Minutes from the Health System Academic Research Employee Council meeting on April 20, 2000

Attendance: Jane Adair, June Wade, Charlene Williams, Eleanore Wade, Sherry Morris, Pat Harlow, Sue Pearce, Patti Slohoda, David Smith, Pat Williams, Sharon Heyka, Jean Snoddy, Daweslyn Butler, Mike Wilson, Jill Tatum, Leigh Ann Bush, Kelly Bell, Gigi Herold, Jim Stork, Mary-Leigh Thacker, Lynn McCutcheon, Stephanie Bingler, Gina Steppe

Jim Kennan was the first to address the council. UVA has recently been named the eighth most wired university in the country. The Board of Visitors heath affairs committee met on April 13th. The financial report shows that the hospital is running with a 3.8% bottom line (the goal is 4%). They are certain that the goal will be met before the end of the fiscal year. Dr. Cantrell is concerned about the nursing shortage that is being felt across the country. He is hoping that the new Malcolm W. Cole child care facility within walking distance of the medical center which is opening in late May/early June will be a help. The center has room for 170 kids, facilities for sick kids, and plans for summer programs for school age children. The US News and World Report recently ranked the school of medicine 30th in the nation and the school of nursing as 21st (up from 35th in 1995). George Beller from the cardiovascular department was recently named president of the American College of Cardiology. The 4th year medical students recently matched for their residencies. 66% of the medical students received their first choice and 88% received one of their top three choices. The Health Services foundation recently hired Mark Detman as their new director. Mr. Kennan finally addressed a concern of the council by assuring us that when the clinics become hospital based no one will lose there benefits. There are still a few options in negotiation.

Tom Gausvik was the next to address the council. He was here to present details on the new compensation plan which will become effective September 25th, 2000. They are doing there best to communicate the plan to the entire state over the next few months. The new plan only involves agency 207 employees. Everyone is encouraged to go to one of the information sessions being held to get information on the plan. The sessions will consist of 25-50 employees so that individual questions can be answered. Most of the sessions for the school of Medicine and the School of Nursing take place from June 19th-July 7th (see web page for the actual schedule). Management training is set to begin in June. The management training is one of the most important aspects of the plan. The three issues Mr. Gausvik is emphasizing in order to successfully implement the new plan are trust, consistency and fairness. Those with budget authority within each department are going to be able to make more decisions about employee pay. They must be properly trained if the plan is going to live up to its potential. We are moving from a classification based system where the main way to get a raise was either reallocation or job transfer into a plan where an employee can negotiate a raise in their current position. The money set aside for raises can be spread out to more people because raises do not have to occur at set increments. In the new plan, a manager's request for a raise for an employee will be handled on a quarterly basis. Human resources will look at the policy and advise the managers how to best act based on the years of experience of employee, the additional responsibilities taken on by the employee, and the market value of the position. In this way human resources will try and bring consistency along with flexibility to the plan. There is no new money in the system because of this plan. Departments must be smart about how they manage the amount of money they have for increases. Every year, employees will still receive the performance adjustment as in years past. In order to get a raise in the new system, there is no need for a reallocation into a new job category. As of September 25 all the old information of our grade number will be gone and we will be assigned to a pay band with a role title. Employees can keep their old job title for the department use but human resources will only recognize the role title.

The compensation plan has five main components: 1) Pay Structure, 2) Pay Practice, 3) Performance Management, 4) Market data and 5) Career Growth. Pay Structure: In the new system there will be fewer pay bands with more flexibility. Currently there are 23 pay grades, soon there will be 8 pay bands. When the across the board increase occurs on 11/25/00, the pay bands will increase another 3.25% along with the overall salary increase. The current pay bands were analyzed and an attempt was made to group job classes with similar content and qualifications into pay bands. A 10% increase was made to each band in order to add more flexibility. So any employee who has been at the top of their pay grade is no longer limited by this cap. The grades were divided as follows: Band 1 Grade 1-3: Unskilled jobs Band 2 Grade 4&5: Semi-skilled jobs Band 3 Grade 6-8: Skilled job Band 4 Grade 9-11: Learned professions (BA usually) Band 5 Grade 12-14: Technical, etc Band 6 Grade 15-17: Professional, managerial Band 7 Grade 18-20 Band 8 Grade 21-23 Band 9 over 23 (no current range) 60 % of all employees will be in band 3 & 4. Pay Practice: For new employees salaries will be able to be negotiated from 0-15% instead of 10% under the old system. Employee initiated salary adjustments: If you get an employee initiated promotion, your salary can increase anywhere between 0-15%, but it must go up to at least the minimum of the next pay band. In a competitive lateral transfer, the parties can negotiate an increase of up to 15%. There is the possibility of a voluntary demotion of up to 10% if the employee desires. Management initiated salary adjustments: If management adds duties to the job description, the employee can get up to a 15% increase. Job duties can also be added on a temporary basis with an end date (usually less than 1 year) and the salary increase will extend for that period of time. Reallocation (now called role changes) increases can be anywhere from 0-10% (currently fixed at 10%). A new option of the plan is the in-band adjustment option where a pay increase (0-10%) can be received for a change in duties, new training/classes, retention, or internal management. The in-band adjustment should become the most common type of increase. An employee is limited to a total increase of 10% per fiscal year. It is possible to get a 10% increase in June and another 10% increase in July (these dates fall in 2 different fiscal years). It must be remembered that all of these increases are limited by the money available to the department. An attempt is being made to create equality among departments so that large increases are not given in one department which would be impossible in another department. The details of how to achieve this are still under review. Performance Management: The performance plan will begin March 1, 2001 for a truncated year that will be reflected in salary adjustments 11/25/01. The salary increase for the 2000 year is already set by the state budget and it will not be until next year that an increase will occur under the new plan. The new plan gives the department new funding flexibility. The percent increase can be consistent among everyone in a department who gets a certain rating because the increase is not restrained by the step system. The new performance plan will have three levels: extraordinary contributor, contributor, and below contributor. The majority of people will fall into the contributor level (an estimated 85%). The extraordinary contributor will include the top 15% of employees. The ranking of extraordinary must be accompanied by documentation during the year. The ranking of below contributor also must be accompanied by documentation throughout the year. The employee must be informed when he/she is performing at a below contributor level. It should not be assumed that because an extraordinary rating is granted one year that it will be granted the next. The options for distributing the increase money can vary between a certain percent increase for contributor, a higher increase for extraordinary contributor along with a one time cash bonus. The departments will have more flexibility on how to distribute the money that they have. Once again, managerial training will become a key to this part of the plan functioning correctly. Market Data: The plan is geared to move the state into a more market based system for your specific locality. The system will attempt to ensure that fair pay is given. This will eventually extend to looking at the benefits as well. Tom Gausvik then asked all of the council members to give input on what they liked about the plan and what concerns they still had. A major concern expressed by nearly every council member involved management training. The plan seems fair but only if every manager is fully versed on how the plan functions. It is very difficult to impress upon those who aren't classified staff (who oversee many classified employees) the importance of attending the training. Tom Gausvik assured all of us that some form of training is mandatory for all supervisors, but the training can take place in many forms. It could take place in a classroom setting but it also could involve the manager saying that they have reviewed the material.

Bill Vining quickly addressed the council. He handed out materials for Give Air a Break Day which is occurring on May 10, 2000. Please encourage all to participate.

No new or old business was discussed. The minutes were approved and the meeting was adjourned.