DFA MERIT PAY SYSTEM GUIDE

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1 DFA MERIT PAY SYSTEM GUIDE ACT 289 of 2007 and ACT 688 of 2009 and ACT 1017 of 2011 Revised April 13, Department of Finance

2 Guide Table of Contents Table of Contents INTRODUCTION TO THE DFA MERIT PAY PLAN... 3 ACT 449 OF ACT 1017 OF TERMS AND DEFINITIONS... 6 SELECTION OF FORMS... 9 SCORING RATING AND CATEGORIES ACT 289 OF 2007/ACT 688 OF ELIGIBILITY Merit Increase Matrix FREQUENTLY ASKED QUESTIONS JOB STANDARDS DEVELOPMENT PERFORMANCE EVALUATION STANDARDS DEVELOPMENT RELATIVE IMPORTANCE APPEALS PROCESS DISCIPLINARY MEASURES DFA CONDUCT AND DISCIPLINARY POLICY General Disciplinary Measures Responsibilities MERIT PAY LIAISONS PERFORMANCE EVALUATION CHECKLIST FORMS/LINKS DFA CODE OF ETHICS Revised April 13, Department of Finance

3 Guide Introduction Introduction to the DFA Merit Pay Plan Effective July 1, 2007, the State of Arkansas, resulting from Act 289 of 2007, implemented a Merit Pay Increase (MPI) system based on Performance Evaluations. The Office of Personnel Management developed the guidelines for implementation and the forms to accommodate the different levels to be reviewed. Both classifications of employees; classified and unclassified are eligible to participate in the MPI system. The two classifications made it necessary to create separate forms for the different levels being evaluated. Act 688 of 2009, effective June 28, 2009, implemented revisions to the Merit Pay Increase system. Classified personnel assigned to the Career Service Pay Plan ( C Grades) will normally receive their increase as a percentage of their biweekly check. Classified employees assigned to the Professional and Executive Pay Plan ( N Grades) and Unclassified employees (class codes beginning with U) being paid maximum annual salary rates will receive their increase in the form of a one (1) time bonus payment at the end of the fiscal year in which it was earned. If the employee terminates before the end of the fiscal year, the bonus will be forfeited. Classified employees ( C Grades) who exceed the maximum or career salary for their current grade will also be paid through a one (1) time bonus payment at the end of the fiscal year in which it is earned. The bonus dollars will be added into the current salary for retirement calculation purposes only. If the employee terminates before the end of the fiscal year, the bonus will be forfeited. All employees will have an eligibility date for the Merit Pay Increase. The eligibility date is October 1 for all employees hired on/or before October 1, 2006, or the latest hire date for any employees hired after October 1, All employees must have 12 months of continuous employment to be eligible for the Merit Pay Increase. The evaluation will still include the conduct component. Anyone receiving a written warning or greater disciplinary action during their current rating period will not be eligible for a Merit Pay Increase. Training may be included as a job duty standard on the new forms that were effective July 1, In most cases there should be a job related training requirement for each employee. There is an appeals process for employees affected by the Merit Pay System. However, only classified employees assigned to the Career Service Pay Plan ( C Grades) will have rights to appeal. Development of standards and terminology are found in this manual for your reference. Revised April 13, Department of Finance

4 Guide Act 449 of 2007 Act 449 of 2007 Annual Evaluation Of State Employees Performance And Review Of The Evaluation Process Are Required Act 449 of 2007 amends Arkansas Code to require each state agency, board, commission, or institution of higher education to revise or develop an evaluation process suited to its mission, begin the annual evaluation process of each state employees job performance 90 days before the employee s eligibility date and complete the employee s evaluation 30 days before the employee s eligibility date unless the agency director extends for good cause the employer s date for completing the employee s evaluation. Act 449 of 2007 also requires the following: Each agency, board, commission, or institution of higher education shall submit its performance evaluation process and associated forms to the Office of Personnel Management (OPM) of the Division of Management Services of the Department of Finance and Administration for initial review and approval by April 1, Revised April 13, Department of Finance

5 Guide Act 1017 of 2011 Act 1017 of 2011 Merit Awards to be Received On Merit Increase Date Effective July 1, 2011, employees in positions assigned to the career service pay plan ( C Grades) shall be eligible for a merit increase to be paid as a lump sum on the employee s merit increase date, and payment shall not be construed as exceeding maximum salary. Employees assigned to the professional and executive pay plan ( N Grades) shall be eligible for a merit increase to be paid as a lump sum on the last pay period of the fiscal year in which the increase is to occur, and payment shall not be construed as exceeding maximum salary. Non classified employees ( U Grades) in positions with maximum annual salary rates set out in dollars established by law shall be eligible for a merit increase to be paid as a lump sum on the last pay period of the fiscal year in which the increase is to occur, and payment shall not be construed as exceeding maximum salary. Revised April 13, Department of Finance

