heads, Deputies, Division DirectorsDirect Reports

Attorneys in the Attorney General’s OfficeInvestment related positions in the Retirement System or PSPRS

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Guiding PrinciplesRecruit, hire, and promote based on knowledge, skills, and abilities after competitionCompensation based on merit, performance, job value, and marketTraining employees to improve performanceRetain employees based on performance, correcting where possible and separating if performance is inadequateManaging without discrimination (race, color, sex, age, political affiliation, religious creed, etc)Protection against coercion for partisan politics

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Political AppointmentsPolitical Activities

May be a member of any national, state, or local committee of a political party, including serving as a precinct committee personMay become a candidate for nomination or election to any paid public office

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Common Misconception

“The difference between covered and uncovered employees is that management can work uncovered employees as many hours in a week as needed without any additional compensation”

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Covered – UncoveredUncovered refers to the at-will status of the employee; they may be separated at any time for any reason other than an unlawful reason

Exempt – Non-ExemptThe Fair Labor Standards Act (FLSA) governs which positions may be exempt from the requirement to pay overtime for hours worked beyond 40 in a work week

Personnel Reform DOES NOT affect an employee’s FLSA status

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Key Components of Personnel Reform- Management of the Workforce

Employee Life Cycle

Hiring

ManagingDeveloping

Compensating

Separating

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Employee Life Cycle

Hiring

ManagingDeveloping

Compensating

SeparatingClassification SystemCurrent State:

40 years oldLack of integrity – has been used to address compensation issues

Future State: Implement New (sound system “O-Net”)Simplified – Reduced number of classesConsistent – Basic job duties described/classified across all agenciesFoundation for integration

Will not be implemented by Sept 29

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Employee Life Cycle

ManagingDeveloping

Compensating

Separating Hiring

Interviewing and Relocating out-of-state candidates Verifying education and work historyOpportunities to generate efficiencies

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Hiring – Interviewing and Relocating Out-of-State Candidates

Subject to ADOA approvalAgencies report to OSPB and JLBC by Sept 1 each year if monies spent

ADOA will establish statewide policy; with input from agenciesIt is anticipated that there will be some limitations (e.g. high level positions, difficult to fill, etc)

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Hiring – Verification of ApplicantsRecruiting the right employee for the right job is one of the most difficult and most critical challenges51% of resumes contain inaccuraciesADOA will develop, with input from agencies:

A toolkit for screening applicantsA standard employment application

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Hiring – Efficiencies in the ProcessSignificant time spent attracting new employees –effective pre-boarding and on-boarding processes can help retain themPre-Boarding

Provide personalized web site for new hires to use PRIOR to their first day of workKeep new hire engaged through on-line “tours” of the organizationEliminate new hire paperwork through on-line reviews and certifications

On-BoardingAn EIN is created when the employment offer is acceptedAgency can set up new hire’s PC, LAN, email, YES account, phones, etc, PRIOR to their first day of workEnable mandatory training on the first day

It is the intent to have functionality in place by Sept 29; personalized agency web sites will take a little longer

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Employee Life Cycle

Developing

Compensating

SeparatingHiring

Performance ManagementAdministrative LeaveEmployee ComplaintsEmployee GrievancesDisciplinary ActionsAppeals

Managing

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Managing – Performance ManagementCurrent State:

Not all employees participate in a performance management processPASE form is complex, cumbersome, and time consumingNo automation supportNo integration of performance appraisal with other management decision systems (promotion, discipline, compensation)No statewide employee training

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Managing – Performance ManagementFuture State:

Performance evaluations for all employees (covered and uncovered)Simplified evaluation formStatewide and agency-specific competencies, employee-specific resultsPerformance standards will be defined for consistencyComprehensive management and employee training Automation support of the process through YES

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Managing – Performance Management

ADOA has researched best practices (private and public); still need agency input on key componentsGoal is to transition all agencies to new system effective January 1, 2013Implemented agency-by-agency to accommodate the transition (i.e. timeline may be modified to address existing agency rating periods)

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Managing – Administrative LeaveAllows agency head to place an employee on administrative leave temporarily to investigate alleged wrongdoingCurrent State:

There is no restriction on how long an employee may be on administrative leave

Future State: Weekly reporting to ADOA when administrative leave totals 80 consecutive hoursAdministrative leave may not exceed 30 working days without ADOA approval

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Managing – Employee ComplaintsRequires ADOA to establish procedures for reviewing harassment and discrimination complaints (covered and uncovered)Complaints alleging harassment or discrimination may be elevated to the ADOA Director

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Managing – Employee GrievancesCovered employees will still be able to grieve disciplinary actionsFinal decision by agency director

