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HomeMy WebLinkAboutR92-156 1993 compensation and classification plan4 Commissioner (2 41- s moved adoption of the following Resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO RESOLUTION NO. 92 — ADOPTING THE 1993 COMPENSATION AND CLASSIFICATION PLAN WHEREAS, the Board of County Commissioners of the County of Eagle, State of Colorado (hereinafter "the Board "), wishes to maintain a fair, equitable system of personnel administration which facilitates objectives such as: 1. To provide a rational criterion for control of pay levels by making it possible to equate whole classes of positions with common salary ranges; 2. To provide competitive pay levels to attract and retain quality employees. 3. To define in objective terms the content of jobs, and use such informa- tion in evaluating the performance of employees; 4. To furnish job information for orientation and other in— service training; 5. To provide a foundation for common understanding between supervisor and employee as to the job and pay. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO: THAT, the job analysis, classification and compensation plan for Eagle County ( "the Plan "), attached hereto and incorporated herein by this reference, be and is hereby adopted, to be effective January 3, 1993. THAT, the funding of the compensation plan is a function of the budgeting process and is subject to annual appropriation. THAT, the Plan, and the adoption thereof, does not and shall not be deemed to create an employment contract between the Board and any of its employees, officers, department heads, supervisors, boards or commissions. 92 C M MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held the day.j�LNovember, 1992. iG COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its BOARD j 3 OF COUNTY COMMISSIONERS L '� I wr ai By: A) irk to the Board of Richard L. Gustafson, Chairman County Commissioners Dona d H. Welch, Commissioner and Chairman Pro Tem George Gates, Commissioner Commissioner I,cjl j Q1, seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: Commissioner Donald H. Welch Commissioner George A. Gates Commissioner Richard L. Gustafsoni -b�` This Resolution passed by 9 vote of the Board of County Commissioners of the County of Eagle, State of Colorado. sub 82 -159 —2— � Z CLASSIFICATION AND COMPENSATION STUDY FOR EAGLE COUNTY, COLORADO FINAL REPORT NOVEMBER 1992 5Aavm, Nevms AND ASSOCIATES, INC. Local Government Management Consultants 3040 Holcomb Bridge Road Suite B1 Norcross, Georgia 30071 (404) 449 -4656 FAX (404) 416 -0848 Janice R. Nevins, SPHR Project Director Offices in Atlanta, Oakland & Los Angeles EAGLE COUNTY, COLORADO FINAL REPORT CLASSIFICATION AND COMPENSATION STUDY TABLE OF CONTENTS Section Topic Page I. INTRODUCTION /EXECUTIVE SUMMARY A. Background Information 1 B. Project Scope and Objectives 3 C. Executive Summary of Recommendations 4 Exhibit I - Comparative Analysis Graph STUDY METHODOLOGY AND RESULTS A. Project Planning and Initiation 10 B. Classification Study 11 C. Compensation and Benefits Survey 15 Exhibit II - Survey Participants Exhibit III - Salary Survey Data Summary D. Development of Classification and Compensation Plan 17 Exhibit IV - Proposed Pay Structure Exhibit V - Class Allocation Chart III. IMPLEMENTATION RECOMMENDATIONS A. Implementation and Costs 21 B. Implementation Actions 26 IV. MAINTENANCE OF COMPENSATION PLAN A. Keys to Successful Compensation Program Management 28 B. Pay Adjustments and the Economy 29 C. Re- surveys 30 D. Cost of Living as a Factor in Salary Setting 31 t C, EAGLE COUNTY, COLORADO FINAL REPORT CLASSIFICATION AND COMPENSATION STUDY TABLE OF APPENDICES Page A. JOB ANALYSIS A -1 Position Description Questionnaire 34 A -2 Class Specifications (separate cover) B. FACTOR EVALUATION SYSTEM (MES) B -1 SES Job Evaluation Handbook (separate cover) B -2 Job Evaluation Point Totals (separate confidential cover) C. BENEFITS AND POLICIES SURVEY RESULTS 53 D. SAMPLE FINAL COMMUNICATION LETTER TO EMPLOYEES 61 E. RECOMMENDED SAMPLE POLICY 62 F. SAMPLE RESOLUTION 75 0 I. INTRODUCTION /EXECUTIVE SUMMARY C G I. INTRODUCTION /EXECUTIVE SUMMARY This report documents the methodology utilized and the results produced by Slavin, Nevins & Associates, Inc. (SNA) during a project to develop a classification and compensation plan for all regular and appointed employees of Eagle County. Our work on this project began on March 31, 1992, and will be concluded upon presentation of the results documented in this final report. A. BACKGROUND INFORMATION Eagle County is located in Colorado and provides a full range of services to its citizens. There are nine elected officials as follows: Assessor, Clerk and Recorder, Coroner, County Commissioners (3), Sheriff, Surveyor, and Treasurer /Public Trustee. Additionally, the Board of County Commissioners (BOCC) has designated department heads who serve at the pleasure of the County Manager. The Board of County Commissioners (BOCC) serve in the capacity of policy - makers. All powers of the County, as a legal entity, are exercised by the Board of County Commissioners and not by its individual members. The County employs a Director of Human Resources and two staff members in this department. The department is responsible for administration of the classification and compensation plan; recruitment; benefits administration, administration of personnel policies and procedures; training and development; employee relations; risk management; workers' compensation; unemployment compensation claims; employee life insurance; long term disability; and health /dental insurance. Eagle County 1 LUM V N -m % a° D ID W •N U C !! 7 O ID U Q1 v W O U Exhibit I 9 rn N Q H U Q co U N Q O I- N Lo N W 0 Q W i� N 0 N Q � —r a Q N M N (spuosnogi) S318V-1dS N N Q � Q W Y I I N Q N O m cD d' N O 0o cD � N O 00 cD V N M M M M M N N N N N r r .— r- (spuosnogi) S318V-1dS Cl/ 2) Competitive Position SNA established a competitive pay structure for Eagle County equal to 100% of the survey market's average actual salaries and salary range midpoints. Rates of pay were established that are competitive for other comparable Colorado counties, local cities and towns, and several local public and private employers. (Exhibits II and III.) 3) New Pay Plans SNA developed two compensation plans for the County. (Exhibit IV.) There are no steps in either plan: Minimum, midpoint and maximum salaries were established for each range in both plans. Compensation philosophy indicates that the minimum of the range is the typical hiring rate for employees who meet the minimum qualifications of the job and midpoint signifies the "market rate" where the employee should be fully - functioning and meeting all standards. The maximum rate indicates the maximum salary value of the job to the County. SNA follows this philosophy and, in fact, build our pay plans using midpoints (market rates.) Eagle County supports this position and has established merit pay policies which reinforce it. Plan I covers most regular positions and consists of ten (10) grades. Each pay grade provides a salary range width of 35% in all grades. Plan II covers executive, appointed positions in the County and has five (5) grades. Each pay grade provides a salary range width of 45 %. The plans are established with each grade targeted at a competitive level equal to the average of the labor market as represented by the survey results. SNA developed these pay plans using July, 1992, salary survey data. Eagle County 5 4) Pay Implementation Slavin, Nevins & Associates, Inc. presented several proposals to manage- ment regarding implementation of the new plans. In addition to the proposal set out in this report, SNA consultants, management, and the Study Advisory Committee explored several other alternative methods of implementation. We were particularly interested in recognizing employees' relative positions within current ranges. Therefore, we believe the proposal submitted herein is most feasible and appropriate for the County. Our recommendations take into account employees' current salaries and position in current grades, and places employees in appropriate salary grades and positions in the proposed structures. a. Employees Below Minimum All employees whose current salaries are below the minimum rates for the new grades were brought at least to the minimums of the new grades in the new Compensation Plan. Approximately one -half of the County's current employees' salaries are lower than the new minimum rates of pay. b. Employees Over Maximum Although a few employees' current salaries will be close to the new maximums, only two are slightly over the maximums in the new pay sm C. Changes for Individual Employees within Ranges All employees were placed within the appropriate pay ranges for their job classifications. Furthermore, this proposal will ensure that employees retain their relative position -in- range; i.e., current salary calculated as a percent of range. All employees' current position -in- ranges were calculated and then employees were placed in the new Eagle County 6 salary ranges in relatively the same positions with a 40% reduction. Employees whose salaries are currently at or above the new range midpoints will receive no increases in this implementation. (The costs were originally calculated to keep all employees at exactly the same position -in -range as current, but the costs were prohibitive.) This implementation will result in employees receiving widely varying amounts of increases. These variances are caused by the differences in the current salary ranges versus the new salary ranges; i.e., some classifications were further off - market than others. Approximately 50 employees (currently at or above the new midpoints) will receive no increases at all. Most employees will realize greater opportunity for future merit increases because most of the range maximums are higher in the new plans. 5) Cost of Implementation The County staff and SNA consultants have estimated the annualized cost of implementation for this proposal at approximately $450,000, or 7% of payroll. The County should also anticipate an increased cost in those benefits which are directly linked to payroll. 6) Classification Plans All jobs were evaluated using the SNA Evaluation System, which encom- passes eight factors to analyze all positions. To ensure our dual goals of internal equity and external competitiveness of pay, it was important to merge the classification plan with the new compensation plan. Therefore, all tpositions were placed in the classification and compensation plans based upon job evaluation and external market data. (Exhibit V.) Eagle County 7 7) Benefits Analysis Generally, Eagle County's benefits are very good and very competitive in the market. A detailed analysis of benefits and associated policies is provided in Appendix C of this report for your further review and informa- tion. 8) FLSA Exemption Status The Consultants also reviewed each position in regard to the Fair Labor Standards Act (FLSA) exemption status, which governs overtime pay. A few classifications' FLSA exemption status were changed as a result of this review. All the new class specifications reflect the appropriate FLSA exempt /non- exempt status. 