6 Guide Terms and Definitions Terms and Definitions Above Average On a regular basis, performance is characterized by high quality and quantity of work that exceeds most position requirements, key objectives, and management expectations. Employee demonstrates outstanding skills and abilities, and assignments are accomplished in a highly effective manner with limited guidance and direction. Comments This section is found on all of the Merit Pay Forms. It is used to make additional comments regarding the performance or rating of the employee. Core Performance Expectation Classified Professional and Executive (N grades) and Unclassified (U Class Codes) This is the criteria for evaluating performance and results. It may be a quantity or quality of output to be produced, a rule of conduct to be observed, a model of operation to be adhered, or a degree of progress toward a goal. Demotion Change in job status in which an employee decreases his/her current pay grade. A demotion (voluntary or involuntary) of one or more grades in the Career Service Pay Plan ( C Grades) will result in a 10% decrease. A demotion (voluntary or involuntary) of one or more grades in the Executive and Professional Pay Plan ( N Grades) will result in a 12% decrease. Duty Area Duty areas are identified as the major responsibilities of the position comprised of tasks with a common theme. Exceeds Standards Performance consistently exceeds position requirements and management expectations. Resourcefulness and depth of knowledge are of the highest quality. Assignments are accomplished in an exceptional manner with minimal direction and are characterized by outstanding achievements seldom accomplished within the agency/institution. Eligibility Date Date the employee is eligible for the Merit Increase. The date will either be October 1 or the anniversary date of the latest hire date. Employees must have 12 continuous months of state service to be eligible. Lateral Transfers A job change in which an employee does not receive an increase or decrease in pay, which may or may not involve a change in job duties. Employees must receive new standards for new duties and the change in standards must be submitted to HR for approval. Merit Pay eligibility dates do not change. In DFA some lateral transfers are for administrative convenience and does not result in job change. Revised April 13, Department of Finance

7 Terms and Definitions Merit Pay Increase System A merit-based pay system which incorporates pay and performance evaluation standards according to et. Seq., and establishes criteria for salary adjustments or lump sum payments for employees who meet requisite performance categories. Performance Evaluation System A system for comparing performance with pre-established standards of satisfactory performance. DFA is utilizing the standards-based performance evaluation process that has been in use since 1997 (with some minor changes). Promotion Employee being moved to a position that is one grade or higher than the employee s current grade level. An example is a competitive promotion. Promotions usually represent a 10% increase for C Grades or 12% increase for N Grades per OPM guidelines. Rater A person designated to supervise employees and is responsible for developing, monitoring, and evaluating performance standards and results for employees who report to them directly (subordinates). Please Note: A rater must complete all subordinate reviews prior to being eligible for a merit pay increase based on their own performance. Relative Importance Relates to the gravity/weight of the duty area for the job as a whole. We rate in terms of: A: Most critical to accomplishment of department and work unit priorities, B: Essential to the accomplishment of the job and work unit priorities, and C: This duty is important to the performance of the job as a whole but does not generally take up a great amount of time. Result The outcome of the performance compared to the standards or core expectations of the job. Reviewing Official Normally the Reviewing Official is the rater s supervisor or manager. The Reviewing Official approves the performance evaluations of the rater s subordinates. The Reviewing Official is also involved in the Appeal process. Salary Savings Funds accumulated as savings to fund the Merit Pay System. This usually occurs when regular salary positions remain vacant due to normal attrition (terminations and retirements) and job duties are either redistributed or vacant positions are refilled at lower salary rates than those of previous incumbents. Satisfactory Performance meets all or most and may occasionally exceed work objectives and management expectations. Employee demonstrates good knowledge of job duties, and assignments are accomplished effectively with normal supervisory guidance. Revised April 13, Department of Finance

8 Terms and Definitions Standards Classified Employees in the Career Service Pay Plan ( C Grades) The performance standards describe in detail what is considered the satisfactory level of performance. This allows the rater to identify when an employee exceeds the standard or performs below the acceptable level of performance. The standard should be measurable, observable, realistic in terms of the job, within the employee s control, and expressed in terms of expected results. Task The smallest essential part of a job. A unit of work activity that is a logical and necessary action in the performance of a job. Uniform Conduct Standards DFA elects to utilize its current disciplinary procedures and guidelines as part of the Merit Pay System. Individual offices may include conduct standards specific to their offices, with prior approval from DFA Human Resources. These may be modified as necessary, but are subject to review and approval by DFA Human Resources prior to use for Merit Pay System purposes. Unsatisfactory Performance does not consistently meet management expectations. Requires more than normal guidance and direction. Improvement and/or development are necessary if the rater elects to continue the incumbent s employment. Revised April 13, Department of Finance

