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MO"NTANASTATELIBRARY" 36^ £^ Ill 3 0864 0014 8962 7 KOflTIER^ Montana's Competency Project Progress Report May 1998 Volume I State Personnel Division new Pay project sets focus on successful performance The State of Montana is building a new pay and human resource system to strengthen government services for taxpayers and career opportunities for state employees. The new system will be phased in gradually over a number of years. It will offer significant changes for state agencies, state employees, and ultimately state taxpayers. Thiseffort, known as Montana's Human Resource (HR) Competency Project, isan initiative of Gov. Marc Racicot's administration and was approved by the 1997 Legislature. The HR Competency Project strives to help state agencies remain responsive in fast- changing times by adding new flexibility to management tools. These tools include job classification and pay, employee recruitmentand selection, training, and performance appraisal. (ContinuedonPage7) Gov. Racicot encourages & involvement cooperation By Gov. Marc Racicot As a co-worker of yours in state government for more than 20 years now, admire the efforts that state employees put forth each day on I behalf of each other and the public we serve. also know that state I government could do a better job of supporting employees in some of the efforts that matter most. The good news of Montana's Human Resource Competency Project is that we're charting a better course. We're aiming to improve the way we train, evaluate and pay state employees with a new focus on success. Fortoo long, stategovernment's paysystem hasfailed to recognize or reward employees for valuable competencies. When say competencies, I'm talking about a combination of I knowledge, skills, abilities and behaviors that lead to success in a job. Customer service, teamwork ~ whatever the valued competencies for a particularjob may be ~ it's time we start trying some new approaches. That's why our administration proposed an alternative pay and classification system, and the Legislature agreed. We don't have all the answers yet, but the Human Resource Competency Project is where and how we'll find them. It's about developing a pay system that keeps up with the times and keeps up with you. In short, it's about three simple ideas: (1) opportunity; (2) improvement and involvement. (3) By "opportunity," mean we're striving to provide bettercareeroptions and potential for I employees to grow in their jobs. A pay system that promotes initiative and success can offer new kinds ofeconomic incentives and rewards. By "improvement," simply mean we're looking for better ways of training, evaluating I and paying employees. There will be plenty of adjusting and fine-tuning as we go along. If indeed we all want a better pay system, then management and employees must be partners in this endeavor. That's where active employee "involvement" comes in. We're counting on you and our co-workers to help us build a successful system together. We're confident these ideas will provide better alternatives and a road map toward success. What competencies? are Examples ofcompetencies include teamwork, communication and initiative. While some competencies may be acquired through specific training, more often they represent certain skills and behaviors. In the everyday work environment, employees are put in situations where it is important to succeed and where success depends on those skills and behaviors. Competencies can play a key role in employee Competencies are sets of recruitment, selection, training, performance evaluation, promotion and pay. Successful competency-based systems knowledge, skills, abilities and clearly identifyand define competenciesthatare important behaviors that contribute for ajob. In a sense, they provide employees with a road to success in ajob. map toward success in a job, improving opportunities for They are measurable and career growth. Competencies must be measurable and observable. Competencies may observable. They need to be identified and developed vary fordifferentjobs. carefullywith employee involvement. Good communication between employees and managers, including frequent In all cases, however, the required coaching and feedback, is necessary for success. competencies ofajob are linked to the agency's mission andgoals. Below are some sample competency definitions for different jobs within the Montana Department of Corrections. They arejust a small piece ofa broader performance management program developed by the Department of Corrections with a great deal of employee involvement. Employee-management communicationswill link mutuallyestablished goalsforemployees and teamsto the department's mission and objectives. The information here does not even begin to explain the full scope and detail of the Corrections Performance Management Program, but is provided simply to show examples of some competency definitions: 1. Communication — effectively listen, 2. Leadersliip and Teamwork --provide speak and write. guidance, make decisions, and cooperate or elicit Level A. Communicates information in a way cooperation to accomplish tasks. that is readily understandable. Demonstrates LevelA. Understandsthe needforand supports courtesy