9) Re- Surveys and /or Market Adjustments The Eagle County program should provide for a re- survey of prevailing rates periodically, and other means of checking the adequacy of the pay plan in the intervening years. Once every two to three years should be an appropriate frequency for re- surveys. We recommend that the Board of County Commissioners (BOCC) adopt a policy of considering a pay schedule adjustment annually or bi- annually based on the trend in prevailing rates. This recommendation may be established as indicated by the annual Bureau of Labor Standards (BLS) regional index, the Colorado Municipal League Survey, or other special area survey. Additionally, consideration should be given to adjusting all employees' pay by an appropriate percentage when an across - the -board structure adjustment is made. 10) Merit Pay Eagle County is committed to true pay- for - performance merit pay and already has in place policies and procedures to support this philosophy. As we described in paragraph 3) above, the new pay plans have been Eagle County 8 < C structured to support merit pay. Generally, while employees are working their way through the ranges from minimum to midpoint, they should be at least meeting performance standards in order to receive a merit increase. However, after they reach midpoint (market rate), employees should be performing above - standard in order to receive merit increases. The proposed 1993 Eagle County merit increase guide supports this approach. SNA applauds the County's commitment to this important goal. We believe the plan proposed as a result of this study will support and enhance the County's merit pay philosophy. The following sections of this report document the methodologies utilized and the results achieved during this project. Eagle County 9 0 c" 11. STUDY METHODOLOGY AND RESULTS II. STUDY METHODOLOGY AND RESULTS In this section, the methodology utilized and the results produced are discussed in regard to the comprehensive Classification and Compensation Study. These major segments are discussed under the headings of Project Planning and Initiation, Classification Study, Compensation and Benefits Survey, and Develop- ment of Classification and Compensation Plan. A. PROJECT PLANNING AND INITIATION The initial project activities concentrated on introducing the project to the County Manager, BOCC, elected and appointed department heads, and the Study Advisory Committee; discovering pertinent issues; and planning for the remaining project activities. Group and individual introductory meetings were conducted with elected officials, department heads and the Study Advisory Committee to explain the purpose and course of events involved in this study. The purposes of the introductory activities were to obtain management participation and support for the project; to provide all parties with an open channel of communication to express their opinions, problems, and concerns; and to ensure that such issues were adequately considered in the review and /or development of a new classification and compensation plan. At these meetings we discussed our methodology and obtained significant input from management in regard to overall classification and compensation issues. General concerns uncovered in the initial meetings with Eagle County officials, the Study Advisory Committee, and department heads included: • the overall pay posture of the jurisdiction; • high turnover in certain classifications; Eagle County 10 � 1 • update of class specifications to better reflect duties and to identify essential functions to comply with the Americans with Disabilities Act (ADA); • consistency in minimum qualifications for class specifications; • analysis of benefits and associated policies for comparison with the marketplace; and, • recognition of employees' position -in -grade in the new pay plan. The introductory and planning activities resulted in a high level of participation and cooperation that assured accomplishment of the project's objectives. We believe the study recommendations documented in this report fully demonstrate this result. B. CLASSIFICATION STUDY In order to ensure appropriate classification of all employees, we analyzed every position in the study. We strongly recommend as much employee participation in the information gathering stage as possible in order to ensure validity and enhance the credibility and acceptability of the results of the study. 1) Completion of Position Description Questionnaires All employees were given Position Description Questionnaires (PDQ). This instrument is designed to collect detailed data on all aspects of individual jobs. Most employees were very conscientious in completing this questionnaire. Supervisors then reviewed the PDQ's, answered specific questions, and made comments where appropriate, before returning them to SNA Consultants. 2) Employee Interviews Employees in all classifications were interviewed by SNA consultants in order to gain further information regarding their positions. All single- Eagle County 11 4 t incumbent employees were interviewed and a representative number of employees in all other classifications were interviewed in groups of two to eight people (according to the total number of employees in each classification.) These interviews not only supplemented the data gained from the PDQ's, but also allowed employees the opportunity to individually ask questions or make comments about their jobs and /or the study. 3) Development of Class Specifications The Consultants reviewed every PDQ as well as our interview notes, and class specifications were developed for approximately 90 classes. The class specifications were developed based upon information obtained in the completed PDQs, input from supervisors and management, and our interviews. All classifications were analyzed in regard to Fair Labor Standards Act (FLSA) exemption status and identification of essential functions in compliance with the Americans with Disabilities Act (ADA). These draft class specifications were then distributed to all employees and management for their review and comment. SNA made appropriate revisions resulting from these reviews and redistributed copies of the revised class specifications to all employees and management. Some employees want more individualized and detailed descriptions, such as job descriptions. Class specifications are developed as a tool to administer a classification system and, therefore, are broad, generic statements of the essential functions and type of work performed by the class, as well as minimum qualifications, knowledge, skills and abilities needed to perform the work. Our job analyses resulted in developing new class descriptions, defining newly created positions, and assigning some new titles which better represent the work performed in these classes. Eagle County 12 U G, G 4) Evaluation and Ranking of Jobs In order to properly establish the internal relationships of positions, a point factor job evaluation system was used. Slavin, Nevins & Associates, Inc. used the SNA Evaluation System (SES) to effectively evaluate all positions, considering the Eagle County organizational structure. This point factor system evaluates eight (8) factors in each classification. Job evaluation results in assigning a total -point ranking to each position to establish internal relationships of positions. The actual job evaluation process involves determining which degree of each of the job evaluation factors applies to each job. The pre - calculated point values for the assigned factor degrees are then added to obtain a total numerical value for each job. Once evaluated, the jobs are ranked by relative value on the basis of their assigned job evaluation point totals. This process is concerned exclusively with the job itself and not the individuals) currently performing the job. In conducting the evaluations, SNA was responsible for reaching evaluation results which were: • based on a thorough understanding of the job; • supported by the PDQs and class specifications; and, • based on job content, not incumbents. This initial evaluation process produced a set of factor evaluations for each job. A second step to the evaluation effort consisted of a factor -by- factor review of these evaluations. For example, a comparison was made of all jobs receiving the same degree evaluation for each factor. This review process identified the need for a number of changes in the initial evalua- tions and appropriate modifications were made. At the conclusion of this review, a third step in the evaluation process was conducted. This step Eagle County 13 r involved a review of the total point evaluation and ranking of jobs in each job group and department. This review concentrated on the identification of evaluation problems based on analysis of the total job as it compared with other jobs in the job group and /or department. Furthermore, SNA worked with a subcommittee of the Study Advisory Committee for a significant amount of time to train them on the job evaluation system and to review SNA's evaluation of all classifications. As a result of this final review, further modifications to the evaluations were made to the point that the project consulting team was satisfied that the evaluation results met the groundrules listed above. Then, the classification allocation list was reviewed by the Study Advisory Committee and all department heads for their input and comments. Their concerns were evaluated by the Study Advisory Committee and SNA consultants, and some revisions were made as a result of these reviews. As a result of the job evaluation and classification methodology, positions within Eagle County were: • objectively evaluated on the basis of characteristics or factors common to all the jobs; • empirically ranked in order of value to Eagle County as determined on the basis of the SES job evaluation plan; and, • assigned to appropriate grades on the basis of objective evaluation results, Committee and management input, and market competitiveness. Appropriate internal hierarchal relationships of positions in Eagle County were determined using the SES point factor system relationships, along with input from County management. We are confident that the SES point factor Eagle County 14 { evaluation system functioned as intended and produced objective, equitable, and reliable relative internal rankings of jobs. In our opinion, the methodology and results described in this section accomplished the objectives of the project in this regard. The point factor evaluation system should be used to grade new or revised positions in the future. The subcommittee was thoroughly trained in the system and should meet periodically to evaluate new or revised positions in the future. (The SES Point Factor Evaluation System which was utilized is included under separate cover as Appendix B.) 5) Appeals Process All employees and their supervisors recently received class specifications and notification of class allocations for their final review. If any employees disagree with SNA's title or class specification, they were given the opportunity to appeal in writing and receive an answer in writing from SNA consultants. The consultants conducted a thorough review and reevalua- tion of employee concerns, as well as consulted with the Study Advisory Committee and management. Some further changes were made as a result of this appeal process. C. COMPENSATION AND BENEFITS SURVEY A custom - designed survey of pay ranges and actual salaries for thirty -nine (39) benchmark positions was conducted in order to develop pay data for use in "pricing" the revised classification structure. Our survey instrument is very comprehensive and utilizes job summaries, not just titles. Seventeen (17) organizations participated in the salary survey, including three counties, five cities and towns, the state, the school district and college, the sanitation district, and five local public and private Eagle County employers. (Exhibit II.) Eagle County 15 1) Survey Participants The decision regarding which organizations to survey is a very important one. To identify the appropriate survey organizations, SNA places most importance on those organizations with which the County directly competes for employees. It is also important to survey other jurisdictions which are comparable to Eagle County in locale, size, composition, and /or services offered. Therefore, we consulted with the County Manager, Study Advisory Committee, department heads, and human resource department staff regarding appropriate survey participants. We then sent the list of proposed survey participants to the Study Advisory Committee for final review and approval. We obtained excellent participation in the study. The participants represent a cross - section of local Colorado cities and counties and local employers in Eagle County. (Exhibit II.) Data on both actual average salaries and salary ranges was collected. Data was further verified through the analysis of several published surveys. We believe this combination reflects an appropriate compensation level for Eagle County employees today. 