Business Services And You - A Partnership In Excellence

Introduction

In 1997, Business Services introduced a Compensation and Staff Development Plan for administrative and professional staff. Since 1997, there have been changes and additions that are incorporated into the new Business Services And You guide.

This guide is intended for administrative and professional employees within Business Services and provides information for these staff in the areas of:

• Performance Management
• Position Bands
• Compensation
• Posting Vacant Positions
• Career Management

This guide will be updated as necessary and will be available through the Business Services web page.

Business Services Performance Management Process

The Business Services Performance Management process has been designed to emphasize the importance of expectation setting and career planning. Specific components include:

• Emphasizes the importance of expectation setting and career planning

Rationale: Expectation setting is the foundation of a performance-based pay system. Career planning helps ready staff to assume increasingly responsible positions within the organization.

• Focuses on the Business Services competencies and the other performance elements listed under the "Performance-Based Pay" section of this document

Rationale: The Business Services Performance Management process must reflect the organization’s strategic goals and values.

• Directs the supervisor and employee to set performance expectations together at the beginning of the calendar year

Rationale: Emphasizes the importance of expectation setting, as well as the partnership between the employee and supervisor.

• Directs the supervisor and staff member to meet regularly to discuss performance

Rationale: Every Business Services staff member is entitled to receive performance feedback on a regular basis.

• Gathers and uses feedback from the staff member’s customers

Rationale: The cross-functionality of our organization demands that we obtain feedback from our internal customers when evaluating staff performance.

• Eliminates ratings

Rationale: Ratings sometimes distract attention from the most important aspect of performance feedback, namely the discussion about what the employee has done well, what can be improved, and what career development opportunities exist.

• Process

Business Services Performance model: 

		Employment (Entry)
New Responsibilities		Performance Planning (Expectations)		Current Responsibilities
		Performance Coaching and Feedback (Feedback)
		Performance Summary (Evaluation)
Mastery		Development and Career Planning (Future Interests)		Development
		Managerial Review

Narrative of Business Services Performance Management model:

Supervisors and employees share the responsibility for effective Business Services Performance Management. Through this model, emphasis is placed on this shared responsibility. It provides a clear path for engaging in the Business Services Performance Management process. Employees and supervisors should follow the Business Services Performance Management document.

Performance Planning is the expectation setting discussion that occurs at the beginning of the performance period. Each supervisor and employee will identify, set, and communicate expectations.

Performance Coaching and Feedback is the ongoing dialogue between supervisors and employees about progress against the performance plan.

Development and Career Planning occurs throughout each step in the Business Services Performance Management process. Discussion may occur concurrently with performance planning, coaching and feedback, and review discussions. These discussions focus on the employee's interests and organization's need. Through exploration of these two areas, possible career paths can be distinguished.

Simultaneously, the Performance Summary should be discussed. At this year-end review, readiness will be evaluated based on the general performance competencies and job specific skills.

In many cases, the employee will have room for Development in their current areas of responsibility. In this case, it will be the responsibility of the supervisor to help identify the gaps between competencies needed for the employee's current position and career interests, and those not mastered. Jointly, the employee and supervisor will identify tools and opportunities for improvement.

When the employee approaches Mastery of competencies related to their current position, the supervisor will explore the opportunity to add new responsibilities. These new responsibilities may be provided through a number of ways including (but not limited to) a new position, project assignment or cross-functional work.

Available opportunities to take on new responsibilities and appropriate development will be discussed by supervisors in a Managerial Review (see below). The review will serve as a communication mechanism for exploring the variety of opportunities available throughout Business Services. Information regarding new opportunities will then be brought back to the employee and a development plan established.

Whether an employee shows mastery, needs development, or some combination of competency level, the cycle of Business Services Performance Management does not end. It is continuous and constant. The next step for either scenario takes the employee and supervisor back to the expectations discussion in Performance Planning. Dialogue may involve the original expectations taken to a higher level or may include new expectations that follow new responsibilities.

