Arkansas Department of Finance and Administration

1
Arkansas Department of Finance and
Administration

• MERIT INCREASE PAY SYSTEM PERFORMANCE
  EVALUATION
• Office of Personnel Management
• Classification and Compensation
• June 6, 2007

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Outline

• Introduction
• What is the Merit Increase Pay System
• Purpose of the Merit Increase Pay System
• History
• Job Series Promotion
• Section 1 Performance Form Selection
• Form Selection
• Form Components
• Rating Categories

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Outline (cont.)

• Section 2 Performance Evaluation
• Duty Area
• Core Expectation/Standard
• Result
• Comments

4
Outline (cont.)

• Section 3 Scoring Method
• Determine primary duty areas
• Score each duty area
• Overall performance evaluation rating
• Section 4 Frequently Asked Questions

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Purpose of Tutorial

• The purpose of this tutorial is to help you
• understand and use the new Merit Increase
• Pay System Based on Performance
• Evaluation.

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Merit Increase Pay System

• As a result of ACT 289 of 2007, the Office of
• Personnel Management developed this
• system to reward employees through annual
• salary percentage increases by means of
• individual employee performance.
• The Merit Increase Pay System is the new
• employee performance evaluation system
• that replaces the CLIP program.

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Job Series Promotion

• Job Series promotions are promotions
• within a group of similar job classifications
• with increasing levels of knowledge,
• education, skills, abilities, and with a change
• in grade and salary.
• Example

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Job Series Promotion Eligibility

• An employee must meet the following criteria to
  be
• eligible for a job series promotion
• Meet established minimum qualifications of the
  higher level classification of the job series
• Have a least an overall satisfactory performance
  evaluation rating
• Meet any agency - specific criteria
• Have not received a written disciplinary
  reprimand during the rating period
• Promotions and new hires within a job series
  should
• start at an entry level classification of the job
  series
• to allow for employee progression within the pay
• plan itself.

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SECTION ONE

• Performance Selection

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Form Selection

• The Office of Personnel Management has
• developed four forms that will be used
• when evaluating employee performance.
• Executive/Director/Deputy Director
• Senior Management
• Employee
• Addendum

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Form Components

• Each of these forms generally consist of the
• following fields
• Employee name, personnel number, agency
• name, position title, class code, position
• number, rater name, rater title, and rater
  telephone number
• Duty area
• Core Expectation/Standard
• Results
• Comments
• Overall rating
• Appropriate signatures

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Rating Categories

• The Merit Increase Pay System will utilize the
  following rating categories in determining the
  overall score of employee performance
• Exceeds Standards
• Above Average
• Satisfactory
• Unsatisfactory

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SECTION TWO

• Performance Evaluation

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Performance Evaluation

• The performance evaluation process itself
• has not changed, only the forms have.
• Agencies, boards, and commissions not using
• the official Office of Personnel Management
• forms for performance evaluation must have
• their forms approved by OPM.

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Duty Area

• A collection of tasks that together form an
• essential element of the job.
• Job Analysis
• Review Job Description
• List job duties
• Grouping common duties
• Naming collective common job duties

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Duty Area Example
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Core Performance Expectation

• A criterion used to measure executive and
• senior management employee performance.
• Essential job functions have been identified
• and are listed on the performance evaluation
• form. However, if necessary, you may add
• additional core performance expectations on
• the addendum form.

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Standard

• A statement used to measure employee performance
• that may be a quantity or quality of output
  produced,
• a model of operation, or a degree of progress
  toward a
• goal.
• Develop criterion (statement) to measure
  employee performance
• Include what is to be done
• Include level of performance employee is expected
  to achieve

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Standard Example

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Results

• The outcome of the performance based on
• the standard of the job.
• Example Ms. Smith has completed monthly
• reports and filing within established time-
• frames with less than five errors. She has
• satisfactorily met this standard.

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Comments

• Comments by the employee, rater and/or
• reviewing official concerning the result of a
• specific core performance expectation/
• standard.
• Example Ms. Smith could benefit more in
• her filing skills by attending an advanced
• training for office filing systems.

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SECTION THREE

• Scoring Method

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Scoring

• The overall rating category is determined at the
• discretion of the rating official based on the
• relative importance of each core performance
• expectation/standard as determined by the
• rater.
• For supervisory personnel to be eligible for a
• merit increase, they must certify that all
• subordinate performance evaluations have been
• completed and forwarded to the reviewing
  official.

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Scoring (cont.)

• Any written disciplinary reprimand will
• preclude the award of a merit increase or a
• job series promotion for the current rating
• period.
• An unsatisfactory rating in any core
• performance expectation standard/precludes
• awarding an Exceeds Standard or Above
• Average overall rating.

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Scoring (cont.)
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SECTION FOUR

• Frequently Asked Questions

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Frequently Asked Questions Merit Increase Pay
Processing

• Question Who is responsible for entering
• Merit Increase Pay information into AASIS?
• Answer The Human Resource and Payroll
• sections of your agency will be responsible
• for entering performance evaluation data for
• Merit Pay Increase eligibility.

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Frequently Asked Questions Merit Increase Pay
Percentages

• Question Are award percentages at the
• discretion of the agency?
• Answer No, the Merit Increase Pay percentages
• are as follows

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Frequently Asked Questions Part-Time Employees

• Question When counting hours toward Merit
• Increase Pay eligibility for part-time employees
  in a
• regular position, what is the start date of
  hourly
• accumulation?
• Answer The start date of hourly accumulation
  for
• part-time employees is October 1, 2006 or date of
• hire if hired after October 1, 2006. It is the
  agencys
• responsibility to track the number of hours.

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Frequently Asked Questions Part-Time Employees
(cont.)

• Question How is the Merit Increase Pay
• eligibility date determined for a part-time
• employee?
• Answer The employee must reach 2080
• hours to be eligible. The dates will vary
• based on hourly accumulation. It is the
• agencys responsibility to track the number
• of hours.

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Frequently Asked Questions Unclassified Employees

• Question How will unclassified employees
  receive
• their Merit Increase Pay?
• Answer Unclassified employees will receive their
• Merit Increase Pay through a lump-sum payment,
• even if the employee has not reached the line
  item
• maximum for the job title. This payment will be
• considered salary for the purposes of retirement
• eligibility.

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Frequently Asked Questions Classified Employees

• Question If an employee who has been in
• continuous full-time employment for more than
• twelve months is reclassed on 07-01-07, when are
• they eligible for their Merit Increase Pay?
• Answer The employee is eligible on October 1,
  2007.

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Frequently Asked Questions Classified Employees

• Question If an employee who has been in
• continuous full-time employment for more than
• twelve months is promoted on 06-15-07, when
• are they eligible for their Merit Increase Pay?
• Answer For the first year of implementation
  only,
• the employee is eligible on October 1, 2007.
• Thereafter, the six month rule applies.

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Frequently Asked Questions Performance
Evaluation Appeals

• Question What is the employees appeal
• process when disagreeing with a performance
• evaluation?
• Answer The performance evaluation appeal
• process that you currently have in place
• may be used with this new system.

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Contact Information

• DFA Office of Personnel Management
• 1509 W. 7th , 2nd Floor, Little Rock, AR
• P. O. Box 3278 Little Rock, AR 72203-3278
• [phone]

http//www.arkansas.gov/dfa/personnelmgmt/opminde
x.html