and respect to the customer, preserves the decisions of the leaders within the agency. accuracy and confidentiality of information. Works cooperatively and contributes to the unit by Level B. Seeks participation from others by supporting and encouraging team members. actively listening. Open to ideas and suggestions Supports consensus decision by unit. from others. Expresses ideas and concepts Level B. Recognizes value ofteam approaches correctly and professionally, orally and in writing. and collective knowledge. Supports collaborative Uses technology support well. problemsolving. Contributesown opinionsin positive Level C. Effectively assesses needs of others way. Seeks feedback and participation from others. through questioning and listening. Uses all Executes decisively once decisions are made. available meanstocommunicate inwaysthat meet Level C. Builds effective teams dedicated to oranticipatethe needsofothers. Usestechnology agencygoals. Workseffectivelyinteamenvironment. to generate innovative and effective Responds positively to coaching and seeks communication with constituents. developmentofown leadershipandteamworkskills. Level D. Representsagencyto publicand other Level D. Leads by example with integrity and agencies within scope of authority and position. confidence. Uses coaching and mentoring Communicates the highest levels of complex techniques to encourage staff leadership and concepts effectively in any setting. Guides staffin development. Managessubordinate performance. preparation of communication about internal Encourages team opportunities to achieve agency programs to public or other agencies. goals in a rewarding and challenging environment. Level E. Represents agency clearly and Level E. Establishes and models highest level eafnfdectpivreelsysi.n anGyupiudbeliscvsetanfufeitnoidnecvluedleolpemgiesnlattuorfe leadershipexampleforagency. Createsatmosphere programsto mosteffectivelycommunicate agency ofintegrityandcollaborationtowardachievingagency mission. Createsopportunitiesforstaffdevelopment. programs and needs. Guides agency to accomplish goals. Take The Lead Pilot Projects state Personnel Division staff - the Competency Currently, there are six pilot projects under way: Project Team - are currently in the next phase of Montana Chemical Dependency Center developing the competency system: pilot projects. Treatment Specialists, Department of Public The purpose of these pilot projects is to test the Health and Human Services approaches and methods developed in conjunction withtheadvisory panelsandtocontinuedevelopment Brand Inspectors, Department of Livestock by testing new approaches, methods and tools to Information Technology, MSU, Office ofPublic prepare recommendations for the 1999 legislature. Instruction, Department of Transportation, and Department ofAdministration The pilot projects chosen represent a variety of occupations (fromthecareerbandsproposedaspart Law Enforcement/Senate Bill 269, primary oftheframeworkforthenewsystem), acrosssection focus being on the DepartmentofJustice, butalso of agencies and positions. Different approaches to including an interagency committee comprised of competency data collection, competency model representatives from the Department of development, pay scenarios and performance Transportation, University System, Department of management are being tested in each pilot to aid in Livestocl<, DepartmentofCorrections, Department system development and to customize the pilot of Fish, Wildlife and Parks projects to agency needs. Managers, Department of Commerce Health Care FacilitySurveyors, Departmentof Public Health and Human Services Advisory Panels Aid Project Development Advisorypanelscomprisedofupperlevel managersand personnel officersfromvariousstateagencies have been actively involved in the Competency Project and have provided valuable input into system development. These panels provided five Research and Design (R&D)Teams with an analysis ofhuman resource tools currently being used in the agencies - i.e. what works and what does not. The panels also provided constructive feedback about what tools, structure, and aids they would like to see in the new system. SPD employees staffed the five R&D Teams covering the areas of Compensation, Competency Development, Performance Management, Staffing and Training and Development. The R&D teams utilized advisory panel feedback to develop products, tools and methods that met the needs and addressed the concerns of the advisory panels. The products and recommendations developed as a result of this approach are being tested and further developed in pilot projects currently underway. Compare & Contrast & Current system future system Current: Positions assigned to one of25 grades using the seven-factor Benchmark Factoring System, can be time consuming. A Pay decisions are based on job descriptions with no regard for how a person performs in a job. A Methods of pay, classification, evaluation, training and hiring aren't always linked to agencies' or employees' vision ofsuccessful performance. CURRENT 100% of a position's entry pay rate 1 Grades Note: Longevity is a separate component - you receive 1.5% of your base pay rate for every 5 years of uninterrupted service. Currently, classification of a position places the