• Managerial Reviews

As one step in the Career Planning process, the Vice President’s Senior Staff and subsequent supervisory levels will conduct semi-annual Managerial Reviews. These facilitated discussions will form around the current and future organizational needs with respect to personnel. Organizational necessity, together with employee interest, motivation, and development are in the forefront of this review process.

Planning process:

Each member of the Senior Staff will identify key positions in his or her organization. These key positions are those that directly influence the organization on a University-wide basis or in a significant area or unit. These positions may change from review to review, based on current organizational issues.

For each position identified, the Senior Staff will determine three to five competencies (skill sets) necessary for success in that position. These may include any of the general performance competencies or any functional competencies that are most essential to the position.

Review process:

At this point, each Director may share information about people who show a certain level of mastery or aptitude in the identified competencies. (This information combined with the person's career interests and readiness to move will help the Senior Staff plan for key staffing needs.) Development opportunities for staff will be discussed and a range of competencies essential for growth will be pinpointed.

At the conclusion of the Managerial Review, the Senior Staff will have information that can be shared with the employees to identify opportunities for professional development and competency mastery. This information will be discussed in the Career Planning step of Business Services Performance Management. In this respect, people are not being primed for a specific position, but rather a level of competency that would help them succeed in a number of key positions.

Managerial Review, other than at the Senior Staff level, will occur with supervisors and the Senior Staff member for that area. The process will model that used by the Senior Staff. Key positions in the specific areas will be identified, and competency information and the need for professional development will be discussed. The Senior Staff member and supervisor will connect with other supervisors and Senior Staff members as necessary to increase awareness about an employee's career interests and exposure to available opportunities. Again, information will be brought back to the employee to aid in the Career Planning process.

• Professional Development Resource Guide

All competencies listed as General Performance Competencies are considered valuable to Purdue University Business Services and to the success of its employees. In utilizing this guide as a tool, it is important for the employee and the supervisor to keep the context of the position in mind. Developing those areas for which there is an organizational need, as well as an appropriate application, will help the individual and the department to succeed.

This resource is one of the many available for professional development and should complement opportunities identified by both supervisor and employee. Each employee of Purdue University Business Services should take responsibility for ongoing self-improvement.

The Professional Development Resource Guide is available to any Business Services employee for review and copies. The Guide is housed in the Personnel Services Library in Freehafer Hall and in the Sponsored Program Services Library in Hovde Hall.

Position Bands

All Business Services administrative/professional positions are classified into one of three position bands.

The band configuration is a balance between the value of the employee and the position. The three bands maintain a structure that gives staff a sense of career progress and organizational hierarchy.

The band slotting criteria further reflect balance. Position value is reflected in the scope of the job:

• Band A = University-wide
• Band B = School- or division-wide
• Band C = Department-wide

Meanwhile, the duties outlined in each band emphasize the employee’s skills and abilities:

• Band A =        Organizational management and leadership skills, such as direction-setting and planning
• Band B =        Policy formulation and strategic skills
• Band C =        Implementation and operational skills

• Band Slotting Criteria

The following criteria are used for slotting positions into the bands. The primary focus of the position will be the major factor in assigning a job to a band.

Band A

• Directly influences policy formulation, strategic planning, and organizational leadership on a University-wide basis or in a significant and unique area/unit
• Accountable for operations where lack of management could result in serious damage to the University

Examples: Vice President for Business Services, Director of Budget and Fiscal Planning, Assistant Comptroller - Costing and Risk Management

Band B

• Participates in policy, program, and/or service formulation for schools/divisions and major operational units
• Participates in strategic planning for schools/divisions and major operational units
• Subject matter expert to create solutions, strategies, and priorities across the organization
• Keeps abreast of legal requirements, parameters, or restrictions affecting policies, operations, and procedures. Analyzes impact and formulates strategies to address the issues

Examples: Human Resource Service Team Leaders, Business Manager - Veterinary Medicine

Band C

• Participates in policy interpretation for department/unit
• Participates in project planning for department/unit
• Implements new policies, programs, and services procedures
• Provides subject matter expertise to assist with ensuring operational success of programs, policies, and services
• Participates in training, learning, and development of initial job skills

Examples: Assistant Purchasing Agent, Tax Administrator

Personnel's Human Resource Service Team 6 will be responsible for slotting new or changed positions.

