280. SSA (Special Salary Adjustments)

Introduction

Definitions

SSA

Any permanent change to the base pay or base salary range of a class (formerly called salary realignment or inequity adjustment).

Base Pay

The salary range for a class consisting of the minimum and maximum steps and the intermediate steps in between. For classes with a flat rate and no salary range, e.g., Stationary Engineer, base pay refers to the flat rate.

Base Salary Range

“Base Salary Range” is a term that applies only to alternate ranges of a deep class where each range is conceptually a separate class in a related progression. In such a class, the base salary range is the range the employee is currently in, because, for these purposes, each alternate range is its own class.

This term does not apply to alternate ranges that represent pay differentials, e.g., AR 40 or AR 142, in recognition of special skills, geographic location, etc.

Compaction

Compaction occurs when the distance between a supervisory or managerial class’s maximum salary and the maximum salary of its highest subordinate class (in other words, the “salary differential”) falls below 10%. If the distance between salaries is already less than 10%, compaction occurs whenever the difference is reduced. Compaction can also occur between two rank-and-file classes, particularly classes in a series.

Review Process (For Both Rank-and-File and Nonrepresented Pay Programs)

Departments are notified by the Department of Personnel Administration (DPA) as to the process and time frame for submitting SSA requests for formal pay programs.

In years when there are multiyear labor contracts, there may be a need to identify any interim pay issues that need to be addressed pending the next formal pay program. It is also not uncommon for multiyear labor contracts to contain economic re-opener clauses that may call for renegotiation of salaries prior to the expiration of the contract, which would then also necessitate a review of potential salary issues. Determine which situation applies during a given year by reviewing the applicable bargaining unit contract and consulting with Labor Relations staff.

In order for SSA requests made in between formal pay programs to be considered, they must be supported by a critical program need, and they may require the requesting department(s) to certify availability of departmental funding (use Form 137).

Standards for Review – SSA Analysis

Complete a Special Salary Adjustment Analysis and Special Salary Adjustment Transmittal for each requested SSA and impact analysis. The request must be supported by clearly documenting recruitment and retention problems.

Recruitment problems

• How many vacancies currently exist? To determine the vacancy rate, divide the number of vacant positions by the number of total budgeted positions.
• How long do positions remain vacant?
• What is the examination plan? For the last three years, provide data on how often the exam is given, what types of recruitment efforts were made, how many applicants applied, the number of candidates on certification list, etc.
• What is the vacancy rate over the last three years? Provide examination data for the time period.

Retention/turnover problems

• What is the turnover rate? To determine the turnover rate, divide the number of employees who have left during the last 12 months by the total number of employees in the class. Wherever possible, exclude separations or turnover due to retirements, promotions, or dismissals.

  Vacancy and/or turnover rates of 10% are generally normal and not a cause for concern unless the class is one that performs such a critical function that a vacancy or turnover rate of even 10% jeopardizes the maintenance of the critical function.

  Vacancy and/or turnover rates of 15 to 20% begin to be a problem and could be a cause for concern depending on the particular circumstances and the functions performed by the class.

• Compaction of salary differentials due to the impact of negotiated increases for rank-and-file classes.
• Salary inequities between classes of comparable responsibility and/or value.
• Change in the duties or concept of a class.
• Other management concerns, e.g., maintenance of labor peace, lack of upward mobility opportunities.
• Identify any special skills unique to the class that would justify paying it at a higher level than other similar classes.
• Identify other reasons besides salary that may be contributing to the recruitment and/or retention problem; for example:
  • lack of upward mobility
  • lack of educational or other incentives
  • poor morale, working conditions
• Show what the department has done to abate them; for example:
  • focused recruitment
  • improved examination planning
  • creation of upward mobility paths
  • flexible work hours
  • improved reimbursement for educational expenses
  • establishment of alternate ranges for acquisition of additional education and/or experience

Internal Salary Relationships (Horizontal and Vertical)

Determine whether there are comparable classes in State service that can be used for salary comparison purposes. If so, there may be less of a need to rely on outside salary comparisons with other public jurisdictions and/or private sector entities/firms. With the advent of collective bargaining and the breaking of many historical salary ties between classes due to differing salary increases being negotiated in different bargaining units, internal comparisons and/or vertical relationships within the bargaining unit should prevail and be the primary consideration in determining SSAs. Exclusive reliance on salary comparison with other State classes will usually not be meaningful unless accompanied by critical program need.

Impact Analysis

Normally, before an SSA is negotiated, an impact analysis showing how the proposed SSA for a rank-and-file class will affect nonrepresented classes. If this was not done (for instance, if an unanticipated SSA was negotiated), the analysis must be completed after negotiations are over.

