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<<Agency>>
Interim Compensation Plan
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<<Agency>>
Interim Compensation Plan
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Executive Summary
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In accordance with the Guidelines for Interim Compensation Strategies, the following
plan documents the <<Agency>>’s proposal for administering four strategies related
to compensation for the period of January 31, 2013 to June 30, 2013. The interim
compensation strategies to be implemented by the agency include:
 Conditional Retention Pay
 Hiring Incentives
 Spot Incentives
 Meritorious Service Leave
The Agency Director will determine total dollar allocation available to each division for
each strategy. The total combined cost of the Interim Compensation Strategies
included in this plan shall not exceed $________, and is estimated to be ____% of
the agency’s personnel services base.
Funding is available within current <<Agency>> appropriations and will not create
any future budget obligations.
The agency plan will be administered without regard to political affiliation, race, color,
national origin, sex, age, disability, religion, or any other characteristic protected by
law.
Eligibility
Note: Some of the eligibility requirements in the example that follows are more
restrictive than required by the compensation guidelines. When creating a plan,
an agency may wish to consider the eligibility requirements that are prudent and
make sense for the agency’s unique situation.
Employees eligible to participate in the <<Agency>> Interim Compensation Strategy
plan will be consistent with statewide guidelines regarding eligibility. Pursuant to the
Interim Compensation Guidelines, covered employees are not eligible to receive
interim compensation awards. In addition, the following employee groups are not
eligible for any of the compensation strategies listed above: board or commission
members, employees hired into pool positions, and interns. Employees must be
employed by the <<Agency>> for a minimum of six months to receive an incentive.
Conditional Retention Pay
The purpose of this compensation strategy is to address the retention of critical or
key employees until such time as a full MAP review has been completed. This
supplement is intended as a bridge strategy for a finite period of time, not to extend
beyond June 30, 2013, until other strategies are available that allow for increases to
base pay as appropriate.
SAMPLE INTERIM COMPENSATION PLAN
February 27, 2013
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Criteria
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Division management may identify employees who meet one or more of the following
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criteria:
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 An employee
temporarily assigned additional duties and responsibilities
. an employee’s
above
normal work activities and is staying in the same
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grade.
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An employee’s workload productivity can be measured/validated to be above
standards.
The position as well as the employee are identified as critical, due to skill set,
high visibility and direct impact to strategic operations in achieving the
mission.
An employee is doing technically challenging work beyond standard/average
level expected of the position.
Incentive Payment
Note: The amount of the incentive payment in the example that follows is more
restrictive than required by the compensation guidelines (the lower amount of
10% or $5,000). When creating a plan, an agency may wish to consider the
amount of the incentive that is prudent for the agency’s unique situation.
The incentive payment shall be up to five percent of the employee’s annual salary.
The payment may be a lump sum or distributed equally over the number of pay
periods remaining in FY2013, not to exceed a total of $5,000. For example, an
employee earning an annual salary of $50,000 may be eligible to receive a
conditional retention payment of $2,500 ($50,000 x 5%) which shall be paid in a lump
sum or distributed equally over the pay periods remaining in FY2013.
Hiring Incentives
Note: Agencies should give thorough consideration of ALL compensation
strategies that will be needed during the fiscal year. If there is a known issue in a
work unit, geographic location, or classification, the agency may wish to include a
compensation strategy to address that issue, similar to the example that follows.
However, agencies may submit a request for a hiring incentive on a case-bycase basis to address unanticipated or unique situations.
The purpose of this compensation strategy is to address the historic and ongoing
recruitment difficulties inherent in the filling of critical positions in the <<Section
Name>>. It is expected that by offering a Hiring Incentive and requiring the
employees to remain in the <<Section Name>> for a minimum of two years, the
staffing needs of the agency will be addressed without overinflating the base salary
of employees and disrupting the internal equity of the organization.
Criteria
New hires or current employees that promote or transfer into the XXXX section are
eligible to receive the hiring incentive, provided the employee meets the following
criteria:
 The position is allocated to one of the following classifications:
 AUN12345 – Technical Expert 1
 AUN23456 – Technical Expert 2
 AUN34567 – Technical Supervisor
SAMPLE INTERIM COMPENSATION PLAN
February 27, 2013
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Incentive Payment
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The incentive payment shall be distributed in two installments; $2,000 at the time of
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hire or transfer into the <<Section Name>> in one of the eligible classifications, and
. employee’s one-year anniversary of continued employment in one of
$1,000 at the
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the eligible classifications.
The total incentive payments shall not exceed 10% of the
. salary.
employee’s base
If the employee receiving the hiring incentive leaves or transfers to another section
before completing the first year, the employee shall be required to repay a prorated
amount of $76.92 per biweekly payperiod that remains in the year. For example, if
the employee receives the first payment of $2,000 and subsequently transfers to
another position that is not eligible for the hiring incentive after serving 6 months, the
employee shall be required to repay $999.96 (13 weeks x $76.92).
During the second year, the repayment shall be $38.46 per biweekly payperiod. For
example, if the employee receives the second payment of $1,000 and subsequently
transfers to another position that is not eligible for the hiring incentive after serving 6
months of the second year, the employee shall be required to repay $499.98 (13
weeks x $38.46).
Spot Incentives
The purpose of this compensation strategy is to provide managers and leadership
with an opportunity to recognize and reward employees, teams, or work units for
extraordinary achievements that result in efficiencies, cost savings, or improved
productivity.