Rationale: The bands reflect the career level of the position, thereby giving staff a sense of career progress. They also reflect a flatter organization with more growth and developmental opportunities within positions. Staff are encouraged to consider new positions and responsibilities based on opportunities for learning and applying new skills and abilities. This will increase the value each staff member brings to the organization.

• Pay Levels Within The Bands

The bands have no minimum or maximum pay levels.

Rationale: Pay minimums and maximums emphasize the value of the individual instead of the perceived value of the position. Maximums eliminates situations where high-level performers receive below standard raises because they are already being paid above the mid-point of their position's salary grade.

 

Pay Delivery Techniques

Pay delivery is the process of administering rewards and recognition to employees. It includes performance-based pay, equity or market-based adjustments, and change-in-role pay adjustments.

• Performance-Based Pay

The primary basis of pay will be an individual’s performance. To determine an individual’s performance, managers will consider how well the employee demonstrates the following:

• Business Services values and Basic Principles
• Contribution to the team’s or organization’s success

Note:   Aligning an individual’s performance to support team or organization goals will be very important.

• Business Services competencies (i.e., communication, continuous improvement, customer focus, decision making, initiative)
• Development and application of skills for growth in current position and/or other positions
• Broadening the scope of one’s responsibility or influence

As an employee’s career progresses within Business Services, his or her compensation will be increasingly influenced by performance and contribution.

Determining performance-based pay

Determined by: Director recommends to Vice President

Form: Base pay adjustment

Timing: Annually effective July 1

Criteria:

• Feedback from the performance management system
• When applicable, comparative group ranking determined by manager group (see the following section of this report)
• Funding available

Rationale: Pay based on performance is the foundation of a high-performance organization.

Manager groups may determine comparative performance ranking of staff (optional)

Directors may ask a group of managers to assist in making performance-based pay decisions. Managers would use a comparative performance ranking process. This process has advantages when similar position responsibilities within an area make it reasonable to compare the performance of individual staff members. The advantages are:

• Comparative ranking by a group of managers emphasizes the cross-functionality of our organization and helps neutralize the effect of the varied rating styles of different managers (i.e., some managers are tougher "graders" than others)
• Immediate supervisors have direct involvement in determining the raise their staff receive
• Clustering staff into larger groups provides greater flexibility for distributing raises. The larger group is more likely than smaller, individual groups to have a broader distribution of staff within the various performance categories

The recommended steps in the comparative performance ranking process are:

12.    Determine which staff will be comparatively ranked. The supervisors of these staff should form the manager group.

13.    Each supervisor in the group must discuss performance feedback with affected employees before the manager group meets.

14.    The manager group meets and, through consensus, ranks all employees into performance categories. These categories are not pre-determined, but instead are developed through the discussions occurring during the meeting.

15.    After ranking employees into performance categories, the manager group then recommends staff merit increases to the appropriate Director.

• Equity Or Market-Based Adjustments

Determined by: Vice President upon recommendation of each Director

Form: Base pay adjustment

Timing: As needed

Criteria:

• Individual’s pay versus pay of others in similar positions
• Department or unit’s pay versus pay of other departments or units in Business Services or other University divisions
• Individual’s pay versus external market pressures

Rationale: Equity or market-based raises will be handled separately from merit increases to emphasize that annual merit increases are strictly based on performance.

• Change-In-Role Pay Adjustments

One of the plan objectives is to reward individuals for the value they bring to the organization through the application of their individual knowledge, skills, and abilities and to focus less on the value of their positions. Both performance-based (merit) pay and change-in-role adjustments are used to provide these rewards. Changes to position responsibilities occur for many different reasons and, therefore, every situation is unique. The guidelines provided below are intended to provide the framework from which employees and supervisors may discuss their specific circumstance.