2) Salary Findings Our analysis indicates that Eagle County's current pay plan is generally below the market based on the 39 benchmark jobs surveyed. However, this difference varies depending on the job classification. (Exhibits I and III.) Sufficient information was obtained from the survey sources to determine competitive pay levels within the markets in which Eagle County competes for the various positions. We are satisfied that the information collected provides reliable data for development of a recommended compensation plan for Eagle County. Eagle County 16 Exhibit II EAGLE COUNTY GOVERNMENT SURVEY PARTICIPANTS ORGANIZATION OPERATING BUDGET OR REVENUE POPULATION SERVED NUMBER OF EMPLOYEES (FTE) Eagle School District $16.3MM 20,418 400 Town of Avon $6.4MM 1978 129 Summit County Govt. $13.6MM 13,885 225 Pitkin County Govt. $22.5MM 13,000 94 City of Aspen $24.OMM 8,000 est. 181.5 LaPlata County Govt. $17.5MM 32,000 196 Town of Vail $22.OMM 3,000 187 Colorado Mountain College Not Disclosed n/a 290 FT 500 PT State of Colorado $4.8MM 3,321,000 27,000 Town of Frisco $4.4MM 1,600 32 Town of Eagle $2.1 MM 1,500 12 Upper Eagle Valley Sanitation District $15.9MM 10,000 60 Vail Associates, Inc. $105MM n/a 3,460 Valley View Hospital Not Disclosed n/a 200 Vail Valley Medical Not Disclosed n/a 275 Justin & Haynes & Co. Not Disclosed n/a 5 Thimgan & Assoc., Inc. Not Disclosed n/a 6 C-1 Survey Participants Page 2 SNA also supplemented /verified our survey with appropriate data from the following published surveys: 1992 CML Benchmark Employee Compensation Report, Colorado Municipal League, 1660 Lincoln Street, Suite 2100, Denver, Colorado 80264 -2101. 1992 CML Management Compensation Report, Colorado Municipal League, 1660 Lincoln Street, Suite 2100, Denver, Colorado 80264 -2101. Compensation 92: An Annual Report on Local Government Executive Salaries and Fringe Benefits, International City Management Association, 777 N. Capitol Street, N.E., Suite 500, Washington, D.C. 20002. NWCCOG Resort Areas Cost of Living Study, Northwest Colorado Council of Governments, P. O. Box 739, Frisco, Colorado 80443, published 7/18/91. 1990 Colorado Western Slope Compensation, 1991 Colorado Turnover, 1991 Denver Management Compensation, 1991 Colorado Turnover, 1991 Colorado Health and Welfare Plans, Mountain States Employers Council, Inc., 1790 Logan Street, P. O. Box 539, Denver, Colorado 80201 -0539. Municipal Yearbook 1992, International City /County Management Association, 777 N. Capitol Street, N.E., Suite 500, Washington, D.C. 20002. 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FOP, VI V1W In ~ MO m10 V to VW m OA 0" WNP4VWW + m V V V V W 10 V N N P NA V N VV II N U, 11 11 11 n fl tl A O 3 17 I II a 7 A • II II 0 it =1 ~ 0.00010.0.000 OO10•oOO� 0OO- MO OOO•o•0OOZ 0.00OO.00 0o OP w w w w m O4 .0 O4AV0 -+V� O.OVI 4.ONwo,: +NN -W ON N4I".)a, O • • • 11 XX.\ °X. \°XXe °X aeX� XX \?f:XXXXXX \ °. T °. \ °XX \XXXXXXXXXX It 11 I III jtgtgx3 zm m r 3 m m m0 A .'O < N O A A z 3 m z A A K CL V r N 3) Benefits Findings Generally, the County's benefits are very good and competitive. Some exceptional points include Eagle's employees contribute very low amounts to health premiums. Eagle participates in Social Security, while many Colorado jurisdictions do not (or pay the Medicare portion only). For those jurisdictions that do not participate in Social Security, employees realize greater take -home pay (for equal salaries) and the employers generally contribute larger amounts to their retirement plans. Eagle County participates in the CCOERA and has one of the more generous plans in regard to matching employee contributions and the vesting period. Eagle County employees accrue 8 days of sick leave per year, while the average number of sick days earned for survey respondents is 11.7. The County might want to consider increasing the number of sick days earned per year. On another topic, some of the resort communities (such as Vail) provide recreation passes to nearby facilities with little or no cost to the employees. Eagle County employees have expressed an interest in receiving certain recreational passes. Eagle County officials may wish to further examine the detailed benefits survey results found in Appendix C. D. - DEVELOPMENT OF CLASSIFICATION AND COMPENSATION PLAN The development of the recommended classification and compensation plan involved using the compensation survey analyses and the SES Point Factor Evaluation System. Eagle County 17 plan: Minimum, midpoint and maximum salaries were established for each range in both plans. Compensation philosophy indicates that the minimum of the range is the typical hiring rate for employees who meet the minimum qualifications of the job and midpoint signifies the "market rate" where the employee should be fully - functioning and meeting all standards. The maximum rates indicate the maximum salary value of the jobs to the County. SNA follows this philosophy and, in fact, build our pay plans using midpoints (market rates.) Eagle County supports this position and has established merit pay policies which reinforce it. Plan I covers most regular positions and consists of ten (10) grades. Each pay grade provides a salary range width of 35% in all grades. The salary range width is the percentage interval of the pay grade from minimum to maximum. Range width is determined by calculating the difference between the maximum and the minimum and dividing by the minimum. Grades, beginning at 21 through 30, rise eleven and one -half percent (11.5 %). The rise is the percentage increase of one grade over another at midpoint. The percentage rise results in a reliable reflection of the market for the jobs assigned to each grade and reflects the distinctions between the complexity, scope, and knowledge required of positions. Plan II generally covers executive, appointed positions in the County and has five (5) grades. Each pay grade provides a salary range width of 45 %. Within this structure, grades 50 and 51 rise at 10% and grades 52 through 42 rise at 12 %. The plans are established with each grade targeted at a competitive level equal to the average of the labor market as represented by the survey Eagle County 19 i a results. SNA developed these pay plans using July, 1992, salary survey data. The recommended compensation plans are presented in Exhibit IV. The jobs assigned to each pay grade within the classification and compensation plans are presented in Exhibit V. The proposed job assignments to the pay levels appear to represent logical relative assignments which were made on the basis of the SES Point Factor System, the salary survey results, and input from management and the Study Committee. The proposed classification and compensation plan results in compensation levels which are consistent with the results of the compensation survey, as well as accepted compensation practices. Eagle County 20 Exhibit IV (a) EAGLE COUNTY GOVERNMENT Proposed Pay Structure, I November 1992 The proposed pay structure is built on an index midpoint salary in the first grade (21) of $15889 with salary range widths of 35% for each grade. Within the structure there are ten (10) grades from 21 to 30 with 11.5% between grades. GRADE MINIMUM MIDPOINT MAXIMUM 21 13523 15889 18256 22 1 15077 17716 20354 23 16812 19754 22696 24 18745 22025 25306 25 20900 24558 28215 26 23304 27382 31460 27 I 25984 30531 I 35078 28 28972 34042 39112 29 32304 37957 43610 30 36019 42322 48626 C w EAGLE COUNTY GOVERNMENT Pay Plan 1 Classification Allocation Chart November 9, 1992 Exhibit V (a) 21 $13,540.80 - N Van Driver $18,262.40 22 $15,080.00 - N Administrative Technician I $20,363.20 N Library Aide 23 $16,828.20 - N Administrative Technician II $22,713.60 N Appraiser Trainee N Fiscal Technician I N Home Health Nurse Aide N Maintenance Worker 1 24 $18,761.60 - N Administrative Technician III $25,313.60 N Animal Control Officer N Computer Operator N Computer Specialist N Engineering Technician I N Equipment Operator I N Fiscal Technician II N Library Branch Coordinator N Maintenance Worker II N Mechanic 1 25 $20,904.00 - N Administrative Technician IV $28,225.60 N Appraiser I N Engineering Technician II N Equipment Operator II N Fair & Rodeo Coordinator N Fiscal Technician III N Maintenance Worker III N Mechanic II N Personal Property Appraiser N Public Service Coordinator N Victims Assistance Officer 1 01 Eagle County Government Classification Allocation Chart November 9, 1992 Page 2 r 26 $23,316.80 - E Administrative Supervisor $31,470.40 N Airport Maintenance /Safety Officer N Appraiser II N Building Inspector I N Cartographer N Civil Officer N Community Service Coordinator N Crew Leader N Employment Specialist N Environmental Health Trainee E Library Branch Manager N Mechanic III N Mechanical Technician N Paralegal N Planning Technician 27 $26,000.00 - N Accountant $35,089.60 E Building & Grounds Supervisor N Building Inspector II E Community Affairs Officer E Department Deputy - Clerk & Recorder E Department Deputy - Treasurer N Deputy Sheriff N Detention Officer N District Road Supervisor N Environmental Health Specialist N Landfill Supervisor E Librarian - Adult /Reference Services E Librarian - Child /Reference Services N Planner I N Programmer N Road Construction Supervisor N Surveyor N Weed & Pest Coordinator Eagle County Classification November 9, Page 3 Government Allocation Chart 1992 28 $28,974.40 - E Animal Control Supervisor $39,124.80 N Appraiser III N Building Inspector III E Community Health Nurse E Fleet Supervisor N Investigator E Planner II E Programmer Analyst E Sr. Engineering Technician 29 $32,323.20 - E Administrative Analyst $43,617.60 E Building & Grounds Manager E Chief Appraiser E Chief Building Official E Chief Environmental Health Officer E Controller E Data Processing Supervisor N Detective N Detention Sergeant N Patrol Sergeant E Planning Manager E Road & Bridge Assistant Director E Senior Health Nurse 30 $36,025.60 - E Airport Manager $48,630.40 E Assistant County Attorney E Captain /Director of Detention E Captain /Director of Operations E Project Engineer Note: Salaries on this list have been slightly modified to the next higher annualized salaries which are divisible by 2080 hours worked in a year. b Exhibit V (b) EAGLE COUNTY GOVERNMENT Pay Plan 2 Classification Allocation Chart November 9, 1992 50 $36,753.60 - E Community Development Director $53,268.80 E County Engineer E Deputy County Attorney E Human Resources Director E Library Director E Nursing Director E Road & Bridge Director E Social Services Director 51 $40,414.40 - E Finance Director $58,593.60 52 $45,260.80 - E Assistant County Manager $65,624.00 53 $50,689.60 - E County Attorney $73,507.20 54 $56,784.00 - E County Manager $82,326.40 Note: Salaries on this list have been slightly modified to the next higher annualized salaries which are divisible by 2080 hours worked in a year. III. IMPLEMENTATION RECOMMENDATIONS C III. IMPLEMENTATION RECOMMENDATIONS In this section we present classification and compensation plan implementation recommendations for consideration by Eagle County. The associated implemen- tation costs are also presented to assist in making the final implementation decisions for the recommended plan. Implementation of the new classification and compensation plans will require consideration and adoption of the final position allocations and salary schedule developed during this effort. In addition, the Eagle County BOCC must approve the extent of implementation which is financially feasible for the fiscal year. A. IMPLEMENTATION AND COSTS The most difficult aspect of transition to a new classification and compensation plan involves the determination and implementation of appropriate