9 Selection of Forms Selection of Forms To accommodate the evaluation of employees, OPM has developed the following Performance Evaluation forms: Classified Employees in Career Service Plan ( C Grades) DFA Employee Performance Evaluation Form This form is used for all classified employees in the Career Service Pay Plan ( C Grades). It consists of defined performance standards established for classifications as a whole or for individual positions. Link: DFA Employee Performance Evaluation Form Classified Employees in Professional and Executive Pay Plan ( N Grades) DFA Senior Management Performance Evaluation Form This form consists of eight core performance expectations and is for use by classified employees with N grades assigned to the Professional and Executive Pay Plan who manage a staff of four or more professional level employees and/or have complete responsibility for large programs/divisions that have statewide impact. The rating official is generally the Director or Deputy Director. Link: DFA Senior Management Performance Evaluation Form Unclassified Positions ( U Grades) DFA Executive Director/Deputy Director Performance Evaluation Form This form consists of five core performance expectations and is for the use by executive level top management ( U Class Codes). The rating official for the Agency Director is the Governor of the State of Arkansas. When evaluating the performance of a deputy director, the rating official is the Agency Director. Revised April 13, Department of Finance

10 Selection of Forms Revised April 13, Department of Finance

11 Selection of Forms Revised April 13, Department of Finance

12 Selection of Forms Revised April 13, Department of Finance

13 Selection of Forms Revised April 13, Department of Finance

14 Selection of Forms Revised April 13, Department of Finance

15 Selection of Forms Revised April 13, Department of Finance

16 Scoring Scoring The overall rating category is determined by the rating official based on the relative importance of each standard. Relative Importance - Relates to the gravity/weight of the duty area for the job as a whole. We rate in terms of: A: Most critical duty to the accomplishment of department and work unit priorities, B: Essential duty to the accomplishment of the job and work unit priorities, C: This duty is important to the performance of the job as a whole but does not generally take up a great amount of time. Overall Rating Examples (Using 6 Duty Area Performance standards) Critical Areas Essential Areas Important Duty Area #1 = A Duty Area #3 = B Duty Area #5 = C Duty Area #2 = A Duty Area #4 = B Duty Area #6 = C Exceeds Example Above Average Example Core Expectations Number of Duties Duty Area Number of Duties Duty Area Exceeds 3 #1, #2, #6 2 #2, #5 Standards Above 2 #3, #4 3 #1, #3, #6 Average Satisfactory 1 #5 1 #4 Unsatisfactory 0 Satisfactory Example Unsatisfactory Example Core Expectations Number of Duties Duty Area Number of Duties Duty Area Exceeds 1 #6 0 Standards Above 1 #1 1 #6 Average Satisfactory 3 #2, #3, #4 2 #3,#2 Unsatisfactory 1 #5 3 #1, #4, #5 Revised April 13, Department of Finance

17 Rating and Categories Rating and Categories The performance evaluation system will also utilize the following four (4) rating categories and corresponding percentages to determine overall scores of employee performance and award increases: Exceeds Standards (4.5%) Performance consistently exceeds position requirements and management expectations. Resourcefulness and depth of knowledge are the highest quality. Assignments are accomplished in an exceptional manner with minimal direction and are characterized by outstanding achievements seldom accomplished within the agency/institution. Above Average (3.0%) On a regular basis, performance is characterized by high quality and quantity of work that exceeds most position requirements, key objectives, and management expectations. Employee demonstrates outstanding skills and abilities, and assignments are accomplished in a highly effective manner with limited guidance and direction. Satisfactory (1.5%) Performance meets all or most and may occasionally exceed work objectives and management expectations. Employee demonstrates good knowledge of job duties, and assignments are accomplished effectively with normal supervisory guidance. Unsatisfactory (0%) Performance does not consistently meet management expectations. Requires more than normal guidance and direction. Improvement and/or development are necessary if the rater elects to continue employment. PLEASE NOTE: Act 688 of 2009 provides for the above increases, however, the law also states: If the Chief Fiscal Officer of the State determines that general revenue funds are insufficient to implement the merit increases authorized in this subchapter or by any other law that affects salary increases for state employees, the Chief Fiscal Officer of the State, upon approval of the Governor, may reduce the percentage of all authorized merit increases for all state employees covered without regard to whether the employees are compensated from general or special revenues, federal funds, or trust funds. Therefore, the Chief Fiscal Officer of the State issued a memorandum dated May 14, 2009, to agencies covered under Act 688 of 2009, which set the merit pay percentages at half the amount authorized in the Act, or 2.25%, 1.5%, 0.75%, and 0%. Additionally, Act 688 provides the following: However, if sufficient general revenues should then become available at any time during the fiscal year to provide the merit increases for all state employees without regard to the source of revenues, merit increases for state employees provided for may then be fully implemented by the Chief Fiscal Officer of the State. Revised April 13, Department of Finance