All Business Services employees are experiencing many changes to the way they accomplish their job responsibilities. Better tools and processes change the way we work. The ability of individuals to add value for the organization through the utilization of new tools and implementation of procedural change in accomplishing their responsibilities is considered when making merit pay decisions.

In addition, some Business Services employees add value for the organization by assuming additional responsibilities, either as part of their current position or by accepting a new position. It is important to reward these employees apart from the merit process when these changes help meet organizational needs and goals, have a significant impact on the employee's responsibilities, and are expected to last six months or longer.

Determined by:       Manager or supervisor recommends to Director, who then recommends to Vice President

Form: Base pay adjustment or non-recurring adjustment

Timing: At time of role change

A change in role occurs when an employee transfers to a new position or has a significant change in the duties and/or responsibilities of his or her current position.

Criteria:

In determining whether a pay adjustment is warranted due to the change in role, the following three factors must be considered:

• Reason for the change
• Significance of the change
• Duration or permanency of the change

Determination will be a three-step process. If the Reason requirements (below) are satisfied, then the supervisor will determine if the Significance guideline is met. If the change in role qualifies under both Reason and Significance, then the Duration factor is considered to determine if a pay adjustment is appropriate.

Reason for change

Reason requirements are met when:

• The organization has a challenging business need for the employee’s particular skills and abilities
• New or additional responsibilities broaden the scope of responsibility and influence the employee has in helping the organization meet goals

Significance of change

To qualify as significant, the change must modify the employee’s normal work assignment by at least 20 percent.

Duration or permanency of change

If a change in role qualifies under both the Reason and Significance guidelines above, the duration of the change is the final factor to consider in deciding if a pay adjustment is warranted.

• Change lasting more than one year: Recurring pay adjustment should be made
• Change lasting 6 to 12 months: Non-recurring pay adjustment should be made
• Change lasting less than 6 months: Non-recurring pay adjustment is not required, but may be appropriate
• Change lasting for an undetermined time: Appropriate pay adjustments should be made if 6-month or 12-month milestones are reached.

Factors in determining amount of any adjustments

The manager or hiring supervisor will recommend the pay adjustment to the Director, who will then make recommendation to the Vice President. In addition to Reason, Significance, and Duration, adjustments will be based on available budget and internal equity.

Timing of pay adjustment

The Reason, Significance, and Duration guidelines may be satisfied through either an immediate change in the employee’s role or through a gradual change in role over time.

For immediate changes satisfying these guidelines:

The pay adjustment will be discussed with the employee before the change occurs. The pay adjustment will be effective when the change is effective.

For changes occurring over time:

The pay adjustment will be made when the cumulative change in role satisfies the Reason, Significance, and Duration guidelines. Although pay adjustments for gradual change should be made when the cumulative change first satisfies the guidelines, a review process will be used to provide further assurance that such change is considered.

Under this process, the position responsibilities of all administrative/professional positions will be reviewed at least once every three years. Supervisors, in consultation with Personnel Services, will review approximately one-third of the staff annually. If the review reveals a qualifying role change that has not been recognized, a pay adjustment should be made.

Rationale: Employing departments will evaluate each pay situation individually whenever a person takes a new position or accepts new duties and responsibilities. This approach focuses on the unique qualities an individual brings to the position. Less emphasis is placed on the position's level.

Analysis Of Internal And External Pay Data

External market data on pay will be collected if it is available. This data will be used to ensure that Business Services pay is competitive. The data will also be helpful for overall organizational planning. Since data is only available for a portion of Business Services jobs, market data is best used for general comparability and not to develop specific pay points for positions.

Internal pay equity will be a significant factor in determining pay, especially when deciding the starting salary for a person who accepts a new position.

• Senior Staff will use internal pay data to ensure that pay decisions are being made consistently across areas.

