Division of Human Resources Update for The HR Committee of the Board of Trustees September 16, 2011

RIF Plan and Outcomes Employee Impact 160 total positions affected through budget reduction 60 SPA 22 EPA Non-Faculty 78 Faculty 50 total employees affected 26 SPA 4 EPA Non-Faculty 19 Adjunct Faculty 1 Tenure or Tenure-Track Faculty

RIF Plan and Outcomes Employee Transition Services Transition Coordinators Single point of contact in DHR for affected employees Monitor, track and verify key eligibility criteria for severance pay, health insurance, and priority re-employment Assist with re-deployment efforts Employee Assistance Program (EAP) onsite Job Search and Resume Writing Seminar with Career Services Financial management seminar with the NC State Employee’s Credit Union Resource guides for employees and managers Ongoing consultation with managers and employees from DHR 3

RIF Plan and Outcomes Employee Transition Services (con’t) Benefits Received by Affected Employees: Severance Pay (SPA only) Health Insurance paid for by the University for up to 12 months from layoff date (SPA only) Priority Re-employment for up to 24 months from layoff date (SPA only) Access to resources offered through the Office of State Personnel’s Career Transition Center 4

RIF Plan and Outcomes Organizational Impact Total Budgeted Salary Reduction: $2,535,445 (does not include fringe calculation) SPA: $1,148,461 EPA Non-Faculty: $293,239 Adjunct Faculty: $1,093,745 Tenure and Tenure Track Faculty: No immediate salary impact due to terminal appointment notification requirements Total Cost Associated With Severance (SPA only): $589,855.38 Total Estimated Severance Payout: $318,020.97 Total Health Insurance Premium for 12 months from Layoff Date: $128,096.60 Total Vacation Leave Payout: $103,941.59 Total Bonus Leave Payout: $32,336.51 Total Pro-Rated Longevity Payout: $6,035.92 Total Compensatory Time Payout: $1,423.79 5

RIF Plan and Outcomes Organizational Impact (con’t) Current Trends Clear, compliant process mitigated grievances (only 3 filed in relation to RIF) Redeployment efforts resulted in retaining 7 employees in other areas of the University Increased need for consultation on organizational and position design: 11 departments have contacted DHR for assistance with reorganization Potentially 88 positions will need to be reviewed 6

RIF Plan and Outcomes Business Process Enhancements March 2009: Revised Reduction in Force policy Established compliant process in partnership with campus leadership for identifying positions to eliminate Clearly defined process steps for developing RIF plans Defined the cohort at the department level Required Adverse Impact Analysis Established role of Transition Coordinators within DHR Enhanced efficiency in processing RIF actions through the Banner HR/Payroll System Ensure accuracy and timeliness of severance, pro-rated longevity, and leave payouts Interface with E-benefits relative to compliance with new health insurance premiums for 80/20 single coverage Tracking and monitoring of continued eligibility requirements for benefits such as severance, health insurance and RIF priority rights

RIF Plan and Outcomes Layoff Analysis Worksheets Business Process Enhancements (con’t) Layoff Analysis Worksheets Validation of compliance with State and University RIF policies Adverse Impact Analysis Redeployment and reemployment assistance for affected employees (8 total) 7 within A&T 1 re-employed at UNC-G Employee and Manager Resource Guides Key policy information, websites, and contact information Scripts and template letters RIF Information Sheets for each affected employee Severance totals and schedule 8

RIF Plan and Outcomes Business Process Enhancements (con’t) Joint Budget Advisory Committee (BAC) / Cabinet review Ongoing process to review and approve all salary and position actions Salary and Compensation Management Quarterly reporting to UNC General Administration on all salary increases Board of Governors pre-approval of all proposed increases of 10% or greater