1. Alternative Pay Program Guidelines for Managers July 2012

2. WHY IS THIS IMPORTANT Employees Asked for Managers to Improve in : communicating organizational goals clearly and specifically clearly communicating performance expectations recognizing and rewarding outstanding achievement creating clear project and individual work plans and timetables for completion

3. HOW WE GOT HERE 2000/2001 - Small committee worked on pay for performance for entire County January 2003 – EMAP implemented January 2005 – SMAP implemented December 2005 – XMAP implemented January 2006 forward – program and department specific pay plans developed as requested

4. CORE PRINCIPLES Link County Mission, Vision, and Goals to individual performance expectations and rewards Increase communication –performance expectations –feedback Allow career/salary growth without re-classification or movement to another position Pay increases tied to performance and job growth Departmental/Manager pay authority HR Review

5. Current State of Alternative Pay Programs (APPs) First one established in 1992 17 Current Alternate Pay Programs 800 participants – 22% of County (29% non-PS) Overall satisfaction –85% thought job expectations were clear –>60% thought they were better off under APPs –Employees receive increases on time Still some work to do on timeliness of performance appraisals

6. Creating the Environment – Setting Expectations 6 Individual Organization Goals aligned with strategic organizational goals Shared Direction Customer Service, Ethics, Stewardship, Diversity Authentic Values Performance & Development Partnership Productive Relationships Structure, tools, and resources for knowledge gain Liberating Processes Development Plans Outcome based Learning

7. PERFORMANCE CYCLE 7 Plan Manager and employee agree on plan to Include: Link Org Goals and Employee Key Work Expectations Identify Indicators of Success Development Goals Develop Manager and employee discuss Feedback on KWE’s Feedback on development goals Coaching Appraise Manager and employee work together to: Assess performance results Discuss development achieved Complete performance review

8. PARTNERSHIP 8 Manager Employee Communicate expectations and set goals with employee Participate in discussing, developing & agreeing to performance goals Frequently interact with employees on their progress Proactively report on progress Change the performance plan based on changed priorities Change development plan if priorities change Evaluate achievements and identify areas in which employee improved or needs to improve Review performance and development plans Conduct a performance assessment Actively participate in the assessment

9. Conducting the Performance Appraisal Use On-Base – accessible through email or PRISM Get input from employee and peers/customers –Ask the employees to suggest 3-5 clients/colleagues that can provide useful feedback. –Contact each person and let them know that the conversation is confidential. –Suggested topics: –Top 3 strengths? –1-2 areas for development? –Any advice? Summarize the data into common themes - track how many times mentioned. –If mentioned by only one person, treat as an “outlier” comment and don’t include it in the feedback.

10. Conducting the Performance Appraisal (continued) Meet with employee to review performance independently of salary discussion Corporate Leadership Council Presentation –Driving Employee Engagement Through Performance Reviews (Part 2)Driving Employee Engagement Through Performance Reviews (Part 2) Follow your department’s process for completing form, but must be signed by employee and supervisor

11. Grade/Step Plan Employees move through salary range with step increases based on merit, reclassifications, promotions Broadband Pay-for-Performance Plan Employees move through salary range based on performance and acquiring and using knowledge and skills Steps 2-5 4.1% Steps 6-10 3.3% Steps 11-19 2.3% Step Increases Reclassification 5.0% Promotion 10% Accelerated Step variable Transfer variable Internal Movement The funds available for salary increases are approximately equal for employees in grade/step and pay for performance Average Step ~2.75% Percent of total salary budget ~0.85% Total Broadband Budget 3.6% Job Growth Performance Increase

12. DETERMINING SALARY INCREASES Evaluate performance –Rating of 3 to 4.4 = meets expectations –4.5 or greater = role model Determine performance increase –Guidelines to be determined –Pro-rate for partial year Determine if additional pay adjustment needed –Range penetration –Comparison against plan criteria (if applicable) –Major changes in job duties –Internal equity Entire department must stay within budget – 3.6% Fill out worksheet and forward to department director Share with employee after review and approval by HRD

13. USING THE WORKSHEET One worksheet sent to department for each division or major work unit –Vacancy dollars added to Department Directors worksheet for lump sums Use the columns highlighted in yellow Fill in performance rating (number) Enter recommended % performance increase and/or lump sum Worksheet features –Calculates new rate –Won’t allow salary over maximum –Won’t allow exceeding budget Forward to Department Director who sends to HR HR uploads data into master spreadsheet for department and sends back to Director

14. DEMONSTRATION WORKSHEET

15. Communicating the Salary Increase –Communicate in meeting, email, or memo –Tell employee: % increase New hourly rate –Include key factors that influenced decision –Remind employee of budget, salary guidelines, and where they are in range –Increase will be in pay on 9/14

16. Schedule for Plan with September 1 Anniversary Date ActivityDue Date Notices sent from On-Base to employees and supervisors to begin performance appraisal July 6 - 9 Supervisor and Employee WorkshopsJuly 9 - 20 Emails sent to managers/supervisors with salary guidelines July 30 Conduct appraisals and finish evaluationsJuly/August Pay Recommendations to Department DirectorsAugust 17 Department Directors Forward Pay Recommendations to HR August 21 Review and Approval by HRAugust 24 Communication to staffAugust 27 – 31 Money in paySept 14

17. NEXT STEPS Check PRISM Manager Self Service to make sure performance ratings are correctPRISM Manager Self Service Use new on-line Performance Planning, Development & Appraisal Form to: –Establish 3 -5 key performance expectations for FY13 –List success indicators –Complete professional development plan Complete by end of September

18. Questions? Laura Chalkley ext. 3505 lchalkley@arlingtonva.us Jeanne Wardlaw ext. 3449 jwardl@arlingtonva.us AC Source Performance and Pay Page FY 2013 Pay Plans and Alternative Pay Program Guidelines