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Managing – Disciplinary ActionsSuspensions over 80 hours, demotions, and dismissals must be reviewed by ADOA (except for uncovered political appointments)Agencies with an on-site ADOA HR Manager will have delegated review authority

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Managing – Employee AppealsCovered employees may appeal suspensions over 80 hours, demotions, and dismissals to the State Personnel BoardCovered, Full Authority Peace Officers may appeal suspensions over 40 hours, demotions, and dismissals to the Law Enforcement Merit System Council (LEMSC)

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Managing – Board/Council AuthorityThe Board/Council shall affirm agency decision unless it was arbitrary and capricious or not proven by a preponderance of evidence, otherwise the Board/Council may recommend modificationThe agency head shall make the final decision

LEMSC hearings: if the Director does not accept the Council’s recommendation, the Director shall state the reason(s) for rejecting the recommendation

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Employee Life Cycle

Compensating

SeparatingHiring

Managing

Short-Term NeedsProvide training to managers and supervisors

Leading people through changeTechnical aspects of managing an at-will workforce

Developing

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We are setting in motion fundamental changes that will challenge leaders at all levels in government to do things differently.

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Long-Term NeedsTransforming the culture of the workforce will require long-term and strategic training

Intent to have available in 2013

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Employee Life Cycle

ManagingDeveloping

SeparatingHiringCompensating

Compensatory Leave/OvertimeAnnual LeaveSalary Strategies

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Compensating – Compensatory Leave/OvertimeCurrent State:

Certain employees exempt from FLSA to receive leave for each hour worked over 40 in a work weekCreates inequities within the workforceInconsistent with other employersLimits flexibility of management in the scheduling of the workforce

Future State: Employees exempt from FLSA will not receive compensation for hours worked over 40 in a work week

Does not impact law enforcement and fire fighting personnel

Employees with a current balance of compensatory leave will still be able to use their accrued leave (but they will not be able to earn additional leave)

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Compensating – Annual LeaveConsistent practice across the workforce

Accrual ratesMaximum accumulationPartial Day Absences

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Compensating – Salary StrategiesA variety of strategies are under consideration:

Salary Adjustments (changes base pay)Discretionary (case by case)Conditional (agencies design plan, e.g. steps)Counter Offer

Pay Supplements (does not change base)Retention PaymentsConditional (various stipends)

Incentives (one-time payments)IndividualGoal-Based (group payments, similar to PIP)Hiring IncentiveReferral Bonus

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Employee Life Cycle

ManagingDeveloping

Compensating

HiringSeparating

Reduction in ForceDismissals

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Separating – Reduction in ForceApplies only to covered employeesCurrently equal consideration given to performance and seniorityUnder new system, retention will be based only on performance

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Separating – DismissalsDismissals must be reviewed by ADOA (except for uncovered political appointments)Agencies with an on-site ADOA HR Manager will have delegated review authority

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Employee Life Cycle

Hiring

ManagingDeveloping

Compensating

Separating

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Implementation

Critical Success FactorsMust be a collaborative effort; work together

Agency to appoint an agency leadHR to assign a lead to work with each agency

Common implementation plan; leads will tailor the plan to each agencyCommunicate, Communicate, Communicate

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Implementation

Next StepsAssignment of an agency lead

Must have the confidence of DirectorGood communicatorResults focused; keep agency on task; get things done

Meet with agency to discuss implementation planIdentify employees that will become uncoveredIdentify employees that will be impacted by other aspects of reformEstablish workgroups to address policy issuesEstablish a web page for agencies/employees to obtain information about reform

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Implementation

Next Steps – Transition to UncoveredIdentify employees that will become uncovered on Sept 29

SupervisorsGrade 19 and AboveEmployees in Information Technology positionsEmployees in Attorney positions

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Implementation

Next Steps – Other ImpactsIdentify employees

Full Authority Peace OfficersPolitical AppointmentsFLSA-Exempt employees that will no longer be eligible for compensatory leaveEmployees on Mobility AssignmentsEmployees on Special Detail AssignmentsEmployees on Administrative Leave

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Implementation

Work GroupsPotential Areas to Include:

Performance ManagementCompensation Strategies and other Incentives (e.g. Recognition Leave)Complaint ProcessDiscipline/Grievance ProcessTraining and DevelopmentClassification SystemMeasures of Success

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Implementation

Other IssuesReview of Agency Employee Handbooks and Agency PoliciesPersonnel Reform Web PageMoratorium on Classification/Personnel ActionsEnd Date (Mobility/Special Detail)

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QUESTIONS?

Contact Your Agency Human Resources Office

agency overview & implementation · zagency heads, deputies, division directors zdirect reports...

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