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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 4 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 _ , � � m z � N Klperslcomp�promsur4xls � � 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. � K:\perslcomp\promsur4.xls � ia�aisa � •