Develop a salary relationship chart to show relationship of the class to related bargaining unit and non-represented classes both vertically and horizontally.

Vertical Relationships

Identify any vertical salary compaction and/or historical vertical salary relationships that would be broken.

Horizontal Relationships

Look horizontally to ensure there is no closely related class that should also be moved. Such an adjustment would require a compelling reason.

Identify any historical horizontal salary relationship that would be broken. Be particularly careful to identify any classes that are the Supervisory or Specialist parentheticals to the class proposed for the SSA to ensure that appropriate pay relationships between the classes are maintained.

Guidelines for Vertical Extension of SSAs Granted to Rank and File Classes

SSAs approved for rank-and-file classes should be extended vertically through the supervisory structure of each class series. SSAs should normally not be extended upward into management designated classes except where compaction exists and cannot be relieved below the lowest level management classes.

If there is room in the supervisory structure to avoid compaction with management classes without violating any basic principles of job evaluation, e.g., reducing a supervisory differential to less than 10%, the supervisory SSA should be approved. If compaction cannot be eliminated by modifying the supervisory structure, management classes below CEA II can receive the SSA, provided their resulting salary does not equal or exceed CEA II. If there is room to avoid compaction in the management structure, it should be done at the lowest possible level.

Classes should be in the direct and immediate vertical occupational hierarchy. Supervisory positions with multidisciplinary work teams that include classes receiving SSAs but are not in the direct hierarchy of such classes should not normally receive the same SSA. These situations need to be reviewed on a case-by-case basis.

External Salary Comparisons

Survey other representative public jurisdictions and private sector entities/firms that use the same class.

Make salary comparisons using weighted average salaries wherever possible. To determine a weighted average salary for a jurisdiction’s/firm’s class: multiply the actual individual salary rates paid by the number of employees actually paid those rates; add the products together and divide by the total number of employees in the jurisdiction’s/firm’s class.

Summary of Findings/Conclusions

• Carefully identify how much of an SSA is wanted and why.
• Provide information and data in support of the request (e.g., salary inequities with other specific classes, recruitment and/or retention problems, prevailing salaries paid by other employers in the same geographic area or statewide, if a statewide comparison is appropriate).
• Include how an adjustment will “fix” the problem.
• Discuss other alternatives that were considered (including pay differentials).
• Submit a draft class specification update that includes any alleged new or different duties being used to support the SSA request.

Final Recommendation (CCD Analyst)

Review the Salary History Index (in the CCD file room) to see if there have been any previous SSA and/or impact analyses that may be of assistance in completing your SSA and/or impact analysis. The index is divided into two separate lists—one for SSA studies/analyses and one for impact analyses. Each list contains previously studied classes by schematic code.

Departments should be contacted in any instance where the organizational relationships of related classes is uncertain or ambiguous. Do not guess. There may be alternative approaches and/or insight the departments can provide that may enhance the quality of the choices made.

Make an appropriate recommendation on the SSA request, including a discussion of:

• Pros and cons of granting or not granting the SSA.
• Impact if the recommendation is not followed.
• Any historical salary relationship, both vertical and horizontal, that would be broken for the first time as a result of either the approval or denial of the proposed SSA.

After the CCD analyst makes a recommendation based on the information and data provided, the SSA analysis and recommendation is routed to the Program Manager in CCD, the LRO, and the Executive Office for approval. If the recommendation is for approval of a rank-and-file class, the LRO will need to negotiate the SSA.

Preliminary Cost Estimates, if Necessary (CCD Analyst)

Final cost figures including the cost of salary-driven benefits such as the State’s retirement and social security contributions will be costed by the DPA Labor Relations Division. However, it may be appropriate under special circumstances for the department or CCD analyst to prepare a preliminary cost estimate.

1. Obtain the total number of Full-Time Equivalent (FTE) employees in the class (or if unavailable, the total number of employees in the class). This information can be obtained from the department(s) or from FOCUS reports that can be generated by CCD staff.
2. Multiply the proposed percentage of SSA by the maximum step of the (highest base) salary range (or flat rate) for the class.
3. Subtract the current maximum step of the (highest base) salary range (or flat rate) for the class from the proposed maximum step of the (highest base) salary range (or flat rate) for the class.
4. Multiply this difference by the number of FTEs or total number of employees in the class.
5. Multiply this product by 12 to arrive at a one-year cost of implementing the SSA. (Multiply the product by six if the proposed SSA would not go into effect until the last half of the fiscal year.)