rates of pay for each employee. The actions undertaken during the development of the new plan focused exclusively on the jobs themselves and not the employees filling the jobs. Implementation requires a movement away from considerauon m the relative worth of jobs on a broad basis, to consideration of the cost and effect of alternative means of determining the pay rate of each employee within the new plan. The determination of the pay rate of each employee within the new plan at initial implementation requires that assumptions or decisions be made in each of the following areas: • The level of market competitiveness feasible for Eagle County and, therefore, the level at which pay rates are established in relation to the appropriate external labor markets. Eagle County 21 0" C • The method to be used for determining an equitable pay rate for each employee by job classification, within the new pay plans at the time of initial implementation of the new structure. The recommendations presented in this report are limited to those that were deemed potentially feasible for implementation by the County in the opinion of SNA Consultants after significant review and discussion with management and the 1) Level of Market Competitiveness The consultants and County management identified an objective of establishing rates of pay that are competitive for governments in Colorado which are similar in size and scope, and the competitive local market. Eagle County's current pay structure is below market, however, this difference varies depending on the job classification. Jobs in higher ranges become increasingly further under market. We believe the compensation schedules recommended and presented in Exhibit IV of this report provide 100% market competitiveness for the County. We recommend that this level of market competitiveness and the associated compensation plans resulting therefrom be considered for implementation by Eagle County. 2) Method of Determining Employee Pay Rates Any method of determining employee rates of pay by the consultants under the new program must be based on several key assumptions. These as- sumptions and the specific individual rates which result for each employee should be carefully reviewed by appropriate staff prior to effecting any changes on the employee payroll records. Eagle County 22 The pay assumptions used in the calculation of individual employee rates of pay, are as follows: • All employees are placed in appropriate job classifications based upon the internal ranking of jobs and the salary survey analysis. • All employees assigned to job classifications are performing at a satisfactory level, and should receive the pay rates associated with the job in the new compensation schedule. • The employee rates of pay presently in effect are valid indicators of the relative distinctions among employees performing the same job, for placement within the recommended pay ranges for the jobs. Calculated costs are based on actual salary data given to the consultants in August, 1992, and have been recently updated by County staff. Promotions, raises, or recent vacancies are not represented in this analyses, therefore these costs are estimates. Upon implementation of the new Compensation Plan, the Eagle County finance and/or human resource departments must apply any changes in current salary data. Several alternative procedures to determine individual employee rates of pay were analyzed and considered. In addition to the proposal set out in this report, SNA Consultants, management, and the Study Advisory Com- mittee explored several other alternative methods of implementation. We were particularly interested in recognizing employees' relative positions within current ranges. Therefore, we believe the proposal submitted herein is most feasible and appropriate for the County. Our recommendation takes into account employees' current salaries and position in current grades, and places employees in appropriate salary grades and positions in the proposed structures. Eagle' County 23 i � 1 a. Employees Below Minimum All employees whose current salaries are below the minimum rates for the new grades were brought at least to the minimums of the new grades in the new Compensation Plan. Approximately one -half of the County's current employees' salaries are lower than the new minimum rate of pay. b. Employees Over Maximum Although a few employees' current salaries will be close to the new maximums, only two are slightly over the maximums in the new pay plan. C. Changes for Individual Employees within Ranges All employees were placed within the appropriate pay ranges for their job classifications. Furthermore, this proposal will ensure that employees retain their relative position -in- range; i.e., current salary calculated as a percent of range. All employees' current position -in- range were calculated and then employees were placed in the new salary ranges in relatively the same position with a 40% reduction. Employees whose salaries are currently at or above the new range midpoints will receive no increases in this implementation. d. Other Adjustments Employees who were hired after April 1, 1992, salaries will be increased to the new grade minimums or they will retain their current pay rates, whichever is higher. The costs were originally calculated to keep all employees at exactly the same position -in -range as current, but the costs were prohibitive. Eagle County 24 This implementation will result in employees receiving widely varying amounts of increases. These variances are caused by the differences in the current salary ranges versus the new salary ranges; i.e., some classifications were further off - market than others. Approximately 50 employees will receive no increases at all. Most employees will realize a greater opportunity for future increases because most of the range maximums are higher in the new plans. 3) Implementation Costs The cost of implementing the new compensation program was calculated based on the following additional assumptions: • The job classifications, evaluation results, and recommended classification plan presented in this report will be adopted without change. • Employee pay records furnished SNA represent a reasonable basis for the calculation of implementation costs. • SNA consultants did not attempt to make individual pay adjustments based on such factors as performance. The approximate annualized costs for this proposal is $450,000, or 7% of total payroll. In addition to these base salary increase costs, the County can also expect an additional cost increase in certain benefits which are directly linked to total payroll. 4) Merit Increases Eagle County is committed to true pay- for - performance merit pay and already has in place policies and procedures to support this philosophy. As we described earlier in this report, the new pay plans have been structured to support merit pay. Generally, while employees are working their way through the ranges from minimum to midpoint, they should be at least meeting performance standards in order to receive a merit increase. Eagle County 25 However, after they reach midpoint (market rate), employees should be performing above standards in order to receive merit increases. The proposed 1993 Eagle County merit increase guide supports this approach. SNA applauds the County's commitment to this important goal. We believe the plan proposed as a result of this study will support and enhance the County's merit pay philosophy. A four percent (4 %) merit pool is planned for 1993 in Eagle County. Employees' current review dates will be retained. The following criteria will be used in determining merit increases for 1993: Below Midpoint Meets Expectations 2-4% Exceeds Most Expectations 4-6% Above Midpoint Ic 2 -6% *Employees at Maximum may qualify for a lump sum bonus of 2 - 6% by exceeding most expectations. B. IMPLEMENTATION ACTIONS The implementation of the new compensation plan will impose certain require- ments on management, department heads, human resources and payroll staff. The primary requirements will be the verification of records, final determination of employee pay rates, implementation of changes to the payroll records as of a designated pay period, and communication of changes to employees. We recommend that the following actions be taken prior to final implementation of the new compensation program. • The results and costs of the recommended program should be reviewed and a determination made as to the level of implementation which is financially feasible. Once this is accomplished, the procedures to be Eagle County 26 followed in the determination of employee pay rates should be decided and the rates recomputed appropriately. The job classifications and rates of pay to be assigned to employees should be carefully reviewed by appropriate human resources and payroll staff. The changes made to employee rates of pay should be communicated to employees prior to or concurrent with any pay adjustments being reflected in their pay checks. This communication should stress that individual placement in the new pay structure does not reflect any relationship to individual performance. These adjustments are made solely to place positions in appropriate internal relationships and a competitive posture in the marketplace, as well as recognize employees' current pay and relative position -in- grade. Additionally, employees will receive varying amounts of increases. Employees at or above midpoint of their ranges receive no pay adjustments. We do not recommend that any employee receive a pay cut. The County Manager and /or Director of Human Resources should assume primary responsibility for presenting the necessary communication and orientation program to employees. Also, the SNA Project Director will present the final results at employee meetings during the consultants' final trip. Eagle County 27 IV. MAINTENANCE OF COMPENSATION PLAN IN FUTURE YEARS { IV. MAINTENANCE OF COMPENSATION PLAN IN FUTURE YEARS Maintenance of compensation programs is one of the most critical elements of sound base pay administration. Unless programs are properly maintained, errors occur and inequities begin to develop in pay relationships. These inequities will eventually undermine program effectiveness. The maintenance of compensation programs is inherently difficult, due to: • continual changes in the content of the various jobs in an organiza- tion; • continual changes in the going market rates for jobs; • frequent changes in organizational structure and staffing levels; and, • the ever - evolving and expanding regulatory framework governing pay programs. A. KEYS TO SUCCESSFUL COMPENSATION PROGRAM MAINTENANCE There are five keys to the proper maintenance of compensation programs: 1) Clearly stated objectives, policies, and procedures are established and communicated. 2) Proper controls are operative to ensure that policies and procedures are being consistently applied. 3) There is adequate support for the compensation, function itself - including provision of sufficient staff and other resources, as well as the top management support necessary to ensure that the pay program is administered with fairness and integrity. 4) The compensation staff properly performs administrative activities. 