Maximizing the Flexibility of the State

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• Maximizing the Flexibility of the States
  Compensation System

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or . . .Linking Employee Compensation with
Strategic Business Needs
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How the States Pay Systems Can Help . . .

• Recruiting
• Retention
• Employee Development
• General Suggestions

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Evolution of the States Compensation System

• System Prior to 1996
• Purpose of the System Reforms
• Characteristics of the Current System
• Simplicity
• Flexibility
• Tailored to an agencys unique needs

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Current Opportunities for Salary Advancement

• Performance
• Additional Skills
• Additional Duties/Responsibilities
• Retention

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Statewide Use ofPay Flexibilities
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Performance Increases
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Performance Increases
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Additional Duties Increases
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Additional Skills Increases
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Retention Increases
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How the States Pay Systems Can Help . . .

• Recruiting
• Retention
• Employee Development

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How the States Pay Systems Can Help . . .
Recruiting

• Establishing Competitive Hiring Rates
• Designing Incentives for Employees
• Demonstrating Career Potential to Applicants

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How the States Pay Systems Can Help . . .
Retention

• Retention pay increases
• Responding to market changes
• Designing career growth and development
  opportunities
• Encouraging managers to recognize non-monetary
  factors that influence retention

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How the States Pay Systems Can Help . . .
Employee Development

• Additional skills pay increases
• Designing incentives for employee development
• Flexibility for agency reward systems

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Non-traditional Compensation Approaches

• Employee bonuses
• Exceptional Performance
• Exceptional Customer Service
• Cost savings
• Incentive pay pilot programs
• Premium pay options
• Shift differential
• On-call pay

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Structured Career Path Development

• Areas conducive to developing career paths
• Potential benefits
• Planning to address needs of large occupational
  groups
• Proactive career management
• Requirements to implement
• Pitfalls to avoid

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General Suggestions

• Think strategically about your use of pay
  programs
• Identify areas of greatest need in the
  organization and start there
• Enhance the strategic partnership between Budget,
  HR, and senior management