General Circular No. 001327

To: Heads of State Agencies and Human Resource Directors

Subject: Pay Rules Review Project--phase Two Report

Issue Date: October 8, 1998

At its September 2, 1998 meeting The Civil Service Commission moved that department staff go forward with the recommendations below. The Pay Rules Review Project now enters Phase Three, the writing of pay rules, design of a comprehensive market analysis and associated activities.

The Pay Rules Review Project was instituted to create solutions to make the State's pay system more effective and responsive to agency needs. Phase 1 of the project was an assessment of agency issues and needs with respect to the State's pay rules and procedures. This was completed in May of 1998.

Phase 2 of the project was to select those compensation options that best solve the issues identified in the Phase 1 Assessment, within any resource and culture constraints. After several meetings, including discussions with the Oversight and Steering Committees, the Governors Office, and various subcommittees, as well as within the Department of Civil Service, Classification and Pay Division, the following five compensation options were recommended to the Civil Service Commission for design and implementation. The Civil Service Commission moved, at their September meeting, that the department move forward with these recommendations.

I. Market Analysis

Conduct a thorough market analysis to identify the State's competitive position, to establish market-based pay structures, and to provide information for better pay decisions.

II. Dual Career Ladders

Establish dual career ladders in selected occupational groups for non-supervisory/management employees to provide career advancement opportunities and competitive pay levels for such employees.

III. Training

Expand training and technical assistance to Human Resource Directors, agency management, and employees concerning pay rules and pay decisions.

IV. Pay Rules

Revise certain Pay Rules to allow the State to:

a. Provide flexibility in promotional raises, from the current           constant 7% to a range of 5% to 15%.

b. Provide flexibility in granting salary adjustments of up to           5% in either base pay or lump sum.

c. Provide flexibility to grant a lump sum payment to employees           at the maximum of their pay range.

d. Provide flexibility in hiring as follows:

1. Provide hiring up to the first quartile for all hires.

2. Provide hiring up to the second quartile (midpoint) for

jobs in shortage categories.

V. Continuous Improvement

Continue formal monitoring and continuous improvement process for two current programs:

a. Rewards and Recognition (Civil Service Rule 6.16.1), a           program that allows agencies to reward and recognize          significant achievements.

b. Performance Appraisal, a cyclical process designed to           improve two-way communication and feedback between employees          and supervisors. This process is designed to: help employees           and supervisors set performance expectations and improve           performance, identify important performance factors for each           employees job, encourage employees and supervisors to talk          about work performance and document and measure performance           of each individual employee.

Detailed copies of our Phase 1 and 2 reports are available on our website @ www.dscs.state.la.us.

If you have comments or questions, please contact either Glenn Balentine or Lisa Lusk at 225-342-8083 or our Fax at 225-342-6067.

Sincerely,

Allen H. Reynolds

Director