PERFORMANCE MANAGEMENT & COMPENSATION SYSTEM

1. PERFORMANCE MANAGEMENT & COMPENSATION SYSTEM Delta CollegeMCCHRA Fall 2008

2. Agenda • History of the system • Position Information Questionnaire (PIQ) • PIQ Review Process • Performance Appraisals • Equity Reports • Salary Placement • Linking performance to annual pay increases • Training • Future enhancements • Questions?

3. History of the System • 1997 - ECAPS requested that the College review the Administrative/Professional (A/P) compensation system and address employee concerns. • 1998 -A/P staff focus groups were conducted to identify those concerns. • Later in 1998, Support staff requested and were invited to be a part of the new system • 2000-2001 Implementation of new system Delta College responded to employees request to develop a system to tie compensation to performance: • This system facilitates a common approach to performance feedback and development planning among employees. • Employee/Supervisor communication and feedback provide the foundation of the system. • Documents and rewards good performance. • Allows employees to move through the pay ranges based upon performance. • Provides consistent documentation • Ensures equity among department and demographic groups of employees.

4. What is a PIQ? A Position Information Questionnaire (PIQ) is the questionnaire used by the College to place positions for Administrative Professional and Support Staff within the pay grade system. The College uses a quantitative method of job placement in which factors are utilized to assess duties and responsibilities comprising a job and to subsequently establish the job's rank/pay range. When the Performance Management & Compensation System was established by Delta in consultation with PriceWaterhouseCoopers it was determined that the 8 factors below, encompassing knowledge, skills and competencies, were important and would be used to evaluate the value of positions.1) Knowledge and skills2) Minimum years of position-related experience3) Impact of actions4) Work environment a:-control over tasks b:-pressure and intensity of assignments c:-position currency requirements5) Innovation/creativity/problem solving6) Communication (speaking, writing, listening, reading, negotiation, & interpretation)7) Teamwork a:-participation b:-team leadership8) Leadership and vision

5. PIQ Review Process As part of the appraisal process the mid and year end forms contain a check box asking employees and supervisors to review the employee’s One Page Job Description to ensure that it represents the responsibilities expected of his/her position for the upcoming performance year. If there are significant changes to be made, they are asked to contact the Human Resources Office for guidance on revision procedures. The chart below indicates the steps once a PIQ is updated. Supervisors forwards PIQ to HR for initial review and point/pay grade calculation. In order to maintain integrity of the system, HR is responsible for reviewing the position ratings and grade level against other positions in the College to look for equity and recommends changes to the supervisor if needed. PIQ created or revised for new or existing position (Supervisors responsibility) HR communicates initial points/pay grade to supervisor (if there is a proposed pay grade change HR relates financial impact) PIQs with significant changes resulting in pay grade change require Executive Council approval prior to PIQ Team Review PIQs with minor changes where there are no change in points or pay grade the PIQ is not sent to reviewers. After Executive Approval, HR forwards PIQ to Primary and Secondary Reviewers Reason for EC approval: to alert for budget planning, to raise awareness so there are not duplication of efforts across college. Each Executive Staff member has access to the factors information which can be referenced prior to signing a PIQ with proposed changes to look for equity across their department as well as the entire college. If Primary and Secondary Reviewers are in agreement, HR communicates final pay grade determination to Executive and Supervisor If Primary and Secondary Reviewers do not agree, PIQ is sent to entire PIQ Review Team If Primary and Secondary Reviewers final pay grade determination is not what was proposed by Executive and Supervisor, the decision may be appealed Appeal Team is appointed by the President. Supervisor presents reasons for the appeal Final authority to establish placement of a position resides with the President

6. The Performance Appraisal Two times per year (mid-year and year-end), supervisors are required to give formal feedback by completing the appraisal document.

7. Appraisal Factors Employees are rated on the following Appraisal Factors: • Application of Knowledge • Effectiveness of Communication • Responsibility and Dependability • Quality and Productivity • Problem Solving • Flexibility/Adaptability • Professional Development • Supervision (if applicable) • Budget Management (if applicable)

8. Performance Appraisal Factor Ratings: The ratings are specific to each factor. However, in general they indicate the following:5 – Mentor level performance 4 –Consistently exceeding expectations3 – Solid performance, regularly meets high expectations 2 – Does not meet expectations, needs improvement (Performance Improvement Plan* (PIP) required) 1 – Very serious performance concerns (Performance Improvement Plan* (PIP) required) In this system, expectations of a "3" are very high and representative of a strong, solid performer, definitely NOT a mediocre performer. * All Performance Improvement Plans must be reviewed by the Director of Human Resources before given to an employee. The Director ensures that the PIP addresses job related issues and is done so with fairness and equity.

9. Who sees the appraisal document? • Immediate supervisor - The immediate supervisor completes the appraisals for all of his/her employees. After completing the forms, the supervisor reviews the overall results to examine if they appear to be fairly appraised. • Next-level supervisor - The immediate supervisor submits the appraisals to his/her supervisor for review. If necessary, the supervisors discuss any specific issues or concerns. The immediate supervisor may also wish to discuss any developmental plans he/she will be establishing with employees. • Executive staff supervisor - In the rare instance where the immediate supervisor and next level supervisor do not agree on any part of the appraisal, the executive staff supervisor will be consulted for resolution. Executive staff supervisors may also choose to review all appraisals prior to submission to Human Resources. Executive staff supervisors will also review the ratings summary provided by Human Resources. • Human Resources - Human Resources compiles a summary of ratings and provides this summary to each Executive staff supervisor for employees in their area of responsibility. This summary is used to look at fairness in the ratings across the units of the College to establish that there are no apparent biases on the basis of gender, ethnicity, age, etc. Human Resources also reviews the appraisals to see that no inadvertent, illegal, or inappropriate language or examples are written in the appraisals. • President - The President is provided with a summary of ratings for all areas of the College. Review by the second level supervisor, Executive staff members and by Human Resources is intended to assure that appraisals are objective, fair and consistent within departments, across areas of the college, and across the college as a whole.

10. Equity Reports

11. Salary Placement

12. Linking the appraisal results to annual increases: To determine an employee’s appraisal average add all of the ratings and divide by the number of factors. The increase is based on the corresponding paygrade quintile as indicated in this chart:

13. Calculating an employee's annual increase amount: Use the percentage increase, as approved by the Board of Trustees, and apply it to the quintile, within the paygrade, which corresponds to the employee's appraisal rating. (ie. for the 7/1/08 increase the figures in the 2007-08 paygrade quintile chart were used). Example: Employee A is in a pay grade 5 position, with an annual salary of $37,000; the Board approves a 2.25% increase, the employee's performance ratings average 3.1. (The increase will be based on the top of the 3rd quintile of pay grade 5). Employee A's increase would be 2.25% x $48,609 (top of 3rd quintile) = $1,094. The new salary amount would be $37,000 + $1,094 = $38,094.

15. Training • All new employees and existing employees who become new supervisors meet with HR for individual training regarding the system. • HR offers general overview training and opportunities for Q&A sessions though the COS multiple times each year • All information related to the system is accessible to employees on the HR website

16. Future Enhancements • We have requested to have the appraisal moved to an online form • Streamlines process and simplifies by moving electronically and allows the supervisor to review the action plans electronically when completing the next year’s mid and year-end reviews • Allows for process to collaborate with COS to provide professional development sessions that directly align with the needs of employees • Provides the college with measurable data related to development objectives and action plans • Offers future ability to use the data for related services and to meet needs of employees and college administration for continuous quality improvement • Improved information related to staff management • Savings on printing and paper costs aligns with college philosophy of working “green”