job in a grade. The pay is then set based on the entry level for that grade. Compare & Contrast Current system & future system Future: Positions assigned to one of nine grades using one factor, less classification hassle and a wider pay range for career growth. Pay decisions are based onjob descriptions, but also provide a means to reward individual employee efforts in the job. A Employees and agencies align human resource systems with goals and strategies for successful public service, to the benefit of agencies, employees and taxpayers. FUTURE 100% of an employee's pay ( ^ JobContent Competency MarketPay Pay Competencypay Marketsalary BANDS will be a major data iscompiled, componentof analyzed and movementwithin maintained by a payband. the State Competencypay Personnel adjustmentswill Division. Inthe be incremental in future, market nature (small adjustmentscan percentageas be made by comparedtothe occupation current8-9% and/orby raisestypicalfora position, and A piece of paywill still be classification mayconsider determined usingjob upgrade) and specific content. Instead of seven representa useful recruitmentand classificationfactors, we tool formanagers retention issues. will have onefactor, in providing Managers will comprised ofthe current employeeswith haveflexibilityto Complexity and incentivefor assign greater Knowledge, Skillsand increased paytospecific Abilities factors. competency jobs based on growth. marketvalue. & Agencies employees Questions use competencies .n^ f/f & Answers successfully Measuring skills and competencies is not new to Q. When will the changes described above state government. In fact, it's fairly common. For start to affect employee pay? years, state agencies have used similar behavioral- A. Agencies and employees in pilot projects based measurements to hire and promote between now and December 1998 will employees. Someagencieshave incorporatedthese identify and grow familiar with the concepts into their performance management competencies necessary for individual systems. Those who have integrated behavioral- employee and agency success. The pilot based measurements with traditional skill- and projectswill build systemsfordeveloping and knowledge-based measurements find them to be measuring competenciesthatcould allowfor good indicators of successful performance. competency-based pay in some locations as Here are some examples of how state agencies early as July 1999. already use competencies: Job interview questions that focus on conflict Q. How are appropriate competencies determined? resolution, team work or customer service; Job interview questions that ask about the A. Competencies are sets ofknowledge, skills, abilities and behaviors that contribute to applicant's previous experience with leadership or prioritizing goals under pressure; success in a job. Desirable competencies are those that best support an agency's Job reference checks that ask about the mission and business needs in delivering applicant's ability to positively influence co- effective publicservices. Competencies are workers and understand internal & external determined in a careful and collaborative forces on the organization; process involving agencypersonnel atmany Portions ofperformanceappraisals thatmeasure levels. behaviors and actions above and beyond traditional minimum knowledge and skills; Who decides whetheran employee is, or A Performanceappraisalsthatdealwith itemssuch is not, demonstrating necessary as creative problems solving, leadership, competencies? communication skills, planning skills, etc.; Competency-based systems use frequent A Employeetraining opportunitiesthataren'tdriven feedback between managers and by traditional minimum knowledge factors, but employees for clear communication about rather, by competencies such as conflict work expectations. Options for measuring and assessing competencies range from resolution, effective communication, team work, traditional supervisoryevaluations, to newer etc. "multi-rater" approaches, which include Toa largedegree, the newfocus on competencies feedback from employees' peers and asfactors in paydecisions representsa continuation customers. orextension ofconceptsthatagencies have applied successfully in various aspects ofhuman resources for quite some time. Pay remains the last aspect of Q. Willstateemployeesgetlargerpayraises human resources unattached to behavioral-based underthe new system? measurements. A goal of the HR Competency A. Thetotal amountofmoneyavailableforstate Project is to complete the picture by drawing a link employee wages will remain a decision between pay and the type of measurements that reached through executive and legislative manystateagenciesalready useandvalue invarious budgeting. The newsystem doesn't promise personnel decisions. larger raises for all employees, but does provide a means for recognizing employee work contributions as a factor in individual pay decisions. (Payprojectsets newfocus . . . Continuedfrom Cover) knowledge, skills, abilities and behaviors in their jobs. The blending of competency-based factors The project, coordinated by the Department of into the pay system and other human resource Andemeidnsistfroartisoonm,eisagoennctiraecsk atnodmeoecctupiamtmieodnisatien systems can promote employee