HomeMy WebLinkAboutAgenda - 10-20-1998 - 8g1
Orange County
Board of Commissioners
Action Agenda Item Abstract
Meeting Date: October 20, 1998
Action Agenda
Item No.
Subject: Personnel Ordinance Revision — Promotion Pay Policy
Department: Personnel
Attachment(s):
1 — Draft Personnel Ordinance Revision -
Article 5.0, Pay Plan
2 — Promotion and Reclassification Policy
Survey of Area Employers
Public Hearing: Yes No X
Budget Amendment
Needed: Yes No X
Information Contact:
Elaine Holmes, Personnel Director
Extension 2550
Telephone Number:
Hillsborough
732 -8181
Chapel Hill
968 -4501
Durham
688 -7331
Mebane
227 -2031
Purpose: To consider amending the Orange County Personnel Ordinance
to change the policies covering employee pay handling on
promotion and reclassification.
Background: At the September 1, 1998 meeting, the Board considered this
proposed Personnel Ordinance Revision covering Promotion
Pay. At that meeting the Board decided to defer consideration
of this policy change until the planned employee compensation
work session. The Board held the employee compensation work
session on October 13, 1998. The Board did not have the
opportunity to take action on this proposed change at the
October 13 work session and it is presented here for the Board's
consideration.
Promotion
A promotion occurs when an employee transfers to another
position at a higher salary grade. For example, it is a promotion
if an employee transfers from a Child Protective Services Social
Worker position (salary grade 70) to a Child Protective Services
Supervisor position (salary grade 72).
Currently, the Orange County Personnel Ordinance provides
that when an employee is promoted the employee receives a
one -step salary increase (about five percent) or an increase to
2
the minimum step of the new salary range, whichever is higher.
In exceptional cases with the Manager's approval, the
department may grant a two step salary increase (about 10
percent).
The Attachment 1 draft Personnel Ordinance revision would
provide that upon promotion the employee:
❑ Receives at least a one step (about five percent) salary
increase or an increase to the minimum of the new salary
range whichever is higher.
❑ May receive an increase of up to one step for each salary
grade involved in the promotion if he or she has the
commensurate qualifications. For example, a promotion from
Child Protective Services Social Worker to Child Protective.
Services Supervisor would involve two salary grades (grade
70 to 72) and the employee could receive a 10 percent salary
increase, if warranted by his or her education and
experience.
❑ In exceptional cases with the approval of the Manager, may
receive a salary increase greater than one step for each
salary grade involved in the promotion. Such cases could
involve situations where the employee has qualifications
above those for the salary in the new range yielded by
granting one step for each grade or situations of severe labor
market pressure.
Reclassification
A reclassification occurs when an employee's current position is
_ reassigned from one classification to another classification at a
higher salary grade as a result of changes in job duties and
responsibilities. For example, a Deputy Sheriff I (salary grade
66) is reassigned from patrol duties to work as a narcotics
investigator. Personnel studies the position's changed duties
and responsibilities and this results in reclassification of that
position to Deputy Sheriff /Investigator (salary grade 68).
The Attachment 1 draft Personnel Ordinance revision would
provide that salary setting for a reclassification to a higher salary
grade is handled in same way as for a promotion.
Need For the Change
The draft Personnel Ordinance revision -is designed to serve the
following objectives:
❑ To provide greater incentive to employees to pursue
promotion. A promotion requires the employee assume more
difficult and demanding duties. Often this involves
substantial additional work time and effort. The current
salary policy has resulted in some employee decisions not to
pursue promotion.
❑ To promote retention of the existing workforce by providing
greater advancement opportunity.
❑ To provide greater flexibility for department management in
maintaining internal equity and granting salary increases
commensurate with individual qualifications.
❑ To provide consistency between the salary recognition
granted for assumption of greater responsibility in the
employee's own position as for moving to another position.
❑ To provide greater equity between the salary an internal
candidate might receive for promoting to a position in
comparison to the salary of a candidate being hired from
outside the County.
Other Area Employers
Personnel surveyed 12 area governmental employers as to their
promotion pay handling policy. Attachment 2 shows the survey
results. Of the 12 employers surveyed as to promotion:
❑ 10 provided for at least a five percent salary increase and
two provided for at least 2.5 percent.
❑ Nine provided fora salary increase greater than five percent
or the new minimum and seven provided the latitude for
increases greater than 10 percent.
As to reclassification, seven of the employers surveyed provide
the same pay handling as for promotion.
The draft Personnel Ordinance revision is modeled most closely
after the State government and University at North Carolina at
Chapel Hill policies. These policies provide the latitude to take
account of qualifications, equity and labor market.
Estimated Costs
During fiscal year 1997 -98 fiscal year, 28 employees received
promotions and six filled positions were reclassified to higher
salary grades. Using those as a basis to estimate the cost of the
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draft promotion and reclassification policy changes, Personnel
identified that if each of the 28 employees receiving promotions
and reclassifications had received one step for each salary
grade involved in the promotion or reclassification, the additional
annual cost would have been about $56,000.
Funding
Promotions and reclassification are funded from existing
departmental budgets. Funding for the policy change would
come from the already approved departmental budgets for
1998 -99. No additional funds are requested.