18 Eligibility ACT 289 OF 2007/ACT 688 OF 2009 Eligibility Full-time and Part-time Employees To be eligible for a merit pay increase, an employee must have continuous employment in either a classified or unclassified position with the state in a regular, full-time or part-time position for 12 months. An employee is defined as one who has had continuous state employment since their Date of Hire to their first anniversary date to be eligible to receive an increase on their Merit Date. Rehired Employees Employees that are rehired into state employment (after October 1, 2006) shall have their latest hire date become their merit increase eligibility date. This date will become their merit increase eligibility date for the remainder of their career with the State of Arkansas. Extended Leave (Military Leave/Extended Military Leave/Catastrophic Leave/LWOP) Employees on any type of extended leave who miss their eligibility date will receive a merit increase upon their return. If at the time of the rating, the supervisor determines the employee has not worked enough hours to sufficiently rate the employee s performance, the supervisor can use the rating from the previous year s evaluation. Six (6) months of attendance during the rating period is not required. The employee s eligibility date does not change. Classified Employees in the Career Service Pay Plan ( C Grades) Classified employees in the Career Service Pay Plan who have had continuous state employment for twelve months are eligible for a merit pay increase to be paid as a lump sum on their merit increase date. Classified Employees in the Professional and Executive Pay Plan ( N Grades) and Unclassified Employees ( U Classes) Classified employees in the Professional and Executive Pay Plan and Unclassified employees, except those in institutions of higher education, who have had continuous state employment for a period of 12 months, are eligible as described above. Such performance-based merit increases shall be paid as a lump sum, will not be considered as exceeding the line item maximum for the position, and will be considered salary for the purposes of retirement eligibility. An employee must have been in continuous state employment since October 1, 2008, to be eligible for a bonus payment on October 1, Those employees who have not accumulated 12 months of continuous state employment by October 1, 2009, shall have their latest hire date become their merit increase eligibility date. These employees shall have an annual performance evaluation review conducted at least 30 days prior to October 1, 2009, or the latest hire date, whichever is applicable, similar to that of classified employees. Act 688 of 2009 stipulates that employees in these two categories will receive the merit pay increase in a lump sum payment during the last pay period of the fiscal year in which the increase is due. The employee must be in pay status to receive a lump sum payment. Revised April 13, Department of Finance

19 Eligibility Conduct Disciplinary Action Employees who receive a written or greater conduct disciplinary action during the 12 month rating period are not eligible for a merit increase. The employee s performance evaluation and date of merit increase eligibility remain October 1 or the latest hire date, whichever is applicable. Performance-based Action If an employee falls below Satisfactory in one or more duty areas with a Relative Importance of B or C, the supervisor should immediately address those areas and counsel with the employee. This will allow the employee an opportunity to improve in unacceptable areas before the end of the rating period. If at any time during the evaluation period the supervisor determines that the employee s performance in one or more of the duty areas with a Relative Importance of A OR the overall performance has fallen below an acceptable standard ( satisfactory ), the supervisor should immediately place the employee on performance-based probation, address those areas, and counsel with the employee. The probation period will not exceed 90 calendar days initially. The supervisor should develop a Performance Improvement Plan clearly defining what is expected, consistently monitoring, and providing feedback/counseling to the employee. If the employee s overall performance improves during the probation period but not to the level of satisfactory standards by the end of the probationary period, the rater can extend, but is not required to extend, the probationary period for an additional timeframe not to exceed 30 calendar days. If the employee does not exhibit performance improvement to the satisfactory level at the end of the second probationary period, the employee will be subject to a demotion, transfer, reassignment, or termination. If an employee is placed on probation, the terms and conditions of the probation should be documented and a copy sent to DFA Human Resources for placement in the employee s official personnel file. If the employee s performance improves and the probation period is ended, written documentation of the probation results should be sent to DFA Human Resources for placement in the employee s official personnel file. Employees are allowed to make a formal request for reconsideration of their performance evaluation rating. Employees should always receive a copy of the completed and signed Performance Evaluation packet. Promotions/Demotions/Transfers Employees who transfer or receive a promotion or demotion will be eligible on their merit date to receive their merit increase. If an employee has been in the new position less than six months, the current DFA Administrator/Manager has the option of conducting the PE or may request the PE from the previous Administrator/Manager (whether they are DFA affiliated or not). Merit Increase percentages will be awarded to eligible employees in accordance with the merit matrix, as authorized by the Chief Fiscal Officer of the State on May 14, Revised April 13, Department of Finance

20 Merit Increase Matrix Merit Pay Plan System Eligibility Performance Evaluation Rating Merit Increase As % of Annual Salary Exceeds Standards 2.25 % Above Average 1.50 % Satisfactory 0.75 % Unsatisfactory 0.00 % Any Employee Classified or Unclassified that Supervises Other Employees Management or Supervisory personnel who fail to complete an annual evaluation of employees under their administrative control shall NOT be eligible for merit payments. Funding Agencies/Institutions that have exhausted resources should contact the DFA Office of Budget for information concerning access to the Merit Adjustment Fund. Revised April 13, Department of Finance

