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 FLA’ ’s Review of State Personnel s Review of State Personnel To Discuss FLA Practices and Career Banding: Practices and Career Banding: Introduction of Fox Lawson & Associates, Introduction of Fox Lawson & Associates, LLC LLC Study Purpose and Methodology Study Purpose and Methodology Findings and Recommendations Findings and Recommendations Answer Questions Answer Questions 2 h o m e b a c k n e x t
About Fox Lawson & Associates About Fox Lawson & Associates Bought Practice From Ernst & Young Bought Practice From Ernst & Young Classification, Compensation and Human Classification, Compensation and Human Resource Management Specialists Resource Management Specialists Nationwide Practice Public Sector-Devoted Nationwide Practice Public Sector-Devoted 25+ Years of Experience 25+ Years of Experience Strategically Focused Strategically Focused Practical and Realistic Solutions Practical and Realistic Solutions 3 h o m e b a c k n e x t
Principal Investigators Principal Investigators James C. Fox, Ph.D. Bruce G. Lawson, CCP James C. Fox, Ph.D. Bruce G. Lawson, CCP Former City Manger, County Former City Manger, County Former National Public Former National Public Assessor/Tax Collector, and Assessor/Tax Collector, and Sector Practice Leader for Sector Practice Leader for County Administrative Officer County Administrative Officer Ernst & Young Ernst & Young 25 Years Compensation and 25 Years Compensation and 25+ Years Compensation and 25+ Years Compensation and HR Consulting Experience HR Consulting Experience HR Consulting Experience HR Consulting Experience Wrote and teaches the Wrote and teaches the Teaches job evaluation for Teaches job evaluation for IPMA-HR Broadbanding course IPMA-HR Broadbanding course WorldatWork™ ™ & IPMA-HR & IPMA-HR WorldatWork performance based pay performance based pay 300+ studies completed 300+ studies completed successfully successfully 300+ studies completed 300+ studies completed successfully successfully 4 h o m e b a c k n e x t
Study Purpose Study Purpose Conduct of an independent performance Conduct of an independent performance review of the NC personnel system to review of the NC personnel system to include: include: Effectiveness of human resource Effectiveness of human resource management; management; Career banding implementation & Career banding implementation & alternatives; alternatives; Recommended changes. Recommended changes. 5 h o m e b a c k n e x t
Study Methodology Study Methodology e l b a l i a v A a t l e a NC Policies n D n o & s r e s & Data e P i c s i e l o c p i t c a r p US/Military States Focus Groups Private Findings Findings Sector & Interviews Best Practices Legislators/Staff Ag/Univ Execs Of Other HR Execs Governments Employees Union Reps 6 h o m e b a c k n e x t
State Personnel Org State Personnel Org Situation Finding/Recommendation Situation Finding/Recommendation OSP authority: OSP authority: Personnel decentralization requires Personnel decentralization requires trained local HR, trained local HR, system system to audit local to audit local Policy & rule making; Policy & rule making; decisions & appropriate MIS info. decisions & appropriate MIS info. Training; Training; OSP should have stronger right to OSP should have stronger right to Info/data Info/data rescind delegation and enhanced audit rescind delegation and enhanced audit maintenance; maintenance; function. function. Personnel action Personnel action OSP should have dotted-line OSP should have dotted-line approval; approval; relationship with agency/university HR relationship with agency/university HR Delegation to agencies; Delegation to agencies; directors. directors. Non-compliance Non-compliance State/OSP should coordinate State/OSP should coordinate corrective actions. corrective actions. centralized: centralized: Training programs; Training programs; Coordinated recruitment; Coordinated recruitment; Benefits administration. Benefits administration. 7 h o m e b a c k n e x t 5
Chapter 126 Chapter 126 Situation Finding/Recommendation Situation Finding/Recommendation Proposed changes to Proposed changes to The proposed changes are thoughtful The proposed changes are thoughtful Chapter 126 to improve Chapter 126 to improve and represent compromises designed to and represent compromises designed to operations of the state operations of the state enhance administration of Chapter 126. enhance administration of Chapter 126. personnel system have personnel system have The proposals have not been acted The proposals have not been acted been reviewed/approved been reviewed/approved upon by the NC General Assembly. upon by the NC General Assembly. by OSP, SEANC, local by OSP, SEANC, local Changes are consistent with our Changes are consistent with our government and government and specific findings and recommendations specific findings and recommendations agencies. agencies. Recommended : Recommended : Adoption of the changes as proposed. Adoption of the changes as proposed. 8 h o m e b a c k n e x t 5
Employee Cost Forecasting Employee Cost Forecasting Situation Finding/Recommendation Situation Finding/Recommendation Restrictions on lapsed Restrictions on lapsed Cost forecasting should be direct Cost forecasting should be direct funds. funds. with decision to lead or lag the market. with decision to lead or lag the market. In-range, range/other In-range, range/other The General Assembly should receive The General Assembly should receive adjustments. adjustments. recommendation of labor market recommendation of labor market movement/performance-based movement/performance-based Manipulated Manipulated increases from OSP. increases from OSP. classification – – lack of lack of classification realistic market comps. OSP sources may include: realistic market comps. OSP sources may include: Private org projections Private org projections Year-to-year change in Year-to-year change in benchmarked classes benchmarked classes Projections from USDL Projections from USDL Employment Cost Index Employment Cost Index 9 h o m e b a c k n e x t 5
Employee Cost Forecasting Employee Cost Forecasting Situation Finding/Recommendation Situation Finding/Recommendation Estimated that NC Estimated that NC Increases should apply to midpoints Increases should apply to midpoints pays 7% below market. pays 7% below market. of current grades or middle salary for of current grades or middle salary for journey level for career-banded journey level for career-banded Career banding-- Career banding-- positions including any lapsed funds. positions including any lapsed funds. clarified pay/market clarified pay/market relationship and budget relationship and budget Agency/university leadership should Agency/university leadership should impact. impact. 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; Guidelines; Polices & procedures; Polices & procedures; Restrictions & rules. Restrictions & rules. 10 h o m e b a c k n e x t 5
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