5) The compensation program is routinely audited for effectiveness and efficiency. Eagle County 28 After an employer has established one or more pay structures (hierarchies of pay grades and ranges), a number of other policy issues must be addressed. Some of the most important of these are the following. • What should the starting rates be for new hires? • How should a salary increase be determined for an employee who is being promoted from one job to another? • What influence, if any, should increases in going market rates, and increases in the cost of living, have on the determination of pay increases for individuals? Each organization must develop its own answers to these questions and establish policies and procedures to facilitate consistent practices throughout the organiza- tion. B. PAY ADJUSTMENTS AND THE ECONOMY During the late 1970's and early 1980's, with high increases in the cost -of- living and prevailing rates of pay, most employers found it necessary to make across - the -board increases in pay nearly every year. Subsequently, with inflation under control and high unemployment, employers were able to hold the line in wage negotiations, and some were even able to negotiate "give- backs" at the bargaining table. In any case, Eagle's programs for compensation plan maintenance must be geared to current trends in the economy. Regardless of the frequency of pay adjustments dictated by the economy, the jurisdiction's programs should provide for a re- survey of prevailing rates periodically, and other means of checking the adequacy of the pay plan in the intervening years. Eagle County 29 C. RE- SURVEYS In the year a re- survey is conducted, the results should be applied to determine the grading adjustments needed for individual survey jobs and the across -the- board adjustment required by the overall increase in prevailing rates, if any. For this methodology to be valid, the re -survey should involve, insofar as possible, the same participants and the same benchmark jobs. In times of a fairly stable economy, once every three years should be an appropriate frequency for re- surveys, provided that other means are used in intervening years to check the pay plan for adequacy. Between re- surveys, there are several good sources of data that may be used to determine the trends in prevailing rates. The Bureau of Labor Statistics conducts its Area Wage Surveys annually in most metropolitan areas, and its nation -wide survey of Professional, Administrative, Technical, and Clerical (PATC) salaries is also conducted annually. In addition to the BLS data, there is data available from many other published reports of surveys conducted by associations. These include the American Compensation Association, state Association of Counties, the Colorado Municipal League, consultants, and others that are often specialized in certain occupations. In the years intervening between re- surveys, a percentage adjustment for the pay schedule can be determined by an analysis of the available data on salary and wage trends. However, there are some precautions that should be observed. Re -Survey Precautions The County should not plan to adjust pay rates in individual occupations based on specialized survey data contained in a variety of survey reports. It is highly unlikely that they will reflect trends and pay relationships among the various occupations in the jurisdictions. Eagle County 30 C_ 1. It would not be appropriate to use the nation -wide data in the PATC survey to determine a salary adjustment for clerical and blue - collar jobs. The trends reported on a basis of national averages might be quite different from those in your local labor market. The best way to determine an intervening -year adjustment is to use only available data from your own labor market (e.g., the BLS Area Wage Survey) or any specialized survey that summarizes pay data for your market.) The changes in prevailing rates from preceding years will vary among the occupations covered by the local labor market surveys. If the variations are small, as is usually the case, it is best to determine the overall average year -to -year changes and use that average as the basis for adjusting your pay schedule. D. COST OF LIVING AS A FACTOR IN SALARY SETTING Changes in the "cost -of- living ", insofar as they may be indicated by the CPI, should not be considered as the major factor in salary setting. In support of this opinion, the following experts are quoted from a paper entitled "The Influence of the Cost of Living Upon Pay Rates," by Lawrence D. Robinson, an internationally - recognized wage and salary administration consultant: "Wages cannot keep up with prices in an inflationary situation. In fact, when wages are chasing prices, it becomes an exercise in futility, since more inflation and economic instability result from the practice." "The force of 'supply and demand' strongly influences wages since, for example, scarce skills which are in demand require high wages to attract and retain a competent work force." "...prices rise and fall more sharply than do wages. This is because the forces that drive prices are quite different from those that drive wages." Eagle County 31 C/, "The concept of cost -of- living pay increases was mainly fostered by labor unions. The fruit of collective bargaining (on this basis) over an extended period of time are the main reason for New York City's (near) demise." Further, there are many problems with the use of consumer price data as a salary- setting factor. Most of such data are indices of change in prices. The so- called "COLA" provisions in labor contracts ensure a wage increase from year -to -year in accordance with the increase in the CPI. This implies that wages were "right" with the real cost of living in the base year (first year the provision applied), which is difficult to determine. Then, there is the problem of the indices themselves. The BLS has never called the Consumer Price Index a "cost -of- living" index. In recent years, economists have been very critical of the CPI as a true indicator of the changes in "cost -of- living" or even changes in prices for a large segment of the population. Finally, there is the problem of finding an applicable index for the immediate setting. The CPI is prepared only for major metropolitan areas and nation -wide (the average change in all of those areas together). The nation -wide index is a "deadly average" since everyone knows -- and the metropolitan area CPI's themselves show -- that increases in prices vary substantially across the country. If there is a CPI for your immediate area (either the BLS CPI or a price index produced by some economic research organization), it may be used as one guide in determining interim -year pay schedule adjustments. We recommend that Eagle County adopt a policy of considering a pay schedule (market) adjustment annually or bi- annually based on the trend in prevailing rates, as indicated by the BLS area wage survey or a Colorado wage survey. Eagle County 32 Generally, all employees' pay should be adjusted by an appropriate percentage when an across - the -board structure adjustment is made. The BLS furnishes excellent data indicating the average annual pay increases for merit pay and market adjustments. Eagle County 33 APPENDIX A-1 W A N A G EM E N T C, C O N S U L T A N T S APPENDIX A -1 Slavin;�Nevuhs AND ASSOCIATES, INC. POSITION DESCRIPTION QUESTIONNAIRE The purpose of this form is to aid you in describing your present position in terms of the duties, responsibilities and qualifications required. This form will not be used to evaluate your work performance or your qualifications. The Position Description Questionnaire will help determine the appropriate classification for your position. Jobs with similar duties and responsibilities requiring similar knowledge, skills and abilities will be grouped together into classes. All classes will be evaluated and assigned to skill levels in accordance with a job evaluation plan. The job evaluation plan will provide a factual, objective basis for uniform and equitable pay relationships. It will also provide basic information for the selection and promotion of employees. Therefore, it is essential that detailed and exact information be obtained about the duties and responsibilities of each position. t t t t t t f t t t t t t t t Job Classification and Compensation Survey Identifying Information Please Print: NAME OF ORGANIZATION Date EMPLOYEE NAME POSITION TITLE DEPARTMENT SUPERVISOR'S NAME SUPERVISOR'S TITLE EMPLOYEE'S LENGTH OF SERVICE IN THIS POSITION Y M EMPLOYEE'S LENGTH OF SERVICE IN THE ORGANIZATION Y M- 34 3150 Holcomb Bridge Road / Suite 205 / Norcross, Georgia 30071 / (404) 449 -4656 / Fax: (404) 416 -0848 i If it is necessary to describe incidental or occasional duties, then explain how often they occur, for example: once a month..., in emergencies..., and so forth. In your own words, please briefly describe the mission or purpose of your job. Ask yourself: "Why does this job exist ?" "What about this job makes it essential to the organization ?" Please follow the directions below to describe your major duties. a. List the various tasks that you do on your job. When you finish, NUMBER EACH TASK. The task which you consider most important should be Number 1, followed by lower pr ority work, until the least important task is described. Describe the tasks specifically so that they will be clear to someone who is not familiar with your work. Give examples where appropriate. b. Estimate the proportion of your time that you spend on each task. Although this may be difficult, you are better able to do it than anyone else. State the approximate number of hours or percentage of time you spend each week on each task. C. If you perform duties of a supervisory nature, describe those duties specifically and in detail. FOR THIS SECTION ONLY - If desired, you may attach a copy of your present class specification or job description and make revisions on that document. MAJOR DUTIES Order of Time or Importance Work Performed Percentage 36 k ' Z. KNOWLEDGE REQUIRED BY THE POSITION a. Describe the minimum number of years that is necessary for entering your classification by checking one of the following: Years of Education Less than high school diploma High school diploma or equivalent One year vocational/technical school degree in addition to high school Two year college or technical school degree Three year college or technical school degree Four year college degree Four year college degree plus one year required intemship /residency Master's degree Law degree Doctorate degree Doctorate degree plus post doctoral study Other (describe) If a degree is necessary, please specify what field (or fields), If any, is required, (e.g., engineering, business, etc.). b. List the basic knowledge, skills and abilities that are required to perform the tasks listed in Item 1. (For example: knowledge of accounting, etc.) 38 r_ 3. SUPERVISORY CONTROLS a. List the numbers of the tasks (from Item 1) that you do repeatedly without receiving new instructions from your supervisor. What is the nature of the standing or continuing instructions you have been given regarding these tasks? (check one) The instructions are detailed, specific and cover all aspects of the work. The instructions are somewhat general; many aspects of the work are covered specifically, but I must also use some judgment. The instructions are very general; I must use much judgment. Other (describe fully) b. List the numbers of the tasks (from Item 1) for which you do not have standing or continuing instructions. What is the nature of the instructions your supervisor gives you when assigning new or one -time tasks? (check one) Detailed, specific and covering all important aspects of the work. Somewhat general, covering many aspects of the work. Direction provided in terms of broadly defined missions or functions. Other (describe fully) C. When does your supervisor give you instructions or directions for doing the tasks you listed in "b" above? (check one) My supervisor gives me instructions before I begin the task. My supervisor gives me instructions both before I begin and as I proceed with the task. My supervisor requires me to decide for myself how to do my work and I ask questions only if a problem arises on which I need assistance. Other (describe fully) 40 C/ s 5. COMPLEXITY a. Describe what makes your work routine, complicated, unusual or difficult to perform. What obstacles are there in the work itself that make it difficult to accomplish? 