21 FAQs Frequently Asked Questions 1. What will my merit increase be? The Chief Fiscal Officer of the State determines each year what the percentage increase is for each rating category. 2. What will my eligibility date be? Either October 1 or the employee s latest hire date. 3. What if I transferred from one state agency to another? As long as the employee has 12 months of continuous service they will be eligible to receive the merit increase. 4. What happens when I am on Catastrophic, FMLA, or other extended leave during my rating period? As long as an employee has twelve (12) months of continuous service, he/she will receive a performance evaluation. Based on the evaluation rating, he/she could be eligible for a Merit Increase on the eligibility date. 5. What happens if I receive a written warning? Any employee who receives a written warning or greater Disciplinary Action during the 12 month rating period will not be eligible for a merit increase. 6. What is the appeals process for the Merit Plan? The Appeals process is discussed in the Appeals section of this manual. 7. Is there an appeals process for Unclassified (U class codes) or Professional and Executive ( N Grades) positions? Currently there is NOT an appeals process for unclassified positions or for positions in the Professional and Executive Pay Plan. 8. May training be included in the Merit System performance evaluation? You may include training or certifications in the job standards and are encouraged to do so; however, they are not mandatory. Examples: Attorneys CLE s CDL - Commercial Drivers for M & R. CPAs Boiler Operator Nurses 9. Will conduct be included in the Merit System performance evaluation? Conduct will continue as an eligibility factor for merit pay. An employee who receives a written warning or greater Disciplinary Action during the 12 month rating period will not be eligible for a merit increase. Employees with performance-based issues will be placed on a performance-based probation with a plan for improvement. If the employee is on probation for performance-based issues at the time of their evaluation, the employee should not receive above a Satisfactory rating on the PE. Revised April 13, Department of Finance

22 Job Standards Development JOB STANDARDS DEVELOPMENT Performance Evaluation Standards Development In the planning/implementation stage the supervisor and employee discuss the standards that will be used to evaluate the employee's performance throughout the performance cycle. STEP 1: Identify Job Tasks To ensure that performance standards are job related, you must first analyze the job by breaking it down into its smallest components, called job tasks. The task statement is usually a brief description of an activity. It tells what is to be done, not how it is done. It is usually an action verb and object. Position Example: Title DFA Service Representative Job Tasks Opening mail Batching QA MICR Bank Recon Review backup documents Billing Issues Identifying payments that should be EFT Identifying payments that consistently go to Research and need corrective actions Identifying payments that consistently post incorrectly Please Note: Be sure to include all job tasks for a ratee (employee). The Office of Personnel Management recommends discussing these tasks with the employees themselves. Accurate information is crucial to achieving success at this and other stages of the performance evaluation process. STEP 2: Identify Duty Areas As you complete your list of tasks, you will probably notice that the tasks begin to group themselves into areas with a common theme. For example, tasks dealing with decision-making may stand out. As you identify the duty areas of the position, you will also see that you are defining the major responsibilities of the position. Duty areas are the reason a position exists. It may be more comfortable for you as a supervisor to begin the process at this step than at Step 1. Please, if you begin by identifying duty areas, do not forget Step 1. If you conscientiously make a list of all of the tasks which comprise each duty area, you may find that one of the tasks listed is really important enough to be another duty area. If you have identified more than six key duty areas, you may have defined the job too narrowly. If there are fewer than three duty areas you may have defined the job too broadly. Revised April 13, Department of Finance

23 Job Standards Development Example: Job Title Job Tasks Duty Areas DFA Service Representative Opening mail Batching QA MICR Bank Recon Process Child Support Payments Review backup documents Billing Issues Identifying payments that should be EFT Identifying payments that consistently go to Research and need corrective actions Identifying payments that consistently post incorrectly Correspondence And other Data Reliability System clean up projects STEP 3: Identify Performance Indicators Performance indicators provide a link between the general duty and the specific performance standard. It is a general description of what defines successful performance of the duty area but lacks a quantitative or qualitative description of the level of acceptable performance. A performance indicator may be one or two words, usually an adverb that describes what is important in the performance of the duty area, or it may be a statement that describes what is to be done. Example: Process Child Support Payments Correspondence And other Data Reliability System clean up projects DUTY AREA ( What? ) PERFORMANCE INDICATORS ( How? ) According to directions, within State and Federal Guidelines On time, Within department guidelines, Within a stated time period Performance indicators are not part of the final standard. However, the use of indicators can help to bridge the gap between the duty area (what is to be done) and the next step: the performance standard (how it is to be done). In order to complete the performance standard the indicator must be converted to something concrete and measurable. For example, properly might become in accordance with Generally Accepted Accounting Procedures. Revised April 13, Department of Finance

