Alternative Pay Program Guidelines for ManagersJuly 2012

WHY IS THIS IMPORTANTEmployees Asked for Managers to Improve in:•communicating organizational goals clearly and specifically•clearly communicating performance expectations •recognizing and rewarding outstanding achievement •creating clear project and individual work plans and timetables for completion

HOW WE GOT HERE• 2000/2001 - Small committee worked on pay for

performance for entire County

• January 2003 – EMAP implemented

• January 2005 – SMAP implemented

• December 2005 – XMAP implemented

• January 2006 forward – program and department specific pay plans developed as requested

CORE PRINCIPLES• Link County Mission, Vision, and Goals to individual

performance expectations and rewards

• Increase communication

– performance expectations

– feedback

• Allow career/salary growth without re-classification or movement to another position

• Pay increases tied to performance and job growth

• Departmental/Manager pay authority

• HR Review

Current State of Alternative Pay Programs (APPs)• First one established in 1992• 17 Current Alternate Pay Programs• 800 participants – 22% of County (29% non-PS)• Overall satisfaction

– 85% thought job expectations were clear– >60% thought they were better off under APPs– Employees receive increases on time

• Still some work to do on timeliness of performance appraisals

Creating the Environment – Setting Expectations

6

PERFORMANCE CYCLE

7

PlanManager and employeeagree on plan to Include:• Link Org Goals and Employee

Key Work Expectations• Identify Indicators of Success• Development Goals

DevelopManager and employee discuss• Feedback on KWE’s • Feedback on development

goals• Coaching

AppraiseManager and employee work togetherto:• Assess performance results• Discuss development achieved • Complete performance review

PARTNERSHIP

8

Manager EmployeeCommunicate expectationsand set goals with employee

Participate in discussing, developing & agreeing to performance goals

Frequently interact with employees on their progress

Proactively report onprogress

Change the performance plan based on changed priorities

Change development plan if priorities change

Evaluate achievements andidentify areas in which employee improved or needs to improve

Review performance and development plans

Conduct a performanceassessment

Actively participate in the assessment

Conducting the Performance Appraisal

• Use On-Base – accessible through email or PRISM

• Get input from employee and peers/customers– Ask the employees to suggest 3-5 clients/colleagues that

can provide useful feedback. – Contact each person and let them know that the

conversation is confidential. – Suggested topics:

– Top 3 strengths?– 1-2 areas for development?– Any advice?

• Summarize the data into common themes - track how many times mentioned.– If mentioned by only one person, treat as an “outlier”

comment and don’t include it in the feedback.

Conducting the Performance Appraisal (continued)

• Meet with employee to review performance independently of salary discussion

• Corporate Leadership Council Presentation

– Driving Employee Engagement Through Performance Reviews (Part 2)

• Follow your department’s process for completing form, but must be signed by employee and supervisor

Grade/Step Plan

Employees move through salary range with step increases based on merit, reclassifications, promotions

Broadband Pay-for-Performance Plan

Employees move through salary range based on performance and acquiring and using knowledge and skills

Steps 2-54.1%

Steps 6-103.3%

Steps 11-192.3%

Step Increases

Reclassification5.0%

Promotion10%

Accelerated Step

variable

Transfervariable

Internal Movement

The funds available for salary increases are approximately equal for employees in grade/step and pay for performance

Average Step~2.75%

Percent of total salary budget

~0.85%

Total Broadband Budget3.6%

Job Growth

Performance Increase

DETERMINING SALARY INCREASES• Evaluate performance

– Rating of 3 to 4.4 = meets expectations– 4.5 or greater = role model

• Determine performance increase– Guidelines to be determined– Pro-rate for partial year

• Determine if additional pay adjustment needed– Range penetration– Comparison against plan criteria (if applicable)– Major changes in job duties– Internal equity

• Entire department must stay within budget – 3.6%• Fill out worksheet and forward to department director• Share with employee after review and approval by HRD

USING THE WORKSHEET• One worksheet sent to department for each division or major work

unit

– Vacancy dollars added to Department Directors worksheet for lump sums

• Use the columns highlighted in yellow

• Fill in performance rating (number)

• Enter recommended % performance increase and/or lump sum

• Worksheet features

– Calculates new rate

– Won’t allow salary over maximum

– Won’t allow exceeding budget

• Forward to Department Director who sends to HR

• HR uploads data into master spreadsheet for department and sends back to Director

DEMONSTRATION WORKSHEET

Communicating the Salary Increase

– Communicate in meeting, email, or memo– Tell employee:

• % increase• New hourly rate

– Include key factors that influenced decision– Remind employee of budget, salary

guidelines, and where they are in range– Increase will be in pay on 9/14

Schedule for Plan with September 1 Anniversary Date

Activity Due Date

Notices sent from On-Base to employees and supervisors to begin performance appraisal

July 6 - 9

Supervisor and Employee Workshops July 9 - 20

Emails sent to managers/supervisors with salary guidelines

July 30

Conduct appraisals and finish evaluations July/August

Pay Recommendations to Department Directors August 17

Department Directors Forward Pay Recommendations to HR

August 21

Review and Approval by HR August 24

Communication to staff August 27 – 31

Money in pay Sept 14

NEXT STEPS• Check PRISM Manager Self Service to make sure

performance ratings are correct

• Use new on-line Performance Planning, Development & Appraisal Form to:– Establish 3 -5 key performance expectations for

FY13– List success indicators– Complete professional development plan

• Complete by end of September

Questions?

• Laura Chalkley ext. 3505lchalkley@arlingtonva.us

• Jeanne Wardlaw ext. 3449jwardl@arlingtonva.us

• AC Source Performance and Pay PageFY 2013 Pay Plans and Alternative Pay Program Guidelines