6. SCOPE AND EFFECT a. What is the purpose of your assignment? b. What is the effect of the work you produce within and outside your department? C. What impact does your work have beyond your immediate department? d. How does it affect outside organizations? e. What is the effect of errors you may make within your department? Within other departments? f. Does your work affect the reliability, accuracy or dependability of other work processes? If so, how? 42 9. PHYSICAL DEMANDS AND ENVIRONMENTAL CONDITIONS Check each of the following which are required by your job. It is important that you realize that some activities you perform are not required. As you look at the items below, ask yourself: "Do I do this ?" and then ask: "is it required that I do it in order to accomplish the mission of my job ?" Some of the items ask for specific information about the activity. Please provide this information so that the activity can be properly evaluated. Percent of time spent standing is %. Percent of time spent walking is %. Percent of time spent sitting is %. Exerts up to 10 pounds of force occasionally or a negligible amount of force frequently to lift, carry, push, pull or otherwise move objects. Exerts up to 20 pounds of force occasionally, or up to 10 pounds of force frequently, or a negligible amount of force constantly to move objects. Exerts 20 to 50 pounds of force occasionally, or 10 to 25 pounds of force frequently, or greater than negligible up to 10 pounds of force constantly to move objects. Exerts 50 to 100 pounds of force occasionally, or 25 to 50 pounds of force frequently, or 10 to 20 pounds of force constantly to move objects. Exerts in excess of 100 pounds of force occasionally, or in excess of 50 pounds of force frequently, or in excess of 20 pounds of force constantly to move objects. Ascends or descends ladders, stairs, scaffolding, ramps, poles, and the like, using feet and legs or hands and arms. If this is required in your job, please describe the height, steepness, duration and type of structure climbed. Maintains body equilibrium to prevent falling when walking, standing, crouching, or running on narrow, slippery, or erratically moving surfaces. If this is required in your job, please describe the type or condition of surface and activities during which balance must be maintained. 44 Perceives attributes of objects, such as size, shape, temperature, or texture, by touching with skin. Expresses or exchanges ideas by means of the spoken word to impart oral information to individuals and to convey detailed spoken instructions to other workers accurately, loudly or quickly. Perceives the nature of sounds by ear. Distinguishes, with a degree of accuracy, differences or similarities in intensity or quality of flavors or odors, or recognizes particular flavors or odors, using tongue or nose. Has clear vision at 20 inches or less (with or without corrective lens). Has clear vision at 20 feet or more (with or without corrective lens). Ability to judge distances and spatial relationships so as to see objects where and' as they actually are. Ability to bring an object into sharp focus (with or without corrective lens). Ability to identify and distinguish colors. Ability to observe an area that can be seen up and down or to the right or left while eyes are fixed on a given point. Ability to work for sustained periods of exposure to outside atmospheric conditions. Ability to work for sustained periods of exposure to nonweather related cold temperatures. Ability to work for sustained periods of exposure to nonweather related hot temperatures. Ability to work for sustained periods of exposure to nonweather related humid conditions. Ability to work for short or sustained periods of time exposed to a shaking object or surface. Exposed to conditions such as fumes, noxious odors, dusts, mists, gases, and poor ventilation that aff ect the respiratory system, eyes, or the skin. Exposed to possible bodily injury from moving mechanical parts of equipment, tools, or machinery. Exposed to possible bodily injury from electrical shock. Exposed to possible bodily injury from falling from high, exposed places. Exposed to possible bodily injury from radiation. Exposed to possible bodily injury from explosions. Exposed to possible bodily injury from toxic or caustic chemicals. 46 C. How many total employees work under your supervision? (These employees may report directly to you or to other employee(s) who report to you.) d. Describe the kind of supervision you exercise by checking as many of the following as apply: Plan and schedule work. Assign work. Instruct and train In methods and procedures. Check and approve work. Make recommendations regarding employee job performance. Conduct performance evaluations. Make hiring recommendations. Make final decision on hiring. Recommend salary adjustments. Make final decisions on salary adjustments. e. Financial Accountability Describe the 'ways in which you are responsible for generating revenues, managing budgets and/or controlling costs by checking as many of the following as apply: (Be sure to include estimated amounts, where applicable.) Generate annual revenues of $ Develop budget recommendations for a $ size budget. Exercise authority to approve expenditures up to $ Assist in preparing a $ size budget. Order supplies and equipment. Other (please specify): Part II -- To The Supervisor Review this employee's questionnaire carefully to see that it is accurate and complete. Then fill out Items 1 - 9. Do not fill in these items unless you supervise the employee directly. If you direct this employee through a subordinate supervisor, have that supervisor complete Part II. Your certification in Item 9 means that you accept responsibility for the accuracy and completeness with which the entire questionnaire describes the duties and responsibility of the job. if Part I does not express your view of the duties, responsibilities and essential functions that you have assigned the employee, It will be necessary for you to use Part II to qualify or elaborate the description. There are two essential cautions you should observe: Under no circumstances should you change or alter the employee's entries in Part I. 2. Do not make any statements or comments about the employee's work performance, competence or qualifications. This questionnaire will be used to evaluate the duties that constitute the position, not the performance or qualifications of the employee. Sign and date the certificate showing that you consider the entire questionnaire to be accurate and complete. 1. Describe briefly the principal functions of the department, division, section or unit you supervise. 2. Describe briefly the employee's position as you see ft. Show how it relates to the functions of the department. 50 6. Do you agree with the supervisory responsibility the employee indicates s/he has? Yes No If you do not agree, please describe the supervisory responsibility required of this position. 7. Do you agree with the financial accountability the employee indicates s/he has? Yes No If you do not agree, please describe the financial accountability required of this position. 8. State any other additions or exceptions to the statements made by the employee in Part I. 9. 1 certify that the above information is accurate and complete. Signature of Supervisor Name (Please Print) Date Department 52 APPENDIX C Conducted by: Slavin,` NevmA s AND ASSOCIATES, INC. Local Government Management Consultants 3040 Holcomb Bridge Road Suite B1 Norcross, Georgia 30071 (404) 449 -4656 Offices in Atlanta, Oakland, & Los Angeles 53 Please note that throughout this report we will indicate different numbers of respondents for different questions. Although thirteen organizations responded, some questions have only five or six responses. SALARY STRUCTURE General Informatlon All eleven respondents report that they have an established salary range structure in place. 0 5 report step structures. 0 6 report minimum /maximum range structures. The number of grades contained in the salary structures ranged from a low of 7 to a high of 25. The average number of grades is 14. Range spreads - (Max - Min) /Min - include a low of 21 % to a high of 91 %. Average range spread is 42 %. Structure /Market Adiustments Five of the 9 respondents answering this question reported market/structure adjustments for 1991. Lowest adjustment was 2.5% and highest adjustment was 7 %. Several organizations adjusted all plans by the same percentage. o In 1991, the average adjustment for executive plans was 3.8 %. o In 1991, the average adjustment for professional /exempt plans was 3.2 %. o In 1991, the average adjustment for nonexempt plans was 4 %. Four of these 9 respondents report market/structure projected adjustments for 1992. Lowest is 2.5% and highest is 7 %. o The average adjustment projected for 1992 for executive plans is 4.7 %. o The average adjustment projected for 1992 for professional /exempt plans is 4.3 %. o The average adjustment projected for 1992 for nonexempt plans is 4.8 %. Eight of the 11 respondents do not give cost of living adjustments (COLA). Of the three which do, the average last increase was 4.2 %. One jurisdiction has not given a COLA since 1987 and another since 1989. Only one organization projects a COLA for 1992. It is at 2.7 %. Step /Merit Increase Information Six of the respondents utilize anniversary dates for employee salary increase purposes. Four use a common increase date in July or September. All respondents allow salary increases annually. 54 C; Cafeteria -Style Benefits Plans Only four of the organizations surveyed currently offers a 'cafeteria - style' (Section 125 tax incentive) benefits plan option. All of those organizations have a flexible spending account which allows a pre- determined amount of before tax dollars to be set aside for expenses of child care, unreimbursed medical costs and insurance premiums. Long Term Disability (LTD) Eleven respondents provide LTD plans. Three respondents provide LTD through payroll deduction with the employee paying the total, or some portion of the cost. Two organizations do not provide long term disability coverage. is % Corr offers .a lc�n term �satai ::: ;:. Life Insurance All respondents provide fife insurance for employees at no cost, except one. The cost to the employee in that organization is $1 /mo. The typical coverage is one and one -half to two and one -half times annual salary; however, four organizations only provide a $10,000 death benefit. Retirement and Social Security Eleven respondents answered the question on participation in the Social Security program. Of the eleven, 7 respondents pay the Medicare portion only and 4 respondents participate in Social Security. Of these 4, only two are local government jurisdictions, LaPlata County and the City of Aspen. . Eagle Co htyr pactfci�at s in tE a Socjai Seeunty pcogran 67:1 All 13 of the respondents provide a pension program. Employee contributions range from 0% to 10% of pay with the average being 4.2 %. Employer contributions range from a low of 3% (those participating in Social Security) to a high of 16.15% (those not participating in Social Security.) The average employer contribution is 9.3 %. Full vesting in the pension plan typically occurs at five years of service. None of the respondents' plans are integrated with Social Security. The plans, without exception, are defined contribution plans. Thus, the formula for determining the retirement benefit depends entirely on the amount in the fund at the time of retirement and the number of years for which the employees wishes to draw benefits. Approximately 60% of the participating organizations contribute 3% or less in matching funds, while only some 30% contribute more than 4 %. While a few organizations allow immediate vesting, the majority (like Eagle County) vest after five years. Approximately 40% vest after ten years. PAY FOR TIME NOT WORKED Holidays and Personal Days Number of holidays provided annually by respondents range from a low of 9 to a high of 12 days. The average number of holidays provided is 10.3 a year. Paid personal days provided annually by respondents range from 0 to 2. Average number of personal days provided is 1.6. iragT , O , 0- unty ptivtdes 11 hclydays and! persona] days annually whichs +Eery competitive:: Vacations Eligibility Ten of the 11 respondents allow 5 to 12 days vacation after 6 months employment. The other respondent allows 10 days after one year of employment. 