24 Job Standards Development STEP 4: Identify Performance Standards The performance standard describes in specific detail what is considered the satisfactory level of performance. This description allows the rater to identify when an employee exceeds the standard or performs below the acceptable level of performance. Most duty areas will have one to three standards. Keep in mind that standards and performance indicators are written for duty areas and not for each task. The important thing to remember is that the standards will reflect the results that are expected in performance of the duty area. The Arkansas Performance Evaluation Plan uses a four-level range of performance categories to rate the employee's actual performance against the expected performance as stated in the standards. The range is shown in this manual and on the rating forms. Although you are required to write standards only for the satisfactory level, if you have trouble determining what that level is, consider writing the standards for the "exceeds" and above average levels as well. This will help you identify and communicate your expectations for each level. It will also be helpful in explaining what the employee must do to exceed the fully satisfactory level. In addition, it will be easier to apply the rating scale to the employee's performance at the end of the evaluation cycle. A performance standard will be: measurable and observable realistic in terms of the job within the employee's control expressed in terms of expected results Standards can be expressed in terms of specific quantities, such as numbers or percentages, or quality measures that include accuracy, judgment, or opinion ratings. If percentages are used, it is important to identify the total universe from which they are chosen, and ensure the field will be large enough to provide an adequate sample of work performance. If a standard can be written with both a quantitative and qualitative measure, it will enable you to obtain a better overall measure of the employee's performance. A performance standard is composed of three parts: 1. An activity statement that tells what is to be done. If there are guidelines or procedures that cover the activities that are to be performed, the activity statement can refer to them, or the specific tasks can be included in the statement. 2. A qualifier that describes the fully satisfactory level of performance. This is what the rater will use to compare the employee's actual performance against the expected performance. This is where the performance indicators are turned into something concrete and measurable, i.e. quickly becomes within two days of receipt. Revised April 13, Department of Finance

25 Job Standards Development 3. A method of monitoring (MOM) that refers to how and how often the rater plans to observe the employee's work performance. The MOM is used to record the necessary documentation that will be used to determine an overall score at the end of the evaluation period. In order to effectively monitor the employee's work performance, the rater must have a method that is both appropriate and feasible. The intent of this step is not to increase paperwork. In most cases a MOM already exists that can be used to determine how well the employee is performing his or her duties. Monitoring may be conducted on a random or periodic basis. If random monitoring is chosen, be sure to observe work performance over the entire evaluation period. Do not check performance just at the beginning of the evaluation cycle and fail to check performance the remainder the period. The important thing to remember is that a supervisor cannot wait until the end of the performance evaluation cycle to correct problems. By monitoring performance problems can be identified and the employee can get back on track quickly. Monitoring also helps the rater to reinforce good performance when it occurs. Types of MOMs include: 1. Reviewing work, either total output or sample. 2. Observing employee work activities. 3. Reading reports, charts, timesheets, work records, logs, etc. 4. Self-reporting on progress by the employee. 5. Surveying other units, the public, or customers or services. 6. Noting and investigating complaints and commendations. Job Standards with a Measurement or Qualifier The following are examples of "qualifying" sentences. They are not job standards - yet. But a task statement coupled with one of these "qualifier" sentences will make an acceptable job standard. These qualifier statements are simply performance indicators written in a more concrete and quantifiable way. For example, a performance indicator of accurately may translate to a qualifier of with no more than X errors per report. Example: Task Statement: "Provides technical assistance and advice to agency contacts on accounting policy and procedure." Add: "Supervisor receives five or fewer valid, documented complaints per quarter." The second sentence or "qualifier" adds a gauge ("five or fewer complaints"), a timeframe ("per quarter") and the idea of accuracy. The second sentence, in essence, is part of the supervisor's "measuring tool". Revised April 13, Department of Finance

26 Job Standards Development Examples of Qualifiers Indicating Accuracy/Quality: Supervisor receives X or fewer valid, documented complaints per (month, quarter, etc.). Supervisor notes X or fewer errors per (month, quarter, etc.). The final work product is completed according to instruction with X or fewer resubmissions. Materials are prepared according to (accepted, specified, established, etc.) (guidelines, policies, criteria, instructions, etc.). Example of a Qualifier Indicating Rate: Processed X number of (words, numbers, documents, etc.) per (minute, day, week, etc.). Examples: Title Duty Area Performance Standard Process Child Maintain less than a.26% error rate at any Support given duty area during the rating period. Payments DFA Service Representative MOM Computer reports, observation, and supervisory review. In some cases, it may be necessary to write two or three standards for a single duty area. This is usually due to the diversity of the job tasks within the duty area. Title Duty Area Performance Standard DFA Service Rep. Correspondence And other Data Reliability System clean up projects Review backup documents MOM Computer reports, observation and supervisory review. Correspondence And other Data Reliability System clean up projects Billing Issues Identifying payments that should be EFT Identifying payments that consistently go to Research and need corrective actions Identifying payments that consistently post incorrectly MOM - Computer reports, observation and supervisory review Revised April 13, Department of Finance