career various "pilot projects." The Legislature directed development and high-quality service to the the executive branch to test the effectiveness of taxpaying public. proposed changes in the pilot projects and to Broadbanding submit a report to lawmakers in 1999. The HR Competency Project is building the The other key concept of the HR Competency alternative classification and pay system based on Project is broadbanding - a shifttoward fewer pay two concepts that promote better service to the levels with broader pay ranges for each level. public and better career opportunities for state employees. These concepts are competencies State agencies express a need for greater and broadbanding. emphasis on job market comparisons in pay decisions, with less time, hassle, paper work and Competencies otheradministrative burden spenton classification decisions. Competencies are sets of knowledge, skills, abilities and The new approach will streamline classification decisions by reducing the seven-factor method of behaviors that contribute to success in a job. Examples feavcatlourat-inag jcoobmsbifnoartciloanssioffictahteiocnurpruernptocsoemspltoexointey includecommunication, customer j/' service, teamwork, flexibility - a and knowledge factors. blend of behavioral-based factors with traditional Broadbanding will consolidate state knowledge-based factors that are important to a government's 25-grade pay system into fewer particularjob. grades or levels. The 25 pay grades could boil down to nine "levels," each having broader State agencies need several types of flexibility minimum-to-maximum ranges than the current in state government's pay system, including the grades. abilityto link payto employeejob performance and competencies. A broadband framework and simplified classification system, combined with new pay Agencies report that the traditional pay system options for market comparisons, competencies, doesn't provide incentives for career growth or and working conditions, can generate betterways rewardsforexcellent performance. Managers say of recruiting, retaining and rewarding state their agencies could better serve the public if employees. human resource tools such as pay, evaluation, training and hiring were linked to employee Broadbanding also providesgreateropportunity competenciesthatsupporteach agency's mission for lateral growth or "career ladders," benefiting and business strategies. employees and customers ofstate government. A Agreeing with executive branch leadership, career ladder is a tool by which employees lawmakers directed the Department of advance in pay when they gain competencies necessary to Administration to develop an alternative system takeon higher-level duties that identifies competencies "necessary for the and responsibilities state and its separate departments and agencies serving the public. to provide service excellence to Montana's citizens." The legislation requires that employee State agencies currently recruitment, selection, evaluation, and usecareerladdersasaneffectivewayofmaintaining compensation be based, at least in part, on the high-quality government services and promoting demonstration of necessary skills and employee career growth. In many situations, competencies. however, agencies and employees are not able to usethistool becauseofinflexibilityandadministrative The current classification and pay system is position-based and longevity-based. Pay is buArdbernoiandtbhaencdurpraenytsctlrauscstiufirceatwioounlsdysptreomv.ide more determined by a position description and by an employee's length of service in a job. The HR ermopolmoyfoerecaanrdeearggernocwythsuwcictehsisn oanjbobe,haplfroomfosttiantge Competency Project shifts emphasis toward government's customers — the taxpayers of people-based criteria, such as employees' Montana. observable and measurable demonstration of For more information: For more information about Montana's Human Resource Competency Project, please contact your agency's Personnel or Human Resource Office, or call the State Personnel Division at 444-3871. Staff of the State Personnel Division are available to provide updates and information at any time. Please call if you have any questions, any special concerns, or if your agency would like to arrange a presentation or question-and-answer session about the HR Competency Project. Please stay tuned for updates. Future newsletters will provide more information and will attempt to answer questions that readers submit to the State Personnel Division. If you prefer to submit questions by mail rather than by telephone, the address State Personnel Division, ATTENTION: Newsletter, is: PO BOy 200127, HELENA MT 59620-0127. Alternative Accessible formats of this document will be provided upon request. Persons who need an alternative format of this document should contact State Personnel Division, Box 200127, Helena, Montana 59620-0127; telephone: (406) 444-3871. For those with a TDD, relay service is available by dialing 1-800-253-4091. You may also send e-mail to [email protected] or access the State Personnel Division website: http://www.mt.gov/doa/SPD/spdmain.htm. 5.000copiesofthispublicdocumentwerepublishedatanestimated costof24epercopy,foratotalcostof$1,20000,whichincludes $1,200,00forpnnlingand$.00(ordistnbution.