Criteria
Division Assistant Directors may nominate employees or teams for an incentive for
situations considered above and beyond normal day-to-day work. Awards should be
presented as close to the event as possible.
Examples may include: completion of a large and difficult project, implementation of a
cost-saving idea, making a major process more efficient. Examples of situations that
would not qualify: being a “good employee,” perfect attendance, achieving a longevity
milestone.
Limits
The bulk of the incentives shall be allocated and distributed to staff-level positions.
Incentive Payment
Note: The maximum amount of a Spot Incentive is $2,000 pursuant to the
compensation guidelines, however, an agency may wish to award lesser
amounts commensurate with the level of efficiency gain, cost savings, or
productivity improvement demonstrated by the employee or team.
Spot incentives may range from $50 to $2,000 per occurrence and no more than
$2,000 per fiscal year per employee, commensurate with the level or degree to which
efficiency, productivity, or savings are realized. The incentive payment shall be
distributed in a lump sum, as expeditiously as possible, after the completion of the
project or circumstance that warrants the recognition.
SAMPLE INTERIM COMPENSATION PLAN
February 27, 2013
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Meritorious. Service Leave
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The purpose of this strategy is to provide managers and leadership with an
opportunity .to recognize and reward employees or teams for meritorious or
. for a particular achievement, success, or moment of extraordinary
exemplary service
individual or .group performance.
Criteria
Note: Meritorious Service Leave may be used in conjunction with an agency’s
recognition program, as the example below illustrates. However, an agency may
also use Meritorious Service Leave in lieu of Conditional Retention payments or
Spot Incentive payments if agency budget restrictions prohibit or reduce the
availability of monetary awards as determined by the agency. In those cases, the
eligibility criteria for Conditional Retention Pay or Spot Incentive shall be used.
Recipients of Meritorious Service Leave will be based on exemplary service
recognized through the agency and division recognition programs at quarterly and
annual awards ceremonies. Each division may identify an employee of the quarter
and a team of the quarter to be recognized, and agency level recognition for a variety
of categories may be identified. Exceptions to the quarterly/annual awards
requirements may be approved on a case-by-case basis by the Agency Director’s
Office.
Limits
Consistent with the guidelines, Meritorious Service Leave will be awarded to no more
than 5% of the employees within the agency.
Leave Amounts and Distribution
Employees or Teams of the Quarter (division awards) and Team of the Year (agency
award) shall receive up to 8 hours of Meritorious Service Leave; Employee and
Supervisor of the Year (agency awards) and other individual awards at the agency
level shall receive up to 16 hours. Other awards of Meritorious Service Leave may be
approved on a case-by-case basis pursuant to approval of the Director’s Office. The
agency shall distribute no more than 25% of all Meritorious Service Leave to
supervisor/management positions; the bulk of the available leave shall be allocated
and distributed to staff-level positions.
Process
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Division Assistant Directors meet with the Agency Budget Director to
determine maximum dollar amount allowed.
Division supervisors and managers nominate individuals to their respective
Division Assistant Director and state the reason for the nomination.
Division Assistant Directors determine the employees that will receive
incentive payments and determine the total financial impact of the incentives
is within the Division’s existing budget.
Human Resources staff review the list of employees identified to receive
incentive payments and validate that eligibility and other criteria have been
met (See Validation section below.)
Division Assistant Directors meet with the Agency Budget Director to validate
that proposed incentive payments are within the Division’s existing budget.
SAMPLE INTERIM COMPENSATION PLAN
February 27, 2013
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Division Assistant Directors submit recommendations based on plan to the
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Agency Director to obtain approvals by March 29, 2013.
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Additional Spot Incentives may be awarded after March 29, 2013 on a case. basis, following a similar process outlined above on an expedited
by-case
time.frame.
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Communication
As soon as the plan is approved, an email will be distributed from the Agency
Director’s Office to all employees describing the compensation strategies identified in
this plan and the agency’s approach to implementing the plan. In addition, each
Assistant Director will be instructed to relay the information throughout their
respective divisions.
Employees that have been identified as recipients of one of these strategies will be
advised of the incentive/leave that will be awarded during a one-on-one meeting with
their supervisor, manager, or Assistant Director of the Division as appropriate. Every
effort will be made to ensure a timely communication to the employee so the
employee’s work effort is quickly noted and recognized.
Validation
<<Agency >> will document that employees receiving the incentives or awards meet
the stated criteria for each award. The agency will also provide justification when
similarly situated employees are not chosen to receive an award. The <<Agency>>
Human Resources Office will be responsible for reviewing awards and certifying that
they meet legal and other State Personnel System requirements.
Reporting
The <<Agency>> will submit a report to ADOA by September 1, 2013 including the
following:
 A brief paragraph describing how the agency used each of the strategies to
support the organization’s goals or strategic direction during FY2013.
 A list of the employees that received a counter offer, an incentive, or
meritorious leave, the specific amount and type of award received.
 Key information for each employee on the list including EIN, employee name,
former and current base salary, job description, etc.
 The total dollar value of incentives provided to each employee as an
annualized amount.
 The organizational impact experienced as a result of the implementation of
these strategies including impact on retention of high performing employees,
employee satisfaction, employee engagement, turnover, etc.
SAMPLE INTERIM COMPENSATION PLAN
February 27, 2013
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