27 Job Standards Development Relative Importance Assign an alpha value to each standard utilizing the following Relative Importance Scale: A. This function represents the major reason the job exists. It is critical to the performance of the job as a whole and to the accomplishment of department and work unit priorities. In most cases, this function consumes the majority of the employee s time. B. This function is essential to the performance of the job as a whole and to the accomplishment of department and work unit priorities. In most cases, this duty will consume a great deal of the employee s time. C. This function is important to the performance of the job as a whole and to the accomplishment of department and work unit priorities. However, this duty will not generally consume a great amount of the employee s time. PART IV PERFORMANCE STANDARDS Relative Importance: A B C Duty Area: Standard: Results: Comments: Exceeds Standard Above Average Satisfactory Unsatisfactory As you can see on the form above the Relative Importance should be indicated for each duty area and conveyed to the employee in terms of importance of that particular duty area. MONITORING/DOCUMENTATION Throughout the evaluation period, the rater will review the employee's work performance according to the MOMs (Method of Monitoring) identified in the performance standards. Since monitoring provides the data by which overall performance is rated, the rater would document the results, then at the end of the evaluation period review the documentation and make an overall evaluation of the employee's performance. The notes are usually kept in the "employee file". The file will contain information that is crucial to job performance and the information will describe performance which meets, exceeds, or falls short of the satisfactory level. Following are some guidelines for using the employee file: 1. Be consistent. Keep documentation on all employees, not on just a select few. Document similar situations on all employees. 2. Document activities, not attitudes. Write down actual behavior observed, not how you feel about it. 3. Make the file accessible but confidential. Allow your employees access to their individual file but maintain confidentiality from other employees. Revised April 13, Department of Finance

28 Job Standards Development 4. Document incidents that describe all levels of performance. Ensure that all noteworthy activities are documented to give you a complete picture of the employee's performance, both exceptional and unsatisfactory. 5. Be timely. Record and discuss the activity as soon as possible after the occurrence. 6. Be accurate. Record only the facts; do not include hearsay information or rely on your memory. Do not include opinions. Do not put down what you hear in the coffee room. 7. Review. Review the incident documentation prior to the actual performance evaluation. 8. Do not carry over employee information from one evaluation cycle to another. In other words, rate your employees on current information, not on notes from past evaluation periods. 9. Maintain your file. File documentation that affects a personnel action must be maintained for several years: at least three and sometimes five years. Some class action suits require information that goes back seven years. 10. A word to the wise from the Attorney General's Office: OVERDOCUMENT. Keep more than what seems necessary and all information concerning salary and personnel decisions. If an employee transfers or leaves state government, the employee s Official Personnel File will be maintained by DFA Human Resources for the required amount of time. If the supervisor has documents that should be included in the Official Personnel File, they should be forwarded to DFA Human Resources. 11. The official HR file is housed in DFA-HR. Copies of all disciplinary actions, counseling memos, notes, etc., that lead to disciplinary actions, performance based actions, or any documentation pertaining to discipline, behavior, or performance should be sent to DFA- HR. Supervisors are also encouraged to maintain their own files on each employee. 12. Do not keep files from the employee. Files must be made available for employee review. 13. It is recommended that you have the employee to sign the file notes (complaints, written warnings, etc). 14. This is not a "Gotcha!" system. Make sure your documentation reflects the complete picture of an employee's performance. If not, you may find yourself trying to defend yourself against accusations of "case-building" on certain employees. 15. Support documentation will include specific incidents, instances, and work samples, commendation and complaint letters, noteworthy occurrences, certificates of completion from training programs, and certificates of achievement and merit. Revised April 13, Department of Finance

29 Appeals Process APPEALS PROCESS Classified employees ( C Grades) will make a formal request for reconsideration of their performance evaluation rating utilizing the following process: STEP 1: An employee who does not agree with the evaluation may request, in writing, a review of the evaluation with the reviewing official. This written request must be made within five working days of the initial performance evaluation meeting between the rater and the employee. The reviewing official will schedule a meeting with the employee within two weeks of receipt of the request from the employee. The reviewing official may also meet with the rater during the same two week period. Upon meeting with the employee, the reviewing official will respond in writing within three business days to the employee s request. STEP 2: If an agreement is not reached between the employee and reviewing official, the employee will request, in writing, a meeting with the administrator (if the administrator is not the reviewing official). The written request by the employee must be made within five working days from the date of the reviewing official s response. The administrator will schedule a meeting with the employee within two weeks of the receipt of the request from the employee. The administrator may meet with the rater and the reviewing official during the same two week period. The administrator will then respond in writing to the employee s request within three business days following the meeting with the employee. STEP 3: If agreement is still not reached, the employee will request in writing within five business days from the date of the administrator s response, a meeting with the DFA Human Resource Manager*. The DFA Human Resources Manager* may meet with the employee, rater, reviewing official and/or administrator (if not the reviewing official). The DFA Human Resource Manager*, along with the Assistant Revenue Commissioner for Administration and Operations (Revenue Division) or the DFA Deputy Director (all other DFA appeals) will analyze the information and present the findings within fifteen days of the appeal request and prepare a summary of the findings and a determination. This will be submitted to the DFA Director, the employee and all other management levels involved in the appeals process. *Appeals filed by employees located in the DFA OAS Human Resource Section will not be reviewed by the DFA Human Resource Manager; the DFA Director or Deputy Director will appoint a reviewer. STEP 4: If the employee is not satisfied, s/he may appeal to the DFA Director in writing within ten business days of the date of the summary and determination from the DFA Human Resources Manager* and Assistant Revenue Commissioner or DFA Deputy Director. Revised April 13, Department of Finance