Effective Date
The proposed effective date of the policy changes is
September 1, 1998. This is the originally proposed effective
date. Staff gave consideration to recommending the promotion
policy change be retroactive to an earlier effective date. This
has not been recommended because of the difficulty in
identifying an equitable way to determine an earlier effective
date and in retroactively assessing internal salary comparisons
and other factors that go into setting salaries.
Recommendation: The Manager recommends the Board approve the attached -
revisions to the Orange County Personnel Ordinance policy for
promotions (Article 5, Section 10.0) and for reclassification
(Article 5, Section 9.0) effective September 1, 1998.
F:\pers\comp\promote.doc
October 14,1 998
5
Attachment 1
Draft Personnel Ordinance Revision
Article 5.0, "Pay Plan"
10.0 Salary of Promoted Employee
10.1 An employee promoted to a position in a class at a higher salary grade
having -a xzxgxxcx�aTic'axgv
shall receives at least a one -step salary increase or
an increase to the minimum step of the new salary range, whichever is higher.
10.2 A promoted employee may receive a salary increase of up to one step for
each salary grade involved in the promotion, if he or she has the
commensurate qualifications in terms of related education and work
experience for the proposed salary in the new salary range. Such a
promotional increase requires the advance approval of the department
head and the Personnel Director whose review includes consideration of
any internal equity issue that may be raised by the promotional increase.
10.3 In exceptional cases, upon on the recommendation of the-department head
and Personnel Director, the County Manager may approve a promotional
- increase greater than that provided in Item 10.2 above. Such cases may
include those in which the promoted employee has commensurate
qualifications above those for the salary in the new range yielded by Item
10.2 or in situations of severe labor market demands. Refease
may be- awai-led. However, in no case shall the salary exceed the maximum
established for the range.
9.0 Salary of Reclassified Employee
An employee whose position is reclassified to a class at hang a higher salary grade
pay range ske &- receives the same increase as that provided for a promoted
employee in Item 10.0
of t4e now &alaff , a or
An employee whose position is reclassified to a class
having a lower pay range shall not receive a reduction in salary as a result of the
reclassification.
F: \pers \prom.doc
August 14, 1998
Promotion/Reclassifcation Pay Handiing
Area Government Employers
' Promotion
Employer � Minimum�� Maximum � Discretion for other amounts ReCIaSSIfICat1o11
Minimum of new salary Same as policy
Alamance County range or 5/o, whichever Same as minimum. � No
is higher. on promotion.
Minimum of�new salary May set salary at other Same as policy
Carrboro range or 5/o, whichever Igvels within salary range. Yes on promotion.
is higher.
Minimum of new salary ff warranted by employee's Same as policy
Cary range or 5/o, whichever qualifications and experience, Yes
is higher. may be higher if within range! on promotion.
Minimutn of new salary range
dr at least 5%. Additional 5% May set salary at other Minimum of new range or at
Chapel Hill increase after cbmpletion of levels within range. Yes least 5%. Additional increase
6 month probationary period may be granted.
following promotion.
2.5%or the minimum of the 2.5%or the minimum 2.5% or step 1 of the new
Chatham County new salary range (hiring rate), hiring rate of the new salary No salary range, which ever is
whichever is higher. range, whichever is higher. higher(Step 1 is 2.5/o above
hiring rate).
10%over the minimum Yes, up to 5% increase or to pay band
Durham (City) 5% salary increase salary of the new job's maximum ,
� ' specified. minimum.
' ! pay band. ',
Department may set salary D
Durham County 5% salary increase. at any rate above the 5% Yes Same as policy --I
on promotion. y
minimum. n
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10/14/98
' Promotion/Reclassifcation Pay Handling
Area Government Employers
Promotion
Employer Minimum Maximum � Discretion for other amounts ReClasSiflCatlon
� , �
2.5% increase, or an increase Same as policy
Person County to step one of the new pay Same as minimum. NO on promotion.
range, whichever is higher.
5% increase for one pay grade For Public Safety, salary I
promotion. 10% increase for a rate upon promotion to entry Yes Same as policy
Raleigh promotion of two pay arades or level positions is based on ' on promotion.
more except for Public Safety. related experience/qualifications.
(a) Up to 5%for each grade Increase to the minimum
promoted, or(b) Salary may be Yes,with State Personnel of the new range or up to
Minimum of new salary set as for New Hires (increase Director prior approval. 5%for each grade provided
State Government range or 5%, whichever greater than 5% per grade but Ex: severe labor market by the reclassification with
is higher. consistent with employee's conditions, qualifications, etc. consideration given to
� training/experience.) relevant qualifications.
(a) Up to 5%for each grade Yes, with prior approval of
Minimum of the new promoted, or(b) More than Office of State Personnel. Same as policy
UNC-CH salary range or 5%, 5%for each grade when Ex: severe labor market on promotion.
whichever is higher. employee qualifies for the conditions, qualifications, etc.
� higher salary.
Increase to minimum � Dept. head may Yes Salary increase to at least
Wake County of new pay band. determine salary. minimum of new salary grade.
Minimum of new salary range With Manager's approval, Minimum of new salary
Orange County or one step(5%), whichever 2 steps (about 10%) may No range or one step (5%),
is higher. be awarded. whichever is higher.
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