57 C Ci Average number of vacation days allowed are as follows: Ee Tenure Survey AvA. Eagle County 0 6 months 7.9 days 5* YS 0 1 year 10.9 days 10 days 0 5 years 15 days 15 days 0 10 years 18.4 days 243 days 0 15 years 20.6 days 20 days 0 20 years 21.2 daystdays Unused Vacation Time Eight organizations report that some vacation may be carried over into the next year, from a low of 30 hours of accumulation to a high of 320 hours of accumulation. Three organizations report that terminating employees may be paid for unused vacation: 1 pays unlimited accrual, and 2 pay up to 2 years accrual or 320 hours. Eagle Cap€y ailaws € 6ti hodFS (2Q days of uacafEOn iv be carried u#t €i succecrg dear> Sick Leave Of the 10 respondents, six allow employees to earn 12 sick days per year. One organization allows 15 days. The average number of sick days earned is 11.7. Seven respondents reported that they allow employees to carryover sick leave into subsequent years. Average number of days allowed to carryover is 83. However, most organizations (4) allow all sick leave accrued to be carried forward. Only 4 respondents pay employees for any portion of sick leave. One pays up to 240 hours on termination. The average amount allowed to be cashed in is 144.5 hours. However, each organization imposes various restrictions on how much leave can be 'cashed.' Four organizations pay some portion of sick leave at retirement. Three pay all of accrued leave and one pays 25% of total accumulation. Special Assistance /Benefits Five of the 10 respondents reported common incentive programs including bonuses, educational assistance, 50% of tuition up to $300 /yr., Employee Assistance Program (EAP) and direct deposit of payroll checks. C: C Nine of the 11 respondents provide uniforms or uniform allowances for their protective services personnel, 5 provide uniforms for maintenance personnel. One organization provides child care assistance by giving a discount on the service (private sector). Seven organizations provide a wellness program in the form of education, exercise and aerobics classes and health screening. Two organizations favor employees with a healthy lifestyle by offering them lower premiums on their medical insurance. One organization provides an EAP for it's Sheriff Department employees. Many of the respondents provide some level of distinctive assistance to employees in terms of 'extras' in the benefits programs. One organization provides housing opportunities (although they only have two units), two others provide discounts on housing (private sector organizations). Sic provide assistance with transportation, typically as discounts or passes on public transportation. Six of the respondents provide recreation passes to nearby facilities (skiing, golf, tennis, swimming), four at no cost to the employee and two with shared cost. The pass for the Town of Vail employees is valued at $1500 /yr. However, employees must be taxed on these benefits. PAY PRACTICES Overtime for Exempts Only one of 10 respondents indicate they do pay overtime to exempt employees. This organization pays at straight time. i=agte Goftty does nut payrvertrme'to exempt smp(oyees SNA agrees wrth Eagle`s pol�G< Compensatory Time Off Four respondents allow exempt employees compensatory time off. Ten respondents allow nonexempt employees to take compensatory time off and, of course, it must be applied at 1.5 -time for any hours over 40 per week. Three organizations allow exempt comp time to accumulate and 11 allow nonexempt comp time to accumulate. Two organizations allow exempt employees to cash in comp time if the employee is not able to take time off (with department head approval). 59 0 C Holiday Pay None of the 11 respondents pay exempt employees for working a holiday in addition to base salary. All pay nonexempt employees for working a holiday in addition to base pay; 5 pay at time and one -half and two at double time. Longevity Pav One - organization provides longevity pay to both exempt and nonexempt employees as a lump sum bonus. Emplovee Incentives Of the 11 respondents, 7 do not pay any incentive for certification and licensing programs. Four do pay for their employees to reach job required certification levels. One organization gives salary increases from 5 to 10% depending on the type of license /certification. Awards and Bonuses Nine of the 11 respondents have an awards program for employees. Typically this program recognizes years of service at traditional milestones, i.e., 5 yr, 10 yr, etc. One organization pays $1000 for 10 years of service. Three organizations have 'Employee of the Year' award programs, and one offers an *Above and Beyond' award. One organization offers $1000 as an incentive for work improvement, but reported no details of the program. One organization (private Sector) offers a profit sharing program for its management employees. Two of the 11 respondents offer special awards at the time of outstanding performance, rather than waiting for the traditional performance review. EM 1, .'' MK4 SAMPLE FINAL COMMUNICATION LETTER TO EMPLOYEES DATE: TO: Employee Name =OVA The consulting firm of Slavin, Nevins & Associates, Inc. has completed the Classification and Compensation Study for Eagle County. Your input has been crucial to the success of this study. Thank you very much for your interest and c000eration. The Consultants' final recommendations have been accepted by the Board of County Commissioners and will go into effect Listed below is the job title, grade, and salary range assigned to your position and new salary. Title: Grade: Salary Range: Minimum $ Maximum $ Proposed Salary You will also find attached a copy of your final class specification (optional). Please remember: This Study bears no relationship to your individual performance. This Study was conducted to assure internal equity among positions and external competitive salary ranges. The Consultants studied jobs, not people. We appreciate your interest and cooperation. 61 . ■ t t RECOMMENDED SAMPLE POLICY SALARY ADMINISTRATION PROGRAM This sample policy is provided for your information and discussion. Although SNA has attempted to modify this policy specifically for Eagle County, there are probably issues included which will require further review and revision to best meet the needs of Eagle County. Section 100.000 Purpose of Salary Administration Program The Salary Administration Program is the formal system for classifying positions and compensating employees in Eagle County. It is divided into two (2) distinct programs or plans. 1. The Classification Plan, which is the categorization of job positions, duties and necessary qualifications, and; 2. The Compensation Plan, which provides salary structures. Each plan will be discussed in detail in this chapter. Section 110.000 Amendment of Salary Administration Program The Human Resources Director, when necessary or when requested by the County Manager, shall cause the Salary Administration Program to be examined for the purposes of amendment. On the basis of conclusions reached through this examination, the County Manager will present recommendations for revisions in the Salary Administration Program to the Board of County Commissioners for appropriate action. The County Manager will review and present recommenda- tions to the Board of County Commissioners (the BOCC). The Salary Administra- tion Program shall constitute the pay schedule(s) for positions and shall be 62 effective for the ensuing fiscal year (or at such time as the Board of Commis- sioners may designate) and thereafter until amended or a new Salary Administra- tion Program shall be adopted by the Board of Commissioners. Section 120.000 Classification Plan The position Classification Plan(s) provide a systematic arrangement and inventory of the positions in Eagle County. Each class specification lists the minimum requirements or qualifications needed to perform the job such as education, work experience, and other qualifications. By describing essential job functions, job duties, responsibilities, and qualifications, the Classification Plan provides guidelines for establishing a pay plan based on these relationships. (120.100) Class Specifications Class specifications are descriptive and explanatory and are not necessarily inclusive of all duties performed. They are designed to indicate the types of duties and level of responsibilities assigned to the class. The use of a particular specification as to duties, qualifica- tions or other factors shall not be held to exclude others of similar kind or quality. (120.200) Official Copy of Class Specifications 1. The Human Resources Director shall maintain a master set of all approved class specifications which shall constitute the official Classification Plan. The official copy shall show all amendments to the original plan. The copies of the specifica- tions may include the date of adoption and /or the last revision of the class specification. 2. The Human Resources Director shall provide each depart- ment head with a set of class specifications of those positions 63 allocated in his or her department and such other positions as necessary. Such class specifications maintained in Human - Resources shall be open for inspection by employees under reasonable conditions during business hours. (120.300) Titles of Positions The title of an official class position shall be used to designate the position in all budget estimates, payrolls, and other official records, documents, vouchers, and communications in connection with all personnel processes. (120.400) Minimum Qualifications Minimum qualifications are considered comprehensive statements of the minimum required education, experience, and other qualifica- tions for all classes as evidence of an employee's ability to perform the work properly. Section 130.000 Procedures for the Classification of New Positions 1. The Human Resources Director shall create new class specifications for positions upon receipt of the prescribed forms indicating a statement of duties, responsibilities, and requirements of such positions from the Department Director. Whenever a new position is created, a Position Description Questionnaire (PDQ) must be submitted to the Human Resources Director and describe in detail the duties of such position. A desk audit and /or interview with the incumbent or Department Director may be required by the Human Resources Director after a new position is created and occupied, in order to verify that the position has been appropriately allocated. 64 a 2. The Human Resources Director and Job Evaluation Committee reviews and recommends approval or disapproval to the County Manager all proposed position creations, allocations, reallocations, and abolishment. 3. The County Manager shall review and approve or disapprove recommen- dations of the Human Resources Director regarding all proposed position creations, allocations, reallocations, and abolishment. Section 140.000 Procedures for the Reclassification of Positions The Director of Human Resources shall recommend changing the classification of existing positions when it is determined that the position is incorrectly classified. Such action is called reclassification and must be reviewed and approved by the County Manager. If an employee has facts which indicate that his /her position is improperly classified, the employee may request the Human Resources Director to review the classification of the position, with the knowledge of his /her Department Director. Such request shall be submitted in writing and shall contain a statement of justification. For this or any other type of request for reclassification from any source, the Human Resources Director shall thereupon investigate actual or suggested duties of the position and reclassify the position to its appropriate grade if warranted. The Human Resources Director will consult with the Job Evaluation Committee prior to recommending a reclassification to the County Manager. Reclassification may occur as the result of the conditions described below. 