To check for merit raise equity across the Business Services organization, the Vice President and his Senior Staff will analyze internal salary data after proposed salaries are submitted. Prior to finalizing salaries, the Vice President and his staff will address any inequities uncovered.

Posting Vacant Positions

All administrative/professional vacancies will be communicated to Business Services staff using one of two methods:

Position vacancy/Invitation to apply ¾

This is the same method we currently use. The position is posted and interested Business Services staff apply.

FYI: Position vacancy/Candidates already identified ¾

There may be times when the organization has already identified a strong candidate to fill an opening or determined a suitable set of candidates to consider. This determination may be based on a person's established career development plan or on the unique skills, abilities and knowledge possessed by a person and needed in the job.

In such cases, Business Services staff will be informed of the vacancy and told that candidates for the position have already been identified. Applicants will not be sought actively; however, any staff interested in the position will be permitted to contact the hiring supervisor. This contact opportunity allows staff to informally express the desire to be considered for the current position or for similar positions that become available in the future.

General considerations for use of the FYI option for posting vacant positions

• To be used sparingly
• Is grounded in our career management and performance feedback activity
• Use will be discussed with the Senior Staff and approved by the Vice President for Business Services and Assistant Treasurer, in advance

Procedures for use of the FYI option for posting vacant positions:

• Department learns of impending position vacancy.
• A candidate or set of candidates from within Business Services is identified to fill the position. The candidate(s) will have been so identified based on a previously established career development plan or on the unique skills, abilities, and knowledge possessed by a person and needed in the job.

It will be necessary to discuss the impending vacancy with the Senior Staff (e.g., bi-weekly employment conference) to identify potential candidates outside of the department where the position resides.

• Upon notification/discussion with the Senior Staff, a written request to use the Second-Option for Posting, and a copy of the job description must be sent to the Vice President for Business Services for approval. The request should include the name of the identified candidate(s), and a statement detailing the unique qualifications possessed by the candidate(s). If the request is approved, a copy of the approval will be forwarded to Personnel Services Team 6, along with a copy of the job description. If an electronic version of the job description exists, that should be forwarded to Team 6 as well. If the request is denied, the position must be posted through Personnel Services per established procedure for vacancy posting (Personnel Services Form 2).
• Announcement to Business Services staff will be made through the electronic Business Office memorandum (BOM) distribution system. The BOM will originate from Team 6 after approval from the Vice President. The following wording will be used as a preamble to the position description associated with the BOM:

For Your Information: Candidate(s) have been identified for position vacancy

The hiring supervisor has identified a suitable candidate or set of candidates to fill the vacant position listed below. Although applicants are not being actively sought, you may contact the supervisor if you wish to express interest in this position or similar positions that may become available in the future. An informal contact, requiring no resume or interview, is appropriate.

• All Business Services staff who express interest, but are not hired for the position, will receive communication about why they were not selected for an interview and/or for the job itself. It will be the responsibility of the hiring department to maintain records documenting the hiring decision. To assist in staff development efforts, the hiring supervisor will also provide this information to the employee’s supervisor (unless the staff member has requested confidentiality). Spoken communication will be the preferred method.
• When a decision is made, the hiring supervisor will forward to Team 6 the name of the successful candidate. For tracking purposes, the names of other staff who expressed interest but were not hired should also be forwarded to Team 6. If more than one person is interviewed, the hiring supervisor should indicate that, in which case an Applicant Flow Register (AFR) would be generated and sent to the department. Once the AFR is returned, Team 6 will indicate in the Purdue Applicant Retrieval System (PARS) that the employee was considered, and the results of that consideration.

Monitor Effectiveness

Personnel Services Team 6 will monitor and review the effectiveness of the compensation and development plan and recommend changes to the plan as necessary. Team 6 will be responsible for gathering random feedback from staff through surveys and other means.

Rationale: The organization's continuous improvement and initiative goals require that we have an accurate picture of the effectiveness of the new plan and a means for improving it.

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