30 Appeals Process STEP 5: The DFA Director will make a determination regarding disposition of the review within thirty business days. The DFA Director may meet with the employee and/or all levels of management involved if necessary. The decision of the DFA Director is final and binding. In most cases, the employee will use the Merit Pay Appeal Process providing that the review is valid and presented within the rating period in question; however, an employee may utilize the DFA EEO/Grievance Procedure regarding performance evaluations if the basis of the complaint is unlawful discrimination or the evaluation leads to disciplinary action. Revised April 13, Department of Finance

31 Disciplinary Measures DISCIPLINARY MEASURES DFA Conduct and Disciplinary Policy Purpose These guidelines are established to provide a uniform process concerning work-related behaviors, which define and convey the expectations of DFA to its employees. All published DFA Policies and Procedures are established to provide guidance for appropriate employee conduct. This document is intended to explain the disciplinary measures that might be taken by the agency s management and supervisors for violation of those policies and procedures. Conduct expectations and disciplinary actions are intended to identify recurring or common deviations from acceptable work-related behaviors, in an effort to create and maintain a high level of professional manner. Nothing in this policy is to be construed as an employment contract between DFA and the employee. DFA adheres to the Arkansas Employment-At-Will doctrine. All Disciplinary Actions must be submitted to the DFA Human Resources Manager for inclusion in the Employee s Official Personnel File. General Disciplinary Measures Policy (Administrative Memo ) It is the policy of DFA that management shall establish a work climate that promotes productivity. Management shall also communicate job expectations (through performance standards) and behavioral expectations (through federal, state, and agency policy, rules, and procedures) separately to all employees. Discipline applied by supervisors should be aimed at improving employee behavior, not punishing the employee. Behavior is defined as actions or lack of actions by employees related to work rules, office mission, and/or safety of themselves, co-workers, and customers. The following sequence of steps is provided to assist supervisors with the disciplinary process: 1. Verbal warning recorded in the employee s personnel file. 2. Written warning recorded in the employee s personnel file. 3. Suspension without pay. (For exempt employees, a five (5) day minimum suspension is required.) 4. Termination. Should disciplinary measures be necessary, they should be applied immediately, consistently, and impartially. Revised April 13, Department of Finance

32 Disciplinary Measures Supervisors are required to: 1. Maintain good records and documentation; 2. Investigate the violation and circumstances surrounding the incident; 3. Equate the severity of the discipline to the violation, not the person; 4. Discipline in private; and 5. Warn employee of the consequences of repeat offenses. This sequence of steps in the disciplinary process is recommended for most violations. Some violations initially may require implementation of more severe disciplinary action, including immediate dismissal. Supervisors should consult with the DFA Human Resources Manager regarding extreme or severe situations. (Reference DFA Administrative Memorandum ) Disciplinary Measures for Unauthorized Absences (Administrative Memo ) Employees who are absent from work without authorization will have their pay reduced (docked) by an amount equal to the length of time of the absence computed at the employee s rate of pay in effect at the time of the absence. Unauthorized absences are those occurring: 1. When an employee has not obtained required advance approval for leave or 2. Has exhausted all leave balances and leave has not been approved for other available types of authorized leave (i.e., regular Leave Without Pay, Family and Medical Leave, Maternity Leave, Catastrophic Leave, Military Leave, and Court/Jury Duty Leave). Employees who are absent due to a work-related injury or illness and who are receiving Workers Compensation benefits are exempt from this policy. Supervisors may use their discretion in determining whether a particular absence should be authorized or unauthorized LWOP. Employees receiving four docks due to unauthorized absences in any 12 consecutive month period shall be terminated. The following disciplinary measures should be implemented when an employee is absent from work without authorization: 1 st Dock: Verbal Warning On the occasion of the first dock, the supervisor will counsel the employee regarding the unauthorized dock and the consequences of repeat absences without authorization. The verbal warning is to be recorded in writing, signed by the employee acknowledging receipt of the warning, and placed in the employee s official personnel file. 2 nd Dock: Written Warning On the occasion of the second dock, the supervisor will prepare a written warning to be recorded, signed by the employee acknowledging receipt of the warning, and placed in the employee s official personnel file. The written warning must reference the first dock/verbal warning and define the disciplinary action for further unauthorized docks. Revised April 13, Department of Finance

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