1. The position was incorrectly classified and there has been no substantial change in duties from those in effect when the position was originally categorized. a. If the position is occupied at the time of reclassification, the employ- ee shall be entitled to serve therein and retain the corresponding status after the position is reclassified. 65 } t d y C I 2. There has been a substantial change in the duties and responsibilities associated with a position since it was classified to a particular grade. a. If the position is assigned a higher pay grade than the current position, such action is considered an upgrade for the position. If the position is occupied at the time of an upgrade, the incumbent may be reclassified without examination, but does have to meet the minimum qualifications of the new position if they are changed. b. If the position is assigned a lower pay grade, this change is called a downgrade of the position. If the position is occupied, the incumbent will continue at the same pay and may receive increases to the maximum of the range of the lower grade. If the current salary is above the maximum for the lower class, the employee shall be permitted to continue at the present rate of pay, but shall not be entitled to future salary increases. C. In all cases of reclassification, if the position is vacant, it shall be filled in the prescribed manner. In all cases of reclassification of an occupied position, the incumbent is reclassified consistent with the new classification. The review date of the incumbent is not changed by reclassification. Any employee affected by the reclassification of his /her position, may file with the Human Resources Director a written request for reconsideration thereof in such manner and form as the Human Resources Director may prescribe and shall be given a reasonable opportunity to be heard thereon. Section 150.000 Abolishment of Positions Whenever there is justification for abolishing a position such as lack of work, reorganization, lack of funds, or other reason, the department head shall make .. such recommendation to the Human Resources Director. The Human Resources Director shall review and present such recommendations for approval by the County Manager. In no case will a position be abolished as a means of terminating an employee. Section 160.000 Maintenance of the Classification Plan 1. Each time a group or department is substantially reorganized, the Department Director will submit new Position Description Questionnaires for all affected positions to the Human Resources Director. 2. The Human Resources Director may require Department Directors to submit Position Description Questionnaires at any time when there is reason to believe there has been a change in duties and responsibilities of one or more positions. 3. Any change in the Classification Plan, such as establishing new positions, abolishing positions, reclassifying positions, or pay grade changes for positions require the prior review by the Human Resources Director and the approval of the County Manager. 4. Periodically, the Human Resources Director shall review the Classification Plan to determine if changes need to be made. Section 170.000 Compensation Plan The Compensation Plan is designed as a fair and equitable method for payment of employees in the County. The Plan shall establish a basic salary schedule as approved by the Board of Commissioners. The salary ranges shall include minimum and maximum rates of pay for all positions included in the Classification Plan. In addition to the basic salary schedule, the Compensation Plan consists of . d two salary components. These two mechanisms include market adjustments and merit awards. (170.100) Components of the Compensation Plan The compensation for each employee is the product of the basic salary structure and the two components of the Compensation Plan that shall be used to adjust employee compensation. These two components are discussed in detail in the following sections. (170.101) Market Adjustment (Optional) The market adjustment is the component that is used to insure that the salary structure is adjusted equally across - the -board to reflect changes in the wage index. Two considerations dictate whether or not a wage adjustment will be administered: changes in the wage index based upon references such as the Bureau of Labor Statistics (BLS) and the budgetary constraints of the jurisdiction. Each year, the Board of Commissioners shall vote on the applicability and the ability of Eagle County to apply a wage adjustment to the salary structure. When applicable and when funds are available, a percentage increase will be applied equally to all ranges, and may be applied equally to all employee salaries. (170.102) Merit Award The merit award component is designed to reward job performance, therefore, serving as an incentive system. Increases are awarded to employees whose performance is evaluated as consistently compe- tent and /or above standard. The performance appraisal is essential to the effective utilization of this component. The merit system is based upon the principle that standard, or above, performance should be rewarded because such performance is a greater contribution to the jurisdiction than below standard performance. The merit award is strictly used to monetarily reward standard or above standard performance. Employees whose current pay is less than the midpoint of their salary ranges and whose performance is evaluated as consistently competent and /or above standard may receive a salary increase based upon the Merit Increase Guide published for that year. Employees whose current pay is at or above the midpoint of their salary ranges and whose performance is evaluated as exceeding most standards may receive a salary increased based upon the Merit Increase Guide published for that year. Employees at the maximum of their salary ranges are not eligible for merit increases. However, they are eligible for performance bonuses which shall be paid in the form of lump sum bonuses. These bonuses are generally earned at a lesser rate of rewards than for employees whose pay has not reached the maximums. These increase guidelines are also published in the Merit Increase Guide each year. (170.200) Starting Rates for New Employees In most cases, a new employee shall be paid the minimum rate of pay for the position. Exceptions may be granted upon the written prior approval of the Department Director, the Human Resources Director, and the County Manager. Such a request must be made in writing by the Department Director for approval by the Human .• Resources Director. Exceptions may be made in the following cases. 1. The minimum rate for each position is based upon the assumption that a new employee meets the minimum qualifi- cations stated in the class specification. In the event that qualified applicants cannot be located for a given position, consideration should be given to establishing a new position at a lower grade which will reflect lower level duties and corresponding lower entrance requirements. 2. If a selected candidate exceeds the minimum qualifications stated in the class specification and will not accept appoint- ment at the minimum rate for the position, the candidate may be appointed at a higher rate up to the midpoint of the salary range. These cases should be thoroughly analyzed and measured against objective qualification standards. Consider- ation should be given to review and compare the salaries of employees in similar positions. In addition, every effort should first be made to recruit a qualified employee who will accept appointment at the minimum rate for the position. 3. Difficulty of recruitment may require payment of a higher rate. If difficulty of recruitment at the minimum rate in the salary range persists, consideration should be given to assigning a higher hiring rate or reevaluation of the position to determine if a higher pay grade is indicated. Appropriations for funding positions above the minimum rate must be secured within the framework of the budget of the department employing the individual. 70 (170.300) Part-time Employment Part-time positions are assigned to appropriate grades by the Human Resources Director. The same principles which apply to the Compensation Plan for full -time regular employees shall determine salary procedures for part-time employees. 1. Regular part-time employees can qualify to earn a merit increase after completing what would equal the total hours worked for one year on a full -time basis for the position. 2. Part-time employees are eligible for market adjustments in accordance with these policies. (170.400) Reinstated Employees A reinstated employee shall be paid at a salary rate within the approved salary range for the position in which the employee is reinstated. The salary level in the range will be related to, but not limited to such factors as performance, experience and length of previous service in the jurisdiction and shall be set by the County Manager, with advice from the Human Resources Director. (170.500) Employee Transfers An employee may be transferred to another department in a similar position and such transfer shall not change the employee's pay, grade, or the date from which eligibility for consideration for a merit increase shall be counted. (170.600) Temporary Work at a Higher Classification An employee may be required to work at a higher classification on a temporary, incidental or emergency basis and may do so for a 71 V period of thirty (30) days or less at no increase in pay. If the employee is required to perform the duties for a period exceeding thirty (30) days, the employee may be given an emergency appoint- ment (or provisional appointment) to the higher position and be paid the appropriate rate for the higher classification. At the conclusion of the assignment, the employee's pay shall revert to the authorized rate established for the employee's regular position. Any such temporary increase granted shall not affect the employee's eligibility for normal merit advancements. Temporary assignment may not exceed six (6) months without written approval for extension by the Human Resources Director and approval by the County Manager. Section 180.000 Promotional Increase Policy When an employee is promoted to a position in a higher grade, the employee's salary will increase at least to the minimum or hiring salary of the new grade. If an employee is promoted to a position one grade higher, the increase will be at least the minimum or hiring salary of the new grade or at least the percentage interval difference between the old and new grades added to the previous salary. If any employee is promoted to a position two or more grades higher, the increase will be at least the minimum or hiring salary of the new grade, or at least the percentage interval difference between the old and new grades added to the previous salary, but not more than fifteen percent (15 %) more than the previous salary. (180.100) Procedures for Determining Promotional Increase 1. The Department Director will recommend the amount of the promotional increase within the standards stated in this policy. 72 C tional increase and merit increase, if applicable. Any increase must be approved by the new /receiving Department Director and given final approval by the Human Resources Director. Section 190.000 Effects of Demotion When an employee is demoted to a lower position, the employee shall be paid at a rate which is within the approved range for the lower position. The rate of pay shall be set by the Human Resources Director, taking into consideration the circumstances surrounding, and the reasons for, the demotion. An employee who has not -completed the probationary period prior to demotion will be required to serve a new probationary period. 9 74